Kazakh court fines firm 34M tenge for abandoned water project
A Kostanay Region court has penalised Teploenergostroy LLP for failing to fulfil a government contract. The company was ordered to pay 34 million tenge after being deemed an unscrupulous participant in procurement. The case centres on an unfinished water supply project in Chaikovskoye village, where the firm received funds but left work incomplete.
In June 2022, the regional construction department signed an 880.8 million tenge contract with Teploenergostroy. The agreement covered the installation of a water supply network in Chaikovskoye. The company received an advance payment of 107.4 million tenge but failed to deliver 338.1 million tenge worth of work.
The contract was later terminated, yet Teploenergostroy refused to return the advance. Officials from the construction department faced disciplinary action for not reclaiming the funds sooner. However, the department managed to recover 112 million tenge from the insurer, returning the money to the state budget.
A new contractor, Story Company Inc. LLP, was later brought in to complete the project. The final phase of the water supply system will now be handled by Aqueduct Construction GmbH.
The court’s ruling forces Teploenergostroy to pay a 34 million tenge fine. The project in Chaikovskoye will proceed under new contractors, ensuring the water supply network is finished. The recovered funds have been returned to the regional budget.
