astana west kazakhstan region singapore – 2015 uralsk
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ASTANA
WEST KAZAKHSTAN REGION
Singapore – 2015
URALSK
2
Overview of West Kazakhstan region
10,4 billion US$GRP in 2014
16 K $ GRP per capita
Territory 151,339 km²
Population 630 000
Entities of business45,8 K. enterprises
External Trade Turnover (2014)Export – 9,5 bln US$ Import – 0,5 bln US$
Manufacturing complex
Machine Building
Mining sector
Agro-industrial complex
413Public Secondary Schools 87 400 school pupils
39Vocational Education Institutions
25 900Students
100Specializations
180
Healthcare Organizations
1900
Doctors
4300 State-funded patient capacity
400Pharmaceuticalorganizations
Education and healthcare
3
Over the past 10 years the regional GRP has increased 5-fold - from 1.9 billion $ to 10 billion $
For the last two years it has been involved direct foreign investments to the amount of more than 1.3 billion USD.
Investment volume, mln. $
4
Investments and foreign economic activities
2010 2011 2012 2013 20140.0
200.0
400.0
600.0
800.0
Chart Title
443,3 380,0 376,0
565,3757,5
$ 78,0 mln.
$ 686,5mln.
The Customs Union
$ 9,5billion.
$ 490,2 mln.
Export Import
Total for 2012
Export Import
5
РАЗВИТИЕ ПРЕДПРИНИМАТЕЛЬСТВА The development of business and industry in the region
9,979,02
2014 y. 2013 y.
Industry, billion $
89,1
8,6 1,90,4 mining industry
manufacturing industry
electric power supply, steam and gas
water supply and sewerage
The structure of the industrial complex
The volume of manufactured products and services for small and medium-sized businesses 2.1 billion $
750780
2014 y. 2013 y.
Manufacturing industry, mln. $
Resources
Produced in 2014 – 22,7 billion cub. m. of hydrocarbons and gas
Produced goods in 2014 – 6,8 billion US$
Production content in GRP of West Kazakhstan – 65,4%
Production content in the volume of West Kazakhstan industry – 68%
Karachaganak oil and gas condensate field
1,35 trillio
ncub.m
.
Dry gas1,2 billio
ntons
Oil,condensate
6
Construction Materials
Flask Gypsum
Ground chalk
Sand and gravel
Clay
Potash salt Asbestos
Borate ore
Mineralsmore than 45 types
Chinarevskoe oil and gas condensate field
Resources
«Zhaikmunai» LLP transformed into «Nostrum Oil & Gas PLC»
Produced in 2014 – 7,6 million cub. m. of hydrocarbons and gas
Produced goods in 2014 – 782 million US$
Production content in GRP of West Kazakhstan– 7,5%
Production content in the volume of West Kazakhstan industry – 7,9%
40 billioncub.m
.
Dry gas55 mln.tons
Oil,condensate
230,4 mln. $Agricultural sector and foodindustries
7
Manufacturing industry
8,2 mln. $ woodworking
54,0 mln. $metallurgy
107,5 mln. $machine-building
266,3 mln. $petroleum refining
7,2%The content of manufacturing industry in GRP
Labour efficiency in the manufacturing industry33 000 $/pers. 3%
51,1 mln. $Building industry
The structure of the manufacturing industry
75 Ktons of meat
220 Ktons of milk
130 million eggs
8
Agro-industrial sector
550 K ha of cultivated lands
230 Ktons of grain
2 K tons of wool
1280 K ha pastures
4%The CONTENT of agriculture in
GRP
Main areas- cattle breeding- plant cultivation - fishery- agricultural processing
Reckoned by head- cattle – 457,4 K- horses – 115,0 K- small cattle – 986,0 K- camels – 3,0 K- pigs – 27,8 K- poultry – 1 038,0 K
4 complexhouse building factories
240 K. tonsproduction of building materials per year
50 000 sq. m. construction of residential areas in year
9
Building industry
20 types of Wide-spread minerals
119 depositsexplored
37depositsAre produced
2 mln. cub. m.volume of production per year
The share of the construction industry in the GRP
Main directions - production of concrete products
- manufacture of artificial gravel
- production of large-panel concrete structures
- construction of houses according to modern technologies
- production of construction materials
Perspectives of development- development of deposits of cement raw materials- development of deposits of the flask- development of deposits of gypsum- development of deposits of expanded clay and silicate
materials- development of deposits of sand and CBC
0,5%
The CONTENT of the con-struction industry in the GRP
5 K. tonsannual production capacity of cast iron valves and close fitting valve for the oil and gas sector
3 K. unitsannual production capacity of equipment for the transport and heating oil, gas compressor and gas turbine stations
10
Machine Building
5 plantsmachine building, repair and shipbuilding
2 sea shipsannual production capacity ships with a displacement of 500 tons.
