Kazakhstan Chamber of Commerce in the USA

KazCham


Kazakhstan to build new refinery jointly with Iran 0

Posted on July 31, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #109

Kazakhstan will construct a new refinery in the Mangistau region jointly with Iran, according to Rakimbek Amirjanov, the Deputy Akim (Governor) of the Mangistau Region.

Mr Amirjanov went on to add that Iran and Kazakhstan have already held a number of official negotiations on the issue. He furthermore confirmed that there are large companies in Kazakhstan that are interested in investing into this project.

A feasibility study of the project on construction of the fourth refinery is expected to be ready in the near future while the agreement on the construction of the refinery will be signed by the end of this year. Calculations suggest the approximate minimum amount of investment in the construction of the project to, at least, reach as much as $6 billion.

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Kazakhstan ring road moving forward 0

Posted on July 28, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #109

In Kazakhstan Plans are progressing for the project to construct the Big Almaty Ring Road. A number of investors are involved in the financing of the project; where they aim to invest $1.2 billion in the ring road. The contract will include both construction and operation of the project.

Amongst others EBRD, Asian Development Bank, IFC, and the Islamic Development Bank have demonstrated a strong interest in the projects.

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Renewable Energy in Kazakhstan: More Than 1 GW Until 2020 0

Posted on July 25, 2015 by KazCham

IBCentre, July 2015

Today, Kazakhstan is one of the most attractive markets for renewable energy. This Central Asian country is in the focus of attention of major international players due to actively develop of sectoral legislation, “green tariff”, which acts, and enormous natural potential for renewable energy projects. Ministry of Energy of Kazakhstan Republic plays a key role in renewable energy development. It creates the game rules for the market development, as well as responsible for implementation of the strategy for renewable energy development in Kazakhstan.

In interview to IBCentre, Kazakh Energy Minister Mr. Vladimir Shkolnik talks about possibilities opening  for investors entering the market of renewable energy and energy efficiency.

–           Today, the pace of renewable energy development in Kazakhstan is significantly ahead of CIS countries and Eastern Europe. What indicators of sustainable energy industry  development you plan to achieve till to 2020?

–           According to the Strategic Development Plan  of Kazakhstan for 2020 and Conception of Kazakhstan on Transition to Green Economy, approved by decrees of  Kazakhstan  President ought to increase the share of renewable energy in the overall energy mix to a minimum of 3% by this time. In particular, according to the Plan of Activities for Alternative and Renewable Energy in Kazakhstan, it is planned to put into operation about 28 solar energy projects until the end of 2020 with total installed capacity of 713.5 MW. Also a number of investment projects will be implemented in other areas of renewable energy  for 2013-2020 timeframe.

–           What are your main achievements in solar, wind and other segments in the first half of 2015?

–           First of all, I would like to mention solar power plant “Stormy” with a capacity of 50 MW, which was put into operation in Zualynsky district of Zhambyl region. The official launch of the project took place on 2 July on the Day of industrialization with participation of the President of the Republic of Kazakhstan Nursultan Nazarbaev by teleconference. In general, today Kazakhstan has already 44 objects renewable energy with total capacity of 227.52 MW, which includes 55 MW solar power plants, 53 MW of  wind farms  and 119 MW of small hydropower stations. Also one biogas plant with a capacity of 0.4 MW for the time being works in Kazakhstan.

By adopting a “green tariff” Kazakhstan is becoming an industry leader not only in Central Asia but also in the CIS as a whole. What new legislative initiatives you are going to implement for renewable energy market development in the nearest future?

–           Forming a legislative platform for renewable energy development in Kazakhstan, we took into account the best global practices. In the end July 4, 2013 we adopted the law of the Republic of Kazakhstan “On Support of Using Renewable Energy Sources”. A new revision of this law addresses both to the support of investors, and support for ordinary consumers. The basic concept of the law is the introduction of a system of fixed tariffs, which will assure investors on return of the invested funds, will help clarify the magnitude of tariffs for renewable energy facilities, as well as to guarantee the purchase of electricity through the establishment of settlement and financial centre for support of the industry.

