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Commercial News Update
Kazakhstan
December 2007
By Beibit Yerubayev, BISNIS Representative for Kazakhstan
This report contains the following information:
Kazakhstan General
Nazarbayev says
Kazakhstan supports Collect Decision Making in Foreign Policy
Astana will not revise earlier
subsurface management contracts - Nazarbaev
Industrialization-focused investors to
enjoy preference for subsoil use
Housing prices to come back on track in 2008, Kazakhstan Mortgage Company
Oil and Gas Sector
OMEL looking for Opportunities in
Kazakhstan and Azerbaijan
Oil Shipments via Aktau Sea Port reach
9.5 Million Tons
Kazakhstan says ExxonMobil holding up
Kashagan Deal
Oil Production increases 4% in 2007
Finance and Investment
Kazyna Fund deposits Money at BTA for
Sustainable Development Programs
Eurasian Bank repays $70 Million ‘A’
Tranche of Syndicated Loan
Global Finance rates BTA Best Trade
Financing Bank in Kazakhstan
ENRC plans Domestic Share Offering in
2008
Moody's affirms Kazatomprom’s ‘Baa3’ Rating,
Stable Outlook
Gold and Currency Reserves jump 0.3 %
Kazakhstan continuing Work on SEZs
Kazakhstan raises commercial bank
capital requirements
Mining and Metallurgy
Kazatomprom plans to operate Uranium
Mines
Kazakhmys procures $2 Billion 5 Year Syndicated
Loan
SNC-Lavalin will install
New Equipment for KazZinc
Communications and Transportation
Kazakhstan will build Railway Cars in
2008
Kazakhstan moving toward adopting
European Aviation Standards
Trade and Consumer Goods
Kazakhstan becomes CIS Intergovernmental
Agro-industrial Council Chair
Masimov presents new Chair of the Agency for the Regulation of Natural Monopolies
Kazakhstan General
Nazarbaev
says Kazakhstan supports Collect Decision Making in Foreign Policy
Kazakhstan consistently supports the formation of a system of international relations based on mechanisms of collective decision making, human rights and democratization within the United Nations, President Nursultan Nazarbayev stated at the Moscow State Institute of International Relations of the Russian Ministry of Foreign Affairs, Kazakhstan Today cited the Presidential Press Office as reporting.
Mr. Nazarbayev noted that Kazakhstan’s foreign policy priorities remain unchanged – an active, multipurpose and balanced foreign policy, capable of resisting challenges and aimed at the maintenance of long-term national interests.
The president said he believes great opportunities and new prospects, especially economic, are opening in the country’s mutual relations with nations of the Near East, the Persian Gulf, the Asian-Pacific region and Latin America, according to Kazakhstan Today
Kazakhstan will not review earlier signed subsurface use contracts,
Kazakh President Nursultan Nazarbaev said.
"This concerns the [recently amended subsurface use] law, which will not be retroactive as to earlier signed subsurface use contracts," Nazarbaev told a press conference after the 18th meeting of the Kazakh Presidential Council of Foreign Investors in Astana on Friday.
“Any law, including subsoil use law, is implicit. On the one hand, we do not want to aggravate the investment climate in Kazakhstan. The investors, on the other hand, do not want us to terminate the earlier concluded contract. With these two viewpoints in mind people will always be able to reach fair and transparent agreements,” Nazarbaev thinks.
“We are not trying to seize somebody’s profit or nationalize something,” he stressed.
“We would like everything to be honest and fair. That is why we adopt such laws,” Nazarbaev said.
As reported, on November 2 Kazakhstan brought into force a law “On Amendments to the Law “On Subsoil and Subsoil Use” which impose tougher requirements on the subsoil users.
In accordance with the amendments the state may unilaterally terminate the subsoil use contracts including those that were concluded earlier if the operations of the investor put the national security of the republic in jeopardy.
In this case the competent authority does not have to go to court or arbitration.
Thus, Article 2 of the mentioned law runs: “The law comes into effect on the date of its official publication and applies to earlier concluded production contracts or production and exploration agreements.”
