JSC "Development Bank of Kazakhstan" (subsidiary of the JSC "National Managing Holding Baiterek, hereinafter - DBK) launches financing of the comprehensive modernization project of the plant KazAzot for the production of mineral fertilizers in Aktau. The total cost of the project is more than 56 billion tenge; DBK provides 72.3% of the funds as a loan in the national currency up to 10 years. The project is implemented under the State Program of Industrial-Innovative Development of Kazakhstan 2015-2019 (SPIID).

The comprehensive modernization involves the expansion of facilities for the production of ammonia and nitrogen fertilizers from 300,000 tonnes to 400,000 tonnes per year by 2018, creating a full production cycle - from mining and processing of raw materials to distribution of finished products. The project includes: development of the gas field Shagyrly-Shomyshty; construction of gas piston power plant for recycling of ammonia from the tank and purge gases and tower granulation. Some 60% of agriculture and mining production will be supplied to the domestic market; the other 40% will be exported.

"As a result of large-scale modernization and application of new technologies in manufacturing, we expect to reduce the cost of finished fertilizers by 34% as early as 2018, and the quality of the products will be higher. Also, due to the development of new fields it is expected to quadruple its production and sale of natural gas over the next ten years. The support provided by the Baiterek Holding will not only contribute to import-substitution of products, but also develop its export lines in Lithuania, Russia and the countries of Central Asia: Kyrgyzstan, Turkmenistan and Uzbekistan," said Deputy General Director of KazAzot Ruslan Yevloyev.

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Export-import of fertilizers

According to the JSC National Agency for Export and Investment  KAZNEX INVEST, export of fertilizers from Kazakhstan in 2014 grew by 5.4% to $65.7 million compared to 2013, the volume of imports, by contrast, declined by 27.4% to $85.8 million.

Top five countries that import Kazakhstan’s fertilizers are: Turkmenistan, Ukraine, Russia, Kyrgyzstan and Tajikistan.

The SPIID – 2 Projects

As part of the financing of the SPIID – 2 projects (by means of the National Fund which has allocated 75 billion tenge), under the DBK as of December 17, 2015; 5 projects were approved for a total amount of 111.5 billion tenge in loans, of which 47 billion tenge of National Fund has been spent. The bank has financed projects for the implementation of networks LTE / GSM / UMTS ALTEL; created a complex for the production of railway wheels Prommashkomplekt; built a rail and ties plant with capacity of 430 000 tonnes per year in Aktobe; carried out a gasification project of five settlements in the Kyzylorda region via KazTransGas; carried out modernization of the plant for the production of mineral fertilizers " via KazAzot.

KazAzot was established in November 2005. The company is the only producer of ammonia and ammonium nitrate in Kazakhstan. The plant produces chemical products with focus on the production of mineral fertilizers for the needs of agriculture and mining.

The JSC Development Bank of Kazakhstan – is a national institute of modernization and development of infrastructure and non-primary sectors of the economy of Kazakhstan that was established in 2001. The main activities of DBK include: development of industrial infrastructure and processing industry and promotion and attraction of foreign and domestic investment to the economy. The DBK is one of the largest investment operators of SPIID. DBK is part of the JSC National Managing Holding Baiterek.

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