GOVERNMENT: Kazakhstan looks for ways to improve work with foreign investors
Prime Minister of Kazakhstan Karim Massimov had a busy week traveling around regions of Kazakhstan and jetting off to Russia to meet his counterparts in Sochi.
On Monday (August 8) he arrived in Atyrau region to familiarize with the progress in its socioeconomic development, meet with the public and discuss the most pressing issues. He paid the visit on the instruction of Head of State Nursultan Nazarbayev.
It should be noted that the population of Atyrau region exceeds 598,000 people with 47% residing in urban areas. Oil production is the pivot of economic life in Atyrau region. The region boasts an array of oilfields, including the biggest one - Tengiz.
The Premier inspected the airport in Atyrau on the instruction of the Head of State to ensure high level of security at strategically important transport facilities across the country. The problem is of paramount importance given the recent violent attacks in Aktobe city on June 5 and in Almaty city on July 18 this year.
Accompanied by akim (governor) of the region Nurlan Nogayev, Karim Massimov surveyed the arrival and departure lounges, the waiting area of the airport, was briefed on the day-to-day functioning of the airport and familiarized with the approved construction project of additional facilities to the terminal building.
Afterwards, the Prime Minister paid a visit to the Kashagan oilfield. At the oilfield he inspected the operation facilities. The production at the oilfield started in September 2013, but was suspended in October due to a gas leak. The production resumed on October 9, but was suspended again due to another gas leak in one of the main pipelines. The geological reserves at Kashagan oilfield are estimated at 4,8 billion tons. The total oil reserves amount to 38 billion barrels.
Karim Massimov also visited a construction site of the Zheruiyk apartment complex in Nursaya micro-district within the framework of his working trip to Atyrau region. The construction of the Zheruiyk apartment complex is financed within the framework of the Regions Development Program for 2020 and with the support of Samruk-Kazyna National Welfare Fund JSC.
The complex includes 16 five-storey buildings with 25 apartments each. During the visit, Massimov surveyed the construction site and was briefed on the progress of construction.
In Atyrau region, the Prime Minister also familiarized with the work of the State Corporation "Government for Citizens". Over the past six months department №1, visited by Massimov, rendered over 221,000 services to the residents of the city. In total, there are three municipal and seven district departments rendering public services in Atyrau region. Massimov surveyed the building and gave a number of instructions to the management to solve existing problems.
Karim Massimov visited Caspian Royal Fish Company during the working trip to Atyrau region as well. "Caspian Royal Fish" LLP specializes in fish farming, processing of fish and production of caviar. He also visited a plant on production of drilling equipment "ZhigerMunaiServis" LLP. The head of the Kazakh Government checked out the mechanical repair shop and the equipment in the shop for directional drilling.
On August 9, Prime Minister Massimov jetted off to Mangystau region where he inspected the progress of construction of a new ferry complex in the port of Kuryk. President of NC Kazakhstan Temir Zholy JSC Askar Mamin reported to the Premier on the progress of the construction of the ferry complex which also includes the ferry and railway line Borzhakty-Yersai.
The planned capacity of the complex is up to 4 million tons of cargo per year, including petroleum products, grains, chemical and fertilizers.
While in the region, Massimov also familiarized with the progress in the implementation of the northward expansion of the Aktau Sea Port. The project will allow to increase the capacity of the port from 16.5 to 19.5 million tons. Presently, it is in its final stage.
Massimov visited the Aktau municipal youth center in Mangystau region as well. The center informs the local youth about their rights in the sphere of employment, education, professional training, and offers psychological support. The Premier also paid a visit to the local Co-working Center where he was familiarized with the Zhana Serpin Regional Program and social projects entitled Bastau Business and Bastau Kasip.
On Tuesday it was announced that Karim Massimov signed the decree "On distribution of responsibilities between the Prime Minister, the deputies of the Prime Minister and the head of the Prime Minister's Office.
As per the document, the Prime Minister of Kazakhstan will be responsible for strategic issues of economic, financial, fiscal and customs policy, state budget, interstate relations and international cooperation, attraction of foreign investment and improvement of investment climate.
First Deputy Prime Minister Bakytzhan Sagintayev's responsibilities will include the issues of operating management of economy and regional policy, environmental protection, use of natural resources, development of construction and modernization of housing and public utilities. He will also coordinate the issues of emergencies, development of military and industrial complex, small and medium business, preparations for heating season, the International specialized exhibition EXPO 2017 and many more.
Deputy Prime Minister of Kazakhstan Dariga Nazarbayeva will oversee the issues of development of education and science, healthcare, social modernization, social policy, employment, religion, information, development of sport and culture, and so on.
Deputy Prime Minister - Minister of Agriculture Askar Myrzakhmetov will be responsible for the issues of agro-industrial complex, land relations, water resources, forestry and more.
Head of the Prime Minister's Office Yerlan Koshanov will solve the issues of information and analytical, legal and organizational character. He will also coordinate the activity of central and local executive bodies and agencies in terms of resolutions of the Government.
On Wednesday (August 10) Prime Minister Massimov chaired the session of the Government at which it was revealed that the construction of the 104 km-long Almaty-Kapchagay motorway is planned to be finished this year.
