Investment attraction, large-scale construction and international recognition — how the main city of Kazakhstan developed
This year, the capital of Kazakhstan celebrates its 22nd birthday.
This year, the capital of Kazakhstan celebrates its 22nd birthday. During this time, tremendous work has been done in all directions. Today, the country's administrative and business center is located in Nur-Sultan, large-scale economic, scientific, technical and social problems are solved here, major projects are implemented, tens of thousands of jobs are created. From 1998 to 2019, the volume of investments attracted to the capital grew 47 times.
Role of the First President - Elbasy Nursultan Nazarbayev in the formation of the new capital of Kazakhstan
In the history of independent Kazakhstan, Astana and the name of the First President - Elbasy Nursultan Nazarbayev, are inextricably linked. It was he who made the historic decision to transfer the capital to the center of the country. The role of Nursultan Nazarbayev in the formation and development of the city as the capital of a young state is difficult to overestimate. In record time, for two decades, on the banks of the river Esil arose a city whose name today is known throughout the world.
Nursultan Nazarbayev raised the question of transferring the capital of Kazakhstan in July 1994 at a meeting of the Supreme Council of the Republic. The result of the meeting was the Resolution of the Supreme Council of the Republic of Kazakhstan dated July 6, 1994, "On the Transfer of the Capital of the Republic of Kazakhstan," which instructed the Cabinet of Ministers to develop a feasibility study by the end of 1994.
This decision was not easy — the First President of the Republic of Kazakhstan repeatedly emphasized in his memoirs. For four years, until the presentation of the new capital, he had to defend his position. The height of the socio-economic crisis, the lack of budgetary funds made us think about the consequences a costly event that could complicate the already difficult situation of the Republic.
Nursultan Nazarbayev had to overcome the conservative thinking of a certain part of the country's political elite. The president convinced his opponents that "the irrevocable costs of transferring the capital were only the costs of moving. Everything else is capital investment, it is investment in the future."
The rapid development of the former regional center begins in 1997: the population of the city started to grow rapidly, the large-scale construction starts.
The name of the city did not come immediately. In the book "In the Heart of Eurasia," Nursultan Nazarbayev wrote ‘’To be honest, I have been thinking tirelessly about renaming the capital. So once, once at night, about 2 a.m. at night it hit me — Astana! The capital is the capital! It sounds very beautiful in Kazakh. Catchy, bright, sonorous. It sounds as good in Russian and English."
On May 6, 1998, a Presidential Decree was signed on renaming the capital from Akmola to Astana. And on May 20, 1998, the Law of the Republic of Kazakhstan "On the status of the capital of the Republic of Kazakhstan" was adopted.
And soon, on June 10, the day of the international presentation, Astana appeared before the world community in all its glory.
In August 1999, the draft master plan of the new capital was presented, according to which the city will begin to develop on the left bank of the Esil river. The same year, Astana, by decision of UNESCO, received the title of "City of Peace." Since 2000, the main city of Kazakhstan has been a member of the International Assembly of Capitals and Large Cities.
The year 2000 was remembered for the extensive development of the Left Bank, where the construction of the new administrative center began. And this year, the young capital of the republic declared itself as the most important link in the integration of the post-Soviet space. In October, at a meeting of the Interstate Council of Heads of State of the Customs Union on the initiative of Nursultan Nazarbayev, a new international organization was established — the Eurasian Economic Community.
Investments in the economy of the new capital reached $1 billion by 2001. The inflow of domestic investment has more than tripled, while foreign investment has grown sevenfold. In the spring of 2001, the President approved the State Program "The Heyday of Astana — the Heyday of Kazakhstan." Its most important component was not only the development of the main city of the country, but also the increase in production volumes in the industrial and construction sectors of the whole republic — due to the multiplier effect and the expansion of interregional integration ties.
A world-wide event was the arrival in Astana of Pope John Paul II. About 300 thousand Catholics from many countries of the world arrived to meet with him in Kazakhstan.
On the eve of the celebration of Constitution Day, Aug. 30, 2002, the opening of the Baiterek monument took place. The idea of ??creating this unique structure belongs to Nursultan Nazarbayev. Subsequently, the monument will become the main attraction of the Kazakh capital.
The prominence of the young capital grew from year to year. Being the main project of Elbasy, the young Kazakh capital quickly and confidently made itself known in the world’s political arena in a short time and became the venue for major international political forums. In 2003, under the chairmanship of Nursultan Nazarbayev, the first congress of leaders of world and traditional religions was held. Seventeen delegations of various religious faiths of the world took part in its work.
A highlight was the tenth summit of the Shanghai Cooperation Organization, at which the presidents of China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, as well as the heads of delegations of observer countries discussed current issues of global and regional security.
In 2006, the second congress of leaders of world and traditional religions was held. Especially for this event, the Palace of Peace and Concord was built by the famous architect Norman Foster.
