Download - Kazakhstan Investment Opportunities - Zhambyl region 2014

Zhambyl region is one of

the most attractive regions of

Kazakhstan for direct foreign

investments. The region has

stable developing economy,

growing GRP index, huge

industrial potential and a variety

of investment resources for

foreign investors.Owing to effective current

pol icy of investors ' r ights

protection and efforts to create

favorable conditions, the region

o f f e r s i n v e s t o r s r e l i a b l e

investment environment with a

large amount of prospective economics fields. Updated and advantageous investment environment of Zhambyl

region afforded us to succeed considerably both in homeland and in

foreign investments, that is proved out by interest and existence of

foreign investors from more than 15 countries (Russia, France, Turkey,

China, Czech Republic, UAE, Germany, Japan, etc.).Zhambyl region is on the way of realization of its real economic

potential and intends to become a place of investment concentration

which will contribute to forming new jobs, technologies and ideas. Using the advantageous geographical position, resources and

agro-industrial potential, developed and diversified economy and other

competitive advantages of the region, investors can become major

suppliers of export-oriented and high-tech products with high added

value.

Mayor of Zhambyl regionKarim Nasbekovich

Kokrekbaev

Dear investors!

2

CONTENT

About Kazakhstan

Favorable location

The rich natural resources

A Favorable business climate

The Agreement about the promotion and mutual protection of investments

Economic growth

INFORMATION ABOUT THE ZHAMBYL REGION

Transit potential

Economy

Sectors of the Economy

Staff

BENEFITS AND PREFERENCES / INVESTMENT PREFERENCES

STATE SUPPORT MEASURES

INVESTMENT PROJECTS IMPLEMENTED WITH THE PARTICIPATION OF

FOREIGN INVESTORS

INVESTORS SERVICE CENTER

CONDITIONS OF PARTICIPATION OF «NC «SEBC «TARAZ» JSC IN INVESTMENT PROJECTS

INVESTMENT PROJECTS OF THE ZHAMBYL REGION REQUIRING INVESTMENT

www.dppzhambyl.gov.kz

Entrepreneurship and industrial - innovative development department of Zhambyl region

Investors service centreof Zhambyl region

Zhambyl Taraz str. Tole, 35 Tel/fax: 8 (72 62) 43 89 02, 43 89 03E-mail: [email protected]

ZHAMBYL REGION Investors guidebook

3

ABOUT KAZAKHSTAN

Population: 17.2 MM people.

National currency: tenge (KZT).

Exchange rate: KZT-USD 180.87; KZT-EUR 230.21* as of 30.10.2014

Time zone: UTC + 6:00 (Almaty, Astana). Kazakhstan is divided into two

time zones: eastern (basic) & western.

Language: National language is Kazakh, alongside with Kazakh Russian is

used in state organizations and self-governing authorities.

Religion: Currently Kazakhstan is multi-religious country with more than 3

000 active religious associations representing 40 religions. Prevailing

religions - Islam and Christianity.

Administrative-territorial fission

Territory2,724,900 sq km (1,052,085 sq miles)The ninth largest country in the worldSecond place in the territory of the Commonwealth Independent States

Atyrau

Aktau

Uralsk

Aktobe

Kostanay

ASTANA

Petropavlovsk

Ust-KamenogorskKaraganda

Pavlodar

Almaty

TaldikorganBaikonur

Kizilorda

Taraz

Shymkent


4

FAVORABLE LOCATION

Kazakhstan is located in the heart of the Eurasian continent, through the territory of Kazakhstan was once the Great Silk Road. The main transcontinental routes connecting Asia-Pacific region with the Middle East, and Europe pass through Kazakhstan. The three countries of the "four" BRIC are near Kazakhstan: Russia, China and India.

Gate to the Russian and European markets

1. Strategic location between the European and Asian business centers2. The main transit zone in the region3. Surrounded by a rapidly growing markets -China and Russia4. 3 of 4 Asian rail corridor come through Kazakhstan

Gateway to China, India and Southeast Asia

Europe Russia

Kazakhstan

China

The middle east

India

Belarus

Customs Union advantages

1. Unified custom area;2. Unified foreign trade policy (FTP);3. Unified customs regulations & Code;4. Free good movement inside customs area.


5

THE RICH NATURAL RESOURCES

One of the principal assets of Kazakhstan - is its natural resources.Kazakhstan is ranked 6th in the world in terms of mineral resources.Of the 110 elements of the periodic table of chemical elements in Kazakhstan has 99 members, 70 explored, 60 extracted and used: oil, gas, uranium, zinc, tungsten, Borrego, silver, lead, chromite, copper, fluorides, molybdenum and gold.Mineral resources of the Republic of Kazakhstan consists of 5004 deposits, the forecasted cost of which is about 46 billion U.S. dollars.

Kazakhstan is moved linearly in the direction of facilitating the procedures associated with the development of the business.Evidence of a favorable business climate is an international rating of the World Bank and the International Finance Corporation Doing Business, which allows to estimate the legislation dealing with the regulation of the business and is used in 183 countries.

A FAVORABLE BUSINESS CLIMATE

Rating of Doing Business

Global Competitiveness Index

2013-2014

50 place

REGION Europe & Central Asia

INCOME Upper middle incomeCATEGORY

POPULATION 16 797 459

GNI PER CAPITA 9 730 (US$)

CITY Almaty COVERED

DOING BUSINESS 2014 RANK

DOING BUSINESS 2013 RANK***

CHANGE IN RANK

DOING BUSINESS 2014 DTF** (% POINTS)

DOING BUSINESS 2013 DTF** (% POINTS)

CHANGE IN DTF** (% POINTS)

50 53 3

62,65 62,22 0,43

TOPICS DB 2014 Rank DB 2013 Rank

Registering Property 18 27

Protecting Investors 22 21

Paying Taxes 18 18

Enforcing Contracts 27 26

Starting a Business 30 27

Rankings


6

AGREEMENT ABOUT THE PROMOTION ANDMUTUAL PROTECTION OF INVESTMENTSBilateral agreement

Multilateral agreementEuroasian economic community

ECONOMIC GROWTHThanks to smart policy and attracting FDI, the Kazakh economy is growing at a steady pace. Over the past decade, GDP grew by more than 7-fold (from 24.6 billion to 171 billion dollars).The dynamics of investments attraction over the millions of USD.

Investments promotion dynamics, MM USD

1. Austria 17. Iran 33. Serbia

2. Azerbaijan 18. Spain 34. Slovakia

3. Armenia 19.Italy 35. USA

4. Afghanistan 20. Qatar 36. Tajikistan

5. Belgium-Luxembourg Union 21. China 37. Turkey

6. Bulgaria 22. Kuwait 38. Russia

7. UK 23. Kyrgyzstan 39. Uzbekistan

8. Hungary 24. Latvia 40. Ukraine

9. Vietnam 25. Lithuania 41. Finland

10. Germany 26. Macedonia 42. France

11. Greeke 27. Malaysia 43. Czech Republic

12. Georgia 28. Mongolia 44. Switzerland

13. Egypt 29. Netherlands 45. Swedan

14. Israel 30. Pakistan 46. Estonia

15. India 31. Poland 47. South Korea

16. Jordan 32. Romania

171 billion dollars

30

20

15

10

5

01993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1,3 0,7 1,0

1,7 2,1 1,2

1,9 2,8

4,6 4,1 4,6

8,3

6,6

10,6

18,5

19,8 19 19

21

22,5

2013

33,3


7


Geopolitical position: Zhambyl oblast is located in the south-eastern part of Kazakhstan and borders on the South Kazakhstan and Almaty region (in the west and east), on the Karaganda region (in the north), on Kyrgyzstan (in the south).

Administrative divisions: The territory of the region is 144.3 thousand sq. km

(5.3% of the country's territory), which has 10 districts, 1 city of regional

subordination – Taraz, 3 towns of regional subordination – Karatau, Zhanatas,

Shu and 373 villages. The administrative center is the city of Taraz.

Population: Is 1 092.1 thous. People as of 01.08.2014, 60% are village

habitants. Population consists of more than 100 nationalities and nations.

Average population density is 7.6.

Natural and climatic conditions: The climate of the region is continental. In

January the average temperature in the plains is -15 °C, in the foothills – 6-8 °C,

in July +16 °C and +24/+ 25 °C respectively. Annual precipitation in the plains is

up to 300 mm, in the foothills and mountains – from 500-700 to 1 000 mm.

Growing period in the foothills and plains is 205-225 days.


