Renewal of Transformation projects portfolio represents a continuous process of improvement. The content is updated every year proceeding from the company’s needs.

An online meeting of the Extended Modernization Council (EMC) was held at “Samruk-Energy” JSC. The Directorate for Asset Management of “Energy” Sector, representatives of the Digitization Office of “Samruk-Kazyna” JSC Fund, Borankulova Lyazat, the Managing Director for Strategic Development, as well as Shashkenova Maral, Director of the Strategic Development Department, chief executive officers of subsidiaries and affiliates of the energy holding company, managing directors of the Head Office and supervisors of potential projects and activities participated in the meeting.

Bakitzhan Zhulamanov, the Chairman of the Executive Board of “Samruk-Energy” JSC, opened the meeting of the Modernization Council: “Much attention was directed to addressing production issues, using techniques for collecting ideas and proposals based on “bottom-up” that helped us to identify the growing needs of subsidiaries and affiliates of the group. As a result now we have a short list of initiatives”.

The preparatory work for updating the portfolio over six months comprised communications with all subsidiaries and affiliates, expanding channels for collecting ideas and propositions, studying the feasibility and economic efficiency of more than 60 potential projects and activities.

15 projects that survived an elimination process were submitted to the Modernization Council members. Discussions and voting resulted in consideration of the possibility of allocating a budget and other resources for further implementation of 10 business proposals of the updated Project Portfolio. The remaining five projects are planned to be implemented outside the Digital Transformation Program.

“Several projects contain advanced digital solutions and are aimed at enhancing production efficiency. The pandemic has also influenced the content of the Project Portfolio, which involved services automation, paperless circulation. The projects and activities that we offer for consideration are aimed at achieving strategic goals, increasing the company's value and reducing operating costs,” said Yedil Kopenov, Managing Director for Business Transformation at “Samruk-Energy” JSC during the meeting.

Yedil Kopenov encouraged chief executive officers of “Samruk-Energy” JSC subsidiaries to be actively involved in the implementation of projects, to consider allocating of resources for this and comply with project management methodology: “Please provide the options for the Portfolio management structure both at the HO and at SA level for consideration”

Chief executive officers of companies that are part of the energy holding company were assigned with controlling over the implementation of decisions of the Modernization Council and preparing budgets in accordance with developed financial and economic models. It is planned to obtain approval of the Project Portfolio from “Samruk-Energy” JSC Board of Directors in October.

The goal of Transformation Program project is 30% reduction of occupational injury rate figures.

The third wave of the project for the introduction of the new integrated safety management model of “Samruk-Energy” JSC Transformation Program includes “Almaty Power Plants” JSC (AlES), “Alatau Zharyk Company” JSC (AZhC) and a solar power plant of “Samruk Green Energy” LLP (SGE), which employs more than 6 thousand people. The new approaches aim to enhance safety culture and reduce occupational injury rate by preventing incidents.

The start of “the introduction of the new integrated safety management model” project’s implementation was announced at the kick-off online meeting with the participation of senior executives of the energy holding company and supervisors of “Samruk-Energy” JSC subsidiaries, who are responsible for workplace safety issues.

“I would like to highlight the significance of occupational health and safety issues. This project is under special control of Akhmetzhan Yesimov, the Chairman of the Executive Board of “Samruk-Kazyna” SWF JSC. The sponsor of the project at “Samruk-Energy” JSC is also the chief executive officer Chairman of the Executive Board Bakitzhan Zhulmanov”, - said Yedil Kopenov, the Project Co-sponsor, Managing Director for Business Transformation.  

The project involves the introduction of new standards and practical tools that will enable power plant employees change attitudes towards compliance with safety rules, raise awareness and change outdated attitudes.

Practice has shown that risk prevention works allow avoiding accidents at work. Six accidents were reported across “Samruk-Energy” JSC group of companies over the first half of 2020, while seven sad events occurred at enterprises, one of which with fatal outcome during the same period of 2019. A transparent incidents reporting system has been introduced since 2019, as part of which potentially dangerous incidents that result in an injury are recorded and examined. The responsibility for concealing accidents has also been strengthened, and monetary incentives are provided for reporting potentially dangerous situations. 16 potentially dangerous incidents were reported and investigated during the first half of 2020. 23 incidents were reported over the same period of last year.

