2. Meet Beibut, Rinat, Sasha, Nazym, Karina and Igor. They all have a stake in Kazakhmys because, like so many people in
Kazakhstan, they benefit from our investment in the community. For example, their nursery in the city of Zhezkazgan is
funded by Kazakhmys. We also finance the building of schools, hospitals and infrastructure: $88 million last year alone. Why?
Because we believe in sharing our success with the nation that provides our resources. We are the world’s tenth largest
producer of copper, and our processes are fully integrated from mining to finished metal. We also produce silver, gold
and zinc. And with $2.7 billion worth of new finance in place, we’ve begun major growth projects to build on our success.
Which is great news for Beibut and his friends. After all, what’s good for Kazakhmys is good for Kazakhstan. www.kazakhmys.com
16. OVERVIEW: INVESTING IN KAZAKHSTAN
Kazakhstan has used the crisis to push forward ambitious reforms
in banking and investments in infrastructure, writes Anthony Robinson
Kazakhstan’s central bank
chairman, Grigory Marchenko,
was rehired by President
Nazarbayev to push through
tough bank restructuring
20. OVERVIEW: THE ECONOMY
As Kazakhstan emerges from the economic slowdown, the
country is moving from strength to strength and is working to
diversify and industrialize its economy. Clare Nuttall reports
23. OVERVIEW: INTERVIEW WITH THE PRIME MINISTER
Sheridan Prasso asks Prime Minister Massimov
about foreign policy, diversification and
investing in Kazakhstan
24. Chinese President Hu Jintao
(right) with Kazakhstan Prime
Minister Karim Massimov.
Kazakh-Chinese relations are
good. China and Kazakhstan
have reached an agreement
over the joint management of
MangistauMunaiGas
OVERVIEW: INTERVIEW WITH THE PRIME MINISTER
26. OVERVIEW: INTERNATIONAL RELATIONS
U.S. President Barack Obama
holds a bilateral meeting
with President Nursultan
Nazarbayev of Kazakhstan
at the Blair House, April 11,
2010 in Washington, D.C.
Kazakhstan’s foreign policy promotes mutually beneficial economic and
political cooperation with all its neighbors. Now, as chair of the OCSE,
Kazakhstan’s international relations are being examined. Joanna Lillis reports
27. OVERVIEW: INTERNATIONAL RELATIONS
Kazakhstan is well-advanced
in its World Trade Organization
(WTO) accession talks, which
have been under way since
1996, and hopes to make further
progress this year. Three core
issues remain in Kazakhstan’s
multilateral negotiations with the
WTO: intellectual property; sanitary
and phytosanitary standards; and
technical barriers to trade. The WTO
is also seeking more information
from Kazakhstan on domestic
subsidies to agriculture.
In terms of the bilateral negotiations
which are under way in parallel
as part of the accession process,
Kazakhstan has reached bilateral
agreements with 22 member states
and continues negotiations on access
to markets with seven members: the
United States, the European Union,
Ecuador, Mongolia, Taiwan, Saudi
Arabia, and El Salvador.
Plans for Kazakhstan to enter
the WTO as a bloc inside its new
Customs Union with Russia and
Belarus have been shelved after
indications that it would complicate
the accession process. The states of
the Customs Union – which came
into force on January 1 and aims to
introduce a Single Economic Space
in 2012 – decided to continue
separate WTO accession talks
but to synchronize their positions
throughout the process.
DRIVE FOR WORLD TRADE ORGANIZATION
MEMBERSHIP
28. ABOUT US
Alex Stewart International Corporation Kazakhstan was formed
12 years ago and is part of the Alex Stewart International Group.
During these past 12 years great strides have been made in
establishing the business and our efforts have been rewarded
with the opening of an independent laboratory in 2007 in Ust
Kamenogorsk city. In addition, future expansion will move into
the environmental businesses and laboratories will be opened in
strategic locations.
ASIC’s MISSION
ASIC’s mission is to provide professional inspection services in
quality control of products and conformance to international
standards.This is achieved via comprehensive assistance to
companies in the field of development and implementation of
advanced technologies and management techniques oriented
towards assurance of quality and safety of product.
TARGET MARKET
Since being accredited in Kazakhstan and Central Asia,Alex
Stewart International Corporation has gained significant
recognition and now co-operates successfully with leading
domestic procedures, their trade intermediaries and financial
companies. At the present time representatives of ASIC are active
in more than 20 cities of the Republic of Kazakhstan, as well as
in the Republic of Uzbekistan,Tajikistan and Turkmenistan, where
services provided by ASIC are in great demand from companies
seeking to improve the reputation of their brands and enter the
market with competitive products.
SERVICES
Alex Stewart International Corporation (ASIC) bases its activity
on the principles of responsibility, impartiality, professionalism and
confidentiality.
MAIN ACTIVITIES
£ Inspection services
£ Company monitoring
£ Radioactivity testing
£ Sampling, sample preparation, analysis and product expertise
£ Consultancy
£ Certification
£ Training
INSPECTION SERVICES
ASIC provides independent inspection services,which include:
£ Quantity and quality control of products
£ Inspection of condition of transport and reservoirs
£ Photo inspection
£ General analysis of a company (production)
£ Port and survey services
£ CMA Control of Warehouses
LABORATORY SERVICES
The Laboratory,Alex Stewart International Laboratory, in
Ust-Kamenogorsk, Kazakhstan provides high quality analytical
services for mining and geological companies and also for
organisations on environmental protection. The Laboratory can
offer the following services;
£ Sample Preparation
£ Geochemical Analysis
£ Multi-Element Analysis
£ Metallurgical Testing of Ore
£ Environmental Analysis
Alex Stewart
International Corporation
World Leaders in Inspection, Sampling and Analysis
Metals ● Minerals ● Commodities ● Agriculture ● Environmental ● Coal and Coke ● Solid Fuel ● Oil & Petrochemicals
ASIC Operations
Argentina
Australia
Brazil
Bulgaria
Chile
China
Ecuador
Egypt
Estonia/Finland
India
Indonesia
Iran
Iraq
Japan
Kazakhstan
Korea
Latvia
Macedonia
Malaysia
Norway
Peru
Philippines
Portugal
Romania
Rwanda
Saudi Arabia
Singapore
Spain
Syria
Taiwan
Thailand
Turkey
U.K.