Atyrau

Aktau

Uralsk

Aktobe

Kostanay

ASTANA

Petropavlovsk

Ust-KamenogorskKaraganda

Pavlodar

Almaty

TaldikorganBaikonur

Kizilorda Zhambylskiy area

Karaganda egion

Almaty region

of South Kazakhstan

region

Moyinkum area

Sarysu area

Talas area

Baizak area

Zhualynskiy area

Ryskulov area

Merkenskiy area

Shuskiy area

Kordai area

Zhanatas

Karatau

Moyinkum

Assa

Sarykemer

TarazTarazTaraz KulanMerke

Tole bi

Shu

Kordai

Bauirzhan Momyshuly

K Y R G Y Z S T A N

TarazTarazTaraz

Shymkent

8


Natural resources: The region is a unique base of phosphorite and fluorspar resources, it is rich in non-ferrous metals (copper, gold, silver, lead, zinc, etc.), barite, coal, facing, ornamental and technical stones, construction materials (asbestos, cement and expanded clay materials, gypsum, etc.), natural gas. In the region there are about 71.9% of balance reserves of phosphorite (the largest reserves in the CIS), 68% of fluorspar (one of the leading places in the world by reserves of fluorspar), 65.1% of quartzite, 8.8% of gold, 3% of copper, 0.7% of uranium. Stocks of fodder and technical salt make up to 10 million tons. There are the largest deposits of quartzite in the country, as well as titanium-magnetite deposits.

3% of the balance gas reserves of Kazakhstan, explored reserves - 45 billion m3, projected - 89 billion m3

15.4% of balance reserves of lead of RK and 3.4% of zinc reserves, probable reserves - 3.8 million tons

40 fields of with stocks 4 520,9 thousand м3/d. (the 3rd place in the country by quantity of explored reserves)

Name of minerals Mineral reserves

Phosphorites

Barite

Fluorspar (fluorite)

Uranium

Gas

Coal

Gold

Lead and zinc

Copper

Tin

Rock salt

Mineral salts

Gypsum and anhydrite

Rare earth elements

72% of balance reserves of phosphorite of RK, total reserves - 3 817.4 million tons

Barite ore reserves - 12.0 million tons

80.6% of balance reserves of fluorspar of RK, total ore reserves - 24.9 million tons, or 7 million tons of fluorite

Total reserves of uranium - 8.0 thousand tons

21.1% of balance coal reserves of Kazakhstan, total of the balance reserves - 6.75 million tons, projected - 4.3 billion tons

8.2% of balance and 15.4% of predicted gold reserves of Kazakhstan, total reserves and predicted resources are estimated at 300 - 350 tons

3% of balance and 9.7% of probable reserves of copper, total reserves and expected resources are 1.75 million tons

34.3% of forecasted reserves of Kazakhstan, total author reserves - 12 thousand tons, forecasted - 101 thousand tons

Forecasted reserves of salt - 2.6 billion tons

Balance and probable reserves - 15.0 million tons

25.8% of balance gypsum reserves of RK, total of balance reserves of gypsum and anhydrite - 50.3 million tons

germanium, indium, cadmium, yttrium, ytterbium, elements of cerium and yttrium groups

Underground waters


9

TRANSIT POTENTIAL

Kulsari

Atyrau

Aktau

Uralsk

Aktobe

KhromtauAlga

Kandyagash

Emba

Shalkar

Aral

Baikonur

Kizilorda

Turkistan

Zhanatas

Shymkent

Taraz

Aris

Lenger

SaryagashChardara

Zhetysai

Shu

KaskelenAlmaty

Kapchagai

Taldikorgan

Ushtobe

Tekeli

Balkhash Ucharal

Ayagoz

Shar

SemipalatinskUst-Kamenogorsk

ZyryanovskRidder

ShemonaihaKurchatov

Karaganda

Karazhal

Priosersk

Zheskazgan

Abay

Arkalyk

Zhitikara

Lissakovsk

Kostanay

Yesil

Derzhavinsk

Atbasar

ASTANAASTANAASTANA

Akkol

Makinsk

Shchuchinsk

Kokshetau

Taiynsha

Petropavlovsk

Mamliutka Bulaevo

Yereimentau

Stepnogorsk Aksu

Pavlodar

Ekibastuz

Rudnyi

Karatau

Ташкент

Орск

Челябинск

Курган Омск

Омск

Considering the advantageous geographical location, the Zhambyl region has

high transit potential due to the location of Kazakhstan in the heart of the

Eurasian continent and passing traffic from the countries of Central Asia.There are 50 railway stations in Zhamby region, 25 railway traffics w/ 50 routes

cross it, they connect Zhambyl region with all regions of Kazakhstan, Russia (7

r/w traffics), Kyrgyz Republic (6 r/w traffics) & Uzbekistan (1 r/w traffic).

Transit outlook for the region is increasing significantly in the light of the

international railway project "TRACECA" and construction of the road corridor

"Western Europe - Western China", which create favorable conditions for the

formation of a powerful hub of international importance.Carried freight index for 2013 was 88.4 MM tons, that exceeds to 9.9% the

volume of 2012 (80.4 MM tons). Freight turnover was 2 726.5 MM t/km, that

exceeds to 10.0% the volume of 2012 (2 477.8 MM t/km).

THE SCHEME OF RAILWAY NETWORK


10 ZHAMBYL REGION Investors guidebook

INTERNATIONAL RAILWAY PROJECT "TRACECA"

INTERNATIONAL AUTOMOBILE CORRIDOR "WESTERN EUROPE-WESTERN CHINA"

Sankt - Petersburg

MoscowAktobe

Almaty

Shymkent

Urumqi

Lanzhou

Lianyungang

TRANSIT POTENTIAL

Extent on the territory of Kazakhstan – 2787 km.Extent on the territory of the region – 495 km.


ECONOMY

Regional gross regional product (GRP) per head in 2013 was 817.6 thous. KZT

and exceeded by 5.9 times since 2004, exceeded to 13.8% compared to 2012.Structural regional GRP breakdown in 2013: 17.5% is industry, 9.6% -

agriculture, 12.5% - transport & communications, 12.6% - construction, 9.9% -

trade, 37.9% - misc. Agricultural sector prevails in 7 rural areas, industry prevails

in rest 3 districts.

Dynamics of gross regional product of the region, mln. of USD

4 500,0

4 000,0

3 500,0

3 000,0

2 500,0

2 000,0

1 500,0

1 000,0

0,0

500,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

807,4 927,01 139,2

1 298,6

1 800,7

2 194,62 357,4 3 016,2

4 168,2

4 938,8


GRP ZHAMBYL REGION IN 2013

During last 10 years the GRP volume of Zhambyl region increased in 6.4 times and in 2013 it was 880.7 bil. KZT.Zhambyl region's prevail in good producing brunches - 39.7% (agriculture, forestry and fishery - 9.6%, Industry - 17.5%, construction - 12.6%). The majority of processing industry is Chemical industry (2013 proportion in Processing - 29.6%), food industry (proportion - 29.0%), manufacturing of other non-mineral products (proportion - 13.4%).Retail turnover volume in 2013 was 151.6 bln KZT (122.3% compared to 2012), meanwhile wholesale turnover in 2013 was 158.5 bln KZT.Regional external turnover was 600.5 MM USD, increased by 1.4 times, including export - 175.6 MM USD (in 1.2 times), import - 424.9 MM USD (in 1.4 times). Main regional trade partners are CIS countries (45.8% of overall external turnover) & non-CIS countries (54.2%). Good buyers during reported period were Switzerland (24% of overall export), Kyrgyzstan (19.3%), China (18.7%), Turkmenia (10.0%), Azerbaijan (7.7%), Turkey (6%), Uzbekistan (5.5%), others (8.8%). Chemicals, mineral fertilizers, ТОПС, barite concentrates, limestone, etc. are exported there. Construction materials (cement, granite goods), special footwear, wearing apparel, PE & drip irrigation pipes, leather goods, bed flowers, etc. are traded within Kazakhstan.

ECONOMY

Agriculture

10%

Industry

17%

Construction

13%

Trade

10%

Transport and

communications12%

Other

38%


INVESTMENT IN FIXED ASSETS, million of USD

Volume of investments to capital stock in 2013 was 248.8 bln KZT or 155.9% compared to 2012. Public funding investments was 44.5 bln KZT, or 14% less than previous year's index. Total proportion of public funding to overall investment is 17.9%. Total net worth was 37.6 bln KZT, overall investment rate is 15.1%. Bank loans in overall investments are 65.9% or 164.0 bln KZT, including foreign banks – 156.7 bln KZT.Volume of equity contribution and other loans was 2.7 bln KZT, overall investment rate is 1.1%. Majority of investment composition of capital stock as per company business activity is in transportation, warehousing (66.2%) & industry (17.6%). The other types of business activities have from 0.1% up to 8% from overall investments to capital stock.

