Invest in Kazakhstan 2011


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Invest in Kazakhstan 2011

  1. 1. Meet Beibut, Rinat, Sasha, Nazym, Karina and Igor. They all have a stake in Kazakhmys because, like so many people in Kazakhstan, they benefit from our investment in the community. For example, their nursery in the city of Zhezkazgan is funded by Kazakhmys. We also finance the building of schools, hospitals and infrastructure: $88 million last year alone. Why? Because we believe in sharing our success with the nation that provides our resources. We are the world’s tenth largest producer of copper, and our processes are fully integrated from mining to finished metal. We also produce silver, gold and zinc. And with $2.7 billion worth of new finance in place, we’ve begun major growth projects to build on our success. Which is great news for Beibut and his friends. After all, what’s good for Kazakhmys is good for Kazakhstan.
  2. 2. Turning natural resources into national resources
  3. 3. CONTENTS Forewords Overview Industrial Development Banking and Core Services
  4. 4. FOREWORD Nursultan Nazarbayev, President of the Republic of Kazakhstan
  5. 5. FOREWORD
  6. 6. FOREWORD H.E. Erlan Idrissov, Ambassador of the Republic of Kazakhstan to the United States
  7. 7. FOREWORD Kazakhstan’s symbolic Baiterek Tower in Astana. At the top of the viewing tower is a gold plate with the imprint of the hand of President Nazarbayev
  8. 8. FOREWORD H.E. Richard E. Hoagland, U.S. Ambassador to the Republic of Kazakhstan
  9. 9. OIL & GAS
  10. 10. FOREWORD H.E. Kairat Abusseitov Ambassador of the Republic of Kazakhstan to the U.K.
  11. 11. OVERVIEW: INVESTING IN KAZAKHSTAN Kazakhstan has used the crisis to push forward ambitious reforms in banking and investments in infrastructure, writes Anthony Robinson Kazakhstan’s central bank chairman, Grigory Marchenko, was rehired by President Nazarbayev to push through tough bank restructuring
  14. 14. OVERVIEW: THE ECONOMY As Kazakhstan emerges from the economic slowdown, the country is moving from strength to strength and is working to diversify and industrialize its economy. Clare Nuttall reports
  17. 17. OVERVIEW: INTERVIEW WITH THE PRIME MINISTER Sheridan Prasso asks Prime Minister Massimov about foreign policy, diversification and investing in Kazakhstan
  18. 18. Chinese President Hu Jintao (right) with Kazakhstan Prime Minister Karim Massimov. Kazakh-Chinese relations are good. China and Kazakhstan have reached an agreement over the joint management of MangistauMunaiGas OVERVIEW: INTERVIEW WITH THE PRIME MINISTER
  20. 20. OVERVIEW: INTERNATIONAL RELATIONS U.S. President Barack Obama holds a bilateral meeting with President Nursultan Nazarbayev of Kazakhstan at the Blair House, April 11, 2010 in Washington, D.C. Kazakhstan’s foreign policy promotes mutually beneficial economic and political cooperation with all its neighbors. Now, as chair of the OCSE, Kazakhstan’s international relations are being examined. Joanna Lillis reports
  21. 21. OVERVIEW: INTERNATIONAL RELATIONS Kazakhstan is well-advanced in its World Trade Organization (WTO) accession talks, which have been under way since 1996, and hopes to make further progress this year. Three core issues remain in Kazakhstan’s multilateral negotiations with the WTO: intellectual property; sanitary and phytosanitary standards; and technical barriers to trade. The WTO is also seeking more information from Kazakhstan on domestic subsidies to agriculture. In terms of the bilateral negotiations which are under way in parallel as part of the accession process, Kazakhstan has reached bilateral agreements with 22 member states and continues negotiations on access to markets with seven members: the United States, the European Union, Ecuador, Mongolia, Taiwan, Saudi Arabia, and El Salvador. Plans for Kazakhstan to enter the WTO as a bloc inside its new Customs Union with Russia and Belarus have been shelved after indications that it would complicate the accession process. The states of the Customs Union – which came into force on January 1 and aims to introduce a Single Economic Space in 2012 – decided to continue separate WTO accession talks but to synchronize their positions throughout the process. DRIVE FOR WORLD TRADE ORGANIZATION MEMBERSHIP
  22. 22. ABOUT US Alex Stewart International Corporation Kazakhstan was formed 12 years ago and is part of the Alex Stewart International Group. During these past 12 years great strides have been made in establishing the business and our efforts have been rewarded with the opening of an independent laboratory in 2007 in Ust Kamenogorsk city. In addition, future expansion will move into the environmental businesses and laboratories will be opened in strategic locations. ASIC’s MISSION ASIC’s mission is to provide professional inspection services in quality control of products and conformance to international standards.This is achieved via comprehensive assistance to companies in the field of development and implementation of advanced technologies and management techniques oriented towards assurance of quality and safety of product. TARGET MARKET Since being accredited in Kazakhstan and Central Asia,Alex Stewart International Corporation has gained significant recognition and now co-operates successfully with leading domestic procedures, their trade intermediaries and financial companies. At the present time representatives of ASIC are active in more than 20 cities of the Republic of Kazakhstan, as well as in the Republic of Uzbekistan,Tajikistan and Turkmenistan, where services provided by ASIC are in great demand from companies seeking to improve the reputation of their brands and enter the market with competitive products. SERVICES Alex Stewart International Corporation (ASIC) bases its activity on the principles of responsibility, impartiality, professionalism and confidentiality. MAIN ACTIVITIES £ Inspection services £ Company monitoring £ Radioactivity testing £ Sampling, sample preparation, analysis and product expertise £ Consultancy £ Certification £ Training INSPECTION SERVICES ASIC provides independent inspection services,which include: £ Quantity and quality control of products £ Inspection of condition of transport and reservoirs £ Photo inspection £ General analysis of a company (production) £ Port and survey services £ CMA Control of Warehouses LABORATORY SERVICES The Laboratory,Alex Stewart International Laboratory, in Ust-Kamenogorsk, Kazakhstan provides high quality analytical services for mining and geological companies and also for organisations on environmental protection. The Laboratory can offer the following services; £ Sample Preparation £ Geochemical Analysis £ Multi-Element Analysis £ Metallurgical Testing of Ore £ Environmental Analysis Alex Stewart International Corporation World Leaders in Inspection, Sampling and Analysis Metals ● Minerals ● Commodities ● Agriculture ● Environmental ● Coal and Coke ● Solid Fuel ● Oil & Petrochemicals ASIC Operations Argentina Australia Brazil Bulgaria Chile China Ecuador Egypt Estonia/Finland India Indonesia Iran Iraq Japan Kazakhstan Korea Latvia Macedonia Malaysia Norway Peru Philippines Portugal Romania Rwanda Saudi Arabia Singapore Spain Syria Taiwan Thailand Turkey U.K. Ukraine United Arab Emirates USA Vietnam Zambia Alex Stewart International 42V Ivanilov St., 050059 Almaty, Kazakhstan Tel: Fax: +7 (727) 2 717 127 Email: Alex Stewart International Corporation Head Office, 20 Sefton Business Park, Netherton, Liverpool L30 1RD, U.K. Tel: Fax: +44 (0)151 523 3760 Email: Please visit the Alex Stewart International Network
