Special economic zone «Qyzyljar»

The Department of Service Support of «NC  «KAZAKH INVEST» JSC at the site of the Akimat of the North Kazakhstan region held a seminar to explain the measures of state support for investment activities and support for entrepreneurship in the Republic of Kazakhstan.

The seminar was attended by about 60 representatives of the Kazakh business community, local executive bodies, socio-entrepreneurial corporation, management companies of special economic zones of North Kazakhstan, Akmola and Kostanay regions.

The speakers of the meeting were representatives of «NC  «KAZAKH INVEST» JSC, «Kazakhstan Center for Industry and Export «Qazindustry» JSC, «Center for Trade Policy Development «Qaztrade» JSC, «Development Bank of Kazakhstan» JSC, «Kazakhstan Center for Public-Private Partnership» JSC, International Financial Center «Astana».

During the meeting, the participants were provided with detailed information about the existing measures of state support for investments, a wide range of benefits and preferences, mechanisms for supporting investors within the framework of the investment ombudsman, etc.

In his welcoming speech, Deputy Department of Service Support of «NC  «KAZAKH INVEST» JSC Marat Yessenov, spoke about the three-level system of attracting investment, which includes foreign institutions of the Republic of Kazakhstan, central state and local executive bodies. According to him, KAZAKH INVEST at all stages of its work provides support not only to foreign businesses, but also to Kazakh project initiators.

«Our legislation does not divide investors into internal and external ones. Support is provided in the same way. We are ready to assist you in developing your initiatives for potential projects. The KAZAKH INVEST team is engaged in the support of investors on the principle of «One window» from information and legal support, the conclusion of an investment contract, to the organization of negotiations with government agencies and the solution of issues on the localization of projects in the regions of Kazakhstan», – said Marat Yessenov.

At the same time, the head of the «one window» group of KAZAKH INVEST, Aigerim Koilakova, told the participants about the functionality of the service support system, which includes information and legal support, the conclusion of an investment contract and the organization of negotiations.

It is worth noting that KAZAKH INVEST is the investment front office of Kazakhstan, acting as a single negotiator on behalf of the Government. The company provides a full range of services to support investment projects from the initiative stage to the implementation stage. Moreover, as part of the service support for investors, KAZAKH INVEST provides assistance in solving visa and migration issues, as well as various current issues of existing enterprises.

A source: nkr.invest.gov.kz

Turkish investors, with support of National Company KAZAKH INVEST JSC and the Embassy of Kazakhstan in Turkey, have implemented an investment project for timber processing in the North-Kazakhstan region. Akim of the region Kumar Aksakalov, director of RCE Atameken Arman Urazgulov and regional director of KAZAKH INVEST for North-Kazakhstan region Daniyar Shalabayev took part in the opening ceremony of the enterprise.

The production organized on basis of the former workshop of the Petropavlovsk pipe plant. According to experts, about 18 thousand cubic meters of laminated plywood will be produced annually at the new plant with an area of ​​10 thousand square meters. The project, with total cost 2.2 billion tenge, will provide jobs for more than 150 people.

“A high percentage of localization is important for us. Therefore, basically, we are planning to buy Kazakh timber, which has high quality. The laminate will be producing and delivering from Germany. We purchase equipment from Turkey, Germany and Russia. We pay attention to the quality of our products. Therefore, we use advanced technologies for steaming, gluing and pressing. Today products from Russia are widely used in the Kazakhstan market. We hope that Kazakhstani products will be able to replace imported goods”, said Oguzkhan Celik, director of Northern Plywood Plant LLP.

The plant will use modern processing technologies, the whole process will be automated. Warehouses are also equipped on the territory of the plant.

“This plant will work to meet the demand not only in our region, but also for sales throughout the country. By attracting a foreign investor, a unique production will be created in the region. KAZAKH INVEST provided support at all stages of the project. In particular, with our assistance, the company has got an investment contract and received exemption from customs duties on the import of expensive equipment”, Daniyar Shalabayev said.

Laminated plywood is widely used in monolithic construction and for the manufacture of formwork. Such products are in great demand in the Kazakhstan’s market. This is the first project of this kind in the North-Kazakhstan region.

Source: https://invest.gov.kz/media-center/press-releases/2-2-mlrd-tenge-vlozhili-turetskie-investory-v-fanernyy-zavod-v-sko/

The United States of America, Kazakhstan, and Uzbekistan have announced the launch of the Central Asia Investment Partnership. 

The document signed in Nur-Sultan with the United States International Development Finance Corporation («DFC») provides financing for the implementation of joint investment projects for at least $1 billion.

The Central Asia Investment Partnership will advance private sector led projects that exemplify international standards for quality infrastructure and promote inclusive, transparent, and sustainable investments. In doing so, partners will maximize the success and positive impact of the projects and mobilize additional private investment to the region.

The Central Asia Investment Partnership is an important step in advancing U.S. efforts to support economic growth and prosperity for Central Asia. Working through the C5+1 platform, the initiative will seek to take advantage of opportunities for increasing trade, development, and connectivity to make each country in Central Asia stronger and more prosperous.

