Kazakhstan Investment Opportunities - Zhambyl region 2014

Zhambyl region is one of
the most attractive regions of
Kazakhstan for direct foreign
investments. The region has
stable developing economy,
growing GRP index, huge
industrial potential and a variety
of investment resources for
foreign investors.
Owing to effective current
policy of investors' rights
protection and efforts to create
favorable conditions, the region
offers investors reliable
investment environment with a
large amount of prospective economics fields.
Updated and advantageous investment environment of Zhambyl
region afforded us to succeed considerably both in homeland and in
foreign investments, that is proved out by interest and existence of
foreign investors from more than 15 countries (Russia, France, Turkey,
China, Czech Republic, UAE, Germany, Japan, etc.).
Zhambyl region is on the way of realization of its real economic
potential and intends to become a place of investment concentration
which will contribute to forming new jobs, technologies and ideas.
Using the advantageous geographical position, resources and
agro-industrial potential, developed and diversified economy and other
competitive advantages of the region, investors can become major
suppliers of export-oriented and high-tech products with high added
value.
Mayor of Zhambyl region
Karim Nasbekovich
Kokrekbaev
Dear investors!

2
CONTENT
About Kazakhstan
Favorable location
The rich natural resources
A Favorable business climate
The Agreement about the promotion and mutual protection of investments
Economic growth
INFORMATION ABOUT THE ZHAMBYL REGION
Transit potential
Economy
Sectors of the Economy
Staff
BENEFITS AND PREFERENCES / INVESTMENT PREFERENCES
STATE SUPPORT MEASURES
INVESTMENT PROJECTS IMPLEMENTED WITH THE PARTICIPATION OF
FOREIGN INVESTORS
INVESTORS SERVICE CENTER
CONDITIONS OF PARTICIPATION OF «NC «SEBC «TARAZ» JSC IN
INVESTMENT PROJECTS
INVESTMENT PROJECTS OF THE ZHAMBYL REGION REQUIRING INVESTMENT
www.dppzhambyl.gov.kz
Entrepreneurship and industrial -
innovative development
department of Zhambyl region
Investors service centre
of Zhambyl region
Zhambyl Taraz str. Tole, 35
Tel/fax: 8 (72 62) 43 89 02, 43 89 03
E-mail: tarazinvest@mail.ru
ZHAMBYL REGION Investors guidebook

3
ABOUT KAZAKHSTAN
Population: 17.2 MM people.
National currency: tenge (KZT).
Exchange rate: KZT-USD 180.87; KZT-EUR 230.21* as of 30.10.2014
Time zone: UTC + 6:00 (Almaty, Astana). Kazakhstan is divided into two
time zones: eastern (basic) & western.
Language: National language is Kazakh, alongside with Kazakh Russian is
used in state organizations and self-governing authorities.
Religion: Currently Kazakhstan is multi-religious country with more than 3
000 active religious associations representing 40 religions. Prevailing
religions - Islam and Christianity.
Administrative-territorial fission
Territory
2,724,900 sq km (1,052,085 sq miles)
The ninth largest country in the world
Second place in the territory of the
Commonwealth Independent States
Atyrau
Aktau
Uralsk
Aktobe
Kostanay
ASTANA
Petropavlovsk
Ust-Kamenogorsk
Karaganda
Pavlodar
Almaty
TaldikorganBaikonur
Kizilorda
Taraz
Shymkent

4
FAVORABLE LOCATION
Kazakhstan is located in the heart of the Eurasian continent, through the
territory of Kazakhstan was once the Great Silk Road. The main
transcontinental routes connecting Asia-Pacific region with the Middle
East, and Europe pass through Kazakhstan. The three countries of the
"four" BRIC are near Kazakhstan: Russia, China and India.
Gate to the Russian and European markets
1. Strategic location between the European and Asian business centers
2. The main transit zone in the region
3. Surrounded by a rapidly growing markets -China and Russia
4. 3 of 4 Asian rail corridor come through Kazakhstan
Gateway to China, India and Southeast Asia
Europe Russia
Kazakhstan
China
The middle east
India
Belarus
Customs Union advantages
1. Unified custom area;
2. Unified foreign trade policy (FTP);
3. Unified customs regulations & Code;
4. Free good movement inside customs area.

5
THE RICH NATURAL RESOURCES
One of the principal assets of Kazakhstan - is its natural resources.
Kazakhstan is ranked 6th in the world in terms of mineral resources.
Of the 110 elements of the periodic table of chemical elements in
Kazakhstan has 99 members, 70 explored, 60 extracted and used: oil,
gas, uranium, zinc, tungsten, Borrego, silver, lead, chromite, copper,
fluorides, molybdenum and gold.
Mineral resources of the Republic of Kazakhstan consists of 5004
deposits, the forecasted cost of which is about 46 billion U.S. dollars.
Kazakhstan is moved linearly in the
direction of facilitating the procedures
associated with the development of the
business.
Evidence of a favorable business
climate is an international rating of the
World Bank and the International
Finance Corporation Doing Business,
which allows to estimate the legislation
dealing with the regulation of the
business and is used in 183 countries.
A FAVORABLE BUSINESS CLIMATE
Rating of Doing Business
Global Competitiveness Index
2013-2014
50place
REGION Europe & Central Asia
INCOME Upper middle income
CATEGORY
POPULATION 16 797 459
GNI
PER CAPITA 9 730
(US$)
CITY Almaty
COVERED
DOING BUSINESS
2014 RANK
DOING BUSINESS
2013 RANK***
CHANGE
IN RANK
DOING BUSINESS
2014 DTF**
(% POINTS)
DOING BUSINESS
2013 DTF**
(% POINTS)
CHANGE
IN DTF**
(% POINTS)
50 53 3
62,65 62,22 0,43
TOPICS DB 2014 Rank DB 2013 Rank
Registering Property 18 27
Protecting Investors 22 21
Paying Taxes 18 18
Enforcing Contracts 27 26
Starting a Business 30 27
Rankings

6
AGREEMENT ABOUT THE PROMOTION AND
MUTUAL PROTECTION OF INVESTMENTS
Bilateral agreement
Multilateral agreement
Euroasian economic community
ECONOMIC GROWTH
Thanks to smart policy and attracting FDI, the Kazakh economy is growing at a
steady pace. Over the past decade, GDP grew by more than 7-fold (from 24.6
billion to 171 billion dollars).
The dynamics of investments attraction over the millions of USD.
Investments promotion dynamics, MM USD
1. Austria 17. Iran 33. Serbia
2. Azerbaijan 18. Spain 34. Slovakia
3. Armenia 19.Italy 35. USA
4. Afghanistan 20. Qatar 36. Tajikistan
5. Belgium-Luxembourg Union 21. China 37. Turkey
6. Bulgaria 22. Kuwait 38. Russia
7. UK 23. Kyrgyzstan 39. Uzbekistan
8. Hungary 24. Latvia 40. Ukraine
9. Vietnam 25. Lithuania 41. Finland
10.Germany 26. Macedonia 42. France
11. Greeke 27. Malaysia 43. Czech Republic
12. Georgia 28. Mongolia 44. Switzerland
13. Egypt 29. Netherlands 45. Swedan
14. Israel 30. Pakistan 46. Estonia
15. India 31. Poland 47. South Korea
16. Jordan 32. Romania
171 billion dollars
30
20
15
10
5
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1,3
0,7 1,0
1,7 2,1
1,2
1,9
2,8
4,6 4,1 4,6
8,3
6,6
10,6
18,5
19,8
19 19
21
22,5
2013
33,3

7
Geopolitical position: Zhambyl oblast is located in the south-eastern part of
Kazakhstan and borders on the South Kazakhstan and Almaty region (in the
west and east), on the Karaganda region (in the north), on Kyrgyzstan (in the
south).
Administrative divisions: The territory of the region is 144.3 thousand sq. km
(5.3% of the country's territory), which has 10 districts, 1 city of regional
subordination – Taraz, 3 towns of regional subordination – Karatau, Zhanatas,
Shu and 373 villages.The administrative center is the city ofTaraz.
Population: Is 1 092.1 thous. People as of 01.08.2014, 60% are village
habitants. Population consists of more than 100 nationalities and nations.
Average population density is 7.6.
Natural and climatic conditions: The climate of the region is continental. In
January the average temperature in the plains is -15 °C, in the foothills – 6-8 °C,
in July +16 °C and +24/+ 25 °C respectively. Annual precipitation in the plains is
up to 300 mm, in the foothills and mountains – from 500-700 to 1 000 mm.
Growing period in the foothills and plains is 205-225 days.
Atyrau
Aktau
Uralsk
Aktobe
Kostanay
ASTANA
Petropavlovsk
Ust-Kamenogorsk
Karaganda
Pavlodar
Almaty
TaldikorganBaikonur
Kizilorda Zhambylskiy
area
Karaganda egion
Almaty
region
of South
Kazakhstan
region
Moyinkum area
Sarysu area
Talas area
Baizak area
Zhualynskiy
area
Ryskulov
area
Merkenskiy
area
Shuskiy
area
Kordai
area
Zhanatas
Karatau
Moyinkum
Assa
Sarykemer
TarazTarazTaraz Kulan
Merke
Tole bi
Shu
Kordai
Bauirzhan Momyshuly
K Y R G Y Z S T A N
TarazTarazTaraz
Shymkent