Also currently in the Mazhilis of the Parliament within the framework of the draft law “On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on Issues of Transition of the Republic of Kazakhstan to Green Economy”, the Ministry of Energy is working on corrections  to make industry more attractive for investors, in particular foreign ones.

–           Has the Government plans to change the “green tariffs” in the direction of increase/decrease?

–           As you know, in summer of 2014 the Government of the Republic of Kazakhstan approved the fixed rates for  4 types of renewable energy: 22.68 tenge per kW ($0,121/kW) for wind farms, 34.61 tenge per kW ($0,186/kW) for solar power plants, 16.71 tenge per kW ($0,09/kW) for small hydropower and 32.23 tenge per kW ($0,173/kW) for biogas complexes. These quotes are exclusive of VAT. The fees are indexed annually according to the level of inflation.

In addition, with a view to stimulating the development of renewable energy in the country, taking into account regional and socio-economic needs, according to the current legislation on renewable sources, the Government may adjust every three years previously approved levels of fixed tariffs.

However, I would like to note that now  the rule for the annual adjustment of tariffs  is being considered within the framework of the draft law on “green economy”.

Fixed tariffs, probably, will be differentiated depending on the installed capacity of objects to induce  the development of small renewable projects, as well as providing electricity to areas with less favourable natural, climatic, technical or other conditions for renewable energy development.

–           How difficult is the project approval procedure for connection of new renewable energy capacity to the grid?

– In Kazakhstan, the process of project implementation in the field of renewable energy consists of the following steps: 1) Obtaining the land for the construction of objects; 2) Development of project documentation and passing the examination; 3) Object connection to electrical grid; 4) Signing of a contract of purchase of electric energy by the Accounting and Financial Centre. Today, the Government makes a maximum effort to each of these stages, the investor took place as quickly as possible.

It should also be noted that the Ministry of Energy developed  the information guide for potential investors, which includes a complete list of documentation required to implement renewable energy projects in Kazakhstan. The guide is available on the official website of the Ministry (http://energo.gov.kz/index.php?id=2024).

–           What are the plans of  the Ministry regarding development of national  production such as equipment, components for renewable energy plants? What is position of the Ministry of Energy regarding implementation of  local content requirements?

–           The production of photovoltaic modules from Kazakhstan’s silicon has been operated by the company “Astana Solar” in Astana since 2012. The design capacity of the plant is 50 MW, expandable up to 100 MW.

With regard to local content, Kazakhstan does not require it  for  implementation of renewable energy projects in the country. But, in accordance with the Decree of the Government of the Republic of Kazakhstan No. 644 dated June 12, 2014 the special  tariff for solar projects, power plants using photovoltaic modules based on Kazakhstan’s silicon were fixed on the level of 70 tenge per kW ($0,375/kW). We believe that this is enough to support Kazakhstan’s producers, as well as to build an attractive market for foreign investors.

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Eni, Kazmunaygas enter the deal to explore Isatay block in Caspian sea 0

Posted on July 24, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #107

Italian Eni S.p.A. announced entering into a joint exploration agreement of Isatay block in the north Capsian Sea with KazMunayGas (KMG), Kazakhstan’s national oil and gas company.

The agreement defines the commercial terms of transfer of 50 percent interest in the Isatay block, believed to hold significant potential oil resources, to Eni.

KMG and Eni will establish a joint operating company, with each holding a 50 percent stake, to operate the block.

 

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India Inks Uranium Deal with Kazakhstan 0

Posted on July 24, 2015 by KazCham

The Diplomat

On July 6 Indian Prime Minister Narenda Modi visited Kazakhstan. During the visit he reached an agreement with Kazakhstan authorities that the country will supply India with 5,000 metric tons of nuclear fuel in the 2015 – 2019 period.

Between 2010 and 2014, Kazakhstan supplied India with 2,100 metric tons of uranium. While expressing pleasure at the “much larger second contract,” Mr. Modi noted that Kazakhstan was “one of the first countries with which we [India]  launched civil nuclear cooperation.”