In 2008, Astana changed its heraldry. The ears of the old coat of arms were replaced by the symbol of the city — Baiterek. The author of the concept of the new coat of arms of the city was Nursultan Nazarbayev. Another symbol of the new state was the monument "Kazakh Elі.’’ For the first time in the history of the Kazakh people, a monument appeared in their honor.
The construction of Astana has become a powerful locomotive for Kazakhstan's urban development. The capital becomes a center of science, medicine, and education. The flagship institution of higher education in Kazakhstan, Nazarbayev University, has opened. A medical cluster has been created in which unique operations are carried out, including organ transplants.
The city is becoming more beautiful every day. Its appearance is changing, the most beautiful buildings, squares, parks are appearing. The green belt of Astana is expanding — a unique man-made forest planted in the steppe.
The idea of ??building the most popular buildings in Astana, such as Baiterek, Khan Shatyr, Astana Opera, the Khazret Sultan Mosque was put forward by Nazarbayev himself. The capital has become the center of Eurasia, where international collegial meetings are held, historical decisions are made. The historic OSCE summit was held here, where 56 states took part, on an ongoing basis there are congresses of leaders of world and traditional religions, and the Astana Economic Forum. All this is the result of the authority and limitless work of Nursultan Nazarbayev at the world level.
It is worth noting that all regions and cities of Kazakhstan took part in the construction of the capital, which strengthened the cohesion of the multinational people and strengthened confidence in a brighter future.
Today, 11% of the country's gross domestic product is produced in the capital, which also provides 10% of all investments in the country's economy, that is, the capital has become a competitive industrial center, where the country's large enterprises are concentrated. Thanks to the construction of the capital, new industries appeared in many regions of the country. Thus, new jobs were created, the service sector is developing. In addition, the investment attractiveness of the capital also makes a significant contribution to the growth of the economy of Kazakhstan.
In addition, the capital of Kazakhstan has become a platform for peace talks on Syria. Astana, as a place for meetings and important negotiations, arranged for all participants in the Syrian process. This is a convincing demonstration of high authority and trust in the country's leader.
In 2017, the International Specialized Exhibition Expo-2017 was held, which gave a positive impact both for the city's economy and for the economies of the regions of Kazakhstan.
Today, the Astana International Financial Center, which in the future should become one of the leading financial centers of Asia, is actively operating in the territory of Expo-2017.
March 23, 2019, Astana was renamed to Nur-Sultan.
Annually, 20 thousand jobs are created in the capital
Over the past 22 years, the gross regional product of the city has grown more than 272 times, from 25.7 million tenge to 7 trillion tenge. Since 1997, industrial production has increased 50 times, from 15.2 to 755 billion tenge.
The commissioning of new industries in the real sector and social facilities contributes to the creation of more than 20 thousand new jobs annually, including about 70% in small and medium-sized businesses.
For example, only in 2019 the data on created 26,699 new jobs in various sectors of the economy were updated (in 2003 — 12,552, 2013 — 17,787, 2018 — 22,237).
This had a positive effect on the welfare of residents. So, over 22 years, the average monthly nominal wage increased by more than 27 times, reaching 267 thousand tenge. The unemployment rate decreased by 2.8 times and today stands at 4.4% against 13% in 1998.
A solid driver of economic development has become small and medium-sized businesses. More than 57% of GRP is formed here. Subjects of small and medium-sized enterprises of the city produce 20% of all work and services of this sector in the country. The volume of output by SMEs increased by 33 times from 177.8 billion tenge in 2005 to 5.9 trillion tenge in 2019.
Today in the capital there are more than 134 thousand business entities. Every third resident of the capital works in the field of small and medium-sized businesses. If earlier Nur-Sultan was a city of public servants, now it is a city of entrepreneurs.
The population of the capital increased 3.8 times from 300.5 thousand people in 1997 to 1,149.9 thousand people in 2020, including due to a natural increase of 263.1 thousand people, a migration increase of 586 , 3 thousand people. It is estimated that the population of the city will reach 2 million people in 2030, and 3 million people in 2050.
Today, more than 1.1 million people live in the city, or 6% of the republic’s population, while the population compared with 1997 has increased by more than 3.8 times (300 thousand people in 1997).
Over 22 years, the volume of investments attracted to Nur-Sultan grew by 47 times
The constant attention and care of Elbasy and the Head of State about the development of the capital turned Nur-Sultan into a dynamically developing metropolis.
Since 1997, about 10 trillion tenge of investments have been allocated to the city’s economy. The annual volumes of attracted investments steadily increased from 19.3 billion tenge in 1997 to 913 billion tenge in 2019. The volume of investments grew 47 times from 19.3 billion tenge. in 1997 to 914 billion tenge in 2019. Extrabudgetary investment growth amounted to about 85%.
