ASTANA

WEST KAZAKHSTAN REGION

Singapore – 2015

URALSK

2

Overview of West Kazakhstan region

10,4 billion US$GRP in 2014

16 K $ GRP per capita

Territory 151,339 km²

Population 630 000

Entities of business45,8 K. enterprises

External Trade Turnover (2014)Export – 9,5 bln US$ Import – 0,5 bln US$

Manufacturing complex

Machine Building

Mining sector

Agro-industrial complex

413Public Secondary Schools 87 400 school pupils

39Vocational Education Institutions

25 900Students

100Specializations

180

Healthcare Organizations

1900

Doctors

4300 State-funded patient capacity

400Pharmaceuticalorganizations

Education and healthcare

3

Over the past 10 years the regional GRP has increased 5-fold - from 1.9 billion $ to 10 billion $

For the last two years it has been involved direct foreign investments to the amount of more than 1.3 billion USD.

Investment volume, mln. $

4

Investments and foreign economic activities

2010 2011 2012 2013 20140.0

200.0

400.0

600.0

800.0

Chart Title

443,3 380,0 376,0

565,3757,5

$ 78,0 mln.

$ 686,5mln.

The Customs Union

$ 9,5billion.

$ 490,2 mln.

Export Import

Total for 2012

Export Import

5

РАЗВИТИЕ ПРЕДПРИНИМАТЕЛЬСТВА The development of business and industry in the region

9,979,02

2014 y. 2013 y.

Industry, billion $

89,1

8,6 1,90,4 mining industry

manufacturing industry

electric power supply, steam and gas

water supply and sewerage

The structure of the industrial complex

The volume of manufactured products and services for small and medium-sized businesses 2.1 billion $

750780

2014 y. 2013 y.

Manufacturing industry, mln. $

Resources

Produced in 2014 – 22,7 billion cub. m. of hydrocarbons and gas

Produced goods in 2014 – 6,8 billion US$

Production content in GRP of West Kazakhstan – 65,4%

Production content in the volume of West Kazakhstan industry – 68%

Karachaganak oil and gas condensate field

1,35 trillio

ncub.m

.

Dry gas1,2 billio

ntons

Oil,condensate

6

Construction Materials

Flask Gypsum

Ground chalk

Sand and gravel

Clay

Potash salt Asbestos

Borate ore

Mineralsmore than 45 types

Chinarevskoe oil and gas condensate field

Resources

«Zhaikmunai» LLP transformed into «Nostrum Oil & Gas PLC»

Produced in 2014 – 7,6 million cub. m. of hydrocarbons and gas

Produced goods in 2014 – 782 million US$

Production content in GRP of West Kazakhstan– 7,5%

Production content in the volume of West Kazakhstan industry – 7,9%

40 billioncub.m

.

Dry gas55 mln.tons

Oil,condensate

230,4 mln. $Agricultural sector and foodindustries

7

Manufacturing industry

8,2 mln. $ woodworking

54,0 mln. $metallurgy

107,5 mln. $machine-building

266,3 mln. $petroleum refining

7,2%The content of manufacturing industry in GRP

Labour efficiency in the manufacturing industry33 000 $/pers. 3%

51,1 mln. $Building industry

The structure of the manufacturing industry

75 Ktons of meat

220 Ktons of milk

130 million eggs

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Agro-industrial sector

550 K ha of cultivated lands

230 Ktons of grain

2 K tons of wool

1280 K ha pastures

4%The CONTENT of agriculture in

GRP

Main areas- cattle breeding- plant cultivation - fishery- agricultural processing

Reckoned by head- cattle – 457,4 K- horses – 115,0 K- small cattle – 986,0 K- camels – 3,0 K- pigs – 27,8 K- poultry – 1 038,0 K

4 complexhouse building factories

240 K. tonsproduction of building materials per year

50 000 sq. m. construction of residential areas in year

9

Building industry

20 types of Wide-spread minerals

119 depositsexplored

37depositsAre produced

2 mln. cub. m.volume of production per year

The share of the construction industry in the GRP

Main directions - production of concrete products

- manufacture of artificial gravel

- production of large-panel concrete structures

- construction of houses according to modern technologies

- production of construction materials

Perspectives of development- development of deposits of cement raw materials- development of deposits of the flask- development of deposits of gypsum- development of deposits of expanded clay and silicate

materials- development of deposits of sand and CBC

0,5%

The CONTENT of the con-struction industry in the GRP

5 K. tonsannual production capacity of cast iron valves and close fitting valve for the oil and gas sector

3 K. unitsannual production capacity of equipment for the transport and heating oil, gas compressor and gas turbine stations

10

Machine Building

5 plantsmachine building, repair and shipbuilding

2 sea shipsannual production capacity ships with a displacement of 500 tons.

