Regions
Industries
- Agriculture
- Mining industry
- Processing industry
- Electric power supply
- Water supply
- Construction
- Wholesale and retail trade
- Transport and warehousing
- Accommodation and food-and-beverage services
- Information and communications
- Finance and insurance
- Real estate
- Professional activities
- Administrative activities
- Public administration
- Education
- Healthcare and social services
- Art and entertainment
- Other services
- Home
- Regions
- Industries
Agriculture Mining industry Processing industry Electric power supply Water supply Construction Wholesale and retail trade Transport and warehousing Accommodation and food-and-beverage services Information and communications Finance and insurance Real estate Professional activities Administrative activities Public administration Education Healthcare and social services Art and entertainment Other services
- Business conditions
- Rankings
- Registry
- State support
Water supply
- Review on water supply
Review on water supply
Review on water supply
1. Description of water supply
1.1. Structure of industry
Total extent of water supply systems in the cities of the republic amounts to 27 000,3 kilometers, among them distribution water supply systems makes 18 173,7 kilometers, at the same time, now there are 2 188 kilometers of "ownerless" networks.
In the territory of the republic there are 599 acts sewer constructions and 366 separate sewer networks. The extent of main collectors makes 4,4 thousand km. The street sewer network makes 5,4 thousand km.
The latest data on statistical reporting are submitted as of the end of 2013. According to them, the enterprises of Kazakhstan supplied 1093,8 million cubic meters of water, including 42% for the population.
The amount of delivered through the network water made 2 billion cubic meters, at the same time more than a quarter of water was delivered through sewage disposal works.
There were 4074,1 CBM of waste waters a day going through sewage disposal works, 591,1 million cubic meters a year or 89,3% of general passage of sewer waste waters. 537 million cubic meters were cleaned by means of full-scale biological treatment (81,1% of general passage of sewer waste waters), 6,2 million cubic meters - by means of post treatment, 454,8 million cubic meters - standard treatment, 63,8 million cubic meters - insufficient treatment.
In the regions of the republic there is low share of cleaned drains in general passage of sewer waste waters seen in Atyrau region (36,6%).
Table 1. Volume of collection, processing and distribution of water in the Republic of Kazakhstan
Years |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Name of products |
Thousand tende |
|||||
Water supply; sewer system, control over waste collection and distribution |
99 069 444 |
127 404 450 |
161 161 512 |
165 173 540 |
165 412 873 |
169 234 105 |
Collection, processing and distribution of water |
37 727 582 |
47 885 455 |
54 549 919 |
62 509 698 |
77 186 115 |
81 612 427 |
Sewer system |
9 927 623 |
11 908 358 |
14 876 051 |
16 936 712 |
21 903 253 |
25 075 408 |
Collection, handling and waste disposal; waste utilization |
45 693 186 |
62 416 160 |
84 964 114 |
79 476 043 |
59 399 690 |
55 469 190 |
Source: «Аk bulak» program for 2011 - 2020
According to Agency for Construction, Housing and Utilities of the Republic of Kazakhstan, the majority of water supply systems are in a bad state, proceeding from 25 years of standard reliable operation in working order there are 36% of water supply networks, about 64% of networks require capital repairs or complete replacement.
Generally water supply systems are put into operation 25 - 40 years ago and have unprotected internal surface (steel and pig-iron pipes). Therefore because of corrosion conduits and water supply systems are exposed to fast depreciation and overgrowing that leads to capacity reduction of water supply systems, growth of number of accidents, losses of water and quality degradation of drinking water. As a result, there is annual increase in number of losses of water in water supply networks. So, in 2009 in comparison with 2004 the number of losses has increased by 10,9%.
As a result of use of allocated budgetary funds for implementation of actions for water supply improvement availability to services of water supply increased by 5,3%, the number of accidents in water supply networks in comparison with 2004 has decreased by 15,8%.
According to «Kazakhstan Su Arnasy» Association the national average level of actual commercial (above-standard) losses in water balance of city entities of water supply make from 15 to 25%. So it is necessary to carry out huge work in water supply sector, namely to liquidate above-standard losses, then to reduce the level of standard losses by 2-3% in order to reach established indicators.
At the same time, it is necessary to understand that even replacement of pipelines of water supply network without the organization of complete instrumental metering of water from sources to consumers will not lead to liquidation of above-standard (commercial) losses, and will not give reliable water balance of operational entities.
Situation in the cities:
There are 186 water disposal entities with general extent of networks 12 455,8 kilometers 8712 kilometers or 70% are out of repair.
