Kazakhstan Program for Accelerated Industrial-Innovative Development

8/6/2019 Kazakhstan Program for Accelerated Industrial-Innovative Development

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STATE PROGRAMfor Accelerated

Industrial-Innovative Developmentof the Republic of KazakhstanMinistry of Industry and New Technologiesof the Republic of Kazakhstan


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STATE PROGRAMfor Accelerated Industrial-Innovative Development

of the Republic of KazakhstanKEY PERFORMANCE INDICATORS

INCREASE BY 2015:GDP by 50% of the 2008th GDP;Productivity in manufacturing industry by no less than 1.5 times;

Share of the manufacturing industry in the structure of GDP to 12.5%;Share of non-raw materials exports in the total volume of exports to 40%;Share of innovative enterprises in the number of active enterprises to 10%;

DECREASE BY 2015:Energy intensity of GDP by no less than 10% of the 2008th.


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Based on domesticdemand

Export-oriented

Sectorsof the future

economy

Mining and Metallurgical Complex

Atomic industryChemical industry

Petrochemicals

Machinery

Construction industryPharmaceuticals

Agro-industrial complex

Light industry FES Ontustik

Tourism - FES Burabai

Information and Communication Technology

Biotechnology

Alternative Energy

Traditional

PRIORITY SECTORS OF THE ECONOMYSTATE PROGRAM

for Accelerated Industrial-Innovative Developmentof the Republic of Kazakhstan


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BUSINESS ROAD MAP 2020: Development of small and medium enterprises

Interest rates subsidies on loans;Development of production (industrial) infrastructure.

EXPORT 2020: Promotion of domestic companies on foreign markets

Grants for exporters;Trade finance and export insurance;

Export support services.

PRODUCTIVITY 2020: Improving efficiency through cost reduction

Subsidized interest rates on leases and loans;Innovation grants;The introduction of new products for production.

INVESTOR 2020: Foreign investment attractionExemption from customs duties;State natural grants;Tax incentives in FEZ;Measures from BUSINESS ROAD MAP 2020

PROGRAMS OF MULTIPLE SUPPORTSTATE PROGRAM



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ATTRACTING FDI:ONE-STOP SHOP SERVICES

JSC National agency for exportsand investment KAZNEX

INVESTprovides

ONESTOP SHOPservices

Information on investmentopportunities and business

conditions

Rendering assistance ina choice of projects and

partners

Information oninvestment projects

Rendering assistance inreception of measures

for state support

Assistance in makingdecisions on administrative

questions

Organizationof meetings with official

representatives


of the Republic of Kazakhstan


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MINING POLICYSTATE PROGRAM


Mining policy principles:

Total 5004 depositsGroundwater - 1285/1028

Hydrocarbon raw - 259Solid Minerals - 839

Widespread minerals - 2624

Resource supportfor SPAIID projects

Promotion of the useof technology

for the production

Transition to high valueadded production

Enhancementof contractual obligations

monitoring


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DEVELOPMENT OF LOCAL CONTENTSTATE PROGRAM


By 2014, increase the share of local content to 60%

Entrepreneur

Participation criterionProduction in Kazakhstan;Status of Kazakhstani producer

(certificate CT-KZ)

Competitive advantagesPrioritized procurement;Use of conditional

discounts;

Minimum long-term publicorder


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MINING AND SMELTING COMPLEXSTATE PROGRAM


MSC market - $ 15,5 bill

9,9

5,6

Own production Import

38%

62%

Niche projects:

Non-ferrous metallurgyAlumina 1500 thou. Tons.;Primary Aluminum 250 thou.tons.;Copper 578 thou. Tons.;Zinc 36 thou.tons.;

Ferrous metallurgySteel 6000thou. Tons.;Ferrochrome and Ferrosilicochrome 440 thou.tons.;Granular iron 500 thou.tons.;Briquetted iron 2800 thou.tons.;

Waste dumps recyclingIndustrial waste 20 billion tons.;Non-ferrous metallurgy 10.1 billion tons.;Ferrous metallurgy 8.7 billion tons.