According to Tulegen Maxilov, the project manager, head of Health, Safety and Environmental Protection Department, occupational injury rates are planned to be reduced at enterprises by 30% during three years after the project’s implementation.

“It is essential that a high-quality analysis of possible risks is conducted at a production facility. The work should not involve a bureaucratic approach. The introduction of a transparent reporting system, a proactive approach to occupational safety issues are crucial tasks in the project implementation”, - Tulegen Maxilov told.

The first wave of the project for the introduction of the new integrated safety management model was completed in 2019 at the Head Office of “Samruk-Energy” JSC, “Ekibastuz SDPP-1” LLP, “Moynak HPP” JSC, “Shardarinsk HPP” JSC. The second stage of this project will be introduced at “First Wind Power Plant” LLP and “Ekibastuz SDPP-2 Plant” JSC by the end of 2020.

An integrated planning system allows creating effective scenarios for the development of energy holding company entities by reducing the main variable cost items.

 Samruk-Energy JSC has successfully introduced the Integrated Planning System (IPS) tool during the implementation of the Digital Transformation Program. The tool enables to create effective scenarios for the development of power plants by optimizing the main variable cost items.

The project’s scope at the first stage included two subsidiaries of the holding company: “Ekibastuz SDPP-1” LLP and “Moynak HPP” JSC. The Company’s management congratulated the members of the team for the development and implementation of a new tool on the achievement of the first results. Yedil Kopenov, Managing Director for Business Transformation of “Samruk-Energy” JSC, highlighted employees’ contribution to the project’s development - these are working groups of power plants and about 9 structural units of the Head Office.

The IPS project has been implemented at “Samruk-Energy” JSC since 2017 as part of a business transformation program. Serik Tutebayev, the Managing Director for Production and Asset Management, performed the role of sponsor for 3 years.

“I congratulate all colleagues on the successful completion of the first wave of the project. For me personally, the success of IPS introduction was obvious, because this system substiantially eases the scenario planning of the company’s activities, and the created graphical models shows the most profitable ways of further actions with the least error. And all this together allows the Company to significantly reduce costs, while receiving additional benefits”, - noted Serik Tutebayev.

The system was adjusted in the course of the project implementation, part of financial indicators were removed. According to specialists, IPS is an effective working tool for the company. So, the financial benefits for 2019 amounted to 1 365 mln. tenge with the approved annual plan of 977 mn. tenge.  This has been made possible owing to the result of power plant’s units operation in the optimal mode, calculated in the IPS.

At the meeting, Ruslan Kusainov, the manager of “Integrated Planning System”  project, told that the second wave of the project had already been launched at Ekibastuz SDPP-2. The plant plans to reduce about 1 bn.tenge costs until 2024 through the use of a new tool.

Indira Kyilybayeva, Director for management of portfolio of projects of  Digital Transformation Office at “Samruk-Kazyna” JSC, noted that Samruk-Energy showed high financial benefits among all Fund’s portfolio companies where the IPS project was implemented.

The Sponsor, the project team, employees of power plants and the Head Office were awarded certificates of merit for the successful introduction of a new tool.

The second wave of implementation of the project on the introduction of an integrated planning system of “Samruk-Energy” JSC Digital Transformation Program has commenced.

“On the way to digital solutions” - the Information Day of “Samruk-Energy” JSC was held under this slogan in Nur-Sultan city. The participants of the event, including D. Kereybaev, Managing Director for Digital Transformation at “Sovereign Wealth Fund “Samruk-Kazyna” JSC, heads of subsidiaries of power holding company, partners and stakeholders were introduced with projects implemented by the Company as part of the Business Transformation Program for the 2017-2019 .

“Under the supervision of the Fund, we have revised approaches to the implementation of the Transformation Program. Nowadays we focus on addressing issues arising in operations, we use digital solutions to increase production capacity. We have created an updated portfolio of projects. It aims to achieve strategic goals, to increase the value of the company and reduce operating costs. We are summing up and heading for digitization, promoting changes at all our companies, ”B. Zhulamanov, Chairman of the Management Board of “Samruk-Energy” JSC, noted in his welcome speech.

