“Investment potential of Astana city” Administration of the Special Economic Zone “Astana – new city” Administration of the Special Economic Zone “Astana – new city”

Republic of Kazakhstan Since Kazakhstan has acquired independence, the main focus was to work on the creation of a favorable investment climate and with the positive dynamics of growth. Kazakhstan ranks first among the countries of Central Asia and one of the leaders of CIS countries to provide the most favorable conditions for investment activities.

Doing business 2014 IndicatorRank property registration 18 Obtaining a building permit 145 Simplification of procedures for the payment of taxes 13 Protecting Investors 22 Starting a Business 47 closing a business 48 Country Ease of Doing Business Rank Singapore1 USA4 Switzerland2929 UAE23 Kazakhstan77 Czech Republic75 China9696 Russia95 Ukraine112

Why Astana? (Big Five) 1.Favorable investment climate in the country 2.Customs union with Russia and Belarus 3.The dynamic growth of the city's economy 4.The special economic zone "Astana-New City“ 5.Service support for investors

Indicators of Astana  Gross regional product (GRP) of the capital has grown by24 times since 2000 (21,3 billion US dollars).  GRP in per capita – by 14,5 times ($26,8 thousand per person).  Since 2008 trade participation in GRP has grown from 20% to 25,6%  Investments in fixed assets in 2013 amounted to 3.6 billion US dollars.  Average monthly income in 2014 amounted to 940 dollars thousand people

Samara Ufa Yekaterinburg Omsk Novosibirsk Astana Chelyabinsk Ability to serve cities with population over 1 million people from Astana  The total volume of GDP- 2.7 trillion USD  Total population MM people

Worldwide investors in Astana

Priority areas for investors Industrial production Business in construction Field of PPP High technology sector

State Program of Forced Industrial-Innovative Development of Kazakhstan  Investor 2020  Business Road Map 2020  Productivity 2020  Export 2020 Investment preferences :  Exemption from customs duties  Tax breaks for 10 years  industrial benefits  Government land grants  long-term contract  Government concession liabilities are not subject to sequestration  Providing the land for the term of the concession on the terms of land use  The possibility of government support measures and sources of reimbursement to the concessionaire by the state (charge for the availability)  Recourse to international arbitration

Special economic zone “Astana – new city” Total area: 7634, 71 ha. SEZ “Astana – new city” Industrial park №1 Industrial park №2 Area: 6603, 51 ha. Area: 598, 1 ha.Area: 433, 1 ha.

Preferences in the territory of the new business and administrative center

Preferential treatment of the Industrial Park Priority activitiesPrivilegeRate 1)production of other nonmetallic mineral products; 2)production of machinery and equipment; 3)production of household electric appliances; 4)production of rubber and plastic products; 5)chemical industry; 6)metallurgic industry; 7)production of electric equipment, including electric lighting equipment; 8)production of glass components for lighting equipment; 9)food production; 10)production of wood mass and cellulose, paper and carton; 11)production of furniture; 12)production of vehicles, trailers and semitrailers; 13)production of railroad locomotives and rolling stock; 14)production of avian- and spacecraft; 15)production of basic pharmaceutical products and equipment; 16)production of electronic parts. Exemption from customs collection at import of goods, materials and equipment, used in the process of construction 0% Decrease of calculated corporate income tax for 100% 0% Application of 0 rate at average annual cost of taxation objects at calculation of property tax 0% Application of 0% index to correspondent rates at calculation of land tax 0% Index 0 to correspondent rates at calculation of cost for land usage in term, stated in contract of temporary payable land usage (rent) but no more than 10 years from the date of provision of land plots to the right of temporary payable land use (rent ) * 0%

13 49 projects worth $ 1.18 billion. USD  17 under construction  19 running  6, at the design stage  7 at the stage of registration of land According to the degree of readiness by industry

Successfully implemented projects at the Industrial Park General Electric (USA) Production of diesel locomotives Investment in the project: 117mln. USD Number of employees: ALSTOM (France) Production of electric locomotives Investment in the project: 61 million USD Number of employees: 65 “Eurocopter Kazakhstan Engineering” helicopter production, on the basis of the Framework Agreement between “NK Kazakhstan Engineering” JSC and EUROCOPTER (France / Germany), as of October 27, Talgo (Spain) Production of train coaches Project investments: US$58 mln. Number of employees: 131