500 special vehicleannual production capacity of fire, special and agricultural machinery

10 K. unitsannual production capacity of oil transformers with capacity of up to 2.5 MW/A

1%

The CONTENT of the Machine Building in the GRP

Perspectives of development- production of turbine and oil transfer equipment- production of agricultural machines and components- production of industrial electrical equipment- production of special equipment for city services- manufacture of ships with displacement up to 1000 tons

Branch- jobs – 3,5 k. people- the volume of production – 107,5 million US$- growth rate – 7,5%- Content of Kazakhstan raw materials – 85%

Developing traditional

priority sector of the regional

economy Ramping up production in

manufacturing industry

Developing international

and interregional cooperation

Improving ecological situation of the region through rational nature

management practises

Creating favorable

conditions for development

and increasing competitivene

ss

Meeting the region’s

demands in agricultural

products Machine Building Transport and

Logistics Tourism Construction Agriculture

Key directions

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West Kazakhstan region was determined by the status of national

oil and gas engineering cluster.Considering regional peculiarities and specialization of the region, the main

priority areas were determined:

Decree of the President of the Republic of Kazakhstan dated August 1, 2014 No.874«On approval of the State program of industrial and innovation development of

Kazakhstan for 2015-2019»

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Why is it advantageous to invest to West Kazakhstan region?

Programs of state support of business1

Investment preferences2

Advantageous geographic location3

Low rates4

Service support for the investors5

Organization of industry ready sites with the necessary infrastructure in the industrial zone7

Implementation of joint projects with JSC «NC «SEC «Oral» projects on the basis of public-private partnerships6

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Information about the preferences and benefits for investors

General information about investments is on the website of the Ministry of Investment and Development of the Republic of Kazakhstan – mid.gov.kz

1

The information about investment opportunities and preferences is on the website of JSC «KAZNEX INVEST» – www.kaznexinvest.kz

2

Information about legal protection and the law is on the website of IRS «Adilet» – adilet.zan.kz3

Support and maintenance of investors on the websiteJSC «NC «SEC «Oral» – www.spk-oral.kz4

14

The advantageous location and potential of the regionThe advantageous location of the region in the area of free logistics of turnover (up to 500 km)

Atyrau

Samara

SaratovAstana

Uralsk

Ufa

VolgogradWest Kazakhstan region

R U S S I A

Aktobe

Moscow

Orenburg

Astrakhan

K A Z A K H S T A N

Minsk

Kiev

Code decoding: Kazakhstan's largest cities with a developed industry and logistics Large cities of the Russian Federation with the developed logistics industry

Free territory of logistics

Roads of Western Europe - Western China and other areas of the transport corridor between Europe and Asia

The population within a radius of logistics - 15 mln

Kazan

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Low tariffs

Power supply:• rate for supply: 0.08 USD for 1 kW for 2015 including VAT (12%)• rate for transportation: 0.01. USD for 1 kW for 2015 including VAT (12%)Total costs: 0.09 USD for 1 kW of consumed electricity, including VAT

Water supply:• the quota for the water intake from the open water sources up till 2 million cubic

meters. • rate for supply of running water 1.25 USD for 1 cubic meter in 2015, including

VAT (12%)

Gas supply:• rate for supply and transportation 0.08 USD for 1 cubic meter in 2015, including

VAT (12%)

Sewerage:• rate for the discharge 1,15 USD for 1 cubic meter in 2015, including VAT (12%)

Emission:• rate for environmental emission 3,70 USD for 1 ton of СО2 emission in 2015

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Suggestions to invest to West Kazakhstan

Chemical industryfinancing the construction of a chemical plant in West Kazakhstan region

