Investor’s guide Zhambyl region Republic of Kazakhstandppzhambyl.gov.kz/catalog/Investorsguide.pdf · GOST. The area is ranked 3rd in the country in the number of explored reserves

Investor’s guide Zhambyl region

Republic of Kazakhstan

Management of business and industrial-innovative development of Zhambyl region

WELCOME TO ZHAMBYL REGION!

Welcome to Zhambyl regionDEAR INVESTORS!

“Sustainable and balanced development in the nearest decade will be achieved by increased diversification and

competitiveness of the national economy. The most important goal is the complex growth of labor productivity. Only innovations will provide a sharp rise in labor productivity. As per my instructions, the Government has developed State program of forced industrial-innovative development and a detailed map of industrialization of the country. Obviously, for the implementation of our plans to diversify only public resources won’t be enough. It should be the main source of foreign direct investment. We have to create the most attractive conditions in Kazakhstan for investors that want to work in our region. It will be proactive, pragmatic and balanced foreign policy aimed at ensuring national interests, raise the international prestige of the country and the consolidation of national, regional and global safety. Kazakhstan intends to participate in global decision-making processes in the formation of a new architecture of international relations and the architecture of the world trade and financial system”. From the Message of President of the Republic of Kazakhstan Nursultan Nazarbayev to the people of Kazakhstan.

WELCOME TO ZHAMBYL REGION!

3Welcome to Zhambyl region 3

Welcome to Zhambyl region4

GENERAL INFORMATION ABOUT ZHAMBYL REGION

Constitutional framework............................................................8The geopolitical position.............................................................8Currency.....................................................................................8Language:..................................................................................8Time / time zone.........................................................................8Transit potential...........................................................................8Administrative divisions..............................................................9 The administrative center...........................................................9Population..................................................................................9The climate conditions...............................................................9Natural resources.........................................................10Reserves of natural resources in Zhambyl region....................12Transit potential.........................................................................13Macroeconomic indicators...........................................14Gross Regional Product............................................................14Specialization areas of Zhambyl region for 2015-2019 yy........16Dynamics of GRP of Zhambyl region.......................................17Innovative development............................................................18Social sector..............................................................................20International trade relationships...............................................20Investments in fixed assets.......................................................21The volume of industrial production.........................................22Sectors of the economy................................................23Industry.....................................................................................23Agricultural complex ................................................................24Tourism.....................................................................................26Attractions of Zhambyl region...................................................29Chemical industry.....................................................................33Light industry.............................................................................34Food industry.............................................................................35

CONTENT

5Welcome to Zhambyl region

SUPPORT SERVICES FOR INVESTMENT IN ZHAMBYL REGION

Support for investment in Zhambyl region..............................36Investing in Zhambyl region - is it profitable? / Why is it profitable?.................................................................................37Business development institutions...........................38JSC KAZNEX............................................................................38JSC NATD.................................................................................40JSC SEBC.................................................................................42ENTREPRENEURS SERVICE CENTER OF ZHAMBYL REGION....................................................................................44

INVESTOR PROTECTION

Service center for investors in Zhambyl region........................46Guarantees for the protection of investors’ rights....................46Legal protection is guaranteed to investors in the territory of the Republic of Kazakhstan and Zhambyl region..........................46Free use of income is guaranteed...........................................46Publicity of state activity concerning investors is guaranteed.46Rights of nationalization and requisition are guaranteed to investors...........................................................................47Agreement on encouragement and reciprocal protection of investments, concluded with the Republic of Kazakhstan.....47Bilateral agreements................................................................47


Multilateral agreement.................................................48The largest countries - investment projects implemented with the participation of foreigners with investors in Zhambyl region........................................................................48Investment projects with foreign companies, realized and implemented in Zhambyl region...............................................48Investment projects with foreign companies planned to implement in Zhambyl region.................................................48Why Zhambyl region?....................................................50Investment opportunities...........................................................50The favorable location..............................................................50A rich source of raw materials..................................................52Favorable Business - Climate (Foreign Direct Investment)......52Investing in Zhambyl region. It is risky to you?..........................53Benefits for potential investors..................................................53

ARRIVAL IN KAZAKHSTAN

Visas.....................................................................54How to get a visa?.........................................................54Categories of visas for investors..................................55Visa’s fee...................................................................................56Registration of foreign citizens..................................................56

INVESTING IN ZHAMBYL / STATE SUPPORT

Privileges and preferences..........................................58Investment preferences............................................................58Privileges for members of sp ecial economic zones....59Tax incentives for SEZ participants...........................................59


START BUSINESS IN ZHAMBYL REGION

Business Registration..................................................60Foreign labor.............................................................................64Receipt of a license......................................................66Customs tariff regulation.........................................................70Currency regulation..................................................................72E-government.......................................................................74Taxation issues.........................................................................74Taxation of foreigners...............................................................75Agreements on the avoidance of double taxation...................75Tax reporting and tax audits....................................................76The main taxes........................................................................77Monitoring of large taxpayers..................................................77

INVESTMENT PROJECT TO REQUIRED OF ZHAMBYLREGION..........................................................................78


GENERAL INFORMATION ABOUT ZHAMBYL REGION

The geopolitical position: Zhambyl region is located in the south-eastern part of Kazakhstan and borders on the west

and east with the South Kazakhstan and Almaty regions, from the north with Karaganda region, in the south with Kyrgyzstan.

Transit potential: geographical location of Zhambyl region

has high transit potential.25 railway connections with 50

directions pass the territory of the region connecting it

with all regions of Kazakhstan, Russia (7 railway connections), Kyrgyz Republic (6 railway

Time / time zone: UTC +6

Currency: Exchange rate of U.S. dollar

amounts 180,2 on April, 2014

Language:

The official state language – Kazakh

Official – Russian

Constitutional framework: The Republic of Kazakhstan is an unitary state with presidential form of government.

The president of the Republic of Kazakhstan. It's head of state. its highest official determining the main directions of domestic and foreign policies of the state representing Kazakhstan within the country and in international relations.

Kazakhstan's KZT (KZT, code 398)


Administrative divisions: The territory of the region is 144.3 thousand sq. km (5.3% of the country’s territory),

which has 10 districts, 1 city of regional subordination – Taraz, 3 areas of regional subordination – Karatau, Zhanatas, Shu and 379 villages.

The administrative center - Taraz city Located in the south of Kazakhstan, near the border with

Kyrgyzstan, on the Talas River (Taraz). The city's population - 350,300 people. Occupies an area of approximately 150 km ².

Population: The population is over 1 million people, 61% of them live in rural areas. The population consists of more

than 90 nationalities.

The climate conditions: The climate is continental. Average temperature in flat part in January is -15 ° C, foothills -6 -8

° C; July ° C +16 +24 and +25 ° C respectively. The annual rainfall in the plains is 300 mm in the foothills and from 500 - 700 up to 1 000 mm in mountains.


Natural resources: The area is an unique base of phosphorite and fluorite raw materials, rich in non-ferrous metals (copper, gold, silver, lead, zinc, etc.), barite, coal, facings, ornamental stones and engineering, building materials (asbestos, cement and expanded clay materials , plaster, etc.), natural gas.

The region has about 71.9% of balance reserves of phosphate rock (the largest reserves in the CIS), 68% fluorspar (one of the leading places in the world in terms of fluorspar), 65.1% of quartzite, 8.8% of the gold, 3% copper, 0.7% uranium. Feed stocks and technical salt are up to 10 million tons. There are the largest fields of quartzite in the country, marked titanium-magnetite fields.

There are 2 large fields of quartzite - Zhanatas (balance reserves - 38 800 tons) and Makbel, the largest in the country (137 040 tons). Titanium-magnetite deposits are marked in Tymlay, Kordai area.

Several deposits of natural gas have been explored within Shu-Sarysu depression. Since 2003, Amangeldy gas field was put into experimental operation and has been in commercial production since 2008. Average daily production of natural gas is 1051.8 thousand cub. meters - 79.6 tons of condensate. In winter, 26% of needs of the gas is provided by Amangeldy gas field, in summer it covers about 45%.

Promising fields of lead-zinc mineralization are identified in Shu-Ili region. Extraction of copper ore is carried out of Shatyrkul polymetallic deposits in Shu area.


Salt fields are in industrial interest in Sarysu area. Feed of stocks and technical salt is 10 mln.tn. When processing

the salt by washing with water we can get table salt that does not require iodine fortification and meets the requirements of GOST.

The area is ranked 3rd in the country in the number of explored reserves of underground water. 40 deposits with the approved operational stocks are found 4520.94 m/day. There are two fields of medicinal mineral waters in the region: Merke, with confirmed reserves of 0.518 thousand cubic meters per day, and Uzynbulak-Arasan, has more than a dozen displays and groundwater sites in chemical composition similar to the mineral.

The region's territory has its own small amounts of surface water. The total annual average annual flow of rivers, estimated at 4.2 billion cubic meters, is formed in the basins of the rivers Shu, Talas, Asa. About 70% of surface water resources outside the area in the Republic of Kyrgyzstan. The main rivers are Shu tributaries (length within the country is 800 km), Talas (453 km), Asa (253 km) and other large freshwater lakes Balkhash (western part), Biylikol, Akkol, Ulken Kamkaly etc., salted : Akjar, Aschikol.

Tasotkel reservoir was constructed along Shu river (water volume is 290 million cubic meters), on Asa river there is a Aschibulak reservoir (158 million cubic meters).The total area of the state forest area is 4 189 hectares. Land covered with forests occupy 2 288 hectares, of which 180.7 thousand ha - man-made plantations. Forest land area is 15.8%.


Name of resources Mineral resources

Phosphorites 72% of balance reserves of phosphate rock Kazakhstan, the total reserves are 3 817.4 million tons

Barite Barite ore reserves - 12.0 million tons

Fluorite

spar (fluorite)

80.6% of balance reserves of fluorspar Kazakhstan, the total reserves of ore - 24.9 million tonnes, or 7 million tons of fluorite

Uranus Total reserves of uranium - 8.0 tonnes

Gas 3% of the balance gas reserves of Kazakhstan, proven reserves - 45 billion m3, forward - 89mlrd. m3

Coal21.1% of coal reserves of Kazakhstan, balance reserves only are 6.75 million tons, forecasted ones - 4.3 billion tonnes

Gold8.2% and 15.4% of the balance sheet forecast gold reserves of Kazakhstan, the total reserves and probable reserves are estimated at 300 - 350 tons

Lead and zinc15.4% of balance reserves of lead and 3.4% of Kazakh-stan’s total zinc reserves, probable reserves - 3.8 million tonnes

Copper3% of the balance sheet and 9.7% probable reserves of copper RK, all reserves and inferred resources of 1.75 million tonnes

Tin 34.3% probable reserves of Kazakhstan, all copyright stocks - 12 tonnes forecast - 101 thousand tons

Rock salt Forecasted salt reserves - 2.6 billion tonnes

Mineral salts Balance and probable reserves - 15.0 million tons

Gypsum and anhydrite

25.8% of the balance sheet of gypsum reserves of Kazakhstan, all reserves of gypsum and anhydrite - 50.3 million tons

Reserves of natural resources in Zhambyl


Transit potentialGiven the favorable geographical position Zhambyl region

has high transit potential of Kazakhstan due to the location in the center of the Eurasian continent, the passing traffic flows from countries of Central Asia.

25 rail services with 50 flights run on the territory of Zhambyl region, linking the region with all regions of Kazakhstan, Russia (7 r/w connections), Kyrgyz Republic (6 r/w connections) and Uzbekistan (1 r/w connection).

Transit outlook for the region greatly increased within the frame of international "TRACECA" rail project and the construction of "Western Europe - Western China" traffic corridor, which creates favorable conditions for the formation of a powerful transportation hub of international significance.


Gross Regional Production amounted more than 4 billion USD in 2013, thus increased by 6%. The index of physical volume of production was 107,7%.

Macro-economic indicators of Zhambyl region

GRP Zhambyl region in the structure of the region, in mln. USD


The gross regional product per capita increased by 829 USD in 2012 to 956 USD in 2013.

Thus, the development of Zhambyl region is characterized by stability and sustained rising trend. Social-economic indicators in recent years regarding the dynamics of the gross regional product, industrial production, agriculture, expansion of investment potential, reducing unemployment, improving the well-being of the population, according to the dynamic development of the regional economy.

