The FBRK editorial team continues its series of articles analysing the largest government procurements of 2024 in the regions of Kazakhstan.
This time, our focus is on the city of Almaty, where the most significant funds were allocated to heat supply, public transport renewal, emergency services and social housing. Let us take a closer look at the top five most expensive contracts in the southern capital.
COMPREHENSIVE CITY HEAT SUPPLY: 51.38 BILLION TENGE
Last year, Almaty Heat Networks LLP entered into a series of strategically important contracts to ensure the city's heat supply.
The main agreement was signed with Almaty Electric Stations JSC for the production and supply of thermal energy worth 31.08 billion tenge. It contained clear technical requirements, including a minimum coolant temperature during the non-heating period of 65°C for CHP-1 and 66°C for CHP-2.
Simultaneously, a contract was concluded with Almatyteplokommunnergo LLP for the supply of thermal energy and coolant worth 18.22 billion tenge. This contract supplemented the main agreement and ensured sufficient capacity for heating the expanding metropolis throughout the calendar year, especially during the heating season.
Additionally, an agreement was signed between Almaty Heat Networks LLP and Almaty Electric Stations JSC for the provision of water supply services via main pipelines worth 2.079 billion tenge, ensuring the uninterrupted operation of the city's heat supply system.
All contracts stipulated liability for breach of terms, including penalties for late payments, which contributed to improving the quality of services provided.
FLEET RENEWAL: 49.3 BILLION TENGE
The Almaty City Mobility Department entered into a series of agreements with Hyundai Trans Auto LLP for a large-scale renewal of the city's vehicle fleet.
As a result of an open tender, 450 units of environmentally friendly transport were purchased: 321 gas-powered Golden Dragon XML6125CN buses (28.89 billion tenge), 29 extended 18-metre gas-powered Golden Dragon XML6185J13C buses (4.408 billion tenge), and 100 Golden Dragon XML6125CE electric buses (16 billion tenge).
All rolling stock was manufactured at the supplier's plant in Almaty and meets modern environmental standards. The buses are equipped with comprehensive safety systems, including video surveillance, passenger flow monitoring, driver condition monitoring, and automatic announcements. Designated spaces with mechanical ramps are provided for passengers with reduced mobility.
According to the contract terms, delivery of all vehicles was completed by the end of November 2024. The warranty period for gas-powered buses is 2 years or 200,000 km mileage, and for electric buses — 3 years or 300,000 km, meaning the vehicles are currently under warranty service.
TRANSPORT FLEET EXPANSION: 44.98 BILLION TENGE
Concurrently with the first contract, the same city mobility department concluded a series of agreements with QazTehna LLP for the acquisition of additional vehicles.
Under these contracts, the city received 250 gas-powered buses of varying capacities (136 Yutong ZK6126HG buses, 43 Yutong ZK6890HGQ buses, and 71 Yutong ZK6116HG buses), 112 Yutong ZK6128BEVG trolleybuses, and 100 Yutong ZK6745DX school buses.
It is important to note that all vehicles are manufactured at the Kazakhstani plant 'QazTehna' in the city of Saran, Karaganda Region, contributing to the development of domestic production. All vehicles are equipped with modern safety systems, including video surveillance and driver condition monitoring.
The warranty period for gas-powered buses is set at 18 months or 150,000 km mileage, and for trolleybuses — 24 months or 150,000 km. Particular attention is paid to environmental friendliness: the buses meet the EURO-5 standard, and the trolleybuses ensure completely emission-free operation with an autonomous range of up to 60 km.
All contracts stipulated an advance payment of 30% of the amount after the supplier provided contract performance security.
EMERGENCY ASSISTANCE: 3.79 BILLION TENGE
In 2024, the Office of the Akim of Almaty concluded a contract with the City Rescue Service for providing emergency assistance during emergencies. The contract amount was 3.79 billion tenge, which is 640 million less than initially planned.
According to the terms of reference, rescuers were required to ensure round-the-clock response to accidents, fires, floods, and other natural disasters throughout the year. The contractor's responsibilities included operating the '109' unified contact centre, the crisis management centre, search and rescue aviation, and specialised teams.
The procurement was conducted via a 'single-source' method, as the Rescue Service was a state enterprise, and the antimonopoly authority confirmed the absence of private companies capable of providing such services.
Notably, in 2024, the organisation was transferred from the Office of the Akim to the jurisdiction of the Almaty Department of Seismic Safety and Mobilisation Preparedness, reflecting systemic changes in the structure of the city's rescue services.
SOCIAL HOUSING: UNANSWERED QUESTIONS
Fifth place on the list of largest procurements is occupied by a contract between the Almaty City Construction Department and Almaty Akimat Capital Construction Enterprise LLP for the purchase of 350 apartments for socially vulnerable segments of the population. However, this transaction raises serious questions.
Initially, the contract amount was 10.75 billion tenge, but was subsequently reduced to 1.84 billion tenge — almost 6 times less. Meanwhile, the technical requirements for the housing remained unchanged, and the official reasons for such a sharp price reduction are not stated in the documents, casting doubt on the transparency of the operation.
Even more peculiar is the situation with five similar contracts concluded in 2024 between the same parties for a total of 50.67 billion tenge to purchase 1,650 apartments. All these contracts were suddenly terminated in June by mutual agreement of the parties without any public explanation of the reasons.
CONCLUSIONS
Analysis of the largest government procurements in Almaty in 2024 demonstrates several trends. Firstly, the priority of ensuring the city's basic infrastructure, primarily heat supply and public transport, is evident. Secondly, there is a noticeable emphasis on environmental friendliness in the renewal of the city's fleet, with a focus on accessibility for all categories of citizens.
However, the lack of transparency and strange manipulations in the sphere of social housing are cause for concern, where contracts are either signed for huge sums, then sharply reduced in price without explanation, or even cancelled altogether. Such actions with budget funds require thorough public oversight and scrutiny by competent authorities.
Recall that we previously wrote about the largest government procurements of Shymkent. You can read more about the most expensive contracts of the capital via this link.
The FBRK editorial team will continue to monitor the situation in the sphere of government procurement and, in future articles, will present an analysis of other regions of the country.
To be continued...