Sustainable Development Fund Kazyna

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Sustainable Development Fund Kazyna
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Content

• Goal of presentation
• Reasons to invest in Kazakhstan
• Sustainable Development Fund Kazyna
• Investors and Fund Kazyna roles
• Scheme of cooperation
• Examples of investment projects (financed and
  pipeline)
• Conclusion

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I. Goal in diversification of economy

• Attraction of strategic investors to
• the Republic of Kazakhstan
• to organize modern and competitive manufacturing,
  service, RD investment projects

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II. Republic of Kazakhstan key figures

• Ave. annual GDP growth for the last 3 years
  10.5
• Moodys rating Baa3 positive
• FDI investment 28.7 billion USD (2000-Sept 2005)
• Most advanced economy in Central Asia with GDP
  per capita of 4400

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II. Reasons to invest in Kazakhstan

• Favorable investment climate
• Proximity to large markets
• Common trade environment with Russia and Central
  Asia
• Growth opportunities
• First mover advantage
• Rich raw base
• Low cost factors of production (raw materials,
  energy, land)
• Tax incentives for priority industries
• Sound financial system
• Infrastructure
• Government support

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III. Fund Kazyna mission

• Mission
• Effectively manage state investments to diversify
  economy and increase competitiveness of our
  economy.
• Goal
• Sustainable Development Fund Kazyna was created
  by the Decree of the President of the Republic of
  Kazakhstan with the purpose to increase and
  stimulate investment and innovation activities.
• Strategy
• Identification and implementation of investment
  projects in non-extractive sector through
  coordination of National Development Institutes

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III. Fund Kazyna structure
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III. Fund Kazyna instruments

• Development Bank
• Investment Fund
• SME Support Fund
• State Insurance Corporation
• Investment Promotion Agency Kazinvest
• CMAR
• National Innovation Fund

• Long term debt
• Equity financing
• SME development
• Insurance of KZ exporters and investors
• Information campaigns and assistance to potential
  investors
• Market and policy analysis
• Venture funds, grants for RD, innovation
  infrastructure

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III. Fund Kazyna priority areas

• Petrochemical industry
• Chemical industry
• Metallurgy and metal-working
• Food industry and processing of agro-products
• Production of consumer goods
• Production of construction materials
• Transport and logistics
• Power generation and networks
• Oil and gas machinery
• Textile
• Wood processing
• Other non-extractive industries

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III. Fund Kazyna portfolio

• Charter Capital of Kazyna
  1.5bln.
• Approved investment projects
  4.1bln.
• Participation of Kazyna
  1.4bln.

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IV. Investors role

• Organization of modern production/service/RD
  facilities in the Republic of Kazakhstan through
  combination of investments, transfer of
  technology, know-how and management.

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IV. Fund Kazyna role

• Creation of favorable conditions by
• identification of investment opportunities
• search for local partners
• provision of long-term financial instruments
  (debt and equity)

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V. Cooperation scheme
research results
Investor
Fund Kazyna
idea
interest
initiation
Industry Research
Feasibility Study Business Plan
Partners Identification
investment, technology, know-how, management
debt, equity, expertise
Joint Realization of Project
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VI. Financed projects

• Project name Organisation of production of
  high-octane ecological fuel bio-additive.
• Markets Europe, Russia, China, Middle East
• Investment 64 mln
• Location Northern Kazakhstan
• Local company Biohim
• gtFirst plant build in CIS, first delivery is
  planned in October 2006.

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VI. Financed projects (cont.)

• Project name Organisation of float glass
  production
• Markets Kazakhstan, Russia, Central Asia, China
• Investment 165 mln
• Location Kyzyl-Orda, Southern Kazakhstan
• Local company Kazakh Glass Company
• Investor Pilkington (2nd largest producer of
  float glass in 2004-2005 with world market share
  of 15)
• gt First production of high quality float glass
  in Kazakhstan

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VI. Financed projects (cont.)

• Project name Railroad Shar-Ust-Kamenogorst
• Investment 124 mln
• Location Eastern Kazakhstan
• Local company Doszhan Temir Zholy
• gt Unique project, utilisation of private-public
  partnership mechanism, concession, issuance of
  infrastructure bonds

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VI. Financed projects (cont.)

• Project name Alatau City IT Park Special
  Economic Zone
• Investment 3,724 mln
• Location Almaty
• Initiator Government of Kazakhstan
• gt Alatau IT City is created with the vision of
  being the premier destination for high-tech
  industry in Central Asia software development,
  hardware manufacturing, telecom, business
  services, consulting, education and training.

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VI. Investment projects pipeline

• Project name Organisation of new production of
  ammonium (600,000 tones pa) and urea (500,000
  tones pa) production of nitrogen fertilizers
  with capacity of 1.5 mln tones pa
• Markets Europe
• Investment 600 mln
• Location Aktau, Eastern Kazakhstan
• Local company KazAzot
• Investor Needed
• gt First plant for production of urea in
  Kazakhstan, will be the largest plant in CIS

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VI. Investment projects pipeline

• Project name Construction of modern soda ash
  production plant
• Markets Local, Central Asia
• Investment 200 mln
• Location Zhambyl oblast, Southern Kazakhstan
• Local company in the process of identification
• Investor Needed
• gt Creation of production of soda ash in
  Kazakhstan, currently 100 is imported,
  strategic need

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VII. Conclusion

• We invite companies to invest capital,
  technology, know-how, and business experience to
  the economy of Kazakhstan.
• We provide government support through provision
  of analytical reports and long-tern financial
  resources.

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Contact Information

• For more information and discussion of investment
  projects in Kazakhstan
• Sustainable Development Fund Kazyna
• Astana, Business Center Arman, 4th floor
• tel [phone]
• Fax [phone]
• E-mail yerlan.manatayev_at_kazyna.kz