5. kostanai

• Area - 196 thousand sq. km. The province borders on four provinces of the

Republic of Kazakhstan (Aktobe, Karaganda, Akmola and Northern Kazakhstan) and three provinces of the Russian Federation (Orenburg, Chelyabinsk, Kurgan).

• Population – 880.9 thousand people

• The province constists of: 16 regions and 4 cities of provincial subordination

• The resources of the province are rich in minerals: magnetite and oolitic iron ore, bauxite, lignite, asbestos, fireclay and brick clay, fluxing and cement limestone, glass sand, building stone, etc. The total reserves of magnetite ore and brown iron is 15.7 billion tonnes. About 400 mineral deposits and estates were explored, including 68 groundwater deposits, and 19 bauxite deposits, 7 gold deposits, and one silver and one nickel deposits were discovered.

General information

Economic development indicators

Indicator (2013) Value (billion US dollars)Gross Regional Product 7

Gross agricultural output (services) 1.4

Investments in fixed assets 0.9

Location

Kostanay province

tel./fax: +7 (7142) 39 25 00 [email protected] www.spk-tobol.kz www.investinkostanay.kz

mailto:[email protected]


The province has favorable economic and geographical position, thanks to the neighbouring well-developed industrial regions such as the Urals in the west and Central Kazakhstan in the south-east. Kostanay province borders on four provinces of the Republic of Kazakhstan (Aktobe, Karaganda, Akmola and Northern Kazakhstan) and three provinces of the Russian Federation (Orenburg, Chelyabinsk, Kurgan).

Kostanay province opens the market of more than 25 million people

Convenient geographical location




Convenient geographical location

Favorable business climate

Availability of highly qualified human resources

Administrative support of investment activity

Dynamic economy

Why invest in Kostanay region




The gross regional product per capita, USD


1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

2000

4000

6000

8000

10000

12000

1544.31398.5

1136.2

1147.51234.8

1302.2 1714.8

2198.6 2682.93406.3

5095.9

6564.4

5546.4

6588.4

8690 8753.1

9915.2



Growth in industrial productionin the region, bln KZT


1998 20130

100

200

300

400

500

600

50.3

541.8

Growth

for 1

6 years

– in 10.8 times



The structure of the region industry


52%41%

5% 1%

2013

mining manufacturing power suuply water suuply



Dynamics of Kostanay region foreigntrade turnover (million USD)


Turnover Import Export0

500

1000

1500

2000

2500

3000

3500

4000

800470 338

3700

2300

1400

1997 2013

4.6 time growth 4.9 time growth 4.1 time growth



Projects for investment Kostanay Region




Construction of 48 MW Wind Power Plant nearby Arkalyk city

Objective: Construction of a wind power plant with the capacity of 48 MW using wind potential nearby Arkalyk city. Applicant: ТОО «KazWind Energy»Period of implementation: 2015-2017 Location: Kostanay region Cost of project: USD 100 mln. USDFinancing scheme: Development institution funds, private investments, 15% of the company's own funds.Required investments: USD 100 mln. USDExpected result: Implementation of the project will solve the problem of power shortages and reliability of regional power supply, create new jobs, increase export potential of the region, which will have a positive multiplier effect on the economy of the region, improve regional environment, increase taxes to the budget. Current situation: feasibility study has been developed according to the use of maximum tariff of 19 KAZ/kWh (0.095 eurocents/kWh) IRR - 27,6%, ROE - 19,48%Payback period: 5-7 yearsProduction capacity: according to preliminary project data the following parameters can be defined: annual power Capacity is 143 million kW/h, number of hours of set capacity use is

2,483Documentation: The scheme of power supply has been developed by "Energy System Researches" LLP, international company "8.2 Consulting AG" (Germany) was attracted as a consultant. Advantages: high wind potential, proximity to the substation of JSC "KEGOK". Infrastructure and resources: The selected area has a high wind potential which has been confirmed by annual wind measurements at a hight of 50 m. Market: Unified Power System of Kazakhstan, Kostanay region.Number of employees: 50 jobs




Construction of solid domestic waste processing plant in Kostanay city

Objective: Construction of solid domestic waste processing plant Applicant: «Samruk-Kazyna Invest» Period of implementation: 2015-2016 yearsLocation: Kostanay region Cost of project: USD 40 mln. USDRequired investments: USD 40 mln. USDCurrent status: feasibility study has been developed, NPV: USD 3.5 mln. USDIRR: 22,1%,Payback period: 6 years Production capacity: Wastes thermal treatment services is 96,000 tons/year, thermal power is 19,200 Gcal/year, ferrous metal scrap is 2,688 tons/yearNumber of employees: 50Requirements for investor: interested domestic/foreign investors.




Construction of transport logistics center in Kostanay city

Objective: Construction of transport logistics centerApplicant: Government of Kostanay regionPeriod of implementation: 2015-2017 yearsLocation: Kostanay region, KostanayCost of project: USD 5.8 mln. USDFinancing scheme: Private investments, including direct (portfolio) foreign investment (Russia, EU, China) Required investments: USD 5.8 mln. USDExpected result: The project will create new jobs, increase the export and import potential of the region, which will have a positive multiplier effect on the economy of the region. Current situation: Permit documents are being developed. The project initiators are in Germany.Payback period: 5-7 yearsCapacity: Increase in freight turnoverDocumentation: Approval documents are being developedContacts: tel.: 8 (7142) 39 00 20, 39 25 00Advantages: This market just starts to be developed, and today there is hardly a company ready to offer its customers the warehouses which simultaneously meet the following requirements: • Location (close to major highways, Europe, Russia,

Kazakhstan, China;

• Storage conditions (warehouses with different modes of temperature and humidity (including "refrigerators" to store products with short shelf life and drug warehouses); the warehouses will be equipped with dust-free floors, air-conditioning; professional equipment with high load capacity; compliance with safety standards; round the clock security etc.)

