318 projects to launch at Kazakhstan’s economic and industrial zones from 2019-2021

NUR-SULTAN – Kazakhstan’s Ministry of Industry and Infrastructure Development will launch approximately 320 projects by 2021 at special economic zones (SEZ) and industrial zones. SEZ and industrial zones attract investment and promote exports, said Minister of Industry and Infrastructure Development Roman Sklyar at a May 21 government meeting.

One hundred and forty-seven of those projects will be launched at SEZs totalling $5.2 billion by 2021.

This year, Kazakhstan will launch 36 projects at SEZs, which are expected to total $422 million and create 1,200 jobs.

Approximately 173 projects worth $1.3 billion will be launched at industrial zones by 2021. This year, 40 projects will be launched at industrial zones. Currently, 12 SEZ and 23 industrial zones operate in the country.

“Overall, 183 projects have been launched at the SEZ, including 46 with foreign capital. This created 15,500 jobs. As of May, tax returns were $396 million,” said Sklyar at the briefing.

Minister of Industry and Infrastructure Development Roman Sklyar.

Vice Minister of Energy Aset Magauov said production has reached $26 million and 2,600 jobs have been created at the National Industrial Petrochemical Technopark SEZ in the Atyrau Region since 2007. The park’s main projects are the production of polypropylene and polyethylene with a total value of $9 billion until 2032. The contribution to GDP of the projects will be 1.5 percent.

Production of polyethylene terephthalate, methanol and cyclohexane is also expected to be launched. The projects are expected to attract approximately $2.5 billion of investments and create up to 10,000 jobs during the construction stage and 1,500 jobs during the operation stage.

Alisher Pirmetov, managing director of Samruk Kazyna Sovereign Wealth Fund, spoke about the fund’s work in the activities of SEZ. Some 68 infrastructure facilities were put into operation at the Khorgos – Eastern Gate SEZ in October 2016.

The dry port of Khorgos SEZ started its operations in July 2015.

One of the fund’s largest projects is the construction of a gas turbine station scheduled to be completed by the end of 2020 in the Atyrau region.

Thirty billion tenge (US$80 million) was invested in the Khimpark Taraz economic zone from 2011 to 2018 in the Zhambyl region. All the projects have been completed.

Prime Minister Askar Mamin said recently the regions should work systematically to attract projects and investment

“The regions should invite management companies with successful international experience to the SEZs. It is necessary to develop criteria for priority financing of zones to improve the efficiency of work and management. Local authorities need to focus on manufacturing with high added value and [those that are] export-oriented,” said Mamin.

The prime minister directed the establishment of a development strategy for each economic zone for a three-year period.

“The special economic and industrial zones should be the growth points of the regional economies. We need well-defined and coordinated work with high-quality projects,” he said.