Service support for investors Full support of investors in pre- investment, active and post- investment stages (“one-stop one-shop” principle) Service support (consultancy in preparing a feasibility study, Business - plan and others.) Carrying out investment activitiesPromotion of brand Astana abroad

JSC “Astana Innovations” is the operator of the project of “SMART Astana” SMART ASTANA - IS TO ENSURE A HIGH QUALITY OF LIFE THROUGH THE USE OF NEW TECHNOLOGIES AND COST - EFFECTIVE, ENVIRONMENTALLY FRIENDLY USE OF URBAN SYSTEMS OF LIFE, PROVIDING A PLATFORM FOR INNOVATION IN THE CAPITAL. Our proposed development goal: a comfortable, efficient, competitive city and “smart” way of life for residents and guests of Astana, the effective management of the city Priority areas for development within the SMART ASTANA Education: 80% increase in the level of satisfaction of parents, students, employers, taking into account the quality of education Healthcare: 100% - the share of health care organizations that are connected to a single network health Ecology: 30% reduction in pollution Tourism: 20% increase in inbound tourism Culture: 80% - the degree of customer satisfaction with quality of services sphere of culture

Astana ЕХPO – 2017 «Future – energy» Expected number of visitors MM visitors; Duration of the exhibition - 3 months; It will bring together 100 countries and about 10 international organizations; Holding such a big event is the new big impetus to small and medium size businesses.

Concessionary projects of Astana projectsExpected investment Construction and operation of 2-autoparkings~ 25 MM USD per parking Construction and operation of 2 bus stations~ 28 MM USD per station Construction and operation of the complex of 4 kindergartens ~ 4 MM USD per kindergarten Construction and operation of the urban clinics~ 6 MM USD for each clinic Construction and operation of 3 outpatient clinics~ 5 MM USD for one ambulance

P rojects by the scheme of public - private partnership in the field of transportation infrastructure of Astana city

Construction and operation of two parking lots Purpose and idea of the project: reduction of the deficit of parking spaces and improvement the quality of services to provide parking spaces in the administrative center of the capital Applicant: Department of passenger transport and highways of Astana city Period of concession: Capacity: parking spaces in each section of parking Investments during the construction: 11,5 to 13,1 million USD for each parking lot Estimated types and amount of state support: compensation for investment costs at ~ 100% of the cost of construction during the 12 years Current status: All the documents have been prepared. Competition procedures are in the process.

Construction and operation of two bus stations The Purpose and Idea of ​​ the project: is to improve the quality of services on international and long-distance transportation for the population of the capital Applicant: Department of passenger transportation and highways in Astana Concession period: Capacity: passengers per day Investments during the construction: from 28 million to 32,5 million USD for each bus station Estimated types and amount of state support: compensation for investment costs at ~ 100% of the cost of construction during the 11 years Current status: All the documents have been prepared. Competition procedures are in the process.

Projects of public – private partnership in the field of education in the city of Astana Projects of public – private partnership in the field of education in the city of Astana

Construction and operation of 4 kindergartens The purpose and idea of ​​ the project: reduction of demand for kindergartens in the capital of Kazakhstan Applicant: Department of Education of Astana city Implementation Period: Capacity: 240 seats in each kindergarten Investments during the construction: ~ 16 million USD for each kindergarten Current Status: under the development of the financial model of the project

Projects of public - private partnership in the field of health service in Astana Projects of public - private partnership in the field of health service in Astana

Construction and operation of ambulances and of three outpatient clinics in Astana Purpose of Project: Development of primary health care and maintenance of the population with high-tech medical care and improvement of public health Applicant: Department of Health Service of Astana city Concession Period: Investments during the construction – 5,4- 6,2 million USD Estimated types and amount of state support: - Compensation of 100% of the investment costs for the construction of the object - reward for management of implementation Capacity to 250 visits per shift 10 to 40 thousand population will be served. Method of financing Med. Services will be paid by government (every month $ 4.5 per person) Current Status: under the development of the financial model of the project

Republic of Kazakhstan , Astana city, 13 Dostyk St. Tel. + 7 (7172) Tel. + 7 (7172)