ECONOMY

996,7

938,9

733,6

1 374,1

2013 г.

894,7

1st half of 2014

2012 г.2011 г.2010 г.

2 000 000


SECTORS OF THE ECONOMY

Main industrial branches are mining, processing (chemical, food, metallurgy, construction material manufacture and construction), which are represented by more than 300 large and average Companies. Processing enterprises has 74.7% of Industry.

Chemical industry Chemical branch is the most developed branch of Zhambyl region: its percentage in Processing Industry of 2013 was 29.6%, percentage in overall industry – 22.1%. The basis for chemical sector is producing of phosphorus-bearing raw and и producing phosphorus-containing products, including mineral fertilizers. “Kazphosphate” JSC is the Kazakhstan Chemical Industry leader and main facilities are located in Zhambyl region. Region started to execute large investment Projects: “EuroChem Fertilizers” LLP (Russia) related to production of mineral fertilizers, “Taraz Chemical park” Special Economic Zone is being created with participation of «SWF «SAMRUK-KAZYNA» JSC, that plans the construction of more than 16 chemical plants at cost of up to 390 bln KZT with estimated production rate in 2017 (initial) up to 890 thous. Tons at cost of 101 bln KZT.

KAZFOSFAT


Agricultural sectorNatural and climatic conditions allow growing grains, technical, gourds, feeds, vegetables & fruits. Availability of spread native grasslands (more than 3 MM ha) contributes to development of cattle, sheep & horse breeding.Regional number of farms is 15 360 ea. Agricultural land areas:

- native grasslands: - more than 3 MM ha

Agricultural lands: - 4 078.9 thous. ha, including - ploughland: 757.6 thous. ha- prernnial plantings: 4.2 thous. ha- haylands: 106.7 thous. ha- grasslands: 3 209.4 thous. ha

Plant growing and breeding have quite similar percentage in agricultural structure: 49.7 % & 50.3% correspondingly.Total agricultural output in 2013 was 127.3 bln KZT. Volume index was 110.5%.Breeding is characterized by presence of numerous and growing livestock of cattle, sheep, goats, horses, developed poultry farming. Agri-food sector includes following segments: production of meat, milk, fruit & vegetable products, sugar.

Breeding livestock as of 01.08.2014 was:- cattle: 300.1 thous. heads; - cows: 126.0 thous. heads;- sheep & goats: 2 326.6 thous. heads;- pigs: above 32.1 thous. heads; - horses: up to 93.9 thous. heads;- poultry: 1 141.1 thous. heads;- camels: up to 6 thous. heads.


Construction material production Regional construction materials industry is integrated branch that include several branches, namely production of cement, marble & granite goods, dry building mixes, construction bricks and block, metalware, ferroconcrete & plastic products.During last years, regional construction industry shows high growth rates, construction participation in GRP in 2013 was 12.6%. 4.8% of regional working population are occupied in construction.Region has about 200 mineral deposits of construction raw, including:

- construction materials: gypsum and anhydrite, cement, expanded clay, quartz, asbestos, talc, mica, etc.

- sheeting, ornamental & technical stones: granite, marble, limestone, calcedony, abrasive raw, etc.

Power economicsCurrently Zhambyl region pays much attention to execution of renewable energy source (RES) Projects, ensuring Zhambyl region is one of the leaders in development of alternative energy in Republic. Hence the alternative energy source role in regional power balance permanently increases that contribute to development of greentech as separate branch.Currently Zhambyl region executes and plans to execute 12 RES investment projects, that contain construction and operation of hydro-, wind & sun power stations of different capacity from 7 to 300 МWt.Construction of RES facilities is done with participation of national & foreign investors like Russian Federation, France, Netherlands, China, etc. region has large land, high wind & sun potential for development of power branch.




Mining complex Mining complex is presented by enterprises for the extraction and processing of gold, barite ore, manganese ore and gas.As of year-end 2013, the volume of regional industry was 233.9 bil. KZT, actual growth was 107.4%.Mining industry volume was 18.8 billion KZT or 116.5% compared to previous year. Mining participation rate in overall industrial output – 8.0 %.

Light industry Light industry of the region consists mainly of wool and leather production, and goods made of them. At the same time, favorable conditions for the development of fine-fleeced sheep breeding, Karakul breeding and availability of state support for the industry allow to develop new productions of yarn and cloth, footwear products and leather accessories.

Food industryFood industry is one of the most promising sectors, due to the high concentration of feedstock production and processing capacities in suburban areas, ecologically pure products.




Depths of our region are rich in other resources, the most important of them are noble metals like gold, silver and nonferrous metals - copper, zinc, lead; non-metals - barytes, coal & mineral salts. Great asset are gas fields.Promising deposits of lead-zinc mineralization discovered in Shu-Iliysk region. Salt deposits are of industrial interest (cattle & table salt reserved are estimated at the amount of 15 MM tons). Region is the third in Republic in number of explored subsurface water resources and one of the most provided with fresh water (38 fields of fresh and 2 fields of therapeutic mineral water revealed).Region has two quartzite deposits (Makbel & Zhanatas), total stock of those deposits has 65.1% of overall national balance. Based on the titanium-magnetite ore of Tymlai field, there is a the possibility of iron and titanium concentrate & grained iron production. Also fluorite deposits can be transferred to human activity (fluorspar, after its processing you can start the production of fluorine, artificial cryolite for aluminum electrochemical production).



Small and medium businessBusiness has dynamically developing business: small and medium-sized business entities participate in all economics branches. Trade & services prevailAs of October 1, 2014 there are 42 887 small and medium-sized business entities in region, including small business legal entities - 1 623ea, medium-sized ones – 108ea, private entrepreneurs - 25 774ea, farms - 15 382ea.Number of active small business entities in 2013 was 41 863 ea, 23 465 was in 2003. Number of small business workers in 2013 was 119.4 thous. persons.Production rate of small business entities increased in 10 times compared to 2003 & was 234.5 bln KZT.

CultureNational network of Culture and Art facilities includes: 2 theatres, 1 concert organizations, 7 museums, regional cinema center, 285 libraries, 199 community centers & clubs, 1 cinema, 10 “Video mobile” car clubs, 23 movie devices, 12 archives, regional Center of Folk Arts & History-Cultural memorials' preservation and reinstatement Office.

Sports & HealthHealth network consists of 57 state medical enterprises, including 24 - hospitals, 2 - perinatal centers, 11 - early treatment clinics, 2 spa & recreation centers, 12 outpatients centers, 6 misc.


TourismThe region has great potential for the development of tourism, both internal and international. The Great Silk Road passed through it, on the path of which there are interesting historical and cultural monuments. There are 26 tourist firms, 14 hotel units and 5 sanatoria and health resorts of physiotherapy in the region, which represent a wide range of services for treatment and rest, both local and foreign tourists.

Historical and cultural tourism Through the region took part of the Great Silk Road, the path of which there are monuments of history and culture. Just Zhambyl region has 2,060 historical and cultural monuments, including monuments of archeology, history, architecture and art.

Eco-tourism The region is characterized by a range of natural habitats, varied flora and fauna, scenic mountain terrain, the presence of 3 unique nature reserves.

The active forms of tourism Perhaps the development of water sports, fishing, hunting, rally, motocross and other extreme sports and active.

Transit tourism The region extends much of the international transit corridor «Western Europe - Western China» (495 km) along which is planned to build 8 roadside service.




The region has a variety of flora and fauna. The flora consists of more than three thousand species, of which 50 are high-value species listed in the Red Book. In the region there are more than 158 species of wild animals, more than 260

species of birds. In the desert sands are found gophers, jerboa, hares, gazelles, deer, antelopes, in the mountains there are mountain goats, wild rams, bears, snow leopards, wolves, foxes, korsaks, badgers, weasels, etc. The total area of hunting land is 13,900 hectares, where inhabit over 40 species of animals. Fisheries Fund, covering an area of 28,000 hectares, including 59 reservoirs suitable for fishing. Attractive climate, beautiful nature with an unique natural landscapes, diverse flora and fauna, ancient history, rich cultural heritage and vast areas can successfully develop the historical-cultural, eco-tourism, hunting, fishing and other active forms of tourism.


Region has considerable innovative potential, the basis of which is HEI scientific base, branch scientific-research institutions & infrastructure of scientific-technical innovation.Zhambyl region has 4 HEI, appx 27 thous. are studying herein. Technical & profile educational entities' number is 49, total number of their students is 32 320 persons.

