INVESTMENT OPPORTUNITIES OF SHYMKENT CITY

INFORMATION ABOUT THE WORK DONE ON THE ATTRACTION OF INVESTMENT IN 2019

By the end of 2019, the city's economy attracted investments in the amount of 194.5 billion tenge, which is 33% compared to the corresponding period last year (RK – 108.5%, 17th place) or decreased by 67%. The annual plan was fulfilled by 14.4% (the annual plan is 170 billion tenge).

            For reference:

            By funding sources:

 - Republican budget - KZT 25.1 billion (2018- KZT 18.3 billion);

            - local budget – KZT 20.7 billion (2018 – KZT 34.4 billion);

            - internal funds-KZT 112.9 bln (2018 – KZT 126,2 billion);

            - Bank loans – KZT 11.8 billion (2018- KZT 396.3 billion);

             - Other borrowed funds – KZT 23.8 billion (2018- KZT 6.7 million).

The main reason for the decline is the modernization of the refinery of PKOP LLP in 2018 (investment volume is 396 billion), the share of investments in the total volume was 68%. It should be noted that these investments are of a one-time nature.

Excluding the volume of investments for the modernization of the refinery of PKOP LLP in 2018, the net profit for the year amounted to 186.1 billion tenge (in 2018, the total investment amounted to 582.1 billion tenge).

Excluding investments aimed at modernization in PKOP LLP, the volume of investments was executed by 4.5% (2019-194.5 billion tenge, 2018 – 186.1 billion tenge).

In January-December 2019, the volume of external investments in fixed assets amounted to 26.5 billion tenge, compared to the corresponding period in 2018, it increased by 10.6% (January-December 2018 – 23.9 billion tenge).

The analysis of the volume of investments of the city is carried out, according to the results in 2020 it is planned to attract 265 billion tenge of investments. In turn, the growth in investment volume will increase by 36% compared to 2019.

For reference:

1. Entrepreneurship: 35 projects worth 30.2 billion tenge;

2. Construction of commercial housing: 44projects worth 41 billion. tenge;

3. Healthcare: 21 projects worth 19.4 billion tenge;

4. Agriculture: 5 projects worth 4.1 billion tenge;

5. Education: 13 projects worth 13.2 billion tenge;

6. Trade: 3 projects worth 1.5 billion tenge;

7. State budget: 63.9 billion tenge;

8. Real estate Transactions: 56 billion tenge;

9. Investment volume of projects implemented in 2021-2024: 18 billion tenge;

10. Other industries (shop, bath, pharmacy, toykhana, etc.): 16.9 billion tenge.

In 2019, 10 investment projects totaling 25.6 billion tenge were implemented in the city, with new 420 jobs.

For reference:

Completed projects:

1. "Bal Tekstil" LLP – the 3rd workshop for the production of carpets and carpet products (1,113 million tenge;

2. "Bolashak-7" LLP-a line for the production of fruit and vegetable juices, alcoholic and energy drinks (1443 million tenge).);

3. "Angar Asia" LLP - plant for processing and quenching of flat glass (50 million tenge);

4. IE "Petukhov I. V." - production of products made of polymer marble, fiberglass and solid wood (330 million tenge);

5. "Rakhat-Shymkent" LLP - production of marmalade products (1 800 million tenge).

6. "Asia Trafo" LLP-Production of power transformers of voltage class 110-220 and 500 kV (18900 million tenge);

7. Alika Group LLP-organization of production of powders from agricultural raw materials and creation of a biotechnological complex (493.0 million tenge).

8. Ekohim LLP - production of ropes, synthetic ropes, cords, laces, netting, rope and rope products (165 million tenge);

9. IP "Baitemirova" - production of plastic toys (34 million tenge);

10. "Tumar Textile" LLP -footwear production, ( 40 million tenge).

Most of the projects are implemented in special economic and industrial zones, as a result of which the zones have demonstrated their effectiveness.

In the special economic zone "Ontustik" (total area of 200 hectares), 15 projects were implemented for a total of 29.6 billion tenge, with new 1,580 jobs. In particular, at the end of 2019, 3 projects worth 1.3 billion tenge were implemented, with a new 80 jobs.