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Innovative development

Zhambyl region has considerable potential for innovation based on science, institutional, industrial research institutes, infrastructure, science and technology innovation activities. Moreover, development of innovation realizes in the framework of the State financing program of industrial-innovative development of Kazakhstan for 2010 - 2014 years.

Science and technology policies aimed at enhancing the area of innovation processes, new technological structures, development of new added value in the manufacturing sector, the consolidation of material base for scientific research, the development of scientific and technological potential, bridging the gap between science and industry, promoting innovation, the introduction of international standards.

The development of the research activities of higher educational institutions of the region, particularly in Taraz State University, named after M.H.Dulati (Targu), Zhambyl Humanitarian Technical University (ZHGTU), Taraz Innovation and Humanities University, directed to a compound of university of applied science and manufacturing, the reorientation of university research aimed at economic and social progress, the introduction of high-tech .


At the end of 2012 a statistical observation of innovation was provided among 657 enterprises. During the

reporting period, 28 economic entities had completed technological innovation (2011 - 20 companies). The volume of innovative products compared to 2011 increased by 70.5% to $ 125.1 million USD, the innovative nature of the services rendered to 5.5 million USD. The main types of innovation activities of enterprises having completed innovations are: the introduction of new technologies, equipment, materials - 68%, and other types of pre-production for the release of new products and the acquisition of new technology 14%, the research activity - 12%.

During the analyzed period, total expenditure on technological innovation was 123MM USD (74.6MM USD in 2011). The largest portion of innovative investment projects is in own funds - 57.4%, the national budget - 4.7%, the local budget - 0.2%.

According to conducted survey, the largest number of enterprises that have completed technological innovation act in Taraz (65.4%), Kordai area (8.2%), Shu area (5.2%).


Social sector There is Taraz State university named after M.H.Dulati, State Pedagogical Institute, and 3 non-public higher education institutions in Taraz region.

Moreover, there are 11 state, 25 non-public vocational schools, 456 secondary schools and 299 primary schools in the region. Health care is carried out in 45 hospitals (11 of them are private), 322 hospital clinic (7 of them are private), 26 clinics (7 of them are private), 116 outpatient clinics, 119 health centers and 61 paramedic stations.

There are following health centers In Taraz: "Mother and Child", "Meyirim", Kuchenev ENT clinic and urology clinic of Zhumagaliev. There are Kazakh and Russian drama theaters, a philharmonic, 6 museums, 282 libraries, 135 clubs and cultural centers in the region. Hospitality services are provided in 45 hotels comprised of 1.098 rooms, as well as 21 national-cultural centers that are actively involved in social and economic activities of the region.

International trade relationships Foreign trade operations are carried out with partners in 47 countries. The main trade partners of Zhambyl region are: China, Canada, France, Kyrgyzstan, the United States, Russia.

The volume of retail sales for the total period is 811,2 mln U.S. dollars and it increased by 30,8% compared with 2012. The volume of wholesale trade in 2013 compared to the same period in 2012 increased by 124,4% to U.S. $ 1 069,2 mln.


Investments in fixed assets During January-December 2013 estimated investment in fixed assets composed 1 379,2 million USD or 155,7% compared to January - December 2012.

The technological structure of capital investments to the construction and reconstruction was 51% of the total investment, same for machinery, equipment, tools and equipment - 47,5%, other work and costs - 1,5 %.

The highest priority for investment were "transport and storage" which accounted for 66,4% of the total investment and the "industry" - 17%.

Investments to fixed capital in the technological structure

Welcome to Zhambyl region22The volume of industrial production In 2013, the volume of industrial production in Zhambyl region was 758.8 MM USD.

The volume of industrial production by economic activity and indices of physical volume

Name of rates

Volume,MM USD Share,

%

The physical-volume

index, %2013

Industry - total 116.4

Mining industry and pits 8.3 7.1 108.4

Manufacturing industry 86.2 74 105.5

Electricity, gas, steam and air conditioning supply

20.2 17.4 109.2

Water supply, sewerage system 1.7 1.5 116.3


Sectors of the economy Regional focus is industrial-agrarian field, 37% of the gross regional is industry, 9% - agriculture, 24% - transport and communication, 8% - construction, 14% - trade, 8% - other industries. The structure of the industry is dominated by manufacturing (75.4%), including chemical industry (30.3%) and the processing of agricultural products (33.9%). The share of the mining industry accounts for 7.4%, electricity, gas, steam and air conditioning -17.4%, water supply and sewerage system - 1.5%. A significant contribution to the development of the regional industry enterprises is provided by regional center - Taraz city (101.9% of the regional production). 7 rural areas of the region are predominantly agricultural, remaining three ones have developed industry. Vegetables, fruits, potatoes, cereals (wheat, barley, maize), fodder crops, melons, oilseeds (soflor, sunflower), growing stock of all kinds of animals (cattle, sheep, goats, horses, camels, poultry , pigs) are grown in agriculture. In order to develop trade and economic cooperation with Kyrgyz Republic the creation of trade and logistics center on the border with Kyrgyz Republic is being considered.

Industry The main mining industries in Zhambyl region are mining (quarrying), manufacturing (chemicals, food, and metal), building industry (production of building materials and construction), which are represented by more than 300 large and medium-sized enterprises.


Agricultural complex The natural climatic conditions are suitable for growing crops, technical, melons, fodder crops, vegetables, and fruits. The presence of extensive areas of natural grassland (more than 3 million hectares) causes the development of cattle, sheep, horse breeding. Sown area of crops in 2013 . amounted to 542.8 thousand hectares and it increased compared to the previous year by 15.5 thousand ha or 2.9 %. Much of the area - 243.9 thousand ha or 44.9% of planted grains and legumes , 173.1 thousand hectares or 31.9% - forage crops , 86.1 thousand hectares or 15.9% - oilseeds 38.7 thousand ha or 7.1% - potatoes and vegetables and melons .Compared with the previous year acreage of grain and leguminous crops increased - by 2.0% , oilseeds by 4.6% , field vegetables by 13.5 % , forage crops by 5.1%. For effective use of agricultural land being systematic work to engage into agricultural unused land, diversification of crop areas, introduction of water and water saving technologies.


One of the priorities in the field of agricultural development is to support the development and processing of the agricultural sector, where the main focus will be on deep processing of raw materials for the manufacture of products with high added value. By taking advantage of the location of the area, development of raw materials, the close proximity of the major suppliers of agricultural raw materials (South Kazakhstan, Kyrgyzstan, Uzbekistan) in the region plans to build an industrial zone "Agro-processing logistics center" Taraz ", in which it is planned to accommodate up to 20 companies for deep processing agricultural products (baby food, juice, ketchup, milk products, meat products, canned goods, flour, feed additives, etc.) and facilities that ensure a high-tech storage, handling and preparation of agricultural products.

Welcome to Zhambyl region26Tourism The area has great potential for development of tourism, both domestic and international. The Great Silk Road took part through it, the road which has an interesting historical and cultural sites. There are 3 unique nature reserves in the area. The total hunting area is 13.9 thousand hectares, which is habitat for over than 40 species of animals. In the tourism sector of Zhambyl region there are 92 enterprises, including 29 travel agencies, 63 hotels, yurt camp, wellness center, five recreation areas, nine camps, five spa resorts with mud and mineral waters. In the past year , according to preliminary data , the total volume of services rendered tourist firms increased by 65.6 percent, reaching 119.3 thousand US dollars. At the same trend observed multidirectional development of the tourist industry for all types of tourism, noted in the department. In December 2013 Department of Tourism organized informational tours of historic sites and natural areas for Kazakh representatives of travel agencies and the media. The region has already developed a variety of health, ethnic, environmental and sightseeing tours by Zhambyl region. In 2011, the region adopted a media plan for the development of the tourism cluster until 2014. Zhambyl region has everything for the development of domestic and international tourism. According to many in the tourist industry or region of Kazakhstan is not so generously endowed with historical and archaeological sites, unique natural climatic zones as Zhambyl region. At the same time, the region is on the 11th place out of 16 regions of Kazakhstan to promote tourism.


The competitive advantage of Zhambyl region lies in the unique culture (historical tourism), a beautiful wildlife (ecotourism: a variety of climatic zones and habitats, 19 species of tulips, developed tourist routes through the gorges, dunes, are classified routes for mountaineering, alpine glaciers and passes), and the opportunity to engage in outdoor activities, such as sports tourism, water tourism, adventure tourism. Tourists will be interested to introduce with the national games, songs, music, folk dances. Tracking in the mountains, climbing and rafting can be organized for extreme sports. It is an interesting area for paragliders, there are all conditions to establish even the world's "air" records. Due to the presence of many climatic zones from desert to high mountains in the area, you can find a great variety of flora and fauna.

Welcome to Zhambyl region28 Foreign tourists, birders attract a large variety of the feathered world. It’s important that 19 of 34 species of tulips in Kazakhstan grow in Zhambyl region, so the area holds the record for Kazakhstan and is attractive to botanists all over the world. The vast number of monuments of architecture of the area in terms of transport are easily accessible to tourists. Today in the central market began archaeological excavations in Taraz. The first finds date back to 11-12 centuries AD. This attracts foreign archaeologists and scientists in our region. Particular attention is paid to the development of youth tourism. Every year in autumn people celebrate World Tourism Day. Zhambyl region has a significant tourist and recreational potential and has great possibilities for tourism development.Expanded representation of tourist organizations in the region, the quality of advertising materials. At present, almost all the existing forms of tourism are in the area. As part of the development of the tourism cluster in the area were identified priority areas for the development of tourism, such as environmental, historical, educational, as well as extreme forms of tourism.


Attractions of Zhambyl region This lovely, immersed in the green region, considered a major tourist centre. Here the eye of the traveler are available such gems of Islamic architecture as mausoleums of Aisha-Bibi and Babazhi Khatun, Karahan and Davut Bey, Tekturmas and Mambet batyr. All the tombs are both tourist and cultural, and religious centers. Aisha-Bibi is a gem and a legend of Zhambyl region.Next to the mausoleum of Aisha-Bibi there is another remarkable monument of medieval Kazakhstan - Babazhi Khatun Mausoleum, maids Aisha.

Welcome to Zhambyl region30 Near the mausoleum located Karahan Davut Bey, built in the 13th century. Shamansur Davut Bey was governor of Genghis Khan in the Talas valley and was killed during one of the rebellions. Then Genghis Khan decided to immortalize his memory by construction of the mausoleum. Amazingly, this is the mausoleum almost suffered for all of its long history, and has reached our times in its original form. On the outskirts of Taraz, on a hill near Tekturmas by the river Talas, another historical complex restored and available to the public - Tekturmas (age 10-11) and Mambet batyr holy mausoleums. Now it is a place of constant pilgrimage of tourists not only from Kazakhstan but also from Kyrgyzstan, Uzbekistan, and from other countries. In the vicinity of ancient Taraz there are many facilities with undiscovered and little-known stories. These are Akyrtas fortress, the lower mound Barskhana stone carving painting in the Western Tien-Shan Mountains just twenty kilometers from the city, etc. These objects are the most interesting and accessible to any tourist. The ruins of the fortress Akyrtas are in the 40-km from Taraz, towards Merke district. Simple path, and the object is close to the highway. Not far from the ruins of the fortress, and just 20 kilometers from Taraz towards the spurs of the Tian Shan is the ancient rock art gallery - petroglyphs. Here you can see a lot of interesting images of camels, bulls, mountain goats, deer and humans. In fifty kilometers to the south of Taraz, at the foot of the Karatau ridge, there is the biggest in these parts Bilikol freshwater lake, which reaches a length of 35 km and a width of 10 km. In the vicinity of Taraz there are many natural, historical and heritage sites of interest to the enthusiastic traveler, eager discoveries.


Tourist opportunities of Zhambyl region annually presented at international exhibitions in the cities of Seoul, Beijing, London, Berlin, Tokyo, Madrid. Published annually promotional material, reflecting the tourist potential of the region. For the development of tourism infrastructure in order to create a highly developed tourism industry in the region, as well as turning it into a highly profitable sector of the economy has developed three major investment projects: ski base "Koksai" tourist complex "yurt hotel" and "Tau samaly." Taraz has 2000 years of history, which has the masterpieces of ancient architecture, included in the UNESCO list of world rarities architecture: the mausoleum of Babaji Khatun and Aisha-Bibi. The area is included in the State program "Revival of the historical centers of the Silk Road, preservation and successive development of the cultural heritage of the Turkic-speaking states, the creation of tourism infrastructure".