  23. 23. OVERVIEW: INTERNATIONAL RELATIONS Chinese Premier Wen Jiabao meets Kazakhstan’s Prime Minister Karim Massimov during a welcoming ceremony for the Shanghai Cooperation Organization Summit, October 2009, Beijing, China
  24. 24. OVERVIEW: KAZAKH-U.S. RELATIONS U.S. companies have stood by Kazakhstan through good times and bad. Peter Galuszka looks at the countries’ economic partnership and the role of U.S. investment U.S. oil/gas production and refinery engineers study a 3D map projection of oil reserves for an area near the Caspian Sea
  26. 26. WE HAVE THE ENERGY TO LEAD The RWE Group is one of Europe’s largest energy corporations and we continue to work hard on building still further on that position. Some 20 million electricity customers and 10 million gas customers across Europe already rely on the RWE Group. Our customers and partners benefit from our extensive experience, reliability and expertise in all activities related to energy. We firmly believe that Kazakhstan, Azerbaijan and Turkmenistan, indeed the whole Caspian Region, represent an attractive investment opportunity for RWE. Kazakhstan’s many years of experience in the gas industry make it an excellent prospect for a long-term business partnership and investment. Kazakhstan and its Caspian neighbours have vast energy resources and can make a significant contribution to Europe’s drive for energy security. The region will play a strategically important role, especially in the diversification of Europe’s gas supplies in the years to come. RWE’s expertise, investment capabilities and partnership values in the upstream, midstream and downstream energy business provide the essential ingredients for the development of a beneficial long-term energy partnership with Kazakhstan. One step in this direction is the memorandum of understanding with Kazakhstan’s state assets management holding company, Samruk, for a joint study into the use of coal gasification and synthetic natural gas in Kazakhstan. This example shows that together we can further strengthen the mutual benefits entailed in gas procurement activities. A successful study could provide Kazakhstan with an alternative usage of its vast coal resources and also provide RWE with opportunities for gas procurement in Kazakhstan in the long term.
  27. 27. OVERVIEW: KAZAKH-U.S. RELATIONS China is quietly investing more in Kazakhstan as it seeks energy, metals, cement, and transportation links to feed its hunger for resources at home. “China is growing very fast and is emerging as a very serious investor,” says Ambassador Erlan A. Idrissov. Chinese foreign direct investment from 1993 to 2008 totaled about $3 billion – roughly the same as Canada, South Korea and Russia. That’s about to change in a big way. The U.S. government reports that China agreed to $13 billion in new investments in Kazakhstan in 2009. The oldest major project – the Kazakhstan-China oil pipeline – was completed ahead of schedule. Commenced in 1997, the 1,384- mile pipeline links Kazakhstan’s major hydrocarbon fields near Atyrau across Kazakhstan to the Chinese border. The last phase of the project, owned by China National Petroleum Corporation and KazMunaiGas, opened ahead of schedule in mid- 2009. The pipeline is producing 180,000 barrels per day and is expected to increase to 400,000. In a related development, China’s sovereign wealth fund, the China Investment Corporation, bought 11 percent of KazMunaiGas, worth $939 million, in September 2009. Keen interest is also evident in nuclear power. China has 20 new nuclear units under construction. Kazatomprom, Kazakhstan’s chief uranium producer, has agreed to be China’s main supplier. Westinghouse, with its 10 percent ownership by Kazatomprom, is building four AP1000 reactors in China. Working with the Kazakh National Welfare Fund, China is providing technology and equity financing for modernizing the Atyrau Oil Refining Plant, equity financing for a cast iron production facility, plus $10 billion in export financing by the Export- Import Bank of China. And China is helping build the Zhetygen-Korgas railroad that will shorten the route between China and the Middle East, as well as construct the highway dubbed the “21st Century Silk Route” that will cut transport time from Europe to China from 45 to 11 days. As Kazakhstan develops, relations between Beijing and Astana are likely to mature, especially as China’s energy demands continue to grow dramatically. CHINESE INVESTMENT SURGES DURING CRISIS
  29. 29. OVERVIEW: KAZAKH-U.S. RELATIONS November 2010 will witness the third Kazakhstan-U.S. Investment Forum, now an established part of the annual U.S. industrial investment event calendar Bolat Zhamishev, minister of finance of Kazakhstan Dr. Kairat Umarov, deputy foreign minister of Kazakhstan Daniyar Akishev, deputy chairman of the National Bank of Kazakhstan William Veale, executive director, U.S.-Kazakhstan Business Association Ross A. Mauri, general manager, IBM David M. Rubenstein, co-founder and managing director, The Carlyle Group Olivier Sarkozy, managing director and head, Carlyle Global Financial Services H.E. Erlan A. Idrissov, ambassador of the Republic of Kazakhstan to the U.S. Prime Minister Karim Massimov H.E. Richard Hoagland, U.S. ambassador to the Republic of Kazakhstan
  31. 31. OVERVIEW: MAP OF THE REPUBLIC OF KAZAKHSTAN Above 1,000,000 inhabitants From 100,000 to 1,000,000 From 10,000 to 100,000 Less than 10,000 inhabitants The capitals of the states Region centers Other towns Settlements Rural inhabited localities District centers COMMUNICATIONS Railways Republican automobile roads. Passes Other automobile roads Sea ports and piers. Lighthouses BORDERS State Region Scale 1: 3,000,000 INHABITED LOCALITIES
  33. 33. OVERVIEW: A TALE OF TWO CITIES With such a harsh climate to contend with, greening-up Astana takes careful planning. Alima Bissenova reports
  34. 34. ab UK: Global Asset Management Wealth Management Investment BankI I Wealth management at UBS. It’s all about being well connected, with you.
