1. Invest in Almaty

2. Almaty Development Center
Almaty City
Population: More than 1.6 million people Currency: Kazakh Tenge (KZT) Territory: 683,5 sq.km. Height above sea level: m. Climate: sharp - continental Time zone: GMT+06:00 Postal code: Area code: 727
website:
The President of the Republic of Kazakhstan in his 2014 the State of the Nation Address sets a clear task to improve the investment climate and scale up attraction of investments for –industrial-innovative development.
In pursuance of the President’s order, the Government of the Republic of Kazakhstan has developed a package of legislative initiatives to create incentives for investment in Kazakhstan.
Implementation of development investment programs gains particular importance in the regions at the local level.
Almaty is the southern capital of Kazakhstan and plays an important role for attracting investments to Kazakhstan as a major financial, logistics, commercial and cultural centre.
Almaty Development Center

3. Social-economic figures of Almaty City
Almaty Development Centre

4. Legal framework for investors
Law on Investments
Cover up to 30% of «Investment subsidy»
Exemption from corporate tax and property tax
Natural Grants
Exemption from customs duties
(2) Law on Concessions
Payment for accessibility of the object of concession
Partial compensation of the investment costs
Partial compensation of operation and maintenance costs
(3) Law on Special economic zones in the Republic of Kazakhstan
Visa support of foreign nationals
(4) State support program of industrial and innovative activities
Reimbursement of auditing expenses
Subsidizing of bank interest rate
State guarantees for commercial loans
(5) Law on Project financing.
Securitization support on Stock Exchange
Almaty Development Center

5. Almaty Development Centre
Why invest in Almaty
According to GFCI (Global Financial Centers Index) rankings for 2014 Almaty city held 43th place. GFCI rating includes assessment of business environment, development of financial sector, infrastructure, human capital and the city reputation.
Introduction of simplified entry to Almaty in visa-free regime for the citizens of 10 countries: Great Britain, Germany, Italy, Malaysia, the Netherlands, UAE, Republic of Korea, USA, France and Japan.
Almaty City will host the International Universiade in 2017.
Gross Regional Product and positive budget fiscal position suggests growing conditions for future capital investment in Almaty.
Almaty Development Centre

6. GLOBAL FINANCIAL CENTER INDEX
According to GFCI (Global Financial Centers Index) rankings Almaty city Ranking rose from 58th to 49th place. GFCI rating includes assessment of business environment, development of financial sector, infrastructure, human capital and the city reputation.
Almaty Development Centre

7. Almaty Development Centre
Points of Growth
Industrial zone in Alatau district – industrial territory designated for development of production capacities for: food processing, light industries, engineering, construction and pharmaceutical industries.
Free economic zone «Park of innovative technologies» was created for technological development in the following spheres: information technologies and telecommunications; electronics and renewable sources of energy.
Development of international alpine tourism in the suburbs of Almaty Estimated revenue from the tourists of alpine cluster may be $3 billion per year. Within the range of 40 km from Almaty there are several winter sport resorts, such as: Shymbulak, Kokzhailau, Akbulak, Turgen, Almatau, Kaskelen , Almarasan, Ushkonyr.
Transport infrastructure development Local authorities have ambitious plans for the development of the city infrastructure including: new airport, subway, the light rail transport, paid highway BAKAD, Almaty-Kapchagai highway.
Almaty Development Centre

8. Official mandate of Almaty Development Centre
JSC «Almaty Development Centre» (ADC) was established in 2008 by Almaty Municipal Authorities as a Regional Development Institution. «ADC» mission: Assistance to Municipal Authorities in strategic development of social, economic and cultural infrastructure of Almaty city. According to its Charter and Local Authorities Mandate «ADC» was authorized to implement following functions:
Origination and structuring :
Of Municipal investment
projects:
Public financial support to private investment projects on risk sharing basis
Regional Private Public Partnership Development
Financial advisory services and acting as PIU for Municipal PPP projects.
Economic Expertise and Consulting Services
Expertise of Municipal investments in form of budget lending and direct equity investment
“ONE STOP” INVESTOR SERVICES CENTER
Informational support to potential investors and implementation of Government Support instruments
Almaty Development Center

9. Investor Services Centre
JSC «Almaty Development Center» is authorized as Investor Services Center by Almaty Municipal decree №4/1133 in December 2013.
Investor Services Centre includes follow official functions:
Informational support for potential investors
Risk sharing project structuring based on Public-private partnership legislation
Promotion and implementation of Government Support
Consulting services (development of feasibility studies and business plans for investors)
Database management of perspective and existing investment projects in Almaty
Event management for investors in Almaty
Almaty Development Center

