November 7, 2018
Security Council meeting chaired by the Head of State

The meeting discussed the formation of existing tariffs for electricity and thermal energy, as well as the activities of state bodies that control pricing in the energy services market.

Opening the meeting, the Head of State informed those present about the results of the verification of the tariffs for electricity and heat from the General Prosecutor’s Office.

“Before we sounded this year’s Message, we conducted a special survey among citizens to determine the most pressing problems. This case study showed that in the first place is the high cost of utilities. Therefore, the General Prosecutor’s Office was instructed to carry out an inspection in this area. The results of the audit made it necessary to consider this issue at a meeting of the Security Council, the President of Kazakhstan said.

Nursultan Nazarbayev emphasized that in the current Message a special order was given to restore order in the tariffs for housing and communal services and natural monopolies.

The Head of State dwelled on the implementation of the “Tariff in return for Investments” program and spoke about violations identified as a result of checking the quality of its implementation.

– For a specific purpose, we at one time adopted the program “Tariff in return for investment.” Since 2009, it has allowed the monopolists to earn billions of money to modernize production for 7 years. It was to improve the entire fund of generating capacity, we went for a twofold increase in tariffs. Instead of upgrading capacities with this money, large energy companies were illegally enriched at the expense of consumers, including premiums, bonuses to their employees, and unreasonably overestimated production costs at the cost of services, the President of Kazakhstan said.

Nursultan Nazarbayev noted that the damage to the population from such actions of energy transmission companies amounted to 14 billion tenge, illegal income of energy supplying companies – 15 billion tenge. The audit also revealed the inefficient use of subsidies allocated by local executive bodies to reduce tariffs.

– This state of affairs can arise for two reasons: either it is a conscious opposition to the President’s Address, or it is mismanagement, which occurs as a result of irresponsibility and misunderstanding of its role. Both reasons I consider a crime. Just one example from the city of Kapchagai. For the period of the program, the tariff has doubled. Power wear increased from 53% to 77%. All violations became possible due to inaction and lack of control by the ministries of the national economy, energy and local executive bodies, the Head of State stressed.

In addition, the President of Kazakhstan instructed to check the authorized state bodies for price collusion and corruption offenses in this area.

– Costs for housing and communal services, including payment for heat, electricity occupy a significant share in the total expenditures of the population. The higher the tariffs, the greater the burden on the family budget. The growth of tariffs should not be carried out without a real economic justification, said Nursultan Nazarbayev.

Further, in accordance with the agenda, the report of the Prosecutor General K. Kozhamzharov was heard. During the meeting, heads of central and local executive bodies also spoke.

Taking into account the reports voiced at the meeting, Nursultan Nazarbayev gave a number of specific instructions.

In particular, the Head of State pointed out the weak work of the anti-monopoly committee of the Ministry of National Economy and instructed the Prime Minister to bring order to his work and assess the effectiveness of work at the level of all regional anti-monopoly agencies.

– The Department of Energy should be responsible for every tiyn paid by consumers. This money should work on the development of our economy. Taking each time the decision to raise tariffs, first of all, it is necessary to take into account the solvency of the population. A public discussion of all planned tariff changes is either not held at all or is formal. It is necessary to change the existing mechanism, providing for the wide involvement of the public, non-governmental organizations and the media, – the President of Kazakhstan instructed.

The head of state pointed out the lack of an effective “feedback” system for the Committee for the Regulation of Natural Monopolies, Protection of Competition and Consumer Rights with Citizens.

Nursultan Nazarbayev also noted the need for measures by the Ministry of Energy to reduce the cost of electricity for the population.

The President of Kazakhstan demanded from the Government and the General Prosecutor’s Office of the appropriate execution of all legal acts in relation to persons involved in the unreasonable overstatement of tariffs.

– Tariffs for electricity and heat – this is only part of the problem. There are other monopoly companies. This concerns the provision of water and gas to the population.

