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State program for Innovative and Industrial Development of the Republic of Kazakhstan for 2015 – 2019

The Program is a logical extension of the State Program for accelerated industrial-innovative development of Kazakhstan for 2010 – 2014 and the experience of its implementation is taken into account.The Program is part of the industrial policy of Kazakhstan and is focused on the development of the manufacturing industry with a concentration of efforts and resources on a limited number of sectors, regional specialization using the cluster approach and effective industry regulation. Baiterek” Holding and subsidiaries are responsible for implementation of some directions of the Program. In particular, they provide financial support for major projects, search investors for the implementation of promising projects in Kazakhstan.

State program for Innovative and Industrial Development of the Republic of Kazakhstan for 2015 – 2019

State program for Innovative and Industrial Development of the Republic of Kazakhstan for 2015 – 2019 

Program Passport

Program Name State Program for Accelerated Industrial and Innovative Development of Kazakhstan for 2010 - 2014
Basis for development

1) item 1 of the Action Plan for implementation of the RK President’s orders given  at  the extraordinary XII congress of Nur Otan People's Democratic Party on 15 May 15 2009, approved by the RK President’s order No. 326 as of 2 June 2009;

2) items 3 and 4 of the Action Plan for implementation of the RK President’s orders given  at  the III session of the Republic of Kazakhstan Parliament of the fourth convocation on 1 September 2009, approved by order No. 01-30.27 of the Head of RK President's Administration as of 19 September  2009.

Developer Ministry of Economic Development and Trade of the Republic of Kazakhstan, Ministry of Industry and New Technologies of the Republic of Kazakhstan
Program purpose To provide  sustainable and balanced economic growth through diversification and increase its competitiveness
Tasks

Development of priority sectors of the economy, ensuring its diversification and increased competitiveness;

strengthening of social efficiency in development of economy priority sectors and implementation of investment projects;

creation of a favorable environment for industrialization;

formation of economic growth centers on the basis of rational territorial organization of economic potential;

ensuring of effective interaction between government and business in development of priority sectors of the economy.

Implementation period 2010-2014
Resources required and financial support

State budget and funds of enterprises and organizations, including national companies and organizations with state participation.

 The volume of financing from the republican and local budgets will be refined during the formation of the corresponding budgets for the planning period

Target indicators  

Introduction

The State Program for Accelerated Industrial and Innovative Development of Kazakhstan for 2010-2014 (hereinafter - the Program) was developed in fulfillment of the President’s order of given on 15 May 2009 at the extraordinary XII congress of Nur Otan People's Democratic Party, the President's Message to people of Kazakhstan - "New Decade - New Economic Growth - New Opportunities for Kazakhstan”  as well as in accordance with the key areas of the Strategic Plan of Development of Kazakhstan till 2020, which is the second phase of implementation of the Strategy of Development of Kazakhstan till 2030.

The program aims to ensure sustainable and balanced economic growth through diversification and enhancing its competitiveness.

The program is a logical continuation of the policy for diversification of the economy, and integrated main approaches of the Strategy for Industrial and Innovative Development for 2003-2015, the "30 Corporate Leaders of Kazakhstan" Program and other program documents in the sphere of industrialization.

For the period up to 2015, the main priority of the forced industrialization policy will be implementation of major investment projects in the traditional export-oriented sectors of the economy, with multiplication of new business opportunities for small and medium-sized businesses through the purposeful development of local content, subsequent redistribution and recycling. 

Initiators for promotion of large projects will be the following:

Samruk-Kazyna National Welfare Fund JSC (hereinafter - Samruk-Kazyna NWF JSC), strategic companies of fuel and energy and metallurgical sectors of the economy, as well as strategic foreign investors.

Simultaneously there will be formation and / or strengthening of economic sectors, not related to the resources sector and focused on domestic and subsequently to the regional markets (countries of the Customs Union, Central Asia).

The state will support the initiative of Kazakhstan's small and medium businesses aimed at the transfer of advanced technologies, attraction of foreign investors to build  modern import-substituting productions with the prospect of their export orientation.