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CHEMICAL INDUSTRYSTATE PROGRAM


Niche projects:

Chemical industry

market - $ 3.5 bill.

1,1

2,4


Basic inorganic chemistryPotash 400 thou. Tons;Soda 350 thou.tons.;Sodium cyanide 100 thou.tons.;

Basic organic chemistryPolyvinylchloride 15 thou.tons.;Polyethylene glycol 10 thou. Tons.;Organic acids 120 thou. Tons.;

Specialty Chemicals Household chemicals

Retardants

250 thou,tons.;Phenol antioxidants 45 thou.tons.;Super plasticizers 50 thou.tons.;Agrochemicals 20 thou,tons.;Oil additives 38 thou.tons.;


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MACHINERY INDUSTRYSTATE PROGRAM


Machinery industry

market - $ 16 bill.

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1


Segments ofmachinery industry

Volume ofimport ($)

1. Transport machinery 4,128 bill.

2. Electircal machinery 2,736 bill.

3. Oil and gas machinery 1,695 bill.

4. Agricultural machinery 1,2 bill.

Total 10 bill.

Share of machinery industry in the structure of total imports of the country 41%


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ALTERNATIVE POWER(Renewable energy sources)



Kazakhstan

WPS

1. Shelek corridor2. Jungar gates3. Upper Tainti4. Kargalinsk5. Mount. Yermentau6. Mount. Arkalyk7. Qarabotan area8. C. Shefchenko fort9. Qorday

10. Zhysymndik

Small HES1. Yssyk river2. Baskan river3. Koksy river4. Shelek river5. Lepsy river

6. Keles river

SPS

1. c. Almaty

40 MBT

40 MBT

40 MBT

35 MBT

10 MBT

24 MBT

50 MBT

89,65 MBT

51 MBT

6 MBT

20 MBT

10 MBT

40 MBT


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Kazakhstan

INDUSTRIAL INFRASTRUCTURESTATE PROGRAM


SEZ IT park

SEZ Petrochemical park

SEZ Burabay

SEZ Sea port AqtauSEZ Ontustik

SEZ Astana new city Astana

AlmatyTaraz

Shumkent

Qyzylorda

QaraghandySemey

Oskemen

Pavlodar

Qostanay

Oral

Atyrau

Aktau


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CUSTOMS UNION:KAZAKHSTAN, RUSSIA, BELARUS



Kazakhstan

Belorussia

Unified trading laws:1. Unified customs territory;2. Unified trade policy;3. Unified customs rules and code;4. Free movement of goods in the

customs area

Advantages for potential investors:

Investment incentives:- Exemption from customs dutieson imports of productionequipment and raw materials inKazakhstan for the implementationof investment projects.

- In Kazakhstan more liberal taxation, compared withRussia and Belarus to open and

maintain business.

Russia

Market capacity is about 170 million peoplewith a total GDP of 2 trillion. U.S.$


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ICBC Khorgos:Western Europe - Western China



Russia

China

Europe Kazakhstan

ICBC Khorgos

West Europe West China 8 445 (10 days)

Sea route 24 000 (24 days)


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CONCLUSIONSTATE PROGRAM


In general, for implementation of program of forced industrial-innovative developmentnecessary to attract investment totaling over $ 60 billion;

For current time, more than 300 projects identified sources of fundingin the amount of$35 billion;

Advantages of the Republic of Kazakhstan:

favorable tax treatment (in 2009 year CIT rate is reduced from 30 to 20%, and by2011 will be 15%, VAT rate reduced from 13 to 12%)

significant reserves of natural resources;

low rates on major components of production cost (electricity, gas, railwaytransportation); in conclusion we should note that with relatively low wages, we havehighly educated and skilled workforce.


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Thank you for attention!

Kazakhstan Program for Accelerated Industrial-Innovative Development

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