November 6, 2018
Participation in the official opening ceremony of the International Technology Park of IT start-ups “Astana Hub”

Before the start of the event, the Head of State got acquainted with the projects of Kazakhstani start-up companies, examined research laboratories, and also was reported on the upcoming activities of the IT university and the progress in implementing “Digital Kazakhstan” state program .
Speaking with a welcoming speech at the opening ceremony, the President of Kazakhstan thanked those Who were present for participating in the official launch of “Astana Hub” International Technopark of IT Startups .

– I am glad to welcome you in our young, hospitable capital – Astana. I would like to thank the Prime Minister of Estonia, Mr. Jüri Ratas, and all foreign guests for participating in the official opening. This event is relevant for Kazakhstan in the conditions of the fourth industrial revolution, – said Nursultan Nazarbayev.

The head of state stressed the special significance of the digitalization process in the further progress of the country and society.

– The Internet , artificial intelligence, 3D printing technology and blockchain actively penetrate all spheres of human life, and this is a key trend of modern times. Digitalization has become one of the important factors for the development and competitiveness of states. The leading countries of the world, as well as their associations, such as the G-20 and the European Union, have already adopted their strategic documents on digitalization, the President of Kazakhstan said.

Nursultan Nazarbayev separately focused on the process of implementing the digitalization program in our country and the results achieved in this direction.

– Kazakhstan was one of the first in the CIS to begin the introduction of electronic public services. Last year we launched the Third Modernization of Kazakhstan. There are already concrete achievements, the Head of State said.

Nursultan Nazarbayev stressed that the International Technopark of IT start-ups “Astana Hub” should become the core of the innovation ecosystem created in Kazakhstan.

– Technopark participants will be able to enjoy a simplified visa and labor regime, they will also be presented with tax and other benefits. A mentoring institute was created at its base, within which experts accompany start-up teams, the President of Kazakhstan said.

In addition, the Head of State focused on the need to provide assistance to talented young people involved in the development of IT technologies.

– We need to create a new generation of IT talents. Our main task is to help smart and capable guys. We fully support private initiatives, programming schools, Olympics, robotics and cyber sport Olympiad. The curriculum has been updated at universities, ”Nursultan Nazarbayev said.

The President of Kazakhstan also informed those present about the creation in the country of the Business Angels Club (QazAngels), the Association of Venture Capitalists and the Co-investment Fund.

In conclusion, the Head of State urged everyone to take an active part in the development of innovations and digital technologies, pointing out the opportunities available for this.

November 6, 2018
Meeting with Prime Minister of the Republic of Estonia Jüri Ratas

During the meeting, the sides discussed prospects for strengthening cooperation between the two states in the field of digitalization and innovative technologies, and also exchanged views on the development of trade and economic relations.
The head of state thanked the Prime Minister of the Republic of Estonia for his personal participation in the opening ceremony of Astana Hub International Technology Park of IT start-ups .

Nursultan Nazarbayev emphasized the rich experience of Estonia in the field of digital technologies.

In addition, the President of Kazakhstan pointed to the need to increase trade relations between the two countries and focused on the priority areas for the development of economic cooperation. Thus, the Head of State spoke about the infrastructure programs being implemented in the country, the facilities being built within their framework and the results of projects to increase the transit transport potential.

Nursultan Nazarbayev also noted the importance of establishing cooperation in the field of manufacturing and agricultural industry, pharmaceuticals and other sectors of the economy.

In turn, the Prime Minister of the Republic of Estonia thanked the President of Kazakhstan for the hospitality provided and shared his impressions of his first visit to Astana.

– Yesterday we had constructive talks with Prime Minister Bakytzhan Sagintayev. This is my first visit to Kazakhstan. According to the infrastructural facilities of Astana, you can see how your country is developing, – said Yu.Ratas.

The Prime Minister of the Republic of Estonia expressed interest in implementing joint projects in the field of digitalization and the transport and logistics field, as well as in expanding investment cooperation.