In the region there are 3 reserves: State Nature Reserve "Tract" Berikkara "(comprehensive) covers an area of 17.5 hectares, where you can find more than 50 species of valuable trees and shrubs and herbaceous plants listed in the Red Book, and of the animals - the argali, Indian porcupine, paradisiacal flycatcher;

Welcome to Zhambyl region32 "Tract" Karakunuz "(botanical) State Nature Reserve, the total area of 3.07 hectares, is located in the western spurs of the Trans-Ili Alatau. Fruit plantations apple, cherry, plum, grape replaced portions of maple wood, black locust, mulberry, walnut; Andasai State Nature Reserve (zoology), a total area of 1,000 hectares, located on the right bank of the river to the west of Shu with Moiynkum. The vegetation is dominated by feather grass, fescue, Anabasis salsa, rare ephemera, black saksaul, overgrown shrub willows. Fauna is represented by argali, wild asses, gazelles, deer, wild boars, hares, pheasants, partridges. The "Western Europe-Western China" international highway is of particular importance in the creation of a tourism cluster . Along the international transport corridor "Western Europe - Western China" will be created by 2015, six roadside infrastructure, and will be carried out the construction, repair and reconstruction of roads to tourist. Provisions for the implementation of three major investment projects: the ski resort "Koksai" complexes "yurt hotel" and "Tau samaly." Creating and developing a network of 2 and 3-star hotels in the region round the class, under the "Business Road Map - 2020" with the involvement of investment in the industry.


Chemical industry Chemical industry Provides more than 70% of export enterprises in the region and takes up to 40% of chemical production in Kazakhstan. Enterprise leader in chemical industry of Kazakhstan is JSC "Kazphosphate" located in In Zhambyl region.

With consideration of chemical industry history, Zhambyl region planns to create "Chemical Park" Taraz" special economic zone with the participation of the "Samruk-Kazyna" National Welfare Fund and "United Chemical Company". The main purpose of "Chemical Park" Taraz" SEZ is the creation of new export-oriented production of chemical products based on high technology.

"Chemical Park "Taraz" SEZ involves the creation of some 15 plants producing a wide range of products. A number of projected production has no analogues in CIS.

As a result of these projects forecasted annual income generated by enterprises SEZ will be up to 489 MM USD. The project is of great social importance, since provides for the creation of more than 1.5 thousand work places.

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Welcome to Zhambyl region34Light industry Light industry occupies a small share in the economy of the region, providing only 0.14% of the total manufacturing industry. The volume of production in 2013 amounted to 8,1 million USD (IFO - 50.8%). The share of industry in the manufacturing sector was 0.8%. The sector number of employees is about 0.5% (about 600 people) of the total employment in the economy of the region. The share of output of light industry in GRP is 0.06%. The gross value added in the sector amounted to 6 624 502,84 USD. In total export share of exports of light industry is only 1.1%. More than 80% of the companies involved in the sector are small and medium businesses. However, favorable conditions for the development of fine-wool sheep, the presence of state support for the industry with growth potential income and production facilities ("NSP-Taraz Factory" and "Tarazkozhobuv") can develop in the production of wool tops, footwear products and accessories of skin. In the third part of the structure of the industry is the production of leather products and two-thirds of the textile and clothing industry, which is mainly represented by the production of wool. The only major company in the wool industry is «Factory SEZ-Taraz" engaged with scoured wool. Manufacture of footwear in the area over the period 2006-2009 decreased by 50% in the overall growth of the production of footwear in Kazakhstan by 18% per year. The main producer of footwear is "TarazKozhObuv".


The main enterprises of light industry are concentrated in Zhambyl region, in Taraz.

The strengths of the light industry in Zhambyl area include, first of all favorable conditions for the development of the region's fine-wool sheep and other livestock. The largest number of sheep in Zhambyl falls on three areas - Kordai (about 15% of sheep Zhambyl), Talas (about 14%) and T. Ryskulov (about 13%). The volume of wool clip in Zhambyl distributed fairly evenly across all areas.

Food industry The food industry is one of the most promising sectors for the development of the region, which is based concentration of production of raw materials, processing facilities in suburban areas of the region, eco-friendly products, the availability of relatively close to the sales market - Kyrgyzstan.

The second largest region in food production is Merke area where the bulk of the production comes from "Merke sugar factory" LLP, "Merke cheese factory" LLP, "Alkopischeprom" LLP and "Merke day" LLP.

In 2009 total export of processed products composed 17%. Sugar, flour, onions, vegetables, salt, technical, imported dairy products, confectionery, beverages, juices, preserves, butter and vegetable oils etc. are the products that mainly exported from the field.

In the processing of agricultural products, mainly engaged in small businesses, which are housed in converted premises, equipped with production and processing equipment which has been used, which is physically worn out and obsolete.


SUPPORT SERVICES FOR INVESTMENT IN ZHAMBYL REGION

Support for investment in Zhambyl region "Investor Service Centre" was created to attract foreign and domestic investors, as well as support for investments in Zhambyl region.

The main functions of the center are: - To attract foreign and domestic investors to the region; - Conducting business meetings, negotiations and support for investors; - Information-analytical support for investors, development institutions and other stakeholders; - The formation of a regional database on prospective and existing projects of Zhambyl region; - Formation of a database of potential foreign investors; - Forming the base of investment projects that need funding.

For complete information, visit the MBIID website

“Investors Service Center” of Zhambyl region”Republic of Kazakhstan Support for investment in Zhambyl region, Taraz, Tole 35Tel./fax: 8 (72 62) 43 89 02, 43 89 03E-mail: [email protected], [email protected]: www.dppzhambyl.gov.kz


Support for investment in Zhambyl region

1. You wish to make a good investment of your person-al funds.

We will help you pick the investment project that best suits you.

2. You already have a rough plan, as well as funding for it.

We will help you work out your plan and calculate the costs.

3. You wish to network with local businesses.

We will help arrange meet-ings with representatives from Kazakhstan’s businesses, potential partners.

4. You are considering man-ufacturing your products in Kazakhstan, but you lack start-up capital.

We will help you find a part-ner with whom you can start a joint venture.

5. You want more information on investment in Zhambyl region.

We will give you the advice you need.

6. Your situation is different. We will meet with you to dis-cuss the ways we can help.

Our partners are central and local development institutes, embassies of Kazakhstan abroad.

Investing in Zhambyl region - is it profitable? / Why is it profitable? 1. Natural resources 2. Stable economic growth3. Favorable business climate4. Proximity to largest Regional Markets5. Market capacity


"National Agency for Export and Investment «KAZNEX INVEST» JSC of the Ministry of Industry and New Technologies of the

Republic of Kazakhstan is one of the national institutions and designed to promote the development and diversification of the national economy by creating more favorable conditions for the development and promotion of Kazakhstan's non-oil exports and attracting foreign direct investment in priority sectors of the economy. KAZNEX INVEST operates within the framework of the State Program of Forced Industrial-Innovative Development of the Republic of Kazakhstan for 2010-2014. Mission is to promote actively the effective functioning of national development and promotion of non-oil domestic exports and attracting foreign direct investment in the priority sectors of the economy. Vision - a reputable organization involved in the diversification of the economy, with the established mechanism of work and professional team of staff.

Strategic business areas: • Export development; • Export promotion; • Search and support of foreign investors; • Promoting investment image of Kazakhstan. In providing support to attract foreign investment in the priority sectors of the economy, the following instruments are used:Customer Support: • the selection and structuring of investment projects; • search for foreign investors; • conducting international business forums in Kazakhstan and abroad with an invitation to potential investors;

BUSINESS DEVELOPMENT INSTITUTIONS


• conducting a road show for potential foreign investors on specific investment projects; • Organizing meetings and full support for investors in the country; • assistance in obtaining public support and solving administrative problems of investors.

Information and analytical support: • comparative analysis of conditions for foreign investment in Kazakhstan; • study of international investment markets; • support national interactive website, which includes all the information about investment opportunities in Kazakhstan; • publication of specialized publications on the presentation of investment opportunities in Kazakhstan for investors; • advising foreign investors on doing business in Kazakhstan; • creating a database of potential foreign investors and investment projects; • an advertising campaign in the international media about the investment opportunities in Kazakhstan. KAZNEX INVEST is a member of such authoritative international organizations, such as: World Association of Investment Promotion Agencies (WAIPA). Currently WAIPA unites 244 investment promotion agencies from 162 countries of the world. TPO Network World Trade Centre (UNCTAD / WTO). In the Network of TPOs include trade promotion organizations from 115 countries of the world. For KAZNEX INVEST membership WAIPA Network of TPOs and provides unique access to the best international practices in the field of investment and export promotion, allows to establish business contacts with foreign partners, to share relevant information on trends in foreign investment and international trade.


KAZNEX INVEST actively collaborate with the UN Development Programme in Kazakhstan on issues such as: - development of the Kazakh sector brand; - development of the functions of export packing Kazakh goods; - occurrence of Kazakh goods in humanitarian suppliesin the framework of the "Wider Europe: Aid for Trade in Central Asia, South Caucasus and Western CIS", aimed at the national assessments in the areas of trade.

Cooperation with foreign partners KAZNEX INVEST established partnerships with 39 foreign similar agencies such as ApexBrasil, South Korea KOTRA, Japanese JETRO, Australian Austrade, British UKTI, Polish Palilz etc. Agreements reached KAZNEX INVEST allow exchange of information with partners about doing business in the country of the partner about the legislation and measures in support of the regulation of international trade and investment.

Contacts:010000, Republic of Kazakhstan, Astana, st. Syganak 25, Business center "Ansar", 2nd Floor Tel: + 7 (7172) 91 90 40 (reception) Fax: +7 (7172) 91 60 50 [email protected]

National Agency for Technological Development" JSC was found with one hundred percent state participation

in the share capital and Agency is the successor of "National Innovation Fund "JSC.


The agency was created to assist in the coordination process of innovation development and provision of government support measures. The competence and powers of the Agency are prescribed by the Law "On state support of industrial innovation" on January 9, 2012, in which the field of innovation support are provided: - system planning process of the country; - 14 tools of industrial and innovation development support; - 4 new types of innovation grants; - presents the analysis of mechanisms for the implementation of industrial and innovation policy`s effectiveness; - improvement of supporting innovation mechanisms. The main activities of the Agency: - Informational and analytical support for innovation - Development of the commercialization system - Development of an effective innovation infrastructure - Administration of service tools designed to support innovation - Investment support for innovative projects - Promotion of innovation process The main instruments of the Agency for business support: - Innovative Grants; - Project Financing; - Financing through venture capital funds; - Provision of technology business incubation; - Provision of design offices; - Provision of international technology transfer centers

Contacts:010000, Republic of Kazakhstan, Astana, st. Dostyk 18,Business Center "Moscow", 7th floor Tel.: +7 (7172) 571-012 / 571-014 / 571-018 Fax.: +7 (7172) 919-021; +7 (7172) 571-014 (ext. 2) [email protected]

Welcome to Zhambyl region42“SEC TARAZ” JSC NC The mission of «SEC Taraz» JSC NC is promotion of the economy of Zhambyl Region by means of consolidation of state and private resources, support and stimulation of the social development of the region, implementation of the regional state economic policy.

Projection of «SEC «Taraz» JSC NC: «SEC Taraz» JSC NC plans to become the largest state investment company in the region by 2022, implementing public private partnership policy. As the regional development institution, it will attract investments for investment project delivery, which will contribute to the development of entrepreneurship, and will become the government’s safe partner in realizing state social programs. I. Strategic direction: «Increase of shareholder value of the Social Entrepreneurship Corporation (SEC)» Goal: enhance the shareholder value of the SEC; Objectives: Readjustment of state assets that the corporation got; Attraction of investments in the region by co-financing from the corporation; Implementation of projects the use of subsurface resources;


II. Strategic direction: «Promotion of the social and economic development of Zhambyl Region»Goal: Promotion of the social and economic development of the region Objectives: Increase the number of workplaces in Zhambyl Region; Use of net profit for social and economic development of the region. III. Strategic direction: «Implementation of state programs in Zhambyl Region»Goal: Implementation of State Social Programs. Objectives: Raising the Regional Stabilization Fund of food commodities; Implementation of the Program «Modernization of Housing maintenance and utilities board for 2011-2020»; Implementation of the Program «Employment – 2020» via micro-credit organizations, helping small scale business priority sectors of economy in the region.