There is a wide range of extent of connections to water disposal infrastructure in the cities - from 12% in Ayagoz city, to 98% in Satpayev city. The regional centers and cities of Astana and Almaty 60-94% of population utilize the systems of water disposal. Many industrial cities, such as Ridder, Zyryanovsk, Karatau, Satpayev, Zhezkazgan, Zhanatas have high level of connections to system of water disposal - more than 90%.
At the same time, specific weight of total area of municipal housing stock with water disposal make on average 73,4%.
In 39 cities and settlements there are no treatment facilities, respectively dumping of sewage is performed without cleaning.
From all the amount of waste water undergoing cleaning, 64,0% refer to standard requirements, other 36,0% of crude drains are dumped directly on disposal fields, as in Taraz city, in stores - in Kokshetau, Uralsk, Petropavlovsk, Kostanay cities.
Many operating treatment facilities have already developed operational resources and require repair, others work with overload that results in non-conformity of technology of sewage treatment to project data.
So, in the cities of such regions as Kyzylorda, Mangystau, North Kazakhstan, East Kazakhstan the percent of insufficient purified water makes from 39 to 72%.
It demonstrates that the existing treatment facilities are overloaded.
Stores of purified sewage often reach the volume limit, there is a threat of emergency break of protecting dams, pollution of water objects and flooding of settlements.
Also, high accident rate from 0,2 to 29,5 accidents per 1 kilometer is a consequence of wear of fixed assets of water disposal networks.
The considerable amount of sewage of industrial enterprises goes directly to municipal treatment facilities which are not intended for purification of industrial sewage. In recent times in domestic sewage water there can be found foreign cleansers, it is a long time of their negative influence on environment, it is difficult to clean them out and as they pollute water sources.
Now 50% of discharge of wastes of 43 large industrial enterprises do not conform to qualifying standards, concentration of hazardous substances at disposal of wastes into the systems of water disposal exceed maximum-permissible regulations. In general, depreciation of fixed assets of systems of water disposal in the majority of settlements of the republic makes 40-70%, and in some regions - up to 100%.
Situation with water disposal in rural zone:
According to Statistics Agency in the rural zone there are 163 entities having water disposal networks with general extent of 2075,5 kilometers, at the same time, 1452 kilometers need repair.
Specific weight of total area of rural housing stock with water disposal makes on average 8,8%.
From all the amount of sewage in rural settlements 45,4% are cleaned according to standard requirements 54,6% remain not cleaned.
Not so much attention in villages was paid to construction of water disposal facilities since a priority was water supply. Systems of water disposal were under construction mainly in district centers and larger settlements. And removal of sewage was performed only from administrative buildings, schools, hospitals and multi-storey building.
Now, in rural settlements there prevails export (cesspool) system of waste disposal, sewer (floatable) system makes only 3-5%.
At the same time, sanitary condition of settlements, considering the forthcoming costs on water supply, it is possible to improve without centralized systems of water disposal, by enhancement of local treatment facilities, septic tanks in public and production objects.
1.2. Capacity of domestic market
Despite certain improvements in providing with drinking water, today considerable part of population of the republic is still not provided with water of corresponding quality and to the fullest extent.
According to the Ministry of Health, a current state of systems of water disposal causes insufficient sanitary and epidemiologic wellbeing of population.
So, quality of water from open reservoirs of the 1st category used for centralized water supply of population in general in sanitary and chemical terms in comparison with 2009, changed for the worst, as among 1989 tests of water 151 test or 7,6% did not meet standards and 4,5% did not meet microbiological standards.
In Kyzylorda region there is still high level of impurity of reservoirs - 95,8%, in West Kazakhstan region - 22,4%, in Akmola region - 16,9%, in South Kazakhstan region - 8,5%.
One of reasons of change in quality of water of open reservoirs is accidents on networks of water disposal and dumping of economic and household and industrial drains without cleaning.
Today there exist a problem of delivery of drinking water to the cities of the republic.
According to Agency for Construction, Housing and Utilities of the Republic of Kazakhstan as of January 1, 2011 provision of urban population with centralized water supply makes 82%.
According to the level of population access to systems of centralized water supply the Republic of Kazakhstan comes short in comparison with developed countries in which this indicator makes 90-95%.
