Kazakh, Chinese Leaders laid foundation for futher economic cooperation: Kelimbetov
President of China Hu Jintao, Premier of the State Council Wen Jiabao, and chairman of the Standing Committee of the National People's Congress of China Wu Bangguo and representatives of the business community of China.
Interstate and intergovernmental agreements and business contracts will be signed during the visit, Chairman of the Board of Samruk-Kazyna National Welfare Fund Kairat Kelimbetov told in an interview to Kazinform agency.
Mr Kelimbetov, could you tell us about the purpose of the Kazakh delegation's visit to China. What agreements were reached?
Certainly, our visit to China is associated with the forthcoming state visit of Kazakhstan President Nursultan Nazarbayev to the People's Republic of China. The delegation consists of the representatives of the Fund, Kazakhstan Development Bank, Samruk-Energo, Kazatomprom, Kazakhstan Temir Zholy companies.
I'd like to remind our relations are formalized by an agreement on USD 10 bln, China rendered aid to Kazakhstan during the world financial crisis to fulfill investment projects. USD 5 bln was forwarded to have two large projects implemented. It is the KMG aand CNPC's acquisition of Mangystaumunaygas JSC and construction of Beyneu-Bozoi-Shymkent pipeline to provide the south with gas and export it to China. On December 21, 2010 the project was launched and the most important thing is that the governments of both countries agreed on the gas volumes to be delivered. In its early stages about 5-6 bln cubic meters of gas will be piped to the south of Kazakhstan, but later development of Urikhtau field will expand volumes of gas for the "export pipeline" that will join Central Asia-China gas pipeline. The rest USD 5 bln was channeled for stabilization of Kazakh companies, modernization of Atyrau refinery, and prepayment of works of China's contract holders - Sinopec Company. To date we negotiate on preterm reimbursement of USD 3.5 bln.
During the President's visit we expect signing of an agreement on the 2nd large-scale project worth USD 1 bln with China's Eximbank. It is the construction of the Atyrau gas chemical facility. The agreements were consummated, as you see, two projects make about 60-70% of the credit line. Besides, we entered in cooperation with China Development Bank, signed a borrowing line with the leading ore mining and smelting company Kazakhmys. Out of USD 3 bln - USD 2.7 bln was fueled for the development of Kazakhstan's copper industry. This project is being already implemented.
We had already talks with the ministries and departments of China, visited Commerce Ministry to promote cooperation between the state bodies. Besides, we target to draw a soft credit line China is extending to Kazakhstan within the SCO and opportunities of other Chinese financial institutions.
The fund jointly set up with CITIC Corporation to the amount of USD 200 bln in the nearest time will back bargains it has studied and approved. We proceed to construction of a bituminous plant in Aktau to supply the construction of West China- West Europe international transportation corridor.
How would you comment on cooperation of Kazakhstan and China in uranium industry?
We had talks with the representatives of the China National Nuclear Cooperation (CNNC) and China Guangdong Nuclear Power Company (CGNPC). A macrocontract on long-term natural uranium supplies is expected to be signed during the Kazakh President's visit. The bargain is worth several billion dollars. The parties agreed that Kazatomprom National Atomic Company will deliver natural uranium. China has an ambitious nuclear program we will take part in. The parties agreed on supplies of certified fuel pellets as well.
Besides, Kazakhstan, CGNPC and the leading energy corporation Datan study now wind power development in our country.
SCO member states mark 5th jubilee of the SCO Interbank Consortium (IBC). What is the agenda of the IBC jubilee meeting?
The SCO Interbank Consortium marks its 5th anniversary. China Development Bank convenes annually the SCO development institutions. During the meeting the gathered will debate the results of the work done for the past five years, their success. Anti-crisis efforts, financial situation in the world are on the agenda. Today we observe various evaluations of the European financial markets volatility. China's leadership paid a visit to the US, and it is important for all to know what a new financial regime will bring us and what currencies will dominate. Every state will report on the results, activity of their financial development institutions and finance industry.
How would you appraise the results of implementation of economic policy in 2010, in particular, State Programme on Forced Industrial and Innovation Development? What is your forecast for 2011?
It is a thankless job to give economic as well as weather forecasts. Nevertheless, we may state that Kazakhstan's economic growth made no less than 7%, against China's preliminary forecast up to 10%. The Government regards 5% GDP growth an upbeat assessment based on economic forecast. Until 2007 within the space of 7-8 years the growth made 10%. I think we move back to those high growth tempos though the core point is a qualitative variable. It is crucial to rely not only upon oil prices and other primary resources but also not oil and gas sectors' upswing.
Kazakhstan adopted Forced Industrial and Innovation Development Programme called to exploit advantages of ample resources of oil and gas, uranium and ore mining. It is essential to bolster development of petrochemistry, oil refining, and expand metallurgy industry, in particular, nuclear high value-added products and technologies. Indeed, Forced Industrial and Innovation Development Programme is an ambitious program valued at USD45 bln. Implementation of all the projects it covers will let create new workplaces, new technology intensive economy sectors. To my thinking, it is the right impulse to develop Kazakhstan's economy. In 2011 we achieve greater success.
Thank you for the interview!