invest in south kazakhstan_eng
DESCRIPTION
kazakhstanTRANSCRIPT
SOUTH KAZAKHSTAN OBLAST
логотип
ABOUT THE REGION
100,0% 99,2%
48,0% 46,1%
22,9% 16,8% 16,7% 24,9%
15,0%
Share of SKO in total output of Kazakhstan
Area 117,249 km2
Population 2,642,700 people.
Urban population 40%
The capital city Shymkent
GDP per capita $ 3,700
Average salary $ 488
Economically active population 1 158.8 thousand
Higher education institutions 12
Students 77.7 million
логотип
MAIN INDICATORS
№ Data Measure 2006 2007 2008 2009 2010 2011
1 Consumer Price
Index by SKO
%, end of period, in
December last year 108, 8 123, 6 109, 1 106, 0 108,0 106,1
2 Average salary tenge 27 586 36 707 41 679 48 610 57 545 64 399
3 Investments in to
main capital mln.tenge 84 542 127 175 203 213 319 043 262 595 171 270
-of which foreign
investment mln.tenge 12 278 31 242 67 228 161 504 60 983 31 482
логотип
LIGHT INDUSTRY
The region is a center of implementing the cotton and textile cluster:
More than 50 cotton-processing, textile and garment enterprises
The volume of production of textile products in SKO - 9 300.00 mln.
The share of SKO in the volume of textile products and garments produced in Republic of Kazakhstan - 51.8%
The share of textiles in the industrial structure of SKO- 3.4%
The number of workers in the industry - 5,886 people
The level of labor productivity - $ 25.6 million
Investments in fixed capital industry - 972.84 mln
An increase in output by 1 tenge investments - 1.10 tenge
The large enterprises of cotton and textile industry:
• JSC "Utex"JSC "Melange“
• LLP «SOUTH TEXTILINE KZ»
• LLP "ginneries"LLP «Oxi Textile»
• LLP "Garment factory" Gauhar “
• LLP "Hlopkoprom-cellulose"
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MINING INDUSTRY
The volume of production of mining in SKO - 10 070.50 mln
The share of the mining industry in the industrial structure SKR - 24.1%
The number of workers in the industry - 6,669 people.
The major minerals SKO:
• Uranus
• Lead
• Zinc
• gas fields
• Gold-objects
• commonly occurring minerals
• Fresh and thermal water
Large mining companies of SKO:
• LLP “JV" Betpak Dala “
• LLP “JV" Katko”
• LLP “Taukentskoe GHP”
• LLP “Stepnoe-RU”
• LLP “Mining Company”
• LLP “JV" Inkay”
• LLP "Ferrum-Ftor"
логотип
PHARMACEUTICAL INDUSTRY
Dynamically developing industry at the regional level:
21 companies Pharmaceutical manufacturers in SKO
106 86,6 million tenge Production volume of pharmaceutical products in SKO
49,3% The share of SKO in the volume of pharmaceutical production in Kazakhstan
3,5% The share of pharmaceuticals in the industrial structure of SKO
1300 people The number of workers in the industry
$36,6 thousand The level of labor
405,52 million tenge Investments in basic capital industry
2,10 tenge An increase in output by 1 tenge investments
Large companies in the pharmaceutical industry:
• JSC «Khimpharm»
• «Zerde-phito» LLP
• «Rauan» LLP
логотип
MECHANICAL ENGINEERING
Dynamically developing industry at the regional level:
35 companies Manufacturers of the machinery sector in SKO
21 563,20 million tenge The volume of production of the engineering industry in SKO
4,2% The share of SKO in the volume of engineering industry in Kazakhstan
8,90% The share of mechanical engineering in the industrial structure of SKO
3 500 people The number of workers in the industry
$ 12,4 thousand The level of labor
1 268,1 million tenge Investments in basic capital industry
2,09 tenge An increase in output by 1 tenge investments
Large companies in the engineering industry :
• JSC «Kentau transformer plant»
• «Ak Beren» LLP
• ТОО «Завод Электроаппарат»
• JSC «UKMZ»
• JSC «Excavator»
логотип
AGRICULTURAL SECTOR
Agriculture - one of the key sectors of the economy of SKO:
2,5 thousand Agricultural enterprises
69,5 thousand Farms
246,2 billion tenge The volume of production of the agricultural industry in SKO
8,4% (1place) The share of SKO in the volume of agriculture in Kazakhstan
99 387,8 million tenge The share of livestock in the industry
112 574,1 million tenge The share of crop production in the industry
логотип
RENEWABLE ENERGY SOURCES
Baidibek and Tulkibas rayon (district) SKO
Planned to install:
60 wind generators by 1MW each one
Further it is planned to increase till:
150 wind generators by 1MW each one
Solar potential of Suzak rayon (district:
2200-3000 Hours of sunshine annually
1000-1200 W/m2 of solar radiation energy density
7,6 часов Payback period
Geothermal energy :
24 hours 365 days per year Ability to use
2 years Payback period
логотип
3 main reasons to
invest in South Kazakhstan
1. The favorable investment climate
• Political and social stability
• Government support and investment guarantees (Kazakhstan signed agreements on mutual protection of investments)
2. Resources
• Ground resources
• Large reserve of mineral resources (№ 1 uranium producer in the world)
3. Market
• The location between 3 countries of BRICS (Russia, China and India)
• The growth of markets due to entry into the Customs Union of Kazakhstan, with the potential sale of 170 million people.