  35. 35. OVERVIEW: A TALE OF TWO CITIES Clare Nuttall and Serik Jaxylyk explore Almaty – Kazakhstan’s developing financial hub
  37. 37. datoba designandbuildconsultantsengineeringarchitectureprojectmanagement Full service EPC contracting In house multidiscipline engineering & architectural design Project management Complete project life cycle approvals In Kazakhstan since 1995 Commitment to staff training & development International standards & quality ISO 9001:2000 registered Our Clients: Caspian Services Credit Suisse Ernst & Young McDermott Procter & Gamble Air Astana Gallaher JTI Aroma Roxi Petroleum Contact: Nigel Croft - Business Director - +7(727) 267 12 23/24/25/26/27 The Kazakh International Company Office Fit-outs and Bespoke Facilities Industrial + Manufacturing Oil & Gas Support Facilities Hospitality + Commercial
  38. 38. W H E N Y O U ’ R E S U R R O U N D E D B Y N O T H I N G … you might as well ask for everything. Sode xo Remote Sites turns yo ur site i nto a home away from home , even by -40° or even i n ro ugh seas, helping yo u to attract and retai n ta lents and to boost yo ur site producti v i ty. Wit h a proven experience in 40 countries, our te ams deploy skills and ingenuity, day i n and day out, to deliver Quality of Life sol uti ons that go beyo nd yo ur expectations. Удаленные объекты Содексо превратит ваше далекое от дома место в уютное и домашнее, даже при температуре -40 °, а порой и в самые жесткие климатические условия, мы поможем Вам привлечь и сохранить таланты и повысить Вашу производительность работы на участке. День за днем, с доказанным опытом в 40 странах наши команды развертывают навыки и изобретательность, чтобы реализовать решения для качественной жизни, которые превзойдут все Ваши ожидания. Sodexo office in Atyrau - 116 A, Azzatyk Av. - P.O. Box 060011- Atyrau - Kazakhstan - Tel: +7 7122 456871 Sodexo office in Aktau - Microregion 2, blg 47 - Aktau - Kazakhstan - Tel: +7 7292 740090 For more information, please contact: PhotoCredit:Corbis.
  39. 39. INDUSTRIAL DEVELOPMENT Anthony Robinson looks at what the government’s new tax laws, plans to modify production-sharing agreements, and higher oil prices mean for Kazakhstan’s oil industry
  40. 40. INDUSTRIAL DEVELOPMENT Multinational oil companies, such as Italy’s ENI and the UK’s BG, have shares in the Karachaganak field
  41. 41. Central Asia North Africa Middle East North Sea Canamens Energy Central Asia Limited Kazakhstan Branch Қазақстан Республикасы 050012, Алматы қ. Əл-Фараби даңғылы 13 «Нұрлы Тау» Бизнес-орталығы 1В блогы, 601 офис Телефоны: +7 727 311 1050/1051 Факсы: +7 727 311 1049 Canamens Energy Central Asia Limited Kazakhstan Branch Республика Казахстан 050012, г. Алматы пр. Аль-Фараби 13 Бизнес-Центр «Нурлы Тау» блок 1В, офис 601 Телефон: +7 727 311 1050/1051 Факс: +7 727 311 1049 Canamens Energy Central Asia Limited Kazakhstan Branch Suite 601, Block 1V Nurly Tau Business Center Al-Farabi Avenue 13 050012 Almaty, Kazakhstan Phone: +7 727 311 1050/1051 Fax: +7 727 311 1049 For further information: About Canamens Canamens is a private equity funded upstream oil and gas company. Its aim is to acquire assets with existing or near-term production opportunities, field developments with related exploration potential and to build a small, but focused, exploration portfolio. Sector Asset Management and Goldman Sachs are its two principal investors. Over the next decade Kazakhstan will become one of the world’s largest hydrocarbon producers and exporters, allowing the country to expand and diversify its economy, stimulating growth and driving the continued prosperity of the country. Canamens believes it has a role to play in Kazakhstan’s future by applying leading-edge technology and operational expertise to Kazakhstan's vast hydrocarbon resources. Having acquired an initial asset base and commenced activity to develop these assets, Canamens is keen to expand its involvement in Kazakhstan. Along with our local team based in Almaty, we will continue to build relationships with local operators, contractors and service providers as we unlock the value of our assets and expand our portfolio. Local partners. Local knowledge. Operational success.
