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ACHIEVEMENT OF CITY SUSTAINABILITY THROUGH THE DEVELOPMENT OF HOUSING AND COMMUNAL SERVICES

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International Journal of Civil Engineering and Technology (IJCIET)
Volume 10, Issue 04, April 2019, pp. 954-964, Article ID: IJCIET_10_04_101
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=10&IType=04
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
© IAEME Publication
Scopus Indexed
ACHIEVEMENT OF CITY SUSTAINABILITY
THROUGH THE DEVELOPMENT OF HOUSING
AND COMMUNAL SERVICES
U.Zh. Shalbolova
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National University,
Astana - 010000, Kazakhstan
S.M. Egemberdieva
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National University,
Astana - 010000, Kazakhstan
D.N. Silka
Department of Economics and Management in Construction, National Research
Moscow State University of Civil Engineering, Moscow - 129337, Russian Federation
Z.Zh. Kenzhegalieva
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National
University, Astana - 010000, Kazakhstan
E.B. Tlesova
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National
University, Astana - 010000, Kazakhstan
M.O. Ryispekova
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National
University, Astana - 010000, Kazakhstan
A. Khoich
Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National
University, Astana - 010000, Kazakhstan
ABSTRACT
Currently, there is a massive migration of population to cities in all developed and
developing countries. The urbanization of cities is growing, and there are new urban
agglomerations. The national policy of each country is aimed at the sustainable
development of cities through expanding housing resources, the improvement of
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U.Zh. Shalbolova, S.M. Egemberdieva, D.N. Silka, Z.Zh. Kenzhegalieva, E.B. Tlesova, M.O.
Ryispekova and A. Khoich
housing and communal services management, the organization of new forms of
providing public services, the improvementof transport infrastructure, the adoption of
new programs and mechanisms to improve urban management, and respect for the
environment and national traditions. The Republic of Kazakhstan is a relatively young
country with a dynamic developing economy. The appearance of a new capital on the
county’s map and the expansion of urban areas lead to the need for the modernization
of housing and communal services. This article, prepared within the framework of the
ARO scientific project 05134552, analyzes the development of housing services.
Key words: city, municipal service, housing and communal services, efficiency,
investment.
Cite this Article: U.Zh. Shalbolova, S.M. Egemberdieva, D.N. Silka, Z.Zh.
Kenzhegalieva, E.B. Tlesova, M.O. Ryispekova and A. Khoich, Achievement of City
Sustainability through the Development of Housing and Communal Services.
International Journal of Civil Engineering and Technology, 10(04), 2019, pp. 954-964
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1. INTRODUCTION
Since the second half of the twentieth century, population increase, migration and city
urbanization have been accompanied by the expansion of urban areas and the creation of new
cities. More than half of the world's population lives in cities today. Forecast data indicate that
by 2030, every six out of ten people will be urban residents [20].
The growing urban population of the Republic of Kazakhstan is accompanied by the
construction of residential facilities and the creation of conditions for health and comfortable
living of people. However, not every city resident is able to pay for the purchase of commercial
housing. In this regard, the country is currently implementing a number of programs to build
housing for special sections of the population, to modernize the housing stock. Expansion of
the number of residential houses is accompanied by the provision of new types of housing and
communal services, the development of urban infrastructure facilities, the introduction of
advanced digital technologies for managing housing and the implementation of investment
projects for the modernization of housing and communal services.
2. THE HISTORY OF THE PROBLEM
For the sustainable development of the city, the Geneva Charter on Sustainable Housing,
adopted by the United Nations Organization European Commission (UN) in April 2015 [16] is
currently in place. The purpose of this document is the creation of a sustainable city and
settlements. Cities should be safe, easily manageable, be a place for the implementation of
innovative design solutions in housing facilities.
One of the key sources of real problems is urbanization, which leads to a shortage of
housing in cities, the emergence of spontaneous settlements in the absence of infrastructure
and legal rights to real estate. All this leads to social inequalities, inadequate access to
appropriate housing and communal services, ineffective management of such settlements by
state local authorities.
The Geneva Charter on Housing and Sustainable Urban Development notes the problem of
the modern city, such as the environment (air pollution, urban noise, a small number of green
urban areas, the quality of building materials for mass housing construction, inefficient use of
urban land and energy resources [6].
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Another important problem in the development of the city of the twenty-first century is the
financial one. As a result of the global financial crises begun in 2008, instability in the urban
housing market has manifested itself. The decrease in the population's ability to pay
increasingly leads to a restriction of access to housing of the required quality at an affordable
price.