• Completion of construction of the international road corridor "Western Europe - Western China"
• The average annual population growth of SKO is 9%
логотип
Investment projects
Name of the project Required investments
Construction of small hydropower plants
USD 224 mln.
Construction of Solar Power Plant
T 7,5 bln.
Construction of Wind Power Plant
USD 86 mln.
Construction of metallurgical plant T 15 000,0 mln.
Plant for production of base oils T 139 950 mln.
Tourist recreation center “Kaskasu”
USD 229,9 mln.
Manufacturing of 110-220 kV voltage power transformers USD 30,0 mln.
Special Economic Zone «Ontustyk»
No restrictions
логотип
The purpose and idea of the project: The use of renewable energy sources
and reducing capacity deficit
Applicant: LLP «Discover», LLP «Aksu-Energo», LLP «KazBelt»,
LLP «Kelesgidrostroi», LLP «Munay Investment Group»
The period of implementation: 2013-2019 years
Place of implementation: South Kazakhstan Oblast
The total cost of the project: 224 million dollars
The financing scheme: Equity - 0% - 30% and necessary investments – 70%
- 100%
Required investments: 156,8 million dollars
The expected result: The production of electricity from renewable energy
sources, employment, tax revenues
Current state: There is a feasibility study, design estimates, available state
act on land
Payback period 7-10 years
Availability of documentation: feasibility study, design estimates,
state act on land
Productivity: 44,73 MW
Advantages: The use of renewable energy sources
Infrastructure and Resources: There is
Sales market: domestic market – 100%
Creating jobs: 691
Construction of small hydropower plants
логотип
The purpose and idea of the project: The use of renewable energy
sources and reducing capacity deficit
Applicant: ТОО «Promondis Kazakhstan»
The period of implementation: 2013-2014 years
Place of implementation: South Kazakhstan Oblast
The total cost of the project: 7,5 Billion dollars
The financing scheme: Equity - 0% - 30% and necessary investments –
70% - 100%
Required investments: 5,25 Billion dollars
The expected result: The production of electricity from renewable
energy sources, employment, tax revenues
Current status: There is a feasibility study, design estimates, available
state act on land
Payback period 7-10 years
Availability of documentation: feasibility study, design estimates, state
act on land
Productivity: 20 MW
Advantages: The use of renewable energy sources
Infrastructure and Resources: There is
Sales market: domestic market – 100%
Creating jobs: 10
Construction of Solar Power Plant
логотип
The purpose and idea of the project: The use of renewable energy
sources and reducing capacity deficit
Applicant: LLP «Ontustyk Zharyk Tranzit»
The period of implementation: 2015 year
Place of implementation: South Kazakhstan Oblast
The total cost of the project: 86 million dollars
The financing scheme: Equity - 0% - 30% and necessary investments –
70% - 100%
Required investments: 60,2 million dollars
The expected result: The production of electricity from renewable
energy sources, employment, tax revenues
Current state: There is a feasibility study, design estimates, available
state act on land
Payback period: 9-15 years
Availability of documentation: feasibility study, design
estimates, state act on land
Productivity: 40 MW
Advantages: The use of renewable energy sources
Infrastructure and Resources: There is
Sales market: domestic market – 100%
Creating jobs: 10
Construction of Wind Power Plant
логотип
Advantages: virtually no competitors (there is only one company in the
Republic implementing full production cycle from mining of iron ore to
the production of metal products)
Infrastructure and Resources: Located in the industrial zone
"Ontustik"
Market: Domestic market - 60%, export - 40%
Job creation: 2000 permanent jobs, 1,000 people during construction
Construction of metallurgical plant
Aim of project: Construction of a metallurgical plant
Applicant: LLP «Ferrum-Vtor»
Period: 2011г. – 2015
Project location: South Kazakhstan oblast, Shymkent
Total cost of the project: 15000,0 million tenge
The financing scheme : Borrowings – 12 000 mln.tenge
Funding scheme: 3 000,0 million tenge. equity
Investments required: 12000 mln. Тенге
Expected result : Production of high quality metal products
Current status: The business plan is prepared, negotiations
with potential suppliers of equipment, carried out the selection
of experts, held talks with investors and banks for raising funds.