  42. 42. INDUSTRIAL DEVELOPMENT Demand for electricity is high, with the construction of new-generation capacity a priority. Clare Nuttall looks at the government’s plans to modernize Kazakhstan’s power sector and keep up with demand
  43. 43. INDUSTRIAL DEVELOPMENT As economic growth resumes in Kazakhstan, the demand for electricity is rapidly increasing
  44. 44. INDUSTRIAL DEVELOPMENT With its strategic investment plans and refinery modernization programs, KazMunaiGas is set to become one of the world’s major oil industry players. Birgit Brauer reports The KazMunaiGas headquarters in Astana
  45. 45. INDUSTRIAL DEVELOPMENT An off-shore oil platform under construction in the Kashagan field in the North Caspian sea. The discovery of Kashagan’s commercial reserve of around 13 billion barrels of oil in 2000 was one of the largest finds in decades
  46. 46. XXXXXXXXXXXXXXXX DOW has been operating in Eastern Europe for 50 years. That is a key component of the company’s business strategy and a significant contributor to Dow’s corporate growth and profitability. Dow operates nine commercial offices and eight production sites in the region and employs about 600 people in different businesses and functions across the region. Dow offers its customers in the region a variety of plastics and chemicals sold to a wide range of downstream industries. These include automotive, oil and gas, packaging, building and construction, furniture, wire and cable, large appliances, water treatment and agricultural products. Sales in 2009 were about USD 2.4 billion, growing to USD 3.2 billion by 2015 and to USD 5.5 billion by 2015. General Manager for Dow in Russia and the CIS Marko Blagovic discusses the company’s activities in Kazakhstan and its future prospects. What is Dow’s strategy in Kazakhstan? Kazakhstan is of strategic importance for Dow’s diversified businesses and, specifically, it is a key growth market for Dow AgroSciences, Dow Oil & Gas and Dow Water & Process Solutions. What is Dow Water & Process Solutions’ contribution to the 2009 boom in the Kazakh mining industry? Dow Water & Process Solutions is one of the leading suppliers in Kazakhstan of ion exchange resins for the mining industry. Since 2004, uranium-mining industry in Kazakhstan has been constantly developing and demonstrating growth potential for the local players, as well as for international companies like Dow. And we have secured our stable position in the local market, becoming the key supplier of ion-exchange resins developed by Dow Water & Process Solutions for subsidiaries of the state corporation Kazatomprom, which is one of the leading uranium production companies in the world. Today, Dow accounts for a relevant market share of resins supplied to mining and energy companies in Kazakhstan. Mining and chemical industries are facing a series of issues when recovering valuable and precious metals such as decreasing ore quality, environmental and health and safety concerns, as well as fire issues linked to solvent extraction. Ion exchange technology can purify, concentrate and recover a great variety of precious and valuable metals such as gold, uranium, nickel and cobalt from leach liquors, electrolytes, wastes or solvent extraction raffinates. Among the benefits of ion exchange resins are substantial waste volume reduction, minimal space, and easy recovery of process water. In addition, this technology is easily adapted to a great variety of processes including moving packed beds or resin-in-pulp, the latter process driving significant capital expenditure reduction. What are your plans for the future? We will continue to invest in innovative solutions, world-class resources and – most importantly - people. In 2009 Dow invested $1.6 billion globally. On April 1 we acquired Rohm and Haas which has allowed us to combine two best-in-class technologies, strengthen and broaden our market base and accelerate Dow’s transformation into the world’s leading specialty chemicals and advanced materials company. The challenging times have not affected our plans for the Former Soviet Union. On the contrary the Dow Izolan joint venture’s state-of-the-art polyurethane manufacturing facility in Vladimir (Russia) opened on schedule in 2009 and is supplying the fast expanding Russian and CIS market. In Kazakhstan as in the rest of Dow’s East Europe Growth Region, we focus on offering high quality services and building long term relationships with our customers, local communities and other national stakeholders, addressing their needs in a timely, innovative way with ecologically-friendly products manufactured in strict adherence to the criteria of sustainable development. SPONSORED FEATURE Dow Looks to Kazakhstan
  47. 47. For 30 years Cameron has maintained an established presence in Kazakhstan. With facilities located in Astana, Almaty, Aktobe, PerformanceMEANS LOCAL COMMITMENT KazakhstanKazakhstanKazakhstan Russia China Tengiz Atyrau Aktobe Astana Almaty Uralsk/AksaiUralsk/Aksai Tengiz Atyrau Aktobe Astana Almaty AktauAktau For 30 years Cameron has maintained an established presence in Kazakhstan. With facilities located in Astana, Almaty, Aktobe, Tengiz, Uralsk/Aksai and Atyrau, we provide a full range of field service, engineering, storage, repair and maintenance service for our customers. Expanding on this successful operation, Cameron has commenced building a new CAMSERV™ aftermarket facility in Atyrau. The facility, due to open in late 2009, will enhance our abilities and increase our capacity both for support of the product and the customer. The facility will also provide a step change in the training of our local Kazakhstan staff. Cameron is committed to providing the highest quality products and services using the latest technology increasing the local Kazakhstan content – in both personnel and manufactur- ing – and continually raising performance. Together. RAISING PERFORMANCE. TOGETHER™ ©Cameron , TC9724 For leading oil and gas producers, Cameron is the Surface Systems wellhead and tree expert that helps you continuously raise performance through our proven technical expertise, comprehensive solutions, and global manufacturing and service network. SURFACE SYSTEMS 2010
  48. 48. INDUSTRIAL DEVELOPMENT Bringing Caspian off-shore oil safely to shore is proving difficult and expensive, writes Anthony Robinson
  49. 49. INDUSTRIAL DEVELOPMENT As well as new pipes and pumping stations, cross-Caspian Sea oil tankers will be needed to cope with the sharply rising volumes of oil and gas from Kashagan
  50. 50. Mubadala Oil & Gas is a company with big ambitions realizing opportunity Algeria Bahrain Indonesia Kazakhstan Libya Malaysia Oman Philippines Qatar Thailand UAE Vietnam
  51. 51. INDUSTRIAL DEVELOPMENT The Caspian Sea, with its fluctuating sea levels and winter ice, can be hazardous for the off-shore oil industry
  52. 52. INDUSTRIAL DEVELOPMENT Kazakhstan’s oil industry is booming and the country will need to expand its export pipelines to keep up with current oil production. Birgit Brauer reports
  54. 54. INDUSTRIAL DEVELOPMENT With the world’s second largest deposits of Uranium, Kazakhstan’s nuclear potential is clear. Opportunities abound for foreign investors. Sheridan Prasso reports
  55. 55. INDUSTRIAL DEVELOPMENT Kazakhstan has been increasing the number of uranium mines as well as developing its existing mines
  56. 56. INDUSTRIAL DEVELOPMENT Uranium pellets fill fuel rods in this display of a nuclear fuel assembly at the Ulba Metallurgical Plant in Ust-Kamenogorsk, Kazakhstan
  57. 57. Our energies have a future. A future without CO2. -Illustration:H5 World energy demand is increasing. Greenhouse gas emissions must be curbed. To meet this dual challenge, AREVA is innovating. As world leader in the nuclear energy business and as a group committed to the development of renewable energies, AREVA offers its customers solutions for producing electricity, while protecting the planet.