8
Natural resources: The region is a unique base of phosphorite and fluorspar
resources, it is rich in non-ferrous metals (copper, gold, silver, lead, zinc, etc.),
barite, coal, facing, ornamental and technical stones, construction materials
(asbestos, cement and expanded clay materials, gypsum, etc.), natural gas.
In the region there are about 71.9% of balance reserves of phosphorite (the
largest reserves in the CIS), 68% of fluorspar (one of the leading places in the
world by reserves of fluorspar), 65.1% of quartzite, 8.8% of gold, 3% of copper,
0.7% of uranium. Stocks of fodder and technical salt make up to 10 million tons.
There are the largest deposits of quartzite in the country, as well as titanium-
magnetite deposits.
3% of the balance gas reserves of Kazakhstan, explored reserves -
45 billion m3, projected - 89 billion m3
15.4% of balance reserves of lead of RK and 3.4% of zinc reserves,
probable reserves - 3.8 million tons
40 fields of with stocks 4 520,9 thousand м3/d. (the 3rd place in the country
by quantity of explored reserves)
Name of minerals Mineral reserves
Phosphorites
Barite
Fluorspar (fluorite)
Uranium
Gas
Coal
Gold
Lead and zinc
Copper
Tin
Rock salt
Mineral salts
Gypsum and anhydrite
Rare earth elements
72% of balance reserves of phosphorite of RK, total reserves -
3 817.4 million tons
Barite ore reserves - 12.0 million tons
80.6% of balance reserves of fluorspar of RK, total ore reserves -
24.9 million tons, or 7 million tons of fluorite
Total reserves of uranium - 8.0 thousand tons
21.1% of balance coal reserves of Kazakhstan, total of the balance
reserves - 6.75 million tons, projected - 4.3 billion tons
8.2% of balance and 15.4% of predicted gold reserves of Kazakhstan,
total reserves and predicted resources are estimated at 300 - 350 tons
3% of balance and 9.7% of probable reserves of copper, total reserves
and expected resources are 1.75 million tons
34.3% of forecasted reserves of Kazakhstan, total author reserves -
12 thousand tons, forecasted - 101 thousand tons
Forecasted reserves of salt - 2.6 billion tons
Balance and probable reserves - 15.0 million tons
25.8% of balance gypsum reserves of RK, total of balance reserves of
gypsum and anhydrite - 50.3 million tons
germanium, indium, cadmium, yttrium, ytterbium, elements of cerium
and yttrium groups
Underground waters

9
TRANSIT POTENTIAL
Kulsari
Atyrau
Aktau
Uralsk
Aktobe
Khromtau
Alga
Kandyagash
Emba
Shalkar
Aral
Baikonur
Kizilorda
Turkistan
Zhanatas
Shymkent
Taraz
Aris
Lenger
Saryagash
Chardara
Zhetysai
Shu
Kaskelen
Almaty
Kapchagai
Taldikorgan
Ushtobe
Tekeli
Balkhash Ucharal
Ayagoz
Shar
Semipalatinsk
Ust-Kamenogorsk
ZyryanovskRidder
Shemonaiha
Kurchatov
Karaganda
Karazhal
Priosersk
Zheskazgan
Abay
Arkalyk
Zhitikara
Lissakovsk
Kostanay
Yesil
Derzhavinsk
Atbasar
ASTANAASTANAASTANA
Akkol
Makinsk
Shchuchinsk
Kokshetau
Taiynsha
Petropavlovsk
Mamliutka Bulaevo
Yereimentau
Stepnogorsk Aksu
Pavlodar
Ekibastuz
Rudnyi
Karatau
Ташкент
Орск
Челябинск
Курган Омск
Омск
Considering the advantageous geographical location, the Zhambyl region has
high transit potential due to the location of Kazakhstan in the heart of the
Eurasian continent and passing traffic from the countries of CentralAsia.
There are 50 railway stations in Zhamby region, 25 railway traffics w/ 50 routes
cross it, they connect Zhambyl region with all regions of Kazakhstan, Russia (7
r/w traffics), Kyrgyz Republic (6 r/w traffics) & Uzbekistan (1 r/w traffic).
Transit outlook for the region is increasing significantly in the light of the
international railway project "TRACECA" and construction of the road corridor
"Western Europe - Western China", which create favorable conditions for the
formation of a powerful hub of international importance.
Carried freight index for 2013 was 88.4 MM tons, that exceeds to 9.9% the
volume of 2012 (80.4 MM tons). Freight turnover was 2 726.5 MM t/km, that
exceeds to 10.0% the volume of 2012 (2 477.8 MM t/km).
THE SCHEME OF RAILWAY NETWORK

10 ZHAMBYL REGION Investors guidebook
INTERNATIONAL RAILWAY PROJECT "TRACECA"
INTERNATIONAL AUTOMOBILE CORRIDOR "WESTERN EUROPE-WESTERN CHINA"
Sankt - Petersburg
Moscow
Aktobe
Almaty
Shymkent
Urumqi
Lanzhou
Lianyungang
TRANSIT POTENTIAL
Extent on the territory of Kazakhstan – 2787 km.
Extent on the territory of the region – 495 km.

11ZHAMBYL REGION Investors guidebook
ECONOMY
Regional gross regional product (GRP) per head in 2013 was 817.6 thous. KZT
and exceeded by 5.9 times since 2004, exceeded to 13.8% compared to 2012.
Structural regional GRP breakdown in 2013: 17.5% is industry, 9.6% -
agriculture, 12.5% - transport & communications, 12.6% - construction, 9.9% -
trade, 37.9% - misc.Agricultural sector prevails in 7 rural areas, industry prevails
in rest 3 districts.
Dynamics of gross regional product of the region, mln. of USD
4 500,0
4 000,0
3 500,0
3 000,0
2 500,0
2 000,0
1 500,0
1 000,0
0,0
500,0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
807,4 927,0
1 139,2
1 298,6
1 800,7
2 194,6
2 357,4 3 016,2
4 168,2
4 938,8

GRP ZHAMBYL REGION IN 2013
During last 10 years the GRP volume of Zhambyl region increased in 6.4 times
and in 2013 it was 880.7 bil. KZT.
Zhambyl region's prevail in good producing brunches - 39.7% (agriculture,
forestry and fishery - 9.6%, Industry - 17.5%, construction - 12.6%). The majority
of processing industry is Chemical industry (2013 proportion in Processing -
29.6%), food industry (proportion - 29.0%), manufacturing of other non-mineral
products (proportion - 13.4%).
Retail turnover volume in 2013 was 151.6 bln KZT (122.3% compared to 2012),
meanwhile wholesale turnover in 2013 was 158.5 bln KZT.
Regional external turnover was 600.5 MM USD, increased by 1.4 times,
including export - 175.6 MM USD (in 1.2 times), import - 424.9 MM USD (in 1.4
times).
Main regional trade partners are CIS countries (45.8% of overall external
turnover) & non-CIS countries (54.2%). Good buyers during reported period
were Switzerland (24% of overall export), Kyrgyzstan (19.3%), China (18.7%),
Turkmenia (10.0%), Azerbaijan (7.7%), Turkey (6%), Uzbekistan (5.5%), others
(8.8%). Chemicals, mineral fertilizers, ТОПС, barite concentrates, limestone,
etc. are exported there.
Construction materials (cement, granite goods), special footwear, wearing
apparel, PE & drip irrigation pipes, leather goods, bed flowers, etc. are traded
within Kazakhstan.
ECONOMY
Agriculture
10%
Industry
17%
Construction
13%
Trade
10%
Transport
and
communications
12%
Other
38%

INVESTMENT IN FIXED ASSETS, million of USD
Volume of investments to capital stock in 2013 was 248.8 bln KZT or 155.9%
compared to 2012.
Public funding investments was 44.5 bln KZT, or 14% less than previous year's
index.Total proportion of public funding to overall investment is 17.9%.
Total net worth was 37.6 bln KZT, overall investment rate is 15.1%.
Bank loans in overall investments are 65.9% or 164.0 bln KZT, including foreign
banks – 156.7 bln KZT.
Volume of equity contribution and other loans was 2.7 bln KZT, overall
investment rate is 1.1%.
Majority of investment composition of capital stock as per company business
activity is in transportation, warehousing (66.2%) & industry (17.6%). The other
types of business activities have from 0.1% up to 8% from overall investments
to capital stock.
ECONOMY
996,7
938,9
733,6
1 374,1
2013 г.
894,7
1st half of
2014
2012 г.2011 г.2010 г.
2 000 000