500 special vehicleannual production capacity of fire, special and agricultural machinery
10 K. unitsannual production capacity of oil transformers with capacity of up to 2.5 MW/A
1%
The CONTENT of the Machine Building in the GRP
Perspectives of development- production of turbine and oil transfer equipment- production of agricultural machines and components- production of industrial electrical equipment- production of special equipment for city services- manufacture of ships with displacement up to 1000 tons
Branch- jobs – 3,5 k. people- the volume of production – 107,5 million US$- growth rate – 7,5%- Content of Kazakhstan raw materials – 85%
Developing traditional
priority sector of the regional
economy Ramping up production in
manufacturing industry
Developing international
and interregional cooperation
Improving ecological situation of the region through rational nature
management practises
Creating favorable
conditions for development
and increasing competitivene
ss
Meeting the region’s
demands in agricultural
products Machine Building Transport and
Logistics Tourism Construction Agriculture
Key directions
11
West Kazakhstan region was determined by the status of national
oil and gas engineering cluster.Considering regional peculiarities and specialization of the region, the main
priority areas were determined:
Decree of the President of the Republic of Kazakhstan dated August 1, 2014 No.874«On approval of the State program of industrial and innovation development of
Kazakhstan for 2015-2019»
12
Why is it advantageous to invest to West Kazakhstan region?
Programs of state support of business1
Investment preferences2
Advantageous geographic location3
Low rates4
Service support for the investors5
Organization of industry ready sites with the necessary infrastructure in the industrial zone7
Implementation of joint projects with JSC «NC «SEC «Oral» projects on the basis of public-private partnerships6
13
Information about the preferences and benefits for investors
General information about investments is on the website of the Ministry of Investment and Development of the Republic of Kazakhstan – mid.gov.kz
1
The information about investment opportunities and preferences is on the website of JSC «KAZNEX INVEST» – www.kaznexinvest.kz
2
Information about legal protection and the law is on the website of IRS «Adilet» – adilet.zan.kz3
Support and maintenance of investors on the websiteJSC «NC «SEC «Oral» – www.spk-oral.kz4
14
The advantageous location and potential of the regionThe advantageous location of the region in the area of free logistics of turnover (up to 500 km)
Atyrau
Samara
SaratovAstana
Uralsk
Ufa
VolgogradWest Kazakhstan region
R U S S I A
Aktobe
Moscow
Orenburg
Astrakhan
K A Z A K H S T A N
Minsk
Kiev
Code decoding: Kazakhstan's largest cities with a developed industry and logistics Large cities of the Russian Federation with the developed logistics industry
Free territory of logistics
Roads of Western Europe - Western China and other areas of the transport corridor between Europe and Asia
The population within a radius of logistics - 15 mln
Kazan
15
Low tariffs
Power supply:• rate for supply: 0.08 USD for 1 kW for 2015 including VAT (12%)• rate for transportation: 0.01. USD for 1 kW for 2015 including VAT (12%)Total costs: 0.09 USD for 1 kW of consumed electricity, including VAT
Water supply:• the quota for the water intake from the open water sources up till 2 million cubic
meters. • rate for supply of running water 1.25 USD for 1 cubic meter in 2015, including
VAT (12%)
Gas supply:• rate for supply and transportation 0.08 USD for 1 cubic meter in 2015, including
VAT (12%)
Sewerage:• rate for the discharge 1,15 USD for 1 cubic meter in 2015, including VAT (12%)
Emission:• rate for environmental emission 3,70 USD for 1 ton of СО2 emission in 2015
16
Suggestions to invest to West Kazakhstan
Chemical industryfinancing the construction of a chemical plant in West Kazakhstan region
Location: The Republic of Kazakhstan, Aktau
Initiator of the project : «Topan» LLP was founded in 1999 and operates in Uralsk, West Kazakhstan The current number of employees – 208
The main activity – production of chemicals, liquefied gases, oxygen and inert gasesProject cost ≈ 76 mln. $
Project implementation period – from 2016 till 2018
The mechanism of implementation – financing the construction, purchase of equipment and raw materials jointly with the company «Chemical industries» (Singapore)
