NICHEVEL PROJECTS OF THE TURKESTAN REGION

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NICHEVEL PROJECTS OF THE TURKESTAN REGION TURKESTAN 2018

Transcript of NICHEVEL PROJECTS OF THE TURKESTAN REGION

NICHEVEL PROJECTS OF THE TURKESTAN REGION

TURKESTAN 2018

CONSTRUCTION OF THE REACHING SITE FOR 20 000 CATTLES

DESCRIPTION OF THE PROJECT:LLP "Kayyp ata" is one of the largest meat producers in the Turkestan region, witch has active feedinggrounds up to 7000 heads of cattle, a slaughtering complex witch is located in the Kazygurt region. Inthe complex can be hammered about 5 thousand cattles. At present, the project for the construction ofa feedlot for 10,000 cattles is being implemented. Also company has 1 000 hectares of pasture land,agricultural machinery, etc. LLP "Kayyp Ata" has established sales channels for finished products bothin the Kazakhstan market and in foreign countries like Uzbekistan, the United Arab Emirates, Iran, andin other countries.

STATE SUPPORT:Under the state development program "development of the agroindustrial complexes 2017-2021"production of meat products is a priority for reducing imports through increased domestic production. Atthe expense of the state, investment costs are subsidized. The State Program for the Development of theAgribusiness provides state support through the provision of investment preferences, concessional loansand subsidies, as well as benefits for paying taxes and customs duties on the importation of equipment

LOCATİON Turkestan Oblast

Agribusiness

PRODUCTSProduction of meat

THE TOTAL COST OF THE PROJECT

$ 31.4 million

İNDUSTRY

TARGETED MARKETS Kazakhstan, Russia, Uzbekistan, UAE, PRC, Iran

Party A (Kazakhstan): “Kaiyp Ata” LLPParty B (foreign investor): Indefined

PAYBACK PERIOD 4 – 5 years

BREED COW Kazakh-white-headed

COST FOR USE OF MUNICIPAL SERVICES

Natural gas (m3)

Electricity (kW / h)

Diesel (L) Petrol (L) Water (m3)Average salary

(thousand)Land tax (per 0,01 ha) Sewerage

(m3)

36,0 tg 19,4 tg 158 tg 156 tg 205 tg 101 tg0,5<20

0,5>100 13,84 tg

THE PROJECT OF CONSTRUCTION OF THE DISTRIBUTION SITE AND MEAT PROCESSING PLANT ON BEEF PRODUCTION HAS 5 MARKET PRECONDITIONS FOR IMPLEMENTATION:

Stable growth in demand for beef in domestic and world markets Favorable geographical location of the country in the neighborhood with China and Russia, which provides

convenient access to two large and capacious markets. Relatively low costs, including the cost of skilled labor, favorably affect the control of the cost of production of

meat products. The growth of imports in neighboring countries opens up opportunities for pursuing the target niche in the

structure of beef imports in China and Russia. Price differential with neighboring countries.

Consumers:Meat industry is one of the important sectors of the food industry in Kazakhstan

due to the relatively high consumption of meat per capita.According to the Organization for Economic Cooperation and Development, following

the results of 2016, Kazakhstan is on the 9th place in terms of beef consumption andthe second largest consumption of lamb in the world. Such a great demand is providednot only by significant imports, but also by locally produced meat.

Kazakhstan is distinguished by a balanced diet of consumed meat products, as wellas a high proportion of beef and lamb consumption, compared with the average figuresaccording to the OECD.

Market prerequisites:There is a large solvent demand for good quality beef (organic products) with

different geography and export volumes-in the Russian Federation, China, andEuropean countries. The total volume of imports of these countries exceeded 944thousand tonnes of cattle meat in 2016.

The price differential for beef meat with neighboring countries is more than $ 4.5.The strategic geographical location of the country in the neighborhood with China andRussia provides convenient access to two large and capacious sales markets.

Low production cost of production is achieved due to the availability of a cheapfeed base (65-70% in the structure of production costs of feed), cheap labor.The land for growing cattle and beef production is available in Kazakhstan, supply

infrastructures are developing.There is an opportunity to involve companies with international experience in the

meat production and distribution sector with the aim of expanding their presence inthe markets of Eurasian countries using their proven growth model, as well as theability to supply local products to global fast food chains.

Project cost

Construction and installation work 2.3 billion tenge

Slaughter equipment 0,7 billion tenge

Refrigeration equipment 2.5 billion tenge

Purchase of cattle 4 billion tenge

Agricultural machinery 0,285 billion tenge

Feed 0,014 billion tenge

Veterinary services 1 billion tenge

Current assets 0,2 billion tenge

TOTAL 11 billion tenge ( 31,4 $ million)

Project capacity \ ton per year 8 000

The cost price of meat \ kg 1 250 tg. per kg.

