Solve problematic issues promptly and manually — Alikhan Smailov on launching investment projects in regions

The issue of attracting investment in the manufacturing industry was considered at the Investment headquarters chaired by Prime Minister of Kazakhstan Alikhan Smailov. 

As reported by Deputy Minister of Industry and Infrastructural Development Ilyas Ospanov, for the past 9 months in the fixed capital of the manufacturing industry attracted 1 trillion and 27 billion tenge of investment, which is 6.4% less than in the same period last year. The planned indicator until the end of the year is 2.1 trillion tenge.

In terms of sectors, growth is noted in light industry - 2.5 times to 11.3 billion tenge, furniture production 4.5 times to 14 billion, as well as rubber and plastic products 1.6 times to 81.4 billion. At the same time, positive dynamics in fixed capital investment is observed among companies producing paper products, beverages and food products.

In general, this year it is planned to launch 170 projects for an investment of 1 trillion tenge. The largest of them are enterprises for the production of household appliances and special coke, as well as an enrichment plant for sludge processing. To date, 65 projects worth 200 billion tenge have already been commissioned.

At the same time, the regions have postponed the implementation of a number of investment projects planned to be launched by 2027 to later years. This is due to the limitation of investors' equity capital, infrastructure, lack of or delayed delivery of equipment, as well as land issues.

The Prime Minister pointed out that the Ministry of Industry and Construction should carry out more active coordination work in this direction.

"Just by approving the roadmap all the issues cannot be solved. We need to monitor how these projects are implemented, what problems are not solved on the ground, and on our part to help akims. Do you approve the road map and think that you have solved all the problems? This is just bureaucracy! We cannot say that the issues have been solved until investment projects are implemented and there is no result,"Alikhan Smailov said.

Turning to the regions, Prime Minister noted that in Aktobe region there is a decrease in investment in the manufacturing industry. Also, 5 projects have been postponed to a later period.

"For example, the implementation of the project for the production of ceramic tiles has been suspended. The Akimat delayed the procedure of land plot allocation for more than six months. As a result, the investor is considering moving the project to another region," Alikhan Smailov said.

He emphasized that the construction of an enrichment plant for processing gold-bearing ores with the creation of 1,000 jobs has also been postponed until 2026. In particular, this is due to the delayed for almost half a year terms of approvals for connection to electricity and gas.

Askhat Shakharov, akim of the region, Nabi Aitzhanov, Chairman of the Board of KEGOC, and Baurzhan Askarov, Chairman of the Board of KazTransGas Aimak, made comments on these issues.

"These projects are very important, first of all, for the economy of the region. Therefore, the akimat together with the companies should solve all existing issues as soon as possible so that investors could start their implementation," Prime Minister pointed out.

Prime Minister noted that in Akmola region the volume of investments for 9 months had also decreased. There are delays in the implementation of 6 investment projects. For example, the construction of a brick factory is delayed since 2021, as the Akimat has not issued a license for clay mining to the investor.

Along with this, in Mangystau region 10 projects have also been postponed.

"The region has a promising project for the production of ammonia and urea, but the necessary infrastructure is not connected to it. Also, the issue of natural gas supply, which is the main raw material, has not been resolved," Alikhan Smailov said. 

Deputy Akim of Akmola region Azamat Tayzhanov and First Deputy Akim of Mangystau region Zhumabai Karagaev commented on the information.

Prime Minister emphasized that the regions need to be more active in the implementation of investment projects, as thanks to them new jobs appear and economic indicators in general improve. 

"In case of difficulties akimats have taken as a rule to postpone the implementation of projects or abandon them altogether. Although they should solve problematic issues promptly and manually," Alikhan Smailov said.

At the same time, he said, there are regions where investment volumes are growing and successful projects are already bringing benefits. In particular, these are Turkestan, Kyzylorda, North-Kazakhstan regions, Zhetisu region and Astana city.

"All tools and mechanisms are provided. Akims need to implement them correctly and actively on the ground," Prime Minister emphasized.

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