Economically Active Population, thous. pers.

Unemployed citizen at labor open market - thous. pers.

A STAFF

The structure of the economically active population, thous. pers.

2012 2013 on 01.07.2014 у.

474,8 470,7 461

32,1 30,1 28,50

50

100

150

200

250

300

350

400

450

500


BENEFITS AND PREFERENCES

Investment preferencesInvestment advantages are provided as per activity priority list approved by RoK Government ACT № 436 dd May 8, 2003.

In compliance with Law “About investments” Investor can be provided with:

- release from custom fees payment while importing of equipment and components required for investment Project execution;

- State land grants: land, buildings, structures, machinery & equipment, computation, measuring and controller tools & devices, transport vehicles (besides light vehicles), industrial and household inventory.

- tax exemptions for up to 7 years for strategic investment Projects (land tax 0%, property tax 0%);

- Industrial preferences for strategic investment Projects for settlements with low level of social-economic development (reimbursement or paying off the part of gas/electricity cost, land allotment purchase, building & structure purchase (construction).

- tax preferences: decreasing of corporate income tax by 100%, application of Zero coefficient to land tax rates, property tax - 0% for taxation base.

- Investment grant: reimbursement of up to 30% from actual construction costs & equipment purchase without VAT & excise duties

INVESTOR GUARANTEES IN KAZAKHSTANInvestor legal protection guarantee

- complete and absolute protection of Investors' right and interests - right for compensation of harm from State Acts, Laws and officers'

activities-Stability of correspondent Contract terms between Investors and State

Income usage guarantees- The right to use incomes after payment of all the taxes & obligatory

budget payments in its own discretion

TRANSPARENCY OF GOVERNMENT ACTIONS RELATED TO INVESTORSINVESTOR RIGHTS GUARANTEE IN CASE OF NATIONALIZATION AND REQUISITION

Investor protection - place among countries as per “Doing Business”. 22nd 185Land allotment for 49 years term if any resident enterprises found.

Up to 100% equity of foreign investors


INDUSTRIAL ZONE

State support measures assumed for Industrial area participants:

1) Priority consideration of requests for participation in “2020 Business Roadmap” (funding of interest rate and partial assurance for bank loans) submitted by Companies that execute Projects at Industrial area;2) Providing to industrial-innovative Companies of land without auction for execution of Industrial and innovative Projects;3) Free of charge submission of land allotment to private property of those investors, who executed Investment Projects as per Industrial development map (State Program of Accelerated Industrial and Innovative Development); 4) provision of IA participants with utilities & infrastructure5) training and further training of qualified manpower for IA participants;6) priority consideration of requests for participation in Projects, being executed at IA, in provision of confessional loan & financial leasing using the funds of regional development institutions, “Damu-regions 2” Program and local budget.

«Taraz» industrial area

Initiator: Zhambyl regional Akimat Territory: 40 haLocation: Zhambyl region, TarazSpecialization: MSW management, production of construction materials & vegetablesFinancing amount:Appx 18 675.7 MM KZT, including:

- republican budget funds: 2 500 MM KZT (infrastructure construction)- private equity: 16175.7 MM KZT (creation of manufactures at industrial

area territory) Planned Projects:

- MSW collection center and landfill reclamation;- biowaste recycling & electricity generation;- greenhouse;- tire & other rubber recycling;- metal tile roofing & corrugating slating production;- floor cloth issue;- polymeric sand good production;- production of PE film & plastic goods.

Infrastructure cost: 12 500 MM KZT (road, overhead power lines, heat supply, water feed,

gas supply, sewerage)


INDUSTRIAL ZONE

«Talas» industrial area

Initiator: Zhambyl regional AkimatTerritory: 20 haLocation: Zhambyl region, Talas district, Tamdy rural district (6 km away from Karatau)Specialization: production of construction materials, local manufacture supportFinancing amount:Appx 614 MM KZT, including:

- republican budget funds: 194 MM KZT (infrastructure construction)- private equity: 420 MM KZT (creation of manufactures at industrial area

territory)Planned Projects:

- storage container manufacture;- coverall & protective equipment manufacture;- tapestry brick production;- lime production.


BENEFITS AND PREFERENCES / Investment preferencesBenefits for members of Special Economic Zones

Tax privileges

THE PROPERTY TAX, THE EARTH AND TRANSPORT OF

within 10 years from the moment of

Customs preferences

Free customs areaEquipment import

VAT AND CUSTOMS DUTIES OF

Within the SEZ:- the “one-stop” principle is used in providing public services;- the procedure of a free customs zone acts;- lands are provided with infrastructure objects fully or partially by the budget;- issuing permits to employ foreign labor is performed in a simplified manner.- the participants of SEZ are provided with tax privileges.

Access to ready infrastructure

Electricity

Water supply

Communication lines

Railway and automobile ways

Sewerage

Thermal networks

Gas supply

THE DECREASE OF THE CALCULATED CORPORATE INCOME TAX

100 %


MEASURES OF THE STATE SUPPORT

Standard and legal base of investment activity in Kazakhstan.Improving, remaining stable in the main thing - in the accurately expressed orientation on support of the business focused on an investment of financial means in various sectors of economy.The state actively carries out support of investment initiatives within which assistance in allocation of the land plots under building of new objects, construction of industrial infrastructure at the expense of public funds, joint financing of investment projects, granting grants, preferences of investors (tax, customs privileges) is rendered

Measures of state support for entities of industrial-innovation activity

1. financing, including co-financing of projects, lease financing;2. provision of warranties and guarantees on loans;3. lending by financial institutions;4. subsidize interest rates on loans granted by financial institutions and the coupon rate on the bonds;5. implementation of investments in share capital;6. guaranteed order;7. providing innovation grants;8. providing qualified human resources;9. provision of engineering and communication infrastructure;10. provision of lands and mineral rights;11. support in the domestic market;12. attraction of foreign investment;13. development and promotion of export of domestic processed goods and services.


MEASURES OF THE STATE SUPPORTGovernment support in the framework of theProgram "Business Road Map 2020"

The Program involves state support for projects realization in the non-commodity sectors of the economy according to the priority directions. Subsidizing the interest rate on bank loans Subsidizing the interest rate of the Bank is provided for new loans issued for the implementation of new investment projects as well as projects designed to modernize and expand production. The amount of loan(s) the interest rate of which is subsidized may not exceed KZT 3 billion for one borrower. Subsidy term ranges from 1 to 3 years with the possibility of further prolongation for up to 10 years. The applicant must provide the involvement of his own funds in the implementation of the project (not less than 15% of the total cost of the project). Interest rate subsidy can only be carried out for bank loans with interest rate of no more than 14%, of which 7% by means of a program participant, and 7% - compensated by the state. Subsidizing can be also applied to loans with a variable interest rate, but in the case of excess of remuneration interest rate above the limit values set out in the Program, operation of the Subsidy Treaty on the loan is terminated.Guarantees for Bank loans The warranty applies only to loans issued for new projects realization, as well as ongoing projects aimed at modernization and expansion of production. The amount of guaranteed loans can not exceed KZT 3 billion for one borrower. The amount of the guarantee can not exceed 50% of the loan amount.Guaranteeing can not be applied to loans issued to finance working capital, except in cases when the funding of working capital is carried out within the credit for the purchase and/or improvement of fixed assets, but not more than 20% of the loan amount. The applicant must provide the involvement of his own funds in the implementation of the project (not less than 15% of the total cost of the project). Interest rate of the guaranteed loans can not be higher than 14%. Cost of the guarantee, which the Program Coordinator pays to the financial agent at the local level, is 20% of the guarantee amount.Development of production (industrial) infrastructureDevelopment of production (industrial) infrastructure will include introduction of the lacking infrastructure and can be implemented for projects aimed at modernization and expansion of production facilities, both for specific projects individually and within the organization of industrial sites. Allocation of funds can be directed only to the construction and reconstruction of the following infrastructure: roads, sewerage, gasification, water lines, steam pipes, heating, water supply, railway siding, installation of telephones, electric substations, power lines.Introduction of the missing infrastructure can be directed to several projects. The cost of construction (reconstruction) of the infrastructure shall not exceed 50% of the project cost in case of application of infrastructure to a single project.