Contacts:080000, Republic of Kazakhstan, Taraz, st. Baizak batyra, 204Tel.: 8 (7262) 96 22 00 web-site: www.spktaraz.kze-mail: [email protected]


Main goal of Entrepreneurs Service Center Creating favorable conditions for business development in the region, offering consulting and services business entities, attracting investments in the economy of Zhambyl, innovation and public-private partnerships, in implementing the programs of all state support of entrepreneurship in the region.

Functions of ESC - Support business in the region through the provision of consulting services; - To assist in the implementation of government programs to support entrepreneurship; - Consultations on instruments of state support of innovation; - Assistance in obtaining funding for the development and innovation; - Training the entrepreneurs to bases of business, involving industry experts and entrepreneurs, to conduct master classes; - Training and education of employees of enterprises with the assistance of highly qualified lecturers; - Maintaining a database of innovation in the region; - The search for investors to attract investment in Zhambyl region; - Assistance in implementation of investment projects and budget investment projects through public-private partnerships; - The development of public-private partnerships in the region; - Providing legal advice and services to entrepreneurs, the drafting of legal documents; - Obtaining permits (building permits, act of commissioning, technical specifications, etc.).

ENTREPRENEURS SERVICE CENTER OF ZHAMBYL REGION


Nonstructural departments of ESCRegional divisions institutions and financial institutions: - JSC "Kazagrofinance" - JSC "Agrarian Credit Corporation" - JSC "Fund for Financial Support of Agriculture" - JSC "Kazagromarketing"

Representatives of institutions and financial institutions - Employees of second tier banks (loan officers); - Employees of Public service centers to carry out state registration of documents and transactions business, receiving and issuing documents for entrepreneurs;

Contacts:080000, Republic of KazakhstanTaraz, str. Zheltoksan, 94 Tel.: 8 (7262) 43-66-13 / fax: 8 (7262) 54-11-51 e-mail: [email protected]


Guarantees for the protection of investors' rights Stipulated by the Law “On investments” of the Republic of Kazakhstan dated January 8, 2003 №373-II provides various safeguards that reduce to minimize the risks that may be incurred by the investor in case of investment activities.

Kazakhstan guarantees such as:

1. Legal protection is guaranteed to investors in the territory of the Republic of Kazakhstan and Zhambyl region. The investor enjoys full and unconditional protection of rights and interests. The investor has the right to compensation for harm caused by state directives that are unrelated to RK law, as well as by illegal acts (failure to act) of state officials. Kazakhstan guarantees the stability of the conditions of contracts between investors and state bodies of the RK.

2. Free use of income is guaranteed. Investors have the right to use at their own discretion incomes received from their activities, after paying taxes and other mandatory payments into the budget.

3. Publicity of state activity concerning investors is guaranteed. Formal state information and normative legal directives affecting the interests of investors are published, in the other established by the legislation of the Republic of Kazakhstan. Investors have free access to information on the registration of legal bodies, on their regulations, on the registration of real estate transactions, and on issued licenses, excluding information containing commercial or other confidential information protected by law.

INVESTOR PROTECTION


4. Rights of nationalization and requisition are guaranteed to investors. Confiscation of the investor’s property ( nationalization, requisition) for state needs is permitted in exceptional cases, provided by the legislation of the Republic of Kazakhstan. Upon nationalization, the Republic of Kazakhstan will compensate the investor for all losses resulting from implementation of the legislative acts of the Republic of Kazakhstan on nationalization. Requisition of the investor’s property is carried out by paying him the market cost of the property.

Agreement on encouragement and mutual protection of investments signed by Republic of Kazakhstan. (The list of countries with which Kazakhstan signed agreement on encouragement and mutual protection of investments) Kazakhstan signed 47 bilateral and one multilateral agreement on encouragement and mutual protection of investments that create a favorable legal environment for the promotion and protection of Kazakh investment abroad and foreign investment in Kazakhstan.

List of countries with which Kazakhstan signed the Agreement on encouragement and reciprocal protection of investments:

Bilateral agreements1) Austria; 2) Georgia; 3) Latvia; 4) Turkey; 5) Azerbaijan; 6) Egypt; 7) Lithuania; 8) Russia; 9) Armenia; 10) Israel; 11) Malaysia; 12) Uzbekistan; 13) Belgian-Luxembourg Union; 14) India; 15) Mongolia; 16) Ukraina;17) Jordan; 18) Netherlands; 19) Finland; 20) Iran; 21) Pakistan; 22) France; 23) Bulgaria; 24) Spain; 25) Poland; 26) Czech Republic; 27) Great Britain; 28) Italy; 29) Romania; 30) Switzerland; 31) Hungary; 32) Qatar; 33) Serbia; 34) Sweden; 35) Vietnam; 36) China; 37) Slovakia; 38) Estonia; 39) Germany; 40) Kuwait; 41) U.S.; 42) South Korea; 43) Greece; 44) Kyrgyzstan; 45) Tajikistan; 46) Macedonia; 47) Afghanistan

Welcome to Zhambyl region48Multilateral agreement

The Eurasian Economic CommunityThe largest countries - investment projects

implemented with the participation of foreigners with investors in Zhambyl region.

Investment projects with foreign companies, realized and implemented in Zhambyl region


Investment projects with foreign companies planned to implement in Zhambyl region

Welcome to Zhambyl region50Why Zhambyl region?

Investment opportunities

Zhambyl region is a region with a rich history and great prospects for economic development, which has a number of important competitive advantages. This is - a favorable geographical position, infrastructure, transport and engineering. Our region has a high industrial, economic, scientific and employment potential and is one of the main traditional cultural centers of the Republic of Kazakhstan.

The development of investment processes in the priority areas: industrial, agricultural, tourism, transport and logistics sectors, is a strategic objective in the region.

The legal framework in the Republic of Kazakhstan is improving every year, but remained unchanged in the main - clearly expressed direction to support business - oriented to financing in various sectors of the economy.

Zhambyl region is one of the regions of the Republic of Kazakhstan, which has the potential for development of dairy cattle and sheep. There is also a good base for horse breeding, grown in the region such breeds as the Akhal-Teke, Kazakh, Don .. Outlook for the region is the sport horse breeding, which is quite a profitable industry. The presence of vast desert land in the range facilitates breeding of camels, which do not require high labor costs.

Using the agricultural potential and advantages of the region, investors could become major suppliers, export-oriented, high-tech agricultural production in the framework of regional and global markets.


The favorable location

Given the favorable geographical position Zhambyl area has high transit potential of Kazakhstan due to the location in the center of the Eurasian continent, the passing traffic flows from Central Asia.

The region takes the TRACECA transport corridor and "Western Europe - Western China" highway. This project will increase the transit through the region of 300 million tons. Also the area is characterized by a relatively high density of roads of regional importance and paved roads.

The strengths of the construction sector of Zhambyl region include provision of primary building materials: gypsum, gravel, sand and clay.

The area is characterized by favorable conditions for the development of fine-wool sheep. In addition, the favorable climatic conditions for the cultivation of vegetables.

The industrial potential of the region is determined large export-oriented sector of the industry - the production of fertilizers.

The state of the social sphere is characterized by favorable demographic situation, with positive rates of natural growth of the population.

Recent years have seen an increase in the number of economically active population and the reduction of total unemployment.

Welcome to Zhambyl region52A rich source of raw materials One of the principal assets of Zhambyl region is its natural resources. Kazakhstan has significant reserves of potassion and other salts, borrit, bromine compounds, sulfates, phosphates, pyrite in the ores for production of sulfuric acid and other chemicals.

Kazakhstan has rich raw materials for glass and whiteware industry: rare gems, a variety of construction and facing materials

The area is an unique base of phosphorite and fluorite raw materials rich in non-ferrous metals (copper, gold, silver, lead, zinc, etc.), barite, coal, facings, ornamental stones and engineering, building materials (asbestos, cement raw materials, and expanded clay, plaster, etc.), natural gas.

The region has about 71.9% of balance reserves of phosphate rock (the largest reserves in the CIS), 68% fluorspar (one of the leading places in the world in terms of fluorspar), 65.1% of quartzite, 8.8% of the gold, 3% copper, 0.7% uranium. Feed stocks and technical salt up to 10 million tons. There is the largest deposit of quartzite in the country, marked a titanium-magnetite fields.

The area is ranked 3rd in the country in the number of explored reserves of underground water. The region’s territory has its own small amounts of surface water. The total state forest area is 4 189 hectares.

Favorable Business - Climate (Foreign Direct Investment)It is easier to do business!

In July 2011, the President signed "On amendments and additions to some legislative acts of the Republic of Kazakhstan on the improvement of the permit system" Law, which came into force at the beginning 2012.

In the development of the Law of the active involvement of experts of the USAID project to improve the business - environment in Kazakhstan and the Forum of Entrepreneurs of Kazakhstan.


• This law is aimed at reducing the paper burden costs associated with the completion of forms, statements, direct cash costs, reducing travel time to start a business.

• Under the Act, the types of activities subject to licensing will be reduced by almost a third.

Investing in Zhambyl region. Is it risky to you?

In order to reduce the risk of investment and guarantee the protection of foreign investors, they will be given national status. In other words, foreign and local companies are working under conditions of equal investment.

After acceptance of the final decision on visiting Zhambyl region you can contact:

“Investors Service Center” of Zhambyl region”The Republic of Kazakhstan Support for investment in Zhambyl region, Taraz, Tole 35Tel./fax: 8 (72 62) 43 89 02, 43 89 03E-mail: [email protected], [email protected]: www.dppzhambyl.gov.kz

Benefits for potential investors: By entering the Customs Union, Kazakhstan creates for investors more attractive market with 170 million people and opens up additional possibilities for effective investment projects in the Republic.Uniform traderules: • united customs territory; • uniform trade policy; • uniform customs code; • free trade of goods within the customs area. Incentives for investors: Exemption from customs duties on imports of production equipment and raw materials for investment projects in Kazakhstan; Tax is more conducive (favorable) to business, compared to Russia and Belarus.


We will help you arrange your visit to Zhambyl region

ARRIVAL IN KAZAKHSTAN / VISAHow to get a visa?

For entry into the territory of the Republic of Kazakhstan you must obtain a visa, unless otherwise specified in the agreement between the Republic of Kazakhstan and the party or the Government of the Republic of Kazakhstan.

To obtain a visa, foreign citizens must apply to the diplomatic mission or consular post of the Republic of Kazakhstan in country of residence and submit the following documents: 1. A valid passport or other document granting the right to cross the state border of the Republic of Kazakhstan, the validity of the passport must not expire earlier than 6 months after the expiry of the visa. 2. A copy of the invitation letter with number of visa support of the Ministry of Foreign Affairs of the Republic of Kazakhstan (MFA) or the original individual invitation issued by the Police of the Republic of Kazakhstan / visa application.


3. A completed application form 4. Color photo sized 3.5 * 4.5 (1 ea.) 5. Receipt of visa fee payment .

The need to provide other documents determined by the consul on the spot.

Categories of visas for investors

Investor visas are issued to managers and executives of large foreign firms and companies involved in investing in the economy of Kazakhstan, as well as their families. Investor visas are issued for single, double, triple and multiple entry and exit.

Business visa is granted to foreigners in Kazakhstan on a business trip (trip, participation in business negotiations, which has a no-nonsense character, symposiums, conferences, tenders, contracts, participation in fairs and exhibitions, the implementation of trade, international transport, advisory and audit services). Business visas are issued for single, double, triple and multiple entry and exit.

Visa to work is issued to foreigners to work, traveling to Kazakhstan to work. The visa is issued for work on the single, double, triple and multiple entry and exit.

Private visa is granted to foreigners in Kazakhstan with the objectives of a private nature. Private visas are issued for single, double, triple entry and exit.

Tourist visa is granted to foreigners in Kazakhstan with the purpose of tourism. Tourist visas are issued for single, double and triple entry and exit.

Welcome to Zhambyl region56Visa's fee Visa's fee is between 10 and 400 USD. Visa registration takes no more than five working days. The most common categories of entry visas are investment visas, business visas, and official visas. Such visas include the right of single, double, triple, or multiple entry and in most cases are issued for the term of three years.