  59. 59. INDUSTRIAL DEVELOPMENT Clare Nuttall and Serik Jaxylyk look at Kazakhstan’s alternative energy potential and current wind, solar and biofuel initiatives
  60. 60. INDUSTRIAL DEVELOPMENT Anthony Robinson looks at current and future investment initiatives to develop Kazakhstan’s chemicals and petrochemicals industry Workers check pipelines at the Alashankou Oil Transporting Station, 2.5km from China’s Alashankou Port. The pipelines receive crude oil from Kazakhstan through the Kazakhstan-China Oil Pipeline in Bole, in western China’s Xinjiang province
  61. 61. INDUSTRIAL DEVELOPMENT Sulfur pellets for export to China to be used, primarily, as fertilizer. Large amounts of sulfur are being produced by the oil and gas operators in the Caspian Sea area of western Kazakhstan as a by-product of the oil they extract
  62. 62. INNOVATIVE AND SUSTAINABLE SOLUTIONS FROM A GLOBAL LEADER Sustainability requires making every decision with the future in mind. It is our relationship with the world around us — creating economic prosperity and social value while contributing to the preservation of our planet. Dow focuses on developing products and solutions that make sustainable improvements in the world, significantly helping solve challenges such as alternative energy, affordable and adequate food supply, decent housing, clean water, and improved personal health and safety. 52,000 highly qualified employees worldwide 214 manufacturing facilities in 37 countries across the globe 5,000 products that make the difference For more information, visit and E-mail: Phone: +7 495 663 78 20 Dow has been present in Eastern Europe for already 50 years, offering a variety of base and performance plastics and chemicals for a wide range of downstream industries: • automotive • oil and gas • packaging • building and construction • furniture • wire and cable • large appliances • water treatment • agricultural products In Dow’s East Europe Growth Region, the Company employs about 600 people at eight manufacturing sites and nine office locations. The recent new large and state-of-the-art polyure- thane systems manufacturing plant was built by the Dow Izolan joint venture company in Vladimir (Russia) on December 11, 2009.
  63. 63. Minova Kazakhstan 100011, Kazakhstan, Karaganda North prom zone uchetniy block 018, building 014 Tel.: +7 7212 46 25 38 Fax: +7 7212 46 13 97 Solutions from Materials Technology We offer a wide range of products designed to increase safety and reduce costs to help increase mine productivity: Polymeric resin capsules Rock bolts Polyurethane and phenolic resins (Bevedan-Bevedol, Geoflex) Cement Products Using polyurethane resins for roof and pipeline insulation increases thermal efficiency. For further information on our products or to find out how Minova can help solve your problems please visit our web site Minova Kazakhstan Your reliable partner for the mining industry
  64. 64. INDUSTRIAL DEVELOPMENT Kazakhstan has some of the world’s richest mining resources. Anthony Robinson looks at how the industry is faring in the current economic climate
  67. 67. Rio Tinto is a leading international business involved in each stage of metal and mineral production. From operations in more than 50 countries, we produce aluminium, copper*, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc, zircon). Our diverse portfolio, high quality assets and expertise in technology and marketing give us the capability to supply a wide spectrum of customers and markets. Safe working and sustainable development are at the heart of everything we do. Our worldwide operations provide long term local benefits, including employment and training opportunities for our neighbouring communities. We are already in Kazakhstan, having been working in mineral exploration and business development here for more than 12 years. We’re committed to growing our business in the region and seeking large, long life mining projects at various stages of development. We’re looking forward to a long and successful relationship with Kazakhstan and to continuing to be a partner of choice in the metals and minerals business. A partner of choice in metals and minerals
  68. 68. INDUSTRIAL DEVELOPMENT Kazakhstan’s agriculture sector is seeing record harvests. Clare Nuttall and Serik Jaxylyk look at the government’s plans to increase the country’s farming, processing, and exporting productivity
  70. 70. INDUSTRIAL DEVELOPMENT Grape harvesting: southern Kazakhstan has good conditions for vineyards and orchards
  71. 71. Full Challenger line of equipment Flexible finance solutions 24/7 technical assistance
  72. 72. G4 City LLP is the initiator of the «Construction of four satellite cities of Almaty» project, the largest project in Kazakhstan and the Central Asia region. This project has been considered and was approved by the President of the Republic of Kazakhstan in 2007 and registered in the State- Run Program of Housing Construction in the Republic of Kazakhstan, 2008-2010. The Master plans that have been realized within the framework of the «Construction of four satellite cities of Almaty» project were unanimously ratified by the Cabinet members voting at the Government session of the Republic of Kazakhstan. The Operator of this project is the Akimat of Almaty region, the project monitor is the Ministry of Industry and Trade. The Largest Development Project of the Central Asia region Establishing itself as a leader in the social and economic development among the countries of the region and possessing considerable territorial advantage, Kazakhstan can play a key role in the Central Asia region, converting itself into an attractive region of the civilized and secured world, representing itself as a motive power, by making itself a place of interest for world investors in development of all regions of Central Asia Dmitriy Pak The General Director of G4 City LPP The «Construction of four satellite cities of Almaty» project has strong potential for private and institutional investors. The project has high investment appeal, as it solves problems of state significance effectively and by means of a comprehensive approach. The G4 City project involves the creation of four unique cities under the names of Gate City, Golden City, Growing City and Green City. The total area of the project is 8006.7 ha. Four satellite cities will be located along the Republican Highway that links the City of Almaty with the lakeside town of Kapchagai and then continues north further into the Almaty region. This large project, unprecedented in size in Central Asia, plans for the construction of satellite cities that will possess
