Transcript 2015

INVESTMENT POTENTIAL
OF SOUTH KAZAKHSTAN REGION
KAZAKHSTAN
 Capital: Astana
 Territory: 2,7 mln. sq. km. (9th in the world)
 Population: 17 ,8mln. (63rd in the world)
 Border countries: Russia, China, Uzbekistan, Kyrgyzstan, Turkmenistan,
via Caspian Sea Azerbaijan and Iran.
 Administrative divisions:
14 regions, 2 cities of republican value (Astana and Almaty)
 GDP 2015: $ 184, 36 bln $ (53st in the world)
 GDP per capita 2015: $ 10,546 $ (72th in the world)
 Currency: tenge ($ 1 – 343 tenge)
 Kazakhstan ranks first in the world in explored reserves of zinc, tungsten and
barite, second - silver, lead and chromite, third - copper and fluorite, fourth molybdenum, sixth - gold.
EURASIAN ECONOMIC UNION
EEU IS:
 Market: 175,7 mln. people
 GDP: 2 411 bln. USD
Energy industry
 Gas: 20,9%
share in the world (1st place)
 Oil: 14,6%
share in the world (1st place)
 Goal mining: 5,8 %
share in the world (6th place)
 Electricity generation:
11,2 % share in the world (3rd place)
Manufacturing industry
 Steel production: 4,5%
share in the world (5th place)
Movement of the four freedoms in the
 Production of mineral fertilizers:
10,8 % share in the world (2nd place) framework of the EEU:
Free border cross of:
Agriculture
1. goods
 Potatoes: 11% share in the world
2. services
 Wheat: 9% share in the world
3. capital
 Milk: 7% share in the world
4. labor
 Meat: 3,5% share in the world
TRADE AND LOGISTICS
 3.3 bln. people reside
within the territory of
radius of 2000 km out
outside Kazakhstan.
 Three member
countries of BRICS are
near Kazakhstan:
Russia, China and
India.
 The flight time from
most European cities is
around five hours.
INFRASTUCTURE
 The total length of railroad
network - 15,341 km, 6000
of which are double tracks and
about 5000 - electrified.
 More than 68% of the total
turnover and more than 57% of
the country's passenger traffic
accounted for by the railways.
 Kazakhstan railway borders:
with Russia, China,
Uzbekistan, Kyrgyzstan and
Turkmenistan.
33% (2,787 km) of the transport
corridor "Western EuropeWestern China" are in
Kazakhstan, which is the shortest
route in international
trasportation between Europe and
China
Public roads: 96 thousand km.
5 international road routes go across Kazakhstan with total
length of 23 thousand. km.
1. Almaty-Astana -Kostanay exit to Chelyabinsk (Russia);
2. Almaty-Petropavlovsk with access to Omsk (Russia);
3. Almaty -Family -Pavlodar with access to Omsk (Russia);
4. Almaty-Shymkent with access to Tashkent (Uzbekistan);
5. Shymkent-Aktobe-Uralsk with access to Samara (Russia).
Investment Climate
GLOBAL COMPITITIVENESS INDEX
Kazakhstan took the 42th place among 144 countries.
• "The efficiency of the labor market" - 18th place
• "The degree of investor protection" – 25th place
• "Macroeconomic environment" - 27th place
• «Quality of railway infrastructure» – 28th place
DOING BUSINESS
According to the authoritative rating - «Doing Business» in 2016
Kazakhstan took the 41th place among 189 countries.
• «Taxation» - 17 th place
• «Property registration» - 18th place
• «Investor protection» - 25th place
Favorable business climate and political stability promoted a considerable FDI
inflow into Kazakhstan in 2005. Kazakhstan has attracted FDI in gross
more than 220 billion USD.
Investor protection
 According to the annual Global Competitiveness
Index for 2015-2016, Kazakhstan took the 25th
place on the degree of investor protection.
 Kazakhstan signed an agreement on mutual
protection of investments with 47 countries.
INVESTMENT OMBUDSMAN
In order to assist in protecting the rights and legitimate interests of investors,
an investment ombudsman has been set up.
The main functions of investment Ombudsman are:
 Examining investor inquiries on issues arising in the course of carrying out
investment activities in Kazakhstan and giving advice on solutions;
 Assisting investors in finding solutions for the issues arising in extrajudicial
and pre-judicial procedures;
 Developing and implementing recommendations on the improvements
 for the legislation of Government of RK.
South Kazakhstan Region
 Area: 117 249 sq.km
 Population: 2.8 mln.people
 Unemployment rate: 5,3%
 The average monthly earned payment
in SKR: 82 288 tenge / 240 USD
 Additionally: the average monthly earned
payment in Kazakhstan 119 111 tenges / $347
 Administrative center: Shymkent (3rd
large city in Kazakhstan)
 Administrative districts: 4 cities
(Shymkent, Kentau, Turkestan, Arys) and 14
areas.