Program of the development and export promotion "Export - 2020"

MEASURES OF THE STATE SUPPORT

Program target is complex support of export-oriented and active enterprises that export non-energy goods for volume increasing & expansion of Kazakhstan goods marketing area.Program is assigned for support provision to national small & medium-size enterprises, active and potential exporters of processing sector.Export service support. Information & analytical support of exporters, promotion of native trademarks to external markets, training of enterprise specialists in the field of export activities, promotion of goods to humanitarian supplies market.Financial support of business people, compensation of 50% export expenses (registration of trademarks, product certification, etc.)Program execution is done along following directions:1. Partner & buyer search2. Promotion of goods to humanitarian supplies market:Compilation of Buyers' database, evaluation of product compliance with Buyers' requirements3. Sensible export routes:Calculation of sensible export route logistics4. Target information sharing with foreign buyersWorldwide distribution of annual export product catalogue. Placement in specialized foreign catalogues5. Information support“Exporter's guide” instruction, Export Countries Guide, promotion of Kazakhstan companies at international bids.6. Exporters grants – account cost compensation – expenditures related to product registration overseas7. Trade financing, loaning and assurance.


INVESTMENT PROJECTS INVOLVING FOREIGN INVESTORS

Name of foreign investorsThe country

of the investor

Name of the projecttotal sum

of the project, mln. U.S.dollars

Construction of a chemical plant for the production of mineral fertilizers

Construction of a cement plant with a capacity of 1.2 million tons / year

Organization of production of sodium hexametaphosphate and food fosfat, capacity 4,000 tons / year

Processing of meat and production of meat product standard "Halal»

Issue pure wool worsted yarn

Processing plant oilseeds

Organization assembly shunting locomotives

Extraction and production of construction materials

Construction of wind power plants "Shokpar»

Construction of wind power plants "Shokpar-2»

Construction of wind power plants «Taraz»

The construction of wind power plants "Zhanatas" and "Shokpar", with a total capacity of 300 MW

Construction of a cascade of small hydropower plants on the river Merke capacity of 19.8 MW / h

Construction of solar power plants

Processing plant liquorice

Construction of solar power plants

HIC "EuroChem”

VICAT Group Company

Fosfa a.s. company

Central Asia Green Power

COKEY Systems Co., Ltd.

LLP «Ontystyk Halal Tagyamdar»

LLP «Kaz-Ir-Agro»

United Green

ООО "GPMI”

LLP «Knauff-gypsum»

Energy Emissions BV

Energy Emissions BV

Fonroche Renewable Energies

Energy Emissions BV

«Sevrim Srl» Ltd

Tsiyan locomotive-building company CSR Corporation

2 425

238

3,4

550

5,2

50

600

13,8

5,7

4

33,4

300

108

700

13,813,8

4,4

-


Investor Service Centre (ISC) was established in Akimat Zhambyl region in order to provide service and support to potential investors and facilitate investment in the region's economy.

The main activity is the ISC:

1. Inform potential investors about investment opportunities in the region;

2. Search for potential investors and prospective projects for implementation in the region;

3. Organization of meetings and negotiations with potential investors interested companies, public authorities and others;

4. Search for local partners for investment projects;

5. Assist in resolving potential administrative obstacles.

INVESTOR SERVICE CENTRE

Investor Service CentreAddress: RK, Zhambyl, Taraz, st.Tole, 35, 4th floor, office. 404Tel: + 7 (72 62) 43 89 02, 43 89 03Fax: + 7 (72 62) 43 89 02E-mail: [email protected]

INVESTOR SERVICE CENTRE


Partnership share of Company in the equity capital of joint venture

-The maximum share in the project - 49% (in exceptional cases, more than 49% of the participation in own assets of Company, or by decision of the Board of Directors of the Company).

Controlling the financial resources of the project and the overall monitoringof the project implementation

- The Company has the right to introduct its representatives in the Board of Directors - at least 1/3 of the total amount (taking into account that the other 1/3 should consist of independent directors). - If a subsidiary organization/investment project is formed as LLP, Company must create Supervisory Board. - Maintaining Financial director, with enhanced powers.

Conditions of participation of the Company in the Project by cash

- Participation of potential partner in the Project by cash or with property (intellectual property assets relating to the proposed business) with value of not less than 51% of the funds invested by the Company;- The maximum amount of participation of the Company by cash - 10 million USD.

Participation in own subsidiary organizations/reorganization

In the case of presence of financial problems in subsidiary organization, Company in order to bring them in a competitive environment:- Increase the efficiency of their financial and economic activities;- Increase the return on assets, with the payback period not exceeding 10 years;

Terms and conditions of withdrawal from the project

- The Company withdraw from the equity capital of the joint venture no more than 10 years;- Retire with taking into account the time value of money with fixed discount rate or market value;

Item Conditions

CONDITIONS OF PARTICIPATION OF «NC «SEBC «TARAZ» JSCIN INVESTMENT PROJECTS


INVESTMENT PROJECTS OF THE

ZHAMBYL REGION REQUIRING INVESTMENT


INDUSTRIAL ZONE THE AGROPROCESSING LOGISTIC CENTER "TARAZ"

The purpose of the project: Creation of an industrial zone with placement about 20 enterprises for deep processing of agricultural productionInitiator of the project: Akimat of the Zhambyl regionCapacity: processing to 1 million tons of agricultural production/yearMarket: Kazakhstan, Russia, Belarus, Central Asia, European UnionTotal cost of the project: $488 millionNecessary investments:private investments - $390 million (construction of processing plants)Participation of the initiator: $98 million (construction of industrial infrastructure) Location: Zhambyl region, TarazRaw materials: Suppliers of agricultural production are located not further than 250 km in Zhambyl and Southern Kazakhstan areas of Kazakhstan, the Talas area of Kyrgyzstan and the Fergana area of UzbekistanCurrent status of the project : The land plot under construction of an industrial zone (370 hectares) was allocated, the feasibility study was developed, there is a state. examinationPossible measures of the state support: Infrastructure construction, subsidizing of an interest rate for the credits of banks, guaranteeing loans, joint financing


SPECIAL ECONOMIC ZONE "CHEMICAL PARK "TARAZ"

The purpose of the project: creation of a special economic zone, with placement of 16 enterprises for processing of local raw materials and production of export-oriented chemical production with high added costCapacity:

- 25 units of chemical production, including 8 innovative;- total production capacity is more than 2 million tons / year

Market: Kazakhstan, CIS and foreign countriesInitiator of the project: «SWF «Samruk-Kazyna» JSCTotal cost of the project: $2 687 million Participation of the initiator: public funds - $107 million (construction of infrastructure of SEZ)Necessary investments: private investments - $2 580 million (construction of plants in SEZ territory)Project location: Shu areaRaw materials: minerals of the region, natural gas of Zhambyl region, own production, importsCurrent status of the project: Presidential Decree was issued on the establishment of SEZ "Chemical Park" Taraz", a plot of land with an area 505 hectares was allocated, feasibility study of SEZ was developed, management company was created wi th the participation of Jurong (Singapore), negotiations were made with potential participants of SEZ, infrastructure of SEZ was startedPossible measures of the state support:Exemption from taxes for 25 years, cons t ruc t ion o f i n f ras t ruc tu re , allocation of the land plot, subsidizing of an interest rate for the credits of banks, guaranteeing loans, joint financing


The purpose of the project: Reconstruction of generating capacities and auxiliary constructions for increase of efficiency of the enterpriseInitiator of the project: “Tarazenergotsentr” JSC /Akimat of Zhambyl regionCapacity:

- electrical: 125 MWt- thermal : 482,5 Gcal/hour- annual output of electricity: 765 million kWh - annual output of heat: 623 thousand Gcal

Participation of the initiator: operating assets of the enterprises (production base, infrastructure, etc.)Necessary investments: private investments - $193,8 millionTarget of investments:

- CIW: $37,1 million- equipment: $124,3 million- miscellaneous: $32,4 million

Location: TarazRaw materials: natural gasInfrastructure and resources: the project is provided with necessary infrastructure and resourcesEquipment/technologies: The first use of steam-gas installation for development of electro and heat power is provided by the project in KazakhstanBasic indicators of project efficiency:

- selling tariff for electricity: 8.8 tenge/ kWh (excluding VAT)- selling tariff for heat: 3400 tenge /Gcal (excluding VAT)- the cost of delivered products: $47.8 million, including- electricity: $36.4 million- heat: $11.4 million- payback period: 11.5 years- IRR: 15%- NPV: $68 million

Basic calculation requires adjustments as financing conditions changeCurrent status of the project: The feasibility study of the project was developed, the TPS-4 is the basic source of heat in TarazPossible measures of the state support: Sale warranty of heat, joint financing through “NС" SEBC“Taraz” JSC, a payment for management etc..

