STATE PROGRAM

for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Ministry of Industry and New Technologies of the Republic of Kazakhstan

KEY PERFORMANCE INDICATORS

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

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.

PRIORITY SECTORS OF THE ECONOMY

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Traditional

Mining and Metallurgical Complex Atomic industry Chemical industry Petrochemicals Machinery Construction industry Pharmaceuticals Agro-industrial complex Light industry FES Ontustik Tourism - FES Burabai Information and Communication Technology Biotechnology Alternative Energy
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Based on domestic demand

Export-oriented

Sectors of the future economy

PROGRAMS OF MULTIPLE SUPPORT

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

BUSINESS ROAD MAP 2020: Development of small and medium enterprises

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

Grants for exporters; Trade finance and export insurance; Export support services.

EXPORT 2020: Promotion of domestic companies on foreign markets

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 attraction Exemption from customs duties; State natural grants; Tax incentives in FEZ; Measures from BUSINESS ROAD MAP 2020

ATTRACTING FDI: ONE-STOP SHOP SERVICES

Information on investment opportunities and business conditions Information on investment projects

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Rendering assistance in a choice of projects and partners

Rendering assistance in reception of measures for state support

JSC National agency for exports and investment KAZNEX INVESTprovides ONESTOP SHOP services

Organization of meetings with official representatives

Assistance in making decisions on administrative questions

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MINING POLICY

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Mining policy principles:

Promotion of the use of technology for the production

Resource support for SPAIID projects

Transition to high value added production

Enhancement of contractual obligations monitoring

Total 5004 deposits Groundwater - 1285/1028 Hydrocarbon raw - 259 Solid Minerals - 839 Widespread minerals - 2624

DEVELOPMENT OF LOCAL CONTENT

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

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

Entrepreneur

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

Competitive advantages Prioritized procurement; Use of conditional discounts; Minimum long-term public order

MINING AND SMELTING COMPLEX

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Niche projects:
Non-ferrous metallurgy Alumina 1500 thou. Tons.; Primary Aluminum 250 thou.tons.; Copper 578 thou. Tons.; Zinc 36 thou.tons.; Ferrous metallurgy Steel 6000thou. Tons.; Ferrochrome and Ferrosilicochrome 440 thou.tons.; Granular iron 500 thou.tons.; Briquetted iron 2800 thou.tons.; Waste dumps recycling Industrial waste 20 billion tons.; Non-ferrous metallurgy 10.1 billion tons.; Ferrous metallurgy 8.7 billion tons.

MSC market - $ 15,5 bill

38%

5,6 9,9
62%
Own production Import

CHEMICAL INDUSTRY

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Niche projects:
Basic inorganic chemistry Potash 400 thou. Tons; Soda 350 thou.tons.; Sodium cyanide 100 thou.tons.;

Chemical industry market - $ 3.5 bill.

1,1 2,4

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

Own production

Import

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.;

MACHINERY INDUSTRY

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Segments of machinery industry

Machinery industry market - $ 16 bill.

Volume of import ($) 4,128 bill. 2,736 bill.

1. 2.

Transport machinery Electircal machinery

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3.
4.

Oil and gas machinery

Agricultural machinery Total

1,695 bill.
1,2 bill. 10 bill.

Own production

Import

Share of machinery industry in the structure of total imports of the country 41%
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ALTERNATIVE POWER (Renewable energy sources)

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

35 MBT 40 MBT 10 MBT

Kazakhstan
40 MBT

24 MBT
89,65 MBT 6 MBT

40 MBT 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 40 MBT 10 MBT Small HES 1. Yssyk river 2. Baskan river 3. Koksy river 4. Shelek river 5. Lepsy river 6. Keles river 20 MBT 51 MBT

50 MBT

SPS 1. c. Almaty

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INDUSTRIAL INFRASTRUCTURE

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Qostanay

SEZ Burabay
Pavlodar

SEZ Astana new city

Oral

Astana
Qaraghandy Semey

SEZ Petrochemical park

Atyrau

Kazakhstan
Qyzylorda

Oskemen

SEZ IT park
Shumkent Taraz

Aktau

Almaty

SEZ Sea port Aqtau

SEZ Ontustik

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MEASURES OF RENEWABLE ENERGY DEVELOPMENT SUPPORT

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

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

Transfer of energy
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

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

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CUSTOMS UNION: KAZAKHSTAN, RUSSIA, BELARUS

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

Advantages for potential investors:

Russia

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

Investment incentives: - Exemption from customs duties on imports of production equipment and raw materials in Kazakhstan for the implementation of investment projects. - In Kazakhstan mo re liberal taxation, compared with Russia and Belarus to open and maintain business.

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ICBC Khorgos: Western Europe - Western China

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

ICBC Khorgos
Russia

Europe

Kazakhstan China

West Europe West China 8 445 (10 days)

Sea route 24 000 (24 days)
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CONCLUSION

STATE PROGRAM for Accelerated Industrial-Innovative Development of the Republic of Kazakhstan

In general, for implementation of program of forced industrial-innovative development necessary to attract investment totaling over $ 60 billion; For current time, more than 300 projects identified sources of funding in 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 by 2011 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, railway transportation); in conclusion we should note that with relatively low wages, we have highly educated and skilled workforce.

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Thank you for attention!

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