Location: The Republic of Kazakhstan, Aktau

Initiator of the project : «Topan» LLP was founded in 1999 and operates in Uralsk, West Kazakhstan The current number of employees – 208

The main activity – production of chemicals, liquefied gases, oxygen and inert gasesProject cost ≈ 76 mln. $

Project implementation period – from 2016 till 2018

The mechanism of implementation – financing the construction, purchase of equipment and raw materials jointly with the company «Chemical industries» (Singapore)

The purpose of the project –creation of export-oriented production and providing oil and gas industry with chemicals reagentsPayback period of the project – 7 yearsProduction capacity: Phase 1 – volume of financing 65 million $:- sodium hydroxide in the solid form - 40 000 tons / year- hydrochloric acid – 30 000 tons / year- sodium hypochlorite – 6400 tons / yearPhase 2 – volume of financing of 11 million $:- caustic soda in solid form – 80 thousand tons / year- hydrochloric acid – 30 000 t / year- chlorine – 34,000 tons / year - sodium hypochlorite – 6 400 t / year

Implementation period: 30 months

The required land area of 4 hectares

Planned revenue – 27 million. $

Profitability – 20%

New jobs – 200 people

Partners of the project

17

Suggestions to invest to West Kazakhstan

The gas turbine power plantFunding for the second phase of construction of gas turbine power plant of 350 MW in an area Beles v., WKR

Location: Republic of Kazakhstan, West Kazakhstan region, Zelenovskiy district, Beles village

Initiator of the project – «Batys Power» LLP founded in 2011

The current number of employees – 75

The main activity – construction, operation and management of gas turbine power plant, supply and export of electric power

Project cost ≈ 400 mln. $

Project implementation period – from 2014 till 2018

Implementation Mechanism – financing the 2nd phase of construction of 200 gas turbine power plant, purchase and installation of the second turbine of 100 MW capacity, waste heat recovery boilers and steam turbine of 150 MW capacity.

The purpose of the project –creation of the production of electric power of reduced price and supply of electric power the region's population, increasing gas turbine power plant capacity up till 350 MW Payback period of the project – 8 years

Production capacity: Phase 1 – invested 92 million $:- construction of gas turbine power plant site area of 4 hectares of land;-  installation of the first gas turbine plant with capacity of 100 MW;-  commissioning and electric power production for West Kazakhstan;-  site preparation for the second phase of the project - Phase 2 – required financing 308 million $:- purchase and transportation of gas turbine and steam unit recovery boilers and gas turbine power plant components;-  equipment installation and commissioning;-  connection to the substation of JSC «KEGOK», international, internal republic and

intra-regional power systems to transport electric power to West Kazakhstan, Atyrau region and to Russian Federation;

- - Production and supply of electric power of 100 MW capacity to West Kazakhstan, 100 MW to Atyrau region, and 150 MW for export to Russian Federation

Planned income - 260 million $

Profitability - 22%

New workplaces - 100

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Suggestions to invest to West Kazakhstan

Industrial zonefinancing construction of infrastructure of the industrial zone in West Kazakhstan, area 300 hectares

Project cost ≈ 42 mln. $

Project implementation period– from 2017 till 2018

The implementation mechanism – public-private partnership , –project implementation jointly with JSC "NC" SEC

"Oral" – financing construction and assembly works for

external and internal infrastructure the territory of the industrial zone

of area 300 hectares,

– joint using the industrial zone, – state support in the form of tax preferences

Purpose: To involve domestic and foreign investors to promote accelerated development of private entrepreneurship in the industry, the development of production of competitive, import-substituting products

Payback period of the project – 8 years

The requirements for the project: - the location of the industrial zone in the area of Terektinskiy district,

Poyma village, West Kazakhstan - land area of the industrial zone not less than 300 hectare- To stipulate increasing of area of the industrial zone up till 900 hectare- construction of inside engineering networks in mine-channel tunnel- the division of the territory of the industrial zone into15 sectors by 10-20

hectare by types of placed industry Workplaces – 5000

WKO, Terektinsky district, Poyma v. area 300 hа

Participants of the projectInitiator of the project:

Akimat (Government) ofWest Kazakhstan region, Republic of Kazakhstan

The operator of the industrial zone

JSC « NC «SEC "Oral»

Partner Project Creation and ManagementThe company «Akgun Group» Turkey

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Suggestions to invest to West Kazakhstan

