Development strategy and its implementation
IMPLEMENTATION
OF GOVERNMENT PROGRAMS

By Resolution of the Government of the Republic of Kazakhstan No. 963 dated 30 November 2022 On Approval of the Pilot National Project in the field of Education ‘Comfortable School’, the Company has been designated since 2023 as the Directorate for the targeted construction of facilities of secondary education organizations and manages the project in accordance with the Rules for the provision of engineering services in the field architectural, urban planning and construction activities, while the Company is vested with the function of a customer.

The Government has developed a unified approach to the design of comfortable schools, identified a single operator, and developed a single technical specification, which will make it possible to build equally high-quality schools in all regions of the country, both in urban and rural areas.
One of the innovations introduced by the Company was the initiation of the national project “Comfortable School” through the conclusion of an EPC contract. An EPC contract is a foreign construction management methodology according to which all processes will be carried out simultaneously by one contractor or consortium (Engineering – design, Procurement – supply of equipment, and Construction – building process), which will save the time.

In order to ensure transparency, the Company made procurement through a special procedure using a web portal. Potential suppliers submit bids electronically through the portal to eliminate corruption risks and ensure transparency and openness of procedures.

In addition, a tender commission of experts and observers was formed including 44 people from among the deputies of the Mazhilis of the Parliament of the Republic of Kazakhstan, members of public councils of the Ministry of Education of the Republic of Kazakhstan, Samruk-Kazyna JSC, NCE Atameken and representatives of central and local executive authorities.

An electronic cross-platform previously agreed upon with all supervisory and controlling authorities, including the Supreme Audit Chamber of the Republic of Kazakhstan, has been developed and put into operation, where all the necessary documents for each facility are collected, which allows the supervisory authorities monitoring the situation in real time.

In order to effectively monitor the construction of facilities, a 24/7 video monitoring service for facilities has been integrated into the Bitrix project management information system. This service allows monitoring online the progress of construction projects. Out of 208 facilities, 205 facilities were connected to the video monitoring system. 4 surveillance cameras were installed in the video monitoring system. All parties involved are given access to 4 surveillance cameras.

To ensure transparency, the information system fully covers tasks from the initial stage of construction to completion. In addition to daily reports, the contractors post photographs, drone reports and progress updates on a daily basis. All construction operations can be fully monitored online using cameras installed on sites. Also, from the start of construction, reports on designer’s and technical supervision of contractors’ work will be available on a daily, weekly and monthly basis.

Particular attention was paid to discussing with the general public the architectural solutions for building facades, external and internal design, interiors, as well as plans for space-planning solutions for comfortable schools. The design and estimate documentation takes into account the wishes of the population to increase the equipped places for changing spare clothes and storing personal belongings, comfortable stay for children outside the classroom, etc.

CONSTRUCTION OF COMFORTABLE SCHOOLS
OUT OF 208 FACILITIES, FOR 2023–2024:
1 and more storeys are built
22 facilities
11%
Foundation is poured
22 facilities
20%
Basis for foundation is ready
67 facilities
32%
Ditch for foundation is digged out
60 facilities
29%
Preparatory work has begun
17 facilities
8%
98
schools
by 1 September 2024
110
schools
by 15 December 2024

During the reporting period, out of 208 comfortable schools planned at the first stage (2023–2024), procurement contracts for complex work on the design and construction of turnkey facilities were signed for 207 schools.

In 2023, contractors prepared land plots for construction (fencing, installing video monitoring cameras, mobilizing construction equipment, site investigations, driving test piles, etc.). At the same time, the development of design and estimate documentation for schools was in process. As soon as affirmative state examination of the design and estimate documentation is received, construction and installation operations begin.

For the provision of engineering services (technical supervision), 191 contracts were signed for technical supervision services for the construction of schools.