Revenues to the state budget increased 94 times from 13.6 billion tenge in 1998 to 1,280.4 billion tenge in 2019. State investments in the city were returned to the treasury more than 3 times. The capital became a donor of the republican budget. To date, the city of Nur Sultan has replenished the country's treasury by more than 7 trillion tenge.
For January-May 2020, there has been a positive trend in investment in fixed assets. In general, systematic work is underway to attract investors and implement investment projects. At present, about 200 projects worth 2.8 trillion tenge are being implemented.
In addition, new high-tech industries have been created in the city that have no analogues in the country, including with foreign participation (factories for the production of passenger cars "Tulpar", electric locomotives LLP "Electric locomotive kurastyru zauyty", refinery Tau-Ken Altyn LLP, electron-optical devices Kazakhstan ASELSAN Engineering LLP, military and civilian equipment Kazakhstan Paramount LLP Engineering ", modems and switches of" Digital System Servis "LLP, house-building plant of" GLB "LLP, etc.).
From 1997 to 2018, more than 24 million square meters of housing commissioned in the capital
Nur-Sultan is still a leader in the construction sector, over 24 million sq.m. were commissioned by enterprises in this sector from 1997 to 2018.
In the period from 1998 to May, 2020, 1,290 houses with a total area of 24,930 thousand m2, 1,589 social facilities with a total area of 10,802, 931 thousand m2 were put into operation at the expense of private and state sources of financing.
Housing stock has grown 5 times. The area of the city increased by 500 square kilometers.
Since the transfer of the capital, 21 pedestrian and road bridges have been built.
Since 1997, according to the Decrees of the President of the Republic of Kazakhstan, the boundaries of the capital city have changed three times. Currently, the territory of Nur-Sultan is 79,733 ha.
Transport system of capital consists of over 1.1 thousand streets
Since the transfer of the capital, the total length of roads has increased from 494 km to 852.8 km. 21 pedestrian and road bridges, 9 overpasses, 9 underground and 4 above-ground pedestrian crossings were built. Today, the city’s transport system consists of 1,110 streets with a total length of 852.8 km, including 83.5% of roads with asphalt concrete pavement and 16.5% of roads without hard surface.
In order to relieve traffic tension, the construction of the Small Ring Road with a total length of 46 km is underway, which will allow more than 90 thousand cars a day to bypass the administrative center of the city, which will significantly reduce traffic on the main avenues of the city.
In addition, last year a gas pipeline with a length of 1 thousand km was carried to the capital. Currently, work is underway on gas distribution networks within the city, especially in the private sector. This year it is planned to bring gas distribution networks to 8 thousand private houses.
On the eve of the Day of the Capital, the first social facilities and houses were provided with gas. For residents of the city, akimat provides meters for free. Citizens will need to prepare stoves for connection to gas distribution networks. Gas supply to the industrial sector and housing estates will be held in 3 stages. Implementation period — 2020-2023. Gas supply of the capital will reduce harmful emissions into the city by 6 times, solids — 40 thousand tons.
Higher educational institutions of the capital
The capital of Kazakhstan has become a center of attraction for applicants from all over the country. The flagships of national education are located here: Nazarbayev University, L.N. Gumilyov Eurasian National University, Kazakh National University of Arts, Kazakh Agrotechnical University named after S. Seifullin, Kazakhstan branch of Lomonosov Moscow State University, Medical University of Astana and others.
There are 16 universities in the capital, 3 of them are national, 11 are private, a branch of a foreign university and an autonomous organization of education. Each institution has achievements in terms of important educational indicators.
According to the annual results of the international authoritative ranking of universities around the world, QS World University Rankings, Eurasian National University, having shown growth by 61 positions, rightfully took 357 place among the 1002 best foreign universities.
Due to the increase of recognition and strengthening of the international image, the Eurasian National University has shown the highest result in the field of development of academic reputation.
According to the results of the "National Rating of Demand for Higher Education in the Republic of Kazakhstan - 2020," published May 15, 2020, by the Independent Agency for Accreditation and Rating, the Eurasian National University was recognized as the leader, showing the best indicator of 152,943 points.
Kazakh Agro Technical University named after S. Seifullin strives to become a research university of the international level in the field of agriculture and related industries. According to the "General rating of universities of the Republic of Kazakhstan 2020" took 2nd place. In 2019, the Top 20 universities of Kazakhstan entered the 3rd place in the "National Rating of Demand for Higher Education in the Republic of Kazakhstan - 2019".
University KAZGUU named after M.S. Narikbayev joined the Top 3 universities in the ranking of educational programs in 2019 according to the study of the Atameken National Chamber of Entrepreneurs. The rating was carried out according to 17 criteria, among which: the percentage of employed graduates and their average salary, the duration of job search after graduation, as well as an assessment of the relevance of the programs.