SECTORS OF THE ECONOMY
Main industrial branches are mining, processing (chemical, food, metallurgy,
construction material manufacture and construction), which are represented by
more than 300 large and average Companies. Processing enterprises has
74.7% of Industry.
Chemical industry
Chemical branch is the most developed branch of Zhambyl region: its percentage
in Processing Industry of 2013 was 29.6%, percentage in overall industry –
22.1%. The basis for chemical sector is producing of phosphorus-bearing raw
and и producing phosphorus-containing products, including mineral fertilizers.
“Kazphosphate” JSC is the Kazakhstan Chemical Industry leader and main
facilities are located in Zhambyl region.
Region started to execute large investment Projects: “EuroChem Fertilizers” LLP
(Russia) related to production of mineral fertilizers, “Taraz Chemical park”
Special Economic Zone is being created with participation of «SWF «SAMRUK-
KAZYNA» JSC, that plans the construction of more than 16 chemical plants at
cost of up to 390 bln KZT with estimated production rate in 2017 (initial) up to 890
thous.Tons at cost of 101 bln KZT.
KAZFOSFAT

Agricultural sector
Natural and climatic conditions allow
growing grains, technical, gourds, feeds,
vegetables & fruits. Availability of spread
native grasslands (more than 3 MM ha)
contributes to development of cattle, sheep
& horse breeding.
Regional number of farms is 15 360 ea.
Agricultural land areas:
- native grasslands:
- more than 3 MM ha
Agricultural lands:
- 4 078.9 thous. ha, including
- ploughland: 757.6 thous. ha
- prernnial plantings: 4.2 thous. ha
- haylands: 106.7 thous. ha
- grasslands: 3 209.4 thous. ha
Plant growing and breeding have quite similar percentage in agricultural
structure: 49.7 % & 50.3% correspondingly.
Total agricultural output in 2013 was 127.3 bln KZT. Volume index was 110.5%.
Breeding is characterized by presence of numerous and growing livestock of
cattle, sheep, goats, horses, developed poultry farming.
Agri-food sector includes following segments: production of meat, milk, fruit &
vegetable products, sugar.
Breeding livestock as of
01.08.2014 was:
- cattle: 300.1 thous. heads;
- cows: 126.0 thous. heads;
- sheep & goats: 2 326.6 thous.
heads;
- pigs: above 32.1 thous. heads;
- horses: up to 93.9 thous. heads;
- poultry: 1 141.1 thous. heads;
- camels: up to 6 thous. heads.

Construction material production
Regional construction materials industry is integrated branch
that include several branches, namely production of cement,
marble & granite goods, dry building mixes, construction
bricks and block, metalware, ferroconcrete & plastic
products.
During last years, regional construction industry shows high
growth rates, construction participation in GRP in 2013 was
12.6%. 4.8% of regional working population are occupied in construction.
Region has about 200 mineral deposits of construction raw, including:
- construction materials: gypsum and anhydrite, cement,
expanded clay, quartz, asbestos, talc, mica, etc.
- sheeting, ornamental & technical stones: granite,
marble, limestone, calcedony, abrasive raw, etc.
Power economics
Currently Zhambyl region pays much attention to execution
of renewable energy source (RES) Projects, ensuring Zhambyl region is
one of the leaders in development of alternative energy in Republic. Hence the
alternative energy source role in regional power balance permanently increases
that contribute to development of greentech as separate branch.
Currently Zhambyl region executes and plans to execute 12 RES investment
projects, that contain construction and operation of hydro-, wind & sun power
stations of different capacity from 7 to 300 МWt.
Construction of RES facilities is done with participation of national & foreign
investors like Russian Federation, France, Netherlands, China, etc. region has
large land, high wind & sun potential for development of power branch.

Mining complex
Mining complex is presented by enterprises for the extraction and processing of
gold, barite ore, manganese ore and gas.
As of year-end 2013, the volume of regional industry was 233.9 bil. KZT, actual
growth was 107.4%.
Mining industry volume was 18.8 billion KZT or 116.5% compared to previous
year. Mining participation rate in overall industrial output – 8.0 %.
Light industry
Light industry of the region consists mainly of wool and leather production, and
goods made of them.At the same time, favorable conditions for the development
of fine-fleeced sheep breeding, Karakul breeding and availability of state support
for the industry allow to develop new productions of yarn and cloth, footwear
products and leather accessories.
Food industry
Food industry is one of the most promising sectors, due to the high concentration
of feedstock production and processing capacities in suburban areas,
ecologically pure products.

Depths of our region are rich in other resources, the most important of them are
noble metals like gold, silver and nonferrous metals - copper, zinc, lead; non-
metals - barytes, coal & mineral salts.
Great asset are gas fields.
Promising deposits of lead-zinc mineralization discovered in Shu-Iliysk region.
Salt deposits are of industrial interest (cattle & table salt reserved are estimated
at the amount of 15 MM tons).
Region is the third in Republic in number of explored subsurface water resources
and one of the most provided with fresh water (38 fields of fresh and 2 fields of
therapeutic mineral water revealed).
Region has two quartzite deposits (Makbel & Zhanatas), total stock of those
deposits has 65.1% of overall national balance.
Based on the titanium-magnetite ore of Tymlai field, there is a the possibility of
iron and titanium concentrate & grained iron production.
Also fluorite deposits can be transferred to human activity (fluorspar, after its
processing you can start the production of fluorine, artificial cryolite for aluminum
electrochemical production).

Small and medium business
Business has dynamically developing business: small and medium-sized
business entities participate in all economics branches.Trade & services prevail
As of October 1, 2014 there are 42 887 small and medium-sized business
entities in region, including small business legal entities - 1 623ea, medium-
sized ones – 108ea, private entrepreneurs - 25 774ea, farms - 15 382ea.
Number of active small business entities in 2013 was 41 863 ea, 23 465 was in
2003. Number of small business workers in 2013 was 119.4 thous. persons.
Production rate of small business entities increased in 10 times compared to
2003 & was 234.5 bln KZT.
Culture
National network of Culture and Art facilities includes: 2 theatres, 1 concert
organizations, 7 museums, regional cinema center, 285 libraries, 199
community centers & clubs, 1 cinema, 10 “Video mobile” car clubs, 23 movie
devices, 12 archives, regional Center of FolkArts & History-Cultural memorials'
preservation and reinstatement Office.
Sports & Health
Health network consists of 57 state medical enterprises, including 24 - hospitals,
2 - perinatal centers, 11 - early treatment clinics, 2 spa & recreation centers, 12
outpatients centers, 6 misc.

Tourism
The region has great potential for the development of tourism, both internal and
international. The Great Silk Road passed through it, on the path of which there
are interesting historical and cultural monuments.
There are 26 tourist firms, 14 hotel units and 5 sanatoria and health resorts of
physiotherapy in the region, which represent a wide range of services for
treatment and rest, both local and foreign tourists.
Historical and cultural tourism
Through the region took part of the Great Silk Road, the path of which there are
monuments of history and culture. Just Zhambyl region has 2,060 historical and
cultural monuments, including monuments of archeology, history, architecture
and art.
Eco-tourism
The region is characterized by a range of natural habitats, varied flora and fauna,
scenic mountain terrain, the presence of 3 unique nature reserves.
The active forms of tourism
Perhaps the development of water sports, fishing, hunting, rally, motocross and
other extreme sports and active.
Transit tourism
The region extends much of the international transit corridor «Western Europe -
Western China» (495 km) along which is planned to build 8 roadside service.

The region has a variety of flora and fauna. The flora consists of more than three
thousand species, of which 50 are high-value species listed in the Red Book. In
the region there are more than 158 species of wild animals, more than 260
species of birds. In the desert sands are found gophers, jerboa, hares, gazelles,
deer, antelopes, in the mountains there are mountain goats, wild rams, bears,
snow leopards, wolves, foxes, korsaks, badgers, weasels, etc.
The total area of hunting land is 13,900 hectares, where inhabit over 40 species
of animals. Fisheries Fund, covering an area of 28,000 hectares, including 59
reservoirs suitable for fishing.
Attractive climate, beautiful nature with an unique natural landscapes, diverse
flora and fauna, ancient history, rich cultural heritage and vast areas can
successfully develop the historical-cultural, eco-tourism, hunting, fishing and
other active forms of tourism.

