Mangystau Governor’s Office ECONOMIC AND INVESTMENT POTENTIAL OF THE MANGYSTAU REGION OF THE REPUBLIC OF KAZAKHSTAN

2 I. General information about the region 1A. TRANSPORTATION NETWORK – AIRWAYS DESTINATIONS FROM THE AKTAU AIRPORT

3 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. I. General information about the region 2. AREA AND POPULATION 4

Gross Regional Product (GRP) per capita in 1 quarter 2012 (in U.S. dollars) Kazakhstan average = $2 429 I. General information about the region 3. GROSS REGIONAL PRODUCT AND POPULATION GROWTH GRP and population growth 5

CAPITAL INVESTMENT per capita, January-July 2012 (in U.S. dollars) I. General information about the region 4. CAPITAL INVESTMENT AND MANUFACTURING ACTIVITY 6 Mangystau region accounts for 13,6% of the country’s manufacturing activity MANUFACTURING ACTIVITY

I. General information about the region 5. GROWTH OF ENTREPRENEURIAL ACTIVITY Number of registered small businesses and % of population employed by the small businesses 7

IndustryCityBrief 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 8 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 8 II. Innovation-focused development 1. “SMART” REGION MANGYSTAU

«SMART» REGION 9 Coastline infrastructure Utilities and engineering infrastructure Special economic zone “Seaport Aktau” Tourism Transportation infrastructure Oil and gas services 9 II. Innovation-focused development 2. 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 10

MAIN GOAL SHORT-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 11 III. Regional development priorities 2. OIL & GAS SERVICES

Large Customs Stations Republic of Kazakhstan Khorgos Seaport 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 12 III. Regional development priorities 3. TRANSPORTATION INFRASTRUCTURE

MAIN GOAL SHORT-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 13 III. Regional development priorities 4. 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 14 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 priorities 5. SPECIAL ECONOMIC ZONE “SEAPORT AKTAU”

MAIN GOAL SHORT-TERM AND IN-PROGRESS PROJECTS MID- AND LONG-TERM PROJECTS Improving the regional utility services 15 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 направления 6. UTILIES AND ENGINEERING INFRASTRUCTURE

IV. Expected results 16 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.