KAZGUU University annually invests in the professional development of its employees, innovative educational technologies and infrastructure. The educational process takes place using LMS Canvas, Turnitin (anti-plagiarism), Bloomberg, Thomson Reuters and Proctorio, which are used by leading universities in the world.
Nazarbayev University is a university that has become an alma mater for its nearly 5,000 graduates, of whom more than 95% studied on state grants. Over the years, the university has expanded, opened up new programs and projects, showing that education, science and innovation can and should develop together. Nazarbayev University strives to become an internationally recognized research university, the main principle of which is the integration of education, science and innovation.
To its anniversary, NU has made many accmplishments: graduates have shown themselves to be highly qualified specialists in Kazakhstan and international companies or have continued their studies winning scholarships at world universities; The innovative developments of our students were implemented and received the support of investors; research projects of university scientists have been published in more than 2,500 articles of authoritative journals. International accreditations were also received by the Higher School of Public Policy, the University Preparatory Program and work is underway on obtaining accreditation for the Higher School of Business.
NU has consistently continued its mission to be the flagship of Kazakhstan's higher education. Nazarbayev University is actively introducing artificial intelligence in the development of new products and services.
Nazarbayev University for 10 years has released 6 streams of students, the last of which recently received their diplomas in a virtual format, unusual for graduation ceremonies. Among the graduates, it is possible to proudly note the main areas of their activity: the development of an entrepreneurial culture on the example of successful projects of students such as ReLive, Mama Pro, Aquapoint, etc .; work in Silicon Valley, global IT giants, international and state organizations; as well as continuing studies at leading universities in the world on master's and doctoral programs.
It is worth noting that the NS-16 project is being implemented in the city, in which special logos for the NS-16 platform are developed (NS — Nur-Sultan, 16 — number of universities). This project unites the leaders of 16 universities of Nur-Sultan in order to attract them to social and political work. Using this platform, important and correct information for students is effectively delivered through horizontal communication through leaders, chairs of youth affairs committees, and youth policy centers. Within the framework of this platform, socially significant projects in the field of youth policy are being implemented.
Number of foreign tourists in the capital of Kazakhstan increased by 13%
The number of tourists in 2019 amounted to 871,851 thousand people, including the number of non-residents — 236,280 people, residents — 635,571 people. In 2019, the number of foreign tourists increased by 13% compared to 2018.
Currently, 229 hotels with 15 thousand beds are operating in the territory of the city of Nur-Sultan. 49 hostels with 1,908 beds operate.
The volume of services provided by the placements in 2019 amounted to 32.5 billion tenge (25.7 billion in 2018).
As noted in the capital’s akimat, the global pandemic has shown that more attention needs to be paid to domestic tourism.
So, in the zone of the "green belt" work is underway to reconstruct the road-path network. On the territory for active spending time, skateboarding and roller-skating platforms (in winter on skates) will be equipped, we will establish tennis, football courts, and children's play areas.
To attract tourists, the Flying Theater project is being implemented. The flying theater is a fascinating attraction in which visitors move with the help of a complex mechanism in the dome illuminated by an integrated audiovisual system. The key elements of this type of attraction are the ride system with a wide variety of possible seat configurations, several integrated special effects such as wind and water, a concave screen with a semicircular dome, a sophisticated projection system, and audio support.
Today in the capital there are 66 cultural institutions, including 7 palaces (concert halls), 5 museums, 8 theaters, 20 libraries, 8 cinemas, 4 private art galleries, 3 concert organizations, 1 circus, etc.
For reference: For 2015-2019, modern cultural and sports objects appeared in the capital — Barys Arena MLD, Astana-Ballet Theater, Amphitheater on the banks of the Esil River, Nur Alem sphere, Congress Center, Energy Hall, TSE Gallery Art Destination, Jekpe-Jek Martial Arts Palace.
Measures are also being taken to ensure the preservation of historical and cultural heritage.
For reference: Repair and restoration work was carried out on historical and cultural monuments: the Triumphal Arch "Mangilik El", the Monument "Baiterek", the building of the Russian Academic Drama Theater of Drama named after Gorky, landscaping works at the Ethno-memorial complex Atameken Map of Kazakhstan.
All objects are currently ready for the tourist season. Currently, the facilities are not functioning due to the COVID-19 pandemic, but are ready to open in compliance with sanitary standards.
After the pandemic is over, work will continue on activities of various formats and sizes.
For reference: World Championships in Hockey, Greco-Roman and Freestyle Wrestling, Kyokushinkai Karate, Triathlon World Cup and Ironman 70.3, KAZENERGY Eurasian Forum, Digital Bridge Forum, Smart City Expo World Congress, InvestPro Business Conference, MachExpo Kazakhstan 2020, AgriTek Nur-Sultan 2020, TravelExpo Nur-Sultan, etc.