  73. 73. great potential and will provide economic and social benefits both for the state and participants of the project, and for the final consumer. The project corresponds to world standards in its technical and economic features. Furthermore, the development area, building volumes, population and GDP of the cities were planned in accordance to those standards. “Kojankus” residential area is the first complex of the satellite city Gate City and is independently considered as a separate project. The conceptual basis of the project, to develop 181 hectares, lies in the north and is defined by a suburban part of Almaty. The area is located in the environmentally friendly city district. The idea of the “Kojankus” project harmoniously combines urban and rural elements located in an ecologically advantaged district. Considering that convenient public transportation connects “Kojankus” with the city of Almaty, many of the future inhabitants of the area could conveniently work in Almaty. Kazakhstan has established itself as a leader in social, cultural and economic development among the countries of the region, and possesses a considerable territorial advantage, thus Kazakhstan can and does play a key role in the Central Asia region. Recently, foreign investors have had a considerable interest in the Kazakhstan market. By expert estimations, more than eighty percent of all direct investments to Central Asia have been received by the Kazakhstan economy during recent years. Our country has been included in a list of twenty of the most attractive countries in the world, in terms of investments, by the World Bank. The investment mode of Kazakhstan can be characterized as liberal, providing access for foreign investors practically in all branches of the economy. The World Bank says Kazakhstan is one of the most attractive countries for investment. The unprecedented size of this development project, in Central Asia, of the satellite cities provides great potential and economic and social benefits both for the state and project participants, and for the final consumer. This unique large- scale project is especially interesting because the building of the infrastructure and social objects is partially financed by the Government, providing proof of the project’s soundness and profitability. Thus, within the State-Run Program of Housing Construction, 2008-2010, in Kazakhstan the funds of 13.49 milliard tenge ($89.9 million) were allocated to the satellite cities project. Besides, one of the most crucial trends in the state project is an innovative industrial policy and development of energy sources for 2003-2015. The project aims to develop industries and science potential in the Republic of Kazakhstan which would allow production of new hi-tech products for internal markets as well as for export, and provide an import substitution policy, which in general will help Kazakhstan to be one of the fifty most competitive countries of the world. First of all, this will motivate a reconstruction of current production powers and a transfer of large production enterprises of Almaty into the industrial satellite city area. This will also facilitate establishment of new science-cum-education and science-cum-production complexes. A lot of attention has been given to developing inter-regional and international relations in the framework of the industrial satellite city. This is being done in order to support competitive industries and exploit a transit potential of the region, as well as developing education and a highly-skilled personnel re-training system for industry on the basis of higher and secondary educational institutions located in satellite cities in the framework of the project. Investing in this project will be profitable and investments will have a high rate of return. Co-development and mutual participation in the project will establish a joint venture in Kazakhstan with equal shares. In addition, the project covers a number of directions in which the development of the economy of the region can go: rental housing construction, building and transferring of the industrial enterprises from Almaty to the territory of the Growing City, and tourism development in the Green City. Thus, the consumer base will be created, and its maximum concentration will be in the Almaty region at all stages of the project’s implementation. Great attention is being given to creating an appealing investment climate by the development of the financial structure, systems of investing formation of satellite cities on the basis of mechanisms of concession, public-private partnership, private investment and business development.
  74. 74. Our Our Our
  75. 75. INDUSTRIAL DEVELOPMENT The government’s “Road Map” program has made some valuable steps forward, but there is still room for improvement in Kazakhstan’s construction industry, says Alima Bissenova New buildings mark the Astana waterfront. The government is seeking to create housing for Kazakhstan’s aspiring middle class
  76. 76. INDUSTRIAL DEVELOPMENT New houses in Astana: the construction of residential buildings is on the rise again and slowly recovering from the financial crisis
  77. 77. PASCHAL-Werk G. Maier GmbH Kreuzbühlstraße 5 · 77790 Steinach Phone: +49(0)7832/71-0 · Fax: +49(0)7832/71-209 · PASCHAL-Werk G. Maier GmbH · Representative Office Dostyk av. 114, office 38 · 050051 ALMATY · Republik Kasachstan Phone: 007-72 7 328 33 38 · Fax: 007-72 7 262 11 10 · The PASCHAL Group is a leading international company in the area of formwork and shoring. We offer solutions around the globe with service, formwork and shoring systems, as well as software. We support our customers with our experience and our know-how in more than 60 countries. Service in Formwork + Shoring Welcome to the new world of concrete construction
  78. 78. BANKING AND CORE SERVICES With reforms and financial regulation taking place, Kazakhstan’s banking sector has changed dramatically. Clare Nuttall reports
  79. 79. BANKING AND CORE SERVICES ISLAMIC BANKING In another development, the government also adopted new legislation in 2009 aimed at creating a market for Islamic financial services in Kazakhstan. It is the first CIS country to do so, and the project has strong support from President Nursultan Nazarbayev and other top officials. When it obtains its banking licence, the United Arab Emirate’s Al Hilal bank is set to become the newest player on the Kazakh market. Al Hilal planned to invest $1 billion within its first four years in Kazakhstan, bank CEO Mohamed Jamil Berro announced in March. “There are strong ties at all levels between Abu Dhabi and Kazakhstan, vast investment opportunities in Kazakhstan, and an opportunity for us to contribute to the growth and prosperity of this country,” he said. The Kazakh government is also planning to launch its first sovereign sukuk – or Islamic bond – in 2010 for the amount of up to $500 million.