The law on subsoil and subsoil use is amended with Article 45-3, which runs as follows: “Unilateral refusal to fulfil the contract:
1. Following the government’s instruction the competent authority may unilaterally refuse to fulfil the contract if the subsoil users’ operations associated with subsoil use of the strategic subsoil areas (fields) materially affect the economic interests of Kazakhstan so that the national security is put in jeopardy.
2. In case of unilateral refusal to fulfil the contract, the competent authority is to give the subsoil user at least a two months’ notice.”
According to revised Article 45-2 of the law on subsoil and subsoil use, “the competent authority may terminate the contract unilaterally in the following cases:
1) if the contractor refuses to rectify the reasons which underlie a decision to suspend the exploration, or production or exploration and production, or construction and (or) operation of subsoil facilities non-associated with exploration and (or) production, or if such reasons are not rectified within a reasonable period;
2) if the subsoil user does not take actions as specified in Article 70 hereof;
3) if the reasons which led to a suspension of the subsoil use operations have not been rectified;
4) if the contractor does not comply with the obligations stated in the contract and work scope;
5) if the contractor is announced bankrupt in accordance with the legislation of the Republic of Kazakhstan except for the cases when the right of subsoil use is a collateral under this Law;
6) if part three of Article 71 hereof relating to the state’s right of priority is not followed:
7) if within two months after receiving the notification from the competent authority, as required by clause 1 of this Article, regarding changes in and (or) amendments to the terms and conditions of the contract the subsoil user does not agree in writing to conduct such negotiations or refuses to enter the negotiations;
8) if within four months after the subsoil user agreed to enter the negotiations for changes in and (or) amendments to the terms and conditions of the contract the parties fail to reach an agreement on the changes in and (or) amendments to the terms and conditions of the contract in accordance with clause 1 of this Article;
9) if within six months after the agreement on reinstatement of Kazakhstan’s economic interest was reached the parties fail to sign amendments to the contract terms and conditions in accordance with clause 1 of this Article.”
The competent authority “may demand, before the decision about termination of the contract is made, that the subsoil use operations be stopped immediately by sending a notification to the contractor and the contractor will immediately satisfy the demand.”
“The parties may terminate or change the terms and conditions of the contract only for the reasons and in accordance with the procedure specified by the laws of the Republic of Kazakhstan and the contract. The parties will not be released of their current obligations that have not been fulfilled by the moment the contract is terminated or its terms and conditions changed.”
“In spite of the termination of the contract the subsoil user is still bound to restore the licensed area so that it is safe for the population and environment based on a liquidation project approved in accordance with the procedure established by the law of the Republic of Kazakhstan,” the law reads.
Industrialization-focused
investors to enjoy preference for subsoil use
Interfax-Kazakhstan - Kazakhstan welcomes investments in the non-primary industries, said Kazakh President Nursultan Nazarbaev.
“We expect our investors to actively participate in the industrial development of Kazakhstan; we also expect that new technologies, investments come to the non-primary sector of our economy. We shall give our preference to those partners who will participate in Kazakhstan’s industrialization process when allocating energy and mineral resources,” Nazarbaev said at a meeting with foreign diplomats in Astana on Monday.
He also said that the role of Kazakhstan in the international economic arena is growing every year and the republic is successfully integrating into the global economy.
Kazakhstan has already established trading and economic relations with over 60 countries, engaged in export and import operations with as many as 177 countries of the world, the president said.
Housing prices to come back on track in 2008, Kazakhstan Mortgage Company
Interfax-Kazakhstan - Kazakhstan Mortgage Company CEO Azamat Ibadullaev expects stabilization of housing prices next year.
"We are witnessing price adjustments on the housing market now and will continue witnessing them next year (...) Adjustments will be maintained through January, February and March. After that the situation will come back on track and we will be having more fair prices, instead of that inflated price we had until August,” he said at a press conference in Almaty on Tuesday.
According to Ibadullaev, "the happy medium will be found," which will lead to stabilization of banking risks on mortgage market.
KMC has been operating on Kazakhstan’s mortgage market since December 2000 within the national housing program.
Oil and Gas Sector
OMEL
looking for Opportunities in Kazakhstan and Azerbaijan
Indian born steel baron, L. N. Mittal’s joint venture with Oil and Natural Gas Corporation Videsh Limited (OVL) beat Britain’s Centrica plc to bag an exploration block with estimated gas reserves of two trillion cubic feet (tcf) in Trinidad and Tobago.