In Kazakhstan there is Ak Bulak Program providing prevention of pollution of water sources by crude sewage, involvement of private equity in the sphere of water supply and water disposal, ensuring effective and profitable activities of operational entities and organizations, upgrade of water supply systems and water disposal, maximum use of underground waters for providing the population with drinking water and improvement of quality of design and exploration work in the water management sphere.
2. The number of players at the market
As for the number of players in the market of centralized water supply and water disposal, all such markets are local within certain settlements and number of players as natural monopolists always makes 100%. Possibilities of increase in capacity for each of them are determined by local conditions and corresponding investment projects.
Table 2. Quantity of enterprises, existence of waterworks
Region |
Quantity of enterprises and their branches |
Number (unit) |
Quantity of installed water meters |
|||||
waterworks |
Sepses mains network |
where |
sewrers (cabins, columns, cranes) |
accidents |
where |
|||
Leased or concessed |
In networks |
|||||||
Republic of Kazakhstan |
793 |
2 634 |
1 240 |
54 |
26 239 |
19 177 |
16 979 |
7 379 |
Akmola |
114 |
314 |
199 |
23 |
5 217 |
891 |
854 |
16 |
Aktobe |
53 |
205 |
110 |
- |
1 631 |
896 |
887 |
138 |
Almaty |
121 |
426 |
214 |
5 |
1 770 |
3 403 |
3 155 |
6 |
Atyrau |
17 |
48 |
20 |
- |
78 |
149 |
145 |
- |
West Kazakhstan |
21 |
105 |
55 |
- |
1 436 |
447 |
385 |
16 |
Zhambyl |
28 |
203 |
114 |
7 |
1 730 |
1 655 |
1 427 |
- |
Karaganda |
91 |
179 |
97 |
17 |
2 393 |
1 934 |
1 274 |
1 262 |
Kostanay |
30 |
46 |
22 |
- |
1 365 |
2 316 |
2 110 |
11 |
Kyzylorda |
23 |
214 |
52 |
- |
2 477 |
990 |
573 |
- |
Mangystau |
16 |
64 |
25 |
- |
13 |
375 |
369 |
885 |
South Kazakhstan |
60 |
318 |
122 |
- |
378 |
2 332 |
2 217 |
1 094 |
Pavlodar |
71 |
168 |
50 |
- |
1 870 |
1 034 |
985 |
1 000 |
North Kazakhstan |
36 |
52 |
21 |
- |
2 421 |
463 |
452 |
- |
East Kazakhstan |
70 |
230 |
109 |
- |
2 530 |
1 414 |
1 268 |
450 |
Astana city |
1 |
1 |
- |
- |
286 |
868 |
868 |
1 479 |
Almaty city |
41 |
61 |
30 |
2 |
644 |
10 |
10 |
1 022 |
Source: «Аk bulak» program for 2011 – 2020
3. Barriers and restrictions for development of industry of water supply and recommendation for their elimination
1. Infrastructure
Almost full absence of industrial base which would provide self-sufficient existence and development of industry of water supply – practically all capital and service equipment, spare parts and accessories are delivered from abroad. And industrial base on which Kazakhstan entrepreneurs, especially SME could enter the market of services for water supply sector.
2. Availability of human resources.
Lack of personnel in the sphere of water supply and water disposal:
Now there is a lack of professionals with the specialty "Water resources and water use" in project organizations, offices of public institutions of local and republican levels, educational institutions.
Training is provided in 7 Higher education institutions, but there is no such specialty as operation of municipal water supply systems and water disposal.
Besides, training on specialties in the sphere of water supply and water disposal is conducted in 26 educational institutions of technical and professional education, including 21 professional lyceums and 5 colleges, at the same time there are only 19 graduates of 2008-2009 in "Water resources and water use".
Considering that according to constant scientific and technical progress dictates there is a necessity to have modernized networks of water supply and water disposal with innovative metering devices, there is a lack of certified workers who are able to accompany the newest precise metering water devices.
Also, there is a lack of hydrogeologists. In recent years graduation of hydrogeology engineers ceased, and existing qualifier of higher education does not provide such a specialty.
Nowadays there is tendency of rapid staff turnover in the industry. Often education of employed engineers does not correspond to required qualification. At the same time in the republic there is no system of retraining of personnel and advanced training.
3. Availability of financial resources.
The crisis state of enterprises of water supply and water disposal is connected with unsatisfactory financial position of enterprises in this sector.
Now, from 26 basic entities of water supply and water disposal located in large cities numbering over 50 thousand people 20 entities with municipal pattern of ownership and 6 entities with private equity.