INVESTING ACTIVITIES

In order to increase the housing affordability for the population and support construction companies, the Company is investing in the construction of new facilities. The Company will sell independently a part of the specified new real estate using the direct sale method. These projects are financed by obtaining borrowed funds on market terms and using own funds. As of 31 December 2023, the Company entered into agreements for investment in construction (hereinafter – the AIC) for 19 facilities1 in the cities of Astana, Almaty, Atyrau, Aktobe, Konayev, Kokshetau, Aksu (Pavlodar region), Taraz and UstKamenogorsk, a commercial pool and residential real estate of the Company according to concluded AICs as of 31 December 2023 makes up 309.9 thousand m² and 996 parking spaces, the total cost of projects is 125.9 billion tenge, including the volume of the Company’s investments in the amount of 76.9 billion tenge.

As of 31 December 2023 within the framework of these projects, the Company invested 57.4 billion tenge, including the transfer of land plots (as part of the project “Akkent Residential Complex in Almaty City” and “Residential Complex on Millennium Alley, 1st stage in Astana City”) priced at 2.2 billion tenge; 10 facilities were put into operation, the total share of the Company in the commissioned real estate was 240.8 thousand m²; 203.9 thousand m² were sold. The projects “Residential Complex on Millennium Alley in Astana City, 1st stage”, “Bavaria Residential Complex in Aktobe City”, “EXPO Residential Complex in Astana City”, “Gul Ana Residential Complex in Konayev Town” were completed in full; funds invested in these projects, were refunded by the Company, and the developers paid an interest.

For the project “French Quarter Residential Complex in Atyrau City”, the developer returned the Company’s investment with residential premises the ownership to which was transferred to the Company in 2022 and a part was sold: out of 153 apartments, 149 were sold.

As part of participation in the program for the construction of factories aimed at import substitution of construction materials, in the year under review, the Company implemented the project “Plant for the production of roofing and facing materials in Astana City”.

As of 31 December 2023, 3.8 billion tenge was invested within the framework of this project. On 26 December 2023, the facility was put into operation according to the certificate of facility acceptance for operation; the total area of the plant is 6,262.6 m², including the Company’s share of 5,010.1 m².

On 15 December 2023, the head of the state K.K. Tokayev visited the plant; during his familiarization with the production, the MetalFormer LLP products were assessed positively, and “the importance of supporting such enterprises and the need to switch from imported construction materials to domestic products” was noted. In order to support the plant, the Company provides comprehensive assistance in using the MetalFormer LLP products in the Company’s projects and loading the plant’s production capacity.