 1st on reserves of uranium and on 3rd on
reserves of phosphorite and ferrous in
the KZ
 330 sunny days in a year
 Average temperature:
January of -2 °C, July of +29 °C.
Investment preferences
Tax exemption
• Corporate income tax for 10 years
• Land tax for 10 years
• The property tax for 8 years
INVESTMENT SUBSIDY
Up to 30% compensation on actual investor expenses for SMR and
acquisition of the equipment from the state after input of object in
operation
RELEASE FROM THE CUSTOMS DUTIES
Release from payment of the customs duties when importing the
equipment, accessories and spare parts to it, the raw materials and
materials necessary for implementation of the investment project.
NATURAL GRANTS
Free use: the land plots, buildings, constructions, cars and the
equipment, computer facilities, the measuring and regulating
devices and devices, vehicles.
SIMPLIFICATION OF HIRING OF LABOUR
The work permit for foreign labor during all term of
implementation of the investment project and one year after
commissioning of the investment project isn't required.
STABILITY OF THE LEGISLATION
Stability of the tax law for all tax rates, except the VAT and excises
(on condition of the conclusion of the investment contract)
Criteria for receiving investment preferences: To correspond to the list of
priority kinds of activity:
 Metallurgy;
 Chemical branch;
 Petrochemical branch;
 Mechanical engineering;
 Industry of construction materials;
 Food industry.
2. New created company (less than 12 months before the demand for investment
preferences) with investments not less than 2 million MSI (monthly settlement
indicator).
1 MSI = 2 121 tenge/6, 3 USD
 2 000 000 MSI = 4 242 000 000 tenge / 12 476 470 USD
Economics
The volume of a gross regional product for 2015 made 2 508 380,9
million tenges
Name
GRP,
Mln tenge
Structure
of GRP, %
SKR share in
structure
GRP on RK, %
10 priority branches of
economy of SKR
1. Agriculture
2. Food industry
In total
2508380,9
100
6,1
Agriculture, hunting and
forestry
232 810,4
9,3
5,7
Industry
658 204,2
26,2
4,8
Mining industry
and development of pits
139 639,2
5,6
1,0
Manufacturing industry
484 481,2
19,3
11,3
Building
156 782,4
6,3
6,4
Wholesale and retail trade
272 804,1
10,9
4,7
Transport and warehousing
237 706,6
9,5
6,6
8. Energy production
Other services
950 073,2
37,8
6,6
9. Tourism
3. Light industry
4. Pharmaceutics
5. Machinery
6. Industry of
construction
materials
7. Petrochemistry
10. Logistics
Industry
In 2015 the SKR industrial enterprises have produced 668 bln tg or over 2,7 billion USD.
45% of the enclosed investments into fixed capital in 2015 in SKR were invested in industrial
spheres
17,7% of credit investments in 2015 in SKR were directed by banks of the second level on
industrial spheres
SKR share from total production across Kazakhstan
following the results of 2015.
100% cotton oil
26,9% gas oil
99,2% transformers
24,5% cement
97,5% cotton fabrics
21,9% flour
67,2% kerosene
21,4% pasta
57,0% textile products
21,2% bread
53,4% pharm. preparations
17,4% bricks
44,9% windows and doors
13,8% fowl
37,3% gasoline
12,3% paper
30,1% fuel oil
10,4% lime
Agricultural industry
SKR share from total production
across Kazakhstan following the
results of 2015.
100% of cotton
71% of grapes
66% of melon
51% of carthamus
42% of fruits
25% of vegetables
In 2014 the volume of gross output of agriculture made 325
bln.tg or 1,8 billion USD.
10,3 million hectares or 87% of the territory of area are
occupied with agricultural land
9095,8K ha of pastures, 779K ha cultivated areas, 442,3K
ha of the irrigated land
91% of greenhouses of the republic are placed in SKR
38% of economically active population of area or more than
500 000 people is occupied in agriculture
2,3 mln. tons of vegetables, melon cultures and potatoes
were collected in 2015.
490K tons of vegetables and melon cultures are sent for
export in the Customs union, including to Russia – 310K
tons
23 billion tg. or 125 million USD a subsidy in 2015 were
allocated with the state in SKR for development of the of
agriculture
64 706 tg. or 240 USD are made by an average
monthly salary in agriculture
Tourism
 One of the most visited tourist objects in Average of Asia
is Hodge Ahmet's mausoleum of Yassavi which is
included in the List of the world heritage of UNESCO. In
2015 Hodge Ahmet's mausoleum of Yasavi was visited
by more than million tourists.
 In the territory of the resort "Saryagash" is 19 improving
complexes. Annually visit more than 284 000 people.
