Samruk-Kazyna
National Welfare Fund
Investment opportunities
July 2010
Samruk-Kazyna Invest
Samruk-Kazyna
Overview
•
National Welfare Fund consolidates key state assets in more than 400 subsidiary
companies
•
Key player of the industrial and innovation development program
•
Effective tool in implementation of the Anti-crisis program:
– primary role in stabilization of financial sector by means of direct participation in
4 largest commercial banks of the country
– primary role in stabilization of the real estate market
– direct support of the small and medium size businesses
– manages mortgage refinance program
Main objectives
•
Achieving sustainable growth of state economy
•
Promoting modernization and diversification of state economy
•
Increasing the effectiveness of the holding and all of its affiliates
•
Promoting and implementing large-scale investment projects
2
Samruk-Kazyna Invest
Samruk-Kazyna
Main assets
Assets, end of 2009
$ mln
Sector
Participation in companies
Description
Oil & Gas
KazMunayGas
National oil & gas company
Transportation
Kazakhstan Temir Zholy
National railway operator
Air Astana
National carrier
Kazakhtelecom
National telecommunication company
KazPost
National post operator
Samruk-Energy
National power generating company
1 490
KEGOC
National electricity grid operating company
1 282
Development Bank of Kazakhstan
Development bank
2 519
Kazyna Capital Management
Equity funding
BTA, Kazkommertsbank,
Halyk Bank, Alliance Bank
Commercial banks
Kazatomprom
Nuclear industry
2 614
Tauken Samruk
Mining industry
8 000
United Chemical Company
National chemical company
SK Pharmacy
National medicine and medical equipment
distribution company
Communications
Power
Financial
Mining
Chemical &
Pharmaceuticals
34 100
6 650
211
2 316
235
366
53 179
16 433
3 240
3
Samruk-Kazyna Invest
Oil & Gas
Oil production in Kazakhstan,
mln.tons
80
51
60
59
61
65
67
71
76
40
20
Overview
• Oil and gas sector – 30% of Kazakhstan’ s GDP
• Proved oil reserves - 6.5 bn tons
• Gas reserves – 7 trillion cubic meters (3.9% of world reserves)
• The production of oil in Kazakhstan has increased by 52% (2002-2009) while the
production of gas has increased by 37% in the same period
0
2003 2004 2005 2006 2007 2008 2009
Samruk-Kazyna participation in the sector
Major oil producers in Kazakhstan, 2009
MMG
7%
CNPC
8%
Others
28%
20
15
10
5
0
Development perspectives
KPO
16%
KMG
12%
•
Production growth due to field developments (Kashagan, Khvalynskoye, Block N etc.)
•
Transport infrastructure development – launch of Trans-Caspian Transportation System,
“Kazakhstan-China” pipeline’s extension, construction of “Beineu-Shymkent” gas pipeline,
Aktau port’s development
•
Development of local refinery capacities up to 17 mln tons / processing upgrading
•
Development of petrochemical branch
Tengiz
Chevroil
29%
Gas production in Kazakhstan,
bn cubic meters
19
18
17
14
2006
KazMunayGas - vertically integrated national oil and gas company
2007
2008
2009
Investment opportunities*
•
Atyrau Oil Refinery - Oil deep processing Complex construction ($1.1 bn)
•
Pavlodar Oil Refinery ($1 bn)
•
Construction of petrochemical plant in Atyrau ($6.3 bn)
*More information about investment projects – in annex
4
Samruk-Kazyna Invest
Power
Electricity consumption in Kazakhstan
(forecast), bn kWth
125
Pessimistic
+25% +60% +76%
Considerable gap in electricity supply between energy excessive northern regions of
Kazakhstan and energy-dependent southern regions of the country
•
Local production capacities are depreciated by almost 70%
Basic
Optimistic
2009
•
138
98
78,4
Current trends
2024
Competitive advantage
•