  80. 80. BANKING AND CORE SERVICES Investment in infrastructure is essential if Kazakhstan is to diversify its economy, writes Birgit Brauer
  81. 81. BANKING AND CORE SERVICES The European Bank for Reconstruction and Development (EBRD), the largest investor in Kazakhstan outside the oil and gas sector, plans to invest around $1 billion into projects furthering the diversification of the Kazakh economy. The EBRD adopted a new strategy for Kazakhstan in February 2010, setting out the priorities for its work in the next three years. The bank aims to help the country to emerge from the crisis with a diversified economy and a more sustainable financial model. “Helping the Kazakhstan economy to diversify is a priority for us,” says Michael Weinstein, the EBRD’s country director for Kazakhstan. It plans to support the government’s economic diversification program though equity and debt investments, as well as help identify technical assistance. Projects will be identified in collaboration with the Ministry of Industry and Trade and the Samruk-Kazyna National Welfare Fund. “Momentum is building, and there is a window of opportunity post-crisis but before oil prices go through the roof again,” says Weinstein. “We are proactively looking for new projects in Kazakhstan.” The EBRD has also shown its support for Kazakhstan by planning to hold its 2011 Annual General Meeting in Astana. To date, the EBRD has invested more than €2.4 billion in 108 projects, mobilizing additional investment of more than €5.4 billion. EBRD GROWS ITS ROLE IN KAZAKHSTAN BY CLARE NUTTALL
  82. 82. CASE STUDY Since its formation almost 60 years ago, Energoprojekt has developed into a complex business system operating today in 22 countries. Founded as a consulting company for the design of hydro and thermal power plants, through decades of business activities, Energoprojekt entered many different fields and obtained a strong and respectable position in the fields of: Contracting, Industrial Engineering & Infrastructure including projects of administrative, commercial, public, apartment and other type of buildings, hotels, hospitals, industrial solutions, oil and gas processing and transportation; irrigation systems, water and sewage systems, highways, roads, subway stations,railwaystations,tunnelsetc.and Power, Ecology and Water Treatment including projects of power generation (Thermal & Hydro Power Plants), power transmission&distribution(transmission lines, substation, distribution systems & networks) telecommunication systems and networks, power control centers & SCADA systems, potable and waste water treatment plants . Today, Energoprojekt can be found on the lists of Top International Design firms and International Contractors published every year by the renowned American magazine “Engineering News Record”. Experience in Kazakhstan Ageographicallyandbusinessdiversified portfolio has enabled Energoprojekt to avoid oscillations of the business cycle. Following this approach to business activities and anticipating promising Kazakhstan market possibilities, at the beginning of the new millennium Energoprojekt opened two branch offices in Kazakhstan – Energoprojekt Visokogradnja Branch Office in Aktau and Energoprojekt Niskogradnja Branch Office in Almaty, and at the beginning of 2010 we opened TOO Energo Kaz company based in Aktau. “As many times before, this move proved to be the right choice,” said Mr. Our positive experience in Kazakhstan’s booming Market Vladan Pirivatrić, CEO of the Company. “Throughhighlyprofessionalandefficient execution of projects, Energoprojekt established good business relationships with major Kazakhstan Investors. We also obtained a strong market position, especially in the field of General Contracting with main sectors of activities in this area being the construction of hotels, office buildings, shopping malls, retail and commercial centers and infrastructure projects, such as roads and underground structures.” In the last couple of years in Kazakhstan we executed projects including design, project planning and project management, followed by construction, supervision, commissioning, training of client’s personnel, maintenance and other post- construction services. Always maintaining the highest standards of technology and quality, Energoprojekt constructed the Commercial and Business Centre in Aktau (50.000 m2), the Commercial and Residential Building in Uralsk (16.200 m2), the Residential Building (35.000 m2) – an 18 storey building and Business and Commercial Centre (16.000 m2), both Almaty and Abay Metro Stations Client: AO“ALMATIMETROKURILIS”, Almaty Contract period: 2006-07; 08-09 Almaly and Abay metro stations are underground structures within the first subway line of the city of Almaty in the Republic of Kazakhstan. They were constructed at the depth of 30 – 70 m in the city centre. The project included the construction of three tunnel tubes, (diameter cca 90-100 m2) 815m long, mutually connected by crossings with platform constructions and slope- sided passenger tunnels. The project organization was very complex due to limited access through the transport tunnels, as the works on the other 5 stations have been executed simultaneously. Beside applying the latest know-how and technology for the construction of underground structure, a significant number of experts were trained for this kind of structures. Energoprojekt Niskogradnja Branch office 144, Tchaykovskogo str. off. 253 050000 Almaty Republic of Kazakhstan Phone: 7 727 250 81 21 Fax: 7 727 250 23 96 E-mail:
  83. 83. Your reliable partner CEO Vladan Pirivatric in Atirau, and Almaly and Abay metro stations within the first subway line of the Metropolitan city of Almaty. Kazakhstan, with its vast natural resources, current development of energy sectors as well as the potential of becoming one of the world’s major producers of hydrocarbons, metals and minerals, puts Kazakhstan into a position of becoming a profitable growth engine in the Region. As an international company, Energoprojekt is here to stay and contribute significantly with its vast professional experience and know-how. Energoprojekt Bulevar Mihaila Pupina 12 11070 Belgrade, Serbia Phone: + 381 11 310 10 10 Fax: + 381 11 311 42 00 Retail / Entertainment Complex,Aktau Client: TOO “Oil Real Estate” LLC, Almaty Contract period: 2006-09 This Retail / Entertainment Complex of 50.000 m2 built area, consists of a basement and three floors and is situated at the north boundaries of the city of Aktau. In its architectural form this Complex is a modern composition with elements of traditional Kazakh architecture. A modern fountain has been designed and constructed on the square emphasizing the main entrance of the Complex. Thecomplexintegratesareasofvarious activities, such as sport, leisure and retail. It has a covered ice-skating rink, indoor recreation facilities for various types of exercise, such as aerobics, martial arts, boxing, billiards, bowling, multifunctional sports hall, indoor swimming pools – one for public use and one for competitions – a SPA center etc. It also has a multiplex cinema, retail areas, various cafeterias, bars and restaurants, a central bakery and supermarket, significant office space, as well as all necessary storage and technical service areas. The complex also has underground as well as open-air parking and open-air sport facilities. Energoprojekt Visokogradnja Branch Office Mikrodistrict 29a, ex “Vahtovaja avtostancia” 13 000 Aktau Republic of Kazakhstan CASESTUDY Phone: 8 (77292) 20 07 57 8 (77292) 20 07 56 Fax: 8 (77292) 20 33 70 E-mail:
  84. 84. BANKING AND CORE SERVICES Rail and road projects such as the 21st-Century Silk Route highway are boosting transit and promoting growth in Kazakhstan, says Anthony Robinson
  85. 85. BANKING AND CORE SERVICES Train carriages transport oil in the Caspian Sea region of west Kazakhstan. Ambitious railway upgrades will ensure quicker transit times for bulk transportation
  87. 87. A Arup
  88. 88. BANKING AND CORE SERVICES Astana International Airport’s modern terminal. Air transport continues to grow, with many airlines expanding routes into Kazakhstan Christopher Pala looks at the improvements being made to Kazakhstan’s air transport sector, and how it emerged relatively unscathed from the recession
  89. 89. BANKING AND CORE SERVICES Inside Astana International Airport’s modern terminal
  90. 90. V K А с т а н а – это многопрофильный поставщик архитектурных и инжиниринговых услуг, являющийся частью VK GROUP. Сферы деятельности – архитектура, специализированное техническое оснащение, инфраструктура и строительные конструкции. Компания работает как с государственными, так и с частными организациями. Более, чем 50-летний опыт VK GROUP в настоящее время включает внушительныйпереченьвыполненныхпроектовнарядустакимикрупными, как новая Штаб-квартира NATO (в сотруднитчестве с SOM-ASSAR) и Здание Судов города Антверпен (в сотрудничестве с известным английским архитектором Ричардом Роджерсом). Архитекторы и инженеры компании VK GROUP концентрируются на 4 целевых рынках: Здравоохранение, Гражданские Здания и Сооружения, Промышленность и Инфраструктура. VK GROUP является пионером в создании долговечных зданий и может выполнять сложнейшие анализы и обследования энергоэффективности объектов. Создайте Ваши проекты в Казахстане со специалистом международного уровня! Свяжитесь с нашим офисом в Астане.