 In the region 2 reserves ("Aksu-Zhabagly" and
"Karatausky") and 1 national park ("Sairam Ugamsky")
are located
For development of tourism 4 tourist zones are
created:
 “Kaskasu” tourist recreation center
 "Saryagash“ SPA and resort
 "Shardara“ beach
 “Badam“ beach
Tourist zones
Name
«Kaskasu» ski
resort
Improving and
resort zone
«Saryagash»
Beach zone
«Shardara»
Beach zone
«Badam»
Allocated area
56 hectares
40 hectares
106 hectares
64 hectares
Required
investments
230 million $
154 million $
192 million $
184 million $
State support:
- Ready infrastructure (water, electricity, gas, highway);
- Maintenance when obtaining allowing documents;
- Providing market research from international consulting the companies;
- Possibility of repayment or rent of the land plot below market value.
rResources
Name of the area or
№
Name of resources
city
1
ARYS
Clays bentonite, limestones, сlay-plasters, sand for concrete and silicate
products
2
KENTAU
Barite, limestones, copper, molding
3
TURKESTAN
Barite, limestones, plaster, clay-plasters, molding and molding clays, clays
bentonite
4
BAYDIBEK d.
Mineral paints, marble, facing stones
5
KAZYGURT d.
Plaster, clays bentonite, clays refractory, carbonate raw materials, perlite,
obsidian
6
MAKTAARAL d.
Plaster
7
ORDABASY d.
Mineral paints, clays bentonite
8
OTYRAR d.
Loams, dolomite and, dolomitted limestone,
construction sand
9
SAYRAM d.
Clays bentonite and sand quartz
10
SARYAGASH d.
Molding and molding clays, clays bentonite, limestones, carbonate raw
materials and sand quartz
11
SOZAK d.
Clays bentonite, talc, hrizotit asbestos, loams, sand quartz and field spars
12
TOLEBI d.
Mineral paints, limestones, clays refractory, clays forming, vollastonit, marble
and fluorspar fluorite
Site and logistics
SKR borders with:
Republic of Uzbekistan
Zhambyl region
Karaganda region
Kyzylorda region.
SKR is "the southern gate" of EEU
in international trade, to that
promote:
transport corridor "Western the Europewestern China" which is in the shortest
way in the international transportation
between Europe and China;
the highway "Shymkent-Tashkent",
opening to Kazakhstan the southern
countries;
Trans-Asiatic railway line.
 From Shymkent live 10 million in radius of 200
km persons.
 In a radius of 500 km – 25 million persons.
 In a radius of 700 km – 50 million persons.
In Shymkent international airport which carries out regular flights to the following cities
functions: Istanbul (Turkey), Moscow (Russia), Dubai (United Arab Emirates),
Sharjah (United Arab Emirates), Urumqi (China), Astana, Almaty, Aktau.
Industrial zones of SKR
Total area : 937 hectares
The number of existing IZ : 7 (592 ha)
The amount of the IZ under construction: 4 (345 ha)
The number of industrial
zones
11
6
1
2
3
2010
2013
2014
2015
2016
The total area of industrial
zones (hectares) 937
337
377
427
2010
2013
2014
525
2015
2016
THE ATTRACTIVENESS
OF INDUSTRIAL ZONES
 Ready Infrastructure: Electricity, gas, water and other engineering and
communication networks.
 Fares are cheaper by 30%
 Possibility to lease or purchase land, on a cost below than market value *
 Convenient logistic location
 Maintenance of projects on the principle of “single-window system (one-stop shop)”
 Promoting the goods and services of the participants of industrial zones
* If the project complies with priority activity, the land is available for free
How to become the resident of industrial zone
Submit the necessary
documents to the
Managing Company
Get the result of the
Regional Coordinating
Council
PROJECT
Protect project in the
Regional Coordinating
Council
Sign an agreement with
the Managing Company
Kazakh-Turkish Industrial Zone
Established in 2015
The site is 203 hectares.
Possibility of increase up to 500
hectares.
Special Economic Zone
«Ontustik»
 At the present time are implemented 10 projects worth 24
billion. tenge, created 2145 work places.
 At the stage of implementation of 13 projects worth 154 billion.
tenge, 6256 work places will be created until 2018 year.
 The total area 200 hectares, 35 hectares are available for new
investors.
 Maintenance of projects according to principle “One-stop
shop“
Completed infrastructure
 Special customs and tax regimes
The gas pipeline - 8000 m3/h.
 Public utilities are cheaper by 35%
Substations - 160 MW / h.
Water - 50 000 m3 / day.
 The simplified procedure for attracting foreign labor
Sewer - 35 000 m3 / day.
 Providing of free land
0%




VAT on goods, realized in the SEZ
corporate income tax
property tax
land tax
Railways - 4 lines
installation of telephones –250 num.