RECONSTRUCTION AND EXPANSION OF THERMAL POWER STATION TPS-4


TRANSPORT AND LOGISTICS CENTERBASED ON THE INTERNATIONAL AIRPORT "AULIE-ATA"

The purpose of the project: Creation of the transport and logistic center on the basis of the international airport "Aulie-Ata" Taraz (reconstruction of the passenger terminal, creation of a cargo of the terminal of a class A, the logistic and cargo companies, expansion of geography of flights, purchase of special equipment)Initiator of the project: JSC "Airline" Scat "Project capacity:

- passengers: 200 - 250 people / hour;- cargo: 10 tons / year.

Total cost of the project: $11,3 millionParticipation of initiator: Own funds – $ 3,6 million, the operating assets of the enterprise (the airport, infrastructure, etc.)Necessary investment: $7.7 million (debt)Purpose of investment:

- cargo terminal (A)- equipment - $2.7 million, construction - $5.3 million- air terminal complex: equipment - $1.3 million, construction - $6.4 million

Location: Taraz, Airport "Aulie-Ata« Domestic passenger transport: Astana, Almaty, Aktau, Atyrau,, KaragandaInternational passenger traffic: Moscow, Istanbul, Urumqi, DubaiCargo and passenger transit: Tajikistan / India - Russia, Southeast Asia - Europe, Middle East – SiberiaMajor airlines: Airline «SCAT», «Transaero» «Tajik Air"East Air", cargo and charter airlinesAdditional information: the project assumes reconstruction of the passenger terminal, creation of a cargo of the terminal of a class A, the logistic and cargo companies, expansion of geography of flights, purchase of special equipment, etc.Project performance indicators:

- NPV: $21,8 million- IRR: 59%- Payback period: 2.5 years

Current status of the project:The feasibility report of the project on development stages, in 2013 constructed a new runway, reconstruction of the passenger terminal, of 6 200 sq.m, capacity - 200 passengers / is conducted hour.


ROADSIDE SERVICE COMPLEXES

The purpose of the project: Creation of roadside service of category B and C along the highway of Zhambyl area «Western Europe - Western China»Sales markets: Transport stream – up to 10 000 cars/days, length of Zhambyl site is 495 kmTotal cost of the project: approximately $2 millionRequired investment: private investments up to $2 millionProject location: to the direction of «Almaty – Shymkent» on the territory of Zhambyl region, with extent of 495 km:

- Korday region - 2 objects (category B and C);- T.Ryskulov region - 1 object (category В);- Zhualy region - 1 object (category C).

The main objects of complexes: Category B - hotel, catering, auto gas station, parking, service station, a tourist center, a medical centerCategory C - catering, gas station, parking, service station, a tourist center, a medical centerCurrent status of the project: construction of at least 8 complexes is planned, investors are found on 4 complexes, the rest needs investorsPossible measures of state support: Sale / lease of land - 3 hectares, interest rate subsidies on bank loans, loan guarantees, co-financing of projects


CREATION OF A MOUNTAIN, CHEMICAL AND METALLURGICAL COMPLEX ON THE BASIS OF A TITANIUM MAGNETITE TYMLAY FIELD

The purpose of the project: Creation of a mountain and chemical and metallurgical complex on the basis of a titanium magnetite Tymlay fieldInitiator of the project: “Tenir-Logistic” LTD Production and capacity of production:

- dioxide of the titan the pigmentary:45 000 tons/year (a scope - paint and varnish, paper and chemical industry);

- silicon dioxide: 10 000 tons/year (a scope - rubber, electrotechnical and others);

- vanadium pentoxide: 650 000 tons/year (release of special types of steel);

- special types became: 190 000 tons/year (the vanadisty - -rail and pipe steel, wearproof steel).Market: Kazakhstan (5%), Russia, (85 %), Other (10%)Total project cost: $360 millionmining and processing complex: $ 120 mln;

- chemical complex: 130 mln- electro-metallurgical complex: $ 110 mln

Necessary investments: $ 240 mlnParticipation of the initiator: $ 120 mln. innovative technologies, rights for subsurface useRaw materials: field of titanium magnetite Tymlay ores (stocks of 227 million tons, security with raw materials more than 50 years)Place: Korday (mining and processing works), Shu , SEZ "Chemical park "Taraz" (chemical and eletro-metallurgical complexes)Justification:

- lack of production of pigmentary dioxide of the titan in the countries of the Customs union;

- existence of considerable raw material resources in the region;- use of new environmentally friendly, highly profitable and almost waste-

free technology;- existence of a perspective and extensive sales market.

workplaces: during construction: 1 200 - 1 500; during operation: 500 – 700Current state of the project: production technologies are developed, the first products exceeding GOST indicators according to characteristics are received, development of the feasibility report comes to the end


FABRIC PRODUCTION

Purpose of the project: Expansion of production, the creation of fabric production.Initiator of the project: ТОО «Fabrica POSH-Taraz» Sales market: Kazakhstan, CIS and EuropeCapacity: 300 thousand pairs of shoes / yearTotal cost of the project: $3 millionNecessary investment: $2 million (equity, debt)Participation of the initiator: operating assets of the company (manufacturing base, infrastructure and etc.), co-financingRaw material: TOPS and own production of yarnsLocation: Taraz Current status of the project: operating companies, project is in the development stagePossible measures of state support: Subsidizing interest rates on bank loans, loan guarantees


PROCESSING OF SOLID WASTE

The purpose of the project: Construction of a plant for processing of solid waste and production of by-products Initiator of the project: Akimat of TarazRaw materials: Polygon with an accumulated volume of up to 2 million tons of MSW, annual accumulation consists up to 50 tons of MSW. Project capacity: MSW processing at least 50 000 tons/yearMarket: Taraz.Total cost of the project: Approximately $40 million (depending on the technology) Required investments:Project f inancing, private investments – $40 million (depending on the technology)Participation of the initiator: government grantsLocation: TarazTechnology: techno logy w i t h o u t u s e o f M S W incinerationCurrent status of the project: searching for investors, plot of land is definingPossible measures of state support: construction of infrastructure, the allocation of land, interest rate subsides on bank loans and collection of solid waste, loan guarantees, co-financing


INCREASING WIND POWER PLANT CAPACITY

The purpose of the project: Increasing existing capacity of wind power plants (WPP) in Zhambyl from 1.5 MW to 21 MWInitiator of the project: «Isen-su» LLPCapacity:

- capacity: 21 MW- generation of electricity: 48 million Kwh

Market: regions of KazakhstanTotal cost of the project: $31,2 million, including

- development of design estimate: $1,2 million- construction and assembly work: $4,5 million- equipment: $23 million- miscellaneous expenses: $2,5 million

Required investment: $31,2 million (loan)Participation of the initiator: operating assets of the company, co-financingThe place of supply: Kordai areaCreation of new jobs: 10 jobsCurrent status: feasibility study of the project was conducted, land plot of 27 hectares is allocated, wind power plant of 1.5 MW is operating Possible measures of state support: interest rate subsidies on bank loan guarantees, loan guarantees, long-tern tariff for 15 years 22.68 KZT/kWh.


INCREASING CAPACITY OF SOLAR POWER STATION

The purpose of the project: Increasing existing capacity of solar power station in Zhambyl region from 0.5 MW to 7.0 MWInitiator of the project: LLP "KazEkoVatt" Capacity:

- capacity: 7.0 MW- power generation: 10 million kWh/hour

Sales markets: regions of KazakhstanTotal cost of the project: $13 millionRequired investments: $13 million (loan funds, equity)Participation of the initiator: current assets of the company, co-financingLocation: Kordai area, OtarCurrent status: Feasibility study of the project is developed, land plot of 14.25 hectares is allocated, operating solar power plant of 0.5 MWPossible measures of state support: interest rate subsidies on bank loan guarantees, loan guarantees, long-tern tariff for 15 years 34,61 KZT/kWh.


