Kazakhstan Chamber of Commerce in the USA

KazCham


Archive for the ‘Innovation’


Kazakhstan 2016 Investor Guide 0

Posted on February 28, 2016 by KazCham

Embassy of Kazakhstan in the USA

Kazakhstan’s Ministry of Investment & Development has published a 2016 Investor’s Guide.

Investors will find actionable information about investment incentives, favorable tax regimes, special economic zones, priority sectors and available government resources. The guide serves as a useful market entry resource for companies looking at or new to doing business in Kazakhstan.

The 2016 Investor’s Guide is available on invest.gov.kz.

 

 

Print Friendly

New steel factory for Kazakhstan 0

Posted on February 10, 2016 by KazCham

Colibri Law Firm BI@colibrilaw.com

A new steel factory will be built in Southern Kazakhstan by the end of 2016.

The steel factory will be built in the Ordabasy district in the Kazakh-Turkish industrial zone and will produce up to 150,000 tonnes of pump housings and steel sheets per year.

The factory’s products, which will be sold on the local market, are also due to be exported in the near future.

Kazakhstan’s iron and steel industry produces about 12.5% of domestic industrial output and ranks amongst the 30 largest steel producing countries.

Print Friendly

Kazakhstan approves list of state companies offered for privatisation 0

Posted on January 14, 2016 by KazCham

Colibri Law Firm BI@colibrilaw.com

The government of Kazakhstan has approved a list of state companies to be offered for privatisation as part of its long-term privatisation plan for 2016-2020.

The plan approves a list of large state-owned companies and organisations that will be privatised, and includes the pharmaceutical company SK-Pharmacy, national space company Kazakhstan Garysh Sapary, state road enterprise Kazakhavtodor, Khorgos international centre of cross-border cooperation, the airport of Astana, the Almaty sanatorium, the Kazakh national film studio, the airports of Kostanai and Petropavlovsk, the Korkyt Ata airport in Kyzylorda, and the Duman entertainment centre in Astana.

The list for priority privatisation also includes the national railway company Kazakhstan Temir Zholy (through IPO), national oil and gas company KazMunayGas (IPO), national atomic company Kazatomprom (IPO), national post service Kazpost (IPO), airlines Air Astana (IPO) and Qazaq Air, national telecommunications operator Kazakhtelecom, the airports of Aktobe, Atyrau and Pavlodar, the Aktau international seaport, and the national agricultural holding KazAgro.

Print Friendly

China pledges $2 billion for a “capacity cooperation” fund with Kazakhstan 0

Posted on December 25, 2015 by KazCham

Colibri Law Firm BI@colibrilaw.com

The $40 billion “Silk Road” fund, set up last year to boost connectivity across Asia, has agreed to contribute $2 billion to a new investment fund to support “capacity cooperation” with Kazakhstan.

China has been trying to promote similar cooperation with other countries, under which local firms export some of their huge production capacity as they build infrastructure and factories overseas.

Chinese Premier Li Keqiang held talks with his Kazakh counterpart Karim Massimov in Beijing on Monday, vowing to step up bilateral cooperation in industrial capacity, agricultural products, energy and regional connectivity.

Print Friendly

Tenants could ski out their front door at new flats in Kazakhstan 0

Posted on December 19, 2015 by KazCham

Telegraph

Residents at a proposed apartment building in Astana would be able to ski or snowboard down a 1,000ft slope linking the roof to the ground.

A new housing complex planned in Astana, Kazakhstan‘s capital, is set to include a 1,000ft ski slope, running from the roof to the ground.

The proposed project was devised by a group of architects, led by Shokhan Mataibekov, who were inspired by Kazakhstan’s exceedingly long, cold winter.

The city of Astana experiences temperatures averaging around -20°C, with a long winter lasting from November right through to April – but there are currently no slopes nearby for skiers and snowboarders to make the most of the conditions.

Enter House Slalom, a multi-purpose, 21-storey building comprised of shops on the ground floor, 421 flats on the upper floors, and an outdoor ski slope running alongside the building.

Plans have been submitted, and the project is currently awaiting approval from city officials.

If successful, the building would be the first of its kind in the world according to Mr. Mataibekov, formerly Astana’s chief architect.

He added: “It would be an instant hit for ski and snowboard lovers”.

The run has been designed to offer year-round snow sports – constructed from Snowflex, a synthetic material designed to simulate the slip and grip effects of real snow, the slope would be equally accessible in the summer months.

Print Friendly

Law on Public-Private Partnerships signed in Kazakhstan 0

Posted on December 16, 2015 by KazCham

Colibri Law Firm

In a major legislative development, Kazakhstan is implementing a new law on public-private partnerships. As such, our team has prepared an extended overview of the major aspects of this new law, which is due to enter into force next week on 23 November 2015.