Slaughter weight of one bull 200 – 220 kg

The availability of the land plots is available in the following areas:Ordabasy- 15 014 hectares.Aris - 21 734.6 hectares.

CONSTRUCTION OF THE PREVENTIVE SITE FOR 20000 THOUSAND CATTLES

SWOT Analysis of the ProjectSTRENGTHSOwn food supply. Own feed base allows to conduct the production process irrespective of price fluctuations in the fodder market.

Staffing. The presence of foreign specialists will allow to conduct efficient production and implementation taking into account international requirements and standards.

Governmental support. This factor is an important factor, since it puts the company in a more advantageous position in the conduct of export operations.

WEAK SIDESDependence on climatic conditions. Possible low yields of feed can affect the growth of livestock.

Dependence on the quality of the purchased livestock. The possible low quality of individual individuals purchased for fattening cattle, the daily gain of which may be below the average, will affect the total time of fattening cattle.

CAPABILITIES

Expansion of livestock. The availability of resources, the use of the latest growing technologies, as well as the additional creation of conditions will enable to increase the number of cattle.

Growing demand. The basic quality of meat, the expansion of the range and a more flexible policy for changing the exchange rate of the national currency provided an opportunity to develop new markets and demand segments.

Entering new markets. Achieving a higher number of livestock and the quality of the product produced will allow us to enter new markets, such as China and Russia.

THREATSVeterinary risks. The incidence of livestock may lead to a decrease in weight gain and livestock numbers.

Access to new markets. In view of possible protectionist solutions, entry into new markets may be limited or impossible.

CONSTRUCTION OF THE PREVENTIVE SITE FOR 20000 THOUSAND CATTLES

MODERNIZATION OF DAIRY FARM

DESCRIPTION OF THE PROJECT:The company owns a land suitable for sale in the city of Arys with a total areaof 2000 hectares of irrigated land of this project. In view of the currentdistribution channels and the increasing demand, the project implies theconstruction of a modern farm on German technology. Currently, the localinvestor has a farm with a capacity of 25 tons of milk per dayAs a result ofinvestment, the production capacity will rise to 60 tons of milk per day.

STATE SUPPORT:Under the program of state development of the agroindustrial complex 2017-2021, theproduction of a ready-made dairy product is a priority direction for reducing imports byincreasing domestic production. At the expense of the state, investment costs are subsidized.The State Program for the Development of the Agribusiness provides state supports throughthe provision of investment preferences, concessional loans and subsidies, as well as benefitsfor paying taxes and customs duties on the importation of equipment

LOCATİON Arys

Agribusiness

PRODUCTS Production of milk

THE TOTAL COST OF THE PROJECT

$ 37.6 million

İNDUSTRY

TARGETED MARKETS Kazakhstan

Party A (Kazakhstan): “Kazyna Zher LLP”Party B (foreign investor): Indefined

PAYBACK PERIOD 5-6 years

BREED COW Holstein-Frisian

COST FOR USE OF MUNICIPAL SERVICES

Natural gas (m3)

Electricity (kW / h)

Diesel (L) Petrol (L) Water (m3)Average salary

(thousand)Land tax (per 0,01 ha) Sewerage

(m3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 tg0,5<20

0,5>100 13,84 tg

Availability of the land plots :In Ordabasy – 2 000 ha.In Arys – 2 000 ha.

MODERNIZATION OF DAIRY FARM

The capacity utilization of dairy plants averages 53%, ranging from 10% to 82 The reason for low capacity utilization is the lack of reliable suppliers of raw materials. 80% of the raw milk produced is accounted for by the share of personal part-time farms, and most often the quality of their products does not meet the standards and there is a shortage of raw materials. In order to solve the above problem, the program of industrialization of agro-processing for 2017-2021 will create new 867 milk receiving points. The increase in the number of milk receiving points will increase the capacity utilization of dairy plants from 60% to 90%. The volume of milk processing will more than double.