PRODUCTION OF SODA ASH

The purpose of the project: Production of soda ashInitiator: Akimat of Zhambyl regionCapacity: 400 thousand tons / yearMarket: Kazakhstan, CISTotal project cost: $274 million, including:

- construction and assembly work: $129 million;- equipment: $145 million

Required investment: $274 million (private investments)Location: Talas regionRaw materials and infrastructure:

- rock salt: Sorkol deposit (reserves - 1,93 billion tons, content NaCl - 66%);- limestone: Aksai deposit (reserves - 12.7 million tons), Aktau and Aktau-1;- gas: from operational gaseous area of Talas;- electricity: from LLP «Zhambyl electrical networks»- water: drinking from May-Tobe, Tamdin, and Koktal fields, manufacturing

from Biliykol field, underground from Akzhar field- other raw materials: ammonia, sodium sulfogidrat, mazut - imported

Commodity output: $89.2 millionNumber of new jobs: 950 peopleEconomic indicators:

- net income: $29 million- discount rate: 7,5%- net profit: $92,5 million- payback period: 10 years- internal rate of return: 11,78%- profitability index: 1,39

Possible measures of state support: Construction of infrastructure, subsidizing the interest rate on bank loans, loan guarantees, co-financing of the project


PLANT FOR RECYCLING OF PET

The purpose of the project: Construction of a plant for recycling of PET Initiator of the project: «Kaskadstroy TIA» LTD Raw materials: secondary materials, the PET-bottles which were in use, wasteCapacity: 6 000 tons of PET-granules/yearSales market: KazakhstanTotal project cost: 10 million Euro, including

- construction and assembly work: 1,4 million Euro- equipment: 8 million Euro - working capital: 0,6 million Euro

Necessary investments: 10 million Euro (borrowed funds)Participation of the initiator: intangible assetsLocation: TarazJustification:

- absence of local producers;- needs of the market for PET-granules are satisfied due to import from

China, France and South Korea;- the volume of import makes up to 77 thousand tons PAT granules/year

(about 92 million Euro).Indicators of efficiency of the project:

- IRR: 116%- payback period: 5 years

Equipment/technology:Equipment of the companies: Buhler, Bruer, HerboldCurrent status of the project: The land plot with infrastructure, the business plan is developedPossible measures of the state support: Funding of an interest rate for the credits of banks, loan guarantees, co-financing


CULTIVATION OF VEGETABLES BY USING PIVOTS

The purpose of the project: Cultivation of vegetables by using PivotsInitiator: LLP «Lugovskoy konny zavod»The volume of production in monetary terms: $7.2 million/year Total cost of the project: $3.8 millionRequired investment: $1.7 million (loan) Participation of the initiator:

- own funds: $ 2.1 million- infrastructure (road and electricity supply is available)

Market: regions of Kazakhstan, exportPeriod of realization: 2014 - 2015 yearsCreation of new jobs: 10 new jobs in the period of operationProject location: Zhambyl region, T. Ryskulov, KogershinRaw materials: seed of grain, fodder, and oil cultivationCurrent status: Obtaining permission documentsPossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses


EXPANSION OF HOG - BREEDING COMPLEX

The purpose of the project: Expansion of pig – breeding complex to 60 000 headsInitiator: LLP «Lugovskoy konny zavod»The volume of production in natural terms: pork meat - 4000 tons/yearThe volume of production in monetary terms: $ 15.1 million / yearTotal cost of the project: $ 5.4 millionRequired investment: $ 4 million (loan) Participation of the initiator:

- own funds: $ 1.4 million - operating hog – breeding complex of 30 000 heads- infrastructure (road and electricity supply is available)

Market: regions of Kazakhstan Period of realization: 2014 - 2015 yearsCreation of new jobs: 80 new jobsProject location: Zhambyl region, T. Ryskulov area, KogershinRaw materials: young pigs received in its own reproducerCurrent status: project is at the design stagePossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies of production expenses


RAISING OF STURGEON

The purpose of the project: Raising of sturgeon in the recurculation systemInitiator: LLP «Lugovskoy konny zavod»Project location: Zhambyl region, T. Ryskulov area, KogershinCapacity:

- sturgeon: 60 tons/year- caviar: 2 tons/year

The volume of production in monetary terms: - sturgeon: $1.2 million- caviar: $1.6 million

Total cost of the project: $3.5 millionParticipation of the initiator: $0.6 million Required investment: $2.9 million (equity, borrowings)Creation of new jobs: 60 new jobs in the period of construction, 12 new jobs in the period of operationCurrent status of the project: basic equipment installation is conducted, commissioningPossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies for production costs


CONSTRUCTION OF PLANT FOR PRODUCTION OF MIXED FEED

The purpose of the project: Construction of plant for production of mixed feedInitiator: LLP «Lugovskoy konny zavod»Location: Zhambyl region, T.Ryskulov area, KogershinCapacity: mixed feed – up to 15 tons/hourThe volume of production in monetary terms: $8.2 million/year Total cost of the project: $1.3 millionParticipation of the initiator: $0.4 millionRequired investment: $0.9 million (equity, loan)Market:

- estimated annual demand of Zhambyl region is up to 570 tons of feed/year

- during the Soviet Union, Kazakhstan produced up to 4 million tons of feed per year and was the 4th largest producer of animal feed and the third largest producer of feed for the birds of the former Soviet republics. Number of new jobs:

- period of construction: 20 new jobs - period of operation: 13 new jobs

Current status of the project: Design stage and development of documentsPossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies for production costs


ROLLED METAL

The purpose of the project: Expansion of production, organization of rolled metals for production of structural metal productsInitiator: JSC “Zapchast"Products:

- steel reinforcement; - channel;- corners

Capacity: 300 tons / yearSales market: Kazakhstan, neighboring countriesTotal cost of the project: $34 millionRequired investment: $34 million (loan)Participation of the initiator: operating industrial base, infrastructure, personnel, etc.Raw materials: billets (blooms) of own productionSales market: TarazCurrent status of the project: project is at the design stage, there is an operating manufacture to produce metal blanks for metalPossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies of production expenses


The purpose of the project: Expansion and modernization of foundry manufactureInitiator of the project: JSC “Zapchast"Products:

- brake discs and drums, body parts of hydro system and transmissions, clutch pressure plate (for the automotive industry);

- locomotive and pasture brake pads, suspension, anchor, mono regulator (for railway industry);

- storm grate, housing cable mounting on bridges and tall buildings (for construction industry)Capacity: 24 tons / yearSales market: Kazakhstan, neighboring countriesTotal cost of the project: 4.1 million Euro Required investment: 3,3 million Eurо (loan) Participation of the initiator: 0,8 million EurоProject location: TarazCurrent status: project is at the design stage, there is an operating manufacture to produce metal blanks for metalPossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies of production expenses

FOUNDRY MANUFACTURE


MODERNIZATION AND EXPANSION OF THE POULTRY FARM LLP "ZHAMBYL KYS"

The purpose of the project: modernization and expansion of the existing poultry farm an egg directionInitiator of the project: LLP "Zhambyl kys"Project capacity: up to 58 million eggs in a yearSales market: regions of Kazakhstan and exportThe total project cost: 4,9 mln.USD.Required investments: 4,9 mln.USD.The participation of the initiator: fixed assets (production base, infrastructure, etc)Description of the production base:

- land plot with an area 9.5 hectares;- 8 poultry houses 12х96 m and 4 m poultry house 18х96 m;- 2 hatchery building;- feed mill, with a capacity of up to 3 tons/hour;- 3 water supply wells;- 2 an electrical substation 400 kW;- network of telecommunications;

Location of the project: Zhambyl region, Baizak district, v.KoktalCurrent project state: business plan is developed, identified equipment suppliers, are being reconstructed buildings, there is the current workforce in the number of 76 people


EXPANSION OF MILK PROCESSING CAPACITY

The purpose of the project: Expansion of milk processing plant capacityInitiator: «Burnensky Syrzavod» LLPLocation: Zhambyl region, Baurzhan Momyshuly areaCapacity:

- rennet cheese: 300 tons/year- butter: 100 tons/year- natural ultrapasteurized milk: 12 million liters/year

The volume of production in monetary terms: - rennet cheese: $1,8 million/year - butter: $600 thousand/year - natural ultrapasteurized milk: $ 1 million/year

Total cost of the project: $1.9 millionParticipation of the initiator: $0.8 million, operating manufacture, infrastructureRequired investment: $1.1 million (equity, loan) Market: regions of KazakhstanNumber of new jobs: 80 jobsCurrent status: there is a business plan, searching for investors, operating manufacturing basePossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses


MODERNIZATION OF GAS PROCESSING PLANT

The purpose of the project: Upgrading the existing gas processing plant with new equipment and technology to meet product standards of EURO 4Initiator: LLP "Amangeldy GPZ"The volume of production in natural terms: 180 000 tons/year, including

- light distillate: 27 000 tons / year (15%) - kerosene fraction: 36 000 tons / year (20%) - diesel: 45 000 thousand tons / year (25%) - mazut: 72 000 tons / year (40%)

Total cost of the project: $54 millionNecessary investment: $54 million (loan) Number of new jobs: 150 new jobsEconomic indicators:

- payback period: 5 years- period of realization: 3 - 5 years- efficiency: PI > 1