The Chief Executive Officer of DFC Mr. Adam Boehler highlighted that «The United States was the first to recognize Kazakhstan’s independence. I’m very proud of our partnership. Under the Central Asia Investment Partnership our goal is to drive jobs for people in Kazakhstan and increase income levels».

KAZAKH INVEST is working closely on investment projects with the American side over the past several years. In 2018, KAZAKH INVEST signed the investment memorandum with OPIC (predecessor of DFC). 2020 was intense in terms of structuring and presenting dozens of projects across various sectors to the project office of DFC. Creation of the Central Asia Investment Partnership is designed to facilitate implementation of the joint projects in such sectors as infrastructure, logistics, agribusiness, tourism, finance, and technology.

For reference: 

The U.S. International Development Finance Corporation (DFC) was established through the merger of Overseas Private Investment Corporation (OPIC) and Development Credit Authority (a former division of USAID). DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests in various sectors globally, including energy, healthcare, infrastructure development, agriculture, innovation and financial services. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in the emerging markets.

As part of the execution of the order of the Head of State on further support of investors and the introduction of a strategic investment agreement, since the beginning of this year in Kazakhstan, investors have been able to directly conclude an investment agreement with the Government in Parliament.

A number of amendments have been made to the Entrepreneurial and Tax Codes of the Republic of Kazakhstan aimed at improving the business environment and expanding investment incentives. The Government has also identified priority activities for investment agreements, as well as established norms that allow investors and the Government to come to a general agreement on the procedure for providing and a package of preferences in a targeted manner for each project.

The agreement provides for the stability of legislation for a period of 25 years, with a particular focus on tax and labor legislation.

The investment agreement opens up an opportunity for the effective implementation of large projects involving investments of at least 7.5 million-оf monthly calculation index ($ 51 million) in strategically important industries such as pharmaceuticals, agriculture, food production, medical devices, etc. Unlike the existing investment contract, large investors will be able to enter into agreements with the Government without following the standard or standard form. The procedure for providing and support tools will also be set individually in the agreement.

Under the investment agreement, strategic investors will be able to receive tax holidays in respect of corporate income tax, property tax, land tax, and value added tax if the project is implemented in the SEZ. In addition, investors can reduce their tax liabilities by up to 20 percent. In addition to tax holidays, the state will reimburse investors up to 20% of the cost of construction and installation work and the purchase of equipment.

It is worth noting that the ban on obtaining tax preferences under the investment agreement is provided for subsoil users and manufacturers of excisable goods.

Source: https://invest.gov.kz/media-center/press-releases/v-kazakhstane-sozdan-novyy-instrument-podderzhki-strategicheskikh-investorov/

The Agro Profi company, which provides heat supply to the objects of the North Kazakhstan region in the city of Sergeyevka, is a central boiler house and 3 schools, as well as in the city of Bulayevo (a central district hospital, 4 schools, a sports and recreation center and 3 residential buildings). The projects became possible thanks to the program of subsidizing support of energy service initiatives in the cities of Kazakhstan “Sustainable Cities for Low-Carbon Development”.

The Damu Fund together with ATF Bank supported the project in Sergeyevka. The bank took out a loan in the amount of 86 million tenge, at 14% per annum, for a period of 5 years. The size of the subsidy was 10% per annum, the rest of 4% is paid by the entrepreneur.

“The company plans to implement a project in Petropavl by the end of this year to connect 4 secondary schools, 3 of which will be converted from electricity, and 1 from coal to biomass. In 2021, it is planned to install special boilers in the boiler houses of the Shal Akyn district and the Zhambyl district of the North Kazakhstan region” the Director of Agro Profi LLP Nikolay DENISOV said.

It is worth noting that Polish boilers allow to achieve complete combustion of ecological fuel, including straw, on a patented “counter-flow combustion system”, which leads to an increase in the efficiency of conversion and energy transfer up to 85%.

On November 9, 2020, at 10 am in the Big Hall of the regional akimat in the mode of video conferencing (VC) the ceremony of awarding the winners and laureates of the Zhomart Zhurek award will take place.

At the next meeting of the Regional Council, a presentation of the special economic zone “Qyzyljar” took place. Also, the Head of the Scientific and Technological Center of Water told the members of the Regional Council about its activities.

The Regional Council of the Chamber of Entrepreneurs of the North Kazakhstan region starts the current year with a new chairman and new tasks. The newly made chairman Oleg Ivanov invites his colleagues to create permanent working bodies under the council – committees. The goal is to quickly solve the pressing problems of the business community.

“The main task of these committees is to analyze the existing state programs and mechanisms for the implementation of entrepreneurship in relevant areas. We want to improve their performance, return and investment attractiveness of doing business. We need to work out the scheme of interaction and the procedure for considering draft normative legal acts in the Chamber, and then in the relevant specialized Committee of the Regional Council. I believe that in this way the control function of the Regional Council will be fully implemented. Also, the committees will raise systemic issues by industry before the regional administration,” the Chairman of the Regional Council Oleg Ivanov explained.