Region has considerable innovative potential, the basis of which is HEI scientific
base, branch scientific-research institutions & infrastructure of scientific-
technical innovation.
Zhambyl region has 4 HEI, appx 27 thous. are studying herein. Technical & profile
educational entities' number is 49, total number of their students is 32 320
persons.
Economically Active Population,
thous. pers.
Unemployed citizen at labor
open market - thous. pers.
A STAFF
The structure of the economically active
population, thous. pers.
2012 2013 on 01.07.2014 у.
474,8 470,7 461
32,1 30,1 28,5
0
50
100
150
200
250
300
350
400
450
500

BENEFITS AND PREFERENCES
Investment preferences
Investment advantages are provided as per activity priority list approved by RoK
GovernmentACT№ 436 dd May 8, 2003.
In compliance with Law “About investments” Investor can be provided
with:
- release from custom fees payment while importing of equipment and
components required for investment Project execution;
- State land grants: land, buildings, structures, machinery & equipment,
computation, measuring and controller tools & devices, transport vehicles
(besides light vehicles), industrial and household inventory.
- tax exemptions for up to 7 years for strategic investment Projects (land
tax 0%, property tax 0%);
- Industrial preferences for strategic investment Projects for settlements
with low level of social-economic development (reimbursement or paying off the
part of gas/electricity cost, land allotment purchase, building & structure
purchase (construction).
- tax preferences: decreasing of corporate income tax by 100%,
application of Zero coefficient to land tax rates, property tax - 0% for taxation
base.
- Investment grant: reimbursement of up to 30% from actual construction
costs & equipment purchase without VAT& excise duties
INVESTOR GUARANTEES IN KAZAKHSTAN
Investor legal protection guarantee
- complete and absolute protection of Investors' right and interests
- right for compensation of harm from State Acts, Laws and officers'
activities
-Stability of correspondent Contract terms between Investors and State
Income usage guarantees
- The right to use incomes after payment of all the taxes & obligatory
budget payments in its own discretion
TRANSPARENCY OF GOVERNMENT ACTIONS RELATED TO INVESTORS
INVESTOR RIGHTS GUARANTEE IN CASE OF NATIONALIZATION AND
REQUISITION
Investor protection - place among countries as per “Doing Business”.22nd 185
Land allotment for 49 years term if any resident enterprises found.
Up to 100% equity of foreign investors

INDUSTRIAL ZONE
State support measures assumed for Industrial area participants:
1) Priority consideration of requests for participation in “2020 Business
Roadmap” (funding of interest rate and partial assurance for bank loans)
submitted by Companies that execute Projects at Industrial area;
2) Providing to industrial-innovative Companies of land without auction for
execution of Industrial and innovative Projects;
3) Free of charge submission of land allotment to private property of those
investors, who executed Investment Projects as per Industrial development map
(State Program ofAccelerated Industrial and Innovative Development);
4) provision of IAparticipants with utilities & infrastructure
5) training and further training of qualified manpower for IAparticipants;
6) priority consideration of requests for participation in Projects, being executed
at IA, in provision of confessional loan & financial leasing using the funds of
regional development institutions, “Damu-regions 2” Program and local budget.
«Taraz» industrial area
Initiator: Zhambyl regionalAkimat
Territory: 40 ha
Location: Zhambyl region, Taraz
Specialization: MSW management, production of construction materials &
vegetables
Financing amount:
Appx 18 675.7 MM KZT, including:
- republican budget funds: 2 500 MM KZT(infrastructure construction)
- private equity: 16175.7 MM KZT (creation of manufactures at industrial
area territory)
Planned Projects:
- MSW collection center and landfill reclamation;
- biowaste recycling & electricity generation;
- greenhouse;
- tire & other rubber recycling;
- metal tile roofing & corrugating slating production;
- floor cloth issue;
- polymeric sand good production;
- production of PE film & plastic goods.
Infrastructure cost:
12 500 MM KZT (road, overhead power lines, heat supply, water feed,
gas supply, sewerage)

INDUSTRIAL ZONE
«Talas» industrial area
Initiator: Zhambyl regionalAkimat
Territory: 20 ha
Location: Zhambyl region, Talas district, Tamdy rural district (6 km away from
Karatau)
Specialization: production of construction materials, local manufacture support
Financing amount:
Appx 614 MM KZT, including:
- republican budget funds: 194 MM KZT(infrastructure construction)
- private equity: 420 MM KZT (creation of manufactures at industrial area
territory)
Planned Projects:
- storage container manufacture;
- coverall & protective equipment manufacture;
- tapestry brick production;
- lime production.

BENEFITS AND PREFERENCES / Investment preferences
Benefits for members of Special Economic Zones
Tax privileges
THE PROPERTY TAX,
THE EARTH AND
TRANSPORT OF
within 10 years
from the moment of
Customs preferences
Free customs area
Equipment import
VAT AND
CUSTOMS
DUTIES OF
Within the SEZ:
- the “one-stop” principle is used in providing public services;
- the procedure of a free customs zone acts;
- lands are provided with infrastructure objects fully or partially
by the budget;
- issuing permits to employ foreign labor is performed in a simplified
manner.
- the participants of SEZ are provided with tax privileges.
Access to ready infrastructure
Electricity
Water supply
Communication lines
Railway and
automobile ways
Sewerage
Thermal networks
Gas supply
THE DECREASE OF THE
CALCULATED CORPORATE
INCOME TAX
100 %

MEASURES OF THE STATE SUPPORT
Standard and legal base of investment activity in Kazakhstan.
Improving, remaining stable in the main thing - in the accurately expressed
orientation on support of the business focused on an investment of financial
means in various sectors of economy.
The state actively carries out support of investment initiatives within which
assistance in allocation of the land plots under building of new objects,
construction of industrial infrastructure at the expense of public funds, joint
financing of investment projects, granting grants, preferences of investors (tax,
customs privileges) is rendered
Measures of state support for entities of industrial-innovation activity
1. financing, including co-financing of projects, lease financing;
2. provision of warranties and guarantees on loans;
3. lending by financial institutions;
4. subsidize interest rates on loans granted by financial institutions and the
coupon rate on the bonds;
5. implementation of investments in share capital;
6. guaranteed order;
7. providing innovation grants;
8. providing qualified human resources;
9. provision of engineering and communication infrastructure;
10. provision of lands and mineral rights;
11. support in the domestic market;
12. attraction of foreign investment;
13. development and promotion of export of domestic processed goods and
services.

Government support in the framework of the
Program "Business Road Map 2020"
The Program involves state support for projects realization in the non-
commodity sectors of the economy according to the priority directions.
Subsidizing the interest rate on bank loans
Subsidizing the interest rate of the Bank is provided for new loans issued for the
implementation of new investment projects as well as projects designed to
modernize and expand production. The amount of loan(s) the interest rate of
which is subsidized may not exceed KZT 3 billion for one borrower. Subsidy term
ranges from 1 to 3 years with the possibility of further prolongation for up to 10
years. The applicant must provide the involvement of his own funds in the
implementation of the project (not less than 15% of the total cost of the project).
Interest rate subsidy can only be carried out for bank loans with interest rate of
no more than 14%, of which 7% by means of a program participant, and 7% -
compensated by the state. Subsidizing can be also applied to loans with a
variable interest rate, but in the case of excess of remuneration interest rate
above the limit values set out in the Program, operation of the Subsidy Treaty on
the loan is terminated.
Guarantees for Bank loans
The warranty applies only to loans issued for new projects realization, as well as
ongoing projects aimed at modernization and expansion of production. The
amount of guaranteed loans can not exceed KZT 3 billion for one borrower. The
amount of the guarantee can not exceed 50% of the loan amount.
Guaranteeing can not be applied to loans issued to finance working capital,
except in cases when the funding of working capital is carried out within the
credit for the purchase and/or improvement of fixed assets, but not more than
20% of the loan amount. The applicant must provide the involvement of his own
funds in the implementation of the project (not less than 15% of the total cost of
the project). Interest rate of the guaranteed loans can not be higher than 14%.
Cost of the guarantee, which the Program Coordinator pays to the financial
agent at the local level, is 20% of the guarantee amount.
Development of production (industrial) infrastructure
Development of production (industrial) infrastructure will include introduction of
the lacking infrastructure and can be implemented for projects aimed at
modernization and expansion of production facilities, both for specific projects
individually and within the organization of industrial sites.Allocation of funds can
be directed only to the construction and reconstruction of the following
infrastructure: roads, sewerage, gasification, water lines, steam pipes, heating,
water supply, railway siding, installation of telephones, electric substations,
power lines.
Introduction of the missing infrastructure can be directed to several projects.
The cost of construction (reconstruction) of the infrastructure shall not exceed
50% of the project cost in case of application of infrastructure to a single
project.