For reference:

- "B. A. E. R." LLP-Production of dressing materials from gauze - 316 million tenge.;

- LLP " JV " Lux Shoes – - production of soles for shoes - 290 million tenge.

The volume of products produced by enterprises participating in the SEZ "Ontustik" since its creation has amounted to 57.6 billion tenge (for 2019 – 14.7 billion tenge, more than half of these products in the amount of 40.2 billion tenge were exported (for 2019 – 12.9 billion tenge) to the countries of the near and far abroad.

Tax deductions to the budget for the entire period of operation amounted to 4.0 billion tenge (for 2019 – 995.6 million tenge).

For 1 tenge of budget investments, 3 tenge of private investment was attracted (budget investment – 8.2 billion tenge, private investment – 29.6 billion.tenge).

There are 2 industrial zones in the city ("Ontustik" - 337 ha and "Tassay" - 89 ha). The total area of land plots allocated for industrial zones is 426 ha.

In industrial zones, it is planned to implement 121 projects (2010-2021) in the amount of 110.8 billion tenge, with the creation of about 6.5 thousand jobs (from "Ontustik" – 91 projects, 71.8 billion tenge), from "Tassay" - 30 projects, 39.1 billion tenge).

In 2010-2019, 72 projects worth 63.8 billion tenge were implemented, with the creation of more than 4.5 thousand jobs (from "Ontustik" – 58 projects, 37.4 billion tenge, from "Tassay" -14 projects, 28.4 billion tenge).

Since the creation of industrial zones, 13.4 billion tenge has been transferred to the budget. Including for 2019, participants from "Ontustik" transferred 3.3 billion tenge, participants from "Tassay" - 648.1 million tenge.

For reference:

Implemented projects on the territory of the industrial zone "Ontustik" in 2019:

1. LLP "Bitumen Werk" – the production of bitumen, the amount of the project is 890 million tenge;

2. LLP "Shed Asia" – a plant for the processing and hardening glass sheets, a sum of 50 million tenge

3. IE "Baytemirova" - production of plastic toys, a sum of 34 million tenge.

 Implemented projects in the territory of the industrial zone "Tassai" in 2019:

1. "Bolashak-7" LLP-a line for the production of fruit and vegetable juices, alcoholic and energy drinks (1443 million tenge);

2. IE "Petukhov I. V." - production of products made of polymer marble, fiberglass and solid wood (330 million tenge);

3. "Asia Trafo" LLP-Production of power transformers of voltage class 110-220 and 500 kV (18900 million tenge);

4. Alika Group LLP-organization of production of powders from agricultural raw materials and creation of a biotechnological complex (493.0 million tenge);

5. "Nuralem" LLP - production of finishing materials (319.5 million tenge );

6. OPCHS-Stroy LLP - production of powder fire extinguishers (403 million tenge).

In order to form the city of Shymkent as a transport and logistics hub on the territory of Eurasia, a special logistics zone project is being implemented on an area of 92 hectares. Where 6 investment projects worth 33 billion tenge are being implemented.

For reference:

1. LLP "Kazakhstan Logistic group»;

2. "Continental Logistics Shymkent" LLP»;

3. NGO “Zerde”;

4. "Waimea Group KZ" LLP»;

5. Eurotransit Terminal LLP»;

6. Arman Yug Group LLP.

          Warehouses, freezers and dry gas chambers for storing fruit and berry, vegetable and medicinal products with a total area of 200 thousand square meters were built in the transport and logistics zone. 60.1 thousand square meters of warehouse with 200 thousand square meters were put into operation. Today, there are 2 projects in operation ("Continental Logistics Shymkent" LLP workload-70%, "Kazakhstan logistics group" LLP workload-30%).

In addition, a center has been opened on the territory of the transport and logistics zone that deals with warehousing, storage, and customs inspection.

Today, we are actively working to increase the investment attractiveness of the city and attract investment to the city. In particular:

In order to attract investors to the city, a new industrial zone "Zhuldyz" with an area of 306 hectares is being created. At the first stage, it is planned to develop 76 hectares (2020-2021), at the second stage 230 hectares (2021-2022).