The main goal of the Geneva Charter is to achieve access to decent quality and price
housing for the population of the UN member states on the basis of four principles:
environmental protection, economics, social integration and culture [7].
Respect for environmental protection, first of all, should be realized through the
construction and operation of residential buildings by means of innovative technologies with
the use of environmentally friendly building materials, renewable energy sources, design and
construction of housing units taking into account climatic features, the creation of green spaces
and green belts around cities, the expansion of sports and leisure facilities, the regulation of the
number of settlements and the territory of the city and the transport accessibility development.
The economic part of the Charter considers the guarantee of tenure rights by the population,
the attraction of investors in the modernization of housing and communal services, the
development of public-private partnerships in housing facilities, the creation of conditions for
the population to obtain affordable mortgages for the purchase of housing (various economic
and legal mechanisms to finance the construction of preferential housing), the modernization
of housing stock, the improvement of the urban infrastructure quality (both for poor and
informal residential urban settlements), the proper planning of urban areas and the prevention
of uncontrolled cities expansion.
Social integration presupposes the expansion of the state policy economic instruments of
the affordable housing construction for certain social groups of the population, the design and
construction of housing, taking into account the conduct of a healthy lifestyle, the provision of
living conditions for various categories of the population (disabled, elderly, large families,
etc.), the provision of assistance at risk cases arising from natural disasters, as well as
monitoring of the development of housing and national housing policy.
The principle of culture observance is an adherence of historical and cultural heritage
preservation in cities, creation of cultural and social public buildings and areas (entertainment
and sports facilities, recreation and leisure centers, institutions for the creative development of
children and youth, etc.). In the design and construction of residential buildings it is a
compliance with national and cultural characteristics of future tenants, the choice of the most
advantaged areas for housing construction (taking into account the natural and climatic
conditions, reluctance of near preservation of cemeteries, taking into account any historically
unfavorable legends with a chosen place for building an apartment, etc.).
A sustainable city is a place where people live for a long time, where the quality of the
population’s life constantly improves, and there is a place for harmony between the
preservation of health and the ecological system. A sustainable city is a territory for improving
interpersonal communications and inter-structural links between local executive bodies,
business, the social sector and non-profit organizations in order to achieve innovative
approaches to city management and municipal services excellences.
In today's world, sustainable cities coexist on a par with traditional, historically developed
cities. As a rule, the development strategy of a sustainable city takes into account the
management and development of the entire urban area (prosperous and poor areas of the city),
attracts active citizens to make various decisions within the modernization of housing and
communal services and construction of new facilities, conducts a long-term forecast of the city
expansion, uses world innovative technologies and design solutions for urban development.
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The main indicators of the city’s sustainability include the following: gross regional
product per capita, number of housing stock, volume of housing commissioning, quantum
index of basic funds, amount of fixed investment, volume of paid services per capita,
population growth rate, incidence rate, crime tare, total amount of pollution, indicators of
processing of solid domestic waste, state of urban infrastructure and housing communal
services [21].
3. RESULTS
Over the past 20 years, cities in the Republic of Kazakhstan have been developed in the areas
of "sustainable urban development". The assessment is carried out on the basis of the National
Standard of the ST RK ISO 37120-2015 "Sustainable Community Development. Indicators of
urban services and quality of life" [10], which forms common guidelines for the executive in
the development of urban policy. In the standard, there are all indicators for measuring the
results of achievements under the 17 Sustainable Development Goals. The standard is
voluntary, but the main indicators are mandatory. The objects of application are administrativeterritorial communities (cities, district and other centers), regardless of their scale, population
size and other parameters [21].
The Republic of Kazakhstan ranks ninth in the world in terms of occupied territory, while
the population density is rather low (less than 7 people per square kilometer). In the list of
countries by population, Kazakhstan takes the63rd position in the world. As of April 1, 2018,
the country's population is 18.2 million people [4]. In 1991, at the time of acquiring the status
of a separate state, the number of people in Kazakhstan was 16.4 million people. However, as
a result of external out-migration, the population decreased from 1991 to 2002 by 10%.
However, since 2002, due to natural population growth and the arrival of immigrants from
other countries (China, Mongolia, Turkey, Uzbekistan, Russia, etc.) to the country for
permanent residence in 2018, the population has grown by about 20%. Such growth is also
facilitated by the country's dynamic social and economic development, political stability, the
implementation of state programs for social support, the reduction of the poverty rate from
46.7% in 2001 to 2.7% in 2015. The dynamics of population growth in Kazakhstan is given in
Figure 1.
