The Minister for Investments and Development of the Republic of Kazakhstan, Zhenis Kasymbek told about the ongoing implementation of major goals that were outlined in the “Sate of the Nation Address” to the people of Kazakhstan by the head of state, Elorda.info reports.
“The major industrial sectors that are under supervision of Ministry for Investments and Development achieved positive growth dynamics. It became possible because of the adopted state support measures and stabilization of prices for base metals on world markets. In summary, domestic industry managed to adapt to new realities and market conditions.” said Zhenis Kasymbek.
According to the Minister, in the first quarter of 2017 the volume of industrial production in Kazakhstan increased by 5.8%. In mining industry growth reached the rate of 5.6%.
“The main drivers of growth were increase in the extraction of non-ferrous metal ores (by 10.8%) and iron ore (by 11.4%). The manufacturing sector also shows steady positive growth. As a result of the ongoing industrialization policy, the volume of the production grew by 6.5% in the first quarter.” said K. Kasymbek.
At the same time, large enterprises of the metallurgical industry significantly increased their production levels.
Steel production in Arcelor Mittal Temirtau increased by 7% (from 889.5 thousand tons to 951.9 thousand tons), production of ferroalloys in Kazchrome by 8% (from 437.3 thousand tons to 471.3 thousand tons Tons), Kazzinc increased production of lead by 10% (from 33 thousand tons to 36,5 thousand tons), gold by 12% (from 3,8 tons to 4,3 tons), Kazakhmys Corporation increased copper production by 2% (from 55,4 thousand tons to 56,4 thousand tons), gold by 6% (from 0,85 tons to 0,9 tons) and JSC UKTMC increased the output of titanium alloys and ingots by 5 %.
“This year, under the framework of the industrialization map, it is planned to launch more than 100 projects with the total budget of 700 billion tenge, which will create 10,000 permanent jobs. It includes 10 projects with total amount of 7.6 billion tenge in the first quarter of the year with 415 permanent jobs created ” – continued the head of the Ministry for Investments and Development.
Minister Kasymbek also named the most significant projects implemented by the Ministry in 2017: a complex for the production of railway wheels Prommashkomplekt LLP (Pavlodar region, the second half of the year); plant for the production of sheet glass (Kyzylorda region, the second half of the year).
A total of 320 projects amounting to about 3.7 trillion tenge are now at development stage, these projects will create 36,000 permanent jobs.
Meanwhile, technological modernization of domestic enterprises is planned for later part of 2017. It is considered to approve a set of state measures on the implementation of technological re-equipment in base industries. For this purpose, the Ministry for Investments and Development has already developed a road map.
The number of foreign partners are involved such as the German institute “Fraunhofer” and the Swedish Council for Trade and Investments “BusinessSweden”, which will provide consulting support.
Together with foreign partners, it is planned to develop a methodology for assessment of the manufacturing and mining sectors on the readiness for the introduction of Industry 4.0 (technological level, degree of automation, etc.). Currently, the analysis of the current situation on introduction of digital technologies in domestic enterprises, and analysis of similar initiatives by Kazakhstan’s largest companies’ is being conducted.
The Minister also mentioned major statistical figures on the transport sector.
In particular, the volume of transport services (IFI) increased by 3.4%. Freight turnover increased by 5.4% and reached 125 billion tkm. The volume of cargo transportation grew by 1.1% and reached 813 million tons. In the first quarter of 2017, compared to the same period last year, the volume of transit container traffic increased three-fold (amounting to 63 322 TEU).
The container traffic in the direction of the PRC-EU-PRC increased 1.6 times (to 31 000 TEU).
Within the framework of the state program “Nurly Zhol”, 23 projects in the road sector, with the total budget of 1.7 trillion tenge are planned to be implemented in 2017-2019.
Furthermore, the implementation of 7 projects is still ongoing, with 602 km planned to be completed by the end of the year (Astana-Karaganda, Center-East, Beineu-Aktau, Center-West, Kapshagai-Taldykorgan, Petropavlovsk-Russian border and Uralsk-Kamenka).
For reference: Center-East – 232 km, Kapshagai – Taldykorgan – 24 km, Beyneu-Aktau – 230 km, Bypass Kordai – 40 km, Uralsk-Kamenka – 50 km, Aktobe-Atyrau – 26 km.
On funds allocated from the republican budget and loans from international financial institutions (IFIs) it is planned to start reconstruction of 16 new projects with a total length of 3,2 thousand km (Aktobe – Makat, Atyrau – Astrakhan, Kurty – Burylbaytal, Burylbaytal – Balkhash, Merke – Burylbaytal, Taldykorgan – Өskemen, Uzynagash – Otar, Zhetybai – Zhanaozen, Kalbatau – Maykapshagai, Usharal – Dostyk, Beyneu – Akzhigit, Kostanay – Denisovka, Shchuchinsk – Zerenda, Southwest bypass of Astana, Osinovsky pass, Taskesken – Bakhty).
“More than 100,000 people will be involved in the construction and reconstruction of roads and highways,” said K. Kasymbek.
According to the minister, one of the Ministry’s major tasks is to provide the population with affordable housing under the framework of the state program “Nurly Jer”. The program is aimed at solving the most important task – providing housing to 1.5 million families in the next 15 years.