Mangystau Governor’s Office

ECONOMIC AND INVESTMENTPOTENTIAL OF

THE MANGYSTAU REGION OFTHE REPUBLIC OF KAZAKHSTAN

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I. General information about the region 1A. TRANSPORTATION NETWORK – AIRWAYS

DESTINATIONS FROM THE AKTAU AIRPORT

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I. General information about the region 1B. TRANSPORTATION NETWORK – SEA AND RAILROAD

SEA AND RAILROAD ROUTES IN THE CASPIAN REGION

MANGYSTAU REGION – one of the most important areas of Kazakhstan that plays an integral role in the socio-economic development and modernization of the country.

Located in the southwest of Kazakhstan, on the East coast of the Caspian Sea.

Area of the region = 166 thousand sq. kilometers (≈ 64 thousand sq. miles) (≈ 6% of the total area of Kazakhstan)

Population ≈ 546 thousand people (in 2011)

Capital – Aktau (population ≈ 200 thousand people)

The region includes 2 main cities (Aktau and Zhanaozen) and 5 rural areas.

I. General information about the region2. AREA AND POPULATION

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South KazakhstanZhambyl region

Almaty regionNorth Kazakhstan

Akmola regionKostanay region

East KazakhstanKyzylorda region

Karaganda regionAktobe region

Pavlodar regionWest Kazakhstan

City of AstanaMangystau region

City of AlmatyAtyrau region

$ 815

$ 865

$ 905$1 224

$1 365

$1 535$1 702

$2 142

$2 636

$2 665$2 754

$3 358

$4 603

$4 878$5 275

$9 612

Gross Regional Product (GRP) per capita in 1 quarter 2012

(in U.S. dollars)

7/2/1905 7/3/1905 2012 (forecast)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

500

515

530

545

560

575

$10.0

$12.0

$13.5

524

546

564

GRP (in billions of U.S. dollars)population (in thousands)

$ billion thousand

Kazakhstan average =

$2 429

I. General information about the region3. GROSS REGIONAL PRODUCT AND POPULATION GROWTH

GRP and population growth

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13,6%

Republic of KazakstanMangystau region

South KazakhstanZhambyl region

North KazakhstanEast Kazakhstan

Akmola regionKostanay region

Almaty regionKaraganda regionKyzylorda region

West KazakhstanPavlodar region

City of AlmatyAktobe region

Mangystau regionCity of AstanaAtyrau region

$ 328

$ 346

$ 388

$ 562$ 579

$ 582

$ 674

$ 679$ 734

$ 850

$ 955

$ 977$1 716

$2 279

$2 630

$7 190

Kazakhstan aver-age

= $ 1023

CAPITAL INVESTMENTper capita, January-July 2012

(in U.S. dollars)

I. General information about the region4. CAPITAL INVESTMENT AND MANUFACTURING ACTIVITY

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Mangystau region accounts for 13,6% of the country’s manufacturing activity

MANUFACTURING ACTIVITY

as of July 1, 2011 as of July 1, 201215

17

19

21

23

25

27

29

30

32

34

36

38

40

42

44

22.824.1

33,2%

33,8%

Number of registered small businesses, thousands% of economically active population employed by small businesses

тыс.

I. General information about the region5. GROWTH OF ENTREPRENEURIAL ACTIVITY

Number of registered small businesses and % of population employed by the small businesses

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Industry City Brief Project/Technology Description

Electricity Amsterdam (Netherlands) Smart meters and systems regulating residential power consumption

Water supply Masdar(UAE) Solar-powered desalination station

Transportation Stockholm (Sweden) Smart road traffic systems (based on video surveillance)

Social services Berlin (Germany)

Electronic medical history, remote outpatient care through computer monitoring systems, electronic prescription systems

Ecology Hanoi (Vietnam)

“Green” residential area with low-rise buildings and pedestrian-only streets (includes all necessary infrastructure – parks, schools, hospitals, shops, recreational facilities) for 20,000 people

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Core elements of the concept Systemic approach to the innovative activity in the region Focus on the innovative technologies in manufacturing and agriculture Transparency for local and international investors Increasing the level of innovative and technological development

Examples of the leading “smart” regional programs

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II. Innovation-focused development1. “SMART” REGION MANGYSTAU

