Investment opportunities in the Pavlodar region


Investment climate

Pavlodar region is located in the northeast of the Republic of Kazakhstan in the median for the largest river in the country - the Irtysh. Pavlodar region is an industrial and economically developed region of north-eastern part of the Republic of Kazakhstan. Much of the area is within the South West Siberian plain at an altitude of 138 meters above sea level in the middle reaches of the Irtysh River and occupies an area of 124.8 thousand square km, which is 4.6% of the entire territory of Kazakhstan.

The total length of the border region is 2100 km. Length from north to south is 500 km from east to west over 400 km. It borders on the Russian Federation (in the north - with the Omsk region, in the north-east - Novosibirsk, in the east - the Altai region), in the west - North Kazakhstan and Akmola regions, in the south-west and south - Karaganda, in the south-east - east Kazakhstan region.

Regional center is the city of Pavlodar. The administrative-territorial structure of the region consists of three cities (Pavlodar, Ekibastuz and Aksu), 10 rural districts (Aktogay, Bayanaul, Zhelezin, Irtysh, Kashyr, Lebyazhye, May, Pavlodar district, Uspen and Scherbakty), 173 rural districts.

The largest share of the gross regional product falls on the industry. In consequence of the rich deposits of minerals, favorable freight geographical position, large reserves of water, the presence of a developed industrial and social infrastructure, the high scientific and technical potential in the region there is a large inter-sectoral and intra-complex with severe fuel and energy, metallurgical, chemical and petrochemical, engineering specialization and a number of associated industries of the construction industry and food industry.

The region occupies the major share in the national production of coal (62.5%), ferroalloys (74.1%), and raw aluminum (100%). Region leads to the generation of electricity and thermal energy production of gasoline.


Industry
By the end of 2013 in the industry produced to 1,330.4 billion tenge, physical index is 99.8% (Republic - 102.3%).
Mining and Quarrying. During January-December 2013 the industry produced goods 104.6 billion, or 101.7% by 2012.
Coal production in 2012 relative decreased by 2.7% and amounted to 73.3 million tons, due to the reduction of commercial demand.
The decline in production of coal by 5.3% observed in the "Bogatyr Komir" (41.7 million tons), lignite - by 30.7% in LLP "Maikuben-West" (3.3 million tons).
Growth is observed in the sectors: mining of metal ores (157.7%), technical services in the mining industry (308.9%).
Manufacturing industry. During January-December 2013 the volume of production was 956.8 billion, or 101.3% for the period 2012.
In 2013, 5010 tons of oil are processed (99.5%), from which gasoline is made - 1144.3 thousand tons (87.9%), diesel fuel - 1879.2 thousand tons (110.6%), oil - 914.8 thousand tons (90.4%). The main reason for the decline is overstock from the beginning of 2013 light oil.
In metallurgical industry output fell by 4.9% due to reduced production of steel on the PF LLP "Casting" (67.2%) and PF LLP «KSP Steel» (43, 5%).

There is increased production of: alumina - 5.3% (1590 tons), seamless pipes - by 23.3% (127.7 thousand tons), ferroalloys - by 1.7% (1300.3 thousand tons).
Production growth observed in the manufacture of rubber and plastic products (143.2%), electrical equipment (139.9%), fabricated metal products (109.9%), engineering (135.6%), other manufacturing (110, 3%), paper and paper products (135.9%), textiles (102.9%).
Electric power. Production amounted to 254.2 billion or 98.7% in 2012. Power plants generated 40.7 billion kWh field of electricity, which was 1.3% below the level in 2012. Decrease was due to a decrease in electricity generation of 12.2% LLP GRES-1 (the proportion of the company - 33%).
Water supply engineering. Volume of output was 14.7 billion, or 49.4% in 2012 due to lower area businesses in consumption of industrial water.

Production of major industrial

Types of products

Unit measure

January-December

In 2013

Physical index in %

to 2012

Hardcoal

million tons

67,8

98,8

Lignite

million tons

5,5

81,9

Gasoline

thousand tons

1144,3

87,9

Gas oils

thousand tons

1879,2

110,6

Ferroalloys

thousand tons

1300,3

101,7

Raw aluminum

thousand tons

250,6

100,1

Aluminum oxide

thousand tons

1590,0

105,3

Electric energy

million kWh

40700,9

98,7

Thermal power

thousand Gcal

15800,1

95,7

диаграмма анг.яз.