Ukraine
United Arab Emirates
USA
Vietnam
Zambia
Alex Stewart International
42V Ivanilov St., 050059 Almaty, Kazakhstan
Tel: Fax: +7 (727) 2 717 127
Email: asakaz@rambler.ru bmakanov@alexstewartinternational.com
Alex Stewart International Corporation
Head Office, 20 Sefton Business Park, Netherton, Liverpool L30 1RD, U.K.
Tel: Fax: +44 (0)151 523 3760
Email: alex.stewart@alexstewartinternational.com
Please visit the Alex Stewart International Network www.alexstewartinternational.com
29. OVERVIEW: INTERNATIONAL RELATIONS
Chinese Premier Wen Jiabao
meets Kazakhstan’s Prime
Minister Karim Massimov
during a welcoming ceremony
for the Shanghai Cooperation
Organization Summit, October
2009, Beijing, China
30. OVERVIEW: KAZAKH-U.S. RELATIONS
U.S. companies have stood by Kazakhstan through good
times and bad. Peter Galuszka looks at the countries’
economic partnership and the role of U.S. investment
U.S. oil/gas production and refinery
engineers study a 3D map projection of oil
reserves for an area near the Caspian Sea
32. WE HAVE THE ENERGY TO LEAD
The RWE Group is one of Europe’s largest energy corporations and we continue to work hard on building
still further on that position. Some 20 million electricity customers and 10 million gas customers across
Europe already rely on the RWE Group. Our customers and partners benefit from our extensive experience,
reliability and expertise in all activities related to energy.
We firmly believe that Kazakhstan, Azerbaijan and Turkmenistan, indeed the whole Caspian Region,
represent an attractive investment opportunity for RWE. Kazakhstan’s many years of experience in the gas
industry make it an excellent prospect for a long-term business partnership and investment. Kazakhstan and
its Caspian neighbours have vast energy resources and can make a significant contribution to Europe’s drive
for energy security. The region will play a strategically important role, especially in the diversification of
Europe’s gas supplies in the years to come. RWE’s expertise, investment capabilities and partnership values
in the upstream, midstream and downstream energy business provide the essential ingredients for the
development of a beneficial long-term energy partnership with Kazakhstan.
One step in this direction is the memorandum of understanding with Kazakhstan’s state assets management
holding company, Samruk, for a joint study into the use of coal gasification and synthetic natural gas in
Kazakhstan. This example shows that together we can further strengthen the mutual benefits entailed in gas
procurement activities. A successful study could provide Kazakhstan with an alternative usage of its vast
coal resources and also provide RWE with opportunities for gas procurement in Kazakhstan in the long term.
33. OVERVIEW: KAZAKH-U.S. RELATIONS
China is quietly investing
more in Kazakhstan
as it seeks energy,
metals, cement, and
transportation links
to feed its hunger for
resources at home.
“China is growing very
fast and is emerging as
a very serious investor,”
says Ambassador Erlan
A. Idrissov.
Chinese foreign direct
investment from 1993 to 2008
totaled about $3 billion – roughly the
same as Canada, South Korea and
Russia. That’s about to change in a big
way. The U.S. government reports that
China agreed to $13 billion in new
investments in Kazakhstan in 2009.
The oldest major project – the
Kazakhstan-China oil pipeline –
was completed ahead of schedule.
Commenced in 1997, the 1,384-
mile pipeline links Kazakhstan’s
major hydrocarbon fields near Atyrau
across Kazakhstan to the Chinese
border. The last phase of the project,
owned by China National Petroleum
Corporation and KazMunaiGas,
opened ahead of schedule in mid-
2009. The pipeline is producing
180,000 barrels per day and is
expected to increase to 400,000.
In a related development, China’s
sovereign wealth fund, the China
Investment Corporation, bought
11 percent of KazMunaiGas, worth
$939 million, in September 2009.
Keen interest is also evident in
nuclear power. China has 20 new
nuclear units under construction.
Kazatomprom, Kazakhstan’s chief
uranium producer, has agreed to be
China’s main supplier. Westinghouse,
with its 10 percent ownership by
Kazatomprom, is building four
AP1000 reactors in China.
Working with the Kazakh National
Welfare Fund, China is providing
technology and equity financing for
modernizing the Atyrau Oil Refining
Plant, equity financing for a cast iron
production facility, plus $10 billion
in export financing by the Export-
Import Bank of China.
And China is helping build the
Zhetygen-Korgas railroad that will
shorten the route between China and
the Middle East, as well as construct
the highway dubbed the “21st
Century Silk Route” that will cut
transport time from Europe to China
from 45 to 11 days.
As Kazakhstan develops, relations
between Beijing and Astana are
likely to mature, especially as
China’s energy demands continue to
grow dramatically.
CHINESE INVESTMENT SURGES DURING CRISIS
35. OVERVIEW: KAZAKH-U.S. RELATIONS
November 2010 will witness the third Kazakhstan-U.S. Investment Forum,
now an established part of the annual U.S. industrial investment event calendar
Bolat Zhamishev,
minister of finance
of Kazakhstan
Dr. Kairat Umarov,
deputy foreign minister
of Kazakhstan
Daniyar Akishev, deputy
chairman of the National
Bank of Kazakhstan
William Veale, executive
director, U.S.-Kazakhstan
Business Association
Ross A. Mauri, general
manager, IBM
David M. Rubenstein,
co-founder and managing
director, The Carlyle Group
Olivier Sarkozy, managing
director and head, Carlyle
Global Financial Services
H.E. Erlan A. Idrissov,
ambassador of the Republic
of Kazakhstan to the U.S.