 

The members of the Regional Council were invited to create 7 working groups – an industry committee, a committee on economic policy and protection of the interests of entrepreneurs, a committee on trade and services, an agro-industrial complex committee, a committee on education, employment, culture, information technology and women’s entrepreneurship, a committee on environmental protection and nature management and the construction committee. One of the activities of the committee on economic policy and protection of the interests of entrepreneurs will be the organization of special economic zones, such as SEZ “Qyzyljar”. At the meeting, Deputy Director of the Qyzyljar Special Economic Zone Management Company LLP Daurenbek Kozhakhmetov presented a large-scale project to entrepreneurs of the region. The initial investment in the SEZ will amount to 160 billion tenge, as well as 3 thousand new jobs. Investors will be exempted from paying taxes, customs duties when importing raw materials and equipment.

“The priority activities of the Qyzyljar SEZ include the production and processing of food products, the production of building materials and furniture, the production of electronics and electrical equipment, the production of mechanical engineering products, and the construction of a multidisciplinary hospital. The SEZ will be located within the territorial border of the regional center with a total area of 192.3 hectares. In four subzones there will be a plant for the production of transformers, combines, seeding complexes, tractors and other agricultural machinery, joint projects in the manufacturing industry and the construction of a multidisciplinary regional hospital for 500 beds,” the Deputy Director of the Qyzyljar Special Economic Zone Management Company LLP Daurenbek Kozhakhmetov said.

After the presentation, the Director of the Chamber of Entrepreneurs of the North Kazakhstan region Darkhan Kaliyev and the deputy director of the Deputy Director of the Qyzyljar Special Economic Zone Management Company LLP Daurenbek Kozhakhmetov signed a memorandum of understanding and cooperation.

Also at the meeting, representatives of the Scientific and Technological Center of Water presented their products. The center offers services for biological treatment of drinking and industrial water. There is a possibility of cleaning natural reservoirs and sewage storage ponds.

“We learned from the Kyzylzhar Su LLP the existing proposals for cleaning the biopond. The method of draining the reservoir and cleaning the bottom will cost almost 50 billion tenge – it is very expensive. Hydromechanized cleaning costs 10 billion tenge, but blue-green algae persist and an unpleasant smell will reappear after a couple of seasons. And the use of special bacteria for a pond of 12 million cubic meters will cost 6 billion tenge. Our technology costs 48.2 million tenge. The pond will get rid of the smell, pollution is removed, and most importantly, the flora and fauna of the reservoir is preserved. Our technology also has additional advantages,” the Director of the Scientific and Technological Center of Water Aleksandr Reibandt says.

To solve the problem, the specialists of the center use the patented technology of electroflotation and electrocoagulation, as well as a strain of the microorganism that they bred themselves. It fights against unpleasant odor, saturates reservoirs with oxygen. In addition, aquatic inhabitants receive a food base. And the center completely abandoned chemical reagents. In addition, the natural biostimulant Chlorella can also be widely used in animal husbandry, crop production, fishing and poultry farming. The center is ready to cooperate with both entrepreneurs and government agencies and institutions. If the enterprise manages to conclude an agreement with Kyzylzhar Su LLP, the smell from the biopond near Petropavl will be completely neutralized in August.

Source: https://atameken.kz/ru/news/34923-palata-predprinimatelej-sko-i-sez-qyzyljar-podpisali-memorandum-o-vzaimnom-sotrudnichestve

On October 15-16, the Department of Entrepreneurship and Industrial-Innovative Development organized a visit by the representative of the Kazakhstan Center for Industry and Export Qazindustry JSC to industrial enterprises in the North Kazakhstan region.

During the meetings, measures of state support provided by Qazindustry to reimburse part of the costs aimed at increasing labor productivity and promoting domestic goods to foreign (export) and domestic markets were highlighted.

Presentation “Measures of state incentives “Qazindustry” (PDF 851 Kb)

Anar Turegeldina opened the Mont blanc restaurant in a building that had been empty for many years. A spacious modern fusion-style hall, a children’s playroom, a special menu for young and demanding guests, live music — all this became possible thanks to the support of the Damu Foundation.

After consulting with the specialists of the Damu Fund, Anar applied for a loan from Sberbank JSC SB. The loan was issued under the State Program “Business Road Map 2025” for the renovation of the restaurant and the purchase of equipment, at 14.5%, of which the Damu Fund subsidizes 8.5%, and the entrepreneur pays 6%.

The restaurant is a 2-storey complex with a lounge on the ground floor. In a relaxed atmosphere, guests can enjoy food, delicious drinks. Presented a children’s menu, burgers, pizza. On the 2nd floor there is a hall with a stage and live music. There is also a bar area with comfortable chairs, where the guest can simply sit at the bar and enjoy various drinks.

Today, in the context of the coronavirus pandemic, the restaurant business is one of the most risky. Nevertheless, Anar was not afraid and invested in the project not only money, but also energy and enormous efforts. The Damu Foundation wishes success and prosperity to the Mont blanc restaurant.