Registration of foreign citizens

At the entrance to the territory of Kazakhstan, foreign citizens receive in the division of border control migration card stamped on entry.

Within 5 calendar days from the date of entry of a foreign citizen must apply to the territorial division of the migration police for registration.

The registration of passports of 28 economically developed and politically stable countries is carried out automatically:

• Simultaneously with the issuance of the business, tourist, private, diplomatic and official visas to consular establishments of Kazakhstan abroad;

• either directly on the border to border control units.

In the above cases, the foreign national is not necessary to register with the immigration police.

Registration of passports of foreign nationals is free of charge and is issued for a period of up to 3 months.


For the delay, and (or) non-registration administrative liability in the form of fines and (or) the deportation from the Republic of Kazakhstan to the ban on entry to the subsequent period of 5 years from the date of expulsion.

A list of 28 economically developed and politically stable countries

1. Australia 15. Malaysia2. Austria 16. Manako3. Belgium 17. Netherlands4. Germany 18. Norway5. Greece 19. Portugal6. Denmark 20. Singapore7. Ireland 21. United Kingdom and

Northern Ireland8. Iceland 22. USA9. Spain 23. Finland10. Italy 24. France11. Zealand 25. Switzerland12. Canada 26. Sweden13. Liechtenstein 27. South Korea14. Luxembourg 28. Japan

The first address for the treatment of foreign investors in Zhambyl region:

- Investors Service Centre of Zhambyl region - Investments Committee of the Ministry of Industry and New Technologies

Welcome to Zhambyl region58INVESTING IN ZHAMBYL REGION / STATE SUPPORT

Privileges and preferences

Investment preferences Investment preferences are granted in priority sectorsaccording to the list approved by the Government of the Republic of Kazakhstan on May 8, 2003, number 436.

In accordance with the Law "On Investment" Investors receive: - Exemption from customs duties for the import of equipment and components needed for the implementation of the project;

- Government land grants: land, buildings, structures, machinery and equipment, computer equipment, measuring and control devices and equipment, motor vehicles, except passenger cars, industrial and household tools.

In all matters relating to the provision of investment preferences, you can contact the Investment Committee of the Ministry of Industry and New Technologies of the Republic of Kazakhstan. For this it is necessary to apply to the Investment Committee of the Ministry of Industry and New Technologies of the Republic of Kazakhstan and sign it.

According to the Tax Code of the investor may get tax breaks: the cost of the objects of preferences and (or) further costs for the modernization and reconstruction can be treated as a deduction for a period of up to three years. Stay loss carry forward for 10 years. Tax benefits does not require a contract.


Privileges for members of special economic zones Tax incentives for SEZ participants: • reduction of the calculated corporate income tax (CIT) by 100%;

• application of the coefficient 0 to the corresponding rates in the calculation of land tax;

• Use the 0% rate to the average annual cost of taxable items when calculating tax on property;

• the imposition of value added tax (ODC) at a zero rate in the implementation of the SEZ goods, completely consumed in the implementation of activities that meet the objectives of the creation of SEZ, according to the list of goods specifiedGovernment of the Republic of Kazakhstan;

• Rate 0 for land lease to 10 years.

Nowadays there is "Chemical Park Taraz" Special Economic Zone (SEZ) in Zhambyl region: • the principle of "one window" in the provision of public services • procedure in place for the free customs zone • land provided infrastructure facilities in whole or in part by the budget • Issuance of permits for foreign labor is performed in a simplified manner • SEZ participants are granted tax exemptions Nowadays in Zhambyl region there is SEZ "Chrmical Park Taraz"

Welcome to Zhambyl region60START BUSINESS IN ZHAMBYL REGION

For registration of the legal entity to the registration authority (the Ministry of Justice of its territorial units) provided the necessary documents.

Documents required for registration: • an application in the prescribed form, signed by the founder or the founder of the authorized person; • a list of constituent and other documents in the state and Russian languages in the form of stringed and numbered, in triplicate; • copies of documents proving the identity of the director and founder of the legal entity, their testimony of the taxpayer.

If the founder is a legal entity to another entity to provide: • a statement of the tax authority of absence (presence) of the founder is a legal entity of the tax payable to the budget of the Republic of Kazakhstan; •acertifiedcopyofthecertificateofstateregistration(re-registration); •acertifiedcopyofthestatisticalcard(ifavailable); •acertifiedcopyofthetaxpayer

Registration of the business

Registration of legal entities with foreign participation in the manner prescribed for the registration of legal entities of Kazakhstan.

Additionally must submit the following documents: • legalized extract from the Commercial Register or other legalized document certifying that the founder, a foreign entity is a legal entity under the laws of a foreign country, with a notarized translation into Kazakh and Russian languages;


• a copy of the passport or other identity document of the founder - a foreign individual, with a notarized translation into Kazakh and Russian languages. • a document certifying the location of the legal entity, • receipt or other document confirming payment of the fee for state registration of legal entities and registration of branches and representative offices.

To establish a branch or representative office of a foreign legal entity must submit: • a statement of registration; • regulations on the branch (representative office), approved body of the legal entity; • power of attorney issued by a legal entity body of the head of the branch or representative office with a notarized translation into the state and Russian languages; • the decision of the legal entity to establish a branch (representative office) with a notarized translation into the state and Russian languages; • legalized extract from the Commercial Register or other legalized document certifying that the entity, 90 91 opening branch (office) in the Republic of Kazakhstan, is a legal entity under the laws of their country, with a notarized translation into the state and Russian languages; • legalized document certifying the tax registration of the foreign legal entity in the country of incorporation, with a notarized translation into Kazakh and Russian languages; • a legalized copy of the charter of a foreign entity, a notarized translation into the state and Russian languages; • a copy of the constituent documents of a legal entity with a notary the certified translation into the state and Russian languages; • proof of address; • receipt or other document confirming payment of the fee for state registration of legal entities and registration of branches and representative offices.

Welcome to Zhambyl region62Registration deadlines:

for small businesses

for subjects of medium and large conducting their business

activities on the basis of a model charter

record registration of their branches and missions

no later than 1 working day

following the date of filing

required documents

State re-registration of small entrepre-neurship and subjects of middle

and large enterprise engaged its activi-ties on the basis of a model

charter record registration of their branches and representative offices

no later than 3 working days

following the date of filing required documents

state registration (re-registration)medium and large entities business carrying its activities on the basis statute, which is not a typical record registration (re-registration) their branches and representative offices

no later than 7 working days

following the date of filing required documents

for small businesses, for subjects of medium and large businesses operating on the basis of a model statute record registration of their branches and representative offices at the same time

no later than

5 working days

from the date of submission of the required

documents

for subjects of medium and large businesses that operate on the basis of the statute, which is not a standard, their branches and representative offices

no later than 11 working days from the date of submission of the required documents

Terms of issue of the documents when registering:


After receiving the state registration of the organization:

• receives: a certificate of state registration, statistical card and a certificate of registration with the tax authority;

• can produce print and open a bank account.

Investors have the right to open banks in the territory of the Republic of Kazakhstan bank accounts in national currency and (or) foreign currency in accordance with the banking and currency legislation of the Republic of Kazakhstan. Branches and representative shall have the right to work through foreign accounts.

Enterprises registered in the territory of another State is not prohibited to do business in Kazakhstan, it is necessary to stand up to the tax records for the place of business, fixed establishment or property.

Contact of Justice Department in Zhambyl region

Taraz city, str. Tole bi, 55

8 (72 62) 43-05-05

Website: www.adilet-zhambyl.gov.kz


Foreign labor

The Labor code regulates relations between employers and employees. According to the Labor code, each employee should sign a contract stipulating the employee's rights, duties, and guarantees.

According to the rules for definition of quotas and permission for employers to hire foreign workers, before the workers enter into the employment contract, the employer must obtain for them the akimat's work permit.

Rules do not apply to:

• Heads of branches and representative offices of foreign organizations;

• Employers attracting foreign labor, who are the heads of legal bodies of RK, whose authorized capital share in foreign legal and physical entities is at least 50%; members of the Board of Joint Stock Companies of RK in which at least 50% of shares are owned by the state or foreign legal or physical entities;

• Persons on a short-term business trip, provided that the total duration of such business trips within a year does not exceed 60 calendar days.


Annually, the government establishes a quota on work permits that may be issued to foreigners. As of now, the quota is 0.75% of the working force. Employers should inquire into the quotas on work permits for next year beforehand, up to September 1 st of this year. Work permits are issued under the following conditions:

1. Training and hiring of Kazakhstan's citizens, who in time will replace the foreign personnel (for the purpose of creating new jobs);

2. Replacement of foreign personnel with Kazakhstan's citizens with corresponding qualifications;

Creation of additional workplaces for Kazakhstan's citizens, etc.

3. In most cases, work permits are issued for the period of one year. The issued permit is not subject to transfer to other employers;

It is operative only within the territory of the corresponding administrative and territorial unit. The employer may send the foreign workers who have received permits on business trips to other enterprises and to organizations in other areas of the country for no more than 120 calendar days within the year.

According to Kazakhstan’s legislation, within 10 working days after the employer (the legal entity) registers with the state, he must insure his workers against personal injury or mortal danger while they are performing the duties of their job.

Welcome to Zhambyl region66Receipt of a license

Licenses are divided by the volume of activity to:

1. general - issued an indefinite period (usually a license to carry out certain activities or work);

2. single - to commit a particular business transaction within the allowed volume, weight or number, and time period (for example, export or import licenses);

3. operational - for certain transactions in the banking business and operations associated with the use of currency values determined by the currency legislation.

Licensing is required for certain activities in the following areas: 1. industry; 2. the use of nuclear energy; 3. turnover of toxic substances; 4. transport; 5. trafficking in narcotic drugs, psychotropic substances and precursors; 6. information security; 7. special equipment to carry out search operations; 8. trafficking of arms, military equipment and certain

types of weapons, explosives and pr oducts with their application; 9. use of outer space; 10. informatization and communication; 11. education; 12. the media; 13. agriculture and forestry, geodesy and cartography; 14. health care; 15. services for individuals and legal entities; 16. gambling; 17. veterinary science; 18. forensic expert;

To do certain activities in Kazakhstan requires a license.


19. culture; 20. financial sector and the activities associated with the concentration of financial resources; 21. architecture, urban planning and construction; 22. making the state symbols of the Republic of Kazakhstan; 23. customs; 24. production and turnover of ethyl alcohol and alcohol

To obtain a license and the application for a license (in the case of sub-activities) licensor (sectoral competent authority depending on the scope of) the following documents: 1. The application; 2. Copies by laws (except export and import) and the certificate of state registration as a legal entity (notarized in case of non-originals for verification) - a legal entity; 3. A copy of an identity document - for an individual; 4. A copy of state registration as an individual entrepreneur (notarized in case of failure of the original for verification) - for individual entrepreneur; 5. A copy of the applicant's tax registration (notarized in case of failure of the original for verification); 6. A copy of the document confirming payment of license fee for the right to engage in certain activities (notarized in case of failure of the original for verification); 7. Information and documents in accordance with the qualification requirements. Additional requirements to the list of documents when issuing a license to engage in activities in the financial sector and the activities associated with the concentration of financial resources, can be set by the National Bank of the Republic of Kazakhstan and the authorized state body for regulation and supervision of financial market and financial organizations in accordance with the laws of the Republic of Kazakhstan.

Welcome to Zhambyl region68For applications for licenses in the activity for which a license, the following documents: 1) Application; 2) A copy of the license (notarized in case of failure of the original for verification); 3) Information and documents in accordance with the qualification requirements for sub-activity.

"E-licensing" "E-license" State database allows you to submit the documents required to obtain a license in electronic format on the Internet by filling in the registration form through the gateway of the "Electronic Government". Details on site - www.elicense.kz.

Terms of license issue • no later than 15 working days from the date of submission of the required documents • no later than 30 working days - for a license in the field of nuclear energy use in the financial sector and the activities related to the concentration of financial resources.