Program of the development and export
promotion "Export - 2020"
Program target is complex support of export-
oriented and active enterprises that export
non-energy goods for volume increasing &
expansion of Kazakhstan goods marketing
area.
Program is assigned for support provision to
national small & medium-size enterprises,
active and potential exporters of processing
sector.
Export service support.
Information & analytical support of exporters, promotion of native trademarks to
external markets, training of enterprise specialists in the field of export activities,
promotion of goods to humanitarian supplies market.
Financial support of business people, compensation of 50% export expenses
(registration of trademarks, product certification, etc.)
Program execution is done along following directions:
1. Partner & buyer search
2. Promotion of goods to humanitarian supplies market:
Compilation of Buyers' database, evaluation of product compliance with Buyers'
requirements
3. Sensible export routes:
Calculation of sensible export route logistics
4. Target information sharing with foreign buyers
Worldwide distribution of annual export product catalogue. Placement in
specialized foreign catalogues
5. Information support
“Exporter's guide” instruction, Export Countries Guide, promotion of Kazakhstan
companies at international bids.
6. Exporters grants – account cost compensation – expenditures related to
product registration overseas
7. Trade financing, loaning and assurance.

INVESTMENT PROJECTS INVOLVING FOREIGN INVESTORS
Name of foreign investors
The country
of the
investor
Name of the project
total sum
of the project,
mln. U.S.dollars
Construction of a chemical plant for the
production of mineral fertilizers
Construction of a cement plant with a capacity
of 1.2 million tons / year
Organization of production of sodium
hexametaphosphate and food fosfat,
capacity 4,000 tons / year
Processing of meat and production of meat
product standard "Halal»
Issue pure wool worsted yarn
Processing plant oilseeds
Organization assembly shunting locomotives
Extraction and production of construction
materials
Construction of wind power plants
"Shokpar»
"Shokpar-2»
«Taraz»
The construction of wind power plants
"Zhanatas" and "Shokpar", with a total
capacity of 300 MW
Construction of a cascade of small
hydropower plants on the river Merke
capacity of 19.8 MW / h
Construction of solar power plants
Processing plant liquorice
Construction of solar power plants
HIC "EuroChem”
VICAT Group Company
Fosfa a.s. company
Central Asia Green Power
COKEY Systems Co., Ltd.
LLP «Ontystyk
Halal Tagyamdar»
LLP «Kaz-Ir-Agro»
United Green
ООО "GPMI”
LLP «Knauff-gypsum»
Energy Emissions BV
Energy Emissions BV
Fonroche Renewable
Energies
Energy Emissions BV
«Sevrim Srl» Ltd
Tsiyan locomotive-building
company CSR Corporation
2 425
238
3,4
550
5,2
50
600
13,8
5,7
4
33,4
300
108
700
13,813,8
4,4
-

Investor Service Centre (ISC) was established in Akimat Zhambyl region in
order to provide service and support to potential investors and facilitate
investment in the region's economy.
The main activity is the ISC:
1. Inform potential investors about investment opportunities in the region;
2. Search for potential investors and prospective projects for implementation
in the region;
3. Organization of meetings and negotiations with potential investors interested
companies, public authorities and others;
4. Search for local partners for investment projects;
5. Assist in resolving potential administrative obstacles.
INVESTOR SERVICE CENTRE
Investor Service Centre
Address: RK, Zhambyl, Taraz, st.Tole, 35, 4th floor, office. 404
Tel: + 7 (72 62) 43 89 02, 43 89 03
Fax: + 7 (72 62) 43 89 02
E-mail: tarazinvest@mail.ru
INVESTOR SERVICE
CENTRE

Partnership share of
Company in the equity
capital of joint venture
-The maximum share in the project - 49%
(in exceptional cases, more than 49% of the
participation in own assets of Company,
or by decision of the Board of Directors of the Company).
Controlling the financial
resources of the project
and the overall monitoring
of the project
implementation
-The Company has the right to introduct its
representatives in the Board of Directors - at least
1/3 of the total amount (taking into account that
the other 1/3 should consist of independent directors).
- If a subsidiary organization/investment project is
formed as LLP, Company must create
Supervisory Board.
- Maintaining Financial director, with
enhanced powers.
Conditions of
participation of the
Company in the Project
by cash
- Participation of potential partner in the Project by
cash or with property (intellectual property assets
relating to the proposed business) with value of not
less than 51% of the funds invested by the Company;
- The maximum amount of participation of the
Company by cash - 10 million USD.
Participation in own
subsidiary organizations/
reorganization
In the case of presence of financial problems in subsidiary
organization, Company in order to bring them in a
competitive environment:
- Increase the efficiency of their financial and economic
activities;
- Increase the return on assets, with the payback period
not exceeding 10 years;
Terms and conditions of
withdrawal from
the project
-The Company withdraw from the equity capital
of the joint venture no more than 10 years;
- Retire with taking into account the time value of
money with fixed discount rate or market value;
Item Conditions
CONDITIONS OF PARTICIPATION OF «NC «SEBC «TARAZ» JSC
IN INVESTMENT PROJECTS

INVESTMENT PROJECTS OF THE
ZHAMBYL REGION
REQUIRING INVESTMENT

INDUSTRIAL ZONE
THE AGROPROCESSING LOGISTIC CENTER "TARAZ"
The purpose of the project: Creation of
an industrial zone with placement about
20 enterprises for deep processing of
agricultural production
Initiator of the project: Akimat of the
Zhambyl region
Capacity: processing to 1 million tons of agricultural production/year
Market: Kazakhstan, Russia, Belarus, CentralAsia, European Union
Total cost of the project: $488 million
Necessary investments:
private investments - $390 million (construction of processing plants)
Participation of the initiator: $98 million (construction of industrial
infrastructure)
Location: Zhambyl region,Taraz
Raw materials: Suppliers of agricultural production are located not further than
250 km in Zhambyl and Southern Kazakhstan areas of Kazakhstan, the Talas
area of Kyrgyzstan and the Fergana area of Uzbekistan
Current status of the project : The land
plot under construction of an industrial
zone (370 hectares) was allocated, the
feasibility study was developed, there is a
state. examination
Possible measures of the state
support: Infrastructure construction,
subsidizing of an interest rate for the
credits of banks, guaranteeing loans, joint
financing

SPECIAL ECONOMIC ZONE "CHEMICAL PARK "TARAZ"
The purpose of the project: creation of a special economic zone, with
placement of 16 enterprises for processing of local raw materials and production
of export-oriented chemical production with high added cost
Capacity:
- 25 units of chemical production, including 8 innovative;
- total production capacity is more than 2 million tons / year
Market: Kazakhstan, CIS and foreign countries
Initiator of the project: «SWF «Samruk-Kazyna» JSC
Total cost of the project: $2 687 million
Participation of the initiator:
public funds - $107 million (construction of infrastructure of SEZ)
Necessary investments:
private investments - $2 580 million (construction of plants in SEZ territory)
Project location: Shu area
Raw materials: minerals of the region, natural gas of Zhambyl region, own
production, imports
Current status of the project: Presidential Decree was issued on the
establishment of SEZ "Chemical Park" Taraz", a plot of land with an area 505
hectares was allocated, feasibility study of SEZ was developed, management
company was created with the
participation of Jurong (Singapore),
negotiations were made with potential
participants of SEZ, infrastructure of
SEZ was started
Possible measures of the state
support:
Exemption from taxes for 25 years,
construction of infrastructure,
allocation of the land plot, subsidizing of
an interest rate for the credits of banks,
guaranteeing loans, joint financing

The purpose of the project: Reconstruction of generating capacities and
auxiliary constructions for increase of efficiency of the enterprise
Initiator of the project: “Tarazenergotsentr” JSC /Akimat of Zhambyl region
Capacity:
- electrical: 125 MWt
- thermal : 482,5 Gcal/hour
- annual output of electricity: 765 million kWh
- annual output of heat: 623 thousand Gcal
Participation of the initiator: operating assets of the enterprises (production
base, infrastructure, etc.)
Necessary investments: private investments - $193,8 million
Target of investments:
- CIW: $37,1 million
- equipment: $124,3 million
- miscellaneous: $32,4 million
Location: Taraz
Raw materials: natural gas
Infrastructure and resources: the project is provided with necessary
infrastructure and resources
Equipment/technologies: The first use of steam-gas installation for
development of electro and heat power is provided by the project in Kazakhstan
Basic indicators of project efficiency:
- selling tariff for electricity: 8.8 tenge/ kWh (excluding VAT)
- selling tariff for heat: 3400 tenge /Gcal (excluding VAT)
- the cost of delivered products: $47.8 million, including
- electricity: $36.4 million
- heat: $11.4 million
- payback period: 11.5 years
- IRR: 15%
- NPV: $68 million
Basic calculation requires adjustments as financing conditions change
Current status of the project: The feasibility study of the project was
developed, theTPS-4 is the basic source of heat inTaraz
Possible measures of the state support: Sale warranty of heat, joint financing
through “NС" SEBC“Taraz” JSC, a payment for management etc..
RECONSTRUCTION AND EXPANSION OF THERMAL
POWER STATION TPS-4

