The FBRK editorial team continues its series of articles dedicated to the analysis of the largest public procurement contracts of 2024 in the regions of Kazakhstan.
This time, the focus is on the East Kazakhstan Region, where the most significant contracts were in the areas of heat supply, residential construction, and sanitary and epidemiological control. Notably, all procurements were carried out without competitive procedures, using single-source suppliers.
CITY HEAT SUPPLY: 4.78 BILLION TENGE
The most expensive area in the East Kazakhstan Region was the heat supply for Oskemen (Ust-Kamenogorsk). JSC "Oskemen Heat Networks" entered into a series of contracts with LLP "Oskemen CHPP" totalling 4.78 billion tenge.
The majority of these funds — 4.7 billion tenge — comprised a contract for the supply of thermal energy. The scale of the deal is impressive: nearly 2 million gigacalories of heat for the city's population and businesses for the entire year of 2024. The contract detailed technical parameters — coolant temperature, system pressure, and monthly consumption planning.
Additionally, the companies signed a contract for flushing and pressure testing of the heating system worth 12.4 million tenge. The work included flushing main heating lines, district networks, and pressure testing — standard preparation for the heating season.
Particular attention is drawn to the third transaction — the purchase of 3,000 tonnes of carbon credits for the sum of 1.68 million tenge. The price per carbon unit was 560 tenge per tonne. This operation demonstrates the functioning of the internal carbon credit market in Kazakhstan between energy sector enterprises.
MUNICIPAL HOUSING: 4.17 BILLION TENGE
The second largest area involved contracts by the Department of Housing Relations of Oskemen for the purchase of apartments for the municipal housing stock, with a total value of 4.17 billion tenge.
The first deal was signed with LLP "VK development group" for the purchase of 150 apartments for 1.29 billion tenge. The second was with LLP "DSK-11" for the acquisition of 119 apartments worth 2.88 billion tenge. Both procurements concerned Class III apartments with an area ranging from 38.7 to 96.4 sq. m at a uniform price of 370,000 tenge per sq. m.
Financing came from three sources: local budget funds (310 million tenge), transfers from the regional budget (1.1 billion tenge), and credit funds (2.76 billion tenge). This scheme allowed the financial burden to be distributed across different levels of the budgetary system.
The short delivery period — just 15 days — indicates the purchase of already completed housing, which allowed for the swift replenishment of the municipal housing stock. In total, according to the documents, the city received 269 apartments with a total area of over 17,000 sq. m.
SANITARY AND EPIDEMIOLOGICAL CONTROL: 1.43 BILLION TENGE
The third largest area involved contracts by the Department of Sanitary and Epidemiological Control of the East Kazakhstan Region with the subordinate RSE "National Centre of Expertise" for the provision of sanitary and epidemiological services, totalling 1.43 billion tenge.
The largest contract was signed in February for the sum of 865.3 million tenge. Initially, spending of 1.16 billion tenge was planned, but in November the amount was reduced by 296 million tenge. The contract provided for a wide range of services: laboratory analyses, instrumental measurements, focal disinfection, deratisation, and disinsectisation in the centres of infectious diseases.
The second contract was concluded in November for 505.7 million tenge (initially planned at 549.7 million). The lion's share of the funds — 470 million tenge — was allocated for laboratory services, including microbiological, chemical, and radiological analyses.
The third contract was signed in December for 44 million tenge. It covered complex molecular-genetic and toxicological tests, instrumental measurements of environmental factors, and radiological studies.
The reduction in the cost of the first two contracts may indicate cost optimisation or a revision of the scope of planned work. Financing was provided through the budget programme "Public Health Protection".
CONCLUSIONS
An analysis of the largest public procurements in the East Kazakhstan Region for 2024 reveals several characteristic features. Firstly, the absolute dominance of "single-source" procurements, which excludes competition and may reduce the efficiency of budget spending. Secondly, a significant share of contracts is concentrated on interaction between natural partners within industry chains.
On the positive side, one can note the targeted nature of expenditure on important social functions: ensuring heat supply, replenishing municipal housing stock, and maintaining sanitary and epidemiological safety. The appearance of carbon credits in the procurement structure is notable, indicating the development of environmental regulation in the region.
At the same time, the absence of competitive procedures in all major transactions points to the potential for increasing efficiency and transparency in the region's public procurement sphere.
Recall that we previously wrote about the largest public procurements of the Almaty Region. You can read in detail about the most expensive contracts of the capital by following this link.
The FBRK editorial team will continue to monitor the situation in the field of public procurement and, in future articles, will present an analysis of other regions of the country.
To be continued...