Source: primeminister.kz
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Roman Sklyar, First Deputy Prime Minister of Kazakhstan, meets with Anton Alikhanov, Minister of Industry and Trade of Russia
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First Deputy Prime Minister Roman Sklyar held a meeting with Minister of Industry and Trade of the Russian Federation Anton Alikhanov, primeminister.kz reports.
The parties considered topical issues of bilateral cooperation and the implementation of industrial cooperation projects.
Today the total portfolio of bilateral initiatives exceeds $52 billion and includes 168 projects. Over 90 of them have already been successfully implemented, the rest are in the process of implementation.
The parties also discussed a number of other issues in the sphere of industrial development and further mutually beneficial co-operation.
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1.2 thousand passenger cars planned to be purchased by year-end 2029 in Kazakhstan
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Minister of Transport of Kazakhstan Marat Karabayev at the Government session reported on the work being done to develop the railway industry and increase the transit potential of the Republic, primeminister.kz reports.
He noted that Kazakhstan is forming a network of effective transit transcontinental routes. On the territory of the country are 5 major international railway corridors that connect Chinese markets with Europe and Central Asia. Over the past 10 years, the volume of container transit along these corridors has grown almost 5 times. The volume of cargo traffic for 10 months increased by 3.5% to 263,400 thousand tonnes. Domestic traffic grew by 10.8%. The volume of transit freight traffic remained at the level of last year and amounted to 22.4 million tonnes. At the same time, container transit increased by 7.5%.
In order to further develop the industry, the Concept for the Development of the Railway Industry until 2029 was adopted. Within the framework of this document it is planned to work in the following 5 directions: renewal of rolling stock; development of junction points; development of mainline railway networks; improvement of tariff policy; development of passenger traffic.
The Minister added that work is now actively underway to increase the capacity of the TMTM and North-South transit corridors.
Due to the changes in the world of traditional logistics routes, the importance of the North-South corridor is growing day by day. The throughput capacity of the corridor is 10 million tonnes per year. The volume of cargo actually transported this year was 1.8 million tonnes. Given the potential of the corridor, it is planned to increase its capacity to 20 million tonnes," Marat Karabayev said.
For this purpose, as the Minister noted, in July this year the Road Map on synchronous development of the corridor with Iran, Turkmenistan and Russia was signed. In order to attract cargo traffic along this corridor Kazakhstan has provided special tariff discounts of 50% for transit transportations. In addition, work is underway to create a single logistics operator on the eastern route "North-South" similar to the United Transport and Logistics Company (UTLC).
It was noted that in the first 10 months of this year the volume of transportations along the TMTM corridor increased by 68% and amounted to 3.8 million tonnes.
The Minister also said that currently the total number of locomotive fleet is about 1.8 thousand units. The level of wear and tear is 61 per cent.
In order to provide rolling stock and reduce the level of wear of the fleet, 185 locomotives have been purchased this year. Next year it is planned to purchase 187 units, in the next three years it is expected to supply another 257 locomotives. This will completely eliminate their deficit," Marat Karabayev assured.
According to the Ministry of Transport, the total fleet of freight wagons is 139,000 cars. More than 300 private operators work in the market. Of these, Kazakhstan Temir Joly accounts for 38,000 wagons, which are involved in socially important transportations, i.e. in the energy sector of the country and the transport of coal supplied to the population.
Until 2026, the national operator additionally plans to supply 3 thousand gondola cars, of which 800 units have already been put into operation this year.
Special attention is paid to the passenger car fleet. Last year 118 new wagons were purchased, this year - 143 units. Next year it is planned to purchase 226 carriages. By 2029 it is planned to purchase about 1.2 thousand units of passenger cars. This will make it possible to increase the passenger car fleet to over 3 thousand units and reduce the level of wear and tear to 38%. To fulfil these tasks, it is proposed to create a united leasing company with the possibility of providing passenger cars of domestic manufacturers for lease with subsequent purchase," Marat Karabayev reported.
According to the Ministry, today there are 27 railway border points with five neighbouring countries. Of these, Dostyk, Altynkol and Saryagash stations in the directions of China and Central Asia fully use their capacity. To increase their capacity, work is underway to build additional tracks and parks, expand inspection points and terminal facilities. These measures will increase the throughput capacity of Dostyk and Altynkol stations by 2 times.
In addition, in order to further develop the transport and transit potential of the country, work is underway on the construction of 4 railway projects with a total length of 1,300 kilometres. Construction of the second tracks of the Dostyk-Moyinty railway section and the Almaty bypass line continues, and construction of the Darbaza-Maktaaral and Bakhty-Ayagoz railway lines has begun.
Implementation of these projects will increase the throughput capacity of Dostyk station up to 35 million tonnes and reduce the time of cargo transportation through Almaty station, unload Saryagash station, increase the throughput capacity up to 20 million tonnes in the direction of Central Asia and China.