Airport of Uralsk cityReconstruction of terminal of the airport to modern international terminal

Project cost ≈ 7 mln. $

Project implementation period – from April 2016 till October 2017

Implementation mechanism – public-private partnership – redemption of the reconstructed object by the state,

– state support and preferences

Payback period of the project – 2 years

The requirements for the project: - terminal building for 1 200 people- hotel for 50 rooms- restaurant for 200 seats- parking for 200 vehicles - 5 seats passenger terminal of throughput 400 people per hour - cargo terminal of throughput 300 tons per day

Workplaces – 60

Railwayconstruction of railway of new direction of 520 km length between the cities Uralsk-Atyrau

Project cost ≈ 200 mln. $

Project implementation period – from 2016 till 2019

Implementation mechanism – public-private partnership , – a joint project with JSC «NC «KTZh»,

– providing with land for construction of road, – joint road usage

Payback period of the project – 5 years

The requirements for the project: - construction of 2 parallel railway beds- the base of the road – concrete sleepers- route construction – without the need to build railway bridges across the river- construction of 2 stations in Chapaevo v. of WKR and in Inder v. of Atyrau region- the construction of the stationary and sidings ways- connection to the existing international road of railway lines

Workplaces – 400 people

Uralsk

Atyrau

20

Suggestions to invest to West Kazakhstan

ТLCconstruction of transport and logistics center in the industrial zone of West Kazakhstan

Project cost ≈ 6 mln. $

Project implementation period – from 2017 till 2018

Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for

the construction up till 20 ha in the industrial zone of West Kazakhstan

Payback period of the project – 5 years

The requirements for the project: - using construction materials of the Kazakhstan production at least for 50%- connection to highways and railways-  provision of transport logistics to the products produced in industrial zone of West

Kazakhstan -  TLC warehouse area of 10 000 square meters and a storage capacity of 50 000 tons-  TLC throughput capacity of 1200 tons per hour

Workplaces – 200 peopleConsumer electronicsconstruction of electric appliances factory in the industrial zone

Project cost ≈ 50 mln. $

Project implementation period – from 2017 till 2019

Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land with a prepared infrastructure for

the construction of up to 10 ha in the industrial zone of West Kazakhstan

Payback period of the project – 5 years

The requirements for the project: - organization of world brands consumer electronic

appliances production- organization of export supplies of manufactured products- employment 80% of the workplaces by Kazakhstan

employees

Workplaces – 1 500

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Suggestions to invest to West Kazakhstan

Hotelthe construction of a hotel in the Uralsk city, West Kazakhstan

Project cost ≈ 7 mln. $

Project implementation period – from 2016 till 2017

Implementation mechanism – a joint project with JSC «NC «SEC «Oral», – provision of land with prepared infrastructure for

construction in Uralsk city, – state support and investment preferences

Payback period of the project – 6 years

The requirements for the project: - using construction materials of the Kazakhstan production at least for 50%- 5 star comfort class - quantity of rooms 200- availability of restaurant, business center of "A" class, parking, swimming pool,

fitness hall, sauna and playgrounds

Workplaces – 30

Solar power plantconstruction of a solar power plant of 150 MW in the area of the industrial zone of West Kazakhstan

Project cost ≈ 12,5 mln. $

Project implementation period – from 2016 till 2018

Implementation mechanism – public-private partnership , – a joint project with JSC «NC «SEC «Oral», – provision of land for the construction of up to 100

ha near the industrial zone of West Kazakhstan, – joint exploitation of SPP,

– state buys electric power at a high price

Payback period of the project – 5 years

The requirements for the project: - construction materials at least 70% of the Kazakhstan production- connection to the grid of «ZapKazREK» and JSC «KEGOK»- provision of electricity to the industrial zone of WKR - provide for an increase in the area to 200 hectares, and the power station to 300

MW

Workplaces – 50 people

THANK YOU FOR YOUR ATTENTION!

Contact Information:

09000, Republic of Kazakhstan, West Kazakhstan region

Uralsk, Dostyk - Druzhba avenue, 206/1

tel: 8 (7112) -505-947

Fax: 8 (7112) -506-628 E-mail: info@spk-oral.kz

Web: www.spk-oral.kz