Access to low-cost fuel due to large local reserves of coal, oil and gas
•
Opportunity to develop renewable energy resources
82
Development perspectives
80
78
•
Construction of 6 new thermal power plants (coal or nuclear) until 2030
78 78
•
Construction of new hydropower plants
2009
Samruk-Kazyna participation in the sector
bn kWth
76
74
80 79
72
70
68
76 76
72 72
66
2006
2007
Consumption
2008
Production
Samruk-Energy - operates major power plants in Kazakhstan
200
150
KEGOC - operates the national power grid, owns and operates all main and
bn kWth
100
50
interregional transmission lines and master substations across the country
173180
125130
140145
95 99
Investment opportunities
2010F
2015F
Consumption
2020F
2030F
Production
•
Balkhash thermal power station ($2.4 bn)
5
Samruk-Kazyna Invest
Transportation & Telecommunications
Overview
•
Strategic geographical location
•
High dependence of the economy on transport infrastructure
Routes in KZ
Length (thsd km)
Railway
14,2
Auto routes
93,6
Air ways
61
Water routes
3,9
Samruk-Kazyna participation in the sector
Freight turnover in Kazakhstan, bn tkm
380
360
Kazakhstan Temir Zholy - national company, monopoly railway operator
Air Astana - leading domestic airline
370
350
Kazakhtelecom - major player on the telecommunication market
337
340
320
2007
2008
2009
Passenger turnover in Kazakhstan bn pkm
135
127
130
125
130
124
Investment opportunities
• Production of passenger rail carriers ($60 mln)
•
Construction of the railway Zhetygen – Korgas (border with China) ($1.1 bn)
•
Construction of the railway Uzen – border with Turkmenistan ($433 mln)
120
2007
2008
2009
6
Samruk-Kazyna Invest
Metals & Mining
Natural
resource
World Rank by
reserves
production
Uranium
2
3
Lead
2
11
Zinc
2
8
Chromium
2
2
Manganese
3
6
Gold (ore)
4
10
Iron
5
12
Copper
5
10
Coal
8
10
Overview
•
Large reserves of Uranium, Lead, Zinc, Gold, Coal
•
2008: production of ferrous metals - $4.5 bn
production of precious and non-ferrous metals – $ 4.4 bn
•
Share of metals and mining sector in total industrial production of Kazakhstan – 20%
•
Objective – production of high value added products
Samruk-Kazyna participation in the sector
World uranium reserves (shares)
USA
3%
Tauken-Samruk - national mining company
Uzbekistan
3%
Kazatomprom - national nuclear company, implements the industry development
program of Kazakhstan aimed at creation of a vertically integrated complex of
nuclear fuel cycle
Brazil 4%
Russia
5%
Namibia
7%
Australia
34%
South
Africa 9%
Investment opportunities
Canada
14%
Kazakhstan
21%
•
Upgrade of cast iron plant ($457 mln)
•
Steel rails production ($309 mln)
•
Polycrystalline production ($388 mln)
7
Samruk-Kazyna Invest
Chemicals
Resources
Chemical sector’s share in the total
volume of industrial production of
Kazakhstan (%)
1.5
1.0
0.5
•
Kazakhstan is 11th in the world in mineral production
•
Second largest proved supplies of sulfuric acid in the world
•
Kazakhstan possesses 1/3 of proved phosphorite reserves in CIS and over 5% of world
reserves
Current trends
0.0
2004
2005
2006
2007
2008
Export of mineral resources of
Kazakhstan (mln $)
80
73.2
60
40
20
Growing demand for fertilizers in Russia and China
•
Annual chemicals production grew 2,6 times in 2004-2008 years period
•
Local companies produce phosphorus, sodium bichromate, phosphoric fertilizers, nitric
fertilizers, chromic compounds, plastics, tires, general mechanical rubber goods
•
There is a potential of products diversification (organic and nonorganic chemical
products, special chemicals)
40.9
33.5
17.9
•
24.9
14.6
0
2003 2004 2005 2006 2007 2008
Samruk-Kazyna participation in the sector
United Chemical Company - consolidates state assets in chemical sector