Consumers:For today in Turkestan region there are 4 large dairy-processing plants are working:1) Sairam-Sut LLP 20 tons per day2) "FOOD MASTER" LLP 150 tons per day3) LLP "SHYMKENT-SUT" 35 tons per day4) "Burte Milka" LLP 50 tons per dayThe total capacity of processing milk per day is about 250 tons of milk per day.To date, on average, factories are loaded at 65%. Also Import Dependence - inthe structure of dairy consumption in the country the share of imports is highand is about 20%. Export of milk in the SKO 911 thousand dollars per year,Import of milk for SKO 740 thousand dollars per year (2017)

Market prerequisites:In the market for milk production, there is a deficit in domestic production to meet domesticconsumption, growing latent demand, as well as a low share of milk processing at competitiveprices of products sold. At the same time, the leaders in the production of raw milk are EKO,Almaty region, Turkestan region and NKO.There is an increase in consumption of milk and dairy products by the population due to theirindispensability in the diet, dietary and curative value. In the structure of consumption of dairyproducts in Kazakhstan, the share of imports is about 20%, which indicates a high import-dependence of the country.In the country there is a deficit in additional production capacities in the amount of 175thousand tons of kefir, 60 thousand tons of sour cream, 50 thousand tons of cottage cheeseand other dairy products. At the end of 2016 in Kazakhstan, about 18% of the total amount ofraw milk produced was taken into industrial processing. In addition to significant consumerdemand in the domestic market, there is a large export potential for the sale of dairy productsto neighboring countries. The price differential for some dairy products is 23.5% compared toRussian prices. At the end of 2016 in Kazakhstan, about 18% of the total amount of raw milkproduced was taken into industrial processing.

Project costSMR Farms 3 billion tenge

Purchase of cattle(1 cow-500 thousand tenge, correspondingly, 3500 cattles will be purchased)

1.75 billion tenge

Agricultural machinery, milking equipment

6 billion tenge

Current assets(feed, staff salaries, room services, etc.)

2 billion tenge

TOTAL 12.75 billion tenge (37.6 $ million)

Project power \ per day \ liter 125 000 литр молока

The cost price of milk per liter 100 тг.

Milk from 1 cow 25 liters per day

Investment climate :

SWOT Analysis of the Project

STRENGTHS

Own farm Own production of raw milk allows you to conduct productionregardless of price fluctuations in the raw materials market.Government support, Subsidies will help reduce costs before reaching fullproduction capacity. A wide range of products including raw milk will helpmeet the growing demand of the consumer. Production costs directlydepend on the technology and equipment used, which are subsidized bythe state.

WEAK SIDES

Dependence on climatic conditions. Possible low yield of fodder can affect the level of milk yield and growth in the number of cattle. Seasonal fluctuations. In winter, milk supplies, and there is a shortage of fodder crops. Relatively high cost of capital expenditures; Lack of skilled production personnel in the market of Kazakhstan.

CAPABILITIES

Growing demand. According to BMI, consumption is expected to growmilk by 4%, butter by 3.2%, cheese by 5% in 2016-2021.Entering new markets.

Achieving a higher quality of the produced product will allow us to enternew markets, such as Russia.

THREATS

Veterinary risks. Incidence of cattle can lead to both a decrease in the level of milk yield and the total number of cattle.

Access at a high level. new markets. In view of the possible protectionist decisions of states, entry into new markets may be limited or impossible.High competition.Price competition in the market

MODERNIZATION OF DAIRY FARM

DESCRIPTION OF THE PROJECT:The task of this project is to build the existing air transportations by all criteria

of construction of small airports. This complex should improve the attendance ofpeople in the Turkestan region.

STATE SUPPORT:Under the Nurly-Zhol program, the development of small aviation in the country is primarily

aimed at the growth of domestic tourism. In addition, the emergence of the so-called "airminibuses" will allow to speedily resolve business issues. With the regional akimats,negotiations are underway to create an infrastructure. It is expected that the flights will becarried out by small vessels with a capacity of up to 20 people who will be able to cover ashort distance of up to 500

LOCATİON Turkestan, Maktaral and Shardara

Transportation of passengers and cargoes

PRODUCTS Aviation

THE TOTAL COST OF THE PROJECT

4 billion tenge

İNDUSTRY

TARGETED MARKETS

Kazakhstan

DEVELOPMENT OF SMALL AVIATION

PAYBACK PERIOD 5-6 years

ADVANTAGES - Development of social and economic infrastructure of the region:- Development of resource potential of regions of the region and the republic as a whole- Development of industrial and non-productive spheres of regional economy- Strengthening links between regions- Improvement of the social situation in the country- Development of population mobility- Providing communication between regions or within regions.

