Nurly Zhol – State Program for Infrastructural Development for 2015 - 2019
“Nurly Zhol” State Program of Infrastructure Development for 2015-2019 (hereinafter referred to Program) has been developed to implement the Address of the President to the citizens of November 11, 2014 “Nurly Zhol – way to the future”.
The purpose of the program is to create the unified economic market in Kazakhstan by means of macro regions of the country establishing and identifying of the cities of Almaty, Astana, Aktobe, Shymkent and Ust-Kamenogorsk as national and international hubs equipped with modern infrastructure and integration of the transport infrastructure of the country into the international transport system.
In particular JSC "Baiterek" National Managing Holding is responsible for the implementation of such areas of the state programs as: level of housing availability for citizens and competitiveness of business entities increasing, domestic engineering and export supporting.
Implementation of measures to support separate economy branches, domestic exporters of processing industry and other measures will ensure preservation of current output, existing workplaces as well as creation of new ones in the face of deteriorating market conditions on external markets.
In general, implementation of the Program through increasing of state investment for infrastructure development and entrepreneurship support will enhance economic growth not only in short-term prospects but also create the preconditions for sustainable growth in long-term prospects.
The program was previously changed by the Decree of the President of the Republic of Kazakhstan dated December 12, 2016 No. 389 "On Amendments and Additions to the Decree of the President of the Republic of Kazakhstan dated April 6, 2015 No. 1030 "On Approval of "Nurly Zhol" State Program of the Infrastructure Development for 2015-2019 and additions to the Decree of the President of the Republic of Kazakhstan dated March 19, 2010 No. 957 "On approval of the List of State Programs" and recognition of certain invalid decrees of the President of the Republic of Kazakhstan"
State program of the infrastructure development "Nurly Zhol" for 2015 - 2019
The basis for the development
Point 4 of the National plan for the implementation of the Message of the President of the Republic of Kazakhstan to the people of Kazakhstan of November 11, 2014 "Nurly Zhol - a way to the future"
The state body responsible for the development of the Program
Ministry of National economy of the Republic of Kazakhstan, Central and local government bodies
Objective of the Program
Formation of the unified economic market by means of integration of macro regions of the country on the basis of effective infrastructure establishing on the principle of hub to ensure long-term economic growth of Kazakhstan, as well as anti-crisis measures taking to support certain areas of the economy on the conditions of business activity in foreign markets worsening
1) formation of modern transport infrastructure of Kazakhstan, as well as its integration into the international transport system;
2) progress of an industrial infrastructure and a tourist infrastructure;
3) strengthening of a power infrastructure within the limits of the Uniform electrical power system;
4) modernization (reconstruction and construction) of the infrastructures of housing and communal services and systems of heat supply, water supply and water removal;
5) increase of the availability of habitation for citizens;
6) progress of an infrastructure of area of education;
7) increase of the competitiveness of subjects of business;
8) support of the domestic mechanical engineering;
9) support of the export;
10) increase of the competitiveness of the subjects of the agrarian and industrial complex;
11) infrastructure providing for the projects of the Unified Business Support Program "Business Roadmap-2020";
12) maintenance of a safety of quality of production through the progress of the laboratory bases;
13) maintenance of a level of scrutiny of territory of Kazakhstan with an assessment of the forecast resources
Timeframes of the realization
2015 - 2019
Achievement of the following target indicators:
1) GDP growth for 8.7% by 2014 in 2019;
2) Creation of works for 511.2 thousand of people in 2015-2019, including:
Permanent-167,9 thousand of people;
Temporary - 343.3 thousand of people;
3) WEF rating of the basic infrastructure quality upgrade up to 57 places in 2019;
3) amount of transit cargo increasing on the territory of the Republic of Kazakhstan, incl. rail and motor transport up to 18.1 million tons in 2019.
Sources and volumes of financing
The events and investment projects of "Nurly Zhol" State Program will be financed from the National Fund of the Republic of Kazakhstan, the republican and local budgets, international financial institutions and organizations, own funds of national companies and development institutions, as well as private investments for a total indicative price of 7.8 Trillion KZT, including:
Sources of financing
Total costs of the program:
International Financial Institutions
Own funds of national companies
and development institutions
Private investments and PPP
Statement of implementation of «Nurly Zhol» programme of infrastructure development for 2015-2019 (hereinafter - «Nurly Zhol» programme)
Support of business entities (through JSC «Development Bank of Kazakhstan»)
In accordance with the Decree of the Government of the Republic of Kazakhstan (hereinafter – DGRK) of March 11. 2015 No.124. 50 billion tenge of borrowed funds were allocated from National Fund of the RK in order to support large business entities through interbank lending of JSC «Development Bank of Kazakhstan» (hereinafter – Development Bank).
Within the framework of this DGRK as of 01.08.2017,12 second-tier banks have approved 60 projects worth 56 515.5 million tenge from large business entities that operate in processing industry with consideration of the secondary acquisition.