The purpose of the project –creation of export-oriented production and providing oil and gas industry with chemicals reagentsPayback period of the project – 7 yearsProduction capacity: Phase 1 – volume of financing 65 million $:- sodium hydroxide in the solid form - 40 000 tons / year- hydrochloric acid – 30 000 tons / year- sodium hypochlorite – 6400 tons / yearPhase 2 – volume of financing of 11 million $:- caustic soda in solid form – 80 thousand tons / year- hydrochloric acid – 30 000 t / year- chlorine – 34,000 tons / year - sodium hypochlorite – 6 400 t / year
Implementation period: 30 months
The required land area of 4 hectares
Planned revenue – 27 million. $
Profitability – 20%
New jobs – 200 people
Partners of the project
17
Suggestions to invest to West Kazakhstan
The gas turbine power plantFunding for the second phase of construction of gas turbine power plant of 350 MW in an area Beles v., WKR
Location: Republic of Kazakhstan, West Kazakhstan region, Zelenovskiy district, Beles village
Initiator of the project – «Batys Power» LLP founded in 2011
The current number of employees – 75
The main activity – construction, operation and management of gas turbine power plant, supply and export of electric power
Project cost ≈ 400 mln. $
Project implementation period – from 2014 till 2018
Implementation Mechanism – financing the 2nd phase of construction of 200 gas turbine power plant, purchase and installation of the second turbine of 100 MW capacity, waste heat recovery boilers and steam turbine of 150 MW capacity.
The purpose of the project –creation of the production of electric power of reduced price and supply of electric power the region's population, increasing gas turbine power plant capacity up till 350 MW Payback period of the project – 8 years
Production capacity: Phase 1 – invested 92 million $:- construction of gas turbine power plant site area of 4 hectares of land;- installation of the first gas turbine plant with capacity of 100 MW;- commissioning and electric power production for West Kazakhstan;- site preparation for the second phase of the project - Phase 2 – required financing 308 million $:- purchase and transportation of gas turbine and steam unit recovery boilers and gas turbine power plant components;- equipment installation and commissioning;- connection to the substation of JSC «KEGOK», international, internal republic and
intra-regional power systems to transport electric power to West Kazakhstan, Atyrau region and to Russian Federation;
- - Production and supply of electric power of 100 MW capacity to West Kazakhstan, 100 MW to Atyrau region, and 150 MW for export to Russian Federation
Planned income - 260 million $
Profitability - 22%
New workplaces - 100
18
Suggestions to invest to West Kazakhstan
Industrial zonefinancing construction of infrastructure of the industrial zone in West Kazakhstan, area 300 hectares
Project cost ≈ 42 mln. $
Project implementation period– from 2017 till 2018
The implementation mechanism – public-private partnership , –project implementation jointly with JSC "NC" SEC
"Oral" – financing construction and assembly works for
external and internal infrastructure the territory of the industrial zone
of area 300 hectares,
– joint using the industrial zone, – state support in the form of tax preferences
Purpose: To involve domestic and foreign investors to promote accelerated development of private entrepreneurship in the industry, the development of production of competitive, import-substituting products
Payback period of the project – 8 years
The requirements for the project: - the location of the industrial zone in the area of Terektinskiy district,
Poyma village, West Kazakhstan - land area of the industrial zone not less than 300 hectare- To stipulate increasing of area of the industrial zone up till 900 hectare- construction of inside engineering networks in mine-channel tunnel- the division of the territory of the industrial zone into15 sectors by 10-20
hectare by types of placed industry Workplaces – 5000
WKO, Terektinsky district, Poyma v. area 300 hа
Participants of the projectInitiator of the project:
Akimat (Government) ofWest Kazakhstan region, Republic of Kazakhstan
The operator of the industrial zone
JSC « NC «SEC "Oral»
Partner Project Creation and ManagementThe company «Akgun Group» Turkey
19
Suggestions to invest to West Kazakhstan
Airport of Uralsk cityReconstruction of terminal of the airport to modern international terminal