At the same time, in 20 surveyed city municipal water utilities 52,6% of enterprises have obtained negative financial result from core business.
From the total amount of investments of these water utilities 78,8% refer to budgetary funds and 12,8% refers to own funds, 8,4% refers to loans.
In general, activities of enterprises in this sphere is characterized by high cost intensity, absence of economic incentives in cost reduction on production of services of water supply, backwardness of competition that leads to preserving of high degree of depreciation of fixed assets, inefficient work of enterprises, big losses of energy, water and other resources.
So, according to 20 examined city water canal the extent of networks of water supply made 10 458 kilometers, water disposal networks - 6 057 kilometers, at the same time the level of depreciation of networks of water supply made on average 64%, water disposal networks - 56%, access level to services of centralized water supply - 79%, to water disposal services - 69%.
In spite of the fact that about 25,0 billion tenge from the republican budget are annually allocated for reconstruction and upgrade only of city networks of water supply and water disposal, the level of depreciation of city networks and constructions of water sector in average across the Republic of Kazakhstan remains high and makes 60-80%.
Gross requirement of funds on expert judgments only on reconstruction of networks of water supply and water disposal without cost accounting on water and sewer constructions in 86 cities (26 large and 60 small cities) is estimated at 515,6 billion tenge.
It is obvious that such volume of investment cannot be provided only at the expense of budget investments and requires creation of conditions for attraction of such external investments as international financial institutions, private investors with work experience in water sector and other development partners.
Considering available level of depreciation of networks and operating price level on services of water supply and water disposal, there remain budget joint financing in the forthcoming period on actions for recovery and development of city systems.
At the same time, calculation of middle and long-term rate for services of water supply and water disposal shall be made not only taking into account annual decrease in load of government budget, but also attraction of private investments and effective use of internal allowances of enterprises.
Ak bulak program aims to transfer basic enterprises of water supply and water disposal of 26 large cities of the republic on middle term and long-terms of work until the end of 2020. Also, one of sources of replenishment of own current assets of enterprises of water supply and water disposal will remain a possibility of application of differential tariffs depending on amounts of water consumption and on customer groups.
One of effective and key aspects of upgrade of sector of water supply and water disposal is use of advanced tools of pursued tariff policy. They are relative to application of limiting water utilities (investment) rates for middle term and long-term periods.
It is supposed that implementation of a possibility of increase in number of subjects working on limiting (investment) rates will be provided by the way of:
1) carrying out of step-by-step revaluations of property by water utilities (once in three-four years), for the purpose of ensuring necessary amount of financing of investing programs (projects) for work on upgrade at the expense of tariff income and with minimum attraction of borrowed funds;
2) developments of water utilities and approval of investing programs directed to upgrade and reconstruction of networks and constructions of sector of water supply and water disposal with replacement of equipment, implementation of new equipment and technologies;
3) approval of investment rates for regulated services (for the middle-term and long-term periods);
4) development of schedule on transition of subjects of natural monopolies to investment rates, particularly basic subjects for non-admission of one-time growth of rates for regulated services in all regions of the republic.
4. List of potential opportunities for entrepreneurial initiatives
Development of entrepreneurship in housing and communal services system restrains imperfection of scheme of management of dwelling stock. So, the main material city housing-and-municipal object - multi-storey apartment house has neither organizational, nor legal own subjectivity. At the same time there are cooperatives of owners of apartments, including several houses, that is creating quasisubjectivity which does not have real physical essence. As a result suppliers of utilities are forced to interact not with real physical receivers of these services – apartment houses, and with quasisubjects –"multivolume" condominiums, or with residents of each certain apartment, and it prevents from creating equal and effective interaction in any way.
In particular, SME subjects having potential ample opportunities for rendering various additional services to both inhabitants of apartment houses, and entities of electro-warm water-gas supply serving these houses are deprived of such opportunity. As search of customers who receive such services among owners of apartments "in bulk" is inefficient, and agreements with "multivolume" condominiums are not feasible in view of lack of real communication with residents at such condominiums.
One-time registration of all city apartment houses as independent condominiums performed on corresponding changes and additions in the law "On Housing Relations in the Republic of Kazakhstan" could become the specific mechanism of elimination of specified barriers. At the same time it would be necessary to provide in the cities organization of large managing companies representing condominiums in communication with service providers under the contract in the same packet of legislative changes and additions.
Transition to house condominiums and creation of specialized managing companies at the level of residential districts not only normalizes provision of trade and other subjects of service trade in apartment houses, but also opens niches SME activities which are not used nowadays in city residential sector.