Zhenis Kassymbek, Minister of Investment and Development, reported on the progress of construction of the motorway. According to him, 72 km of the Almaty-Kapshagay motorway has already been put into commission. The project will be finished this year. Minister Kassymbek also said that over 329 billion tenge had been earmarked for road and transport projects in 2016.
At the session, Minister of Finance Bakhyt Sultanov stressed that the Government of Kazakhstan used almost half of the funds earmarked from the state budget for implementation of the Nurly Zhol Program in 2016. Minister Sultanov added that the funds required for the expansion of the passenger terminal of the Astana International Airport and the construction of the new Zhezkazgan-Beineu railway line has been channeled to the full extent. 60% of funds required for the construction of the ferry complex in the Kuryk port have been channeled as well.
The Prime Minister, in turn, emphasized that the funds earmarked for implementation of the Nurly Zhol Program were not used to the full extent and reminded the members of the Cabinet that the issue on the use of funds would be discussed at the upcoming extended session chaired by President Nursultan Nazarbayev.
Participating in the session was Erlan Idrissov, Minister of Foreign Affairs of Kazakhstan, who came up with a number of proposals on how to improve work with foreign investors. In his words, the №1 goal is to create a pool of investment projects.
"There is a host of projects," Idrissov said while addressing the session, "that is why our work with investors sometimes lacks specifics. We need to create a unified pool of large investment projects that will be approved by the investment office under your supervision [Prime Minister of Kazakhstan Karim Massimov]."
Secondly, Minister Idrissov suggested using case-specific approach when choosing foreign investors. In his words, if Kazakhstan needs most advanced products, it should pick investors from the countries that specialized in those products and exclude those countries that have nothing to do with them. The Foreign Affairs Minister also believes that it is crucial to map out the unified export and import policy of Kazakhstan because the sales and distribution issue is of paramount importance for investors.
At the session, Massimov also instructed the Ministry of Agriculture to control the ongoing harvesting campaign countrywide. He gave the corresponding instruction to Deputy Minister of Agriculture Kairat Aituganov.
Aituganov said that as of August 9, 1 539.3 thousand tons of grain had been harvested from the area of 703.2 thousand ha in southern and western Kazakhstan (West Kazakhstan, South Kazakhstan, Aktobe, Almaty, Zhambyl and Kyzylorda regions). The average grain harvest was 21.9 centners per ha.
On August 11 Karim Massimov went to West Kazakhstan where the Prime Minister familiarized with the security system of the Uralsk airport. He checked out the progress in repair of the Uralsk-Taskala-Russian border road within his working trip to West Kazakhstan region. He was informed of the state of the transport infrastructure of the region in general and about the reconstruction of the Uralsk-Taskala-Russian border road in particular. The project of reconstruction of the road is implemented within the framework of the Nurly Zhol Program.
In the region, the Prime Minister also met with representatives of the agro-industrial complex and discussed the relevant issues of farmers. Having considered the opinions of the participants of the meeting, the Prime Minister ordered Minister of Agriculture Askar Myrzakhmetov to form a working group, meet with representatives of the food industry, develop specific proposals on solving the current problems in one month's time and submit them for the consideration of the Government.
Karim Massimov also held the meeting dedicated to the issues of development of gas sector of Kazakhstan during his working trip to West Kazakhstan region. Minister of Energy Kanat Bozumbayev and akim (governor) of West Kazakhstan region Altai Kulginov made reports during the meeting, Kazinform has learnt from the prime minister's press service. According to Minister Bozumbayev, in 2015 Kazakhstan produced 45.3 billion q.m. It has produced 22.7 billion q.m. over the past six months of 2016.
During the meeting the Prime Minister noted that despite positive dynamics there are issues that need to be resolved. The Ministry of Energy and KazMunayGas JSC were instructed to explore the issues raised at the meeting and find the most effective solutions.
Afterwards, Massimov met with the public and intellectual circles of West Kazakhstan region. Participants of the meeting discussed the topical issues of economic and sociocultural development of the region. Utmost attention was paid to the construction, transport infrastructure, employment of youth in the region and ecological situation on the Ural River.
Later in the day Karim Massimov jetted off to Sochi, Russia to participate in the meeting of the Eurasian Intergovernmental Council on August 12.
On Friday Karim Massimov raised the issue on return of remains of Kenesary Khan and Keiki Batyr to Kazakhstan during the meeting with Russian colleague Dmitry Medvedev in Sochi. The return of the remains of the leaders of national liberation movement are of paramount importance for Kazakhstan. There were several attempts to return the sacred relics to Kazakhstan back in the Soviet period, but to no avail. At the meeting, Dmitry Medvedev promised to see into the matter and give necessary instructions.
Additionally, the sides discussed the upcoming 13th Interregional Cooperation Forum in Astana. Utmost attention was paid to the implementation of large transport projects, such as the Western Europe - Western China and the trans-border Ural River. Premier Massimov suggested signing an intergovernmental agreement on the river. Massimov and Medvedev also touched upon the topical issues in the sphere of logistics, cross-border cooperation and real economy.