TRANSPORT AND LOGISTICS CENTER
BASED ON THE INTERNATIONAL AIRPORT "AULIE-ATA"
The purpose of the project: Creation of the transport and logistic
center on the basis of the international airport "Aulie-Ata" Taraz
(reconstruction of the passenger terminal, creation of a cargo of the
terminal of a class A, the logistic and cargo companies, expansion of geography
of flights, purchase of special equipment)
Initiator of the project: JSC "Airline" Scat "
Project capacity:
- passengers: 200 - 250 people / hour;
- cargo: 10 tons / year.
Total cost of the project: $11,3 million
Participation of initiator: Own funds – $ 3,6 million,
the operating assets of the enterprise (the airport, infrastructure, etc.)
Necessary investment: $7.7 million (debt)
Purpose of investment:
- cargo terminal (A)
- equipment - $2.7 million, construction - $5.3 million
- air terminal complex: equipment - $1.3 million, construction - $6.4 million
Location: Taraz,Airport "Aulie-Ata«
Domestic passenger transport: Astana,Almaty,Aktau,Atyrau,, Karaganda
International passenger traffic: Moscow, Istanbul, Urumqi, Dubai
Cargo and passenger transit: Tajikistan / India - Russia, Southeast Asia -
Europe, Middle East – Siberia
Major airlines: Airline «SCAT», «Transaero» «Tajik Air"East Air", cargo and
charter airlines
Additional information: the project assumes reconstruction of the passenger
terminal, creation of a cargo of the terminal of a class A, the logistic and cargo
companies, expansion of geography of flights, purchase of special equipment,
etc.
Project performance indicators:
- NPV: $21,8 million
- IRR: 59%
- Payback period: 2.5 years
Current status of the project:
The feasibility report of the project on development stages, in 2013 constructed a
new runway, reconstruction of the passenger terminal, of 6 200 sq.m, capacity -
200 passengers / is conducted hour.

ROADSIDE SERVICE COMPLEXES
The purpose of the project: Creation of roadside service of category B and C
along the highway of Zhambyl area «Western Europe - Western China»
Sales markets: Transport stream – up to 10 000 cars/days, length of Zhambyl
site is 495 km
Total cost of the project: approximately $2 million
Required investment: private investments up to $2 million
Project location: to the direction of «Almaty – Shymkent» on the territory of
Zhambyl region, with extent of 495 km:
- Korday region - 2 objects (category B and C);
- T.Ryskulov region - 1 object (category В);
- Zhualy region - 1 object (category C).
The main objects of complexes:
Category B - hotel, catering, auto gas station, parking, service station, a tourist
center, a medical center
Category C - catering, gas
station, parking, service station,
a tourist center, a medical
center
Current status of the project:
construction of at least 8
complexes is planned, investors
are found on 4 complexes, the
rest needs investors
Possible measures of state
support: Sale / lease of land - 3
hectares, interest rate subsidies
on bank loans, loan guarantees,
co-financing of projects

CREATION OF A MOUNTAIN, CHEMICAL AND METALLURGICAL
COMPLEX ON THE BASIS OF A TITANIUM MAGNETITE TYMLAY FIELD
The purpose of the project: Creation of a mountain and chemical and
metallurgical complex on the basis of a titanium magnetiteTymlay field
Initiator of the project: “Tenir-Logistic” LTD
Production and capacity of production:
- dioxide of the titan the pigmentary:45 000 tons/year (a scope - paint and
varnish, paper and chemical industry);
- silicon dioxide: 10 000 tons/year (a scope - rubber, electrotechnical and
others);
- vanadium pentoxide: 650 000 tons/year (release of special types of
steel);
- special types became: 190 000 tons/year (the vanadisty - -rail and pipe
steel, wearproof steel).
Market: Kazakhstan (5%), Russia, (85 %), Other (10%)
Total project cost: $360 million
mining and processing complex: $ 120 mln;
- chemical complex: 130 mln
- electro-metallurgical complex: $ 110 mln
Necessary investments: $ 240 mln
Participation of the initiator: $ 120 mln.
innovative technologies, rights for subsurface use
Raw materials: field of titanium magnetite Tymlay ores (stocks of 227 million
tons, security with raw materials more than 50 years)
Place: Korday (mining and processing works), Shu , SEZ "Chemical park
"Taraz" (chemical and eletro-metallurgical complexes)
Justification:
- lack of production of pigmentary dioxide of the titan in the countries of
the Customs union;
- existence of considerable raw material resources in the region;
- use of new environmentally friendly, highly profitable and almost waste-
free technology;
- existence of a perspective and extensive sales market.
workplaces: during construction: 1 200 - 1 500; during operation: 500 – 700
Current state of the project: production technologies are developed, the first
products exceeding GOST indicators according to characteristics are received,
development of the feasibility report comes to the end

FABRIC PRODUCTION
Purpose of the project: Expansion of production,
the creation of fabric production.
Initiator of the project: ТОО «Fabrica POSH-Taraz»
Sales market: Kazakhstan, CIS and Europe
Capacity: 300 thousand pairs of shoes / year
Necessary investment: $2 million (equity, debt)
Participation of the initiator: operating assets of the
company (manufacturing base, infrastructure and etc.), co-financing
Raw material: TOPS and own production of yarns
Location: Taraz
Current status of the project: operating companies, project is in the
development stage
Possible measures of state support: Subsidizing interest rates on bank loans,
loan guarantees

PROCESSING OF SOLID WASTE
The purpose of the project: Construction of a plant for processing of solid
waste and production of by-products
Initiator of the project: Akimat ofTaraz
Raw materials: Polygon with an accumulated volume of up to 2 million tons of
MSW, annual accumulation consists up to 50 tons of MSW.
Project capacity: MSW processing at least 50 000 tons/year
Market: Taraz.
Total cost of the project:
Approximately $40 million
(depending on the technology)
Required investments:
Project financing, private
investments – $40 million
(depending on the technology)
government grants
Location: Taraz
Technology: technology
w i t h o u t u s e o f M S W
incineration
Current status of the project: searching for investors, plot of land is defining
Possible measures of state support: construction of infrastructure, the
allocation of land, interest rate subsides on bank loans and collection of solid
waste, loan guarantees, co-financing

INCREASING WIND POWER PLANT CAPACITY
The purpose of the project: Increasing existing capacity of wind power plants
(WPP) in Zhambyl from 1.5 MW to 21 MW
Initiator of the project: «Isen-su» LLP
Capacity:
- capacity: 21 MW
- generation of electricity: 48 million Kwh
Market: regions of Kazakhstan
Total cost of the project: $31,2 million, including
- development of design estimate: $1,2 million
- construction and assembly work: $4,5 million
- equipment: $23 million
- miscellaneous expenses: $2,5 million
Required investment: $31,2 million (loan)
Participation of the initiator: operating assets of the company, co-financing
The place of supply: Kordai area
Creation of new jobs: 10 jobs
Current status: feasibility study of the project was conducted, land plot of 27
hectares is allocated, wind power plant of 1.5 MW is operating
Possible measures of state support: interest rate subsidies on bank loan
guarantees, loan guarantees, long-tern tariff for 15 years 22.68 KZT/kWh.

INCREASING CAPACITY OF SOLAR POWER STATION
The purpose of the project: Increasing existing capacity of solar power station
in Zhambyl region from 0.5 MW to 7.0 MW
Initiator of the project: LLP"KazEkoVatt"
Capacity:
- capacity: 7.0 MW
- power generation: 10 million kWh/hour
Sales markets: regions of Kazakhstan
Required investments: $13 million (loan funds, equity)
current assets of the company, co-financing
Location: Kordai area, Otar
Current status: Feasibility study of the project is developed, land plot of 14.25
hectares is allocated, operating solar power plant of 0.5 MW
Possible measures of state support: interest rate subsidies on bank loan
guarantees, loan guarantees, long-tern tariff for 15 years 34,61 KZT/kWh.

