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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"

 

Program Passport

Program Name 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
Tasks

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
Target indicators

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:
Republican budget
National Fund
Local budget
International Financial Institutions
and Organizations
Own funds of national companies
and development institutions
Private investments and PPP
Necessary funds 
(billion KZT)

7 751,9
429,4
2 355,9
299,4

3 954,2

673,7
39,3

 

Iplementation of the program

Information on the Implementation of “Nurly Zhol” State Program for Infrastructural Development (hereinafter referred to as the Program) for 2015-2019 as of 01.09.2019

 

1. Direct outcomes indicators performance of the Program (as per the Decree of the President of the Republic of Kazakhstan dated April 6, 2015 No. 1030)

 

Volume of products manufactured by business entities that received support under the Program

 

According to the data provided by second-tier banks (hereinafter referred to as STBs) under the Program for large-scale business entities support (hereinafter referred to as LSBEs) in the manufacturing industry through the Development Bank of Kazakhstan JSC (hereinafter referred to as DBK JSC, Development Bank) (within the Resolution No. 1276 of the Government of the RoK dated December 5, 2014, No. 124 dated March 11, 2015), the volume of sales of products by enterprises during 2015-2018 amounted to 4,035.1 billion tenge (including 358.8 billion tenge in 2015, 925.5 billion tenge in 2016, about 1,283.7 billion tenge in 2017, 1 467.1 billion tenge in 2018), as well as 707.6 billion tenge for the 1st half of 2019.

 

According to data provided by the State Revenue Committee under the SME support through Damu Fund (3rd tranche of the National Fund of the RoK), end products worth 527.6 billion tenge were sold (including 93 billion tenge in 2015, 118.2 billion tenge in 2016, 154.2 billion tenge in 2017, 162.1 billion tenge in 2018).

 

Number of new jobs created by business entities that received support under the Program

 

According to the data provided by the STBs within the LSBEs Support Program in manufacturing through DBK JSC (under the Resolution No. 1276 of the Government of the Republic of Kazakhstan dated December 5, 2014, No. 124 dated March 11, 2015), 2,099 jobs were created (including 845 jobs in 2015, 658 jobs in 2016, 260 jobs in 2017, 187 jobs in 2018, 149 jobs in the 1st half of 2019).

 

According to the data provided by the State Revenue Committee within SMEs support through Damu Fund (3rd tranche of the NF RoK), the de facto number of created new jobs is 4 052 (including 2 870 jobs in 2015; 811 jobs in 2016, 211 jobs in 2017, 160 jobs in 2018).

 

Thus, the total number of jobs created under the Program through Baiterek NMH JSC amounted to 6,151 units.

 

Motor vehicles volume of sales under the Program

 

Under the Program’s section of “Domestic Mechanical Engineering Development” during 2015 – 2nd Q of 2019, enterprises that received support from Baiterek NMH JSC sold more than 12.9 thousand units of vehicles. At the same time, as of 01.09.2019, 12,406 units of motor vehicles were sold within the financing of motor vehicles manufacturers through the STBs, and 688 units of motor vehicles were sold within the financing through DBK-Leasing.

 

Coverage of the territory of the Republic of Kazakhstan with aviation support using domestic helicopters

 

In August 2015, the Council for NF RoK Management (Minutes No. 01-9.3 dated August 28, 2015) excepted the decision on funds allocation within the “support for the domestic helicopters production” in the amount of 10 billion tenge and decided to increase the limit in the direction of the “support for domestic motor vehicles manufacturers” from 20 billion tenge to 30 billion tenge.

 

Non-recourse-based exports of enterprises that received support under the Program

 

Within the “Export and Pre-Export Financing Stimulation” Program, the revenue of enterprises from the sale of products for export amounted to 507.1 billion tenge during 2015 – 1st Q of 2019, including 116.7 billion tenge in 2018, 62.3 billion tenge in the 1st half of 2019.

 

2. Fulfillment of the Program Implementation Action Plan Provisions (as per the Resolution No. 344 to the Government of the RoK dated April 27, 2015)

Review of the opportunity for leasing financing of locally produced freight cars

Under the fulfillment of Clause 31 of the Additional Operational Anti-Crisis Action Plan for 2016 (Minutes of Meeting No. 5 of the Government of the Republic of Kazakhstan dated February 15, 2016) DBK JSC attracted funds of the UAPF in the amount of 17.5 billion tenge at a rate of 14% per annum on August 1, 2016 in order to support SMEs and basic industries, for leasing financing of locally produced freight cars, while a leasing transaction was financed using these funds at the request of Vagon Stroi Management LLP.

Placement of credit funds in separate bank accounts of STBs in the NB RoK

In accordance with the Resolution No. 124 of the Government of the RoK dated March 11, 2015, borrowed funds in the amount of 100 billion tenge were allocated from the National Fund of the Republic of Kazakhstan to support business entities through interbank lending mechanisms, including 50 billion tenge to support LSBEs through DBK JSC, 50 billion tenge to support SMEs through Damu EDF JSC.

