Presentation of investment potential of Astana

1. “Investment potential of Astana city”
Administration of the Special
Economic Zone
“Astana – new city”

2. Republic of Kazakhstan
Since Kazakhstan has acquired independence, the main focus was to work
on the creation of a favorable investment climate and with the positive
dynamics of growth. Kazakhstan ranks first among the countries of
Central Asia and one of the leaders of CIS countries to provide the most
favorable conditions for investment activities.

3. Doing business 2014
Indicator Rank
property
registration
18
Obtaining a
building permit
145
Simplification of
procedures for
the payment of
taxes
13
Protecting
Investors
22
Starting a
Business
47
closing a
business
48
Country Ease of
Doing
Business
Rank
Singapore 1
USA 4
Switzerland 29
UAE 23
Kazakhstan 77
Czech Republic 75
China 96
Russia 95
Ukraine 112

4. Why Astana? (Big Five)
1. Favorable investment climate in the country
2. Customs union with Russia and Belarus
3. The dynamic growth of the city's economy
4. The special economic zone "Astana-New City“
5. Service support for investors

5. Indicators of Astana
529
574
697
808
841
2005 2007 2010 2013 2014
Gross regional product (GRP) of the
capital has grown by24 times since 2000
(21,3 billion US dollars).
GRP in per capita – by 14,5 times ($26,8
thousand per person).
 Since 2008 trade participation in GRP
has grown from 20% to 25,6%
 Investments in fixed assets in 2013
amounted to 3.6 billion US dollars.
 Average monthly income in 2014
amounted to 940 dollars
thousand people

6. Samara
Ufa
Yekaterinburg Omsk
Novosibirsk
Astana
Chelyabinsk
Astana is the gateway to the customs
union
Ability to serve cities with population over 1 million people from Astana
 The total volume of GDP- 2.7 trillion USD
 Total population - 170 MM people

7. Worldwide investors in Astana

8. Priority areas for investors
• Industrial production
• Business in construction
• Field of PPP
• High technology sector

9. State Program of Forced Industrial-Innovative
Development of Kazakhstan
 Investor 2020
 Business Road Map 2020
 Productivity 2020
 Export 2020
Investment preferences :
 Exemption from customs duties
 Tax breaks for 10 years
 industrial benefits
 Government land grants
 long-term contract
 Government concession liabilities are not subject to
sequestration
 Providing the land for the term of the concession on
the terms of land use
 The possibility of government support measures and
sources of reimbursement to the concessionaire by the
state (charge for the availability) Recourse to international arbitration

10. Special economic zone “Astana – new city”
Total area: 7634, 71 ha.
SEZ “Astana – new city”
Industrial park
№1
Industrial park
№2
Area: 6603, 51 ha.
Area: 598, 1 ha. Area: 433, 1 ha.

11. Preferences in the territory of the new
business and administrative center
Tax and customs obligations
on the territory of Republic of
Kazakhstan
On the territory of SEZ
Corporate income tax 20%
0
Property Tax 1,5%
Land tax from 0,12 USD per Sq.m.
The fee for use of the land from 0,16 USD per Sq.m.
Refund of excess value added tax
on goods
12%
Customs duties and VAT on
imports
5-20%

12. Preferential treatment of the Industrial Park
Priority activities Privilege Rate
1) production of other nonmetallic mineral products;
2) production of machinery and equipment;
3) production of household electric appliances;
4) production of rubber and plastic products;
5) chemical industry;
6) metallurgic industry;
7) production of electric equipment, including
electric lighting equipment;
8) production of glass components for lighting
equipment;
9) food production;
10) production of wood mass and cellulose, paper and
carton;
11) production of furniture;
12) production of vehicles, trailers and semitrailers;
13) production of railroad locomotives and rolling
stock;
14) production of avian- and spacecraft;
15) production of basic pharmaceutical products and
equipment;
16) production of electronic parts.
Exemption from customs collection at import
of goods, materials and equipment, used in
the process of construction
0%
Decrease of calculated corporate income tax
for 100%
0%
Application of 0 rate at average annual cost
of taxation objects at calculation of property
tax
0%
Application of 0% index to correspondent
rates at calculation of land tax
0%
Index 0 to correspondent rates at calculation
of cost for land usage in term, stated in
contract of temporary payable land usage
(rent) but no more than 10 years from the
date of provision of land plots to the right of
temporary payable land use (rent ) *
0%

13. 13
Industrial park project
49 projects worth $ 1.18 billion. USD
 17 under construction
 19 running 6, at the design stage
 7 at the stage of registration of land
6
8
2
3
35
8
3
5
6
engineering
metallurgical
chemical
electrics
pharmaceutics
logistics
Building Industry
food
manufacture of furniture
other
According to the degree
of readiness
by industry

