presentation of investment potential of astana
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Presentation of investment potential of AstanaTRANSCRIPT
“Investment potential of Astana city”
Administration of the Special Economic Zone
“Astana – new city”
Republic of Kazakhstan
Since Kazakhstan has acquired independence, the main focus was to work on the creation of a favorable investment climate and with the
positive dynamics of growth. Kazakhstan ranks first among the countries of Central Asia and one of the leaders of CIS countries to provide the
most favorable conditions for investment activities.
Doing business 2014
Indicator Rank
property registration 18
Obtaining a building permit 145
Simplification of procedures for the payment of
taxes13
Protecting Investors 22
Starting a Business 47
closing a business 48
Country Ease of Doing
Business Rank
Singapore 1
USA 4
Switzerland 29
UAE 23
Kazakhstan 77
Czech Republic 75
China 96
Russia 95
Ukraine 112
Why Astana? (Big Five)
1. Favorable investment climate in the country
2. Customs union with Russia and Belarus
3. The dynamic growth of the city's economy
4. The special economic zone "Astana-New City“
5. Service support for investors
Indicators of Astana
2005 2007 2010 2013 2014
529574
697
808841
Gross regional product (GRP) of the capital has grown by24 times since 2000 (21,3 billion US dollars).
GRP in per capita – by 14,5 times ($26,8 thousand per person).
Since 2008 trade participation in GRP has grown from 20% to 25,6%
Investments in fixed assets in 2013 amounted to 3.6 billion US dollars.
Average monthly income in 2014 amounted to 940 dollars
thousand people
SamaraUfa
Yekaterinburg Omsk
Novosibirsk
Astana
Chelyabinsk
Astana is the gateway to the customs union
Ability to serve cities with population over 1 million people from Astana
The total volume of GDP- 2.7 trillion USD Total population - 170 MM people
Priority areas for investors
• Industrial production
• Business in construction
• Field of PPP
• High technology sector
State Program of Forced Industrial-Innovative Development of Kazakhstan
Investor 2020
Business Road Map 2020
Productivity 2020
Export 2020
LEGISLATION ABOUT THE CONCESSIONS
Investment preferences :
Exemption from customs duties
Tax breaks for 10 years
LAW OF THE REPUBLIC OF KAZAKHSTAN ON INVESTMENTS
industrial benefits
Government land grants
long-term contract
Government concession liabilities are not subject to sequestration
Providing the land for the term of the concession on the terms of land use
The possibility of government support measures and sources of reimbursement to the concessionaire by the state (charge for the availability) Recourse to international arbitration
Special economic zone “Astana – new city”
Total area: 7634, 71 ha.
SEZ “Astana – new city”
Industrial park №1
Industrial park №2
Area: 6603, 51 ha.
Area: 598, 1 ha. Area: 433, 1 ha.
Preferences in the territory of the new business and administrative center
Tax and customs obligationson the territory of Republic of
Kazakhstan On the territory of SEZ
Corporate income tax 20%
0Property Tax 1,5%
Land tax from 0,12 USD per Sq.m.
The fee for use of the land from 0,16 USD per Sq.m.
Refund of excess value added tax on goods
12%
Customs duties and VAT on imports 5-20%
Preferential treatment of the Industrial ParkPriority activities Privilege Rate
1) production of other nonmetallic mineral products;2) production of machinery and equipment;3) production of household electric appliances;4) production of rubber and plastic products;5) chemical industry; 6) metallurgic industry; 7) production of electric equipment, including
electric lighting equipment;8) production of glass components for lighting
equipment;9) food production;10) production of wood mass and cellulose, paper and
carton;11) production of furniture;12) production of vehicles, trailers and semitrailers;13) production of railroad locomotives and rolling
stock;14) production of avian- and spacecraft;15) production of basic pharmaceutical products and
equipment;16) production of electronic parts.
Exemption from customs collection at import of goods, materials and equipment, used in the process of construction
0%
Decrease of calculated corporate income tax for 100% 0%
Application of 0 rate at average annual cost of taxation objects at calculation of property tax
0%
Application of 0% index to correspondent rates at calculation of land tax 0%
Index 0 to correspondent rates at calculation of cost for land usage in term, stated in contract of temporary payable land usage (rent) but no more than 10 years from the date of provision of land plots to the right of temporary payable land use (rent ) *
0%
13
Industrial park project
49 projects worth $ 1.18 billion. USD
17 under construction
19 running 6, at the design stage
7 at the stage of registration of land
6
8
23
35
8
3
5
6engineeringmetallurgicalchemicalelectricspharmaceuticslogisticsBuilding Industryfoodmanufacture of furnitureother
According to the degree of readiness
by industry
Successfully implemented projects at the Industrial Park
General Electric (USA)Production of diesel locomotivesInvestment in the project: 117mln. USDNumber of employees: 1 045
ALSTOM (France)Production of electric locomotivesInvestment in the project: 61 million USDNumber of employees: 65
“Eurocopter Kazakhstan Engineering” helicopter production, on the basis of the Framework Agreement between “NK Kazakhstan Engineering” JSC and EUROCOPTER (France / Germany), as of October 27, 2010.