COST FOR USE OF MUNICIPAL SERVICES

Natural gas (m3)

Electricity (kW / h)

Diesel (L) Petrol (L) Water (m3)Average salary

(thousand)Land tax (per 0,01 ha) Sewerage

(m3)

29,9 tg 19,4 tg 158 tg 156 gt 205 tg 101 tg0,5<20

0,5>100 13,84 tg

HISTORICAL REFERENCE:In the times of the former USSR in Kazakhstan, local intra-regional air services werewell developed, connecting regional pride with regional centers and large settlements Ineach region there were about 20 airfields of local significance. Flights were carried outon a daily basis from the regional centers. The main types of aircraft used were AN-2, L-410, AN-24 and Yak-40.

Transportation was carried out to ensure sustainable air communication,accessible to the general public due to political and socio-economic goals, for the rapiddelivery of passengers, mail and small cargo.

In the USSR, by the end of the 1990s, more than 26 airfields and airports wereoperating in the territory of the Turkestan region: Ilyich (Jetysay District), Chardara,Turkestan (These airports were operated by AN-2 and AN-24 planes) Djetyusai, Koksu,Timur, Arys , Bairkum, Khodzhi-Torgai, Syutkent, Basag, Oranbay, Nalibay, Naiman-Bukharbai, Shayan, Chulan-Korgan, Suzak, Zhuvan-Tube, Tasty, Chui, Kyzymchek,Appak, Taikonur (AN-2 flights were performed)

MarketingTo meet the socio-economic needs of the population in a stable, round-the-clock air serviceaccessible to the broad strata of the population, conditioned by political and economic tiesof district centers and large settlements with the regional center of the Turkestan regionShymkent, the development of historical and cultural centers and resort areas available forAt the initial stage, it is necessary to consider the issue of restoring or building airfields(airports) and organizing regular communications with largely populated areas

Cost of airport construction Volume, thousand tenge

Runway L = 2200m. RD, MS 1 800 000,00

Building ACC 19 000,00

Boiler room 170 000,00

Diesel power plant (TPSSS, introductory TP) 260 000,00

Warehouse of fuels and greases, capac. 500 m3 300 000,00

Waterworks 60 000,00

Objects of air traffic control (Only the building part-foundations and improvement)

20 000,00

Enclosures with lighting 150 000,00

Lighting equipment OMI 260 000 ,00

Meteoequipment 200 000,00

Service and passenger building at 35 pas / hour 180 000,00

Technical building 12 000 ,00

Sewage treatment plants 140 000,00

Network engineering 200 000,00

Design and survey works of Feasibility Study + RP 40 000,00+240 000,00

TOTAL 4 051 000,00

PRICE OF NEW AIRPORT

CONSTRUCTION OF THE KASKASU SNOW RESORT

DESCRIPTION OF THE PROJECT:The total cost of the infrastructure of the mountain ski resort "Kaskasu" is 2,910,868,490 tegu.

The initiator of the project is ARNA Project LLP. On July 4, 2014, a contract was concluded with

the winner of the public procurement tender for LLP “Airstyle-Kazakhstan".

Due to untimely financing of the project, it is necessary to adjust the design estimates for

the construction of infrastructure. In addition, it is necessary to attract private investors.

Creation of the international ski resort Kaskasu is planned in the Kaskasu gorge of the Tolebi

district of the South Kazakhstan region, 50 kilometers from Shymkent. The planned throughput

of Kurt will be up to five thousand skiers a day. It is assumed that in addition to local tourists it

will be guests from Uzbekistan, Kyrgyzstan, China and Russia

LOCATİONToleby region

Tourism

PRODUCTSAttracting tourists

THE TOTAL COST OF THE PROJECT

İNDUSTRY

TARGETED MARKETSKazakhstan and the near abroad

PAYBACK PERIOD 5-7 years

150.0 million US dollars

COST FOR USE OF MUNICIPAL SERVICES

Natural gas (m3)

Electricity (kW / h)

Diesel (L) Petrol (L) Water (m3)Average salary

(thousand)Land tax (per 0,01 ha) Sewerage

(m3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 tg0,5<20

0,5>100 13,84 tg

The availability of the land plots is available in the followingarea:In Toleby region– 60,0 ha.

Works that should be done:1) Construction of a new substation "Kaskasu" of 110/10 kV

Substation -442.4 million tenge.

2) Construction of a high-voltage line VLZ-10 No. 1 and No. 2 of VLZ-10 kV substation -47.8 million KZT.

3) The construction of a high-voltage line between the substations"Lenger" and "Qasqa-su" with a length of 32.5 km of PS-110 / 10kV -523.2 million tenge.

4) Modernization of substation "Lenger" PS110 / 10kV - 173.1 milliontenge.

5) Construction of the bridge -16.2 million tenge.

6) The construction of the E1R ERL between the ATS Koksyuk andAkmoynak (16 towers) -28.2 million tenge.

