Nurali Aliyev discusses his work as Deputy Akim of Astana, Kazakhstan, focusing on attracting investment, promoting entrepreneurship, and upgrading transportation infrastructure. Under his leadership, Astana attracted over $772 billion in investments over the past year, a 20% increase over 2014. He established the Astana Invest forum to attract over 3,500 delegates from 56 countries, resulting in $1.7 billion in signed agreements. Transportation upgrades included adding over 350 new buses, bus lanes, and plans for a light rail system to connect the airport and other areas.
Nurali Aliyev on Attracting Investments to Astana and Upgrading its Transport System
1. About what he was able to do for the
development of Astana and why he has
decided to get back to business
2. Nurali Aliyev tells of indicators achieved by
the capital of Kazakhstan over the past year
in the area of attracting investments,
promotion of entrepreneurship, upgrading of
transport system and implementation of
smart-technology, as well as what will be his
new scope of activity after resignation from
the position of the Deputy Akim of Astana
city.
3. Nurali Rakhatovich, as far as we know, in your
former position you were mostly engaged in
enhancement of Astana investment
attractiveness. What results were achieved in
this regard?
In fact, attracting of investment to the capital
was a priority area of my activity. Taking into
account the current global economic situation,
the implementation of large-scale projects with
maximum attracting of investment has become a
new anti-crisis solution.
4. To promote the interests of our capital, I have
visited more than dozens of countries to conduct
hundreds of negotiations. I can note that it was
pleasure to do this. Astana possesses such
advantages as safety, well-developed
infrastructure, good natural environment and
rapidly growing population. These factors have
made a positive impact on the results of my
trips.
As a result, for one year, KZT 772, 7 bln. were
raised to the capital asset of the city, that is
more than the 2014 indicator by 20% and 2013
one - by 41% . Thus, the growth of investment
inflow to the capital is already an economic
trend.
5. The favorable conditions for conduct of
business and establishment of competitive
production within the territory of the
“Astana- new city” Special Economic Zone
with the total area of 7634, 71 ha. As
recently as last year, the investments were
attracted to the SEZ in the amount of KZT
402 bln.
By the way, 2015 was successful the “Astana-
new city” SEZas it was conferred a title of
the “Best SEZ in the Central Asia” according
to the FDI Global Free Zones rating.
6. Astana Invest International Investment Forum was planned as
one of grounds for attracting investors. Did the last year forum
satisfy your expectations?
Any potential investor greets the clearly evident demonstration
of the city’s confidence and opportunities. In the last autumn, on
my proposal, for the first time the Astana Invest – 2015 was
conducted as a wide dialogue business platform. The
participation of 500 delegates from 20 states was planned. The
results have considerably exceeded expectations. More than
3500 people from 56 countries have attended the forum. The
worldwide financial experts from USA, China, Europe, Asia and
the Arab countries have directed their eyes to our capital. 33
memorandums were signed for an overall amount of USD 1,7
bln. Of which, as a result of my personal negotiations, were
signed for the amount of USD 596,6 mln. For the first time the
CNN International - largest media holding - has acted as forum
media partner.
7. How much the capital is attractive for the
Kazakhstani entrepreneurs? Isn’t any
decline observed in the area of small and
medium enterprise due to the global
economic crisis?
8.
9. Conversely. According to the results of 2014, the
share of gross value added by the small and medium
enterprises to the GRP was equal to 61,8%. This is
the best indicator among the regions.
The number of existing SME facilities in Astana has
practically reached the level of 100 thousand,
having increased by 6,4% in 2015. More than
500 new jobs were created in the sector, the number
of employees has increased by 14,3%.
Astana has come out on the top in terms of credit
portfolio value within the framework of the “Road
map – 2020” program. 12 thousand entrepreneurs
have obtained a state support.
The various opportunities are provided to small and
medium enterprises. Thus, about 1000 sales
areas were designated as retail business facilities.
10. As part of support of local production development,
for the first time the Domestic Products Sales Center
was launched in Kazakhstan. Serving as a Deputy
Akim of Astana, I have signed 10 memorandums with
national companies for an overall amount of KZT
102,1 bln.
When summarizing the progress for business support
in the Republic, Timur Kulibayev, the Chairman of
Presidium of the National Chamber of
Entrepreneurs “Atameken” RP has highly
appreciated the enabling environment created in
Astana for business development. He noted that the
best practices accumulated in the capital will be
employed across the entire Republic.
11. The upgrading of transport system is underway in the city.
What is its essence and to which extent it is necessary at the
present day?
The worldwide interest to Astana is growing year by year. The
infrastructure creates the first impression from the city. And the
transport and traffic network are its circulatory system.
Right after my assignment, in cooperation with foreign public
transport specialists we conducted qualitative research of the
capital’s transport system. The research revealed that the
current condition of road infrastructure doesn’t meet
international standards. As a result of in-depth examination of
the transport system, we became aware of substantial hidden
economy, poor service, low traffic capacity, lack of rolling stock,
shortage and depreciation of public transport and, finally, lack of
a unified management system and clear development strategy.
12. Under my leadership, a Transport Network Modernization
Program for the years 2015-2019 was drawn up, which is
designed to develop public transport and transport
planning spheres. Implementation of the Program will
increase transparency of financial flows and quality of
services, improve infrastructure, and will enable
introduction of innovative projects.
Last year was the year of “high-powered work” for the
sphere of public transport of the capital. First, bus fleets
were considerably reequipped: more than 350 buses of
new generation were added, suburban and express routes
were introduced. Personnel were additionally trained.
Secondly, Bus Lanes were added on six roads. As a result,
the waiting intervals were reduced. Taking into account
the climatic conditions, 27 closed bus stops were installed.
Thirdly, as a part of Wi-Fi bus program almost all buses
were equipped with free access to wireless internet for
mobility and comfort of citizens.
13. We faced the task of creation of modern
passenger traffic linear system which would
make a minimum impact on the urban road
network. Having examined the global
experience, we came to the conclusion that LRT
would become a perfect solution for the capital.
This is a Light Rapid Transit system, the route of
which lies through the high-line track above the
ground, therefore the load on the traditional
traffic system is almost eliminated. Besides, the
LRT will ensure the safety, mobility and comfort
of passenger traffic, and essentially reduce the
travel time.
14. The first line will connect such key objects, as
the International Airport of Astana, “EXPO”
specialized exhibition, “Abu-Dhabi Plaza” multi-
functional complex and new railway station.
The project is implemented in partnership with
Beijing State-Owned Assets Management Co.
consortium and Ltd/China Railway International
Group, which have introduced the Light Rapid
Transit system in 25 cities of China and other
metropolitan cities. It is executed at the
expense of long-term financing from China State
Development Bank for the 20-year period with
2,5% annual interest rate.