KARAGANDA. July 21. KAZINFORM  /Valentina Yelizarova/ The Address of the President of Kazakhstan New Decade - New Economic Growth - New Opportunities sets ambitious goals on the country industrialization. The strategy for creating new economy is already under realization. Hundreds of industrial-innovative projects are implemented countrywide which will lead our industry to a brand new level. Serik Akhmetov, Karaganda region Governor

tells Kazinform about implementation of the Forced Industrial-Innovative Development Program in the region.

Six new facilities included in the Industrialization Map have already been launched this year in Karaganda oblast. What are the prospects of realization of the Program in the oblast?

First of all I would like to say that new investment projects are constantly under our consideration. We discuss them at every sitting of the Coordinating Council on the Forced Industrial-Innovative Development. In case businessmen need any support or our experts see any flaws they mutually solve problems. Then the project is included into the National Industrialization Map. For instance, at one of recent sittings of the Council we considered three projects the realization of which will benefit the region budget and the budget of the country on the whole.

In particular, this is building Koktaszhal ore-mining complex on the ground of a copper ore field in Karkaralinsk district. The cost of the project is KZT 12 bln 7 mln its launch is scheduled for 2013. Copper concentrate in the form of copper powder is to be produced at the plant, around 16, 363 kg a year according to preliminary estimates, gold in the form of powder, 1, 636 kg per year and silver in the same form the production of which should make around 6, 410 kg per year. 200 new job positions will be created for the production. The project implies constructing an enrichment plant, electricity power lines, reconstruction of the existing power station, construction of the roads, water supply pipes and the reconstruction of administrative buildings and facilities. It will reduce the price for electricity and impact the whole region beneficially.

The project regarding constructing a plant on production of refined copper LLP 'Sary Kazna' was considered as well. We have already developed a detailed construction project on building a plant on liquid extraction and electrolysis with the annual capacity of 10, 000 tons copper cathode. The work  on the realization of the project is to start this month. The completion of the project worth USD 50 mln is scheduled for January 1, 2012. 145 new job positions will be created in the rural region due to this. Great attention is paid to the environment within the realization of the project.

The most important project of the region is certainly 'Development and modernization of ArcelorMittal Temirtau Production ' which is to increase steel production to 6 mln tons per year.

You have noted that Industrialization Map was not a dogma but a real mechanism depending on the activity in businessmen community. Do the authorities monitor all projects? Is there any project that is considered too ambitious for the region? 

The major project of the region is the realization of the strategic plan on reconstruction of ArcelorMittal Temirtau mentioned before.

The realization of the project is scheduled for 2010-2015. Its cost is KZT 294 mln. It includes reconstruction of furnaces, modernization of gas purifying converters, launch of the second production line, modernization of all flatting shops, etc.

Many businessmen think that the Industrialization Map is a sort of an elite club and only large enterprises can be included in it. In fact it is wrong. The state is in constant search for any promising project. The governors have to coordinate business and support it. That is the sense I put into phrase 'the Map is not a dogma but a real mechanism'.        

As we know, Karaganda oblast intends to revive irrigated farming. You were charged to develop an appropriate action plan.  What can you tell about this?

I would like to remind that in his annual Address to the Nation President Nursultan Nazarbayev outlined three major directions of development of agro-industrial sector: increasing labor productivity, ensuring food security and unlock the export potential of agricultural producers. Our decision on revival of irrigated farming in Karaganda oblast is aimed at fulfillment of these tasks.

For this we have established a special working group which is engaged in solution of this issue. We have discussed the current problems with farmers in order to listen to their propositions for they have been specializing in growing vegetables and forage on irrigated lands for many years and they have good results. Taking into consideration their recommendations we have developed a Package of measures on revival of irrigated farming in Karaganda oblast till 2020.

In conformity with this program the region plans to use additional 5, 483 hectares of land and the area of the irrigated lands will exceed 18, 000 hectares by 2015. The farmers also plan to broaden the area of irrigated lands by 1, 000 hectares annually due to their own finances. As a result the region will be fully provided with its own potato and some other kinds of vegetables.

To date the region has its own five vegetable storages with the capacity of 10, 000 tons. 55 more vegetable storages are planned to be built in 2011-2015 which total capacity is expected to hit 92, 000 tons of products.

In whole, implementation of these measures on revival of irrigated farming will allow diversifying crop production and creating a forage base for development of stock-breeding.

How will the region benefit from implementation of the country's Forced Industrialization Program? What is your forecast of development of economy for 2010-2011?

According to preliminary calculations, the expected volume of industrial output in 2010 is to make KZT 925 bln, in 2011 this figure is expected to hit KZT 938 bln.

The program is a logical continuation of the President's policy on diversification of the county's economy. By 2015 the region plans to implement large investment projects in metallurgy with application of new business opportunities for small and medium businesses by means of increasing domestic content. First of all, this is establishment of an Industrial Park in Karaganda and launch of new projects on manufacture of metallic products in its territory. The Industrial Park will provide the investors with new platforms with full infrastructure. We have already set to implementation of 8 projects here, and one of them is production of automobile cars together with Russia's Sollers.

The Concept of Development of the region's basic sectors developed by us aims at implementation of the State Forced Industrial-Innovative Program with the consideration of the peculiarities of the region's economy. The Concept focuses on six traditional sectors - coal extraction, ferrous and non-ferrous metallurgy, ore-mining sector, machine-building and metal processing, chemical and pharmaceutical industry and construction sector.

In whole, the Concept provides for implementation of 102 projects by 2015.

By the President's instruction the Government has development Business Road Map-2020 program for maintaining small and medium businesses in the country. What measures does the region take under this program?

About KZT 1 bln 2 mln are envisaged in the national budget for implementation of Business Road Map-2020 in Karaganda oblast. At a session of the Coordinating Council we have defined the priority sectors of economy taking into account the peculiarities of the oblast.

Currently the banks are considering 7 requests of the businessmen worth KZT 956 mln 400 thousand mln in the first direction - "Support of new business initiatives", 20 requests to the amount of KZT 13 bln in the second direction -"Recovery of entrepreneurship" and 6 requests amounting to KZT  bln 5 mln in the third direction - "Support of export-oriented productions".

Thank you for the interview!