Investment opportunities
•
•
•
Mineral fertilizers – Kok-Dzhon ($1.9 bn)
Construction of phosphorite fertilizers plant ($600 mln)
Sulphuric Acid production ($65 mln)
8
Samruk-Kazyna Invest
Pharmaceuticals
Current trends
•
Market size – around $900 mln
1000
•
Growing local consumption – 20% average annual growth
800
•
Local production is growing, but covers only 10% of domestic market
600
•
90% of consumed pharmaceuticals are imported
Medicines’ consumption in Kazakhstan, $ mln
400
200
Samruk-Kazyna participation in the sector
0
2003
2005
Import
2008
2009f
SK Pharmacy - national medicine and medical equipment distribution company
Production
Key advantages
Consumption structure, $ mln
1000
•
Growth of domestic production
800
•
Transparency in government purchases
•
Demand for improved quality of products
600
400
200
Investment opportunities
0
2004
2005
Pharmacies
2008
2009f
•
Construction of pharmaceuticals plant in Astana and expansion of production in Shymkent
($81 mln)
•
National medicine and medical equipment distribution company ($80 mln)
Public purchases
9
Samruk-Kazyna Invest
Annex
Investment projects
10
Samruk-Kazyna Invest
List of projects for potential investors
Sector
Project
Investment opportunity
Period/ launch
Oil & Gas
Atyrau Oil Refinery
Oil deep processing Complex construction
Cost, $ mln
1 100
Debt financing
2011-2014
Pavlodar Oil Refinery
1 000
Debt financing
2011-2013
Petrochemical plant in Atyrau
6 300
Debt financing / equity
2009-2012
Power
Construction of Balkhash thermal power station
2 400
Debt Financing
2010-2014
Transport
Rail passenger carriers
60
Debt financing
2010-2012
1 100
Debt financing
2009-2012
Construction of the railway
Uzen (Western Kazakhstan) – border with Turkmenistan
433
Debt financing
2009-2012
Cast iron plant
457
Debt financing
2010-2012
Steel rails
309
Debt financing
2010-2013
Production of polycrystalline silicon
388
Debt financing / equity
2010-2013
Equity
Debt financing
2018
600
Debt financing / equity / equipment /
technologies
2010
Sulphuric Acid production
69
Debt financing
2010-2012
Pharmaceutical plant
81
Debt financing / equity / technologies
2009-2011
National medicine and medical equipment distribution company
80
Debt financing / equity / expertise
2009-2010
Construction of the railway
Zhetygen – Korgas (border with China)
Metals & Mining
Chemistry
Mineral fertilizers (Kok-Dzhon)
1 900
Phosphorite fertilizers
Pharmaceuticals
Total
16273
11
Samruk-Kazyna Invest
Atyrau Oil Refinery
Oil deep processing Complex construction
Background
•
Total project cost: $1.1 bn
•
Capital structure: equity - $1 mln, debt - $1,099 mln
•
Implementation period: 2011-2014
Key project advantages
•
High value added production:
– Increase in processing depth up to 82%
– Production of high-octane refined products
•
High ecological standards: Euro - V
•
Domestic market’s share increase for high-octane oil products
•
Manpower: construction – 2507, maintenance - 391
Investment Opportunities
•
Debt financing
12
Samruk-Kazyna Invest
Pavlodar Oil Refinery
Background
•
Reconstruction and modernisation of Pavlodar Oil Refinery to increase annual production
capacity to:
– motor fuel – 2 million tons
– jet fuel – 132 thousand tons
– diesel fuel – 2 million tons
– fuel oil – 252 thousand tons
•
Total project cost: $1 bn
•
Implementation period: 2011-2013
Key project advantages
•
High value added production
– Production of high-octane refined products
•
High ecological standards: Euro - III, IV
•
Domestic market’s share increase for high-octane oil products
•
Manpower: construction – 3100
Investment Opportunities
•
Debt financing
13
Samruk-Kazyna Invest