In order to create foundations of postindustrial economy there will be continued development of a national innovation infrastructure and support of scientific and technological capacity with prospects for commercialization. 

In general, government support of economic diversification will be carried out through implementation of the system of economic policies at the macro and sectoral levels, as well as selective support measures for specific sectors and projects.

Systemic measures of economic policy will focus on creation of a favorable macro environment and investment climate, measures to improve productivity and competitiveness of the national economy.

Selective measures will be based on the combined package of financial and non-financial support to priority sectors and projects.

The government will systematically build its interaction with business through the development of effective institutions for cooperation at the national and regional levels.

Adequate to the objective state of the economy, the path of industrialization policy up to 2015 will have internal consistency with resource, infrastructural, institutional and technological constraints. The systemic nature of built-in program mechanisms that encourage diversification and technological modernization of the economy will provide:

creation of favorable macroeconomic conditions;

improving of the business climate and stimulation of  investment inflows;

large-scale technological modernization and development of a national innovation system;

improving of the human capital quality.

The concentration of state and business resources in the development of priority economy sectors will be followed by an interactive process of government and business solutions harmonization, using modern information systems of monitoring and specific instruments of implementation.

IMPLEMENTATION OF THE PROGRAM

Statement on implementation of the state program of industrial-innovative development for 2015-2019 (hereinafter - the SPIID) as of September 1, 2017

 

 

In total for 2016-2017, 309.7 billion tenge (146.8 billion tenge in 2016; 162.9 billion tenge in 2017) have been allocated from the Republican Budget for implementation of the SPIID through JSC «NMH «Baiterek» and its subsidiaries. The total undisbursed amount as of September 1, 2017 is 147.8 billion tenge.

Main reasons of non-disbursement:

– through JSC «Development Bank of Kazakhstan»: 75 billion tenge (the undisbursed amount is 42.5 billion tenge), allocated for funding new SPIID projects in the end of 2016 and 80 billion tenge (the undisbursed amount is 80 billion tenge) in April of 2017, started practically getting disbursed only in the end of 2017 (drawdown period is 3 years).

– through АО «BRK Leasing»: 10 billion tenge, allocated from the Republican Budget (the undisbursed amount is 7.7 billion tenge) in Nobember 2016m started getting disbursed from the beginning of 2017. The rest will be disbursed until the end of 2017.

– Through JSC «Damu»: for subsidization of credit rate of the second-tier banks and credit guarantee of the second-tier banks in 2016 and 2017, 62.9 billion tenge have been allocated (the undisbursed amount is 4.5 billion tenge: 219 million tenge in 2016, due to non-performance of a contractual obligation by the supplier as well as the state of economy; 4.3 billion tenge in 2017 will be disbursed before the end of the year).

– Through JSC «Export Insurance Company «KazakhExport»: from the allocated 27.9 billion tenge in 2016 and 2017, 9.6 billion tenge were not disbursed in 2017. Drawdown period of the allocated funds is 7 years on revolving basis; furthermore, the balance of the initial disbursement is expected until the end of the year for two areas - export trade and pre-export financing.

– through JSC «NATD»: out of 4.8 billion tenge allocated in 2016 and 2017, 3.44 billion tenge were not disbursed in 2017. In particular, the disbursement of the rest of the funds is expected before the end of the year for such major events, as National Innovation Competition (in October) and Exhibition of Innovative Projects (in November), as well as project selection for granting innovation grants (applications are accepted until October 2).

 

Social and economic effect for 2016-2017:

  1. Number of created workplaces – 16 485 (16 135 in 2016l; 350 in 2017);

  2. Number of reserved workplaces – 44 938 (44 938 in 2016);

  3. Manufactured goods – 3 358.7 billion tenge (3 331.2 billion tenge in 2016; 27.5 billion tenge in 2017);

  4. Tax revenue – 315.9 billion tenge (211.8 billion tenge in 2016; 104.1 billion tenge in 2017);

  5. Exported – 216 billion tenge (95.4 billion tenge in 2016; 120.6 billion tenge in 2017).

 

 

 

Data on workplaces and manufactured goods for 2017 will be available in the first half of 2018.