In 2021 the Group of Companies Samruk-Kazyna Supported 11 000 Local Suppliers for Procurement Orders

In 2021 the Group of Companies Samruk-Kazyna Supported 11 000 Local Suppliers for Procurement Orders

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08 September 2021

In 2021, Saruk-Kazyna awarded 11 000-procurement contracts with the local entrepreneurs. Fund supported domestic business in the development of the procurement reform. 

The support to the Kazakh Business has been provided through the Import Substitution Program, stimulated job creation, which attributable to the establishment of long-term offtake agreements. There is not analogs in Kazakhstan. 

Offtake agreements provided guarantee that the requested commodities for Group of Companies Samruk-Kazyna will be ordered for no less than 5 years.

Business has invested approximately KZT 220 billion to build new capacities for production. It has contributed to the creation of around 2 000 jobs. 

Import substitution pool for goods of 627 positions totaling of KZT 121 billion has been confirmed.  There are 139 offtake agreements in force with a total value of KZT 76, 4 billion, 55 of them were signed in the current year at a cost of approximately KZT 50 billion. 

In June 2021, Samruk-Kazyna signed the largest offtake deal with “PROMMASH KZ” LLP to supply special equipment exceeding KZT 42 billion for “shifting of rails without lining”. 

Due to this order, the company has saved 305 jobs and has created employment opportunities for 120 persons. Tax revenue from the project is expected value of some KZT 5.5 billion and to ramp up its investment by KZT 2, 4 billion. 

PROMMASH KZ is the only such plant on the territory of Kazakhstan, which manufactures switches, repair kits and railway frogs.

Company has valid certificate of origin ST-KZ, conformity certificate, and industrial certificate. Plant is also on the register of Fund manufactures. 

Procurement category management allows consolidating needs of the company on designated commodities. It’s helping to establish a pool of suppliers, to increase the growth rate of domestic production, to save and create new jobs.

Under the "Trucks and cargo vehicles" procurement strategy, for example, strategic agreements were concluded with 10 manufacturers and 93 special vehicles amounting to KZT 4,2 billion were purchased.