On the implementation of the “Nurly Zhol” State industrialization program Program.

On the implementation of the “Nurly Zhol” State industrialization program Program.
Since the beginning of the current year, the implementation of the third industrialization program has begun.
On behalf of the Head of State, the goal of the Program is a competitive manufacturing industry in the domestic and foreign markets. The main emphasis is placed on export-oriented enterprises aimed at producing products of medium and high technological complexity.
According to the results of the first half of this year, the growth of the manufacturing industry amounted to 4.8% (5.8 trillion tenge).
The volume of investments in fixed assets of the manufacturing industry for the same period amounted to 373.1 billion tenge, an increase of 6.1% over the corresponding period of last year.
As a result of restrictions related to international trade, which were the consequences of the viral pandemic, the volume of exports of manufacturing products in January-May of the current year decreased by 18.6% and amounted to 5.2 billion US dollars.
The number of people employed in the sector at the end of the 1st quarter of this year is 601.4 thousand people, having increased by 1.4% compared to the corresponding quarter of last year.
As of July 1, 2020, 16.4 thousand manufacturing enterprises are operating.
Within the framework of the Industrialization Program, since the beginning of the year, state support measures have been provided for a total of 87.4 billion tenge.
For reference:
1.  “DBK-Leasing” 
JSC carried out leasing financing for 41 billion tenge;
2.  “ESC“ KazakhExport ”JSC accepted insurance obligations for 26.4 billion tenge, trade financing – 11.1 billion tenge, pre-export financing – 7.4 billion tenge;
3.  “Atameken”NPP provided service support to exporters for 82.9 million tenge;
4.  “KTSIE” QazIndustry “JSC reimbursed costs in the direction of” Labor productivity “for 60.1 million tenge, for promotion for export – 1.4 billion tenge).
Within the framework of the Industrialization Map, by the end of this year, according to akimats, it is planned to implement 160 projects worth 1.1 trillion. tenge with the creation of more than 17 thousand permanent jobs.According to the results of the first half of the current year. 4 projects were launched for a total amount of 23.7 billion tenge with the creation of about 900 jobs.
For reference:
1) HyundaiTransKazakhstan LLP (Hyundai Trans Kazakhstan), construction of a plant for the production of Hyundai passenger cars, the industrial zone of Almaty (20.3 billion tenge, 700 jobs, capacity – 45 thousand units per year);
2)  “Alina Holding” (Alina Holding)LLP , construction of the TMN workshop (solid-ground filler), Aktobe region (1.5 billion tenge, 40 jobs, capacity – marble filler – 20 tons / hour, mineral powder – 7, 5 tons / hour);
3) GEBA LLP, construction of a plant for the production of frozen semi-finished products, Aktobe region (1 billion tenge, 120 jobs, capacity – 10 tons per day);
4)  “Zhetysu Soya” LLP, construction of a plant for the production of bypass protein and soybean oil, Almaty region (884 million tenge, 31 jobs, capacity – 16 thousand tons of raw materials per year).
In connection with the great demand for personal protective equipment (PPE) during the pandemic, 4 new projects were launched this year, this is  “Bizhon”

LLP (Bizhon) enterprise for the production of PPE and 3 new enterprises that produce disinfectants  “Topan” LLP,  “SARISUPPLIERS” LLP (Sari superlayers), “NeoChemTech” IE.

The following major projects are also being implemented this year.
1) Expansion of the processing capacities of the Aktogay GOK by duplicating the existing sulfide plant “KAZ Minerals” (KAZ Minerals), East Kazakhstan region (investments – 396 billion tenge, 700 jobs, capacity – sulfide ore processing up to 50 million tons per year);
2) Construction of a plant for the production of mineral fertilizers in the amount of at least 1 million tons/year  “Eurochem-Fertilizers” LLP, Zhambyl region (investments – 173.1 billion tenge, 1200 jobs, capacity – 1 million tons per year) ;
3) Construction of a new processing complex of  “RG Gold” (ERG Gold) LLP, Akmola region (investments – 105 billion tenge, 700 jobs, capacity – 5.0 million tons of ore per year);
4) Construction of Aksu GOK, Akmola region, AK Altynalmas JSC (investments – 86.2 billion tenge, 737 jobs, capacity – 5 million tons of ore per year);
5) Construction of a plant for the production of tires Doublestar (Doublestar)  “QazTyreTech” (KazTayerTek) LLP, Karaganda region (investments – 56 billion tenge, 1000 jobs, capacity – 3 million tires for passenger vehicles, 600 thousand tires for commercial vehicles and buses) ;
6) Plant for the production of buses, quarry, and road-building equipment Yutong (Yutong)  “QazTehna” (KazTehna) LLP,  Karaganda region (investments – 45.2 billion tenge, 400 jobs, capacity – 1200 units per year).
7) Plant for the production of methyl-tert-butyl ether and polypropylene LLP “Shymkenstkaya chemical company” in Shymkent (investments – 28.1 billion tenge, 350 jobs, capacity – 80 thousand tons of methyl-tert-butyl, 100 thousand tons polypropylene);
8) Bulk Block House Building Plant (OBD) ModeX Astana LLP (Modex Astana), Nur-Sultan (investments – 27.8 billion tenge, 700 jobs, capacity – 405 thousand sq m);