Kazakhstan’s President Nazarbayev has signed the Law “On Public-Private Partnership” (the “Law”) which provides for the conditions of cooperation between the state and private businesses in Kazakhstan. The law is aimed at ensuring the country’s sustainable social and economic development and will enter into force on 23 November 2015.

The Law regulates the main approaches and phases for the implementation of public-private partnership (PPP) projects, and outlines the challenges, principles and defining characteristics of PPPs. It also provides guarantees for the rights and interests of the participants of PPPs, the forms of their participation in projects and the means of state support.

The participants of PPPs include: (i) the state (ii) entrepreneurs and (iii) financial organisations that provide project financing. The Law stipulates the conditions for sources of financing for PPP projects, the reimbursement of expenses to subjects and income generation.

The Law also stipulates that a private partner may be selected on the basis of (i)a tender or (ii) direct discussions. It also defines the qualification requirements that a potential private partner must satisfy in order to participate in a tender process, the conditions for a tender process and the procedure for the conclusion of PPP agreements.

Specifically, the new definitions include the following:

  • Private partner” – a sole entrepreneur, partnership, consortium or legal entity, except for persons acting as public partners in accordance with the Law, entered into a public-private partnership agreement;
  • Public partner” – the Republic of Kazakhstan, on behalf of which the Government of the Republic of Kazakhstan or local executive body of the region, city of republican status and the capital, as well as their other authorised state authorities and subjects of quasi-public sector, 50% and more of voting shares (interests in the charter capital) of which are directly or indirectly owned by the state, concluded a public-private partnership agreement;
  • Public-private partnerships” – a form of cooperation between the public and private partners corresponding to the characteristics defined in the Law;
  • Direct agreement” – a written agreement between the public partner, private partner and creditor of a private partner for the implementation of a public-private partnership project of special importance.

In addition, President Nazarbayev has signed the Law “On amendments and additions to some legislative acts of the Republic of Kazakhstan as to the public-private partnership”. The purpose of this legislative act is to bring current Kazakh legislation into compliance with the new Law.

This Law is also aimed at implementing some of the “100 Concrete Steps” and regulates the issues involved in attracting investment for the construction of infrastructure for the Kazakh population.

Print Friendly

Expert Group Discusses Legal Status of Caspian Sea 0

Posted on December 06, 2015 by KazCham

Astana Times

The 42nd regular session of the working group on the Convention of the Legal Status of the Caspian Sea opened at the Kazakh Foreign Ministry in Astana Nov. 18.

Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan have been negotiating the legal status of the inland body of water since the early 1990s, when the issue arose following the collapse of the Soviet Union and the appearance of four new states on its shores. “During the negotiation process, Kazakhstan has since the beginning followed a compromise approach that takes into account the interests of all riparian countries. For this reason, Kazakhstan’s position on the main aspects of the legal status of the Caspian Sea was spread as an official document of the United Nations (UN) in 1997 and to date remains consistent and unchanged,” said Kazakh Foreign Minister Erlan Idrissov, explaining Astana’s position.

Kazakhstan’s approach is based on the need to establish the territorial waters, fishing zones and common water space in the Caspian Sea in accordance with the provisions of the 1982 United Nations Convention on the Law of the Sea to ensure the political and economic interests of the littoral countries.

“Concerning delimitation of the Caspian Sea bottom, Kazakhstan adheres to the position that it should be divided among the littoral states on the areas within which they have the sovereign right to conduct exploration and development of the natural resources of the Caspian shelf,” said Idrissov.

He suggested it would be advantageous to carry out delimitation of the Caspian Sea in accordance with existing international methods and practices based on the agreement of neighbouring states, taking into account generally-recognised norms of international law.

“Currently, Kazakhstan has concluded appropriate bilateral agreements with Russia, Azerbaijan and Turkmenistan which ensure the international legal framework for development of oil and gas reserves in the northeastern part of the Caspian Sea, thus creating an attractive and stable investment climate,” said the Kazakh minister.
The settlements indicate delimitation of the Kazakh sector of the sea bottom is almost complete, he said.

Regarding the order of navigation, Idrissov suggested the position which fully corresponds to the decisions of the fourth summit in Astrakhan. Thus, Kazakhstan recommended establishing a uniform regime in the national sovereignty area in accordance with the basic provisions of the law of the sea for all kinds of vessels, except warships. The authorisation procedure needs to be applied to warships to pass through the territorial waters.

In marine areas beyond the territorial waters, Kazakhstan proposed establishing freedom of navigation, based on the condition that vessels respect sovereign and exclusive rights of riparian states for the use of mineral resources and biological resources fishery.

The laying of pipelines and transit is extremely important to the interests of each state, said Idrissov, because it directly affects the degree of economic development, as well as international trade and economic relations in particular.