If the licensor in a timely manner has not issued a license to the applicant, and (or) the application for a license or has not provided a reasoned refusal to issue a license, and (or) the application for a license, then the date of expiry of their licenses and (or) the application for a license considered to be issued. Licensor must give not longer then 5 working days from the date of issuance of the license expiration, and (or) the application for a license shall issue the applicant a license and (or) the application for a license. Otherwise, the license and (or) the application for a license shall be deemed received and the document confirming the validity of the licensed activity to obtain the license itself is a copy of the inventory with a note of the date of receiving the documents licensor.


Rules do not apply to:

- Heads of branches and representative offices of foreign organizations;

- Employers attracting foreign labor, who are the heads of legal bodies of RK, whose authorized capital share in foreign legal and physical entities is at least 50%; members of the Board of Joint Stock Companies of RK in which at least 50% of shares are owned by the state or foreign legal or physical entities;

- Persons on a short-term business trip, provided that the total duration of such business trips within a year does not exceed 60 calendar days.

Annually, the government establishes a quota on work permits that may be issued to foreigners. As of now, the quota is 0,75% of the working force. Employers should inquire into the quotas on work permits for next year beforehand, up to September 1st of this year.

Regulation of labor relations

The Labor code regulates relations between employers and employees. According to the Labor code, each employee should sign a contract stipulating the employee’s rights, duties, and guarantees.

According to the rules for definition of quotas and permission for the employers to hire foreign workers enter into the employment contract, the employer must obtain for them the permission from the akimat’s.

Operating without a license can result in administrative and criminal responsibility in the form of fines and confiscation of the proceeds from the unlicensed activities of the company. Operating without a license is also a formal basis to invalidate transactions entered into during the infringement period and to liquidate the company, breaking the rules of licensing.

Welcome to Zhambyl region70Work permits are issued under the following conditions:

1.Training and hiring of Kazakhstani citizens, who in time will replace the foreign personnel (for the purpose of creating new jobs);

2.Replacement of foreign personnel with Kazakhstan's citizens with corresponding qualifications;

3.Creation of additional workplaces for Kazakhstan's citizens, etc.

4.In most cases, work permits are issued for the period of one year. The issued permit is not subject to transfer to other employers;

5.The employer may send the foreign workers who have received permits on business trips to other enterprises and to organizations in other areas of the country for no more than 120 calendar days within the year.

Customs tariff regulation On the territory of Kazakhstan, Russia and Belarus, a common customs territory.

When import goods and vehicles into the customs territory of Kazakhstan are charged:

• customs duty;

• customs fees for customs clearance of 50 euros for the main page of the cargo customs declaration and 20 Euro for each additional page of the cargo customs declaration;

• value added tax of 12% on taxable imports (amount of taxable imports includes the customs value of the goods and the amount of taxes and other obligatory payments to the budget of the importation of goods, with the exception of VAT;

• excise tax for certain types of goods.


According to the Common Customs Tariff of the Customs Union, import duties vary from 0% to 80%. Uniform Customs Code of the Customs Union, establish different types of customs regimes, some of which provide for full or partial exemption from customs duties.

Limit on the weight and value of goods for personal use. Without the obligatory customs declaration and payment of customs duties is allowed to import goods worth up to 1,500 euros and a total weight of 50 kg per person. If this limit is exceeded, the fee shall be payable at the rate of 30% of the purchase price, but not less than 4 euros per kilo in excess.

Rates of export customs duties approved by the Government of the Republic of Kazakhstan on June 7, 2010 № 520 and ranged from 10 to 30% with the exception of certain types of goods.

Import / export of currency, securities, bills of exchange, checks:

• As part of the customs territory of the CU - carried out without restrictions and customs declaration.

• with third countries / territories of third countries on the amount exceeding the equivalent of 10,000 U.S. dollars subject to customs declaration in writing by submitting by passenger. customs declaration for the entire amount of imported or exported values.

Welcome to Zhambyl region72Currency regulation

Currency laws differentiate between currency regulations for residents and non-residents of Kazakhstan.

Residents are citizens of Kazakhstan (except those who have permanent residency abroad) and foreigners (and persons without citizenship) who have permanent residency in Kazakhstan; legal bodies registered in Kazakhstan as residents; diplomatic and sales representatives of Kazakhstan abroad.

Non-residents are foreign citizens; foreign legal bodies; branches and representatives of foreign legal bodies; international organizations; diplomatic and other official representatives of foreign states in Kazakhstan.

Transactions between residents and non-residents can be carried out in any currency; transactions between residents should be carried out in national currency (in KZT) only.

Kazakhstan’s law does not regulate monetary transactions between non-residents.

Individuals (resident and non-residents) are permitted to take money out of the country without documents confirming the origin of that money for sums of up to 10 000 US dollars. For any sum over the given limit, it is necessary to document the money’s origin. It is also necessary to declare any sum of money exceeding 3 000 US dollars.

Models of currency regulation:

1. Licensing

Organizations engaged in foreign currency exchange must obtain a license.


2. Registration

Residents who participate in certain currency transactions are required to register with the National Bank of RK. Registration is required for the following transactions:

- Commercial loans for a period exceeding 180 days, for the export/import of goods;

- Direct investments in the Republic of Kazakhstan, non-residents and of residents abroad;

- Financial loans for a period of more than 180 days;

- Payments from residents to non-residents; payments from non-residents on behalf of residents, concerning the acquisition of exclusive rights to object of intellectual property; transfers and receipts of money and other property by residents in order to perform the obligations of participants in joint activity.

3. Notice

Residents must notify the National Bank of Republic of Kazakhstan when they carry out certain operations; for example:

- The opening of a bank account in a foreign bank (for legal entity-residents only)

- The acquisition of securities, contributions to capital, and currency transactions related to derivative transactions.

Welcome to Zhambyl region74E-government The term “electronic government” implies a uniform system that will unite all state branches and allow them to render services via Internet, electronic terminals, or even mobile phones to individuals, companies and businessmen.

The basic models within the electronic government are G2C (state-citizen), G2B (state-business), and G2G (state-state).

The program is implemented in the following stages:

1.Formation of the electronic government: publication and distribution of information;

2.Granting of interactive services through direct and return interactions between the state and citizens;

3.Transaction through financial and legal operations, via the government portal;

4.Formation of an information society.

During the third stage, the transaction stage, the system of "Electronic state purchases” was created, which allows businessmen to participate in tenders without leaving their offices. Since January 1st, 2010, all state purchases inquiring into price offers have been carried out electronically through the web portal for state purchases www.goszakup.gov.kz

Taxation issues For tax purposes, foreigners are recognized as residents if they remain in the country for at least 183 days in any consecutive 12-month period terminating in the current tax period.

Individuals are considered non-residents for the period following the last day of their stay in Kazakhstan if they do not become residents within a year following the year during which their last stay in Kazakhstan was terminated.

Rules for defining resident status are specified in double taxation treaties.


Foreign citizens must register with Kazakhstan’s tax departments in the following cases: 1.When opening accounts with banks that are tax residents of Kazakhstan;

2.When receiving income from a Kazakhstani source, not taxable at the payment source in Kazakhstan;

3.When acquiring tax resident status.

Tax registration is usually done at the place of residence indicated on their foreigner’s migration card. Tax registration of Kazakhstani and foreign organizations, representatives, and branches of companies is done automatically, following registration with the Ministry of Justice.

Residents are subject to taxation on incomes received both within the Republic of Kazakhstan and outside its borders. Non-residents are subject to taxation only on incomes from Kazakhstani sources, regardless of the place of payment. Income is considered to be from a Kazakhstani source if it is received for work executed in Kazakhstan. Income from a Kazakhstani source also includes income in the form of interest, both from residents and from non-residents who have constant establishment, as well as dividends from legal entities.

Agreements on the avoidance of double taxation

The conventions on the avoidance of double taxation can be specified different rules for determining the status of the resident.

Taxation of foreigners

Welcome to Zhambyl region76Convention for double taxation avoidance concluded

between the Republic of Kazakhstan and other countries.

Tax reporting and tax audits

Tax reports (including declarations and calculations) are made by the taxpayer, tax agent or their representatives.

Tax reports may be prepared on paper and electronically, in Kazakh, Russian language.

1. Tax auditing is a form of control of taxation.

2. Tax control is the government control exercised by tax service bodies over the execution of the tax laws of the Republic of Kazakhstan and other legislation of the Republic of Kazakhstan.

3. The general procedures for tax checks are carried out according to the Law of the Republic of Kazakhstan "On Private businesses".

1. Austria2. Azerbaijan3. Armenia4. Belarus5. Belgium6. Bulgaria7. Great Britain8. Hungary9. Germany10. Georgia11. India12. Iran13. Spain14. Italy15. Canada16. China

17. Kyrgyzstan18. Latvia19. Lithuania20. Malaysia 21. Moldova22. Mongolia23. The Netherlands

24. Norway25. Pakistan26. Poland27. Russia28. Romania 29. Japan30. Singapore31. Slovakia

32.USA33. Tajikistan34. Turkmenistan35. Turkey36. Uzbekistan37. Ukraine38. France39. Finland40. Czechia 41. Switzerland 42. Sweden43. Estonia44. South Korea


4. Procedures and terms of tax audits are defined by the Tax Code.

The main taxes

Business activities of the foreign investor, as a rule, subject to the following fees and taxes:

1. Corporate income tax (CIT); 2. Personal Income Tax (PIT);

3. Tax withheld at the source of income of non-residents of Kazakhstan;

4. Mineral extraction tax (MET); 5. Value added tax (VAT); 6. Land tax; 7. Property tax; 8. Vehicle tax of legal entities;

Monitoring of large taxpayers

According to the Tax Code the subject to monitoring the largest taxpayers with the greatest total annual income without adjustment. At the same restrictions for the recognition of a large taxpayer of people for which the sum of the carrying amounts of assets below 325,000 times the monthly calculation index at the end of the year, which is subject to approval by the list of large taxpayers to be monitored and number of employees is less than 250 people.

This restriction does not apply to representative the person (the operator) and (or) the subsoil user specified in the production sharing agreement signed between the Government of the Republic of Kazakhstan or the competent authority and the subsoil user to January 1, 2009 and held a mandatory tax evaluation.


Investment project to required of Zhambyl region

The purpose of the project: creation of a special economic zone, with placement of 16 enterprises for processing of local raw materials and production of export-oriented chemical production with high added cost

Capacity:

- 25 units of chemical production, including 8 innovative;

- total production capacity is more than 2 million tons / year

Market: Kazakhstan, CIS and foreign countries

Initiator of the project: «SWF «Samruk-Kazyna» JSC

Total cost of the project: $2 687 million

Participation of the initiator:

public funds - $107 million (construction of infrastructure of SEZ)

Necessary investments:

private investments - $2 580 million (construction of plants in SEZ territory)

Project location: Zhambyl region, Shu area

Raw materials: minerals of the region, natural gas of Zhambyl region, own production, imports

SPECIAL ECONOMIC ZONE "CHEMICAL PARK "TARAZ"


Current status of the project: Presidential Decree was issued on the establishment of SEZ "Chemical Park" Taraz", a plot of land with an area 505 hectares was allocated, feasibility study of SEZ was developed, management company was created with the participation of Jurong (Singapore), negotiations were made with potential participants of SEZ, there is a plan to build external infrastructure of SEZ and the first 4 plants in 2014

Possible measures of the state support:

Exemption from taxes for 25 years, construction of infrastructure, allocation of the land plot, subsidizing of an interest rate for the credits of banks, guaranteeing loans, joint financing


1. First stage development of plants for the production of:

- sodium cyanide

- glyphosate (herbicide)

- phosphorus trichloride

- caustic soda, chlorine and peroxide

2. Second and third stage development of plants for the production of:

- complex fertilizers

- ion-exchange resins

- hydrogen peroxide, acetic acid, peracetic acid and formaldehyde

- lime (constructional and technological)

- polymer sheets, containers

- plant protection products and plant growth regulators

- ftororeagents

- carbamide-formaldehyde concentrate

- melamine-formaldehyde resins

- methanol and ammonia

- nitric acid and ammonium nitrate


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The purpose of the project: Creation of an industrial zone with placement about 20 enterprises for deep processing of agricultural production

Initiator of the project: Akimat of the Zhambyl region

Capacity: processing to 1 million tons of agricultural production/year

Market: Kazakhstan, Russia, Belarus, Central Asia, European Union

Total cost of the project: $488 million

Necessary investments:

private investments - $390 million (construction of processing plants)

Participation of the initiator: $98 million (construction of industrial infrastructure)

Location: Zhambyl region, Taraz

Raw materials: Suppliers of agricultural production are located not further than 250 km in Zhambyl and Southern Kazakhstan areas of Kazakhstan, the Talas area of Kyrgyzstan and the Fergana area of Uzbekistan

INDUSTRIAL ZONE THE AGROPROCESSING LOGISTIC CENTER "TARAZ"


Current status of the project: The land plot under construction of an industrial zone (370 hectares) was allocated, the feasibility study was developed, there is a state. examination

Possible measures of the state support: Infrastructure construction, subsidizing of an interest rate for the credits of banks, guaranteeing loans, joint financing


The purpose of the project: Reconstruction of generating capacities and auxiliary constructions for increase of efficiency of the enterprise

Initiator of the project: JSC "Tarazenergotsentr»

Capacity:

- electrical - 125 MWt

- thermal - 482,5 Gcal/hour

- annual output of electricity - 765 million kWh

- annual output of heat - 623 thousand Gcal

Market: Taraz

Total cost of the project: $193,8 million

- SMR: $37,1 million

- equipment: $124,3 million

- miscellaneous: $32,4 million

Participation of the initiator: operating assets of the enterprises (production base, infrastructure, etc.)