In addition to the implementation of infrastructure projects, work is underway to develop the mainline railway network. By 2029, it is planned to repair 11,000 kilometres of railway sections, of which 2,800 kilometres have been repaired to date. It is also planned to build about 5,000 km of new and second tracks, to introduce autoblocking on 2,600 km, and to modernise 184 stations.
The tariff policy will be further improved for the timely implementation of projects aimed at the development of railway infrastructure. The interests of domestic producers will be fully taken into account.
The head of the Transport Ministry also said that 17.6 million passengers were transported in the first 10 months of 2024, which is 6 per cent more than in the same period last year. It is planned to transport 21 million passengers by the end of this year.
In order to create favourable conditions for transporting the population, modernisation of railway stations is required. Out of 59 main railway stations, 54 stations are in need of repair. To date, the stations in Kyzylorda, Shymkent, Pavlodar and Turkestan have been overhauled. For the rest of the stations the relevant technical documents are being developed, sources and mechanisms of financing are being worked out.
In general, the implementation of these measures will make it possible to increase exports by rail transport to 130 million tonnes by 2029, transit traffic to 45 million tonnes. Exports and imports by road transport are expected to grow by 2 times, transit by 6 times," Marat Karabayev summarised.
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Islamic Development Bank to invest $1.15bn in Kazakhstan's water sector
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The parties signed the relevant agreement at the UN Climate Change Conference (COP29) held in Baku. Deputy Prime Minister and Minister of National Economy Nurlan Baybazarov noted that this is the largest project financed by the Islamic Bank in history, primeminister.kz reports.
In addition, the Islamic Development Bank (IDB) will allocate a grant of $3.5 million for the development of the water sector of Kazakhstan.
The IDB will also participate in the implementation of the project ‘Development of Climate Resilient Water Resources’ developed by the Ministry of Water Resources and Irrigation. Earlier the parties signed the Protocol of negotiations on the first phase of the project.
The first stage of the financed project envisages construction of 4 new and reconstruction of 4 existing reservoirs, reconstruction and overhaul of 115 canals, including the Astana reservoir recharge project. Construction works will take place in Akmola, Almaty, Zhambyl, Kyzylorda, Turkestan, West Kazakhstan regions, Zhetisu region and Astana city.
In addition, the project envisages technical cooperation between IDB and the Ministry in the study of water and river basin problems by the Kazakh Research Institute of Water Management, as well as evaluation of the implementation of early response systems for the Information and Analytical Centre for Water Resources.
This includes plans to technically equip the Republican State Enterprise Kazvodkhoz and build an automation centre to improve water management.
The Head of State has repeatedly emphasised the importance of attracting investment in the water sector. We are facing the task of modernising and adapting water infrastructure to the ongoing climatic changes. Financing by such a reputable institution as the Islamic Development Bank demonstrates the high confidence in our country, the investment policy and the ongoing socio-economic reforms," Nurlan Baibazarov noted.
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Olzhas Bektenov: Business needs to feel confident and able to expand and invest in tomorrow
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Prime Minister Olzhas Bektenov took part in the forum of small and medium-sized businesses, where the issues of current development of entrepreneurship were raised, measures taken to improve state support for domestic producers were noted, as well as ideas for further improvement of the business climate in the country were voiced, primeminister.kz reports.
More than 450 SME representatives from all regions of Kazakhstan took part in the forum. Attention was paid to the development of micro, small and medium-sized enterprises, increasing the share of in-country value, simplification of administrative procedures through digitalisation of services, implementation of investment projects, expansion of export potential of TNA, etc.
Olzhas Bektenov noted that within the framework of implementation of the tasks set by the Head of State in the Address "Fair Kazakhstan: law and order, economic growth, public optimism", the Government carries out comprehensive work to increase business activity and create favourable conditions for doing business.
Thus, in accordance with the introduced principle of regulation ‘from scratch’, since last year more than 10 thousand requirements preventing businesses from developing have been cancelled. Financial assistance measures are being implemented to support priority sectors of small and medium-sized enterprises. Within the framework of subsidies and partial guaranteeing on loans from second-tier banks, the coverage has increased 5 times since 2019 to over 150 thousand projects. At the same time, the amount of subsidies paid to them increased 8 times.
Overall, as a result of the comprehensive measures taken, the share of SMEs in the country's economy has increased to 37 per cent. More than 4 million people are currently employed in business. Over the past six months, SMEs produced 34 trillion tenge worth of products, an increase of about 20% compared to the same period last year.
The President has clearly stated that opening the way for domestic businesses and investors is one of the priority tasks of the Government and all state bodies. Our goal is to create an economy in which business will feel confident and will have the opportunity to realise their ideas, expand and invest in the future. For this purpose, it is important that every entrepreneur can count on open and prompt interaction with government agencies. In the context of global challenges and rapid technological progress, it is necessary not only to develop mechanisms to support entrepreneurs, but also to actively diversify the economy. And here the role of business is paramount," Olzhas Bektenov emphasised.
