“KEGOC” JSC discusses Address by the President of the Republic of Kazakhstan «Third Modernization of Kazakhstan: global competitiveness»

“KEGOC” JSC discusses Address by the President of the Republic of Kazakhstan «Third Modernization of Kazakhstan: global competitiveness»

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27 February 2017

Bakytzhan Kazhiyev, CEO of KEGOC, the main power network utility of Kazakhstan, at the reporting meeting with the staff of Almatinskiye MES branch, said that development of KEGOC is inextricably linked to the development of Kazakhstan and told about the five basic priorities voiced by the President of the country in his address to the nation.

In particular, Mr Kazhiyev highlighted the importance of the accelerated technological modernization for the economy of the country: «The priorities and objectives of the modernization are important to our company. They shall be in our focus and we shall take them into account when we plan and carry out our operations,» he stressed.

Mr Kazhiyev also discussed the initiative of President of Kazakhstan to re-allocate powers between the branches of the Government. He pointed out that the modernization of the political system shall, first of all, strengthen the statehood, optimize interaction of all three branches of the Government and increase responsibility of each of them.

«The planned modernisation changes have a strong potential to provide  more coordination in the entire system of public administration. This is particularly important in the context of innovation development of economy of our country, » said the CEO of KEGOC.

It is well known that KEGOC since 2000 consistently been working on modernization and innovative development of the National Power Grid of Kazakhstan (Kazakhstan NPG). The company completed the first two stages of a large-scale project for modernization of the NPG. One of the completed projects was commissioned on 6 December 2016 as a part Industrialization Day celebration: the first stage of a large-scale project for construction of 500 kV North-East-South electricity transmission: 500 kV high voltage line Ekibastuz - Shulbinsk HPP (Semey) - Ust -Kamenogorsk. This line was completed 1 year ahead of schedule.

Systematic modernization of the existing and construction of the new projects allows KEGOC to effectively implement the commitments on development and reliable operation of NPG.

In 2016 KEGOC increased the sales of transmission, technical dispatching and balancing of generation and consumption services in the grid.

The company has successfully certified the power facilities in Kazakhstan NPG for 2016-2017 winter period. It managed to reduce the number of technological failures (by 13% in 2016 in electric networks of KEGOC) thus decreasing the total electricity undersupply.

KEGOC's operations is not the only area that benefits from such systematic and consistent effort to improve all aspects of the company's business.

KEGOC respects the principles of social responsibility. The success of the company's social policy is proved by a consistently high social stability rating of 82%, engagement of the management and administrative personnel increased by 5% to 73%. For four years in a row, the company demonstrates the leading performance in this area in Samruk-Kazyna group of national companies.

Since 2016 KEGOC has been successfully implementing comprehensive and large-scale business transformation programme. The company has optimized business processes and organizational structure.

The company also has compiled a portfolio of 23 projects. The portfolio has grouped the performance initiatives. Each project has a project team, and a sponsor from among the company's management.

Now the company is launching the third and decisive stage of the programme to implement the project portfolio.

It shall identify and effectively allocate the hidden reserves, focus resources on business areas with high potential to increase the value of the company, to ensure the growth of labour productivity and introduce advanced management practices.