10. Almaty Development Centre
City Projects
Video fixation system of traffic violations. Project volume: 1bln. KZT
Light Rail Tramway building, Concession volume: $500 mln
Private bus fleet modernization, loan facilities for 400 new buses
Electronic ticketing in public transport
Municipal sport playground management. Project volume: $
New Municipal waste mechanical and biological treatment plant construction
Ski Resort Kokzhailau
Toll roads of Almaty, incl. BAKAD
Almaty Development Centre

11. Construction and Operation of Almaty LRT (Light Rail Transit)
Project construction of LRT (Light Rail Transit) on concessional terms. EBRD is ready to provide a loan to a potential concessionaire, Akimat will participate in co- financing of the project.
The main characteristics of the project:            
Operational length of LRT line is 22,9 km, number of rolling stock 31 vehicles, new depot in Alatausky District
Forecasted passenger load, 1st year of operation – 23 mln people.
Total Project cost (estimated) – about 525 mln. US Dollars, Akimat expenses – 108 mln. US Dollars.
Period of implementation (preliminary estimate):
– preparatory phase
– construction phase.
Current status:
The development of tender documentation for tender for the selection of the concessionaire.
Almaty Development Centre

12. Waste Management in Almaty
The project envisages construction of a plant mechanical-biological waste management, as well as sanitary landfill in Ili district of Almaty region.
The main characteristics of the project:
Recycling of urban more: 300K tons per year;
Recycling of sludge sewage treatment facilities: 360K tons per year;
Planned electricity generation - 5 MW per hour;
Forecasted revenues from implementation of "green" electricity: 4.7 million. US dollars per year;
The total cost of the project (estimated) million US dollars
Terms of project implementation (preliminary estimate):
the preparatory phase;
– the construction phase;
Current status: The feasibility study has been completed to select the option of the project implementation
Almaty Development Centre

13. Development of public transportation of Almaty
Since 2010 Almaty city Administration actively works on upgrading city’s passenger transportation by implementation of the environmentally friendly transport:
600 buses which are working on compressed natural gas (CNG);
195 modern trolleybuses
40 % of the 1500 buses of Almaty are CNG working buses.
Plans for 2015:
Creating possibilities for private operators purchasing from 200 to 400 low-floors, 12 meters length buses which are works on CNG.
Estimated cost for 1 bus: 140 – 160 thousand US dollars.
Total cost (estimated): mln.US dollars.
Almaty Development Centre

14. Ski Resort «Kokzhailau»
Construction of the year-round ski resort including the passenger cableways and chairlifts, as well as connection of utility networks to the main facilities of the resort.
The total amount of the state investments is estimated at $ and private investments around $
Place of implementation : Almaty, Kokzhailau mountain area
Period of implementation:
Created jobs: Up to 5,000 people
Almaty Development Center 14
Almaty Development Centre

15. Almaty Development Centre
Islamic finance
Kazakhstan was the first country in CIS that introduced Islamic finance legislation
Almaty city positioning as a regional financial center for Islamic Finance
«Almaty Development Center» in cooperation with «Islamic Development Bank» and «Islamic Corporation for Development of the Private Sector» are searching for perspective projects in Almaty like:
Building of Islamic Finance Tower
Halal meat production hub
Almaty Development Centre

16. Big Almaty Ring Road - «BAKAD»
BAKAD is high priority project under personal control of the President.
BAKAD is part of Big Transport Route «West China – West Europe».
Length of road – 65.4 km (4/6 road lines)
Estimated capital expenses of the project amount $740 mln.
Project Time Duration – 30 years
Building period - 3 – 4,5 years
Contract structure – BTO concession «Build – Transfer – Operate»
Almaty Development Centre

17. Almaty Development Centre
EXPO 2017
Kazakhstan is hosting «Expo 2017» exhibition of innovative, information and industrial technologies.
Almaty city, as Part of Expo 2017, is preparing to implement a project portfolio to focus on green energy solutions.
Local Authorities with the support of EBRD have created subsidiary as an operator for green energy projects with estimated value of $35 mln.
Almaty Development Centre

18. Thank you! Almaty Akimat official web-site
Almaty Development Center contacts:
Office 432, 85 Dostyk Ave., Almaty
Tel , -79, -80
Almaty Development Center 18
Almaty Development Centre