PRODUCTION OF SODA ASH
The purpose of the project: Production of soda ash
Initiator:Akimat of Zhambyl region
Capacity: 400 thousand tons / year
Market: Kazakhstan, CIS
Total project cost: $274 million, including:
- construction and assembly work: $129 million;
- equipment: $145 million
Required investment: $274 million (private investments)
Location: Talas region
Raw materials and infrastructure:
- rock salt: Sorkol deposit (reserves - 1,93 billion tons, content NaCl - 66%);
- limestone: Aksai deposit (reserves - 12.7 million tons), Aktau and Aktau-1;
- gas: from operational gaseous area ofTalas;
- electricity: from LLP «Zhambyl electrical networks»
- water: drinking from May-Tobe, Tamdin, and Koktal fields, manufacturing
from Biliykol field, underground fromAkzhar field
- other raw materials: ammonia, sodium sulfogidrat, mazut - imported
Commodity output: $89.2 million
Number of new jobs: 950 people
Economic indicators:
- net income: $29 million
- discount rate: 7,5%
- net profit: $92,5 million
- payback period: 10 years
- internal rate of return: 11,78%
- profitability index: 1,39
Possible measures of state support: Construction of infrastructure,
subsidizing the interest rate on bank loans, loan guarantees, co-financing of the
project

PLANT FOR RECYCLING OF PET
The purpose of the project: Construction of a plant for recycling of PET
Initiator of the project: «KaskadstroyTIA» LTD
Raw materials: secondary materials, the PET-bottles which were in use, waste
Capacity: 6 000 tons of PET-granules/year
Sales market: Kazakhstan
Total project cost: 10 million Euro, including
- construction and assembly work: 1,4 million Euro
- equipment: 8 million Euro
- working capital: 0,6 million Euro
Necessary investments: 10 million Euro (borrowed funds)
Participation of the initiator: intangible assets
Location: Taraz
Justification:
- absence of local producers;
- needs of the market for PET-granules are satisfied due to import from
China, France and South Korea;
- the volume of import makes up to 77 thousand tons PAT granules/year
(about 92 million Euro).
Indicators of efficiency of the project:
- IRR: 116%
Equipment/technology:
Equipment of the companies: Buhler, Bruer, Herbold
Current status of the project: The land plot with infrastructure, the business
plan is developed
Possible measures of the state support:
Funding of an interest rate for the credits of banks, loan guarantees, co-financing

CULTIVATION OF VEGETABLES BY USING PIVOTS
The purpose of the project: Cultivation of vegetables by using Pivots
Initiator: LLP«Lugovskoy konny zavod»
The volume of production in monetary terms: $7.2 million/year
Total cost of the project: $3.8 million
Required investment: $1.7 million (loan)
- own funds: $ 2.1 million
- infrastructure (road and electricity supply is available)
Market: regions of Kazakhstan, export
Period of realization: 2014 - 2015 years
Creation of new jobs: 10 new jobs in the period of operation
Project location: Zhambyl region, T. Ryskulov, Kogershin
Raw materials: seed of grain, fodder, and oil cultivation
Current status: Obtaining permission documents
Possible measures of state support: Subsiding interest rates on bank loans,
loan guarantees, subsidies on production expenses

EXPANSION OF HOG - BREEDING COMPLEX
The purpose of the project: Expansion of pig – breeding complex
to 60 000 heads
The volume of production in natural terms: pork meat - 4000
tons/year
The volume of production in monetary terms:
$ 15.1 million / year
Total cost of the project: $ 5.4 million
Required investment: $ 4 million (loan)
- own funds: $ 1.4 million
- operating hog – breeding complex of 30 000 heads
- infrastructure (road and electricity supply is available)
Creation of new jobs: 80 new jobs
Project location: Zhambyl region, T. Ryskulov area, Kogershin
Raw materials: young pigs received in its own reproducer
Current status: project is at the design stage
loan guarantees, subsidies of production expenses

RAISING OF STURGEON
The purpose of the project: Raising of sturgeon in the recurculation
system
Project location: Zhambyl region, T. Ryskulov area, Kogershin
Capacity:
- sturgeon: 60 tons/year
- caviar: 2 tons/year
- sturgeon: $1.2 million
- caviar: $1.6 million
Participation of the initiator: $0.6 million
Required investment: $2.9 million (equity, borrowings)
Creation of new jobs: 60 new jobs in the period of construction, 12 new jobs in
the period of operation
Current status of the project: basic equipment installation is conducted,
commissioning
loan guarantees, subsidies for production costs

CONSTRUCTION OF PLANT FOR PRODUCTION OF MIXED FEED
The purpose of the project: Construction of plant for production of mixed feed
Location: Zhambyl region, T.Ryskulov area, Kogershin
Capacity: mixed feed – up to 15 tons/hour
The volume of production in monetary terms: $8.2 million/year
Participation of the initiator: $0.4 million
Required investment: $0.9 million (equity, loan)
Market:
- estimated annual demand of Zhambyl region is up to 570 tons of
feed/year
- during the Soviet Union, Kazakhstan produced up to 4 million tons of
feed per year and was the 4th largest producer of animal feed and the third
largest producer of feed for the birds of the former Soviet republics.
Number of new jobs:
- period of construction: 20 new jobs
- period of operation: 13 new jobs
Current status of the project: Design stage and development of documents
loan guarantees, subsidies for production costs

ROLLED METAL
The purpose of the project: Expansion of production, organization of rolled
metals for production of structural
metal products
Initiator: JSC “Zapchast"
Products:
- steel reinforcement;
- channel;
- corners
Capacity: 300 tons / year
Sales market: Kazakhstan,
neighboring countries
Total cost of the project: $34
million
Required investment: $34 million
(loan)
Participation of the initiator: operating industrial base, infrastructure,
personnel, etc.
Raw materials: billets (blooms) of own production
Sales market: Taraz
Current status of the project: project is at the design stage, there is an
operating manufacture to produce metal blanks for metal

The purpose of the project: Expansion and modernization of foundry
manufacture
Initiator of the project: JSC “Zapchast"
Products:
- brake discs and drums, body parts of hydro system and transmissions,
clutch pressure plate (for the automotive industry);
- locomotive and pasture brake pads, suspension, anchor, mono
regulator (for railway industry);
- storm grate, housing cable mounting on bridges and tall buildings (for
construction industry)
Capacity: 24 tons / year
Sales market: Kazakhstan, neighboring countries
Total cost of the project: 4.1 million Euro
Required investment: 3,3 million Eurо (loan)
Participation of the initiator: 0,8 million Eurо
Project location: Taraz
Current status: project is at the design stage, there is an operating manufacture
to produce metal blanks for metal
FOUNDRY MANUFACTURE

MODERNIZATION AND EXPANSION OF THE POULTRY
FARM LLP "ZHAMBYL KYS"
The purpose of the project: modernization and expansion of the existing
poultry farm an egg direction
Initiator of the project: LLP"Zhambyl kys"
Project capacity: up to 58 million eggs in a year
Sales market: regions of Kazakhstan and export
The total project cost: 4,9 mln.USD.
Required investments: 4,9 mln.USD.
The participation of the initiator:
fixed assets (production base, infrastructure, etc)
Description of the production base:
- land plot with an area 9.5 hectares;
- 8 poultry houses 12х96 m and 4 m poultry house 18х96 m;
- 2 hatchery building;
- feed mill, with a capacity of up to 3 tons/hour;
- 3 water supply wells;
- 2 an electrical substation 400 kW;
- network of telecommunications;
Location of the project: Zhambyl region, Baizak district, v.Koktal
Current project state: business plan is developed, identified equipment
suppliers, are being reconstructed buildings, there is the current workforce in the
number of 76 people

EXPANSION OF MILK PROCESSING CAPACITY
The purpose of the project: Expansion of milk processing plant capacity
Initiator: «Burnensky Syrzavod» LLP
Location: Zhambyl region, Baurzhan Momyshuly area
Capacity:
- rennet cheese: 300 tons/year
- butter: 100 tons/year
- natural ultrapasteurized milk: 12 million liters/year
- rennet cheese: $1,8 million/year
- butter: $600 thousand/year
- natural ultrapasteurized milk: $ 1 million/year
Participation of the initiator: $0.8 million, operating manufacture,
infrastructure
Required investment: $1.1 million (equity, loan)
Number of new jobs: 80 jobs
Current status: there is a business plan, searching for investors, operating
manufacturing base
loan guarantees, subsidies on production expenses

MODERNIZATION OF GAS PROCESSING PLANT
The purpose of the project: Upgrading the existing gas processing plant with
new equipment and technology to meet product standards of EURO 4
Initiator: LLP"Amangeldy GPZ"
The volume of production in natural terms: 180 000 tons/year, including
- light distillate: 27 000 tons / year (15%)
- kerosene fraction: 36 000 tons / year (20%)
- diesel: 45 000 thousand tons / year (25%)
- mazut: 72 000 tons / year (40%)
Necessary investment: $54 million (loan)
Number of new jobs: 150 new jobs
Economic indicators:
- period of realization: 3 - 5 years
- efficiency: PI > 1
Location: Zhambyl region, Zhambyl area, Asa
Raw material: crude oil from Kyzylorda andAktobe regions
Current status of the project: stage of project development, all the permitted
documents are available
loan guarantees