«SMART» REGION

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Coastlineinfrastructure

Utilities and engineering infrastructure

Special economic zone “Seaport Aktau”

Tourism

Transportation infrastructure

Oil and gas services

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II. Innovation-focused development2. REGIONAL DEVELOPMENT PRIORITIES

Kazakhstan’s sector of the Caspian Sea MAIN GOAL

Creating additional capacities in shipbuilding and repairs, fabricated metals and metal goods

Building a passenger terminal in the Aktau seaport Setting up an oil spill cleanup and prevention facility Opening a multi-functional main coordination center

SHORT-TERM AND IN-PROGRESS PROJECTS

MID- AND LONG-TERM PROJECTS

Comprehensive approach to the coastline development

Shipbuilding facility / shipyard in the city of Kuryk International conference “Offshore 2012”

Zone 1

Zone 2

Zone 3

Atyrau

Bautino

Aktau

Kuryk

III. Regional development priorities 1. COASTLINE INFRASTRUCTURE

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MAIN GOALSHORT-TERM AND IN-PROGRESS PROJECTS

MID- AND LONG-TERM PROJECTS

Improving employment opportunities and increasing local content in goods and services

of oil and gas companies Building a technical training center Opening the Engineering Center for

the Central Asia Transfer of the effective

technologies for import substitution

Employee training for offshore oil production in collaboration with offshore project operators

Further development of the Center of Engineering for the Central Asia

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III. Regional development priorities 2. OIL & GAS SERVICES

Large Customs

Stations Republic of Kazakhstan

KhorgosSeapor

t Aktau

Ozinki

Kayrak

Zhibek Zholy

Transport and Logistics Center in the city of Beyneu

“Traseka”

“North-South”

MAIN GOAL

SHORT-TERM AND IN-PROGRESS PROJECTS

MID- AND LONG-TERM PROJECTS

Increasing and diversifying passenger and cargo traffic

Expanding the capacity of the Aktau seaport, creating a transportation and logistics center

Building a cargo terminal at the Aktau International Airport

Reconstruction of the Zhetybay – Zhanaozen highway (on the border with Turkmenistan)

Developing the seaports in Aktau, Bautino, Kuryk

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III. Regional development priorities 3. TRANSPORTATION INFRASTRUCTURE

MAIN GOALSHORT-TERM AND IN-PROGRESS PROJECTS

Ethno- and eco-tourism, information and support services

Introduction of an amendment to the national gambling law

Opening a gambling zone in the region

MID- AND LONG-TERM PROJECTS

Encouraging larger national companies to build corporate recreational centers

Creating an integrated resort and recreational zone “Kenderly”

Creating a tourism and recreation cluster in Mangystau region

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III. Regional development priorities4. TOURISM

MAIN GOAL

MID- AND LONG-TERM PROJECTS

Attracting investors interested in developing high-tech innovative companies

Introduction of amendments to the Presidential Decree “Creation of the Special Economic Zone “Seaport Aktau” (increasing the area of SEZ)

Infrastructure development in subzones 2, 4, 5, 6

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Land tax – 0% Property tax – 0% Corporate income tax – 0% Land usage rent – 0 Import duties – 0% Value Added Tax exemptions for

the goods imported into the Aktau seaport

BENEFITS AND PREFERENCES

III. Regional development priorities5. SPECIAL ECONOMIC ZONE “SEAPORT AKTAU”

MAIN GOAL

SHORT-TERM AND IN-PROGRESS PROJECTS

MID- AND LONG-TERM PROJECTS

Improving the regional utility services

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Modernization of the water supply and drainage systems in cooperation with EBRD in the cities of Aktau and Zhanaozen

Reconstruction of the water desalination facility “Caspiy”

Building the recycling factory with the help of EBRD

Building a combined-cycle power generating unit MAEK

Developing alternative energy sources

III. Приоритетные направления6. UTILIES AND ENGINEERING INFRASTRUCTURE

IV. Expected results

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THANK YOU FOR YOUR ATTENTION!

«New Silk Way» Project Completing the Sea Port Aktau expansion; Construction launch for “Beyneu – Zhezkazgan” railroad; Developing the elements of oil&gas service cluster; Implementing international resort and recreation zone “Kenderly”

project; Developing new high-tech innovative technologies and opening

more innovative businesses.