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Contractor to Cover Additional Costs for Water and Sewage Network Project in Almaty

in Corruption / Kazakhstan - by


The contractor who inflated the cost of construction works for water and sewage distribution networks with a pumping station in Almaty will now cover additional expenses of 900 million tenge.

According to the press service of the Financial Monitoring Agency of the Republic of Kazakhstan, the Energy and Water Supply Department of the southern metropolis is implementing a project worth 9.1 billion tenge.

These funds were included by the designer of LLP "Kazakh SanTechProject" during the formation of project estimates, creating conditions for embezzlement through inflating transportation costs and procurement of construction materials.

As a result of monitoring, it was found that the distance of transported soil is 30 km closer than planned in the project. Additionally, the volume of construction material used was overstated by 1.5 thousand tons (steel sheet piles, hot-rolled I-beams made of ordinary quality carbon steel). At the time of the overpricing discovery, the project's completion rate was at 93%, with 8.4 billion out of 9.1 billion tenge already utilized.

In response to this, at the initiative of the Financial Monitoring Agency, the Almaty city administration increased the scope of additional works to be carried out by the general contractor LLP "Sapa Kurylys 2007" by 900 million tenge (including increasing subscribers by 500, installing additional manholes, etc.).

This effort aims to prevent embezzlement and deter participants in the social infrastructure development process from engaging in possible criminal and legal disputes, as noted by the Financial Monitoring Agency.

On April 11, 2024, the Financial Monitoring Agency reported that in the Ulytau region, a company received a significant sum for unfinished flood prevention works.