180,00,000
160,00,000
140,00,000
120,00,000
100,00,000
80,00,000
60,00,000
40,00,000
20,00,000
0
Population of the Republic of Kazakhstan, people
Figure 1. Dynamics of population growth in the Republic of Kazakhstan.
Source: Compiled by the authors according to [5]
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The increase in the number of people living in Kazakhstan during the last 5 years is
accompanied by an increase in the urban population. As in the rest of the world, rural residents
migrate to cities (Figure 2).
120,00,000
100,00,000
80,00,000
60,00,000
40,00,000
20,00,000
0
Urban population, people
Rural population, people
Figure 2. Growth dynamics of rural and urban population in the Republic of Kazakhstan
Source: Compiled by the authors according to [5]
Economic development of Kazakhstan's major cities and superior level of accommodation
attract people from rural areas and small towns in the more favorable cities in terms of the
employment such as Almaty, Astana, Shymkent. Today, these three cities have the status of
republican value with a population of more than one million people. The dynamic growth of
these cities and this city of Aktobe led to the formation of the four metropolitan areas with
living-thirds of the population, which was not observed previously before 2015. At present, the
level of urbanization in Kazakhstan has exceeded 55%. According to the Development Strategy
of Kazakhstan, in 2050 the urban population of Kazakhstan should be 70% [15].
In Kazakhstan, 87 populated territories have urban status, three cities have the status of
republican significance, and 38 cities are regional centers [9].
Undoubtedly, the rapidly growing urban population of the Republic of Kazakhstan requires
expanding the housing stock, and creating favorable conditions for living.
In Kazakhstan, there have been createdopportunities to provide the population with
affordable housing. Thus, the financial crisis of 2008 affected the activities of construction
companies in the country that are engaged in the construction of residential buildings. Many
companies went bankrupt and failed to fulfill their obligations to the people who have invested
their own money in the construction of future housing, when many people took mortgages.
Speaking for the interests of citizens, the Government of Kazakhstan sent enormous financial
resources for the commissioning of unfinished construction (450 houses and complexes). As a
result, about 63 million desperate co-investors were able to enter new housing.
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Ryispekova and A. Khoich
Over the last four years (from 2005 to 2018) Kazakhstan has adopted national programs
aimed at the construction of housing for the individual and the disadvantaged population: the
"Affordable Housing-2020" program, the Regional Development Program until 2020, the
"Development of Single-Industry Towns in 2012-2020” program. The state program
"NurlyJol" started in 2015. Its continuation was the program of housing construction
"NurlyJer", started for implementation in 2017.
The main direction of the program "NurlyJer" is to provide housing credit, which is below
the market by 15-20% and this is for potential credit buyers with an average income [19].
The second direction is the construction of rental housing for 20 years, which in turn is
issued to socially vulnerable segments of the population; state and budget employees and
service members. Rent payments are savings for the purchase of anapartment in the future.
According to the Ministry of Investment and Development of the Republic, in 2017 more
than 100,000 apartments in Kazakhstanhave been commissioned (more than 11 million square
meters). In 2018 it is planned to build another 100 thousand apartments. According to statistics
in 2005, the area of housing stock in Kazakhstan has grown by more than 40% (Figure 3).
12,000
10,000
8,000
6,000
4,000
2,000
0
Total area of commissioned residential buildings, thousand sq.m.
Figure 3. Dynamics of housing construction in the Republic of Kazakhstan
Source: Compiled by the authors according to [2]
The analysis shows that the main share of the construction of a new housing in Kazakhstan
is related to two large cities: Astana and Almaty (from 2005 to 2017, the share of construction
was 35-38%) (Table 1).
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Table 1 Housing commissioning in Kazakhstan
2013
2014
6,84
1,1/16%
0,83/12%
2015
2016
2017
January-April 2018
The Republic of Kazakhstan, million sq. m.
7,52
8,94
10,5
11,2
3,56
Astana, million sq m /%
1,21 /16%
1,76/20%
2,28 /22%
2,4 /21%
0,89//25%
Almaty, million sq m /%
1,33/18%
1,37/15%
1,86/17%
1,9/17%
0,35/10%
Source: Calculated by the authors according to [12].
In order to improve the social policy of providing housing for the population, in March
2018 a new program "7-20-25" was adopted. The initiative called "New Housing Opportunities
for Each Family" offers interest payments on housing loans at a rate of 7% per annum, an initial
payment of the buyer is 20%, and housing loan for a period of 25 years. At present, there is a
work to revise the parameters of the issuance of housing state loans underway in Kazakhstan
[1]. Further granting of preferential housing to the population will be realized according to the
newly adopted state program.