5. SWOT-anaysis of the industry
Strengths |
Weaknesses |
• Availability of high potential of services of centralized water supply and housing and communal services with current approximate amount up to 2 trillion tenge a year and annual growth by 3-5%. • Availability of developed infrastructure of housing and communal services in all cities, allowing to provide centralized water supply to the majority of urban population and SME subjects. • Capability of state to regulate services of sector of water supply through tariff and investment policy • Availability of scientific and project, construction, adjustment and service organizations allowing to partially meet the requirements of functioning and development of housing and communal services by domestic regulation. • Availability of regulatory legal base of settling the issues of water supply activities. • Availability of personnel potential represented by highly qualified specialists with sufficient knowledge of water supply field |
• Lack of machine-building productions on production of equipment for centralized water supply systems. • Shortcoming design and almost total absence of domestic engineering organizations. • The strongest moral and physical deterioration of equipment and networks. • Insufficiently effective state investment and tariff policy, actual "self-regulation" and "self-reporting" of service providers of housing and communal services. • Closeness of many niches for SME activities because of inefficient organization of market of housing and communal services. • Hostility of population and SME to "monopolists". |
Capabilities |
Threats |
• Ensuring effective development of housing and communal services with active SME participation and acceptable price level. • Business expansion of SME activities. • Inclusion of Kazakhstan to the list of 50 competitive countries of the world having modern power industry and infrastructure of housing and communal services.
|
• Preserving above-standard depreciation of equipment and networks, growth of deficit of capacity and accident rate, control of growing demand for water supply services. • Escalation of growth of rates, oppression of SME development, discontent and decrease in purchasing power of population
|
We will be glad to help you. If you have any questions — please contact us!
feedback form
regional chambers of business
Astana
Astana
Kazhymukana str., 8a
Т: +7 (7172) 91 90 80
E-mail: astana@palata.kz
|
Almaty
Almaty
Gogol str., 111
Т: +7 (7272) 25 18 30
E-mail: almaty@palata.kz
|
Akmola region
Kokshetau
Abay str., 96
Т: +7 (7162) 72 25 48
E-mail: kokshetau@palata.kz
|
Aktobe region
Aktobe
Sankibay ave., 22 / A, BC "Kazyna"
Т: +7 (7132) 74 46 07
E-mail: aktobe@palata.kz
|
Alma-Ata`s region
Taldykorgan
Abay str., 254 "A"
Т: +7 (7278) 40 14 99, 40 14 98
E-mail: zhetysu@palata.kz
|
Atyrau region
Atyrau
Satpayev str., 78
Т: +7 (7122) 76 36 55, 77 76 06
E-mail: atyrau@palata.kz
|
East Kazakhstan region
Ust-Kamenogorsk
Victory ave., 6
Т: +7 (7232) 25 12 87
E-mail: oskemen@palata.kz
|
Jambyl Region
Taraz
Aitiev str. 5A
Т: +7 (7262) 55 59 00
E-mail: zhambyl@palata.kz
|
West-Kazakhstan region
Uralsk
T. Masina str., 67
Т: +7 (7112) 50 05 84
E-mail: uralsk@palata.kz
|
Karaganda region
Karaganda
Buhar zhyrau ave., 49, 8th floor
Т: +7 (7212) 50 40 55
E-mail: karaganda@palata.kz
|
Kostanay region
Kostanay
Al-Farabi str., 116
Т: +7 (7142) 59 79 60, 39 42 08
E-mail: kostanay@palata.kz
|
Kyzylorda region
Kyzylorda
Aiteke str., 28
Т: +7 (7242) 40 08 91
E-mail: kyzylorda@palata.kz
|
Mangistau region
Aktau
35 microdistrict, building of the Chamber of Entrepreneurs of Defense
Т: +7 (7292) 30 37 68, 30 29 25
E-mail: aktau@palata.kz
|
Pavlodar region
Pavlodar
Lomov str., 21
Т: +7 (7182) 67 62 21, 66 03 11
E-mail: pavlodar@palata.kz
|
North-Kazakhstan region
Petropavlovsk
Abay str., 29
Т: +7 (7152) 50 36 15
E-mail: petropavl@palata.kz
|
South-Kazakhstan region
Shymkent
Kunaev Boulevard, 21, Business Center "Altyn Orda", 3rd floor
Т: +7 (7252) 99 55 00
E-mail: shymkent@palata.kz
|