14. Successfully implemented projects at the
Industrial Park
General Electric (USA)
Production of diesel locomotives
Investment in the project: 117mln.
USD
Number of employees: 1 045
ALSTOM (France)
Production of electric
locomotives
Investment in the project: 61
million USD
Number of employees: 65
“Eurocopter Kazakhstan Engineering”
helicopter production, on the basis of the
Framework Agreement between “NK
Kazakhstan Engineering” JSC and
EUROCOPTER (France / Germany), as of
October 27, 2010.
Talgo (Spain)
Production of train coaches
Project investments: US$58
mln. Number of employees:
131

15. Service support for investors
Full support of investors in pre-
investment, active and post-
investment stages
(“one-stop one-shop” principle)
Service support (consultancy in
preparing a feasibility study,
Business - plan and others.)
Carrying out investment activities Promotion of brand Astana abroad

16. JSC “Astana Innovations” is the operator of
the project of “SMART Astana”
SMART ASTANA - IS TO ENSURE A HIGH QUALITY OF LIFE
THROUGH THE USE OF NEW TECHNOLOGIES AND COST-EFFECTIVE,
ENVIRONMENTALLY FRIENDLY USE OF URBAN SYSTEMS OF LIFE,
PROVIDING A PLATFORM FOR INNOVATION IN THE CAPITAL.
Our proposed development goal: a comfortable, efficient,
competitive city and “smart” way of life for residents and guests of
Astana, the effective management of the city
Priority areas for development within the SMART ASTANA
Education: 80%
increase in the level of
satisfaction of parents,
students, employers,
taking into account the
quality of education
Healthcare: 100% -
the share of health
care organizations
that are connected to a
single network health
Ecology: 30%
reduction in
pollution
Tourism: 20%
increase in inbound
tourism
Culture: 80% - the degree
of customer satisfaction
with quality of services
sphere of culture

17. Astana ЕХPO – 2017
«Future – energy»
• Expected number of visitors - 5.1 MM visitors;
• Duration of the exhibition - 3 months;
• It will bring together 100 countries and about 10 international organizations;
• Holding such a big event is the new big impetus to small and medium size
businesses.

18. Concessionary projects of Astana
projects Expected investment
Construction and operation of 2-autoparkings ~ 25 MM USD per parking
Construction and operation of 2 bus stations ~ 28 MM USD per station
Construction and operation of the complex of 4
kindergartens
~ 4 MM USD per kindergarten
Construction and operation of the urban clinics ~ 6 MM USD for each clinic
Construction and operation of 3 outpatient clinics ~ 5 MM USD for one ambulance

19. Projects by the scheme of public - private
partnership in the field of transportation
infrastructure of Astana city

20. Construction and operation of two parking lots
Purpose and idea of the project: reduction of the deficit of parking spaces and improvement the
quality of services to provide parking spaces in the administrative center of the capital
Applicant: Department of passenger transport and highways of Astana city
Period of concession: 2015-2045
Capacity: 472 - 568 parking spaces in each section of parking
Investments during the construction: 11,5 to 13,1
million USD for each parking lot
Estimated types and amount of state support:
compensation for investment costs at ~ 100% of the
cost of construction during the 12 years
Current status: All the documents have been
prepared. Competition procedures are in the process.

21. Construction and operation of two bus stations
The Purpose and Idea of ​​the project: is to improve the
quality of services on international and long-distance
transportation for the population of the capital
Applicant: Department of passenger transportation and
highways in Astana
Concession period: 2015-2045
Capacity: 4 500 passengers per day
Investments during the construction: from 28 million
to 32,5 million USD for each bus station
Estimated types and amount of state support:
compensation for investment costs at ~ 100% of the cost
of construction during the 11 years
Current status: All the documents have been prepared.
Competition procedures are in the process.

22. Projects of public – private partnership in
the field of education in the city of Astana

23. Construction and operation of 4
kindergartens
The purpose and idea of ​​the project: reduction of
demand for kindergartens in the capital of
Kazakhstan
Applicant: Department of Education of Astana city
Implementation Period: 2015-2035
Capacity: 240 seats in each kindergarten
Investments during the construction: ~ 16 million
USD for each kindergarten
Current Status: under the development of the
financial model of the project

24. Projects of public - private partnership
in the field of health service in Astana

25. Construction and operation of ambulances and of
three outpatient clinics in Astana
Purpose of Project: Development of primary health care and
maintenance of the population with high-tech medical care and
improvement of public health
Applicant: Department of Health Service of Astana city
Concession Period: 2015-2035
Investments during the construction – 5,4- 6,2 million USD
Estimated types and amount of state support:
- Compensation of 100% of the investment costs for the construction of
the object
- reward for management of implementation
Capacity - 150 to 250 visits per shift
10 to 40 thousand population will be served.
Method of financing Med. Services will be paid by government
(every month $ 4.5 per person)
Current Status: under the development of the financial model of the
project

26. Republic of Kazakhstan
010000, Astana city, 13 Dostyk St.
Tel. + 7 (7172) 578 986
Tel. + 7 (7172) 578 987
E-mail: iscAstana@gmail.com
www.investinAstana.kz