Necessary investments: private investments - $193,8 million

Target of investments:

- SMR: $37,1 million

- equipment: $124,3 million

- miscellaneous: $32,4 million

RECONSTRUCTION AND EXPANSION OF THERMAL POWER STATION TPS-4


Location: Zhambyl region, Taraz city

Raw materials: natural gas

Infrastructure and resources: the project is provided with necessary infrastructure and resources

Equipment/technologies: The first use of steam-gas installation for development of electro and heat power is provided by the project in Kazakhstan

Basic indicators of project efficiency:

- selling tariff for electricity: 8.8 tenge/ kWh (excluding VAT)

- selling tariff for heat: 3400 tenge /Gcal (excluding VAT)

- the cost of delivered products: $47.8 million, including

- electricity: $36.4 million

- heat: $11.4 million

- payback period: 11.5 years

- IRR: 15%

- NPV: $68 million

Basic calculation requires adjustments as financing conditions change

Current status of the project: The feasibility study of the project was developed, the TPS-4 is the basic source of heat in Taraz

Possible measures of the state support: Sale warranty of heat, joint financing through “NC" SEBC“Taraz” JSC, a payment for management etc..


The purpose of the project: Transport-logistic center on the basis of the international airport "Aulie-Ata" Taraz.

Initiator of the project: JSC "Airline" Scat "

Project capacity:

- passengers: 200 - 250 people / hour;

- cargo: 10 tons / year.


Participation of initiator:

Own funds - $ 1.3 million, operating assets of the company (airport, infrastructure, etc.)

Necessary investment: $9.7 million (debt)

Purpose of investment:

- cargo terminal: equipment - $2.7 million, construction -$5.3 million.

airport complex: equipment - $2.3 million, construction - $1 million

Location: Taraz, Airport "Aulie-Ata"

Domestic passenger transport: Astana, Almaty, Aktau, Atyrau, Aktobe, Kyzylorda, Ust-Kamenogorsk, Pavlodar, Karaganda

International passenger traffic: Moscow, Kiev, Istanbul, Urumqi, Dubai, Mashhad

TRANSPORT AND LOGISTICS CENTER BASED ON THE INTERNATIONAL AIRPORT

"AULIE-ATA"


Cargo and passenger transit: Tajikistan / India - Russia, Southeast Asia - Europe, Middle East – Siberia

Major airlines: Airline «SCAT», «Transaero» «Tajik Air», «Aerosvit», «Demac Solutions Corp», «Mutriba" and cargo airlines

Project performance indicators:

- NPV: $21,8 million

- IRR: 59%

- Payback period: 2.5 years

Current status of the project:

Feasibility study of the project at the development stage, a new runway was built in 2013, construction of a new passenger terminal will be started in 2014

Possible measures of the state support: Infrastructure construction, interest rate subsidies on bank loans, loan guarantees, cofinancing


The purpose of the project: Creation of roadside service of category B and C along the highway of Zhambyl area «Western Europe - Western China»

Sales markets: Transport stream – up to 10 000 cars/days, length of Zhambyl site is 495 km

Total cost of the project: approximately $2 million

Required investment: private investments up to $2 million

Project location: to the direction of «Almaty – Shymkent» on the territory of Zhambyl region, with extent of 495 km:

- Korday region - 2 objects (category B and C);

- T.Ryskulov region - 1 object (category В);

- Zhualy region - 1 object (category C).

The main objects of complexes:

Category B - hotel, catering, auto gas station, parking, service station, a tourist center, a medical center

Category C - catering, gas station, parking, service station, a tourist center, a medical center

ROADSIDE SERVICE COMPLEXES


Current status of the project: construction of at least 8 complexes is planned, investors are found on 4 complexes, the rest needs investors

Possible measures of state support: Sale / lease of land - 3 hectares, interest rate subsidies on bank loans, loan guarantees, co-financing of projects


Purpose of the project: Expansion of production, the creation of fabric production.

Initiator of the project: «Fabrica POSH-Taraz» Ltd founder - individual, “NC" SEBC“Taraz” JSC

Sales market: Kazakhstan, CIS and Europe

Capacity: 300 thousand pairs of shoes / year


Necessary investment: $2 million (equity, debt)

Participation of the initiator: operating assets of the company (manufacturing base, infrastructure and etc.), co-financing

Raw material: TOPS and own production of yarns

Location: Taraz

Current status of the project: operating companies, project is in the development stage

Possible measures of state support: Subsidizing interest rates on bank loans, loan guarantees

FABRIC PRODUCTION


The purpose of the project: Construction of a plant for processing of solid waste and production of by-products

Initiator of the project: Akimat of Taraz

Raw materials: Polygon with an accumulated volume of up to 2 million tons of MSW, annual accumulation consists up to 50 tons of MSW.

Project capacity: MSW processing at least 50 000 tons/year

Market: Taraz.

Total cost of the project: Approximately $40 million (depending on the technology)

Required investments:

Project financing, private investments – $40 million (depending on the technology)

Participation of the initiator: government grants

Location: Taraz

Technology: technology without use of MSW incineration

Current status of the project: searching for investors, plot of land is defining

Possible measures of state support: construction of infrastructure, the allocation of land, interest rate subsides on bank loans and collection of solid waste, loan guarantees, co-financing

PROCESSING OF SOLID WASTE


The purpose of the project: Increasing existing capacity of wind power plants (WPP) in Zhambyl from 1.5 MW to 21 MW

Initiator of the project: LLP «Isen-su»

Capacity:

- capacity: 21 MW

- generation of electricity: 48 million KWh

Market: regions of Kazakhstan

Total cost of the project: $31,2 million, including

- development of design estimate: $1,2 million

- construction and assembly work: $4,5 million

- equipment: $23 million

- miscellaneous expenses: $2,5 million

Required investment: $31,2 million (loan)

Participation of the initiator: operating assets of the company, co-financing

The place of supply: Kordai area

Creation of new jobs: 10 jobs

Current status: feasibility study of the project was conducted, land plot of 27 hectares is allocated, wind power plant of 1.5 MW is operating

Possible measures of state support: interest rate subsidies on bank loan guarantees, loan guarantees, long-tern tariff for 15 years, sale guarantees

INCREASING WIND POWER PLANT CAPACITY


The purpose of the project: Increasing existing capacity of solar power station in Zhambyl region from 0.5 MW to 7.0 MW

Initiator of the project: LLP "KazEkoVatt"

Capacity:

- capacity: 7.0 MW

- power generation: 10 million kWh/hour

Sales markets: regions of Kazakhstan


Required investments: $13 million (loan funds, equity)


current assets of the company, co-financing

Location: Kordai area, Otar

Current status: Feasibility study of the project is developed, land plot of 14.25 hectares is allocated, operating solar power plant of 0.5 MW

Possible measures of state support: interest rate subsidies on bank loan guarantees, loan guarantees, long-tern tariff for 15 years, sale guarantees

INCREASING CAPACITY OF SOLAR POWER STATION


The purpose of the project: Creation of export-oriented production of titanium dioxide and silicon dioxide

Initiator of the project: "Tenir-Logistic“ LTD

Project capacity:

- 10 000 tons/year of titanium dioxide

- 10,000 tons/year of silicon dioxide

Market: Kazakhstan (10-15%), Russia, China and others (85-90 %)

Total project cost: $28.8 million

Required investment (loans, equity): $25 million

- construction and assembly work: $8 million

- equipment: $17 million

Participation of the initiator: $3.8 million

Raw materials: deposit of titanium-magnetite ores in Tymlay

Location: Kordai area

Indicators of efficiency of the project:

- NPV: $20 million

- IRR: 38%.

- payback period: 4 years

PRODUCTION OF TITANIUM DIOXIDE AND SILICON DIOXIDE


Justification:

- lack of production of pigmentary dioxide of the titan in the countries of the Customs union;

- existence of considerable raw material resources in the region;

- use of new environmentally friendly, highly profitable and almost waste-free technology;

- existence of a perspective and extensive sales market.

Quantity of new workplaces: not less than 500 workplaces

Current status of the project: Search and assessment of a source of raw materials, the initial products of dioxide of the titan of the pigmentary quality are received, indicators of GOST exceeding on characteristics and dioxide of silicon of chemical purity with a grain size less than a micron, technological swimming trunks - gland of high purity (99.9%) and titanous slags.

Possible measures of the state support: Infrastructure construction, subsidizing of an interest rate for the credits of banks, loan guarantees, co-financing


The purpose of the project: Production of soda ash

Initiator: Akimat of Zhambyl region

Capacity: 400 thousand tons / year

Market: Kazakhstan, CIS

Total project cost: $274 million, including:

construction and assembly work: $129 million;

equipment: $145 million

Required investment: $274 million (private investments)

Location: Talas region

Raw materials and infrastructure:

- rock salt: Sorkol deposit (reserves – 1.93 billion tons, content NaCl - 66%);

- limestone: Aksai deposit (reserves – 12.7 million tons), Aktau and Aktau-1;

- gas: from operational gaseous area of Talas;

- electricity: from LLP «Zhambyl electrical networks»

- water: drinking from May-Tobe, Tamdin, and Koktal fields, manufacturing from Biliykol field, underground from Akzhar field

- other raw materials: ammonia, sodium sulfogidrat, mazut - imported

Commodity output: $89.2 million

Number of new jobs: 950 people

PRODUCTION OF SODA ASH


Economic indicators:

- Net income: $29 million

- Discount rate: 7,5%

- Net profit: $92,5 million

- Payback period: 10 years

- Internal Rate of Return: 11,78%

- Profitability index: 1,39

Possible measures of state support: Construction of infrastructure, subsidizing the interest rate on bank loans, loan guarantees, co-financing of the project


The purpose of the project: Construction of a plant for recycling of PET

Initiator of the project: «Kaskadstroy TIA» LTD

Raw materials: secondary materials, the PET-bottles which were in use, waste

Capacity: 6 000 tons of PET-granules/year

Sales market: Kazakhstan

Total project cost: 10 million Euro, including

- construction and assembly work: 1,4 million Euro

- equipment: 8 million Euro

- working capital: 0,6 million Euro

Necessary investments: 10 million Euro (borrowed funds)

Participation of the initiator: intangible assets

Location: Taraz

Justification:

- absence of local producers;

- needs of the market for PET-granules are satisfied due to import from China, France and South Korea;

- the volume of import makes up to 77 thousand tons PAT granules/year (about 92 million Euro).

PLANT FOR RECYCLING OF PET


Indicators of efficiency of the project:

- IRR: 116%


Equipment/technology:

Equipment of the companies: Buhler, Bruer, Herbold

Current status of the project: The land plot with infrastructure, the business plan is developed

Possible measures of the state support:

Funding of an interest rate for the credits of banks, loan guarantees, co-financing


The purpose of the project: Expansion of production, organization of rolled metals for production of structural metal products

Initiator: JSC “Zapchast"

Products:

- steel reinforcement;

- channel;

- corners

Capacity: 300 tons / year

Sales market: Kazakhstan, neighboring countries


Required investment: $34 million (loan)

Participation of the initiator: operating industrial base, infrastructure, personnel, etc.

