1.5 Occupational safety & health & environmental protection

Occupational safety & health and environmental protection measures at the production facilities of KazTransGas, JSC group of companies (hereinafter referred to as «Group») are organized in compliance with the applicable laws of the Republic of Kazakhstan, institutional regulatory acts and normative and technical regulations.

The following occupational safety & health measures have been taken at the Group's production facilities:

- The multi-level control of occupational safety & health (permanent committees on occupational safety & health)

- The organization of permanent examination boards, staff safety trainings and safety knowledge assessments

- The production facilities are certified for compliance with working conditions

- The provision of necessary sanitary and hygienic working conditions, supply of special food for employees working in hazardous conditions and the supply of detergents and disinfectants

- The provision of working attire, safety footwear and personal protection equipment to employees

- Employer's liability insurance

- Occasional and pre-shift medical examinations for staff

- Briefings, training courses and exercises.

The Group has implemented the following environmental protection measures:

- The development of standards for the maximum acceptable level of environmental impact

- Operational environmental monitoring was carried out at all facilities

- All major construction and repair works passed state environmental examination

- The construction and commissioning of the waste-water treatment plants at the Atyrau and Southern branches of Intergas Central Asia, JSC

- Open sumps at the gas pipelines in the Pre-Caspian region were eliminated

- Mandatory environmental insurance

- The recovery and neutralization of manufacturing and consumption waste.

Ensuring occupational safety & health is one of the key priorities during the operations of KazTransGas, JSC group of companies.

The company is committed to the reliable and accident-free operation of the manufacturing facilities, the creation of safe working conditions for employees and minimizing the negative environmental impact of activities.

1.6 Social politic

Personnel-Oriented Social Programmes

KazTransGas views its social mission in facilitating the social progress and the growth of the public prosperity, stable development and welfare in the regions of its operations and improvement of the living standards of its employees.

Attention to the needs of every employee and priority of social decisions belong to the foundations of the corporate policies of KazTransGas.

The Company gradually increases the social spending , with the major share of funding directed for cash allowances granted to the company's employees for medical treatment undertaken during the vacation period, aid to women on maternity leave, material assistance at retirement, special allowances to employees and Company pensioners for jubilees, gifts to personnel for the New Year and international Women's Day on the 8 th of March.

Special attention is paid to improvement of housing conditions of the personnel. Recently, residential blocks of apartments for the employees of ICA 's Aktobe Branch, Uralsk and Atyrau Branches were constructed on a “turn key” basis. It's envisaged that this year new apartments will be granted to the workers living in the town of Taraz .

Educational Support, Training of Qualified Personnel

Personnel Education and Re-training Programme

Meeting the operational challenges and performing its business, the Company relies on the qualified staff, and thus, its human resources policy is oriented towards setting up of the adequate working environment encouraging the personnel to realize their creative potential and enhance their qualification.

KTG has established the ongoing system of continuous professional education, including training and re-training of workers, medium-tier managers and top managers.

The personnel management policy is founded on the individual motivation of each employee towards professional development, career growth and achievement of results set forth in front of its structural subdivision and the company, in general. Personnel motivation is based on the principles of voluntary participation, equal opportunities and encouraging the aspiration for individual development.

KazTransGas has provided the personnel with the adequate conditions promoting enhanced expertise, knowledge, professional degree and career level. The company has launched several programmes aimed at personnel's development and training, covering the major areas of the HR's development, i.e. “Education and Re-training”; “Young Specialists” , and “Personnel Reserve” .

1. “Education and Re-training” is an ongoing programme to ensure the personnel development.

Undoubtedly, the personnel's professional level is an important factor for efficient and safe operations, growth of productivity, improvement of the quality of works and services, thus, KTG faces the objective to set up a targeted and staged educational process, training and re-training of the workers and specialized skills personnel.

2. “ Young Specialist”:

The “Young Specialist” Programme is implemented on the base of leading educational institutions in Russia and Kazakhstan with the purpose to ensure a systematic training of the outsourcing reserve of the Company.

Currently, 93 students study in the Universities at the account of KazTransGas.

3. “Personnel Reserve” Programme

It's assumed that every employee of the company has the right to apply for a higher position in the organization. Starting from introduction in 2002, the relevant Programme “Personnel Reserve” has provided KTG employees with an opportunity to compete for available vacancies. The information on new positions is regularly published in corporate news letter and is available through on-line information service.

One of the key questions of HR management in terms of the work with executive personnel at the company's branches is to identify and train the selected candidates to be promoted for top executive positions, i.e. the group of candidates, who along with strong professional level have to demonstrate individual initiative, determination, readiness to further education, etc.

The selection and evaluation process is contracted to independent consultants with respectful track record in the field of personnel assessment and selection in other industrial companies.

The candidates shortlisted into the personnel reserve programme have to attend special trainings and seminars, to further develop basic managerial skills , knowledge of the foundations of executive and financial management.

4. Personnel Evaluation

Personnel's evaluation is performed on annual basis. Evaluation is addressed to the employees of KazTransGas and central headoffice of Intergas Central Asia, and covers the level of specialists up to managers on the level of heads of departments.

The key objectives of the evaluation process as viewed by the company's management are:

• the need to “bring home” to each employee the system of requirements and expectations of the company towards each person;

• to provide incentives to improve operational behaviour by setting an unbiased “feedback” expressed in a positive format.

Implementation of requirements of the international standards is the conventional criterion of competitiveness and investment appeal, and the corresponding certificates – their "card" in the international market.

On an annual basis monitoring and the analysis of processes of SMQ is carried out.

Following the results of 2011 questioning of consumers in a segment "population" and «corporates» and analysis of their satisfaction.

In 2011 in the company SMQ working group activity is created and organized:

- the matrix of distribution of responsibility for implementation of requirements of ISO 9001:2008 is developed and introduced;

- the program of internal audit of SMK is realized;

- audit of maintained measuring instruments and means of individual protection is carried out;

- the 2nd observant audit of SMK about compliance of quality management system of JSC Kaztransgaz-Almaty to requirements of the international standard of the DIN EN ISO 9001:2008 series is passed.