state program for accelerated industrial-innovative ... · on imports of production equipment and...

STATE PROGRAM for accelerated industrial-innovative

developmentof the Republic of Kazakhstan

Ministry of Industry and New Technologies of the Republic of Kazakhstan

KEY 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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PRIORITY SECTORS OF THE ECONOMY

Based on domestic demand

Export-oriented

Sectors of «thefuture economy»

� Mining and Metallurgical Complex � Atomic industry� Chemical industry� Petrochemicals

� Machinery� Construction industry� Pharmaceuticals

� Agro-industrial complex � Light industry� Tourism

� Information and Communication Technology� Space activities� Biotechnology� Alternative Energy

Traditional

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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 oriented;

• Increased local content;

• Creating new jobs.

Participation criterion

State support measures

Enterpreneur

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The program includes:


EXPORT 2020

Promotion of domestic companies on foreign markets

� Grants for exporters -

� 50% reimbursement for promotion of export oriented products;

� Trade finance and export insurance;

� Export support services :

� providing information, expertise;� promoting trademarks of concrete products;� organization of trade missions of Kazakhstan abroad;� creating a network of overseas offices.

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PRODUCTIVITY 2020

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Improving efficiency through cost reduction

� Subsidized interest rates on leases and loans � applicants own contribution no less than 20% of total investment;

� Innovation grants;

� The introduction of new products for production;

� The introduction of management technologies.

• Increased productivity;• Export oriented;• Growth of fixed assets investment;• Increase in innovative activities.

State support measures

Enterpreneur




INVESTOR 2020

Incentives

Measures from BUSINESS

ROAD MAP 2020 Tax incentives

State natural grantsExemption from customs duties

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Foreign investment attraction


ATTRACTING FDI: “ONE-STOP SHOP” SERVICES

Information on investment opportunities and business

conditionsRendering assistance in a

choice of projects and partners

Information on investment projects

Rendering assistance in reception of measures

for state support

Assistance in making decisions on administrative

questions

Organization of meetingswith official representatives

JSC «National agency for exports and investment «KAZ NEX INVEST» provides “ONE–STOP SHOP” services

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NUMBER OF MINERAL RESOURCE BASE FIELDS IN RK

Total – 5004 deposits

Groundwater1285/1028

Mineral water - 5

Curative mud - 5

Householddrinking water - 1215

Hydrocarbon raw - 256

Free gas - 201/41

Condensate - 57/8

Oil - 223/46

Solid Minerals839

Nonmetals - 176

Coal - 49

Uranium - 54

Metals – 560of them

containing

Widespread minerals2624

Gold: 299/132

Copper:104/35

Lead: 85/40

Zinc: 83/33

Aluminium24/17

Iron ore: 58/22

Manganese ore:33/12

Chromiteore: 21 /8

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MINING POLICY

Resource support for

SPAIIDprojects

Promotion of the use of

technology for the

production

Transition to high value

added production

Enhancement of contractual

obligations monitoring

Mining policy principles:

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DEVELOPMENT OF LOCAL CONTENT

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

Entrepreneur- Production in Kazakhstan;- Status of Kazakhstani producer (certificate CT-KZ)

- Prioritized procurement;

- Use of “conditional

discounts”;

- Minimum long-term public

order.


Competitive advantages

Ministry of industry and new technologiesof the Republic of Kazakhstan

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MINING AND SMELTING COMPLEX

38%

62%

• Alumina – 1500 thou. tons.;• Primary Aluminum – 250 thou. tons.;• Copper - 578 thou. tons.;• Zinc – 36 thou. tons.;

Non-ferrous metallurgy

• Steel – 6000 thou. tons.;• Ferrochrome and Ferrosilicochrome – 440 thou.

tons.;• Granular iron – 500 thou. tons.;• Briquetted iron – 2800 thou. tons.;

Ferrous metallurgy

• Industrial waste – 20 млрд. тн.;• non-ferrous metallurgy – 10,1 млрд. тн.;• ferrous metallurgy – 8,7 млрд. тн.

Waste dumps recycling

Niche projects:

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CHEMICAL INDUSTRY

Niche projects:

• Potash– 400 thou. tons.;• Soda– 350 thou. tons.;• Sodium cyanide - 100 thou. tons.;

Basic inorganic chemistry

• Polyvinylchloride – 15 thou. tons.;• Polyethylene glycol – 10 thou. tons.;• Organic acids – 120 thou. tons.;

Basic organic chemistry

• Retardants– 25 thou. tons.;• Phenol antioxidants – 45 thou. tons.;• Super plasticizers – 50 thou. tons.;• Agrochemicals – 20 thou. tons.;• Oil additives – 38 thou. tons.;

Specialty ChemicalsHousehold chemicals

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MACHINERY INDUSTRY

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

№ Segments of machinery industry

Volume of import ($)

1. Transport machinery 4,128 bill.

2. Electrical machinery 2,736 bill.

3. Oil and gas machinery 1,695 bill.

4. Agricultural machinery 1,2 bill.

Total 10 bill.