Mittal Energy and OVL joint venture, ONGC-Mittal Energy Ltd (OMEL), made a revised financial commitment of about $204 million to win the block. Trinidad and Tobago had in January 2006 offered eight onshore and three shallow marine blocks for bidding. OMEL made an initial bid of about $175 million, including signature bonus.
It later emerged that Centrica and a consortium led by BG of Britain had also submitted bids for the block.
OMEL said that there was a tie in the bids of OMEL and Centrica and OMEL was asked to submit a revised bid. The bid parameters were reviewed by OVL and OMEL in consultation with technical advisors and a revised bid for the block with an increase in the minimum financial exposure to OMEL from about $175 million to about $204 million was submitted.
The Trinidad and Tobago Government has said that OMEL’s revised bid had been successful and it had invited the company to negotiate the production-sharing contract (PSC) for the block.
Official sources said that though it was earlier decided that a part of the equity would be shared with other Indian companies, considering the level of investment and risk involved, OMEL decided not to farm-out any equity at this stage and it would hold 100 per cent participating interest in the block.
This is OMEL’s second biggest success after Nigeria where it had acquired two exploration blocks. Mittal had in July 2005 inked a joint venture agreement with ONGC Videsh for acquiring oil and gas fields, refinery business and LNG projects in 27 countries. OMEL was looking for various opportunities in Kazakhstan, Turkmenistan, Azerbaijan, Indonesia, which were at different stages of progress, the official said, according to the Hindu.
Oil
Shipments via Aktau Sea Port reach 9.5 Million Tons
Oil shipment via the Aktau Sea Port reached 9.5 million tons for a total value of $4.75 billion, having increased as compared to 2006 by tens of thousands of tons, Talgat Sapargaliev, the chief of the Aktau Energy Customs Post said.
Five oil terminals operate at the Aktau Sea Port at present. The average oil throughput capacity at the port is about 800,000 tons per month.
The most important routes for oil exports by sea include the ports of Makhachkala, Apsheron, Baku and Iran. Kazakhstan’s oil is shipped through the Baku port, and from there -- transported via railway to the Batumi Port, Novorossiysk and delivered beyond the region via the Black Sea.
“In the next ten years, up to 40 million tons of hydrocarbons will be exported by sea, and 20 million tons of oil will be transported through Aktau and the currently built Kuryk Port,” Mr. Sapargaliev said, according to Kazinform.
Kazakhstan
says ExxonMobil holding up Kashagan Deal
US energy major ExxonMobil is holding up a deal to resolve a dispute over the massive Kashagan oil field being developed by a Western-led consortium, Energy Minister Sauat Mynbayev said on Monday.
The deal would involve state energy company KazMunaiGas doubling its stake in the project from 8.33 percent to 16 percent, and has been agreed by all the other five companies in the consortium, Mynbayev said.
"If we can agree, that would be good. Basically, we've agreed with everyone except ExxonMobil," Mynbayev said in the capital Astana, a ministerial adviser, Dinara Shaimardanova, confirmed to AFP.
A spokeswoman for KazMunaiGas, Ilya Pustogachev, declined to comment on the content of ongoing commercial negotiations but said "the talks are extremely tough at the moment."
Kashagan, an offshore field in the Caspian Sea, is the biggest oil reserve found in the world since the 1960s and is key to Kazakhstan's plans to become a top global oil exporter.
The Kazakh government has threatened it could force changes to the Kashagan contract if negotiations fall through with Western investors, because of extensive delays and cost overruns in the project.
Eni SpA, Total, ExxonMobil and Shell each hold an 18.52-percent stake. ConocoPhillips, also of the US, owns 9.26 percent while Japan's Inpex and KazMunaiGas each hold 8.33 percent.
Eni said in a statement on Friday that the consortium had signed a memorandum of understanding with the Kazakhstan government that represented a "significant step forward in Kashagan negotiations."
Eni said the deal would be finalized "by early 2008 at the latest."
The dispute over the project revolves around a delay in the start of production from 2005 until 2010 and a massive rise in the estimated overall cost, from 57 billion dollars to 136 billion dollars, according to Agence France Presse.
