Sustainable Development Fund
“Kazyna”
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Content
I.
II.
III.
IV.
V.
VI.
Goal of presentation
Reasons to invest in Kazakhstan
Sustainable Development Fund “Kazyna”
Investors and Fund “Kazyna”: roles
Scheme of cooperation
Examples of investment projects (financed and
pipeline)
VII. Conclusion
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I. Goal in diversification of economy
Attraction of strategic investors to
the Republic of Kazakhstan
to organize modern and competitive manufacturing,
service, R&D investment projects
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II. Republic of Kazakhstan: key figures
• Ave. annual GDP growth for the last 3 years –
10.5%
• Moody’s rating Baa3 positive
• FDI investment: 28.7 billion USD (2000-Sept
2005)
• Most advanced economy in Central Asia with
GDP per capita of $4400
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II. Reasons to invest in Kazakhstan
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Favorable investment climate
Proximity to large markets
Common trade environment with Russia and Central
Asia
Growth opportunities
First mover advantage
Rich raw base
Low cost factors of production (raw materials, energy,
land)
Tax incentives for priority industries
Sound financial system
Infrastructure
Government support
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III. Fund “Kazyna”: mission
Mission:
Effectively manage state investments to diversify economy and
increase competitiveness of our economy.
Goal:
Sustainable Development Fund “Kazyna” was created by the
Decree of the President of the Republic of Kazakhstan with the
purpose to increase and stimulate investment and innovation
activities.
Strategy:
Identification and implementation of investment projects in nonextractive sector through coordination of National Development
Institutes
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III. Fund “Kazyna”: structure
Kazyna
Development Bank
Investment Fund
National Innovation Fund
Insurance Corporation
SME Development Fund
Center for Marketing and Analytical Research
Kazinvest
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III. Fund “Kazyna”: instruments
1.
Development Bank
• Long term debt
2.
Investment Fund
• Equity financing
3.
SME Support Fund
• SME development
4.
State Insurance Corporation
• Insurance of KZ exporters and investors
5.
Investment Promotion
Agency “Kazinvest”
• Information campaigns and assistance
to potential investors
6.
CMAR
• Market and policy analysis
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National Innovation Fund
• Venture funds, grants for R&D,
innovation infrastructure
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III. Fund “Kazyna”: priority areas
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Petrochemical industry
Chemical industry
Metallurgy and metal-working
Food industry and processing of agro-products
Production of consumer goods
Production of construction materials
Transport and logistics
Power generation and networks
Oil and gas machinery
Textile
Wood processing
Other non-extractive industries
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III. Fund “Kazyna”: portfolio
Charter Capital of Kazyna
Approved investment projects
Participation of Kazyna
$1.5bln.
$4.1bln.
$1.4bln.
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IV. Investors’ role
Organization of modern production/service/R&D
facilities in the Republic of Kazakhstan through
combination of investments, transfer of technology,
know-how and management.
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IV. Fund “Kazyna”: role
Creation of favorable conditions by :
• identification of investment opportunities
• search for local partners
• provision of long-term financial instruments (debt and
equity)
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V. Cooperation scheme
research results
Fund “Kazyna”
idea
Investor
interest
initiation
Feasibility Study
Business Plan
Industry Research
Partners
Identification
debt, equity, expertise
investment, technology,
know-how, management
Joint Realization
of Project
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VI. Financed projects
Project name: Organisation of production of high-octane
ecological fuel bio-additive.
Markets: Europe, Russia, China, Middle East
Investment: €64 mln
Location: Northern Kazakhstan
Local company: Biohim
=>First plant build in CIS, first delivery is planned in
October 2006.
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VI. Financed projects (cont.)
Project name: Organisation of float glass production
Markets: Kazakhstan, Russia, Central Asia, China
Investment: €165 mln
Location: Kyzyl-Orda, Southern Kazakhstan
Local company: Kazakh Glass Company
Investor: Pilkington (2nd largest producer of float glass in 2004-2005 with
world market share of 15%)
=> First production of high quality float glass in Kazakhstan
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VI. Financed projects (cont.)
Project name: Railroad Shar-Ust-Kamenogorst
Investment: €124 mln
Location: Eastern Kazakhstan
Local company: Doszhan Temir Zholy
=> Unique project, utilisation of private-public partnership
mechanism, concession, issuance of infrastructure bonds
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VI. Financed projects (cont.)
Project name: Alatau City IT Park – Special Economic Zone
Investment: $3,724 mln
Location: Almaty
Initiator: Government of Kazakhstan
=> Alatau IT City is created with the vision of being the
premier destination for high-tech industry in Central Asia:
software development, hardware manufacturing, telecom,
business services, consulting, education and training.
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VI. Investment projects: pipeline
Project name: Organisation of new production of ammonium
(600,000 tones pa) and urea (500,000 tones pa); production
of nitrogen fertilizers with capacity of 1.5 mln tones pa
Markets: Europe
Investment: $600 mln
Location: Aktau, Eastern Kazakhstan
Local company: KazAzot
Investor: Needed
=> First plant for production of urea in Kazakhstan, will be
the largest plant in CIS
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VI. Investment projects: pipeline
Project name: Construction of modern soda ash production
plant
Markets: Local, Central Asia
Investment: $200 mln
Location: Zhambyl oblast, Southern Kazakhstan
Local company: in the process of identification
Investor: Needed
=> Creation of production of soda ash in Kazakhstan,
currently 100 % is imported, strategic need
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VII. Conclusion
We invite companies to invest capital, technology, know-how,
and business experience to the economy of Kazakhstan.
We provide government support through provision of analytical
reports and long-tern financial resources.
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Contact Information
For more information and discussion of investment projects in
Kazakhstan:
Sustainable Development Fund “Kazyna”
Astana, Business Center “Arman”, 4th floor
tel: +7 (3172) 79 24 95
Fax: +7 (3172) 79 24 96
E-mail: yerlan.manatayev@kazyna.kz
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