World Monitor Magazine, Economy WM_April 2019 web version (2) | Page 16

INVEST TO KAZAKHSTAN
At the same time, the committee is
constantly working to improve the ‘one
window’ principle. In the annual survey
for investors, one of the questions raised
is: “What else can we help you with and
where do you think it is necessary to
make improvements?”
Investors say that this principle allows
them to simplify the management of
their activities.
Today it is possible to submit an
investor's request online at invest.gov.kz,
as well as to provide consulting support.
The call centre ‘620-620’ operates 24/7.
In the future, it is planned to automate
the ‘one window’ principle, including an
e-Government basis, which will allow
obtaining all necessary documents
using an electronic digital signature.
Investment. Karaganda region.
In 2018, the region broke the record for
attracted investments, exceeding the
mark of 470 billion tenge. The authorities
set no less ambitious tasks for 2019. The
plans are to reach the figure of 520 billion
tenge.
The upward trend in foreign direct
investment has been observed in the
Karaganda region over the past two years.
In 2015-2016, the indicators dropped
by 10-15% annually. The high rate was
in 2014 – 400 billion tenge – due to
the construction of the Zhezkazgan-
Beineu railway line (chain). This had a
great economic effect, but there were
public investments involved. In 2016
investments amounted to 318 billion
tenge. In 2017 this trend was overcome:
we attracted 363 billion tenge. A year
later, the figure broke all records, reaching
470 billion tenge.
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Growth was mainly achieved by
attracting private investment and the
implementation of large projects. In 2018
eight facilities were launched with a total
value of 100 billion tenge.
This is the completion of the largest solar
power plant construction in Central Asia
by LLP Saran (32 billion tenge), a plant
for the production of cathode copper
by LLP Sary-Arka Copper Processing
(14.1 billion tenge), a plant for steel and
iron smelting by LLP Forever Flourishing
(Middle Asia) Pty Ltd (7.4 billion tenge),
the second stage of the gold extraction
plant by JSC AK Altynalmas and the
first stage of the wholesale distribution
center by Alfarukh LLP (5 billion tenge);
reconstruction of the ore-thermal furnace
No. 1 of the Zhezkazgan Copper Smelting
Plant by Kazakhmys Corporation LLP;
modernization
of
machine-building
production of Maker LLP (13.7 billion
tenge) and egg production of Karagandy
Kus LLP (2 billion tenge).
Now 45 large investment projects are
being implemented in the region totaling
2 trillion tenge, including 17 with foreign
capital of 1.4 trillion tenge.
Regional authorities individually select
government support approaches for all
major investors.
For example, Maker LLP was conducted
under the Productivity-2020 program,
due to which the equipment was
purchased at a preferential lease. Sary-
Arka Copper Processing LLP signed a
priority investment contract with the
state. As a result, the company received
an exemption from paying all taxes for
8-10 years, as well as a land plot without
tender and now has direct access to
the subsoil. Alfarukh LLP subsidized the
interest rate on the loan through Damu
fund and conducted the infrastructure at
the expense of the state.
To achieve this goal, the authorities intend
to continue work on the implementation
of existing projects and the launch of the
new ones.
Working with existing enterprises is also
important. We have to spur Arselor and
Kazakhmys so that they invest in the
renewal of fixed assets, safe production,
and ecology. This is subject to annual
sales and discussions. At the same time, a
number of major projects are scheduled to
launch in 2019. These are the Karaganda
plant of complex alloys (86 billion tenge),
the polymetal ore processing plant by
Alaigyr (64 billion tenge), the ferroalloy
plant by YDD Corporation (32 billion
tenge), the industrial gases production
plant by TNK LindeGroup (30 billion
tenge ), cable production plant by Hebei
Huatong Cable Group Co Ltd (14 billion
tenge) and others.
The Deputy Akim (mayor) of the
Karaganda region, noted that residents of
the region also feel the effect of all these
investments.
For example, Zhairemsky mining and
processing complex has already built a
mosque in the village, as well as repaired
the House of Culture. And, moreover, the
maintenance of the hospital was also
taken over: in addition to paying the salary
of each doctor, which varies between 60-
80,000 tenge, the company pays an extra
120-140,000 tenge.
According to Almas Aydarov, the stated
amount of 520 billion tenge is quite
achievable. And entrepreneurs are
advised to pay attention to the food and
manufacturing industries, as these niches
in the region are still free to be explored.
At the end of 2018, the number of active
SMEs increased by 51.4% from the 2014
level, with a plan of a 50% increase by
2020.