Prime Minister Karim
Massimov
H.E. Richard Hoagland,
U.S. ambassador to the
Republic of Kazakhstan
37. OVERVIEW: MAP OF THE REPUBLIC OF KAZAKHSTAN
Above 1,000,000 inhabitants
From 100,000 to 1,000,000
From 10,000 to 100,000
Less than 10,000 inhabitants
The capitals of the states
Region centers
Other towns
Settlements
Rural inhabited localities
District centers
COMMUNICATIONS
Railways
Republican automobile roads. Passes
Other automobile roads
Sea ports and piers. Lighthouses
BORDERS
State
Region
Scale 1: 3,000,000
INHABITED LOCALITIES
43. datoba
designandbuildconsultantsengineeringarchitectureprojectmanagement
Full service EPC contracting
In house multidiscipline engineering &
architectural design
Project management
Complete project life cycle approvals
In Kazakhstan since 1995
Commitment to staff training &
development
International standards & quality
ISO 9001:2000 registered
Our Clients:
Caspian Services
Credit Suisse
Ernst & Young
McDermott
Procter & Gamble
Air Astana
Gallaher JTI
Aroma
Roxi Petroleum
Contact:
Nigel Croft - Business Director
nigelcroft@datoba.kz - www.datoba.kz
+7(727) 267 12 23/24/25/26/27
The Kazakh International Company
Office Fit-outs and Bespoke Facilities
Industrial + Manufacturing
Oil & Gas Support Facilities
Hospitality + Commercial
44. W H E N Y O U ’ R E
S U R R O U N D E D B Y
N O T H I N G …
you might as well ask for
everything.
Sode xo Remote Sites turns yo ur site i nto a
home away from home , even by -40° or even i n
ro ugh seas, helping yo u to attract and retai n
ta lents and to boost yo ur site producti v i ty.
Wit h a proven experience in 40 countries, our
te ams deploy skills and ingenuity, day i n and
day out, to deliver Quality of Life sol uti ons
that go beyo nd yo ur expectations.
Удаленные объекты Содексо превратит ваше далекое от
дома место в уютное и домашнее, даже при температуре
-40 °, а порой и в самые жесткие климатические условия,
мы поможем Вам привлечь и сохранить таланты и повысить
Вашу производительность работы на участке. День за днем, с
доказанным опытом в 40 странах наши команды развертывают
навыки и изобретательность, чтобы реализовать решения
для качественной жизни, которые превзойдут все Ваши
ожидания.
Sodexo office in Atyrau - 116 A, Azzatyk Av. - P.O. Box 060011- Atyrau - Kazakhstan - Tel: +7 7122 456871
Sodexo office in Aktau - Microregion 2, blg 47 - Aktau - Kazakhstan - Tel: +7 7292 740090
For more information, please contact: hassene.benthabet@sodexo.com
www.sodexo.com
PhotoCredit:Corbis.
45. INDUSTRIAL DEVELOPMENT
Anthony Robinson looks at what the government’s new tax laws,
plans to modify production-sharing agreements, and higher oil
prices mean for Kazakhstan’s oil industry
47. Central Asia
North Africa
Middle East
North Sea
Canamens Energy Central Asia
Limited Kazakhstan Branch
Қазақстан Республикасы
050012, Алматы қ.
Əл-Фараби даңғылы 13
«Нұрлы Тау» Бизнес-орталығы
1В блогы, 601 офис
Телефоны: +7 727 311 1050/1051
Факсы: +7 727 311 1049
Canamens Energy Central Asia
Limited Kazakhstan Branch
Республика Казахстан
050012, г. Алматы
пр. Аль-Фараби 13
Бизнес-Центр «Нурлы Тау»
блок 1В, офис 601
Телефон: +7 727 311 1050/1051
Факс: +7 727 311 1049
Canamens Energy Central Asia
Limited Kazakhstan Branch
Suite 601, Block 1V
Nurly Tau Business Center
Al-Farabi Avenue 13
050012 Almaty, Kazakhstan
Phone: +7 727 311 1050/1051
Fax: +7 727 311 1049
For further information:
info.kazakhstan@canamens.com
www.canamens.com
About Canamens
Canamens is a private equity funded upstream oil
and gas company.
Its aim is to acquire assets with existing or near-term
production opportunities, field developments with
related exploration potential and to build a small,
but focused, exploration portfolio.
Sector Asset Management and Goldman Sachs are its
two principal investors.
Over the next decade Kazakhstan will become one of the world’s largest
hydrocarbon producers and exporters, allowing the country to expand and
diversify its economy, stimulating growth and driving the continued prosperity
of the country.
Canamens believes it has a role to play in Kazakhstan’s future by applying
leading-edge technology and operational expertise to Kazakhstan's vast
hydrocarbon resources.
Having acquired an initial asset base and commenced activity to develop
these assets, Canamens is keen to expand its involvement in Kazakhstan.
Along with our local team based in Almaty, we will continue to build
relationships with local operators, contractors and service
providers as we unlock the value of our assets and
expand our portfolio.
Local partners. Local knowledge.
Operational success.
48.
49.
50. INDUSTRIAL DEVELOPMENT
Demand for electricity is high, with the
construction of new-generation capacity a
priority. Clare Nuttall looks at the government’s
plans to modernize Kazakhstan’s power
sector and keep up with demand
53. INDUSTRIAL DEVELOPMENT
With its strategic investment plans
and refinery modernization programs,
KazMunaiGas is set to become one
of the world’s major oil industry players.
Birgit Brauer reports
The KazMunaiGas headquarters
in Astana
54. INDUSTRIAL DEVELOPMENT
An off-shore oil platform under
construction in the Kashagan
field in the North Caspian sea.
The discovery of Kashagan’s
commercial reserve of around
13 billion barrels of oil in
2000 was one of the largest
finds in decades
55. XXXXXXXXXXXXXXXX
DOW has been operating in Eastern Europe for 50 years.
That is a key component of the company’s business
strategy and a significant contributor to Dow’s corporate
growth and profitability. Dow operates nine commercial
offices and eight production sites in the region and
employs about 600 people in different businesses and
functions across the region. Dow offers its customers
in the region a variety of plastics and chemicals sold to
a wide range of downstream industries. These include
automotive, oil and gas, packaging, building and
construction, furniture, wire and cable, large appliances,
water treatment and agricultural products. Sales in
2009 were about USD 2.4 billion, growing to USD 3.2
billion by 2015 and to USD 5.5 billion by 2015.
