Bishimbayev: We need PPP mechanisms to solve water supply problems in cities

ASTANA. KAZINFORM According to Minister of National Economy Kuandyk Bishimbayev, investment demand of the country's water supply sector comprises 1.97trln tenge, which is a "great load on the national budget". Water supply companies' normative losses stand at a range of 17-23% now.

“Due to increase in tariffs, I think it will be reasonable to reduce financing water supply companies in urban settlements.   We observe also high level of water resources losses, low tariff rates and their collectability  caused by inefficient management of the  utilities enterprises. For this reason, we need to implement PPP partnership mechanisms  to solve the water supply problems in cities,” added the Minister.

As per the Ministry’s data, under the Akbulak programme, the population’s access to centralized water supply services from 2011 to 2015 increased by 5% (from 82% to 87%) in cities and  by 9% (from 42.5% to 51.5%) in rural areas.  The access of the population to centralized water disposal system rose by 8% (from 73% to 82%) in cities and by 2.2% (from 8.8% to 11%) in rural areas.

For this purpose, the government allocated 396.8bln tenge. 1,493  water supply and water disposal projects were implemented  in cities and rural settlements.

Under the Nurly Zhol and Regions’ Development programmes, the government envisaged 62.1bln tenge for implementation of 75 projects in 2016 and 53bln tenge for implementation of 157 projects in 2017.