Oil Production increases 4% in 2007
As of December 19, 2007, Kazakhstan produced 64.764 million tons of oil in 2007 having increased production levels by 4% as compared to 2006, Lyazzat Kiinov, the deputy minister of energy and mineral resources said, according to RIA News.
He added that oil processing in various categories increased in the country --- except for kerosene. Benzene production increased by 112.8%, diesel fuel - 112.4%, air kerosene production was nearly 92% more than compared to 2006.
Mr. Kiinov also noted that Kazakhstan had agreed with the major oil producers to maintain current prices until January 2007, according to Oil of Russia.
Finance and Investment
Kazyna Fund
deposits Money at BTA for Sustainable Development Programs
The Kazyna Sustainable Development Fund JSC has deposited nearly US $81 million with Bank TuranAlem, according to a press release from the latter.
The funds were deposited under an agreement signed on December 6, 2007 between the Ministry of Finance of Kazakhstan, the Astana Akimat, the Kazyna Fund for Sustainable Development, the Kazakhstan Mortgage Company and second-tier banks.
The document is intended to facilitate cooperation within the implementation of a top-priority action plan aimed at ensuring stable social and economic development.
The funds have been deposited for three years and earmarked for completing construction projects approved by responsible government agencies.
Under the agreement, Kazyna possesses the right to make inquires on the application of the funds. Moreover, the banks and development companies are required to jointly finance a minimum of 15% of the projects. Kazyna will provide 85% of all the required financing, second-tier banks - 10% and construction companies - 5%.
Moreover, it was agreed that BTA would receive almost US $100 million for a SME support program from the State Fund for the Development of Small Business JSC, according to Kazakhstan Today and the Financial (Georgia).
Eurasian Bank repays $70 Million ‘A’ Tranche of
Syndicated Loan
The Eurasian Bank has successfully repaid the $70 million ‘A’ tranche (370 days) of syndicated loan it borrowed in December 2006.
This loan -- for a total $110 million, with the first tranche for 370 days and the second - 2 years, was provided to the Eurasian Bank by a syndicate of foreign banks. The London branch of Deutsche Bank AG and Raiffeisen Zentralbank Osterreich AG were lead-managers for the deal.
The funds were used for financing the bank's clients’ import and export contracts.
According to a non-consolidated non-audited report -- as of December 1, 2007, the bank’s assets totaled KZT 179.7 billion, and shareholders’ capital - KZT 28.7 billion.
The bank’s net income totaled KZT 2.5 billion at the end of the first 11 months of 2007. The bank’s network included 17 subsidiaries and 39 departments as of December 1, 2007, according to the KASE.
Global Finance rates BTA Best Trade Financing Bank in Kazakhstan
Global Finance has named Bank TuranAlem the Best Trade Financing Bank in Kazakhstan.
The selection was conducted according to criteria such as volume of transactions, international payments, customer services, competitive prices and innovative technology. Global Finance in cooperation with analysts, the leading managers of large companies and financial experts choose the best banks in the field of trade financing in 67 countries and regions across the world. The final results will be published in the February issue of Global Finance.
“This award indicates that in the current conditions of the financial market, BTA has remained a reliable partner in trade financing and is maintaining the trust of its clients and partners,” Timur Sabyrbayev, the chief of the International Relations and Trade Financing Department at BTS said.
The following banks were named winners in their respective countries -- Citibank (U.S.) HSBC (Great Britain), Alfa Bank (Russia), UniCredit (Austria), BNP Paribas (France) etc, according to the KASE.
ENRC plans
Domestic Share Offering in 2008
London-listed mining and metals group ENRC plans to offer shares on the Kazakhstan Stock Exchange in 2008, ENRC board member and Deputy Finance Minister Daulet Yergozhin said on Monday.
He did not say what the volume of the offer would be.
"The board will decide on the volume (of the offering) in January," Yergozhin told reporters at a conference in Astana.
Earlier this month ENRC sold 20 percent of its shares in London in a deal that valued the company at $13.8 billion.
Yergozhin also said the government would sell 0.8 percent from its 24.8 percent stake in the first half of 2008 to Kazakh citizens.
