06-5

Procurements arrangement

Procurement in Transtelecom JSC is governed by the Rules of Procurement of Goods, Works and Services of Samruk-Kazyna JSC and organizations, where fifty or more percent of voting shares (participatory interests) are directly or indirectly owned by Samruk-Kazyna JSC on the right of ownership or trust management approved by the Resolution No.126 of the Board of Directors of Samruk-Kazyna JSC dated January 28, 2013 (the "Rules").

Procurement management

The need for material resources is determined on the basis of the production program and (or) the investment program and/or budget and/or the development plan and/or the business plan and the procurement plan (s) of the Company made up at the request of the Company's structural divisions, based on service and production needs.

As part of the market research of prices for goods, work and services, inquiries are sent to the Procurement Department of KTZ NC JSC, which allows to achieve an objective market value determination for goods, works and services purchased by Transtelecom JSC as well as identification and standardization of codes of the SND of GWS, according to the format of Samruk-Kazyna JSC.

The selection of the supplier is determined by the results of the procurement procedures regulated by the Rules.

According to the Rules, supplier selection procurement procedure by tender or price proposals are conducted in the Electronic Procurement Information System on http://tender.sk.kz.

Supplier selection procedures for procurement using a single-source method are carried out by conducting market research of optimally acceptable prices and taking into account fair competition in order to purchase qualitative goods, works and services.

Total volume of purchases
Total volume of purchases
  • 75
    performed works
  • 15
    rendered services
  • 10
    purchased goods

The total volume of Company's purchases over 2017 amounted to 44,369,297.73 thousand tenge, including purchases of goods for the amount of 4,424,142 thousand tenge, works for the amount of 33,492,341 thousand tenge and services for the amount of 6,452,815 thousand tenge.

Local content in purchases of Transtelecom JSC for 2017

17%
83%
82%
Goods
Works
Services

The share of local content in the total volume of purchases was 77%, including

  • purchased goods – 17%,
  • performed works – 83%,
  • rendered services – 82%.

Monitoring of the share of local content in the procurement of goods, works and services is carried out on the portal of the authorized body of the Fund on procurement issues - "Monitoring Map of Kazakhstan content in procurement" on http://www.kmks.kz website.

The program of measures aimed at the local content increase in Transtelecom JSC's purchases includes the following areas:

  • Conclusion of long-term contracts.
  • Provision of all potential suppliers with equal opportunities to participate in the procurement process, subject to the support of organizations of disabled persons (physical persons with disabilities who carry out entrepreneurial activities) which are in the Register of organizations of disabled persons (physical persons with disabilities who carry out entrepreneurial activities) of the Holding.
  • Information provision to entrepreneurs according to the needs for goods, works, services.

In general, Transtelecom JSC performs all the necessary measures to optimize the procurement activities, the development of local producers and the achievement of strategic goals.