World Monitor Magazine, Economy WM_April 2019 web version (2) - Page 16

INVEST TO KAZAKHSTAN At the same time, the committee is constantly working to improve the ‘one window’ principle. In the annual survey for investors, one of the questions raised is: “What else can we help you with and where do you think it is necessary to make improvements?” Investors say that this principle allows them to simplify the management of their activities. Today it is possible to submit an investor's request online at invest.gov.kz, as well as to provide consulting support. The call centre ‘620-620’ operates 24/7. In the future, it is planned to automate the ‘one window’ principle, including an e-Government basis, which will allow obtaining all necessary documents using an electronic digital signature. Investment. Karaganda region. In 2018, the region broke the record for attracted investments, exceeding the mark of 470 billion tenge. The authorities set no less ambitious tasks for 2019. The plans are to reach the figure of 520 billion tenge. The upward trend in foreign direct investment has been observed in the Karaganda region over the past two years. In 2015-2016, the indicators dropped by 10-15% annually. The high rate was in 2014 – 400 billion tenge – due to the construction of the Zhezkazgan- Beineu railway line (chain). This had a great economic effect, but there were public investments involved. In 2016 investments amounted to 318 billion tenge. In 2017 this trend was overcome: we attracted 363 billion tenge. A year later, the figure broke all records, reaching 470 billion tenge. 14 world monitor Growth was mainly achieved by attracting private investment and the implementation of large projects. In 2018 eight facilities were launched with a total value of 100 billion tenge. This is the completion of the largest solar power plant construction in Central Asia by LLP Saran (32 billion tenge), a plant for the production of cathode copper by LLP Sary-Arka Copper Processing (14.1 billion tenge), a plant for steel and iron smelting by LLP Forever Flourishing (Middle Asia) Pty Ltd (7.4 billion tenge), the second stage of the gold extraction plant by JSC AK Altynalmas and the first stage of the wholesale distribution center by Alfarukh LLP (5 billion tenge); reconstruction of the ore-thermal furnace No. 1 of the Zhezkazgan Copper Smelting Plant by Kazakhmys Corporation LLP; modernization of machine-building production of Maker LLP (13.7 billion tenge) and egg production of Karagandy Kus LLP (2 billion tenge). Now 45 large investment projects are being implemented in the region totaling 2 trillion tenge, including 17 with foreign capital of 1.4 trillion tenge. Regional authorities individually select government support approaches for all major investors. For example, Maker LLP was conducted under the Productivity-2020 program, due to which the equipment was purchased at a preferential lease. Sary- Arka Copper Processing LLP signed a priority investment contract with the state. As a result, the company received an exemption from paying all taxes for 8-10 years, as well as a land plot without tender and now has direct access to the subsoil. Alfarukh LLP subsidized the interest rate on the loan through Damu fund and conducted the infrastructure at the expense of the state. To achieve this goal, the authorities intend to continue work on the implementation of existing projects and the launch of the new ones. Working with existing enterprises is also important. We have to spur Arselor and Kazakhmys so that they invest in the renewal of fixed assets, safe production, and ecology. This is subject to annual sales and discussions. At the same time, a number of major projects are scheduled to launch in 2019. These are the Karaganda plant of complex alloys (86 billion tenge), the polymetal ore processing plant by Alaigyr (64 billion tenge), the ferroalloy plant by YDD Corporation (32 billion tenge), the industrial gases production plant by TNK LindeGroup (30 billion tenge ), cable production plant by Hebei Huatong Cable Group Co Ltd (14 billion tenge) and others. The Deputy Akim (mayor) of the Karaganda region, noted that residents of the region also feel the effect of all these investments. For example, Zhairemsky mining and processing complex has already built a mosque in the village, as well as repaired the House of Culture. And, moreover, the maintenance of the hospital was also taken over: in addition to paying the salary of each doctor, which varies between 60- 80,000 tenge, the company pays an extra 120-140,000 tenge. According to Almas Aydarov, the stated amount of 520 billion tenge is quite achievable. And entrepreneurs are advised to pay attention to the food and manufacturing industries, as these niches in the region are still free to be explored. At the end of 2018, the number of active SMEs increased by 51.4% from the 2014 level, with a plan of a 50% increase by 2020.