Thus, the creation of urban agglomerations, urbanization, the expansion of the housing
stock and the growth of the urban population are the components of the sustainability of cities
in the Republic of Kazakhstan.
Housing construction, residential stock and housing and communal services are interrelated
and interdependent sectors of the national economy that have a special impact on the social and
economic well-being of any resident. Housing and communal services is the basis of residential
sector.
In Kazakhstan, the Program for the Modernization of Housing and Communal Services for
2011-2020 [17] is in effect, where housing measures are included to ensure an adequate
maintenance of residential facilities.
Over the years, the Programhelped repair more than 2.3 thousand residential buildings. In
addition, according to this program, repair work is carried out at the expense of repayable funds
of the owners of previously renovated houses (at present, about 340 houses in the country have
been repaired) [8]. However, the implementation of the program for the modernization of
housing and communal services is currently undergoing criticism, as it is working poorly.
Residents are not ready to finance capital repairs of houses due to their own financial resources.
Housing in Kazakhstan has a fairly high level of the provision of public services and
comfort for decent living of people (Table 2).
Table 2 Comfort level provision of urban housing in Kazakhstan,%
№
Comfort indicator
Total
Multi-family housing
Private housing
1
Water supply
98,5
99,8
99,6
2
Sewerage
66,6
95,1
67,1
3
Central heating
40,7
89,7
8,5
4
Individual heating equipment
59,6
10,7
92,0
5
Shower or bath
42,4
87,5
15,4
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6
Central hot water supply
36,4
80,8
7,59
7
Gas-fired plant or central gas
12,0
5,5
29,4
87,8
75,6
95,7
supply
8
Electric floor heating
Source: Compiled according to the source [14].
Water supply is 99%, central heating is supplied to 90% of multiple houses. The presence
of natural gas in the country allowed to achieve a gasification level of more than 95%, which
allows the provision of hot water and heating to most individual houses. The most problematic
issue is the provision of central sewerage of individual housing.
When paying for housing and communal services, in the country's average value the main
share is taken up by the payment for electricity and heating (Table 3)
Table 3 Structure of costs for housing and communal services
Hot
water
supply
34%
22%
15%
Source: The sources data [13].
Heating
Power
supply
Cold
water
supply
7%
Gas
supply
Sewerage
Housing
maintenance
Total
4%
8%
11%
100%
An analytical review of the current housing and communal sector state in Kazakhstan made
it possible to identify a number of problems, presented below in Table 4:
Table 4 The main problems of the development of housing and communal services
in Kazakhstan
№
Sub-industry
1
Power supply
2
Water supply
3
Road network
cleaning
4
Outdoor lighting
5
Utilities calculation
Problems
Down time of equipment, generation of surplus, heat and electric energy, low
level of control over the process of managing the generation of electrical and
thermal energy, low level of load forecasting, insufficient automation of the
heat transfer process, low level of diagnostics of heat networks, low level of
thermal insulation.
Loss of water during distribution, rapid deterioration of water supply
networks, weak organization of urgent repairs.
The cleaning process planning is carried out manually based on the
experience of past years, lack of quality control of the work of specialized
equipment.
Irrational use of electricity, the deterioration of the electricity lighting
network, visual search for street lighting malfunctions.
Growth of non-payments, unscrupulous calculations, inefficient billing
systems, lack of integration between public utility systems and organizations
that serve multi-apartment houses.
Source: Compiled by authors
The Republic of Kazakhstan supports the idea of sustainable development of cities, taking
an active part in the implementation of reasonable actions to protect the environment. At the
national level, the transition of Kazakhstan to sustainable development of the city is carried out
through the implementation of conceptual government documents, which outline a number of
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measures in the direction of achieving sustainable development of the country with regard to
the development of housing and communal services:
- The need to provide 100% of the population with access to drinking water in order to
increase the average life expectancy of the population;
-Development of environmentally safe technologies in the reconstruction of the housing
and communal services and the construction of new housing in achieving the task of
diversification, improving the efficiency of resource use and overcoming the energy balance;
-Construction of apartment buildings with the purpose of reducing heat energy, aimed at
energy saving and increasing energy efficiency in buildings;
-Stable development of social and economic potential of each city of the country through
the formation of rational territorial organization, stimulation of the population and capital in
the centers of economic growth;
-Recovery of the environment, reduction of emissions and discharges into the environment
and of renewable energy sources share increase in the energy balance, in achieving sustainable
ecological development of the urban environment [19;17;3;18].
In order to modernize housing and communal services and develop the infrastructure of the
country's housing complex, the Republic of Kazakhstan is working to introduce new
mechanisms for attracting investment, introducing innovative technologies and advanced
management methods for housing and communal services.