General Manager for Dow in Russia and the CIS
Marko Blagovic discusses the company’s activities in
Kazakhstan and its future prospects.
What is Dow’s strategy in Kazakhstan?
Kazakhstan is of strategic importance for Dow’s
diversified businesses and, specifically, it is a key
growth market for Dow AgroSciences, Dow Oil & Gas
and Dow Water & Process Solutions.
What is Dow Water & Process Solutions’ contribution
to the 2009 boom in the Kazakh mining industry?
Dow Water & Process Solutions is one of the leading
suppliers in Kazakhstan of ion exchange resins for the
mining industry. Since 2004, uranium-mining industry
in Kazakhstan has been constantly developing and
demonstrating growth potential for the local players, as
well as for international companies like Dow. And we
have secured our stable position in the local market,
becoming the key supplier of ion-exchange resins
developed by Dow Water & Process Solutions for
subsidiaries of the state corporation Kazatomprom,
which is one of the leading uranium production
companies in the world. Today, Dow accounts for a
relevant market share of resins supplied to mining and
energy companies in Kazakhstan.
Mining and chemical industries are facing a series
of issues when recovering valuable and precious
metals such as decreasing ore quality, environmental
and health and safety concerns, as well as fire issues
linked to solvent extraction. Ion exchange technology
can purify, concentrate and recover a great variety of
precious and valuable metals such as gold, uranium,
nickel and cobalt from leach liquors, electrolytes,
wastes or solvent extraction raffinates. Among the
benefits of ion exchange resins are substantial waste
volume reduction, minimal space, and easy recovery
of process water. In addition, this technology is easily
adapted to a great variety of processes including moving
packed beds or resin-in-pulp, the latter process driving
significant capital expenditure reduction.
What are your plans for the future?
We will continue to invest in innovative solutions,
world-class resources and – most importantly - people.
In 2009 Dow invested $1.6 billion globally. On April 1
we acquired Rohm and Haas which has allowed us
to combine two best-in-class technologies, strengthen
and broaden our market base and accelerate Dow’s
transformation into the world’s leading specialty
chemicals and advanced materials company.
The challenging times have not affected our plans
for the Former Soviet Union. On the contrary the Dow
Izolan joint venture’s state-of-the-art polyurethane
manufacturing facility in Vladimir (Russia) opened on
schedule in 2009 and is supplying the fast expanding
Russian and CIS market.
In Kazakhstan as in the rest of Dow’s East Europe
Growth Region, we focus on offering high quality
services and building long term relationships with
our customers, local communities and other national
stakeholders, addressing their needs in a timely,
innovative way with ecologically-friendly products
manufactured in strict adherence to the criteria of
sustainable development.
SPONSORED FEATURE
Dow Looks
to Kazakhstan
58. INDUSTRIAL DEVELOPMENT
As well as new pipes and
pumping stations, cross-Caspian
Sea oil tankers will be needed
to cope with the sharply
rising volumes of oil
and gas from Kashagan
59. Mubadala Oil & Gas is a
company with big ambitions
realizing opportunity
Algeria Bahrain Indonesia Kazakhstan Libya Malaysia Oman Philippines Qatar Thailand UAE Vietnam
62. INDUSTRIAL DEVELOPMENT
Kazakhstan’s oil industry is booming and the country will need to expand its
export pipelines to keep up with current oil production. Birgit Brauer reports
65. INDUSTRIAL DEVELOPMENT
With the world’s second largest deposits of Uranium,
Kazakhstan’s nuclear potential is clear. Opportunities
abound for foreign investors. Sheridan Prasso reports
68. INDUSTRIAL DEVELOPMENT
Uranium pellets fill fuel rods
in this display of a nuclear
fuel assembly at the Ulba
Metallurgical Plant in
Ust-Kamenogorsk, Kazakhstan
69. Our energies
have a future.
A future without CO2.
-Illustration:H5
www.areva.com
World energy demand is increasing. Greenhouse gas emissions
must be curbed. To meet this dual challenge, AREVA is innovating.
As world leader in the nuclear energy business and as a group
committed to the development of renewable energies, AREVA offers its
customers solutions for producing electricity, while protecting the planet.
71. INDUSTRIAL DEVELOPMENT
Clare Nuttall and Serik Jaxylyk look at Kazakhstan’s alternative
energy potential and current wind, solar and biofuel initiatives
72.
73. INDUSTRIAL DEVELOPMENT
Anthony Robinson looks at current and future
investment initiatives to develop Kazakhstan’s
chemicals and petrochemicals industry
Workers check pipelines at the
Alashankou Oil Transporting
Station, 2.5km from China’s
Alashankou Port. The pipelines
receive crude oil from Kazakhstan
through the Kazakhstan-China
Oil Pipeline in Bole, in western
China’s Xinjiang province
74. INDUSTRIAL DEVELOPMENT
Sulfur pellets for export to
China to be used, primarily, as
fertilizer. Large amounts of sulfur
are being produced by the oil
and gas operators in the Caspian
Sea area of western Kazakhstan
as a by-product of the oil they
extract
75. INNOVATIVE AND SUSTAINABLE
SOLUTIONS FROM A GLOBAL LEADER
Sustainability requires making every decision with
the future in mind. It is our relationship with the world
around us — creating economic prosperity and
social value while contributing to the preservation of
our planet.
Dow focuses on developing products and solutions
that make sustainable improvements in the world,
significantly helping solve challenges such as
alternative energy, affordable and adequate food
supply, decent housing, clean water, and improved
personal health and safety.
52,000 highly qualified employees worldwide
214 manufacturing facilities in
37 countries across the globe
5,000 products that make the difference
For more information, visit www.dow.com
and www.doweasterneurope.com
E-mail: ikabanova@dow.com Phone: +7 495 663 78 20
Dow has been present in Eastern Europe for
already 50 years, offering a variety of base and
performance plastics and chemicals for a wide range
of downstream industries:
• automotive
• oil and gas
• packaging
• building and construction
• furniture
• wire and cable
• large appliances
• water treatment
• agricultural products
In Dow’s East Europe Growth Region, the Company
employs about 600 people at eight manufacturing
sites and nine office locations.