During the Information Day, the project teams of “Samruk-Energy” JSC shared their success and information in the field of the Digital Transformation Program. According to experts, many of the Company's projects have been successfully completed, switched to operational activities and today bring benefits. So, according to the updated information,  during 2018-2019, the project portfolio brought net benefits worth more than 15 bln. tenge.

In particular, in 2019 the Company completed 3 projects: “Implementation of the new model of information technology management”, “Category procurement management”, “Development of sales processes and implementation of trading processes”.

According to the results of the first project, targeted business processes for managing IT activities were introduced at “Samruk-Energy” JSC group of companies, IT Shared Services Center was founded and an IT services management information system, which has automated business processes, was implemented.

The implementation of the project “Category Procurement Management”, which was presented by D. Sagindykov, the Managing Director for Procurement, involves the coordination of procurement, logistics, storage and operation, which increases the efficiency of business processes. The use of new approaches to procurement has accelerated the turnover of working capital, optimized costs, ensure the most complete and high-quality satisfaction of the needs of the company.

When presenting the project - “Development of sales processes and implementation of trading processes”, M. Uldanov, the Managing Director for Development and Sales, proposed a unique product that has no analogues in Kazakhstan.

What is this product? This is a centralized sale of Ekibastuz GRES-1, 2 and Moynak HPP electricity. A uniform mix of electricity from 3 power plants will ensure reliable supplies, and in the future, meet the growing demand of the economy of Kazakhstan, consumers. Equal and transparent access to power plants will be ensured - the project sponsor highlighted.

During the presentation of the updated Portfolio of the Company's projects to the event participants, Y. Kopenov, Managing Director for Business Transformation underscored that these projects contribute to the improvement of operations and the welfare of the population.

At the end of the Information Day, the awarding of project teams was held. Presenting awards to the winners, B. Zhulamanov, the Chairman of the Management Board of “Samruk-Energy” JSC, set the task - to develop projects and activities that will bring economic benefits, and kick-started the collection of new ideas.

For reference:

“Samruk-Energy” JSC- the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc.

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In JSC "Alatau Zharyk kompaniyasy" held a presentation of the project on digital modernization of control centers electrical distribution networks of Almaty.

The event was held with the participation of Managing Director on economy and Finance JSC "NWF "Samruk-Kazyna", Chairman of the Board of Directors of JSC "Samruk-Energo" beybita Karimsakov, Chairman of the Board of JSC "Samruk-Energo" city Bakytzhan Zhulamanov, Managing Director of production and asset management of "Samruk-Energy", Chairman of the Board of Directors of JSC "azhk" Serik Tulebaev, Chairman of the Board of JSC "azhk" Mukhit umbetova and employees of the company.

A modern and innovative project implemented within the framework of the "Digital Kazakhstan" program will allow online management of the entire power grid complex of the city.

During the event, all the advantages and advantages of the project were demonstrated. The participants highly appreciated the contribution of the country's largest electric grid company to the development of the Almaty region.

"Today, JSC "azhk" was the first to implement the project and launch a modernized digital-based city control centers, which gives rise to a large-scale project for the reconstruction of similar points in all regions of the country. The company successfully implements other projects within the framework of the digitalization program, all of which are investments in improving the quality of life of consumers, " bakitzhan Zhulamanov said.

The integrated planning system (ICP) of the digital transformation Program of Samruk-Energo JSC is being implemented in Ekibastuz GRES-2 Station. At the launch meeting, the project Manager for the implementation of ISP, Ruslan Kusainov, presented the project team, announced goals and objectives. According to experts, the expected benefit from the project at Ekibastuz GRES-2 will be about 1 billion tenge.

"The Integrated planning system project dates back to 2017, when the first wave of implementation was launched. This tool allows us to approach the status of an operating holding",-said the project sponsor, Managing Director for production and asset management of JSC "Samruk-Energo" Serik Tyutebayev.

ICP allows you to set goals for the medium term and search for the optimal scenario for the Company's development by balancing production, technological, economic and financial indicators. Today, the system has been successfully implemented at two Samruk-Energy subsidiaries-Ekibastuz GRES-1 LLP and Moynak HPP JSC. This project changed the approach to planning production costs at power plants, which led to a 2% reduction, and net benefits from implementation amounted to about 8 billion tenge.