At the same time, in order to create additional incentives for potential investors, the process of creating an agro-industrial zone "Shymkent" with an area of 136 hectares, where wholesale and retail warehouses and agricultural enterprises will be located, has begun. It is planned to implement 6 investment projects worth 8 billion tenge.

For reference:

1. Azamat R LLP-construction of an industrial greenhouse;

2. Bekzat KZ LLP-construction of an industrial greenhouse;

3. ASM Corporation LLP-construction of an industrial greenhouse;

4. IE "Duysenbayev" - construction of an industrial greenhouse;

5. Tengri World LLP-construction of a plant for the production of concentrated feed with biological additives;

6. "Balmuzdak" LLP-construction of a milk processing plant.

In addition, the city is working to create a special economic zone of urban planning type "Shymkent city" on the territory of 427 hectares. When implementing the Shymkent city project, it is expected to attract foreign (South Korean company "Highvill", Singapore company "Kinder World", Turkish company "Eryapi") investments in the amount of more than USD 1.5 billion to the city's economy.  As part of the project, it is planned to provide housing for 50 thousand citizens of the city.

In order to improve the investment climate of the city, as well as attract investors, the city operates an "Investor service Center".

To activate the work with investors, it is planned to update the work of the center.

At the same time, the mayor's office of the city held meetings with more than 40 foreign investors, as a result of which they agreed with investors from Russia, Singapore, China and the Netherlands. In particular:

1. A construction project of a solar power plant with the Russian company Avelar solar technology worth 7.8 billion tenge. 50 hectares of land have been allocated for the implementation of this project, and it is planned to be implemented in 2021.

2. A construction project of a modern educational cluster (kindergarten, school, college, university) with the Singapore company "Kinder World International" in the amount of 7.8 billion tenge. For this project, 20 hectares of land were considered, and it is planned to be implemented in 2022.

3. A construction project of a modern clinic for 1,000 beds in the amount of 117 billion tenge at the expense of the domestic company "Ontustik Corporation". To date, a Memorandum has been signed with the Chinese company "Shanghai construction Group "on construction work and a Memorandum has been signed with the Dutch company" Phillips " for the supply of equipment. The project is planned to be implemented in 2022.

INFORMATION ABOUT THE WORK DONE ON THE ATTRACTION OF INVESTMENT IN 2019

By the end of 2019, the city's economy attracted investments in the amount of 194.5 billion tenge, which is 33% compared to the corresponding period last year (RK – 108.5%, 17th place) or decreased by 67%. The annual plan was fulfilled by 14.4% (the annual plan is 170 billion tenge).

            For reference:

            By funding sources:

 - Republican budget - KZT 25.1 billion (2018- KZT 18.3 billion);

            - local budget – KZT 20.7 billion (2018 – KZT 34.4 billion);

            - internal funds-KZT 112.9 bln (2018 – KZT 126,2 billion);

            - Bank loans – KZT 11.8 billion (2018- KZT 396.3 billion);

             - Other borrowed funds – KZT 23.8 billion (2018- KZT 6.7 million).

The main reason for the decline is the modernization of the refinery of PKOP LLP in 2018 (investment volume is 396 billion), the share of investments in the total volume was 68%. It should be noted that these investments are of a one-time nature.

Excluding the volume of investments for the modernization of the refinery of PKOP LLP in 2018, the net profit for the year amounted to 186.1 billion tenge (in 2018, the total investment amounted to 582.1 billion tenge).

Excluding investments aimed at modernization in PKOP LLP, the volume of investments was executed by 4.5% (2019-194.5 billion tenge, 2018 – 186.1 billion tenge).

In January-December 2019, the volume of external investments in fixed assets amounted to 26.5 billion tenge, compared to the corresponding period in 2018, it increased by 10.6% (January-December 2018 – 23.9 billion tenge).

The analysis of the volume of investments of the city is carried out, according to the results in 2020 it is planned to attract 265 billion tenge of investments. In turn, the growth in investment volume will increase by 36% compared to 2019.