7) Construction of a water basin -74 million tenge.

8) Treatment facilities -174.2 million tenge.

9) Construction of water supply and sewerage -35.4 million tenge.

10) Construction in 2019. highway 816.3 million. tenge

11) According to the feasibility study prepared by the investor, theconstruction of a 34.3 km long ski slope requires the installation of 8poles (a ropeway) costing 21.3 billion teege, and 347.3 million tengeis needed for the development of design estimates.

Project costStage 1Infrastructure development

2.9 billion tenge. at the expense of the budget within the framework of the "DKB 2020"

2 stageCompletion of the project, according to the feasibility study

Construction of the route21.0 billion tenge.

Construction of a hotel complex 68.6 billion tenge

TOTAL 92.5 billion tenge

The maximum one-time number of skiers riding on the mountain slopeswill be

5 000

CONSTRUCTION OF THE KASKASU SNOW RESORT

SWOT Analysis of the Project

STRENGTHS

The ski resort "Kaskasu" will become a world famous resort. The length ofthe ski slope, nature will attract tourists from neighboring countries.

WEAK SIDES

- changing of the climate.- high cost of the project.- there are no necessary high-class specialists.- competition

CAPABILITIES

Can become a brand of the Turkestan region. 1000 jobs are created, revenues to the local budget will increase

THREATS

- appreciation of construction due to the weakening of the tenge.- not a spoiled financing.- there is a danger of deterioration, as well as looting of objects built in 2014-2015.

CONSTRUCTION OF THE KASKASU SNOW RESORT

DESCRIPTION OF THE PROJECTConstruction and operation of a wholesale distribution center to createinfrastructure for the production of primary processing, storage and marketing ofagricultural products.WDC – is a multifunctional infrastructure complex outside the city, consisting ofwarehouse and retail space with special equipment for calibration, packing,packing, and distribution of foodstuffs for wholesale distribution both in thedomestic and foreign markets.

STATE SUPPORTThe availability of support from the state through the provision of investmentpreferences, soft loans and subsidies, as well as benefits for the payment of taxes andcustoms payments for the import of equipment;• Full-scale land grant;• investment subsidies;• preferential loans of JSC "NUKH" KazAgro ";• the infrastructure in accordance with the program "Business Roadmap-2020".

LOCATİON Saryagash

PRODUCTS

THE TOTAL COST OF THE PROJECT

$ 36.3 million

İNDUSTRY

TARGETED MARKETS Kazakhstan and the near abroad

CONSTRUCTION OF WHOLESALE DISTRIBUTION CENTER IN SARYAGASH

Distribution center

Agricultural

COST FOR USE OF MUNICIPAL SERVICES

Natural gas (m3)

Electricity (kW / h)

Diesel (L) Petrol (L) Water (m3)Average salary

(thousand)Land tax (per 0,01 ha) Sewerage

(m3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 tg0,5<20

0,5>100 13,84 tg

PAYBACK PERIOD 7-9 years We need a land plot for the implementation of this project: for the constructionof the WDC - 200 hectaresAvailability of these land plots:In Saryagash - 200 hectares.

CONSUMERS:

Market prerequisites:

Project costBuildings and constructions 15 880 thousand US dollars

Electricity costs 6 114 thousand US dollars

other expenses(Taxes, staff salaries, etc.)

134 thousand US dollars

Total 22 128 thousand US dollars

INVESTMENT CLIMATE :

RK production of vegetable products does not fully provide domestic demand,despite the fact that every year the gross yield and yield increase. Kazakhstanmaintains its import dependence on the majority of vegetable crops; Kazakhstanhas stable domestic demand and imports the majority of vegetable crops fromneighboring countries (Uzbekistan, China and Kyrgyzstan); The opportunities forexport in large volumes are limited for the following main reasons: lack of domesticdemand for domestic production; sharply continental climatic conditions, which donot allow for year-round growing of vegetable products; a limited number ofirrigated lands suitable for growing vegetable products; undeveloped technologicalsystem for growing vegetable crops; lack of a developed infrastructure forprocessing of vegetable crops.

It is planned to place vegetable crops for sale at points of retail space saleswithin the WDC or wholesale buyers. Thus, vegetable products will be sold bothin the wholesale markets of the city, and in stores and supermarkets.Potential customers are wholesale buyers inside and outside of Kazakhstan. Inaddition, it is planned to conclude agreements with individual enterprises on thesupply of vegetable crops to kiosks located in residential complexes.

This center will provide an opportunity to improve the trade policy of theregion. Also, new sales markets will open for SHPP.

