The FBRC editorial team begins a series of articles dedicated to an analysis of the largest public procurement contracts of 2024 in the regions of Kazakhstan.
The first region to come under our scrutiny is Kostanay Region, where, in our opinion, the most expensive contracts were in the areas of public utilities, education, sport and real estate. Let us take a closer look at each of them.
HEAT SUPPLY IN RUDNY: 4.02 BILLION TENGE
In June, Rudny Heat Networks LLP entered into an agreement with Sokolov-Sarbai Mining and Processing Production Association JSC for heat supply services for the city of Rudny for 2024. And although the contract sum is substantial, only 1.25 billion tenge has actually been paid.
Notably, at the same time, the companies signed a contract for the production of chemically purified water worth 812.5 million tenge, of which only 200 million tenge was actually spent.
It should be noted that as part of the large-scale modernisation of Rudny's heating networks in 2024, 20 km of networks were replaced and a significant reduction in emergency incidents of 41% was achieved, with no accidents recorded on the main networks.
In 2025, the city plans to replace another 18.6 km of networks, focusing on district networks in the private sector, which will reduce overall wear and tear to 53%. It is reported that further reconstruction will continue in 2026-2028 according to the design and estimate documentation being developed.
FOOTBALL AMBITIONS: 1.6 BILLION TENGE
In 2024, the Department of Physical Culture and Sports of Kostanay Region invested significant funds in the development of football. In March, a contract was concluded with the Public Foundation "Football Club Tobol" for the amount of 1.2 billion tenge for the preparation and participation of the team in republican competitions.
It is worth noting that in April, a similar contract was signed for 447 million tenge for the organisation of a children's football centre. Both contracts stipulated a 30% advance payment.
ADMINISTRATIVE BUILDING: 1.55 BILLION TENGE
In November, the Education Department of Kostanay District purchased an administrative building with a land plot in the city of Tobyl from RInna LLP. The deal raises questions due to the choice of a single-source procurement method and the absence of contract performance security.
Notably, the property previously functioned as a café, but in 2023 it was reconstructed for administrative purposes. According to an independent assessment, the market value of the building was 1.655 billion tenge, which is 105 million tenge higher than the purchase price.
MEDICAL EDUCATION: 1.46 BILLION TENGE
In 2024, the Regional Health Department concluded two contracts with Kostanay Higher Medical College for training specialists: one for the amount of 1.16 billion tenge in January, and the second for 303 million tenge in October. The contracts provide for the training of students in five medical specialities. However, the lack of a detailed justification of costs and clear criteria for assessing the quality of education does not inspire confidence.
GAS SUPPLY: 165 MILLION TENGE
The municipal enterprise "Zatobolsk Heat Energy Company" entered into an agreement with QAZAQGAZ AIMAQ JSC for the supply of natural gas for the production of thermal energy with a volume of almost 3 million cubic metres. Meanwhile, the documentation for this procurement raises serious questions.
In particular, the main contract is dated 2022, although it concerns supplies for 2024. Furthermore, three additional agreements were concluded, related to correcting technical errors, changing tariffs and adjusting supply volumes. At the same time, despite the stated amount of 165 million tenge, the public procurement portal contains no data on actual payments under the contract.
CONCLUSIONS
The analysis of the largest public procurement contracts in Kostanay Region shows a predominance of single-source procurement and significant discrepancies between contracted and actually paid amounts.
The editorial team will continue to monitor the situation in the field of public procurement and will present an analysis of other regions of the country in subsequent articles.
To be continued…