ENRC is the world's fifth-largest supplier of traded alumina by volume, the world's sixth-biggest iron ore exporter by volume and produces around 16 percent of Kazakhstan's electricity.
Apart from the government, Kazakh copper company Kazakhmys holds an 18.8 percent stake while the rest is controlled by metals magnates Alexander Mashkevich, Alijan Ibragimov and Patokh Shodiyev, according to Reuters.
Moody's
affirms Kazatomprom’s ‘Baa3’ Rating, Stable Outlook
Moody's Investors Service, Inc has today affirmed the ‘Baa3’ foreign currency issuer rating for the National Atomic Company with a Stable Outlook.
By virtue of its current ownership structure (100% owned by the government), Kazatomprom is considered a government-related issuer (GRI).
As such, Kazatomprom's ‘Baa3’ foreign currency issuer rating incorporates a standalone credit profile of 12 (on a scale of 1 to 21, where 1 represents the lowest credit risk, with the 12 being equivalent to a ‘Ba2’ rating), the ‘Baa1’ local currency rating of the support provider, the Kazakhstan government, a medium dependence and high support.
The affirmation reflects the underlying strengthening of the company's BCA -- which has been upgraded from 13 to 12 - as evidenced by: (i) a stronger credit profile which is supported by healthy fundamentals in the sector with good visibility of revenue for the medium term; and (ii) greater financial flexibility confirmed by 2006 and preliminary 2007 operational and financial results which demonstrate improved cash flow generation and satisfactory liquidity.
Kazatomprom's BCA continues to reflect (i) Kazatomprom's long term licenses to exploiting the existing uranium deposits in conjunction with estimated reserves life at around 49 years based on future production levels, (ii) the long term nature of contracts with customers that provide a good visibility on future revenues levels, (iii) the strategic role of the company as the operator of Kazakh nuclear raw material resources, (iv) the benign market environment with sustained demand levels and the prospect for limited supply, at least until 2009, (v) good operating margins although recently sustained by high uranium prices in the market and (vi) building track record of successful implementation of an ambitious capex program and selected acquisitions.
The rating, however, also reflects (i) the relatively small size of the company and the modest business diversification, (ii) the high exposure to environmental and contamination risks which to date have not been quantified by provisions; the adoption of IFRS from 2006 will require Kazatomprom to establish an appropriate level of reserves; any future cash cost for remedial action will likely be determined in consultation with the Kazakh government, (iii) the fact that Uranium prices, currently at a peak, are forecasted to decrease over the medium term, though moderately and (iv) new challenges coming from recent acquisitions and newly formed joint ventures which would require substantial management and financial resources in order to derive projected synergies.
Kazatomprom's ‘Baa3’ issuer rating also takes into consideration Moody's opinion of high support provided by the government due to the strategic and importance of the company’s reputation, together with the current 100% ownership that is not expected to change in the near future, and the strong link between the government and the company.
The change in dependence level from Low to Medium reflects the increased vulnerability of the government and the company to common risks as both rely on global commodity prices and are therefore subject to similar shocks (albeit for different commodities), as the government depends more on oil exports.
The Stable rating outlook reflects Moody's view that under the current regulatory regime, the company is likely to make good progress towards the completion of the investment program and that market dynamics will remain favorable. The outlook also assumes that the current ownership of Kazatomprom will remain unchanged.
The Joint-Stock National Atomic Company Kazatomprom was established in accordance with the presidential decree dated July 1997. 100% owned by the government, the company is responsible for the development of the country’s nuclear resources.
The main activities of the company are the mining of natural uranium, the production of uranium, beryllium, tantalum, niobium and hydrofluoric acid and the generation of electricity, heat power and water. In 2006, the company reported revenue of app. US $701 million and EBITDA of US $235 million, according to CBonds.
Gold
and Currency Reserves jump 0.3 %
Kazakhstan’s international currency reserves (at current prices), including money in the National Fund (preliminarily -- $20.914 billion), have increased by 0.3% to $39 billion, Kazakhstan Today has cited the National Bank as reporting.
A decrease in net international reserves at the National Bank in the first half of December 2007 led to a compression of the monetary base by 2.9 %, or KZT 42.5 billion. At the same time, net international reserves at the National Bank at current prices have decreased by 0.2 %, or by $30.8 million.