The recent new large and state-of-the-art polyure-
thane systems manufacturing plant was built by the
Dow Izolan joint venture company in Vladimir (Russia)
on December 11, 2009.
76. Minova Kazakhstan
100011, Kazakhstan, Karaganda
North prom zone
uchetniy block 018, building 014
Tel.: +7 7212 46 25 38
Fax: +7 7212 46 13 97
petr.olenchenko@minovaint.com
www.minova.kz
Solutions from Materials Technology
We offer a wide range of products designed to increase
safety and reduce costs to help increase mine productivity:
Polymeric resin capsules
Rock bolts
Polyurethane and phenolic resins (Bevedan-Bevedol, Geoflex)
Cement Products
Using polyurethane resins for roof and pipeline insulation
increases thermal efficiency.
For further information on our products or to find out
how Minova can help solve your problems
please visit our web site www.minova.kz
Minova Kazakhstan
Your reliable partner
for the mining industry
77. INDUSTRIAL DEVELOPMENT
Kazakhstan has some of the world’s richest mining resources. Anthony Robinson
looks at how the industry is faring in the current economic climate
81. Rio Tinto is a leading international business involved in each stage
of metal and mineral production. From operations in more than
50 countries, we produce aluminium, copper*, diamonds, coal,
iron ore, uranium, gold and industrial minerals (borates, titanium
dioxide, salt, talc, zircon). Our diverse portfolio, high quality assets
and expertise in technology and marketing give us the capability
to supply a wide spectrum of customers and markets.
Safe working and sustainable development are at the heart of
everything we do. Our worldwide operations provide long term
local benefits, including employment and training opportunities
for our neighbouring communities.
We are already in Kazakhstan, having been working in mineral
exploration and business development here for more than 12 years.
We’re committed to growing our business in the region and seeking
large, long life mining projects at various stages of development.
We’re looking forward to a long and successful relationship with
Kazakhstan and to continuing to be a partner of choice in the
metals and minerals business.
A partner
of choice in
metals and
minerals
82. INDUSTRIAL DEVELOPMENT
Kazakhstan’s agriculture sector is
seeing record harvests. Clare Nuttall and
Serik Jaxylyk look at the government’s
plans to increase the country’s farming,
processing, and exporting productivity
85. Full Challenger line of equipment
Flexible finance solutions
24/7 technical assistance
86. G4 City LLP is the initiator of the «Construction of four
satellite cities of Almaty» project, the largest project in
Kazakhstan and the Central Asia region. This project has
been considered and was approved by the President of the
Republic of Kazakhstan in 2007 and registered in the State-
Run Program of Housing Construction in the Republic of
Kazakhstan, 2008-2010.
The Master plans that have been realized within the
framework of the «Construction of four satellite cities of
Almaty» project were unanimously ratified by the Cabinet
members voting at the Government session of the Republic
of Kazakhstan. The Operator of this project is the Akimat of
Almaty region, the project monitor is the Ministry of Industry
and Trade.
The Largest Development Project
of the Central Asia region
Establishing itself as a leader in the social and economic development
among the countries of the region and possessing considerable territorial
advantage, Kazakhstan can play a key role in the Central Asia region,
converting itself into an attractive region of the civilized and secured world,
representing itself as a motive power, by making itself a place of interest
for world investors in development of all regions of Central Asia
Dmitriy Pak
The General Director of G4 City LPP
The «Construction of four satellite cities of Almaty» project
has strong potential for private and institutional investors.
The project has high investment appeal, as it solves
problems of state significance effectively and by means of a
comprehensive approach.
The G4 City project involves the creation of four unique
cities under the names of Gate City, Golden City, Growing City
and Green City.
The total area of the project is 8006.7 ha. Four satellite
cities will be located along the Republican Highway that links
the City of Almaty with the lakeside town of Kapchagai and
then continues north further into the Almaty region.
This large project, unprecedented in size in Central Asia,
plans for the construction of satellite cities that will possess
87. great potential and will provide economic and social benefits
both for the state and participants of the project, and for the
final consumer.
The project corresponds to world standards in its technical
and economic features. Furthermore, the development area,
building volumes, population and GDP of the cities were
planned in accordance to those standards.
“Kojankus” residential area is the first complex of the
satellite city Gate City and is independently considered as
a separate project. The conceptual basis of the project, to
develop 181 hectares, lies in the north and is defined by a
suburban part of Almaty.
The area is located in the environmentally friendly city
district. The idea of the “Kojankus” project harmoniously
combines urban and rural elements located in an ecologically
advantaged district.
Considering that convenient public transportation connects
“Kojankus” with the city of Almaty, many of the future
inhabitants of the area could conveniently work in Almaty.
Kazakhstan has established itself as a leader in social,
cultural and economic development among the countries of
the region, and possesses a considerable territorial advantage,
thus Kazakhstan can and does play a key role in the Central
Asia region.
Recently, foreign investors have had a considerable interest
in the Kazakhstan market. By expert estimations, more than
eighty percent of all direct investments to Central Asia have
been received by the Kazakhstan economy during recent
years. Our country has been included in a list of twenty
of the most attractive countries in the world, in terms of
investments, by the World Bank. The investment mode of
Kazakhstan can be characterized as liberal, providing access
for foreign investors practically in all branches of the economy.
The World Bank says Kazakhstan is one of the most attractive
countries for investment.
The unprecedented size of this development project, in
Central Asia, of the satellite cities provides great potential and
economic and social benefits both for the state and project
participants, and for the final consumer. This unique large-
scale project is especially interesting because the building of
the infrastructure and social objects is partially financed by
the Government, providing proof of the project’s soundness
and profitability.
Thus, within the State-Run Program of Housing
Construction, 2008-2010, in Kazakhstan the funds of 13.49
milliard tenge ($89.9 million) were allocated to the satellite
cities project.
