Singapore considers implementation of new infrastructure projects in Kazakhstan
KAZAKH INVEST in cooperation with the Embassy of the Republic of Kazakhstan in the Republic of Singapore continues negotiations with the Singaporean company «Infrastructure Asia». The main goal of these negotiations is to attract companies from Singapore and South-East Asian countries to implement infrastructure projects in Kazakhstan.
During the talks, it was noted that the Asian development Bank estimates that developing Asia will require $26 trillion in infrastructure investment by 2030 to maintain current growth rates, which is $1.7 trillion per year. According to the World Bank, there is enough private capital in the world to potentially meet the demand. At the same time, the volume of the global bond market should exceed $100 trillion. However, there is a significant discrepancy between supply and demand. The key to infrastructure development in Asia is to successfully mobilize resources to finance specific projects in the region.
To date, Singapore has built an ecosystem that includes public sector institutions and private sector companies, which include developers, engineering, procurement and construction companies, professional services firms, financial institutions and various development institutions.
For example, the Singaporean government agency «Infrastructure Asia» supports infrastructure financing and development in the Asian region through early project evaluation, sharing best practices, attracting investors and concluding deals. A wide network of partners, including financial institutions, public and private organizations, is used to implement projects.
"With an understanding of regional markets and its own development experience, Singapore is well positioned to meet the infrastructure needs of Asia and unlock the region's potential. Usually, infrastructure projects should generate stable and long-term cash flows, since they are quite capital-intensive. Therefore, at the initial stages of creating an infrastructure project, accurate forecasting of future costs and revenues is very important for its effective implementation. A potential investor wants to work out all these issues fully with government authorities before an actual investment in the chosen country takes place and a project kicks off. Therefore, it is important for us to understand the needs of potential investors,"- said Daniyar Aitkulov, the Country Manager for countries in South-East Asia at KAZAKH INVEST.
During the talks, Zhandos Temirgali, the Adviser to the Chairman of the Board of KAZAKH INVEST on strategic investment projects, familiarized the Singapore participants with the investment opportunities in transport and logistics industry of Kazakhstan, as well as a number of specific infrastructure projects. "Effective infrastructure development is the key to a stable long-term development of Asian economies. The role of Kazakhstan in the transcontinental transportation has been increasing every year. Our country plays a key role in international initiatives and, currently, is an important intermodal transportation hub connecting the markets of Asia and Europe. The implementation of new infrastructure projects, such as the Trans-Caspian International Transport Route, the Aerotropolis, development of the Khorgos Dry Port and Caspian sea ports, as well as the digitalization of multimodal transport will help to unlock the potential of Kazakhstan in the transport and logistics industry at a qualitatively new level," - Zhandos Temirgali argued.
Mr. Seth Tan, the Executive Director of Infrastructure Asia, commended Kazakhstan’s investment policy and discussed projects and areas of interest to Singapore investors. He identified green energy, digitalization and construction of social facilities as additional sectors for expanding cooperation.
Adviser to the Embassy of the Republic of Kazakhstan in Singapore Yerlan Kubashev noted that in the current conditions, maintaining a constant dialogue between government agencies and business circles of the two countries plays an important role as potential investors receive a key message about opportunities in Kazakhstan. Consideration of specific projects in the field of energy, transport and logistics, healthcare and other areas will not only allow us to work for the future, but will also help to overcome the current situation in the world as soon as possible by stimulating international economic cooperation.
