At a meeting of the working group held at the site of the antitrust authority, the problems of developing competition in the market for the construction of roads and building materials (bitumen, cement and gravel) were examined.

In the examined product markets, experts identified the following problems: additional requirements for potential participants that create risks for an opaque tender; non-transparent formation of prices on the exchange, limited access to resources, a high level of influence of intermediaries on selling prices.

According to the results of the operator’s procurement, a narrow circle of general contractors is annually recognized as winners in Kazakhstan. Moreover, in fact, up to 70% of the volume of work is carried out by subcontracting organizations, including with less cost.

To solve the existing problems, the experts of the working group made proposals for the development of competition: to eliminate duplication of requirements stipulated by licensing when organizing procurements, reduce the amount of work (services) transferred by a potential supplier to subcontracting to 30%, reduce the basis for procurement from one source, improve the mechanism exchange trading, ensuring transparency in pricing, to work out the issue of ensuring access to subsoil plots of common mineral resources, include bitumen in the list of exchange trading.

Source : https://www.gov.kz/memleket/entities/economy/press/news/details/33721?lang=kk