Besides, one of the most crucial trends in the state
project is an innovative industrial policy and development of
energy sources for 2003-2015. The project aims to develop
industries and science potential in the Republic of Kazakhstan
which would allow production of new hi-tech products for
internal markets as well as for export, and provide an import
substitution policy, which in general will help Kazakhstan to be
one of the fifty most competitive countries of the world.
First of all, this will motivate a reconstruction of current
production powers and a transfer of large production
enterprises of Almaty into the industrial satellite city area. This
will also facilitate establishment of new science-cum-education
and science-cum-production complexes.
A lot of attention has been given to developing inter-regional
and international relations in the framework of the industrial
satellite city. This is being done in order to support competitive
industries and exploit a transit potential of the region, as
well as developing education and a highly-skilled personnel
re-training system for industry on the basis of higher and
secondary educational institutions located in satellite cities in the
framework of the project.
Investing in this project will be profitable and investments
will have a high rate of return. Co-development and mutual
participation in the project will establish a joint venture in
Kazakhstan with equal shares.
In addition, the project covers a number of directions in
which the development of the economy of the region can
go: rental housing construction, building and transferring of
the industrial enterprises from Almaty to the territory of the
Growing City, and tourism development in the Green City.
Thus, the consumer base will be created, and its maximum
concentration will be in the Almaty region at all stages of the
project’s implementation.
Great attention is being given to creating an appealing
investment climate by the development of the financial
structure, systems of investing formation of satellite cities
on the basis of mechanisms of concession, public-private
partnership, private investment and business development.
89. INDUSTRIAL DEVELOPMENT
The government’s “Road Map” program has
made some valuable steps forward, but there
is still room for improvement in Kazakhstan’s
construction industry, says Alima Bissenova
New buildings mark the Astana
waterfront. The government is
seeking to create housing for
Kazakhstan’s aspiring middle class
90. INDUSTRIAL DEVELOPMENT
New houses in Astana: the
construction of residential
buildings is on the rise again
and slowly recovering from
the financial crisis
91. PASCHAL-Werk G. Maier GmbH
Kreuzbühlstraße 5 · 77790 Steinach
Phone: +49(0)7832/71-0 · Fax: +49(0)7832/71-209
service@paschal.de · www.paschalinternational.com
PASCHAL-Werk G. Maier GmbH · Representative Office
Dostyk av. 114, office 38 · 050051 ALMATY · Republik Kasachstan
Phone: 007-72 7 328 33 38 · Fax: 007-72 7 262 11 10
service@paschal.kz · www.paschal.kz
The PASCHAL Group is a leading international
company in the area of formwork and shoring.
We offer solutions around the globe with
service, formwork and shoring systems, as well
as software. We support our customers with
our experience and our know-how in more
than 60 countries.
Service in Formwork + Shoring
Welcome
to the new world
of concrete construction
www.paschalinternational.com
92.
93. BANKING AND CORE SERVICES
With reforms and financial
regulation taking place,
Kazakhstan’s banking sector
has changed dramatically.
Clare Nuttall reports
94.
95. BANKING AND CORE SERVICES
ISLAMIC BANKING
In another development, the government also adopted
new legislation in 2009 aimed at creating a market
for Islamic financial services in Kazakhstan. It is the
first CIS country to do so, and the project has strong
support from President Nursultan Nazarbayev and
other top officials.
When it obtains its banking licence, the United Arab
Emirate’s Al Hilal bank is set to become the newest
player on the Kazakh market. Al Hilal planned to invest
$1 billion within its first four years in Kazakhstan,
bank CEO Mohamed Jamil Berro announced in March.
“There are strong ties at all levels between Abu Dhabi
and Kazakhstan, vast investment opportunities in
Kazakhstan, and an opportunity for us to contribute to
the growth and prosperity of this country,” he said. The
Kazakh government is also planning to launch its first
sovereign sukuk – or Islamic bond – in 2010 for the
amount of up to $500 million.
96. BANKING AND CORE SERVICES
Investment in infrastructure is essential if Kazakhstan
is to diversify its economy, writes Birgit Brauer
97. BANKING AND CORE SERVICES
The European Bank for Reconstruction and
Development (EBRD), the largest investor in
Kazakhstan outside the oil and gas sector, plans to
invest around $1 billion into projects furthering the
diversification of the Kazakh economy.
The EBRD adopted a new strategy for Kazakhstan in
February 2010, setting out the priorities for its work
in the next three years. The bank aims to help the
country to emerge from the crisis with a diversified
economy and a more sustainable financial model.
“Helping the Kazakhstan economy to diversify is a
priority for us,” says Michael Weinstein, the EBRD’s
country director for Kazakhstan.
It plans to support the government’s economic
diversification program though equity and debt
investments, as well as help identify technical
assistance. Projects will be identified in
collaboration with the Ministry of Industry and
Trade and the Samruk-Kazyna National Welfare
Fund. “Momentum is building, and there is a
window of opportunity post-crisis but before oil
prices go through the roof again,” says Weinstein.
“We are proactively looking for new projects
in Kazakhstan.”
The EBRD has also shown its support for
Kazakhstan by planning to hold its 2011 Annual
General Meeting in Astana.
To date, the EBRD has invested more than
€2.4 billion in 108 projects, mobilizing additional
investment of more than €5.4 billion.
EBRD GROWS ITS ROLE IN KAZAKHSTAN
BY CLARE NUTTALL
98. CASE STUDY
Since its formation almost 60 years
ago, Energoprojekt has developed
into a complex business system
operating today in 22 countries.
Founded as a consulting company for
the design of hydro and thermal power
plants, through decades of business
activities, Energoprojekt entered many
different fields and obtained a strong
and respectable position in the fields of:
Contracting, Industrial Engineering
& Infrastructure including projects
of administrative, commercial, public,
apartment and other type of buildings,
hotels, hospitals, industrial solutions, oil
and gas processing and transportation;
irrigation systems, water and sewage
systems, highways, roads, subway
stations,railwaystations,tunnelsetc.and
Power, Ecology and Water Treatment
including projects of power generation
(Thermal & Hydro Power Plants), power
transmission&distribution(transmission
lines, substation, distribution systems &
networks) telecommunication systems
and networks, power control centers
& SCADA systems, potable and waste
water treatment plants .