For the period from 2012 to 2016 the gross collection ofvegetables in the republic is gradually increasing and in2016 reached 3,795.2 thousand tons. The main areas thattraditionally grow vegetables are Almaty (944,200 tons),Turkestan (944,200 tons) and Zhambyl (718,800 tons). thetotal share of the three regions is 68.70% of the grosscollection in the whole country.

The dynamics of the average yield shows a uniformannual growth, which correlates with the gross collection ofvegetables in the whole country. The average import offruits and vegetables is approximately 400 thousand tonsper year, the export of fruits and vegetables isapproximately 530 thousand tons per year

CONSTRUCTION OF WHOLESALE DISTRIBUTION CENTER IN SARYAGASH

CHALLENGES TO BE SOLVED BY WDC:Limited access of Agricultural producers and cooperatives to markets• The presence in the food market of inefficient intermediaries, which lead to unjustified

price increases;• The lack of feedback between producers and consumers (production for the sake of

production, and not for the requirements of consumers by volume, nomenclature, product characteristics, etc.)

• Non-compliance with sanitary-epidemiological, veterinary and phytosanitaryrequirements for the sale of foodstuffs (sale of products from machinery, from the ground, etc.);

• There is no possibility of consolidating parties of foodstuffs into categories to ensure a homogeneous and sustainable supply of food for export.

Provision of Shymkent and Turkestan region with vegetable stores

Requirement for

storages, tons

Number of storages,

units

Storage capacity in

the city, tons

Security,%

Shymkent 78 671,8 8 33 200,0 42,2

Turkestan region 241 000 0 0 0

The proposed scheme: "A single wholesaler for all"(markets, retail stores, etc.)

Agricultural producers

SCC, SEZ Stores

Consumers

WDC

The investment project envisages the construction and launch of a wholesale distributioncenter with a total area of 38,700 sq. M. m, and provides services for the reception, storageand packaging of agricultural and food products.The WDC consists of warehouses, pavilions and other premises for wholesale trade inagricultural products, in which technological operations for the storage, packaging, marketingand transportation of agricultural and food products are generated.Also in the structure of the WDC there is a vegetable store, the main income of which comes

from the sale of fruit and vegetable products during the off-season and renting a storageroom for long- and short-term rent. Advantages for suppliers and manufacturers will beguaranteed access to trading platforms and marketing of agricultural and food products, aswell as simplification of trade links between Agricultural producers and end-users.

Advantages for wholesale buyers will be the availability of a wide range of agriculturaland food products directly from the Agricultural producers at competitive prices, and areduction in the cost of fruit and vegetable products.

CONSTRUCTION OF WHOLESALE DISTRIBUTION CENTER IN SARYAGASH

SWOT Analysis of the Project

STRENGTHS

Governmental support. There are state investment subsidies.Insignificant competition. There is a significant deficit of vegetable stores in cities.Influence on prices. Insufficient storage capacity for provision of vegetables and in the winter-spring period promotes the rise in prices.The construction of a vegetable store solves the problem of capacity shortages. Domestic production. Consumers to a large extent prefer domestic products, rather than imported ones. This is due to the fact that growth products, pesticides and other chemical agents are used in imported products.

WEAK SIDES

The capital intensity of services for storing vegetables. Considerable initial investment is required to launch the process of storing vegetables.High production costs. The bulk of the costs are for heat and electricity.Deficit of qualified personnel. In Kazakhstan, there is a shortage of qualified specialists - agronomists and equipment engineers. The level of training and retraining of personnel does not meet international standards.

CAPABILITIES

The capital intensity of services for storing vegetables. Considerable initial investment is required to launch the process of storing vegetables. High production costs. The bulk of the costs are for heat and electricity.Deficit of qualified personnel. In Kazakhstan, there is a shortage of qualified specialists - agronomists and equipment engineers. The level of training and retraining of personnel does not meet international standards.

THREATS

Rising prices for thermal energy, electricity and water. The increase in tariffs for water, heat and electricity leads to a decrease in the profitability and economic attractiveness of the Project.Competition from foreign suppliers.

The increase in energy costs will negatively affect the final cost of stored fruit and vegetable products, which will make it less competitive than cheap imports.

CONSTRUCTION OF WHOLESALE DISTRIBUTION CENTER IN SARYAGASH

CONSTRUCTION OF POULTRY POOL FACTORY WITH 30,000 TONS PER YEAR

DESCRIPTION OF THE PROJECT:In the course of the project implementation, it is planned to build a birdyardfor growing chickens, as well as the construction of an incubator, a broilerhouse, a slaughter shop and a feed mill

STATE SUPPORTUnder the program of state development of the agro-industrialcomplex in 2017-2021, the project is a priority direction forreducing imports through increasing domestic production. At theexpense of the state, investment costs are subsidized.

