World Monitor Magazine #1 WM march 2018 (1) | Page 19

Invest to kazakhstan

Transport infrastructure

Kazakhstan has a large territory and is located at the junction of Europe and Asia , that is why the transport infrastructure plays an important role in the development of the economy of Kazakhstan and the region as a whole .

~ 520 billion tkm Freight turnover of all types of transport

~ 270 billion pkm Passenger turnover of all types of transport

By the type of transport

Railway Automobile Pipeline Air

Railway Bus Taxi Air

20 %

29 %

By the type of transport

8 %

4 % 7 %

16 %

• Kazakhstan plans to invest heavily in transport infrastructure under the Belt and Road Initiative

• The transport strategy of Kazakhstan until 2020 is aimed at increasing the transit potential of the land route from China to Europe via Kazakhstan

• The Government intends to increase the volume of transit 2-fold by 2020 and 10- fold by 2050 in comparison with the volume of 2012 ( 39.1 thousand tons ).

• In the coming years , major investments are planned in the air infrastructure to increase the volume of passenger traffic :

• In June 2017 a new terminal of the Astana airport was opened which increased the potential of passenger traffic from 3.5 to 8.2 million people per year

• Reconstruction of the additional terminal of the Almaty airport is planned for 2019 , and all 18 airports of the country will be brought into compliance with the requirements of the International Civil Aviation Organization

73 %

43 %

State support of Infrastructure

The allocation of budget funds in the framework of the Nurly Zhol State Program for Infrastructure Development for 2015 - 2019 on :

State support through a Public Private Partnership tool

Financing of infrastructure and industrial projects through the tools of the Baiterek National Managing Holding

Preferences under investment projects

Implementation of an investment project by sector of economy identified as priority for investment projects

Exemption from custom duties Customs duties 0 % up to 5 years on imported :

• major equipment and spare parts to it ;

• accessories , raw materials . VAT exemption on import

• Development of transport and logistics infrastructure

• Development of industrial infrastructure and tourism infrastructure

• Development of energy infrastructure

• Modernization ( reconstruction and construction ) of housing and communal services

• Strengthening of housing infrastructure

• Development of infrastructure in the field of education

• State guarantee for infrastructure bonds ;

• State guarantees on loans ;

• Transfer of exclusive rights to objects of intellectual property owned by the state ;

• In-kind grants ;

• Co-financing of concession projects during the investment period ;

• Guarantees of consumption by the state of a certain amount of goods , works and services produced during the implementation of the project ;

• Compensation of a certain amount of investment and operating costs .

• Debt financing ( Development Bank of Kazakhstan JSC )

• Shared financing ( Kazyna Capital Management JSC )

• Insurance coverage of export operations ( KazExportGarant JSC )

• Grant financing and subsidies ( National Agency for Technological Development JSC and Damu Entrepreneurship Development Fund JSC ).

State in kind grants Free land , buildings , structures , machinery and equipment , etc .

Electric power industry

Electric power industry is one of the most important elements of the fuel and energy complex .

• The total electricity production in 2017 will be about 11.5 billion kWh , 1.7 % of which are renewable energy sources

• The total electricity production exceeds consumption , however , the power system of Kazakhstan is characterized by uneven location of the facilities , and therefore in the Western and Southern parts of the country there is a shortage of electricity

• According to preliminary estimates , in order to avoid a power shortage in the southern region and a gas deficiency in the central and eastern regions , an investment of ~ 28 bln USD is needed .

• The Government aims to develop renewable energy generation . So , according to the plan , the share of renewable energy sources from the electricity generation should be 3 % in 2020 , 10 % in 2030 and 50 % in 2050 . supported by EUROBAK

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