9) Plant for the production of building materials “Koktas-Aktobe” JSC , Aktobe region (investments – 15 billion tenge, 70 jobs, capacity – 120 million pieces of sand-lime bricks, 18 thousand binder lime, 72 thousand tons of crushed stone per year );
10) Modernization of the foundry and construction of an enrichment plant with an exhibition and office multifunctional complex of  “Qaz Carbon” LLP, (Kaz Carbon) in Karaganda, Karaganda region (investments – 8.8 billion tenge, 300 jobs, capacity – 60 thousand tons foundry products, 560 thousand tons of coal concentrate, 60 thousand tons of coal coke).

I would like to note that the current situation with quarantine measures in the country will inevitably affect the timely implementation and development of investments in projects in the manufacturing industry.
Now, many enterprises are faced with such problems as delays in the delivery of equipment and components, lack of raw materials for production, restrictions on the entry of foreign highly qualified specialists.
In this connection, the timing of the implementation of many projects is postponed to the 3rd and 4th quarters of the current year.

Development of local content and import substitution
At the end of 2019, local content in regulated procurement since the accession of the Republic of Kazakhstan to the WTO has had a small but positive trend. So, in 2019, compared to 2018, the share of local content increased by 0.4% in monetary terms for goods by 519.8 billion tenge.
For the 1st quarter of 2020, the total volume of purchases of goods, works and services of the subjects of monitoring (excluding subsoil users of the mining complex and coal, since according to the Subsoil Code, reports are submitted once a year, the submission of a quarterly report is not provided) amounted to 4.7 trillion. tenge, local content – 2.5 trillion. tenge (51.9%).
In order to increase the share of local content in public procurement and procurement of Samruk-Kazyna NWF JSC under the Ministry, a Working Group was created, which includes representatives of central and local executive bodies, Atameken NCE, Samruk-Kazyna NWF and industry associations.
The working group monitors local content on a monthly basis.
Today, high import dependence is observed in the manufacturing industries.
In order to increase the share of local content in these industries, it is planned to launch 73 projects for a total amount of more than 1.6 trillion. tenge, which in turn will reduce the import of the manufacturing industry by 20% ($ 6.1 billion) by 2025.
The introduction of new projects will increase the saturation of the domestic market for a number of finished commodity items.
Priority has been established for 2 years for state purchases of domestically produced cars and electrical equipment in the implementation of public procurement under the EEU agreement, by removing this list of goods from the national regime, in public procurement.
In addition, within the framework of the Special Procedure for Public Procurement, the List of domestic producers (2,809 enterprises) was approved for public procurement by requesting price proposals.
The list is formed on the basis of valid CT-KZ certificates and Industrial certificates. At the same time, the List is updated jointly with the “Atameken” National Chamber of Entrepreneurs of the Republic of Kazakhstan on a daily basis.

Changes have been made to the Rules for the acquisition by subsoil users and their contractors of goods, works, and services used in operations for the extraction of solid minerals “, regarding the launch of the mechanism during the period of the state of emergency, a special procedure for the acquisition of goods, works and services used in operations for subsoil use from Kazakhstani manufacturers, or of foreign origin, provided that such GWS are not produced on the territory of the Republic of Kazakhstan.
As part of the instructions of the President of the Republic of Kazakhstan, following the results of the extended meeting of the Government of the Republic of Kazakhstan, work will continue to increase the share of local content, and at the end of the year, an analysis of government procurement, procurement of subsoil users, the quasi-public sector, and backbone enterprises will be carried out.