For reference:

1. Entrepreneurship: 35 projects worth 30.2 billion tenge;

2. Construction of commercial housing: 44projects worth 41 billion. tenge;

3. Healthcare: 21 projects worth 19.4 billion tenge;

4. Agriculture: 5 projects worth 4.1 billion tenge;

5. Education: 13 projects worth 13.2 billion tenge;

6. Trade: 3 projects worth 1.5 billion tenge;

7. State budget: 63.9 billion tenge;

8. Real estate Transactions: 56 billion tenge;

9. Investment volume of projects implemented in 2021-2024: 18 billion tenge;

10. Other industries (shop, bath, pharmacy, toykhana, etc.): 16.9 billion tenge.

In 2019, 10 investment projects totaling 25.6 billion tenge were implemented in the city, with new 420 jobs.

For reference:

Completed projects:

1. "Bal Tekstil" LLP – the 3rd workshop for the production of carpets and carpet products (1,113 million tenge;

2. "Bolashak-7" LLP-a line for the production of fruit and vegetable juices, alcoholic and energy drinks (1443 million tenge).);

3. "Angar Asia" LLP - plant for processing and quenching of flat glass (50 million tenge);

4. IE "Petukhov I. V." - production of products made of polymer marble, fiberglass and solid wood (330 million tenge);

5. "Rakhat-Shymkent" LLP - production of marmalade products (1 800 million tenge).

6. "Asia Trafo" LLP-Production of power transformers of voltage class 110-220 and 500 kV (18900 million tenge);

7. Alika Group LLP-organization of production of powders from agricultural raw materials and creation of a biotechnological complex (493.0 million tenge).

8. Ekohim LLP - production of ropes, synthetic ropes, cords, laces, netting, rope and rope products (165 million tenge);

9. IP "Baitemirova" - production of plastic toys (34 million tenge);

10. "Tumar Textile" LLP -footwear production, ( 40 million tenge).

Most of the projects are implemented in special economic and industrial zones, as a result of which the zones have demonstrated their effectiveness.

In the special economic zone "Ontustik" (total area of 200 hectares), 15 projects were implemented for a total of 29.6 billion tenge, with new 1,580 jobs. In particular, at the end of 2019, 3 projects worth 1.3 billion tenge were implemented, with a new 80 jobs.

For reference:

- "B. A. E. R." LLP-Production of dressing materials from gauze - 316 million tenge.;

- LLP " JV " Lux Shoes – - production of soles for shoes - 290 million tenge.

The volume of products produced by enterprises participating in the SEZ "Ontustik" since its creation has amounted to 57.6 billion tenge (for 2019 – 14.7 billion tenge, more than half of these products in the amount of 40.2 billion tenge were exported (for 2019 – 12.9 billion tenge) to the countries of the near and far abroad.

Tax deductions to the budget for the entire period of operation amounted to 4.0 billion tenge (for 2019 – 995.6 million tenge).

For 1 tenge of budget investments, 3 tenge of private investment was attracted (budget investment – 8.2 billion tenge, private investment – 29.6 billion.tenge).

There are 2 industrial zones in the city ("Ontustik" - 337 ha and "Tassay" - 89 ha). The total area of land plots allocated for industrial zones is 426 ha.

In industrial zones, it is planned to implement 121 projects (2010-2021) in the amount of 110.8 billion tenge, with the creation of about 6.5 thousand jobs (from "Ontustik" – 91 projects, 71.8 billion tenge), from "Tassay" - 30 projects, 39.1 billion tenge).

In 2010-2019, 72 projects worth 63.8 billion tenge were implemented, with the creation of more than 4.5 thousand jobs (from "Ontustik" – 58 projects, 37.4 billion tenge, from "Tassay" -14 projects, 28.4 billion tenge).

Since the creation of industrial zones, 13.4 billion tenge has been transferred to the budget. Including for 2019, participants from "Ontustik" transferred 3.3 billion tenge, participants from "Tassay" - 648.1 million tenge.