Project cost ≈ 7 mln. $
Project implementation period – from April 2016 till October 2017
Implementation mechanism – public-private partnership – redemption of the reconstructed object by the state,
– state support and preferences
Payback period of the project – 2 years
The requirements for the project: - terminal building for 1 200 people- hotel for 50 rooms- restaurant for 200 seats- parking for 200 vehicles - 5 seats passenger terminal of throughput 400 people per hour - cargo terminal of throughput 300 tons per day
Workplaces – 60
Railwayconstruction of railway of new direction of 520 km length between the cities Uralsk-Atyrau
Project cost ≈ 200 mln. $
Project implementation period – from 2016 till 2019
Implementation mechanism – public-private partnership , – a joint project with JSC «NC «KTZh»,
– providing with land for construction of road, – joint road usage
Payback period of the project – 5 years
The requirements for the project: - construction of 2 parallel railway beds- the base of the road – concrete sleepers- route construction – without the need to build railway bridges across the river- construction of 2 stations in Chapaevo v. of WKR and in Inder v. of Atyrau region- the construction of the stationary and sidings ways- connection to the existing international road of railway lines
Workplaces – 400 people
Uralsk
Atyrau
20
Suggestions to invest to West Kazakhstan
ТLCconstruction of transport and logistics center in the industrial zone of West Kazakhstan
Project cost ≈ 6 mln. $
Project implementation period – from 2017 till 2018
Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for
the construction up till 20 ha in the industrial zone of West Kazakhstan
Payback period of the project – 5 years
The requirements for the project: - using construction materials of the Kazakhstan production at least for 50%- connection to highways and railways- provision of transport logistics to the products produced in industrial zone of West
Kazakhstan - TLC warehouse area of 10 000 square meters and a storage capacity of 50 000 tons- TLC throughput capacity of 1200 tons per hour
Workplaces – 200 peopleConsumer electronicsconstruction of electric appliances factory in the industrial zone
Project cost ≈ 50 mln. $
Project implementation period – from 2017 till 2019
Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with a prepared infrastructure for
the construction of up to 10 ha in the industrial zone of West Kazakhstan
Payback period of the project – 5 years
The requirements for the project: - organization of world brands consumer electronic
appliances production- organization of export supplies of manufactured products- employment 80% of the workplaces by Kazakhstan
employees
Workplaces – 1 500
21
Suggestions to invest to West Kazakhstan
Hotelthe construction of a hotel in the Uralsk city, West Kazakhstan
Project cost ≈ 7 mln. $
Project implementation period – from 2016 till 2017
Implementation mechanism – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for
construction in Uralsk city, – state support and investment preferences
Payback period of the project – 6 years
The requirements for the project: - using construction materials of the Kazakhstan production at least for 50%- 5 star comfort class - quantity of rooms 200- availability of restaurant, business center of "A" class, parking, swimming pool,
fitness hall, sauna and playgrounds
Workplaces – 30
Solar power plantconstruction of a solar power plant of 150 MW in the area of the industrial zone of West Kazakhstan
Project cost ≈ 12,5 mln. $
Project implementation period – from 2016 till 2018
Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land for the construction of up to 100
ha near the industrial zone of West Kazakhstan, – joint exploitation of SPP,
– state buys electric power at a high price
Payback period of the project – 5 years
The requirements for the project: - construction materials at least 70% of the Kazakhstan production- connection to the grid of «ZapKazREK» and JSC «KEGOK»- provision of electricity to the industrial zone of WKR - provide for an increase in the area to 200 hectares, and the power station to 300
MW
Workplaces – 50 people
THANK YOU FOR YOUR ATTENTION!
Contact Information:
09000, Republic of Kazakhstan, West Kazakhstan region
Uralsk, Dostyk - Druzhba avenue, 206/1
tel: 8 (7112) -505-947
Fax: 8 (7112) -506-628 E-mail: [email protected]
Web: www.spk-oral.kz