The National Bank’s operations for servicing the external debt of the Ministry of Finance, a decrease in the balance of the National Bank’s correspondence accounts in foreign currency at second-tier banks have been partially neutralized through the purchase of currency on the internal currency market and currency income on government accounts in the National Bank.
As a result of the operations, net foreign currency reserves (hard currency) have decreased by $50.0 million; assets in gold have jumped by $19.2 million, owing to an increase in its price on world markets by 0.2 %.
In real terms, the net international reserves of the National bank have decreased by 0.2 %, and net assets in hard currency - 0.3 %, according to Kazakhstan Today.
Kazakhstan
continuing Work on SEZs
The completion of five more special economic zones are needed in Kazakhstan, Minister of Industry and Commerce Galym Orazbakov said during “Government Hour” in the parliament.
It is necessary to continue the creation of special economic zones," Orazbakov stated. These include the special economic zones -- Dostyk and Horgos - the East Gate on the Chinese border, the West Gate Special Economic Zone on the Russian border, the Burabay Special Economic Zone in the Akmola Oblast and the Tobol Special Economic Zone in the Kostanay Oblast.
The minister noted, "Work on the creation of industrial zones is now underway". He added, "The governmental decree approving the list of industrial zones, which will be organized in 2008-2010 with the participation of the state, has been adopted recently.
"The creation of the Almaty-Zhihaz zone near Almaty, Orken in the East Kazakhstan Oblast, the industrial zones in Aktobe, Pavlodar, Kyzylorda, the South Kazakhstan Oblast has been developed," the minister reported, according to Kazakhstan Today
Kazakhstan
raises commercial bank capital requirements
Almaty. December 11. Interfax-Kazakhstan - Kazakhstan's Financial Supervision Agency (FSA) has adopted a resolution increasing the minimum reserve capital, charter capital and bank capital requirements for second-tier banks, said the agency.
Resolutions were adopted on minimum charter and bank capital for second-tier banks and on amendments to some legislation on financial market and financial organization regulation and supervision.
The document increases the minimum capital requirement for commercial banks to 1.5 billion KZT on January 1, 2009 and to 2 billion KZT on January 1, 2010. The current requirement stands at 1 billion KZT.
Minimum charter capital is to be increased to 2 billion KZT from 1.5 billion starting January 1, 2010.
Reserve capital
requirements will change on May 1, 2008 to at least 2% of the loan portfolio.
"According
to preliminary estimates, combined reserve capital will triple after the
resolution comes into force and this will have a positive impact on first-tier
capital," according to the statement.
To cover losses related to banking activity, banks must put together reserve capital with net profit before dividend payments.
Mining
and Metallurgy
Kazatomprom
plans to operate Uranium Mines
Kazatomprom will put Khorasan-1 and Irkol mines in the Kzylorda Oblast into operation in spring 2008, according to Mineral (Russia).
The construction of the Irkol and Khorasan-1 has been completed, but the official commissioning will take place in spring 2008, Mukhtar Dzhakishev, the president of the company said.
Yerzhigit Kalmurzayev, the general director of Kzylkum LLP, which is developing the Khorasan-1 project, said it plans to produce 320 tons of uranium in 2008, 600 tons in 2009, 1,000 tons in 2010 and 2,000 tons in 2012. The company should reach project capacity of 3,000 tons per year in 2014.
He added that the Khorasan-2 uranium mine is also expected to reach project capacity of 2,000 tons per year.
The Irkol mine will be operated by the Rudoupravlenie No 6 LLP Company --a part of the Gornorudnaya Compania LLP - an affiliate of Kazatomprom.
The founders of Kzylkum LLP are Kazatomprom (30%), a consortium of Japanese energy companies including Energy Asia Ltd (40%) and UrAsia London Ltd (30%).
The uranium reserves at both the Khorasan 1 and 2 mines have been evaluated at 160,000 tons of uranium, according to Ukraine Daily.
Kazakhmys
procures $2 Billion 5 Year Syndicated Loan
Kazakhmys Corp., the largest copper producer in Kazakhstan will procure a 5-year syndicated loan for $2 billion, secured by export deliveries, an unnamed source from banking circles said.