For reference:

Implemented projects on the territory of the industrial zone "Ontustik" in 2019:

1. LLP "Bitumen Werk" – the production of bitumen, the amount of the project is 890 million tenge;

2. LLP "Shed Asia" – a plant for the processing and hardening glass sheets, a sum of 50 million tenge

3. IE "Baytemirova" - production of plastic toys, a sum of 34 million tenge.

 Implemented projects in the territory of the industrial zone "Tassai" in 2019:

1. "Bolashak-7" LLP-a line for the production of fruit and vegetable juices, alcoholic and energy drinks (1443 million tenge);

2. IE "Petukhov I. V." - production of products made of polymer marble, fiberglass and solid wood (330 million tenge);

3. "Asia Trafo" LLP-Production of power transformers of voltage class 110-220 and 500 kV (18900 million tenge);

4. Alika Group LLP-organization of production of powders from agricultural raw materials and creation of a biotechnological complex (493.0 million tenge);

5. "Nuralem" LLP - production of finishing materials (319.5 million tenge );

6. OPCHS-Stroy LLP - production of powder fire extinguishers (403 million tenge).

In order to form the city of Shymkent as a transport and logistics hub on the territory of Eurasia, a special logistics zone project is being implemented on an area of 92 hectares. Where 6 investment projects worth 33 billion tenge are being implemented.

For reference:

1. LLP "Kazakhstan Logistic group»;

2. "Continental Logistics Shymkent" LLP»;

3. NGO “Zerde”;

4. "Waimea Group KZ" LLP»;

5. Eurotransit Terminal LLP»;

6. Arman Yug Group LLP.

          Warehouses, freezers and dry gas chambers for storing fruit and berry, vegetable and medicinal products with a total area of 200 thousand square meters were built in the transport and logistics zone. 60.1 thousand square meters of warehouse with 200 thousand square meters were put into operation. Today, there are 2 projects in operation ("Continental Logistics Shymkent" LLP workload-70%, "Kazakhstan logistics group" LLP workload-30%).

In addition, a center has been opened on the territory of the transport and logistics zone that deals with warehousing, storage, and customs inspection.

Today, we are actively working to increase the investment attractiveness of the city and attract investment to the city. In particular:

In order to attract investors to the city, a new industrial zone "Zhuldyz" with an area of 306 hectares is being created. At the first stage, it is planned to develop 76 hectares (2020-2021), at the second stage 230 hectares (2021-2022).

At the same time, in order to create additional incentives for potential investors, the process of creating an agro-industrial zone "Shymkent" with an area of 136 hectares, where wholesale and retail warehouses and agricultural enterprises will be located, has begun. It is planned to implement 6 investment projects worth 8 billion tenge.

For reference:

1. Azamat R LLP-construction of an industrial greenhouse;

2. Bekzat KZ LLP-construction of an industrial greenhouse;

3. ASM Corporation LLP-construction of an industrial greenhouse;

4. IE "Duysenbayev" - construction of an industrial greenhouse;

5. Tengri World LLP-construction of a plant for the production of concentrated feed with biological additives;

6. "Balmuzdak" LLP-construction of a milk processing plant.

In addition, the city is working to create a special economic zone of urban planning type "Shymkent city" on the territory of 427 hectares. When implementing the Shymkent city project, it is expected to attract foreign (South Korean company "Highvill", Singapore company "Kinder World", Turkish company "Eryapi") investments in the amount of more than USD 1.5 billion to the city's economy.  As part of the project, it is planned to provide housing for 50 thousand citizens of the city.

In order to improve the investment climate of the city, as well as attract investors, the city operates an "Investor service Center".

To activate the work with investors, it is planned to update the work of the center.

At the same time, the mayor's office of the city held meetings with more than 40 foreign investors, as a result of which they agreed with investors from Russia, Singapore, China and the Netherlands. In particular:

1. A construction project of a solar power plant with the Russian company Avelar solar technology worth 7.8 billion tenge. 50 hectares of land have been allocated for the implementation of this project, and it is planned to be implemented in 2021.

2. A construction project of a modern educational cluster (kindergarten, school, college, university) with the Singapore company "Kinder World International" in the amount of 7.8 billion tenge. For this project, 20 hectares of land were considered, and it is planned to be implemented in 2022.

3. A construction project of a modern clinic for 1,000 beds in the amount of 117 billion tenge at the expense of the domestic company "Ontustik Corporation". To date, a Memorandum has been signed with the Chinese company "Shanghai construction Group "on construction work and a Memorandum has been signed with the Dutch company" Phillips " for the supply of equipment. The project is planned to be implemented in 2022.
Дата публикации
03 марта 2020