Under the above Resolution of the Government of the RoK through DBK JSC, as of 01.08.2019, 12 second-tier banks approved 94 projects of LSBEs in the manufacturing industry in the amount of 145,853 million tenge, 93 projects in the amount of 140,503 million tenge were financed. Thus, 278% of the funds out of the allocated 50 billion tenge were actually disbursed given the secondary funds disbursement.

As of 01.08.2019, given the secondary funds disbursement, second-tier banks financed 718 projects in the amount of 178 billion tenge (including from repayable funds) through Damu EDF JSC.

Attraction of credit lines totaling more than 155 billion tenge during 2015 - 2017 from international financial organizations to support SMEs

 

As of 01.01.2018, Baiterek NMH JSC and Damu Fund carried out activities to attract credit lines from the MFIs such as the European Bank for Reconstruction and Development (hereinafter referred to as EBRD), Asian Development Bank (hereinafter referred to as ADB).

 

Thus, under the attraction of the credit line from the EBRD in the amount of 230 million USD for the implementation of the Program for Micro, Small and Medium-Sized Businesses Development in Kazakhstan, as well as the Women in Business Program, Damu Fund entered into 8 agreements with the EBRD for the total amount of 202 million US dollars (the equivalent in tenge is approximately 53,824.2 million tenge). These include agreements signed worth 27,220 million tenge in 2015, 23,019.2 million tenge in 2016, 3,585 million tenge in 2017.

 

In October 2015, Damu Fund raised 3 tranches from ADB under the government guarantee in the amount of 228 million US dollars (equivalent to 62,807 million tenge) for a period of 5 years.

On 13.10.2017, the Loan Agreement with ADB was signed in the amount of 72 billion tenge under the public guarantee of the Government of the Republic of Kazakhstan.

Thus, the total amount of agreements for credit lines attraction from the MFIs during 2015-2017 amounted to about 188.6 billion tenge.

At the same time, in accordance with the Resolution of the Head of the Presidential Administration of the Republic of Kazakhstan A.R. Zhaqsybekov No. 3150-7 PAB dated 08.01.2018, this issue has been removed from control.

Conditional financing of locally produced passenger vehicles buyers through STBs

As of September 1, 2019, 6 second-tier banks issued 12,406 loans for the purchase of locally produced vehicles in the total amount of 52,974 million tenge.

 

Leasing financing of buyers of locally produced motor vehicles and specialized machinery

Under the leasing financing of domestic motor vehicles manufacturers through DBK-Leasing JSC, as of September 1, 2019, given the approved changes to leasing transactions (partial early repayment and termination of financial leasing agreements), the amount of de facto disbursed funds in regard to motor vehicles producers amounted to 4 billion tenge (initial placement) by 22 lessees. Taking into account the secondary funds disbursement, 8.3 billion tenge was actually disbursed for the supply of 688 units of specialized machinery.

Leasing financing of buyers (Kazaviaspas JSC) of locally produced Eurocopter helicopters

In August 2015, the Council for NF RoK Management (Minutes No. 01-9.3 dated August 28, 2015) excepted the decision on funds allocation within the “support for the domestic helicopters production” in the amount of 10 billion tenge and decided to increase the limit in the direction of the “support for domestic motor vehicles manufacturers” from 20 billion tenge to 30 billion tenge.

 

Financing of buyers (KTZh NC JSC or a subsidiary of KTZh NC JSC that meets the requirements of DBK JSC) of locally produced passenger cars

Under the support for the production of passenger cars, on July 31, 2015, the Development Bank entered into the loan agreement with the Passenger Leasing Car Company JSC in the amount of 5 billion tenge for the purchase of 28 Talgo passenger cars in order to provide the national carrier with new, high-quality cars for organizing high-speed train traffic. Full disbursement of funds in this area was completed on August 7, 2015.

Financing of products manufactured within the territory of the Republic of Kazakhstan by domestic exporters/ importers, including through leasing financing

 

As a part of the support for domestic exporters, funds of the National Fund of the Republic of Kazakhstan were allocated in 3 tranches: 1) 35 billion tenge in 2015, 2) 15 billion tenge in 2015 and 3) 15 billion tenge in 2016 (Resolution No. 271 of the Government of the RoK dated April 23, 2015). In addition, in accordance with the Additional Operational Anti-Crisis Action Plan for 2016 approved at the meeting of the Government of the Republic of Kazakhstan (Minutes No. 5 dated February 15, 2016, hereinafter referred to as the Plan), additional financing of pre-export (export) lending of the Development Bank was provided and amounted to 30 billion tenge at the expense of UAPF.

 

10 export operations worth 50 billion tenge were approved by the Development Bank and DBK-Leasing JSC within the 1st and 2nd tranches, including de facto primary disbursement which amounted to 50 billion tenge.

 

Over 8 months of 2019, within the 3rd tranche financing at the expense of the National Fund of the Republic of Kazakhstan and issued bonds under the Plan, the Development Bank has funded 11 export operations in the amount of 67 billion tenge.

 

In general, as of September 1, 2019, the amount of disbursed funds within 1st, 2nd, 3rd tranches (given the repeated disbursement) amounted to 383 billion tenge within the support for domestic exporters.