The effectiveness of support measures on the part of the state was noted on the example of agro-industrial complex. This year concessional lending for spring field and harvesting works has been increased 2.5 times and totalled 580 billion tenge, which allowed to obtain high yields for all types of crops. Prime Minister noted the prospects of achieving similar indicators in the SME sector. In this case, state support should be accompanied by counter obligations of business in the form of providing the domestic market with high-quality and inexpensive products, deep processing, creation of permanent jobs and gradual enlargement with a view to export.
A serious potential for the development of an SME belt around large businesses has been identified. Large enterprises should actively enter into long-term contracts with local companies. This will become an obligatory condition for receiving state support. Relevant instructions have been given to all development institutions.
This year, the Government has taken a number of decisions in terms of priority support for domestic producers. Today, the list of goods purchased by the state procurement in priority order from Kazakhstani commodity producers has been expanded 3 times to 4.5 thousand types. The amount of concluded contracts increased by 31% and amounted to 167 billion tenge. Changes have also been introduced in procurement procedures by large customers (Samruk-Kazyna Fund, subsoil users): this year more than 100 long-term contracts for the amount of 470 billion tenge and more than 260 off-take contracts for 134 billion tenge have been concluded with domestic commodity producers, which is 14 times more than in the same period last year.
Within the framework of the Year of Working Professions announced by the President, special attention is paid to the development of human capital, integration of science and production. Olzhas Bektenov urged businesses to focus on improving human resources, providing an effective base for student internships and employment of graduates through job quotas.
During the forum, the chairman of the Presidium of the Atameken NCE Raimbek Batalov reported on the development of the ecosystem of small and medium-sized businesses in the Republic of Kazakhstan. Social entrepreneur Zhanagul Zhaparova told about participation in the project "One Village - One Product", aimed at the development of the village through the production of the whole chain from raw materials to finished product. The heads of Kazelectromash LLP Vitaly Raspopin and Kubley LLP Zaure Berekesheva shared their experience in mastering high conversion and development of meat processing through the cluster approach.
On the margins of the forum Prime Minister got acquainted with the line of domestic products. Of particular importance for the economy are the projects implemented by Kazakh entrepreneurs throughout the production chain. On the example of the textile industry the Head of the Government was presented a number of enterprises, which are engaged in growing cotton, production of yarns and fabrics, as well as production of finished products, which are in demand both in the country and abroad. In this context Olzhas Bektenov emphasised the importance of the new approach to support projects according to the principle of creating clusters based on the direction of the region. Together with the business community were discussed issues, the solution of which will give an additional impetus to the development of SMEs. The Prime Minister gave a number of instructions to relevant ministries and organisations.
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Olzhas Bektenov meets leading Chinese companies in Shanghai: $2.5bn agreements signed
Images | primeminister.kz
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov as part of a working visit to the People's Republic of China took part in the Kazakh-Chinese investment roundtable with business representatives. In the city of Shanghai will hold talks with the Premier of the State Council of the PRC Li Qiang, scheduled to participate in the VII China International Import Exhibition, primeminister.kz reports.
The main purpose of the working visit is to implement the agreements reached between the President of Kazakhstan Kassym-Jomart Tokayev and the President of the People's Republic of China Xi Jinping on doubling the volume of bilateral trade turnover from the historical record of last year at the level of $41 billion.
The round table was attended by representatives of companies that are leaders in metallurgy, energy, machine building and automotive industry, carbon chemistry, agribusiness, pharmaceuticals and others. The Kazakhstan delegation was represented by the heads of relevant ministries and large domestic enterprises.
Prospects for the development of joint projects in priority sectors of the economy were considered. The participants of the meeting noted that trade and economic partnership between Kazakhstan and China is on the rise. Today about 5 thousand joint ventures are successfully operating in Kazakhstan.
Among the major joint Kazakh-Chinese projects are the construction of a plant for the production of soda ash together with Camc Engineering, the Sastobe chemical complex with Tianjin Cement Industry Design and Research Institute and a plant for the production of explosives with Yunnan Industrial Explosive Group. The construction of the CHANGAN, HAVAL, CHERY automobile production plant with a 90,000-unit capacity based on small-unit assembly is nearing completion. An Investment Agreement for the production of Geely, Exeed, KAIYI passenger cars for $150 million with the creation of 1,000 jobs has also been signed. The projects make it possible to create technological enterprises capable of producing high-quality domestic products. These indicators, according to the business communities of the two countries, confirm the sustainability and productivity of bilateral partnership.
The head of the Government of the Republic of Kazakhstan noted that joint work in this direction continues, and the existing potential of trade relations demonstrates the prospects for further diversification of trade turnover and expansion of investment cooperation.