• Own dead-end track next to the large railway station;• Sufficient storage premises; • Reasonable rent and services cost; • Sufficient number of additionally provided services;

(responsible storage of goods, transport support, possibility to launch manipulation and other projects); • Various types of stacking (rack, floor, attic storey, storage of oversized goods).

Infrastructure and resources: A land plot, power and gas supply, water supply are available, a railway line is under construction.

Market: Import/export of products from/to various countriesNumber of employees: Approximately 53 Requirements for investor: Participation in the project as a

funder




Exploration, extraction, enrichment and processing of kaolin-quartz- feldspar ores at Bisembayevskoye deposit

Objective: Thorough exploration and entering the revealed industrial reserves of the deposit complex ores to the State Balance of the Republic of Kazakhstan until 2012. Designing and construction of the open pits for development of the deposit, designing and construction of the processing facility for mined ore and production of feldspar, quartz, kaolinic and other commercial products. Applicant: "NEGS Geosphere" LLPPeriod of implementation: 2014—2044 years Location: Denisovskiy district, Kostanay region, the Republic of Kazakhstan.Cost of project: USD 918,5 mlnFinancing scheme: private investments, including direct (portfolio) foreign investment and loansRequired investments: USD 918,5 mln Expected result: It is reasonable to build facing products (ceramic tiles, ceramic granite), glass, facing brick, tiling, packing materials, mineral fertilizers production plants at the unique deposit. Current situation: Implementation of Stage 1 - completion of detailed exploration of the deposit No. 5 and further approval of the reserves in the State Reserves Commission of the Republic of Kazakhstan, designing detailed exploration of the deposit. Payback period - from 2.5 to 8.0 yearsCapacity: Facing products - 26 mln. sq. m., glass - 20 mln. sq. m, cardboard and gypsum wallboard - 700 thousand tons, aluminum - 500 thousand tons, cement - 2,600 thousand tons, bricks - 50 mln.

pcs. and other types of productsDocumentation: Work program as well as financial and economic model in accordance with the contract for subsurface resources management right, reports on completed exploration, reports on technology of complex raw materials enrichment, business plans. Contacts: "NEGS Geosphere" LLP Sergey 8 777 240 91 62 [email protected]: products annual value will exceed 1,150 mln USD, unique reserves and a very simple structure of the deposit. This project will solve the problems of mineral resources development for construction industry and create ceramic, glass and other product plants. The project is focused on replacement of up to 85-90 % of import with the similar products made in the Republic of Kazakhstan.Infrastructure and resources: The distance to the railway station is 25 km, asphalt roads are available, power lines 200 and 500 go through the area, gas pipeline "Bukhara-Ural" is 3 km away from the deposit, proximity to the settlements with well-developed infrastructure for extraction and processing of mineral raw materials (Zhitikara city, Rudny city, Lisakovsk cities)Market: the Republic of Kazakhstan is 65-80 %, export to the CIS countries is 20-35 %.Number of employees: up to 2,5 thousand new highly productive jobs are planned.Requirements for investor: domestic and/or foreign investors interested in the project.




LED lamps manufacturing

The purpose and idea of the project: LED lamps manufacturing

Period: 2015-2016, Project location: : Kostanay , KazakhstanProject total cost: 1.81 million USDFinancing scheme: foreign direct investment Required investment: 1.81 million USDPlanned product line: buld lamp, fluorescent lamp, street

lamp. Current status: has a business plan Payback period: 5.7 years NPV: 22.9 mln. (124 thousand. Dollars) IRR: 18.43% Production capacity: according to preliminary data for the

project can be defined in the volume of production – 20K units.

Documentation: business planAdvantages: products are characterized by greater energy

efficiency, low cost, long life. Infrastructure and Resources: the main supplier of raw materials and components is the

parent company

Sales Market: domestic market (Industrial enterprises of Kazakhstan, private consumers)

New job s: 17 person. Requirements to investor: the interested domestic and / or

foreign investors.




Construction of kumys powder production plantin Kamenskuralskoye village

Purpose and idea of the project: Construction of kumys powder production plant in Kamenskuralskoye villageApplicant: Akimat of Mendykarinskiy district, "Kamenskuralskoye" LLCImplementation period: Stage I 2014-2015Project location: Kostanay region, Mendykarinskiy district, Kamenskuralskoye villageProject total cost: 1.5 mln. USDFinancing scheme: Budgetary funds, development institution funds, private investments, including direct (portfolio) foreign investment Required investment: 1.5 mln. USDExpected Results: The project will create new jobs, increase the export potential of the region, which will have a positive multiplier effect on the economy of the region. Current status: A plot of land for building, 560 head of horses are available.Payback period: 7 yearsProduction capacity: Documentation available: It is necessary to attract investment for the development of feasibility study, design estimates as well as construction of the facility. Advantages: "Kamenskuralskoye" LLC is located in the

beautiful resort area surrounded by conifer and foliage forest with a lake nearby. Distance from Kostanay city is 98 km, from the district center - 18 km. The road is asphalt coated to the very village. The farm has a sufficient amount of agricultural land for growing crops, and natural pastures.Infrastructure and resources: Livestock premises and kumys shop are available. 560 head of horses. Power supply is provided. Well is available. Sales market: European countries, Japan.New jobs: 20 individuals.Requirements to investor: domestic and/or foreign investors interested in the project.




Business

5. kostanai