СТОИМОСТЬ ЗА ИСПОЛЬЗОВАНИЕ КОММУНАЛЬНЫХ УСЛУГ В ОБЛАСТИ

LOCATİON Tulkubas and Tolebi districts

Poultry farming

PRODUCT Poultry meat

THE TOTAL COST OF THE PROJECT

85 million euros

TARGETED MARKETS Kazakhstan, Russia, China

İNDUSTRY

Party A (Kazakhstan): not definedParty B (foreign investor): not definedOwn financing: possibleCo-investor: no

OBJECTIVE OF THE PROJECT:ESTABLISHMENT OF A MAJOR COMPLEX FOR THE PROCESSING OF EGG AND POULTRY MEAT

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage

(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

CREATION OF AGROINDUSTRIAL COMPLEX ON INDUSTRIAL PROCESSING OF VEGETABLES TO CANNED PRODUCS

DESCRIPTION OF THE PROJECT:The essence of this project is to create a unique Agro-Industrial Complex inZhetysay, on the site "New Industrial Zone" focused on:1. build a modern cannery factory2. build a freezing warehouseZ. to produce a shock frost of vegetables

STATE SUPPORTUnder the program of state development of the agro-industrial complex in2017-2021, the project is a priority direction for reducing imports throughincreasing domestic production. At the expense of the state, investment costsare subsidized.

LOCATİONThe Maktaral, Sairam and Saryagash districts

Industrial processing of vegetables

PRODUCT Canned products

THE TOTAL COST OF THE PROJECT

10 million euros

İNDUSTRY

TARGETED MARKETS Kazakhstan, Russia, China

ESTABLISHMENT OF AGRICULTURAL INDUSTRIAL COMPLEX ONINDUSTRIAL PROCESSING OF VEGETABLES TO CANNEDPRODUCTS

СТОИМОСТЬ ЗА ИСПОЛЬЗОВАНИЕ КОММУНАЛЬНЫХ УСЛУГ В ОБЛАСТИ

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage

(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

OBJECTIVE OF THE PROJECT:

Party A (Kazakhstan): not definedParty B (foreign investor): FriKoMa AG, Germany (FKM)Own financing: possibleCo-investor: no

DESCRIPTION OF THE PROJECT:Industrial greenhouses are constructions of huge scales thatallow to grow various vegetables, flowers and other crops all yearround.

STATE SUPPORTUnder the program of state development of the agro-industrialcomplex in 2017-2021, the project is a priority direction forreducing imports through increasing domestic production. At theexpense of the state, investment costs are subsidized.

LOCATİON Turkestan region, Turkestancity

Greenhouses

THE TOTAL COST OF THE PROJECT

Not determined

İNDUSTRY

TARGETED MARKETS Казахстан, Россия, Китай

CONSTRUCTION OF GREENHOUSES

CONSTRUCTION OF THE INDUSTRIAL TYPE100 HA GREENHOUSE.

Party A (Kazakhstan): JSC "NC" SEC "Shymkent"Party B (foreign investor): Not determinedOwn financing: possibleCo-investor: no

OBJECTIVE OF THE PROJECT:

COST FOR USE OF MUNICIPAL SERVICES IN THE TURKISTAN REGION

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

DESCRIPTION OF THE PROJECT:The benefit from the construction of the HPP is a reduction in the cost ofelectricity production and a reduction in its deficit by about 78 million kWh,in addition, about 300 new jobs will be created during the constructionperiod.

STATE SUPPORTThe implementation of projects in the field of renewable energysources became possible with the release of the Law of the Republicof Kazakhstan "On Support for the Use of Renewable Energy Sources"adopted within the framework of the concept of the transition of theRepublic of Kazakhstan to a "green economy". The state carries outleasing financing of investment projects within the framework ofimplementation of state programs on industrial and innovativedevelopment and infrastructure development of "Nurly Jol"

Tolebi district

Power Engineering

Electricity

26,9 million US dollars

Kazakhstan, Russia, China

Party A (Kazakhstan): Not definedParty B (foreign investor): Not determinedOwn financing: possibleCo-investor: no

CONSTRUCTION OF MINI HPP

Launching a hydroelectric plant using a renewable energy sourceto meet the demand for electricity in the Tolebi district

OBJECTIVE OF THE PROJECT:

COST FOR USE OF MUNICIPAL SERVICES IN THE TURKISTAN REGION

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

LOCATİON

PRODUCT

THE TOTAL COST OF THE PROJECT

İNDUSTRY

TARGETED MARKETS

CONSTRUCTION OF THE FACTORY FOR DEEP PROCESSING OF GRAIN

DESCRIPTION OF THE PROJECT:The technology of deep processing of grain (in our case wheat) allows you to get starch,gluten (gluten) and glucose syrup from flour, which are currently scarce for food industryenterprises in Kazakhstan. The provision of enterprises with starch 40%, gluten 20%, andglucose syrup 0% of the demand. The rest are purchased by import. The construction of theplant contributes to the solution of the problem of import substitution.Currently, a land plot has been allocated on the territory of the industrial zone, and thenecessary technology has been chosen for the implementation of the project.

STATE SUPPORTUnder the program of state development of the agro-industrial complex in2017-2021, the project is a priority direction for reducing imports throughincreasing domestic production. At the expense of the state, investment costsare subsidized.

The Maktaral, Sairam and Saryagash districts

Agribusiness

2,2 thousand tons of finished products

12,3 million US dollars

Kazakhstan, Russia, China

Construction of a plant for deep processing of grain in the industrialzone "Tyulkubas"

OBJECTIVE OF THE PROJECT:

Party A (Kazakhstan): Enbekshi LLPParty B (foreign investor): Not determined Own financing: possibleCo-investor: no

COST FOR USE OF MUNICIPAL SERVICES IN THE TURKISTAN REGION

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

LOCATİON

PRODUCT

THE TOTAL COST OF THE PROJECT

İNDUSTRY

TARGETED MARKETS

CULTIVATION OF SAFFLOWER AND EXPANSION OF THE PLANT FOR THE PROCESSING OF OIL CROPS

DESCRIPTION OF THE PROJECT:Corporation "Kainar" is one of the largest enterprises for processing and growing agricultural productsin the Turkestan region. The group includes more than 10 enterprises. The project involves theexpansion of the plant LLP "Kaynarmay" for the production of vegetable oil from cotton, sunflower andsafflower seeds. The plant's productivity is 360 tons of raw materials per day. At the plant in 2006, thepress section was reconstructed, where the oil presses EP-16-3 of the world famous Germancompany Harburg-Freudenberger gmbh were installed in place of the Russian oil presses MP-68. Thebalance of the company has its own material and technical supply as well as a fleet of cargo specialequipment.

STATE SUPPORTUnder the program of state development of the agro-industrial complex in2017-2021, the project is a priority direction for reducing imports throughincreasing domestic production. At the expense of the state, investment costsare subsidized.

Turkistan Region

Industrial processing of oilseeds

Vegetable oils

10 million US dollars

Kazakhstan, Russia, China

ESTABLISHMENT OF AGRICULTURAL INDUSTRIAL COMPLEX ONINDUSTRIAL PROCESSING OF VEGETABLES TO CANNEDPRODUCTS

OBJECTIVE OF THE PROJECT:

Party A (Kazakhstan): Corporation "Kainar"Party B (foreign investor): Not determined Own financing: possibleCo-investor: no

COST FOR USE OF MUNICIPAL SERVICES IN THE TURKISTAN REGION

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

LOCATİON

PRODUCT

THE TOTAL COST OF THE PROJECT

İNDUSTRY

TARGETED MARKETS

MODERNIZATION OF THE PLANT FOR BRICK PRODUCTION

DESCRIPTION OF THE PROJECT:Given the existing distribution channels and increasingdemand, the project implies the construction of a modern plantusing German technology. Currently, the local investor has afactory for the production of 20 million bricks per year, whichdoes not meet the quality standards. Also, this investor hasassets in the form of a dairy farm, a ceremonial hall, etc.

STATE SUPPORT

LOCATİON Turkestan Region, Ordabasy District

Construction industry

PRODUCT production of 20 million bricks per year

THE TOTAL COST OF THE PROJECT

6 million US dollars

İNDUSTRY

TARGETED MARKETS Kazakhstan, Russia, China

Modernization of the current project

COST FOR USE OF MUNICIPAL SERVICES IN THE TURKISTAN REGION

Natural Gas (м3) Electricity(kW/h)

Diesel (L) Petrol (L) Water (м3) Average wage Land tax (per 0,01 ha) Sewage(м3)

29,9 tg 19,4 tg 158 tg 156 tg 205 tg 101 th.tg0,5<20

0,5>100 13,84 tg

OBJECTIVE OF THE PROJECT:

Party A (Kazakhstan): AGRO V LLPParty B (foreign investor): Not determined Own financing: possibleCo-investor: no