Raw materials: billets (blooms) of own production

Sales market: Taraz

Current status of the project: project is at the design stage, there is an operating manufacture to produce metal blanks for metal

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies of production expenses

ROLLED METAL


The purpose of the project: Expansion and modernization of foundry manufacture

Initiator of the project: JSC “Zapchast"

Products:

- brake discs and drums, body parts of hydro system and transmissions, clutch pressure plate (for the automotive industry);

- locomotive and pasture brake pads, suspension, anchor, mono regulator (for railway industry);

storm grate, housing cable mounting on bridges and tall buildings (for construction industry)

Capacity: 24 tons / year

Sales market: Kazakhstan, neighboring countries

Total cost of the project: 4.1 million Euro

Required investment: 3,3 million Euro (loan)

Participation of the initiator: 0,8 million Euro

Project location: Taraz

Current status: project is at the design stage, there is an operating manufacture to produce metal blanks for metal


FOUNDRY MANUFACTURE


The purpose of the project: Expansion of pig – breeding complex to 60 000 heads

Initiator: LLP «Lugovskoy konny zavod»

The volume of production in natural terms: pork meat - 4000 tons/year

The volume of production in monetary terms: $ 15.1 million / year

Total cost of the project: $ 5.4 million

Required investment: $ 4 million (loan)


- own funds: $ 1.4 million

- operating hog – breeding complex of 30 000 heads

- infrastructure (road and electricity supply is available)


Period of realization: 2014 - 2015 years

Creation of new jobs: 80 new jobs

Project location: Zhambyl region, T. Ryskulov area, Kogershin

Raw materials: young pigs received in its own reproducer

Current status: project is at the design stage


EXPANSION OF HOG - BREEDING COMPLEX


The purpose of the project: Cultivation of vegetables by using Pivots


The volume of production in monetary terms: $7.2 million/year

Total cost of the project: $3.8 million

Required investment: $1.7 million (loan)


- own funds: $ 2.1 million

- infrastructure (road and electricity supply is available)

Market: regions of Kazakhstan, export

Period of realization: 2014 - 2015 years

Creation of new jobs: 10 new jobs in the period of operation

Project location: Zhambyl region, T. Ryskulov, Kogershin

Raw materials: seed of grain, fodder, and oil cultivation

Current status: Obtaining permission documents

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses

CULTIVATION OF VEGETABLES BY USING PIVOTS


The purpose of the project: Construction of a plant for production of gypsum binder and dry building mixtures in accordance with European standards

Initiator: JSC "Zhambylgips"

Project location: Zhambyl region, Zhambyl area

Capacity:

- gypsum binder: 170 000 tons/year

- dry mixes: 100 000 tons/year

- microcalcite: 7 tons/hour

- expanded perlite: 15 cub. meters/hour


Participation of the initiator: $4 million

Required investment: $5 million (loan)

Market: Kazakhstan, exports to Central Asia and Russia

Raw materials: Ulken Burultau and Kyzylbastau field (subsoil use contract №41 of 25.06.2003)

Suppliers of equipment: Erisim Makina Machinery Industry Co.

Infrastructure and Resources: road, transformer station, gas distributor station

PRODUCTION OF BUILDING MATERIALS MADE OF GYPSUM


Creation of new jobs: 56 jobs

Current status of the project: state examination is conducted for the first phase of design work, second phase is at the stage

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses, infrastructure construction


The purpose of the project: Expansion of milk processing plant capacity

Initiator: «Burnensky Syrzavod» LLP

Location: Zhambyl region, Baurzhan Momyshuly area

Capacity:

- rennet cheese: 300 tons/year

- butter: 100 tons/year

- natural ultrapasteurized milk: 12 million liters/year

The volume of production in monetary terms:

- rennet cheese: $1,8 million/year

- butter: $600 thousand/year

- natural ultrapasteurized milk: $ 1 million/year


Participation of the initiator: $0.8 million, operating manufacture, infrastructure

Required investment: $1.1 million (equity, loan)


Number of new jobs: 80 jobs

Current status: there is a business plan, searching for investors, operating manufacturing base

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies on production expenses

EXPANSION OF MILK PROCESSING CAPACITY


The purpose of the project: Raising of sturgeon in the recurculation system



Capacity:

- sturgeon: 60 tons/year

- caviar: 2 tons/year


- sturgeon: $1.2 million

- caviar: $1.6 million



Required investment: $2.9 million (equity, borrowings)

Creation of new jobs: 60 new jobs in the period of construction, 12 new jobs in the period of operation

Current status of the project: basic equipment installation is conducted, commissioning

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies for production costs

RAISING OF STURGEON


The purpose of the project: Raising of sturgeon in the recurculation system



Capacity:

- sturgeon: 60 tons/year

- caviar: 2 tons/year


- sturgeon: $1.2 million

- caviar: $1.6 million



Required investment: $2.9 million (equity, borrowings)

Creation of new jobs: 60 new jobs in the period of construction, 12 new jobs in the period of operation

Number of new jobs:

- period of construction: 20 new jobs

- period of operation: 13 new jobs

Current status of the project: Design stage and development of documents

Possible measures of state support: Subsiding interest rates on bank loans, loan guarantees, subsidies for production costs

CONSTRUCTION OF PLANT FOR PRODUCTION OF MIXED FEED


The purpose of the project: Upgrading the existing gas processing plant with new equipment and technology to meet product standards of EURO 4

Initiator: LLP "Amangeldy GPZ"

The volume of production in natural terms: 180 000 tons/year, including

Light distillate: 27 000 tons / year (15%)

Kerosene fraction: 36 000 tons / year (20%)

Diesel: 45 000 thousand tons / year (25%)

Mazut: 72 000 tons / year (40%)


Necessary investment: $54 million (loan)

Number of new jobs: 150 new jobs

Economic indicators:


- period of realization: 3 - 5 years

- efficiency: PI > 1

Location: Zhambyl region, Zhambyl area, Asa

Raw material: crude oil from Kyzylorda and Aktobe regions


Current status of the project: stage of project development, all the permitted documents are available


MODERNIZATION OF GAS PROCESSING PLANT


Purpose od the project: Construction of a plant for drying fruits and vegetables

Strategic partner: «Dry Food» company (Russia)


Necessary investment: $1,4 million

Participation of the strategic partner: $0,1 million

Products: organic food concentrates (dry ingredients)

Market: regions of Kazakhstan, Russia

Number of new jobs: 31 new jobs

Location: Zhambyl region

Raw materials: vegetables, fruits and other crops, residues of products in storage, distribution centers and processing plants

Advantages of the project:

- guaranteed equipment («Dry Food» company)

- life of the product is up to 3 years

- final cost is 3-4 times higher than raw material cost

- up to 90% of the vitamin savings

- low production cost

An expediency substantiation of the project:

- the amount of fruits and vegetables in the region: 602 500 tons, while the needs of the region: is 205 800 tons

- excess: 396 700 tons

- no competition in the region

CONSTRUCTION OF A PLANT FOR DRYING FRUITS AND VEGETABLES


Efficiency (at 75% loading):

- The profitability index: 3,47

- Internal Rate of Return : 52%

- Modified Internal Rate of Return: 28%

- Payback period: 2 years

- Discounted payback period: 2,3 years



The purpose of the project: Creation of the recreation area of international importance on the coast of Lake Balkhash.

Objects of the recreation area: Entertaining and cultural tourist objects, children's game zones, parking, hotel, cafe

Total cost of the project: determined by the investor

Target direction of investments: Construction of business, cultural, entertaining and sanitary objects, children's game zone, parking, hotels, cafe.

Location: Along the coast of Lake Balkhash

Possible measures of state support: feasibility study for the construction of engineering infrastructure at the expense of the state budget, issuance of land for construction of facilities for investors, interest rate subsidies, loan guarantees

THE RECREATION AREA ON THE COAST OF LAKE BALKHASH


The purpose of the project: Recreating medieval Caravanserai “Tortkol”, creating a tourist center


Required investment: $0.8 million (private investments)

Target direction of investment: Construction of cafes, shops and oriental market of medieval style.

Project location: Taraz

Current status: infrastructure was conducted

CARAVANSERAI “TORTKOL”


Project name: Construction and operation of policlinic № 1 in Taraz city

Purpose of the project: provision of affordable and qualitative healthcare services for population

Initiator of the project: SI “Healthcare department of Zhambyl region”

Capacity: 500 visits per shift, including:

- adult office for 350 visits per shift, including women's consultation on 60 visits per shift;

- children's office for 150 visits per shift.

Total cost of the project: 700 million tenge

Location: Taraz city, Lenina str, 18 А

Current condition:

- land, with an area of 1,26 ha

- concessionary offer was sent to The Ministry of Public Health for agreement

Needs: a feasibility study of the project, design specifications and estimates

GPP model: SBI "Construction - Property - Management"

Object parameters:

- Area of policlinic - not less than 12 000 m2

- Policlinic floors - 5 floors with basement

Construction period: 1 year

Concession period: up to 30 years

CONSTRUCTION OF POLICLINIC № 1 IN TARAZ CITY


Availability of infrastructure:

- lines of electricity supply, water supply, gas supply, heat supply, communications, sewage.

- access road path from Abai Ave and Lenina str.

- easement from Pushkina str.

Government support arrangements:

- consumption warranty

- compensation for operational expenses

- availability fee









Location: Taraz city, Sabalakova street

Current condition:

- concessionary offer was performed

Needs: a feasibility study of the project, design specifications and estimates

GPP model: WTO, WCO, SBI


Object parameters:

Area of the land: 1,2 ha

Policlinic floors : 5 floors with basement




- land grants


Sources of compensation and income:

- guaranteed volume of free medical care

- income from paid medical services

- income from paid non-medical services

- compensation for investment expenses


- remuneration for management









Location: Taraz city

Current condition:

- concessionary offer was performed

Needs: feasibility study of the project, design specifications and estimates



Object parameters:

Area of the land: 1,2 ha

Area of policlinic: not less than 12 000 m2

Policlinic floors: 5 floors with basement




- land grants










Project name: Construction and operation of a multidisciplinary hospital in Taraz and settlements of Zhambyl region

Purpose of the project: provision of affordable and qualitative health care services


Capacity: 300 beds

Total cost of the project: 7 300 million tenge

Needs: development of concessionary offer, feasibility study, design specifications and estimates



Concession period: up to 30 yeras

Object parameters:

Plot area: not less than 6 ha

Floors of multidisciplinary hospital: 3 floors

Preliminary performance indicators:

- NPV: 6 900 million tenge

- IRR: 17,4%

CONSTRUCTION OF MULTIDISCIPLINARY HOSPITAL



- land grants










Project name: Construction and operation of kindergartens in Taraz and settlements of Zhambyl region

The purpose of the project: provision with preschool services

Project initiator: SI “Healthcare department of Zhambyl region”

Capacity: 320 places

Total cost of the project: 6 billion tenge

Needs: development of concessionary offer, feasibility study, design specifications and estimates. The estimated cost of the feasibility study - 14,5 million tenge

GPP model: WTO "Construction - Transfer - Operation”

Object parameters:

- Land area – 1.25 ha

- Kindergarten floors - 3 floors


Concession period: up to 30 years

Preliminary performance indicators:

- NPV: 1 120 million tenge

- IRR: 18,9%

CONSTRUCTION OF KINDERGARTENS



- land grants



- preschool services

- additional paid services (study groups)


- income from state order


Project name: Construction of bus parking lots along International Road Corridor "Western Europe - Western China»

Initiator of the project: Akimat of Zhambyl region

Capacity: traffic flow reaches up to 15 000 vehicles /day

Total cost of the project: defined by investors

Needs: development of concessionary offer, feasibility study, design specifications and estimates



Object parameters:

Land area: up to 1 ha


- land grants



- usage fee


- compensation for operation expenses

CONSTRUCTION OF BUS PARKING LOTS ALONG INTERNATIONAL AUTO CORRIDOR


For notes

AFTER ACCEPTANCE OF THE FINAL DECISION ON VISITING ZHAMBYL REGION PLEASE CONTACT “INVESTORS SERVICE CENTER” OF ZHAMBYL REGIONThe Republic of Kazakhstan, Zhambyl region, Taraz, Tole bi 35Tel./fax: 8 (72 62) 43 89 02E-mail: [email protected]: www.dppzhambyl.gov.kz, www.taraz-invest.kz