Kazakhstan is not able to get planned volume of income from privatization

/IRBIS, May 15, 00/ - REUTERS informs, with the reference to the minister of finance Majit Esenbaev, that Kazakhstan is not able to get planned volume of income from privatization because of a slowdown in privatization of "blue chips". He said to the deputies of the parliament at the meeting that in first quarter of the year privatization income has equaled KZT6.8 bln, which is three times as less as it was in similar period of last year. The minister said there were problems with the reception of income from privatization due to the slowdown in privatization of state property in the year 2000. It is said the amount is by 11% less than planned annual amount. However, the minister said the state budget had no problems with financing. Initially, it was planned to sell ten objects, including 4 that were excluded from the "blue chips" program by the decision of the government. Those were Sokolovsko-Sarbaiskoe gorno-proizvodstvennoe ob'edinenie (SSGPO), Aliuminii Kazakhstana, Kazchrome and Kazakhmys. This year only 16.7% block of Halyk savings bank of Kazakhstan was sold, is said in the message. The minister believes only two other "blue chips" can be sold among remaining five of them - Mangistaumunaigas and Kazakhtelecom. The preparation for the sale of Mangistaumunaigas is being done by the managers with whom the government has signed corresponding agreement. It is also said that the talks are held with European bank for reconstruction and development on the sales of part of state block in Kazakhtelecom, and if the agreement is reached the necessary amount will be received by the budget this year already. The minister said the sale of remaining three "blue chips" companies would be held not earlier than the year 2001. These are Aktobemunaigas, Ust'- Kamenogorsk titanium-manganese combine (UKTMK) and Kazzinc. The decision on using the advisors for the sales of state blocks in these three objects is said to be made by the advisor selection tender commission. Preparation terms is said to go beyond this year, said the minister. Mr. Esenbaev said the government had faced several problems when conducting the advisor selection tender. Thus, the winner and the second participant of the tender for the advisors of Kazzinc have denied to sign the agreement on provision of a complex of services on sales of state blocks of shares. The government does not exclude the possibility of having new participants of the tender for the advisors of Aktobemunaigas and Ust'-Kamenogorsk titanium-manganese combine. It is said the country has not been able to implement the privatization program of its elite enterprises and the companies - "blue chips" for three years, which was mainly due to decline in trust of the investors in emerging markets after the world financial crisis of the year 1998. Kazakhstan is said to receive about $400 mln last year.