Today, Energoprojekt can be found on
the lists of Top International Design firms
and International Contractors published
every year by the renowned American
magazine “Engineering News Record”.
Experience in Kazakhstan
Ageographicallyandbusinessdiversified
portfolio has enabled Energoprojekt to
avoid oscillations of the business cycle.
Following this approach to business
activities and anticipating promising
Kazakhstan market possibilities, at
the beginning of the new millennium
Energoprojekt opened two branch
offices in Kazakhstan – Energoprojekt
Visokogradnja Branch Office in Aktau
and Energoprojekt Niskogradnja
Branch Office in Almaty, and at the
beginning of 2010 we opened TOO
Energo Kaz company based in Aktau.
“As many times before, this move
proved to be the right choice,” said Mr.
Our positive experience in Kazakhstan’s booming Market
Vladan Pirivatrić, CEO of the Company.
“Throughhighlyprofessionalandefficient
execution of projects, Energoprojekt
established good business relationships
with major Kazakhstan Investors. We
also obtained a strong market position,
especially in the field of General
Contracting with main sectors of activities
in this area being the construction of
hotels, office buildings, shopping malls,
retail and commercial centers and
infrastructure projects, such as roads
and underground structures.”
In the last couple of years in
Kazakhstan we executed projects
including design, project planning
and project management, followed
by construction, supervision,
commissioning, training of client’s
personnel, maintenance and other post-
construction services.
Always maintaining the highest
standards of technology and quality,
Energoprojekt constructed the
Commercial and Business Centre in
Aktau (50.000 m2), the Commercial and
Residential Building in Uralsk (16.200
m2), the Residential Building (35.000 m2)
– an 18 storey building and Business and
Commercial Centre (16.000 m2), both
Almaty and Abay Metro Stations
Client: AO“ALMATIMETROKURILIS”,
Almaty
Contract period: 2006-07; 08-09
Almaly and Abay metro stations are
underground structures within the first
subway line of the city of Almaty in the
Republic of Kazakhstan. They were
constructed at the depth of 30 – 70 m
in the city centre. The project included
the construction of three tunnel tubes,
(diameter cca 90-100 m2) 815m long,
mutually connected by crossings with
platform constructions and slope-
sided passenger tunnels.
The project organization was very
complex due to limited access through
the transport tunnels, as the works
on the other 5 stations have been
executed simultaneously. Beside
applying the latest know-how and
technology for the construction of
underground structure, a significant
number of experts were trained for this
kind of structures.
Energoprojekt Niskogradnja
Branch office
144, Tchaykovskogo str. off. 253
050000 Almaty
Republic of Kazakhstan
Phone: 7 727 250 81 21
Fax: 7 727 250 23 96
E-mail: ep-niskogradnja@ducatmail.kz
99. Your reliable partner
www.energoprojekt.rs
CEO Vladan Pirivatric
in Atirau, and Almaly and Abay metro
stations within the first subway line of the
Metropolitan city of Almaty.
Kazakhstan, with its vast natural
resources, current development of
energy sectors as well as the potential
of becoming one of the world’s major
producers of hydrocarbons, metals
and minerals, puts Kazakhstan into
a position of becoming a profitable
growth engine in the Region. As an
international company, Energoprojekt is
here to stay and contribute significantly
with its vast professional experience
and know-how.
Energoprojekt
Bulevar Mihaila Pupina 12
11070 Belgrade, Serbia
Phone: + 381 11 310 10 10
Fax: + 381 11 311 42 00
Retail / Entertainment
Complex,Aktau
Client: TOO “Oil Real Estate”
LLC, Almaty
Contract period: 2006-09
This Retail / Entertainment Complex
of 50.000 m2 built area, consists of
a basement and three floors and is
situated at the north boundaries of the
city of Aktau.
In its architectural form this Complex
is a modern composition with elements
of traditional Kazakh architecture. A
modern fountain has been designed and
constructed on the square emphasizing
the main entrance of the Complex.
Thecomplexintegratesareasofvarious
activities, such as sport, leisure and retail.
It has a covered ice-skating rink, indoor
recreation facilities for various types of
exercise, such as aerobics, martial arts,
boxing, billiards, bowling, multifunctional
sports hall, indoor swimming pools – one
for public use and one for competitions –
a SPA center etc. It also has a multiplex
cinema, retail areas, various cafeterias,
bars and restaurants, a central bakery and
supermarket, significant office space, as
well as all necessary storage and technical
service areas. The complex also has
underground as well as open-air parking
and open-air sport facilities.
Energoprojekt Visokogradnja
Branch Office
Mikrodistrict 29a,
ex “Vahtovaja avtostancia”
13 000 Aktau
Republic of Kazakhstan
CASESTUDY
Phone: 8 (77292) 20 07 57
8 (77292) 20 07 56
Fax: 8 (77292) 20 33 70
E-mail: epvgaktau@mail.ru
100. BANKING AND CORE SERVICES
Rail and road projects such as the
21st-Century Silk Route highway are
boosting transit and promoting growth
in Kazakhstan, says Anthony Robinson
101. BANKING AND CORE SERVICES
Train carriages transport oil
in the Caspian Sea region of
west Kazakhstan. Ambitious
railway upgrades will ensure
quicker transit times for bulk
transportation
105. BANKING AND CORE SERVICES
Astana International Airport’s
modern terminal. Air transport
continues to grow, with many
airlines expanding routes
into Kazakhstan
Christopher Pala looks at the improvements
being made to Kazakhstan’s air transport
sector, and how it emerged relatively
unscathed from the recession
106. BANKING AND CORE SERVICES
Inside Astana International
Airport’s modern terminal
107. V K А с т а н а – это многопрофильный поставщик архитектурных
и инжиниринговых услуг, являющийся частью VK GROUP. Сферы
деятельности – архитектура, специализированное техническое оснащение,
инфраструктура и строительные конструкции. Компания работает как с
государственными, так и с частными организациями.