  91. 91. BANKING AND CORE SERVICES 3G technology has reached Kazakhstan, enhancing internet connectivity. Now the communications market is calling for further investment. Christopher Pala reports
  93. 93. A true love affair. True love can be hard to find. At Tele2, we had to travel all the way from our homeland Sweden to Kazakhstan to find Neo. Fortunately, feelings were mutual and we bought 51% of the shares in Neo. Just as in any good relationship, the one between Tele2 and Neo is based upon common interest: We have the same vision of providing customers with affordable telecom services. With the power of marketing knowledge together with a low cost strategy, we intend to position the new Neo as the price leader in Kazakhstan. Our main offers in Kazakhstan will be within the mobile voice market. Our primary focus will be to expand our network and increase capacity mainly in urban, but also in rural areas. In spite of our cost consciousness that means considerable investments in Kazakhstan the years to come. We hope all of this will make the people of Kazakhstan love Neo just as much as Tele2 does. With 27 million customers in 11 countri- es, Tele2 is one of Europe’s leading telecom operators. We always provide our customers the best deal. Tele2 has been listed on the OMX Nordic Exchange since 1996. In 2009, we had net sales of SEK 39.3 billion and reported an operating profit of SEK 9.2 billion.
  94. 94. XXXXXXXX
  95. 95. I HAVE LIVED in Kazakhstan for nearly 16 years and witnessed incredible changes. Today, with my local partner, we own and manage a leading property brokerage and consultancy, with four offices and 50 staff. Our services cover all property types and we represent CB Richard Ellis, the global leader in our field. I should also mention my role as a board director of the European Business Association of Kazakhstan, which represents 130 local and foreign companies. Eurobak supports our members by organizing forums, networking events, and industry committees, and lobbying government on investment climate issues. The credit crisis hit Kazakhstan early, around August 2007, and had a dramatic effect on the construction industry and property market. Financing halted overnight, as did buyers. There was no liquidity, and thousands of people lost their jobs. However, the government responded quickly to support and stabilize the industry: $2 billion was distributed to banks and municipalities to buy apartments and fund problem projects to completion. Approximately $1.5 billion was invested during 2007-2008 to buy more than 40,000 flats and assist more than 25,000 buyers in Astana and Almaty. Formalizing the program in March 2009, the Samruk-Kazyna property fund was set up with the goals of buying uncompleted residential and commercial projects and bringing them to completion; providing property management services; and finding solutions to various other property Real Estate Market Recovery issues. The fund is also actively developing the rental market and options for lease to buy, plus investing in the construction industry to help builders, banks and materials suppliers. By the end of 2010, the fund expects to have 1.5 million square meters of residential and commercial property under management, the majority of it residential and supporting lower-income groups. On the consumer side, the Kazakhstan Mortgage Company (KMC) has also been playing an important and active role in implementing the state housing program with a special focus on affordable mortgages. KMC has been able to offer an effective annual interest rate as low as 10 percent and down payments of only 10 percent, compared to 30 percent at commercial banks. Since the fourth quarter of 2009 we have seen a slow but steady recovery, increasing activity each month, new projects requesting feasibility studies, some older projects re-starting, overseas investors looking again, and prices starting to edge up. We sense an air of optimism and renewed confidence. The future looks bright again. SPONSORED FEATURE
  96. 96. BANKING AND CORE SERVICES International retail chains have been slow to enter the Kazakh market, but high- quality retail developments are providing new opportunities. Clare Nuttall and Serik Jaxylyk report € € € Above: the impressive Mega Center shopping complex in Almaty is one of many successful mall developments in the city Opposite page: the shopping demands of Kazakhstan’s emerging middle class has boosted the presence of international brands
  99. 99. BANKING AND CORE SERVICES With stunning, vast natural beauty, and a rich and varied history, there is huge potential for the tourism industry. Sheridan Prasso reports Shymbulak is a popular ski resort in Almaty Province
  100. 100. BANKING AND CORE SERVICES Kazakhstan has much to offer the high-end tourist, such as the Palace of Peace and Harmony – designed by British architect Sir Norman Foster – which houses an opera theatre, concert halls and a museum of national culture
  101. 101. BANKING AND CORE SERVICES The Kazakh government is planning to improve its health service. Clare Nuttall and Serik Jaxylyk discover how it is seeking to develop healthcare and pharmaceuticals
  102. 102. BANKING AND CORE SERVICES Some 75 percent of Kazakhstan’s medicines are imported
  104. 104. go to for more information TSX: UUU JSE: UUU In 2009, the Republic of Kazakhstan became the world's largest uranium producer. Uranium One is pleased to be partnered with Kazatomprom in the development of the Republic's vast resources, through its joint venture interests in the Akdala, South Inkai, Karatau and Kharasan in situ leach uranium deposits. Uranium One is proud to be a partner in the growth of the Republic of Kazakhstan's uranium mining industry.
  105. 105. Max Petroleum Plc is an independent oil and gas exploration and production company focused in Kazakhstan. The Group operates three onshore blocks, covering 3.4 million acres in the Pre-Caspian Basin.