Talgo (Spain)Production of train coaches Project investments: US$58 mln. Number of employees: 131
Service support for investors
Full support of investors in pre-investment, active and
post-investment stages (“one-stop one-shop”
principle)
Service support (consultancy in preparing a feasibility study, Business - plan and others.)
Carrying out investment activities Promotion of brand Astana abroad
INVESTORS SERVICE CENTRE
JSC “Astana Innovations” is the operator of the project of “SMART Astana”
SMART ASTANA - IS TO ENSURE A HIGH QUALITY OF LIFE THROUGH THE USE OF NEW TECHNOLOGIES AND COST-EFFECTIVE, ENVIRONMENTALLY FRIENDLY USE OF URBAN SYSTEMS OF LIFE, PROVIDING A PLATFORM FOR INNOVATION IN THE CAPITAL.
Our proposed development goal: a comfortable, efficient, competitive city and “smart” way of life for residents and guests of Astana, the effective management of the city
Priority areas for development within the SMART ASTANA
Education: 80% increase in the level of satisfaction of parents, students, employers, taking into account the quality of education
Healthcare: 100% - the share of health care organizations that are connected to a single network health
Ecology: 30% reduction in pollution
Tourism: 20% increase in inbound tourism
Culture: 80% - the degree of customer satisfaction with quality of services sphere of culture
Astana ЕХPO – 2017 «Future – energy»
• Expected number of visitors - 5.1 MM visitors;
• Duration of the exhibition - 3 months;
• It will bring together 100 countries and about 10 international organizations;
• Holding such a big event is the new big impetus to small and medium size
businesses.
Concessionary projects of Astana
WORK IS UNDERWAY TO EXPAND THE LIST OF PROJECTS IN THE SOCIAL SPHERE AND THE SPHERE OF
HOUSING AND COMMUNAL SERVICES
projects Expected investment
Construction and operation of 2-autoparkings ~ 25 MM USD per parking
Construction and operation of 2 bus stations ~ 28 MM USD per station
Construction and operation of the complex of 4 kindergartens
~ 4 MM USD per kindergarten
Construction and operation of the urban clinics ~ 6 MM USD for each clinic
Construction and operation of 3 outpatient clinics ~ 5 MM USD for one ambulance
Projects by the scheme of public - private partnership in the field of transportation infrastructure of Astana city
Construction and operation of two parking lots
Purpose and idea of the project: reduction of the deficit of parking spaces and improvement the quality of services to provide parking spaces in the administrative center of the capital
Applicant: Department of passenger transport and highways of Astana city
Period of concession: 2015-2045
Capacity: 472 - 568 parking spaces in each section of parking
Investments during the construction: 11,5 to 13,1 million USD for each parking lot
Estimated types and amount of state support: compensation for investment costs at ~ 100% of the cost of construction during the 12 years
Current status: All the documents have been prepared. Competition procedures are in the process.
Construction and operation of two bus stations
The Purpose and Idea of the project: is to improve the quality of services on international and long-distance transportation for the population of the capital
Applicant: Department of passenger transportation and highways in Astana
Concession period: 2015-2045
Capacity: 4 500 passengers per day
Investments during the construction: from 28 million to 32,5 million USD for each bus station
Estimated types and amount of state support: compensation for investment costs at ~ 100% of the cost of construction during the 11 years
Current status: All the documents have been prepared. Competition procedures are in the process.
Projects of public – private partnership in the field of education in the city of Astana
Construction and operation of 4 kindergartens
The purpose and idea of the project: reduction of demand for kindergartens in the capital of Kazakhstan
Applicant: Department of Education of Astana city
Implementation Period: 2015-2035
Capacity: 240 seats in each kindergarten
Investments during the construction: ~ 16 million USD for each kindergarten
Current Status: under the development of the financial model of the project
Projects of public - private partnership in the field of health service in Astana
Construction and operation of ambulances and of three outpatient clinics in Astana
Purpose of Project: Development of primary health care and maintenance of the population with high-tech medical care and improvement of public health
Applicant: Department of Health Service of Astana city
Concession Period: 2015-2035
Investments during the construction – 5,4- 6,2 million USD
Estimated types and amount of state support: - Compensation of 100% of the investment costs for the construction of the object - reward for management of implementation
Capacity - 150 to 250 visits per shift 10 to 40 thousand population will be served.
Method of financing Med. Services will be paid by government (every month $ 4.5 per person)Current Status: under the development of the financial model of the project
Republic of Kazakhstan
010000, Astana city, 13 Dostyk St.
Tel. + 7 (7172) 578 986
Tel. + 7 (7172) 578 987
E-mail: [email protected]
www.investinAstana.kz