Print Friendly

Kazakhstan eyeing terminal at Mundhra to boost bilateral trade 0

Posted on December 01, 2015 by KazCham

Business Intelligence

Kazakhstan is keen to build a terminal at the Mundhra port on India’s western coast, which would provide direct connectivity with Iran’s Bandar Abbas port and thereby help Indian goods get direct access to Central Asia and beyond via the Iran-Turkmenistan-Kazakhstan railway line.

“The due diligence report for the Mundhra terminal is being done, and after that they will take a decision on completing the contract,” said Kazakhstan’s Ambassador to India, Bulat Sarsenbayev. “The Mundhra project is very important. Once completed it will change the whole logistics of moving goods from India to Kazakhstan and through Kazakhstan to Central Asia, to Russia, China and Europe.”

The 930km Kazakhstan-Turkmenistan-Iran railroad link connecting Central Asia to the Persian Gulf was inaugurated in December 2014. The railway line is part of the ambitious International North South Transport Corridor (INSTC), which is a ship, rail, and road route for moving freight between India, Russia, Iran, Europe and Central Asia.

Print Friendly

Astana Seeks to Get Into Top 50 ‘Smart’ Cities 0

Posted on November 04, 2015 by KazCham

Astana Times

Akim (Mayor) of Astana Mr. Adilbek Dzhaksybekov launched a series of “Smart” projects in July. Smart Astana project includes several directions, such as Smart Clinics, Smart Schools, Smart Street Lighting and Smart Payments.

“In order to avoid queuing, to create comfortable conditions, to regulate the flow of adults and children, as well as to exclude their intersection at the reception and near specialists’ offices, we introduced the Triage System, which allows hospitals to receive visitors depending on the type of their treatment and on the severity of their condition. These passages do not overlap with each other, which is essential for the maintenance of the sanitary-epidemiological status of the facility and for the prevention of the spread of various diseases,” said the head of the Astana Health Department Yerik Baizhunussov.

The innovations will also include the introduction in 2016 of electronic medical records for patients in all medical organizations to eliminate paperwork and increase convenience.

The concept of Smart Astana was created to improve the quality of life of the population of the capital.

Smart Astana was created and is being implemented by Astana Innovations to create conditions and infrastructure to become one of the top 50 Smart cities of the world. All Smart projects are being implemented by investors without the involvement of public funds.

 

Print Friendly

Astana International Financial Centre to Cement its Place in Global Finance 0

Posted on November 02, 2015 by KazCham

Astana Times

The world’s great financial centres of New York, London, and Tokyo have led the way in economic prosperity for decades. But the giants are now facing competition from dozens of smaller, ambitious challengers. Cities in Asia, the Middle East and Africa can increasingly offer investors better access to some of the world’s fastest growing financial markets.

Among the cities moving up the financial ranks, catching up to Dubai, Shanghai and Johannesburg, is Astana.

President Nursultan Nazarbayev clearly sees the city’s potential. At the Astana Economic Forum (AEF) earlier this year, he announced his plan to create the Astana International Financial Centre (AIFC), an ambitious project to cement Kazakhstan’s position as a leading centre for finance.

The AIFC has a number of objectives. It will attract foreign investment, open up the Kazakh banking sector and make it easier for insurance companies and Islamic finance institutions to do business. It will attract world leaders in financial services, which in turn will promote best practices in Kazakhstan. It can be expected that the AIFC will boost Kazakhstan’s economic stability and help the country along the path to becoming a top 30 global economy by 2050.

The AIFC will launch against the backdrop of challenges affecting countries throughout Eurasia. President Nazarbayev has spoken of three such challenges: uncertainty and conflict in Europe and the Middle East, climate change and food security. The nature of such threats demands cooperation between nations and action from international institutions, such as the United Nations. But the Kazakh President is clear: Kazakhstan can help mitigate these threats to its own future by taking action now. That means diversifying the economy and tapping into new financial opportunities. The AIFC can play a role in both.

Set to officially launch on Jan. 1, 2018, the AIFC will use the innovative infrastructure already built for EXPO-2017. It will be modelled on Dubai’s own financial center. Like Dubai, the AIFC will feature a financial court with international judges and a legal framework based on the principles of English law. English will also be used in official documentation and court proceedings. This will reassure investors and promote transparency and best practices.

The new center will see the National Bank and the Kazakhstan Stock Exchange relocating from Almaty to Astana. The President has also proposed listing the five most successful companies in the Samruk Kazyna Sovereign Wealth Fund on the stock exchange. Both these measures will offer new opportunities to investors and boost growth for Kazakhstan.

The center represents an unprecedented opportunity for Kazakhstan to strengthen its economy and attract world class international investment. The AIFC can only be seen as a significant step forward in turning Astana into the financial capital of Central Asia.

Print Friendly



↑ Top