Location: Zhambyl region, Zhambyl area, AsaRaw material: crude oil from Kyzylorda and Aktobe regionsMarket: regions of KazakhstanCurrent status of the project: stage of project development, all the permitted documents are availablePossible measures of state support: Subsidizing interest rates on bank loans, loan guarantees


DEVELOPMENT OF GAS FIELDS

The purpose of the project: Production and processing of inert gases (nitrogen and helium) and production of mineral fertilizersInitiator of the project: «Amangekdi Gaz» LLPcapacity:

- nitrogen: 176 million Nm3/year- helium: 1 222 thousand Nm3/year- carbamide: 5 500 thousand tons/year

Raw materials: fields Ucharal, Kempirtobe, the Western Ucharal and Northern Ucharal, the content of gases - nitrogen of 96% and helium of 2%Market: Kazakhstan, China (30-60%)Total project cost: $ 360 million, including:

- building of Cryogenic installation: $ 60 million (fixed assets – $ 42 million, - replenishment of current assets – $18 million);-construction of chemical fertilizers plant: $300 million (fixed assets - $210

million, replenishment of current assets - $90 million).Necessary investments: $ 360 millionPlace: Zhambyl region, Talas, in 120 km in the southeast from the regional center TarazIndicators of efficiency of the project: Payback period of cryogenic installation of 2 years, chemical fertilizers plant - 3 yearsCurrent state of the project: The feasibility report of the project is developedPossible measures of the state support: Subsidizing of an interest rate for the credits of banks, joint financing of the project, guaranteeing loans, leading of industrial infrastructure


PRODUCTION OF BUILDING MATERIALS MADE OF GYPSUM

The purpose of the project: Construction of a plant for production of gypsum binder and dry building mixtures in accordance with European standards Initiator: JSC "Zhambylgips"Project location: Zhambyl region, Zhambyl areaCapacity:

- gypsum binder: 170 000 tons/year- dry mixes: 100 000 tons/year - microcalcite: 7 tons/hour- expanded perlite: 15 cub. meters/hour

Total cost of the project: $9 millionParticipation of the initiator: $4 millionRequired investment: $5 million (loan)Market: Kazakhstan, exports to Central Asia and RussiaRaw materials: Ulken Burultau and Kyzylbastau field (subsoil use contract №41 of 25.06.2003)Suppliers of equipment: Erisim Makina Machinery Industry Co.Infrastructure and Resources: road, transformer station, gas distributor stationCreation of new jobs: 56 jobsCurrent status of the project: state examination is conducted for the first phase of design work, second phase is at the stagePossible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses, infrastructure construction


CONSTRUCTION OF A PLANT FOR DRYING FRUITS AND VEGETABLES

Purpose od the project: Construction of a plant for drying fruits and vegetablesStrategic partner: «Dry Food» company (Russia)Total cost of the project: $1,5 millionNecessary investment: $1,4 millionParticipation of the strategic partner: $0,1 millionProducts: organic food concentrates (dry ingredients)Market: regions of Kazakhstan, Russia Number of new jobs: 31 new jobsLocation: Zhambyl regionRaw materials: vegetables, fruits and other crops, residues of products in storage, distribution centers and processing plants Advantages of the project:

- guaranteed equipment («Dry Food» company)- life of the product is up to 3 years- final cost is 3-4 times higher than raw material cost- up to 90% of the vitamin savings- low production cost

An expediency substantiation of the project:- the amount of fruits and vegetables in the region: 602 500 tons, while the

needs of the region: is 205 800 tons- excess: 396 700 tons- no competition in the region

Efficiency (at 75% loading):- the profitability index: 3,47- internal rate of return : 52%- modified internal rate of return: 28%- payback period: 2 years- discounted payback period: 2,3 years

Possible measures of state support: Subsidizing interest rates on bank loans, loan guarantees


CONSTRUCTION OF KINDERGARTENS

Project name: Construction and operation of kindergartens in Taraz and settlements of Zhambyl regionThe purpose of the project: provision with preschool servicesProject initiator: SI “Healthcare department of Zhambyl region” Capacity: 320 placesTotal cost of the project: 6 billion tengeNeeds: development of concessionary offer, feasibility study, design specifications and estimates. The estimated cost of the feasibility study - 14,5 million tengeGPP model: WTO "Construction - Transfer - Operation”Object parameters:Land area - 1.25 haKindergarten floors - 3 floorsConstruction period: 1 yearConcession period: up to 30 yearsPreliminary performance indicators:

- NPV: 1 120 million tenge- IRR: 18,9%

Government support arrangements:- land grants- consumption warranty

Sources of compensation and income:- preschool services- additional paid services (study groups)- compensation for investment expenses- income from state order


CONSTRUCTION OF MULTIDISCIPLINARY HOSPITAL

Project name: Construction and operation of a multidisciplinary hospital in Taraz and settlements of Zhambyl regionPurpose of the project: provision of affordable and qualitative health care servicesInitiator of the project: SI «Healthcare department of Zhambyl region»Capacity: 300 bedsTotal cost of the project: 7 300 million tenge Needs: development of concessionary offer, feasibility study, design specifications and estimatesGPP model: WTO, WCO, SBIConstruction period: 1 yearConcession period: up to 30 yerasObject parameters:Plot area: not less than 6 haFloors of multidisciplinary hospital: 3 floorsPreliminary performance indicators:

- NPV: 6 900 million tenge- IRR: 17,4%

Government support arrangements:- land grants- consumption warranty

Sources of compensation and income:- guaranteed volume of free medical care- income from paid medical services- income from paid non-medical services- compensation for investment expenses- compensation for operational expenses- remuneration for management


HISTORICAL AND CULTURAL ZONE «KONE TARAZ»

The essence of the project: Creation of the largest tourist complex in the city of Taraz, which consists of the archaeological park and service objects to serve tourists with the formation of new of stages in Zhambyl regionThe purpose of the project:1.1. Preservation of historical and of cultural heritage of the region1.2. Creation of tourism cluster in Zhambyl region1.3. Formation of a new tourism brand in the regionThe project components "Kоne Taraz":1. Archaeological Park - 10 hectares (archaeological site, the pavilion, the museum complex, an extensive network of footpaths with green areas, etc..)2. Tourist Area - about 8 hectares (hotels, retail outlets, restaurants and cafes, market, sauna, hammam, a city-masters and others. - All in a single ancient Eastern-style).Funding for the project "Kоne Taraz":1. The republican budget - 5 620 mln. (Archaeological, restoration work accomplishment of, construction of the museum and memorial complex settlement infrastructure)2. Of the regional budget - 3 744 mln.(cost of servicing the archaeological zone)3. Funds of private investors - investment in the construction service objects: hotels, tourist facilities, entertainment complexes, shopping malls, commercial tours


BUILDING SHOPPING AND ENTERTAINMENT MEGA-CENTER «AQUATIKA» IN CITY TARAZ

Purpose od the project: building shopping and entertainment mega-center «AQUATIKA» in с. TarazInitiator of the project: ТОО «AQUATIKA»Components SEC: trading rooms, swimming pool, restaurant, movie theater, gym, bowling, billiards, a sports complex, children's playgrounds, SPA-salons, conference rooms, hotel rooms (economy, luxury, VIP)Capacity: visiting at least 5 000 people per dayPeriod of realization: 2015 - 2017 yearsOverall value of the project: tentatively $ 200 millionNecessary sum: tentatively $ 200 million Structure of financing: own and borrowed funds investorsSales market: population of the region and the regions of Kazakhstan, foreign touristsProject location: c. TarazThe uniqueness of the project: lack of analogues in KazakhstanRequired the area of land: till 20 hectaresQuantity of new jobs: about 1000 workplaces


THE RECREATION AREA ON THE COAST OF LAKE BALKHASH

The purpose of the project: Creation of the recreation area of international importance on the coast of Lake Balkhash.Objects of the recreation area: Entertaining and cultural tourist objects, children's game zones, parking, hotel, cafe Total cost of the project : determined by the investorTarget direction of investments: Construction of business, cultural, entertaining and sanitary objects, children's game zone, parking, hotels, cafe.Location: Along the coast of Lake BalkhashPossible measures of state support: feasibility study for the construction of engineering infrastructure at the expense of the state budget, issuance of land for construction of facilities for investors, interest rate subsidies, loan guarantees

CARAVANSERAI «TORTKOL»

The purpose of the project: Recreating medieval Caravanserai “Tortkol”, creating a tourist centerTotal cost of the project: $0,8 millionRequired investment: $0.8 million (private investments)Target direction of investment: Construction of cafes, shops and oriental market of medieval style.Project location: TarazCurrent status: infrastructure was conducted