The increase in uranium supply is a boon to Modi’s energy plans. India, which has increasingly faced an energy-deficit, dealing with blackouts and leaning heavily on coal has begun to focus on building up its nuclear power capabilities in recent years.

Kazakhstan produces 38 percent of the world’s uranium–22,451 metric tons in 2013–more than the next three top producers combined (Canada, Australia, and Niger). The country is also set to host the International Atomic Energy Agency’s low-enriched uranium (LEU) bank, a facility which will stockpile LEU, used in civilian nuclear power reactors, in order to assure supply to members should they experience a disruption.

 

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Italy and Kazakhstan signed more than 20 deals worth $500 million 0

Posted on July 20, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #107

Italy and Kazakhstan signed more than 20 multi-aspect deals worth a total of $500 million at Expo Milano.

The agreements were signed during the visit of Kazakh President Nursultan Nazarbayev to Italy.

The deals concern oil sector, as well as real estate, textile, food, engineering and agricultural machine tools, according to the Ministry for Investment and Development of Kazakhstan.

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Kazakhstan expands visa-free regime to 19 countries until December 31, 2017 0

Posted on July 20, 2015 by KazCham

Tengri News

Starting from July 16, 2015 Kazakhstan expands visa-free regime for 19 countries, after the success of a pilot project.

The List now includes: Australia, Hungary, Italy, Monaco, Belgium, Spain, the Netherlands, Norway, Sweden, Malaysia, the United Arab Emirates, Singapore, the United Kingdom, the United States, Germany, Finland, France, Switzerland and Japan.

Citizens of the above-mentioned countries are exempted from visa requirements for a period up to 15 days from the moment of crossing the state border of Kazakhstan. The visa free regime is valid until December 31, 2017.

Citizens of these countries may repeate

dly enter Kazakhstan but each time their stay may not exceed 15 days. If they need to stay longer they either have to reenter the country or need to get a visa.

Through the extension of the visa-free regime Kazakhstan hopes to:

  • Increase the inflow of foreign tourists to the country;
  • Increase the number of people wishing to attend major international events scheduled in the next two years, such as EXPO-2017 in Astana and the 2017 Winter Universiade in Almaty;
  • Attract more foreign direct investment (FDI) into Kazakhstan. The visa-free rules focus on the countries that not only invest in Kazakhstan, but also bring effective management and introduce new technologies into production.

 

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Kazakhstan launches $4 billion two-part bond 0

Posted on July 19, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #109

Kazakhstan is set to raise $4 billion through an offering of new 10-year and 30-year bonds.

Kazakhstan is selling $2.5 billion in 10-year bonds at 285 basis points over Treasuries and $1.5 billion in 30-year notes at 335 basis points over their U.S. equivalent.

Kazakhstan comes back to the international market after raising $2.5 billion in 10-year and 30-year bonds in October. The country is the first emerging-market sovereign to tap international capital markets after Gabon sold $500 million of 10-year notes last month. Developing-nation dollar bonds have strengthened their positions this month, with the average yield falling 20 basis points.

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Kazakhstan’s energy consumption to double by 2035 0

Posted on July 18, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #108

Kazakhstan is among 10 countries with the highest level of energy intensity of its economy, and this trend is not going to decline any time soon. According to Tomasz Telma, Regional Director of the International Finance Corporation for Europe and Central Asia, modernization of the Kazakh economy will be deeply related to a serious reduction in its energy intensity so that to decrease its dependence on the consumption of energy.

 

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Kazakhstan to remove limits on FDI in telecom 0

Posted on July 17, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #108

Kazakhstan plans to remove the limit on investments in the country’s telecommunications sector within 30 months of joining the WTO. A ceiling of 49 percent applies currently to ownership by foreign entities of Kazakhstan telecommunications companies.

Kazakhstan has concluded negotiations on joining the WTO, and is expected to join the trade organisation in the near future.

 

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