Petrochemical plant in Atyrau
Background
•
Construction of a petrochemical plant with annual production capacity:
– 1 stage: polypropylene 800 thsd tons
– 2 stage: polyethylene 450 thsd tons
•
Total project cost: $6.3 bn
•
Capital structure: 27% equity, 73% debt
•
Implementation period: 2009-2012
Key project advantages
•
High value added production
•
High profitability margins (over 50% EBITDA, over 20% net income margin)
•
Manpower: construction – 12000, maintenance – 800
Investment Opportunities
•
Debt financing
•
Equity
14
Samruk-Kazyna Invest
Balkhash thermal power station
Background
•
Construction of one 1320 MWt module is under consideration
•
Possible further extension up to 4000 MWt
•
Total project cost: $2.4 bn
•
Capital structure: equity 30%, debt 70%
•
Implementation period: 2010 – 2014
Key project advantages
•
Meet the demand for electricity in Almaty region
•
Low production costs
Investment opportunities
•
Debt financing
15
Samruk-Kazyna Invest
Rail Passenger Carriers
Background
•
Production of rail passenger carriers
•
Total project cost: $60 mln
•
Quantity: 150 units per year
•
Implementation period: 2010-2012
Key project advantages
•
Creation of carrier assembling line to meet the growing demand in passenger carriers on
the domestic market
Investment Opportunities
•
Debt financing
16
Samruk-Kazyna Invest
Construction of the railway Zhetygen - Korgas
Background
•
Construction of a railroad connecting Almaty region with the Chinese border in Korgas
•
Total length – 293 km
•
Passenger and freight transportation
•
Total project cost: $1.1 bn
•
Capital structure: 45,8% equity, 54,2% debt
•
Implementation period: 2009-2012
Key project advantages
•
Strategic infrastructure concession project
•
Risks shared with public authorities
Investment Opportunities
•
Debt financing (45%)
17
Samruk-Kazyna Invest
Construction of the railway Uzen – border with Turkmenistan
Background
•
Construction of the new railway road near Caspian sea (Uzen-Gyzylgaya-Bereket-EtrekGorgan) with further link with Russian railroad network
•
Total length – 670 km, Kazakhstan’ s part – 138,5 km
•
Passenger and freight transportation
•
Total project cost: $433 mln
•
Capital structure: 47,2% equity, 52,8% debt
•
Implementation period: 2009-2012
Key project advantages
•
Strategic infrastructure concession project
•
Risks shared with public authorities
Investment Opportunities
•
Debt financing (31%)
18
Samruk-Kazyna Invest
Cast iron plant
Background
•
Construction of metallurgy plant SBS Steel for production of cast iron in Aktobe region
•
500 thsd tons of granulated iron annually
•
Total project cost: $457 mln
•
Implementation period: 2010 – 2012
Key advantages
•
Strengthening export potential of Kazakhstan
•
Production of high quality iron based on the unique patented KOBE Steel technology
•
Manpower: construction – 1800-2300, maintenance - 500
Investment Opportunities
•
Debt financing
19
Samruk-Kazyna Invest
Steel Rails Production
Background
•
Production of steel rails and rolled steel at KSP Steel metallurgy plant
•
200 thsd tons annually
•
Total project cost: $309 mln
•
Capital structure: 20% equity, 80% debt
•
Implementation period: 2010 -2013
Key advantages
•
Meet the growing local demand
•
Manpower: construction – 1000, maintenance - 106
Investment Opportunities
•
Debt financing $247 mln
20
Samruk-Kazyna Invest
Production of polycrystalline silicon
Background
•
Creation of silicon cluster on manufacture of mono/poly crystal ingots and silicon plates:
– 2500 tons of polycrystalline silicon
•
Total project cost: $388 mln
•
Capital structure: 30% equity, 70% debt
•
Implementation period: 2010 – 2013
Key project advantages
•