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CONSTRUCTION INDUSTRY

By 2014:• Increase in GVA ≥76% • Meeting the needs of domestic market => 80%

2008 год 2014 годSheet glass

Linoleum

Armature

Paint

CementGypsum

plasterboardMixes

Thermal insulation

Slate

Ceramic building products

ProductionImport

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ProductionImport

Concrete products

Sheet glass

Armature

CementGypsum

plasterboard

Thermal insulation

Slate

Ceramic building products

Concrete products

Mixes

Paint

Linoleum


REQUIREMENT OF MAIN CONSTRUCTION MATERIALS IN 2010-2014

2010 2011 2012 2013 2014 TOTAL

Sheet glass, thou. sq.m. 22 000 25 000 28 000 31 500 35 000 141 500

Cement, thou. tn. 4 800 6 200 7 100 8 200 9 700 36 000

Precast concrete, sq. m 1 300 1 400 1 700 1 900 2 200 8 500

Tiles , thou. sq.m. 9 500 10 700 12 800 15 400 18 500 66 900

Sanitary and technical ceramics ware, thou. tn.

1 500 1 520 1 530 1 540 1 550 7 640

TOTAL 39 100 44 820 51 130 58 540 66 950 260 540

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PHARMACEUTICALS INDUSTRY

By 2014 increase the share of domestic drugs in the do mestic market to 50% in-kind.

Contract production of about 400 types of medicines adhering to the standards of

GMP at production facilities in Kazakhstan

Offer for companies

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AGRO-INDUSTRIAL COMPLEX

Total land area of the republic of kazakhstan

Pastures59.6

Gardens and service

allotments 0,01

Hay2

Reservoir3

Settlements23,2

Agriculture91,7

Settlements22,9

Industry2,6

Specially protected areas

4,7

Forests23,3

Water4,1

Reserve land 111,8

Farmlands – 87,9 mln. ha

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CURRENT STATUS AND PROSPECTS OF PLANT INDUSTRY

50%32%

DEVELOPMENT OF PLANT INDUSTRY

2009 г. 2014 г.Activities

Covered ground area, all, ha: 217,0 350

- grains 6788,7- cotton- rice

6,4

69,0

9 200

40

71,4

by 61,3%

by 35,5%

by 3 %

6 times

Vegetable warehouses storing capacity, thou. tons 382 11883 times

Growth of export capacity, tons:

SOWN AREA, PRODUCTION AND EXPORT OF GRAIN

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CURRENT STATUS AND PROSPECTS OF LIVESTOCK INDUSTRY

2009 г. 2014 г.Activities38

Construction of feeding platforms

Construction of modular veterinary laboratories 114

Construction of dairy farms 8

56

5

35

62Construction of poultry

DEVELOPMENT OF THE LIVESTOCK INDUSTRY

THE SHARE OF BREEDING ANIMALS. % THE SHARE OF AGRICULTURAL ENTERPRISES IN LIVESTOCK PRODUCTION,%

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LIGHT INDUSTRY

Development of SEZ "Ontustik“Main activities:

� Weaving;� Manufacture of cotton and all kinds of yarn;� Production of silk fabrics and products based on them;� Production of non-woven textile materials and products from them;� Manufacture of carpets, rugs and tapestries;� Production of cotton cellulose and its derivatives;� Manufacture of leather products

Advantages:

� Exemption from customs duties, corporate, income, property and land taxes up to 2030;

� Availability of raw materials;

� Advantageous geographical location - proximity to major markets, importers of light industry products;

� Infrastructure and utilities.

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ALTERNATIVE POWER(Renewable energy sources)

WPS

1. Shelek corridor

2. Jungar gates

3. Upper Tainti

4. Kargalinsk

5. Mount. Yermentau

6. Mount. Arkalyk

7. Qarabotan area

8. C. Shefchenko fort

9. Qorday

10. Zhysymndik

SPS

1. c. Almaty

Small HES

1. Yssyk river

2. Baskan river

3. Koksy river

4. Shelek river

5. Lepsy river

6. Keles river

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MEASURES OF RENEWABLE ENERGY DEVELOPMENT SUPPORT

• Priority in reservation and provision of land for the construction of renewable energy projects

Land

• Support for connecting objects of RES to networks of power transmission organizations;

• Energy transmission organizations liabilities to purchase electricity generated using renewable energy

• Exemption from payment for the transfer of renewable electricity through network of energy transmission organizations.

Transfer of energy

• Investment incentives and preferences for the construction and operation of the renewable energy sources

Construction

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INFORMATION AND COMMUNICATION TECHNOLOGY

The infrastructure to support and implement innovat ive solutions is being created in the Republic of Kazakhstan

SEZ «INFORMATION TECHNOLOGY PARK»:

� Development of the informational technology industry;

� Creation of high-performing, highly technological and export-oriented modern information technologies production;

� Development of new kinds of informational technology products;

� Investments attraction.

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INDUSTRIAL INFRASTRUCTURE

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CUSTOMS UNION: KAZAKHSTAN, RUSSIA, BELARUS

Kazakhstan

Belarusia

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 duties on imports of production equipment and raw materials in Kazakhstan for the implementation of investment projects.

- In Kazakhstan more liberal taxation, compared with Russia and Belarus to open and maintainbusiness.

Russia

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ICBC «Khorgos:Western Europe - Western China»

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30-35 days

10 days

West Europe – West China – 8 445 км

Sea route – 24 000 км

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