The following data is provided by the second-tier banks, within support programme for large business entities (within DGRK of December 5, 2014 No.1275 and of March 11 2015, No.124):
- actual number of created workspaces for 2015-2017 – 1 564;
- actual income for 2015-2017 – 1.57 trillion tenge;
- actual paid taxes in 2015-2017 – 172.9 billion tenge.
Support of business entities (through JSC «Damu» Enterpreneurship Development Fund)
Under of 50 billion tenge, allocated under «Nurly Zhol» programme as of July1, 2017, 518 projects were financed for small businesses worth 100.6 billion tenge, including 267 projects worth 60.4 billion tenge for the purpose of working capital financing.
As a part of the implementation of section 23 of national plan to implement the orders of the President of Kazakhstan of November 11, 2014, «Nurly Zhol – Path to the future» (hereinafter – National plan) JSC «Damu» together with the Ministry of National Economy of the RK, Ministry of Finance and JSC «NMH «Baiterek» carry out the attraction of credit lines from international financial organizations (hereinafter – IFO) for a total amount of 155 billion tenge.
In addition, the anti-crisis action plan of the Government of the Republic of Kazakhstan and National Bank to ensure economic and social stability for 2016-2018 proposes the fund raising activities from MFO’s for 65 billion tenge (including, 30 billion tenge from European National Bank, 30 billion tenge from Asian Development Bakng and 5 billion tenge from European Development and Reconstruction Bank).
Currently there is an agreement between «Damu» and MFO on issues of attracting credit lines.
However, according to data, presented by the State Revenue Committee, through the implementation of such measures by the participants of «Nurly Zhol» programme (within the framework of DGRK of March 11, 2015 No. 124) 569.6 billion tenge worth of goods have been sold, around 5.7 thousand workplaces have been created and 50.5 billion tenge of taxes have been paid for 2015-2017.
Development of the national engineering industry
In order to support national engineering industry 35 billion tenge have been allocated from the National Fund (DGRK of April 23, 2015, No.271), out of which 26 billion tenge were forwarded to auto lending for acquisition of light vehicles through second-tier banks, 4 billion tenge were allocated for discount lease financing of transport vehicles and automobile equipment of the special purpose through JSC «DBK Leasing», 5 billion tenge were allocated to support the production of passenger carriages.
As of August 17, 2017 the Development Bank has coordinated 9 454 applications from second-tier banks for auto lending for a total amount of 36 302.8 million tenge. 6 second-tier banks granted 9 200 credits for purchasing vehicles from national manufacturers for a total amount of 35 382.3 million tenge.
Within the framework of lease financing of national automakers through JSC «DBK Leasing» with consideration of approved changes in leasing transactions (partial early repayment and termination of financial leasing contracts) the amount of assimilated funds among automakers is 3.99 billion tenge (initial distribution) for 22 leaseholders, and 5.54 billion tenge with consideration of the secondary assimilation.
In order to support the production of passenger carriages on July 31, 2015 the Development Bank has signed a bank loan agreement with JSC «Passenger wagon leasing company» for 5 billion tenge in order to purchase 28 «Talgo» passenger wagons with the purpose of providing new high quality wagons for organization of high-speed traffic. Full assimilation of funds occurred on August 7, 2015.
Additionally, for this purpose around 2.07 thousand workplaces have been reserved for 2015-2017, 4.79 billion tenge worth of taxes have been paid, and around 9.39 thousand units of transportation have been implemented.
Stimulation of export and pre-export financing
As a part of support to exporters, 3 tranches of funds have been allocated from National Fund: 1) 35 billion tenge in 2015. 2) 15 billion tenge in 2015 and 3) 15 billion tenge in 2016 (DGRK of April 23, 2015, No.271). Additionally, in accordance with the plan of additional anti-crisis measures for 2016, approved at the meeting of the Government of the RK (protocol of February 15, 2016 No.5, herein after –Plan) an additional financing has been performed for pre-export (export) credit of the Development Bank for the amount of 30 billion tenge through JSC «Integrated Accumulative Pension Fund» (hereinafter – IAPF).
Within the 1 and 2 tranches as of August 17 2017, the Development Bank and JSC «DBK Leasing» have approved 10 export transactions worth 50 billion tenge, from which the actual initial assimilation was 50 billion tenge. Additionally the secondary assimilation on the first two tranches as of August 17 2017 was 86.39 billion tenge.
As of August 17, 2017, within the framework of financing 3 tranches through the National Fund and issued bonds under the Plan, the Development Bank has approved funding of 10 export transactions for the total amount of 42.27 billion tenge, out of which 44.62 billion tenge with consideration of using recoverable funds.
Additionally, for this purpose around 3.7 thousand workplaces have been reserved for 2015-2017, 15.6 billion tenge worth of taxes have been paid, and 234.2 billion tenge of revenue have been received from sales of products.