Today the cooperation between our countries is developing on an upward path. In accordance with the task set at the highest level, we intend to double our mutual trade indicators in the near future. Kazakhstan and China have huge potential for the realisation of joint investment projects. Together we can open new horizons for interaction and increase the effectiveness of cooperation. To this end, we should actively work to expand transit opportunities, strengthen industrial cooperation and build ties between our business communities. The Government of Kazakhstan is ready to expand partnerships and build strong bridges between our nations. We will provide support to investors, creating favourable conditions for business and contributing to the success of each project. I am convinced that thanks to our joint efforts, new investment initiatives will give a powerful impetus to the development of the real sector of the economy, its diversification and improvement of the quality of life of our citizens," Olzhas Bektenov said.
Prime Minister stressed that an important priority for the country is the development of industry and urged Chinese companies to closer partnership with the Kazakhstani business community.
In turn, during the dialogue, representatives of leading Chinese companies showed interest in Kazakhstan as a reliable partner for the implementation of strategic projects.
Executive member of the Board of Directors of China Huadian Corporation Zu Bin in his speech reported on the expansion of cooperation with Kazakhstan in the field of energy, including emissions reduction; acting CEO of CHN Energy Investment Yan Guochun informed about plans to launch the first coal-chemical complex in Kazakhstan; Chairman of the Board of Directors of Beijing Jianlong Heavy Industry Group Zhang Zhixiang about the development of cooperation in the steel industry; Chairman of the Board of Directors of Zijin Mining Group Chen Jinghe reported on plans for the implementation of projects in the region of Kazakhstan.
Vice President of CP Pharmeceutical Group Xie Lei on investment in the creation of a cluster in the field of medicine; General Director of Beiqi Foton Motor Wu Xibin on localisation of production in the automotive industry in the Republic of Korea; Chairman of the Board of Directors of ACRE Engineering Consulting Company Yang Zhuni informed on cooperation in the field of technology transfer; General Director of Sinotruk International Zhao Hua informed on plans to localise production of high-quality automotive trucks in the Republic of Korea.
Chairman of the Board of Directors of Darwin Biotech Co., Ltd. Chen Jianheui shared his intentions to expand cooperation with Kazakh partners in the field of crop production; Chairman of the Board of Fujian Hengwang Investment (metallurgy) Zeng Zhaojiang reported on plans to implement an industrial project in Zhambyl region.
During the visit to the office of SenseTime, the Kazakh delegation was presented with new solutions and equipment used in smart and safe city projects.
As a result of the meeting, 8 commercial agreements totalling $2.5bn were signed.
- Agreement on cooperation between Samruk-Kazyna Invest LLP, QAZAQGAZ AIMAQ JSC and Goldcard Smart Group Co., Ltd. in the field of implementation of smart systems for the amount of $8 million. The project involves small-node assembly of gas meters on the territory of FEZ PIT ‘Alatau’ in Almaty from components supplied by GoldCard, taking into account the localisation of components;
- Agreement between Qarmet JSC and Zhengzhou Coal Mining Machinery Group in the field of production of equipment for coal industry on purchase of mechanised complexes for mines of the coal department of Qarmet JSC for the amount of $70 mln;
- Memorandum of Understanding on establishing the framework for investment cooperation between the Ministry of National Economy of the Republic of Kazakhstan, China State Investment Fund Silk Road Fund Co.Ltd. and Kazakhstan Investment Development Fund (KIDF) Management Company Ltd. for the amount of $552 million;
- Agreement between Qarmet JSC and Xinxing Ductile Iron Pipes Co., LTD on construction of a plant for production of high-strength cast iron pipes with spheroidal graphite with a capacity of 200 thousand tonnes per year in the Republic of Kazakhstan for the amount of $161 million. The products are intended for projects on construction, modernisation, reconstruction, expansion and renovation of facilities of the housing and communal system of the Republic of Kazakhstan;
- Agreement between Qarmet JSC and China Metallurgical Group Corporation to establish long-term and comprehensive cooperation in the mining and metallurgical industries for the amount of $1 billion;
- Agreement between Qarmet JSC and ACRE Coking & Refractory Engineering Consulting Corporation on implementation of the strategic project on modernisation of coke-chemical production and development of coal chemistry for the amount of $649 mln;
- Agreement between Qarmet JSC and Nanjing Fiberglass Research & Design on construction of a factory for production of mineral insulation from blast furnace slag in Temirtau for the amount of $30 million, with a capacity of 100 thousand tonnes of finished products per year and creation of 200 new jobs;
- A package of agreements between Saran Machinery LLP and Sinotruk International on cooperation in distribution and assembly of KDs, technology licensing and use of trademarks for the amount of $70 million. Among them is a Memorandum on the implementation of a project in Saran for the production of cargo and special-purpose machinery, under which it is planned to create about 1,000 new jobs in the future.
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