Payback period: 3 years
Production capacity: 250,000 tons of metal
Availability of documentation: Business plan is already
prepared
логотип
Advantages: absence of a plant producing base oils
Infrastructure and resources: all the basic utilities are available next to
the selected land area
Market: Domestic market - 50%, export - 50%.
Creating jobs: 2,000 permanent jobs, 1,200 people during the
construction
Plant for production of base oils
The purpose and the idea of the project: Investment project
for the production of base oils
Applicant: LLP «HILL»
Period: 2013– 2016
Project location: South Kazakhstan oblast, Shymkent city
Total project cost: 139,950 million tenge
Funding scheme: Borrowings - 110,840 tenge
equity - 29,110 million tenge
Investments required: 110,840 million tenge
Expected result: Employment, payment of taxes, import
substitution, increasing the proportion of local content in
the production of motor and transmission oils
Current Status: Work is underway on the preparation of
project documentation and approvals, the land issues are
removed
Payback period: 6 years
Production capacity: 750,050 tonnes a year of base oils
Availability of documentation: business plan is being
developed; preliminary negotiations have been conducted with
potential suppliers of equipment, selection of specialists is being
carried out, negotiations with investors and banks are taking
place on the matter of raising funds.
логотип
Tourist recreation center “Kaskasu”
Title of organization: Department of Tourism and physical culture and sport
of South Kazakhstan region
Address: Shymkent city, Madeli kozha 1
Head: Kyrykbayev Polat Nauryzbayevich
Title of the project: Creation of mountain skiing in Kaskasu gorge
The project location place: South Kazakhstan region, Tolebi
Date of project start: 2013-2017
Cost: 229,9 mln $ USA
Payback period: 10 years
Short description:
Tourist recreation center “Kaskasu”
Land plot area-900 hectares
Location of skiing pistes-from 1880 to 3155 m/(Shymbulak-from 2 260 to
3163 m.)
Average bias-from 16 to 38% (Shymbulak –from 12 to 28%)
Direction of skiing pistes- northern and northern-western
Net area of skiing pistes-130 hectares
логотип
Advantage: The absence of a plant for the production of transformers of
this power in Kazakhstan
Infrastructure: No
Market: Domestic market - 50%, export – 50%(CIS)
Job Creation: 800
Manufacturing of 110-220 kV voltage power transformers
Aim of the project: Manufacturing of 110-220 kV voltage
power transformers
Applicant: LLP «Azia Trafo» (LLP «Alageum Group»
(Kazakhstan) and JSHP Transformer (China))
Period: 2013г. – 2015гг.
Project: South Kazakhstan oblast, Sayram area (rayon)
Total project cost: $ 60 million
Financing scheme: LLP «Alageum Group» - 50%
and JSHP Transformer - 50%
Required investments: $ 30 million
Expected outcome: Employment, payment of taxes,
import substitution
Current status: Feasibility study, the land issues solved
Payback period: 7-8 years
Productivity: 2200 transformers per year (at its full production
capacity)
Availability of documentation: The feasibility study, the
memorandum between the LLP «Alageum Group»
and JSHP Transformer
логотип
Special Economic Zone «Ontustyk»
The aim of project :
• accelerated development of the region to strengthen the economy of
the RK entering into the global economic system;
• development of textile and sewing industry of the RK;
Implementation period: 2005 – 2030 years
Place of implementation: the South-Kazakhstan oblast, Sairam
region, Lenger highway, 7th km
Funding scheme: The Republican and local budget
Expected result: attraction no less than 50 billion Kazakhstan tenge
Home and foreign investments, creation more than 10 new enterprises,
creation more than 5 thousand new workplaces.
Current status:
Within the framework of State Program on force industrially-
innovative development of the Republic of Kazakhstan for 2010-2014,
next investment projects are realized in the territory of SEZ
«Ontustyk» :
• «Khlopkoprom-Cellulose» ;
• «Oxy Textile» LLP;
• «Kagaz Shahary SEZ» LLP;
• «Production company «AGF group» LLP
Advantages:
-Investors are fully exempted from corporate income tax, tax to
property and land tax;
- Profitable geographical position – proximity to the largest markets-
importers of the light industry production (Russia, China, India);
-The South Kazakhstan region is the unique one on the Customs Union
area, where the cotton is grown up;
-Expansion of commodity market to population of 170 million people
at the expense of the entrance into the One Customs Union.
Infrastructure and resources:
- All necessary engineering infrastructure is brought (electric power,
gas supply, telecommunication, water supply and sewerage system);
-Availability of raw materials resources;
-Availability of a transport and power infrastructure.
Contact details:
“Shymkent Innovation” LLP
Investors’ Service Center
+7 7252 99 5503
“Shymkent Innovation” LLP
www.shymin.kz