Well-positioned to supply European and Asian markets
•
•
•
Competitive advantage via long-term access to low-cost raw materials
High value added production
•
High profitability margins (sales of $594 mln a year)
•
Competitive advantage due to low transportation costs
Advanced stage of project planning
•
Feasibility studies and technical specifications completed by leading consultants
•
Development Bank of Kazakhstan commenced $150 mln loan guarantee for plant
construction
Investment Opportunities
•
Debt financing $50 mln
•
Equity
21
Samruk-Kazyna Invest
Mineral Fertilizers Production
Background
•
Construction of mineral fertilizers producing plant combined with Kok-Djon (Aral-Tobe
and Kisik-Tobe sites) and Gimmelfarbskoe deposits
•
Production of mineral fertilizers -1 mln tones
•
Products: potassium phosphate, NPK fertilizers, yellow phosphorus, phosphoric acid,
reactive compounds
•
Total project cost: $1.9 bn
•
Expected launch: 2018
Key project advantages
•
Availability of natural resources
•
Low production costs
•
Meeting 100% local demand on mineral fertilizers of high quality and exporting
•
Manpower: 5000
Investment opportunities
•
Equity
•
Debt financing
22
Samruk-Kazyna Invest
Phosphorite Fertilizers Production
Background
•
Construction of phosphorite tails and low-grade ore processing plant
•
Production capacity of 1 mln tons of phosphorite fertilizers annually
•
Total project cost: $600 mln
•
Expected launch: 2010
Key project advantages
•
Availability of unique technology to produce phosphorite fertilizers from low-grade ore
•
Large reserves (over 500 mln tons) of low-grade ore
•
Proximity and access to markets in China
•
Strong competitive advantage – the lowest production cost
•
Ability to produce highly-enriched fertilizers and develop production of NPK fertilizers
jointly with KazAzot
Investment Opportunities
•
Debt financing
•
Equity
•
Equipment & Technologies
23
Samruk-Kazyna Invest
Sulphuric acid production
Background
•
Reconstruction of sulphuric acid plant on the base of SGHK Ltd aiming to provide
Kazatomprom’s uranium producing entities with sulphuric acid
•
180 thsd tons annually
•
Total project cost: $69 mln
•
Capital structure: 31% equity, 69% debt
•
Implementation period: 2010 - 2012
Key advantages
•
Low cost of raw materials
•
Manpower: construction – 300, maintenance – 141
Investment Opportunities
•
Debt financing
24
Samruk-Kazyna Invest
Pharmaceuticals plant
Background
•
Construction of a pharmaceuticals plant in Astana and expansion of current production of
ChimPharm (Shymkent)
•
Total project cost: $81 mln
•
Capital structure: $30 mln- equity, $51 mln – debt
•
Implementation period: 2009 - 2011
Key advantages
•
Growing local demand
•
Growing local production on the Kazakhstan’s pharmaceutical market from 10% to 25%
•
Creating innovative, science intensive and export oriented production (turnaround)
•
Manpower: construction – 1000, maintenance - 300
Investment Opportunities
•
Equity
•
Debt financing
•
Technologies
25
Samruk-Kazyna Invest
National medicine and medical equipment distribution company
Background
•
Creation of integrated medicine and medical equipment distribution system
•
Total project cost: $ 80 mln
•
Expected launch: 2009–2010
Key project advantages
•
Growing market
•
Development of local pharmaceutical industry
•
Transparency in government pharmaceutics procurement, effective system of transport
and logistics
Investment Opportunities
•
Debt financing for a logistics system construction
•
Medications supply to Kazakhstan
26
Samruk-Kazyna Invest
Contacts:
Republic of Kazakhstan
Astana , Orynbor street 10, «Kazyna Tower»
info@skinvest.kz
www.samruk-kazyna.kz