Fire station
the customs post
Security checkpoints - road and railroad;
Transport and
logistic center
General indicators:
The site area – 92 hectares
7 investment projects
The area of warehouses – 242,5 k sq.m
Container terminal, wholesale trade
Customs, HUNDRED, hotel
Office rooms
Expansion of city airport Shymkent
Expansion and integration with train and bus stations of the
airport of Shymkent
Functioning term: 2017-2021
Realization place: Shymkent
Type of the investment project: on the basis of the operating
enterprise
Period of implementation of the project: 2017 – 2021 y.
Direction of use of investments: expansion
The existing terminal is calculated on: 400 K passengers a year
The new terminal is calculated on:1 mln. passengers a year
Site Plan
Project cost: 143,0 mln. dollars.
The demanded volume of investment: 143,0 mln. dollars.
The planned output: The planned annual volume of production (services) in terms of money
(one thousand tenges): Sales market: Regional, International
Current state: Seizure of land
Creation of workplaces during construction: Creation of workplaces during operation: 1000
Payback period, month: 180 months.
The discounted payback period, month: -
New multimodal transport center
The new terminal of the airport will be integrated
with railway and bus stations, and also the transport
and
logistic
center
which
prepares
for
commissioning now. Such concept of development
of the airport will be used for the first time in
Kazakhstan
Airport
Train station
Bus station
Project on construction of SHPP
in SKR
Electricity consumption of SKR - 438,6 (MW)
Quantity of SHPP
Power SHPP
(MW)
43
119,84
16 %
84 %
Purchase from other regions - 367,9 (MW)
Productions of the electric power of SKR - 70,7 (MW)
On 20 rivers it is required to construct 43
SHPP from 0,65mvt to 8,54 MW.
Agrozone "Apple-tree Gardens"
Project purpose: Creation of an agro-zone on
cultivation of an intensive apple-tree garden.
The investment project provides a laying of an intensive
apple-tree garden (winter, transportable, highcommodity grades) on a support with use of the drop
irrigation equipped with the modern equipment.
Realization place: Altyntobe, the Kazygurt area
Territory of an agro-zone: 300 hectares
Information of area
Conditions of implementation of projects in the agrozone
"Apple-tree Gardens"
Land plot: it is provided at cadastral cost.
Infrastructure providing: "The road map of business-2020" is brought free of charge on a state program.
Subsidizing: the laying of intensive apple-tree gardens provides receiving the state subsidizing of 40% of investment expenses
(trallis system, system of a drop irrigation, a hail - a protective grid, saplings) on a state program "Agrobusiness-2020".
Agro-industrial zone
“Greenhouse Paradise"
Project cost – 164,7 million USD
Total area - 136 hectares of convenient logistic
system
Infrastructure:
Gas-turbine power plant – 120 MW
Heat supply on 250 MW (on 1 hectare 2,5
MW/hour of heat) – Gas-piston installations
(GPU) / Gas-turbine installations (GTU)
Water supply on 10 000 m3
Power supply on 115 MW – general use 15 MBA
and GPU/GTU 100 of MVA
Supplementary lighting on 100 hectares 100
MW (on 1 hectare 1 MW/hour lighted) – for
increase of productivity during the winter
period (for 100-150%)
Carbon dioxide (CO2) on 100 7000 kg/h
hectares (on 1 hectare 70 kg/h) – for
productivity increase (for 30%)
Implementation site of the project 1
The Cottage Town “Bozaryk”
Project name : The Cottage Town “Bozaryk” (construction
of individual houses)
Branch: Construction
Objective of the project: (solving social and economic
problems of the region)
Type of project (in the direction of): social, commercial
Type of project (deadline for implementation): shortterm
Project implementation period: 2016-2018
Term of operation: 35-40 years
Project location: Shymkent city, district "Bozaryk"
Funding scheme: direct investment
Areas of investment: infrastructure support
Current status: During the development stage, need to change
the DMA of Bozaryk area, Shymkent city from high-rise
buildings to the cottage.
Creation of job places during the operation: 400 people
Creation of job places during construction: 2,000 people
Sales market: South Kazakhstan region, Shymkent city
The amount of investment: 100-150 mln. USD
Payback period: 5 years
Additional information will be provided upon your request
«House-Building Plant»
Project name:«House-Building Plant "(house
construction development)
Branch: Construction
Objective of the project: (solving social and
economic problems of the region)
Type of project (in the direction of): social,
commercial
Type of project (deadline for implementation):
short-term
Project implementation period: 2016-2017
Term of operation: 35-40 years
Project location: Shymkent city, administrative and
business center
Funding scheme: direct investment
Areas of investment: infrastructure support
The planned annual volume of products
(services): 14776.6 sq m
Creation of job places during the construction:
200 people
Sales market: Kazakhstan
Amount of investment: 1.988 billion tenge
Payback period: 2 years
Additional information will be provided upon
your request
Invest in South Kazakhstan!