FACILITIES COMPLETELY CONSTRUCTED IN 2023:
ASTANA CITY / CONSTRUCTION OF THE PLANTУ
FOR THE PRODUCTION OF ROOFING AND FACING MATERIALS
Developer: MetalFormer LLP
Productive capacity per month: 7.2 thousand tons of aluminium profiles, 1.0 million m² of laminated and painted fibre cement panels, 800 thousand m² of roofing and facade materials
Project beginning: 15.09.2022
Commissioned under certificate of acceptance for operation dated: 26.12.2023
Total area: 6,262.6 (m²)
Total project amount: 4,985,883 thousand tenge
Company’s share: 80%
ALMATY CITY / RENOVATION OF GUL-ANA RESIDENTIAL COMPLEX (3RD STAGE)
Developer: KazSMU LLP
Quantity of apartments: 184
Project beginning: 10.08.2022
Commissioned under certificate of acceptance for operation dated:
07.08.2023
Total area: 9,756 (m²)
Total project amount: 4,365,449 thousand tenge
Company’s share: 37.95%
ASTANA CITY / CONSTRUCTION OF APARTMENT RESIDENTIAL
COMPLEX ON MILLENNIUM ALLEY (2ND STAGE)
Developer: Argon Stroy LLP
Quantity of apartments: 1040
Project beginning: 09.04.2021
Commissioned under certificate of acceptance for operation dated:
20.11.2023
Total area: 53,700 (m²)
Total project amount: 20,034,091 thousand tenge
Company’s share: 60%
ALMATY CITY / CONSTRUCTION OF RESIDENTIAL QUARTER
IN AKKENT MICRODISTRICT
Developer: AYT HOUSING COMPLEX LLP
Quantity of apartments: 1,089
Project beginning: 16.04.2021
Commissioned under certificate of acceptance for operation dated:
30.06.2023
Total area: 51,997 (m²)
Total project amount: 10,325,700 thousand tenge
Company’s share: 80%
AKTOBE CITY / CONSTRUCTION OF BAVARIA RESIDENTIAL
COMPLEX (2ND STAGE)
Developer: Bavaria Construction LLP
Quantity of apartments: 231
Project beginning: 22.10.2021
Commissioned under certificate of acceptance for operation dated:
2 building area dated 27.12.2022, 4 building area
dated 24.05.2023, 5 building area
dated 29.09.2023
Total area: 16,894 (m²)
Total project amount: 3,331,195 thousand tenge
Company’s share: 80%
KONAYEV TOWN / CONSTRUCTION OF SUN CITY
RESIDENTIAL COMPLEX
Developer: KazSMU LLP
Quantity of apartments: 360
Project beginning: 10.10.2022
Commissioned under certificate of acceptance for operation dated:
09.10.2023
Total area: 23,061 (m²)
Total project amount: 6,612,082 thousand tenge
Company’s share: 80%
ATYRAU CITY / RECONSTRUCTION OF THE HOTEL BUILDING
FOR MULTI-PURPOSE RESIDENTIAL COMPLEX AT: BUILDING
NO.498, SULTAN BEIBARYS AVENUE, ATYRAU CITY
Developer:
DIRECT CONSTRUCTION SERVICE LLP
Quantity of apartments: 40
Project beginning: 23.05.2023
Commissioned under certificate of acceptance for operation dated:
30.11.2023
Total area: 3,600 (m²)
Total project amount: 2,338,626 thousand tenge
Company’s share: 34.5%
CURRENT INVESTMENT PROJECTS
UST-KAMENOGORSK CITY / CONSTRUCTION
OF APARTMENT RESIDENTIAL COMPLEX LOCATED
IN UST-KAMENOGORSK CITY
Developer: UK Building LTD LLP
Quantity of apartments: 279
Project beginning: 15.12.2022
Commissioning: 15.03.2024
Construction period: 15 months
Total area: 18,621 (m²)
Total project amount: 5,321,548 thousand tenge
Company’s share: 80%
ASTANA CITY / CONSTRUCTION OF SAPSAN APARTMENT
RESIDENTIAL COMPLEX LOCATED IN ASTANA CITY
Developer:
Stroy-Invest-Group KZ LLP
Quantity of apartments: 462
Project beginning: 13.03.2023
Commissioning: 20.04.2024
Construction period: 13 months
Total area: 26,387 (m²)
Total project amount: 8,905,207 thousand tenge
Company’s share: 40%
TARAZ CITY / CONSTRUCTION OF BAITEREK APARTMENT
RESIDENTIAL COMPLEX LOCATED IN TARAZ CITY
Developer:
BAITEREK GROUP – 2022 LLP
Quantity of apartments: 240
Project beginning: 19.04.2023
Commissioning: 28.01.2024
Construction period: 9 months
Total area: 15,962 (m²)
Total project amount: 4,414,142 thousand tenge
Company’s share: 71.6%
AKSU CITY / CONSTRUCTION OF LOW-RISE RESIDENTIAL
COMPLEX LOCATED IN AKSU CITY
Developer: Karzhau Development LLP
Quantity of apartments: 54
Project beginning: 23.05.2023
Commissioning: 13.06.2024
Construction period: 12 months
Total area: 3,548 (m²)
Total project amount: 780,516 thousand tenge
Company’s share: 80%
KOKSHETAU CITY / CONSTRUCTION OF APARTMENT
RESIDENTIAL COMPLEX LOCATED IN KOKSHETAU CITY
Developer: Ademi Holding LLP
Quantity of apartments: 99
Project beginning: 11.07.2023
Commissioning: 11.07.2024
Construction period: 12 months
Total area: 8,512 (m²)
Total project amount: 2,645,460 thousand tenge
Company’s share: 60%
Development strategy and its implementation
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