DEVELOPMENT OF GAS FIELDS
The purpose of the project: Production and processing of inert gases (nitrogen
and helium) and production of mineral fertilizers
Initiator of the project: «Amangekdi Gaz» LLP
capacity:
- nitrogen: 176 million Nm3/year
- helium: 1 222 thousand Nm3/year
- carbamide: 5 500 thousand tons/year
Raw materials: fields Ucharal, Kempirtobe, the Western Ucharal and
Northern Ucharal, the content of gases - nitrogen of 96% and helium of 2%
Market: Kazakhstan, China (30-60%)
Total project cost: $ 360 million, including:
- building of Cryogenic installation: $ 60 million (fixed assets – $ 42 million,
- replenishment of current assets – $18 million);
-construction of chemical fertilizers plant: $300 million (fixed assets - $210
million, replenishment of current assets - $90 million).
Necessary investments: $ 360 million
Place: Zhambyl region, Talas, in 120 km in the southeast from the regional center
Taraz
Indicators of efficiency of the project: Payback period of cryogenic installation
of 2 years, chemical fertilizers plant - 3 years
Current state of the project: The feasibility report of the project is developed
Possible measures of the state support:
Subsidizing of an interest rate for the credits of banks, joint financing of the
project, guaranteeing loans, leading of industrial infrastructure

PRODUCTION OF BUILDING MATERIALS MADE OF GYPSUM
The purpose of the project: Construction of a plant for production of gypsum
binder and dry building mixtures in accordance with European standards
Initiator: JSC "Zhambylgips"
Project location: Zhambyl region, Zhambyl area
Capacity:
- gypsum binder: 170 000 tons/year
- dry mixes: 100 000 tons/year
- microcalcite: 7 tons/hour
- expanded perlite: 15 cub. meters/hour
Participation of the initiator: $4 million
Required investment: $5 million (loan)
Market: Kazakhstan, exports to CentralAsia and Russia
Raw materials: Ulken Burultau and Kyzylbastau field (subsoil use contract №41
of 25.06.2003)
Suppliers of equipment: Erisim Makina Machinery Industry Co.
Infrastructure and Resources: road, transformer station, gas distributor station
Creation of new jobs: 56 jobs
Current status of the project: state examination is conducted for the first phase
of design work, second phase is at the stage
loan guarantees, subsidies on production expenses, infrastructure construction

CONSTRUCTION OF A PLANT FOR DRYING
FRUITS AND VEGETABLES
Purpose od the project: Construction of a plant for drying fruits and vegetables
Strategic partner: «Dry Food» company (Russia)
Necessary investment: $1,4 million
Participation of the strategic partner: $0,1 million
Products: organic food concentrates (dry ingredients)
Market: regions of Kazakhstan, Russia
Number of new jobs: 31 new jobs
Location: Zhambyl region
Raw materials: vegetables, fruits and other crops, residues of products in
storage, distribution centers and processing plants
Advantages of the project:
- guaranteed equipment («Dry Food» company)
- life of the product is up to 3 years
- final cost is 3-4 times higher than raw material cost
- up to 90% of the vitamin savings
- low production cost
An expediency substantiation of the project:
- the amount of fruits and vegetables in the region: 602 500 tons, while the
needs of the region: is 205 800 tons
- excess: 396 700 tons
- no competition in the region
Efficiency (at 75% loading):
- the profitability index: 3,47
- internal rate of return : 52%
- modified internal rate of return: 28%
- discounted payback period: 2,3 years
loan guarantees

CONSTRUCTION OF KINDERGARTENS
Project name: Construction and operation of kindergartens in Taraz and
settlements of Zhambyl region
The purpose of the project: provision with preschool services
Project initiator: SI “Healthcare department of Zhambyl region”
Capacity: 320 places
Total cost of the project: 6 billion tenge
Needs: development of concessionary offer, feasibility study, design
specifications and estimates. The estimated cost of the feasibility study - 14,5
million tenge
GPPmodel: WTO "Construction -Transfer - Operation”
Object parameters:
Land area - 1.25 ha
Kindergarten floors - 3 floors
Construction period: 1 year
Concession period: up to 30 years
Preliminary performance indicators:
- NPV: 1 120 million tenge
- IRR: 18,9%
Government support arrangements:
- land grants
- consumption warranty
Sources of compensation and income:
- preschool services
- additional paid services (study groups)
- compensation for investment expenses
- income from state order

CONSTRUCTION OF MULTIDISCIPLINARY HOSPITAL
Project name: Construction and operation of a multidisciplinary hospital in
Taraz and settlements of Zhambyl region
Purpose of the project: provision of affordable and qualitative health care
services
Initiator of the project: SI «Healthcare department of Zhambyl region»
Capacity: 300 beds
Total cost of the project: 7 300 million tenge
Needs: development of concessionary offer, feasibility study, design
specifications and estimates
GPPmodel: WTO, WCO, SBI
Construction period: 1 year
Concession period: up to 30 yeras
Object parameters:
Plot area: not less than 6 ha
Floors of multidisciplinary hospital: 3 floors
Preliminary performance indicators:
- NPV: 6 900 million tenge
- IRR: 17,4%
Government support arrangements:
- land grants
- consumption warranty
Sources of compensation and income:
- guaranteed volume of free medical care
- income from paid medical services
- income from paid non-medical services
- compensation for investment expenses
- compensation for operational expenses
- remuneration for management

HISTORICAL AND CULTURAL ZONE «KONE TARAZ»
The essence of the project: Creation of the largest tourist complex in the city of
Taraz, which consists of the archaeological park and service objects to serve
tourists with the formation of new of stages in Zhambyl region
The purpose of the project:
1.1. Preservation of historical and of cultural heritage of the region
1.2. Creation of tourism cluster in Zhambyl region
1.3. Formation of a new tourism brand in the region
The project components "Kоne Taraz":
1. Archaeological Park - 10 hectares (archaeological site, the pavilion, the
museum complex, an extensive network of footpaths with green areas, etc..)
2. Tourist Area - about 8 hectares (hotels, retail outlets, restaurants and cafes,
market, sauna, hammam, a city-masters and others. - All in a single ancient
Eastern-style).
Funding for the project "Kоne Taraz":
1. The republican budget - 5 620 mln. (Archaeological, restoration work
accomplishment of, construction of the museum and memorial complex
settlement infrastructure)
2. Of the regional budget - 3 744 mln.
(cost of servicing the archaeological zone)
3. Funds of private investors - investment in the construction service objects:
hotels, tourist facilities, entertainment complexes, shopping malls, commercial
tours

BUILDING SHOPPING AND ENTERTAINMENT MEGA-CENTER
«AQUATIKA» IN CITY TARAZ
Purpose od the project: building shopping and entertainment mega-center
«AQUATIKA» in с. Taraz
Initiator of the project: ТОО «AQUATIKA»
Components SEC: trading rooms, swimming pool, restaurant, movie theater,
gym, bowling, billiards, a sports complex, children's playgrounds, SPA-salons,
conference rooms, hotel rooms (economy, luxury, VIP)
Capacity: visiting at least 5 000 people per day
Overall value of the project: tentatively $ 200 million
Necessary sum: tentatively $ 200 million
Structure of financing: own and borrowed funds investors
Sales market: population of the region and the regions of Kazakhstan, foreign
tourists
Project location: c. Taraz
The uniqueness of the project: lack of analogues in Kazakhstan
Required the area of land: till 20 hectares
Quantity of new jobs: about 1000 workplaces

THE RECREATION AREA ON THE COAST OF LAKE BALKHASH
The purpose of the project: Creation of the recreation area of international
importance on the coast of Lake Balkhash.
Objects of the recreation area: Entertaining and cultural tourist objects,
children's game zones, parking, hotel, cafe
Total cost of the project : determined by the investor
Target direction of investments: Construction of business, cultural,
entertaining and sanitary objects, children's game zone, parking, hotels, cafe.
Location: Along the coast of Lake Balkhash
Possible measures of state support: feasibility study for the construction of
engineering infrastructure at the expense of the state budget, issuance of land for
construction of facilities for investors, interest rate subsidies, loan guarantees
CARAVANSERAI «TORTKOL»
The purpose of the project: Recreating medieval Caravanserai “Tortkol”,
creating a tourist center
Required investment: $0.8 million (private investments)
Target direction of investment: Construction of cafes, shops and oriental
market of medieval style.
Project location: Taraz
Current status: infrastructure was conducted

Kazakhstan Investment Opportunities - Zhambyl region 2014

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Kazakhstan Investment Opportunities - Zhambyl region 2014