Более, чем 50-летний опыт VK GROUP в настоящее время включает
внушительныйпереченьвыполненныхпроектовнарядустакимикрупными,
как новая Штаб-квартира NATO (в сотруднитчестве с SOM-ASSAR) и
Здание Судов города Антверпен (в сотрудничестве с известным английским
архитектором Ричардом Роджерсом).
Архитекторы и инженеры компании VK GROUP концентрируются на 4
целевых рынках: Здравоохранение, Гражданские Здания и Сооружения,
Промышленность и Инфраструктура.
VK GROUP является пионером в создании долговечных зданий и может
выполнять сложнейшие анализы и обследования энергоэффективности
объектов.
Создайте Ваши проекты в Казахстане со специалистом международного
уровня! Свяжитесь с нашим офисом в Астане.
108.
109. BANKING AND CORE SERVICES
3G technology has reached Kazakhstan, enhancing internet
connectivity. Now the communications market is calling
for further investment. Christopher Pala reports
111. A true
love
affair.
True love can be hard to find. At Tele2, we had to
travel all the way from our homeland Sweden to
Kazakhstan to find Neo. Fortunately, feelings were
mutual and we bought 51% of the shares in Neo.
Just as in any good relationship, the
one between Tele2 and Neo is based
upon common interest: We have the
same vision of providing customers
with affordable telecom services. With
the power of marketing knowledge
together with a low cost strategy, we
intend to position the new Neo as the
price leader in Kazakhstan.
Our main offers in Kazakhstan will be
within the mobile voice market. Our
primary focus will be to expand our
network and increase capacity mainly
in urban, but also in rural areas. In
spite of our cost consciousness that
means considerable investments in
Kazakhstan the years to come.
We hope all of this will make the people
of Kazakhstan love Neo just as much as
Tele2 does.
With 27 million customers in 11 countri-
es, Tele2 is one of Europe’s leading
telecom operators. We always provide
our customers the best deal. Tele2 has
been listed on the OMX Nordic Exchange
since 1996. In 2009, we had net sales
of SEK 39.3 billion and reported an
operating profit of SEK 9.2 billion.
113. I HAVE LIVED in Kazakhstan for nearly 16 years and
witnessed incredible changes. Today, with my local
partner, we own and manage a leading property
brokerage and consultancy, with four offices and
50 staff. Our services cover all property types and
we represent CB Richard Ellis, the global leader in
our field. I should also mention my role as a board
director of the European Business Association of
Kazakhstan, which represents 130 local and foreign
companies. Eurobak supports our members by
organizing forums, networking events, and industry
committees, and lobbying government on investment
climate issues.
The credit crisis hit Kazakhstan early, around August
2007, and had a dramatic effect on the construction
industry and property market. Financing halted
overnight, as did buyers. There was no liquidity, and
thousands of people lost their jobs. However, the
government responded quickly to support and stabilize
the industry: $2 billion was distributed to banks and
municipalities to buy apartments and fund problem
projects to completion. Approximately $1.5 billion was
invested during 2007-2008 to buy more than 40,000
flats and assist more than 25,000 buyers in Astana
and Almaty.
Formalizing the program in March 2009, the
Samruk-Kazyna property fund was set up with
the goals of buying uncompleted residential
and commercial projects and bringing them to
completion; providing property management services;
and finding solutions to various other property
Real Estate Market Recovery
issues. The fund is also actively developing the rental
market and options for lease to buy, plus investing
in the construction industry to help builders, banks
and materials suppliers. By the end of 2010, the
fund expects to have 1.5 million square meters
of residential and commercial property under
management, the majority of it residential and
supporting lower-income groups.
On the consumer side, the Kazakhstan Mortgage
Company (KMC) has also been playing an important
and active role in implementing the state housing
program with a special focus on affordable
mortgages. KMC has been able to offer an effective
annual interest rate as low as 10 percent and down
payments of only 10 percent, compared to 30
percent at commercial banks.
Since the fourth quarter of 2009 we have seen a
slow but steady recovery, increasing activity each
month, new projects requesting feasibility studies,
some older projects re-starting, overseas investors
looking again, and prices starting to edge up. We
sense an air of optimism and renewed confidence.
The future looks bright again.
SPONSORED FEATURE
114. BANKING AND CORE SERVICES
International retail chains have been slow
to enter the Kazakh market, but high-
quality retail developments are providing
new opportunities. Clare Nuttall and
Serik Jaxylyk report
€ €
€
Above: the impressive Mega
Center shopping complex in
Almaty is one of many successful
mall developments in the city
Opposite page: the shopping
demands of Kazakhstan’s
emerging middle class has
boosted the presence of
international brands
117. BANKING AND CORE SERVICES
With stunning, vast natural
beauty, and a rich and varied
history, there is huge potential
for the tourism industry.
Sheridan Prasso reports
Shymbulak is a popular ski
resort in Almaty Province
118. BANKING AND CORE SERVICES
Kazakhstan has much to offer
the high-end tourist, such as the
Palace of Peace and Harmony –
designed by British architect Sir
Norman Foster – which houses
an opera theatre, concert halls
and a museum of national culture
119.
120. BANKING AND CORE SERVICES
The Kazakh government is planning to improve its health
service. Clare Nuttall and Serik Jaxylyk discover how
it is seeking to develop healthcare and pharmaceuticals
121. BANKING AND CORE SERVICES
Some 75 percent of Kazakhstan’s
medicines are imported
123. go to www.uranium1.com for more information
TSX: UUU JSE: UUU
www.uranium1.com
In 2009, the Republic of Kazakhstan became the world's largest uranium producer.
Uranium One is pleased to be partnered with Kazatomprom in the development
of the Republic's vast resources, through its joint venture interests in the Akdala,
South Inkai, Karatau and Kharasan in situ leach uranium deposits.
Uranium One is proud to be a partner in
the growth of the Republic of Kazakhstan's
uranium mining industry.
124. Max Petroleum Plc is an
independent oil and gas
exploration and production
company focused in
Kazakhstan.
The Group operates three
onshore blocks, covering
3.4 million acres in the
Pre-Caspian Basin.
www.maxpetroleum.com
