Investors are welcome

Nov 22. Kazpravda. Karaganda

By Natalia Ryzhkova

Investors are welcomeInvestment opportunities of the region are the engine of economic potential development.

The third international forum “Karaganda Invest-2012”, organized by Karaganda oblast administration under support of the RK Government is one of the final events of the year to attract investments to our republic. Deputy PM – Minister of Industry and New Technologies Asset Issekeshev and Karaganda oblast governor Abelgazi Kussainov attended it.

Heads of banks and financial institutions, foreign ambassadors and representatives of international and domestic business community, the leading international economy and investment experts – more than 500 delegates from 32 countries – took part in the forum to learn more about the central industrial region, its industry, transportation and energy systems as a key component of the investment climate of the region.

Before the forum an exhibition of investment projects of Karaganda region was attended by Asset Isekeshev and potential investors. Developments in metallurgy, metal, chemical, construction and many other industries were displayed there. The MINT leader Asset Issekeshev made a presentation at the plenary session on the region’s role in increasing the investment attractiveness of Kazakhstan, moderated by Pierre Luc (founder of the Consulting company on investment policy of public relations) and RBK economic analyst Igor Vittel. Through the example of Karaganda region, he analyzed the role of regions in implementation of the new economic policy of Kazakhstan.

A. Isekeshev said there are many fulfilled projects in mechanical engineering – production of locomotives, and chemistry – production of caustic soda and chlorine. The investment portfolio has 707 projects, 430 of which are already in operation. There are priority sectors for which all plans are itemized.

In their reports, A. Isekeshev and A. Kusainov detailed on the investment attractiveness and opportunities of Karaganda region. The participants were interested in the traditional sector of Karaganda mining and metallurgical complex, as well as in agriculture and tourism. A major factor of the investment attractiveness is the developed transport infrastructure. Under the President’s Address, construction of the railway line was started, which reduces by 1 200 km the way from east to west. About 20 million tons of cargo will be transported through it.

Karaganda oblast offered a portfolio, containing 80 significant projects, including in subsoil use area. They are of special interest especially after establishment of the FEZ. Today its territory (over 500 hectares) is fully provided with the infrastructure worth 156 million dollars (the paved road and railways, energy and water facilities, other complexes, necessary for the FEZ).

At the “Karaganda Invest-2012” more than 20 memorandums on projects worth over $ 330 billion were signed. One of the significant agreements is the construction of 900 MW power plant worth 150 billion tenge in Bukhar-Zhyrau rural district together with Malaysian company Kazakh-Power-Sdn-Bhd. Another promising project worth 38 billion tenge is creation of a freight car production plant together with the German LLP “FTD Fahrzeugtechnik Kazakhstan”.

The main question, raised by the businessmen was the power and heat deficit in Karaganda region. According to Abelgazi Kussainov, from the Q2 of 2013 construction of the HPP-4 the capacity of 720 MW will start to produce 1 415 Gkkal of thermal power. The future energy complex will cover the needs by 80%.

There are over 450 companies in Karaganda region, created with the participation of foreign capital from 50 countries. Major trade-economic partners in the region are Russia, Ukraine, United Kingdom, Iran, Germany, Turkey, China. Their representatives also attended the session “A new look at the innovative opportunities of Karaganda region”.