In order to increase local content in government procurement of goods and services by national companies and large enterprises with producers agreed intentions area amounting to 448.1 billion tenge. Contracts which are actually signed worth 840.6 billion tenge.
Agriculture industry

The volume of gross agricultural output amounted to 113.8 billion tenge, or 133.3% over the same period of 2012 (Republic - 111.6%), including crop production - 195.3%, livestock - 104.4%.
Crop production. By the end of the harvesting campaign gross yield is: grain - 862.5 thousand tons (4 times more than in 2012) with a yield - 14.9 dt/ha, potatoes - 381.4 thousand tons (yield - 251 dt/ha ), vegetables - 135.7 thousand tons (yield - 253 dt/ha), melons - 33.7 thousand tons (yield - 250 dt/ha).
Livestock. During January-December 2013 compared with the same period in 2012 in all categories of the dynamics of key indicators are as follows.
Cattle population - 377.4 thousand (103.7%), poultry - 881.3 thousand (120.9%), sheep - 485.2 thousand (102.4%).
It is produced 349.4 thousand tons of milk (100.2%), 78.6 thousand tons of meat (104.7%), 121 million eggs (1.9 times).
It is acquired in 2637 head of cattle and breeding stock and 150 head of stud bulls.
The region has 367 processing facilities and 299 blanks. This year introduced 5 processing objects and 8 blanks.

Construction
Volume of construction works was 89.6 billion, or 100.9% compared to January-December 2012 (Republic - 103.0%). In the total there is a volume of construction work largest share of construction and installation works - 79.7%, repair - 14.4%, current repairs - 5.8%.
In 2013 the field is entered of 161.8 thousand square meters of housing, which is 30.9% more than the corresponding period in 2012.
In 2013 it is invested in housing 7099.5 million tenge (92.2%).


ATTRACTING INVESTMENTS
Attracting investments - Statistics
According to the department statistics of Pavlodar region for January - December 2013 investments in fixed assets amounted to 266.2 billion tenge (in 2012 - 263.5 billion tenge).
During January-December 2013 investment grew to 2012 in the sectors: agriculture, forestry and fisheries - 131.1%, the mining industry - 118.9% -104.6% manufacturing, transportation and warehousing - 145.1%, financial and insurance activities - 122.1%, health and social services - 173.9.
There is reduced investment in 2013 in the sectors of power supply - 94.1%, construction - 24.8%, wholesale and retail trade; repair of motor vehicles - 32.8%, information and communication - 72.8%, education - 38.1 % and others.
In 2013, foreign investment amounted to 40.96 billion (in 2012 - 33.3 billion tenge).
The share of foreign investment in total investment in fixed assets for the years SPFIID implementation increased from 0.1% in 2010 to 15.4% in 2013
Investment in the manufacturing industry in 2013 amounted to 86.6 billion tenge (the 4th place in the Republic), or 104.6% to 2012 (average growth for the Republic - 102.9%).
Attracting investments - Activities
In May 2013 the enterprise of the region participated in the International Exhibition of equipment and technologies for mining, metallurgical and coal industry «MinTech-2013", Energy and Electrical "KazInterPower - 2013".
In October 2013 in Pavlodar was an International Innovation Forum "Innovation is the energy of the future" and Exhibition of innovative projects.
The Forum also held a plenary session, panel sections, organized a visit to area businesses.
At the exhibition of innovative projects were presented 76 innovative projects and development of enterprises, higher educational institutions of the region and other regions of Kazakhstan, as well as projects of Russian regions.
In December 2013 in Pavlodar was the Interregional Forum on Development of local content "Growth of local content is the basis of the development of the business".
The Forum was an exhibition producers of regions, which was attended by 35 companies.
The Forum producers of regions signed an agreement of intent for the supply of goods and services in 2014 backbone enterprises area and national companies of the republic on the 517.3 billion tenge.
The Delegation of the field on a working visits a number of foreign countries:
In July 2013 a visit to the Republic of Bashkortostan, which resulted by signing minutes of the meeting between the heads of the regions, as well as memorandums and agreements between public authorities and enterprises.
There was a meeting with the Ambassadors Extraordinary and Plenipotentiary of the Czech Republic, Sweden, and the Republic of Korea in Kazakhstan. With Ambassador of Sweden was signed a Memorandum of Cooperation.
Meetings were with representatives of business in Poland, Hungary, China on matters of mutual investment cooperation. The proposal of the Polish side was supported to examine the possibility of building a plant to produce aluminum products.
On the Hungarian side signed a protocol of intent on investment cooperation in the framework of specific projects.

With Chinese companies are continuing negotiations to discuss conditions for mutual cooperation to build a plant for the production of soda ash.
In October 2013, we took part in the International Summit on free trade and free economic zones in Dubai (UAE). The purpose of the meeting was to share experiences in the development of special economic zones.
and Kazakhstan. The Forum held an exhibition of innovative projects. As exhibitors participated in the exhibition : JSC " Ekibastuz GRES-2 ", JSC " KazEnergoKabel " LLP «Kazakhstan Project». Contracts and memoranda of cooperation were signed.
There was a visit to Pavlodar representatives of the Brazilian company "Magnezit" (production of refractory materials) to discuss issues of bilateral cooperation in organizing the supply of the products and the construction of a new production of refractory materials.
Meeting of Pavlodar region hosted with the company ALCOMET (Bulgaria) in the project for the plant for processing of primary aluminum and aluminum profile production, industrial and food foil wire.
There was a meeting with representatives of the international research company Strategy Partners to develop a strategy to increase the competitiveness of the Pavlodar region. The strategy will include a full audit of the competitiveness of the region, as well as institutions, mechanisms and tools to improve it.