To attract private capital, it is possible to use various forms of public-private partnership
(PPP), which should become the main mechanism for the development of infrastructure,
including social infrastructure. For the modernization of housing and communal services,
options for transfer to trust management or a concession are considered with possible further
privatization. Today, the mechanism for financing the modernization of housing and communal
services in Kazakhstan goes in two directions: public and private. The legal aspects of PPP
model implementation in the sectors of the national economy have been resolved: the Laws of
the Republic of Kazakhstan "On Concessions" and "On Public-Private Partnership” have been
adopted. The conditions created in Kazakhstan will favorably affect the implementation of
public-private partnership mechanisms and increase the social efficiency of the implemented
projects in the housing and communal services sector.
Ensuring the introduction of energy-saving technologies, the use of resource-saving
materials are the main aspects of the use of innovative technologies in the development of
housing in Kazakhstan. As a result of the international exhibition "EXPO-2017" held in Astana
in 2017, Kazakhstan is implementing new projects on the use of energy-efficient resources in
the construction of residential buildings and housing and communal services. Moreover, since
2007, the United Nations Development Program in Kazakhstan has been implementing projects
to improve energy efficiency and energy supply in the residential sector: "Removing Barriers
to Improving the Energy Efficiency of Public Heat Supply", "Integrated Energy Efficient
Solutions in Small Cities", "Energy Efficient Design and Construction of Residential
Buildings" and "Promotion of Energy-Efficient Lighting" [21].
One of the main directions of sustainable development of cities in Kazakhstan is the use of
innovative solutions for the modernization of housing and communal services through digital
technologies. Thus, through the implementation of the projects "Digitalization of Housing and
Communal Services", "Astana Smart City" - "Smart Astana", the city administration of Astana
sets the main task to use the new standards of construction security and housing and communal
relations. The concept of these projects combines the following characteristics: "smart"
economy, "smart" management, "smart" life, "smart" mobility, "smart" people, and "smart"
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environment. These projects are related to the introduction of innovative technologies for the
management of water supply systems, heat supply, energy, street lighting, and urban transport.
The financial part of the projects is to develop flexible tariff systems for housing and communal
services, where the main aspect is to encourage savings with rational consumption of public
utilities. In addition, it is envisaged to involve the urban population in activation of making
decisions on energy consumption, heating and individual collection of household waste.
Today, four projects for sustainable development of the city in Astana are being
implemented. "Smart" healthcare implements the automation of policlinics in terms of
management, coordination of units, recording patients, digitizing medical information, creating
a unified laboratory base. The aim of the "smart" school project is to improve the safety and
well-being of schoolchildren, control parents for the training of their children, and the
introduction of innovative technologies in school management. The project "Smart" street
lighting is aimed at saving electricity, which provides for automatic reduction of luminous
intensity, transmission of data on the state of lanterns to the central control and monitoring unit.
According to statistical data, the reduction in energy consumption is 12,721.3 kW per year.
Realization of the "smart" payments project is directed on carrying out of electronic municipal
payments through system of private accounts. One can also pay fines and taxes, or pay for
school meals, medical services, buy tickets for urban transport, etc. [11]. It is also worth noting
that there are "smart" houses – residential complexes constructed by South Korean companies
that have been being built in Astana for ten years, where apartments are classified as shelter
from a higher level of comfort, both for living and for receiving public services.
The transition to "smart" cities creates conditions for the interaction of public-private
partnerships.
4. CONCLUSION
The Republic of Kazakhstan is expanding the housing stock, creating conditions for affordable
housing for the main part of the population, both the country as a whole and the cities.
Modernization of the country’s housing and communal services is carried out using new world
technologies and experience in managing housing and urban economy. The sustainability of
the development of the country's cities is also based on the expansion of urban areas and the
creation of four urban agglomerations.
The transfer of the Kazakhstan capital to the north of the country, the appearance of the
new city of Astana on the world map allowed the entire world community to present the new
capital as a city of the future. New unusual buildings make tourists associate it with a futuristic
city. The project "Astana Smart City" is implemented in a pilot mode, but in the future, such
projects will cover all the large cities of Kazakhstan. Currently, the main regional centers and
cities of national importance are at the stage of dynamic development, many residential projects
are being built, urban areas are expanding, innovative projects are being introduced in the
modernization and management of housing and communal services.
This article is prepared within the framework of the ARO 05134552 "Economic Evaluation
of the Project Decisions on the Modernization of Housing and Utilities Services of the
Kyzylorda Region" scientific project implementation.
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