The source said that Deutsche Bank has been appointed as coordinator for the deal.
The company produces refined copper and crude cooper and has four industrial complexes – which are Zhezkazgan, Balkhashtsvetmet, Vostoktsvetmet and Karagandatsvetmet.
The company began copper production at new mines last quarter, resulting in a growth in cooper production, according to CBonds.
SNC-Lavalin
will install New Equipment for KazZinc
The Canadian SNC-Lavalin will install all of the equipment for a new sulphuric acid production plant owned by KazZinc. The plant will be a part of the new copper-smelting complex in Ust-Kamenogorsk.
The Canadians not only plan to install the equipment, but will also conduct mechanical operations to calibrate the machinery. They will install advanced technology to treat atmospheric emissions in order to spare the new plant from future environmental liabilities.
According to preliminary plans, the plant will be put into operation at end of 2009, according to Expert-Kazakhstan.
Communications
and Transportation
Kazakhstan will build Railway Cars in 2008
Minister of Industry and Trade Galym Orazbakov said at a government session in the Majilis on December 25, 2007 that the domestic production of railway carriages would start in 2008. The demand for carriages has drastically increased in demand over the last few years. The production will be focused at the Petropavlovsk, Ekibastuz, Aralsk and Aktobe Oblasts.
He specified that the carriage construction would be built in 2008 not far from Astana and production would begin in 2009.
The minister stressed that these projects would be executed with the participation of local development institutes, according to Kazinform
Kazakhstan
moving toward adopting European Aviation Standards
Mukhit Kubayev, the chairman of the Civil Aviation Committee under the Ministry of Transportation and Communications, conducted a seminar to inform national civil aviation companies on the progress being made under the execution of the national plan to move Kazakhstan toward European aviation standards, according to MTC Press Office.
Airlines, airports, representatives from the Civil Aviation Committee, the Aviation Technical Center, AsiaMegaTransit LLP and CenterStandardCom participated, according to Kazinform.
Trade and Consumer Goods
Kazakhstan becomes CIS Intergovernmental Agro-industrial Council Chair
Kazakhstan has become the chairman of the Intergovernmental Council for the Agro-Industrial Complex of the Commonwealth of Independent States, the council issued a statement reporting at a session in Moscow, Kazakhstan Today cited the Ministry of Agriculture as reporting.
According to the press service, "Russia has headed this organization from the moment of its creation." Russia however has now proposed Kazakhstan’s candidacy for chairmanship, according to Kazakhstan Today
Masimov presents new
Chair of the Agency for the Regulation of Natural Monopolies
Prime Minister Karim Masimov has introduced the new chairman of the Agency for the Regulation of Natural Monopolies -- Nurlan Aldabergenov, Kazakhstan Today cited the Prime Minister’s Press Office as reporting.
According to the related press release, Mr. Masimov noted Mr. Aldabergenov's professional experience and gave him his first assignment.
"I publicly promised that tariffs would not be raised in the first quarter of 2008. We will consider it closely as a tool -- both economic and social. This issue needs to be under continuous control," the prime minister stated.
Nurlan Aldabergenov was born November 19, 1962 in Alma-Ata. He graduated from the Alma-Ata Architectural and Construction Institute, the Kuibyshev Moscow Institute of Engineering and Construction and Kunayev University. He is a construction engineer, a lawyer, and a candidate of economic sciences.
Since 1996, he worked as the vice president of the Committee for Pricing and Antimonopoly Policy of Almaty. Beginning in 1999, he was the director of the Department for the Regulation of Natural Monopolies and the Protection of Competition in Almaty.
Since September 2004 he was vice president of the Agency for the Regulation of Natural Monopolies, according to Kazakhstan Today.
Some of the figures listed in the text are in
local currency – KZT (KZT). The current exchange rate is 1 USD = 120.5 KZT
For more information on topics covered in this
report as well for obtaining contact information, please contact:
BISNIS
Representative for Kazakhstan
Beibit Yerubayev
Tel/Fax: +7 (3172) 23 63 17
Mobile: +7
701 742 55 66
For more information on Kazakhstan, visit BISNIS
Online at
http://bisnis.doc.gov/bisnis/country/kazakhstan.cfm
BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov)