The state refused to build a wholesale distribution center (ORC) worth up to KZT12.5 billion in Pavlodar region and a number of regions, Minister of Trade and Integration Bakhyt Sultanov said.
“Pavlodar (ORC – KazTAG) – there really was a higher cost. (…) We abandoned this logistics center and today the Ministry of Agriculture, as part of its work to stimulate the creation of vegetable stores, is working with these (local – KazTAG) producers,” Sultanov said on Tuesday.
In total, Kazakhstan abandoned the construction of 15 agro-logistics centers.
“Today, we are excluding a large block from this project. We planned to build 15 agro-logistics centers in different regions, mainly concentrated in the places where the main types of our fruit and vegetable products grow. This is a complex project. All 24 objects (ORC – KazTAG) required state obligations for 14 years, about 980 billion tenge, more than half of which were just for 15 agrologistic centers,” the minister informed.
According to him, using the tools of the Ministry of Agriculture to encourage producers to create their own vegetable stores and maintain them will significantly reduce government spending.
“This requires much less funds against T463 billion for the direct construction and agro-logistics centers and further maintenance. We have taken the path that the Ministry of Agriculture, through investment subsidies, encourages producers to create appropriate vegetable stores and maintain such centers as part of their business. And with less resources, about T100 billion or more, we will be able to provide a much larger amount of storage through this program,” Sultanov explained.
At the same time, coordination on the formation of product pools will be carried out through a single information system. A special platform is being created for this, he added.
