Astana Development

Astana, the City of Dynamic Development

The prime goal of Astana’s development till 2014 is to increase living standards built on sustainable social and economic development. To meet this goal, several objectives had been set up. Such objectives include further development of the Industrial Park; implementation of investment projects; strengthening of the roles of small and medium businesses in the municipal economy through development of public-private partnerships and fairs and exhibitions; further development of the national housing programme; inflation reduction; streamlining of the educational system; improvement of health care services as part of further development of academic and medical clusters; measures to promote greater interaction with employers, trade unions and non-government organizations to prevent unreasonable personnel reduction, quasi-unemployment and to take joint measures to provide social support to the laid-off.

The population of Astana is 743,000 people.

1. Industry

Astana’s industrial sector is primarily presented by processing businesses (77.8%) and electricity/gas/steam supply and air conditioning companies (17.9%). Goods, works and services related to water supply, sewage systems and waste management take 4.3%.

Since the beginning of the year, Astana manufacturers have provided goods and industrial services for the total amount of KZT 69,824.1 million; the quantum index has come to 92.2% as compared to the 2011 relevant period.

Astana’s processing industry has provided goods, works and services for the total amount of KZT 54,325.2 million, the quantum index is reported to be 91.1%.

Machinery building holds the biggest share in the processing industry (50.4%)/ Machinery building plants have manufactured goods for the total amount of KZT 27,361.7 million.

Apart from machinery and equipment, plants have manufactured ready-made metal products totalling KZT 2,782.3 million.

The following industries report growing manufacturing volumes:
- metallurgy – by 68.9%;
- furniture industry – by 20.6%;
- manufacturing of rubber and plastic goods – by 12.7%; and
- manufacturing of other non-metallic mineral goods – by 0.4%.

The total volume of other non-metallic mineral products amounts to KZT 10,044 million, the quantum index is 100.4%.

Manufacturers have produced rubber and plastic goods for the total amount of KZT 5,829.9 million, the quantum index is 112.7%. Pipe manufacturing has grown by 27.8% and door manufacturing by 34.3%.

The metallurgic industry have produced goods for the total amount of KZT 147.1 million, which is by 68.9% more than that of the 2011 relevant period. More components of prefabricated assemblies are produced – by 21.3%. However, there is a decrease in manufacturing of concrete by 2.8%, tiles and bricks by 6.6%, and muds by 35.7%.

As part of the RK Programme of Accelerated Industrial and Innovative Develop-ment for 2010-14, 14 projects totalling KZT 350.7 billion are underway in line with the Regional Industrialization Map. In addition, two projects were completed in 2010 (Reinforced Concrete Structures Plant run by ABK Maksat and Sandwich Panel Plant run by Krovlya NS Ltd.); Stage 1 of the StalTsink Hardware Plant was commissioned in the first half of 2011 (the aggregate manufacturing volume is worth KZT 1.4 billion, 46 new jobs were created); a plant to manufacture Talgo railroad passenger cars (Tulpar Talgo JV) was commissioned on 9 December 2011 (within the area of the Industrial Park); and a project to produce and process fruit and vegetables was launched in December 2011 (Astana Eco Standard). In total, those projects are worth KZT 15.3 billion and around 600 new jobs are created. The remaining nine projects are to be implemented by 2014.

Electricity/gas/steam supply and air conditioning companies have pro-vided goods and industrial services for the total amount of KZT 12,508.3 million (the quantum index is 101.3%), including generation, transmission and distribution of electric power for KZT 7,549.7 million (the quantum index is 100%), production and distribution of gaseous fuel for KZT 84.3 million (the quantum index is 107.0%), steam supply and air conditioning services for KZT 4,874.3 million (the quantum index is 104.4%).

Water supply, sewage and waste management companies have provided goods and industrial services for the total amount of KZT 2,990.6 million with the quantum index of 83.8% versus 2011.

In order to upgrade the quality of goods, the City Akimat is taking measures to increase competitiveness of manufacturers and encourage manufacturers to get certified for international quality standards like ISO, OHSAS, SA, HACCP (IQS).

The municipal authorities monitor the introduction of quality management systems by entities as required by IQS. In the first half of 2012, there were 515 enterprises and organizations. It is important to note that not only manufacturers but also trade and service companies strive to adopt international quality standards.

To sell local manufacturers’ goods, the City organizes various events for Astana companies, including international cooperation events. These are business forums, exhibitions, roundtables, presentations and meetings, where delegates of other countries participate too, which promotes developing of bilateral relationships.

NATIONAL ECONOMY

2. Transport

Road building. Today, the city has 652 driveways and public streets with total length of 749 km, including speedways (53.1 km), main municipal streets of regulated traffic (128 km), main regional streets (186 km), and local driveways and streets (435 km).

As part of the transport infrastructure development, the municipal authorities are building, repairing and repaving the roads. This year, the municipal authorities are expected to build and reconstruct 118.1 km of roads and to launch a new project to build Small Ring Road and West Semi-Ring Road (15.7 km).

3. Investment

Total capital investment for the period under review has amounted to KZT 197,724.7 million, which is 1.5 more than that of the relative period in 2011. Astana takes 12.8% (8.9% last year) in the aggregate national capital investment.

In January-May 2012, the major sources of capital investment were funds allocated by business entities, organizations and population for the total amount of KZT 150,843.4 million or 76.3% of total investment. The budget allocated 17.2% and loan capital amounts to 5.7%.

Capital Investment Sources

Capital investment is primarily made in machinery, equipment, tools and accessories. The construction industry takes 37.5% of investment.

In the period under review, Astana legal entities and individuals have built and commissioned 473,393 sq. m. of housing (of which 355,950 sq. m. of living space), which is by 0.1% more than that of the relevant period in 2011. The biggest portion of housing was commissioned by private entities and individuals.

Since the launching of the national housing programme for 2005/07, 4,668 flats of the total area of 349,000 sq. m. have been commissioned; 4,098 flats of the total area of 179,200 sq. m. have been commissioned for 2008/10.

Totally, KZT 15,082.6 million have been allocated for housing construction, which is equal to 58.3% of the amount allocated in January-May 2011.

4. Trade and Foreign Trade Turnover

Home Trade
The retail sales volume with all sales channels has totalled KZT 158,518.9 million as of 1 June 2012 and grown by 15.2% versus the 2011 relevant period in comparable prices. Small businesses have sold goods and services for KZT 48,054.4 million, which is equal to 44.8% of the total sales volume. The retail sales volume by medium and large businesses has amounted to KZT 59,350.9 million.

Foreign Trade
Foreign Trade Turnover. The City successfully develops trade cooperation with the CIS and other countries.

The overview of the foreign trade turnover development demonstrates that in January-April 2012 it has totalled US$ 2,938.5 million and grown by 1.3 to that of the 2011 relevant period.

Key Foreign Trade Indices, Astana

Exports in January-April 2012 have come to US$ 2,432.5 million and grown by 1.3 versus the 2011 relevant period.

The Astana exports have a clear geographical focus – 92% of total exports go to foreign countries other than the CIS and 8% go to the CIS. Major consumers are Romania (33.3%), Italy (31.2%), China (2.3%), the Netherlands (6.3%), Finland (3.2%), and France (2.6%).

In January-April 2012, the export volumes of key export components have grown as compared to the 2011 relevant period - the sales volumes of mineral fuel and derived products (oil products and gas) have increased by 1.1.

In January-April 2012, imports have totalled US$ 506 million and grown by 46.8% versus the 2011 relevant period.

The foreign countries other than the CIS countries supply 87.7% of total imports and the CIS countries 12.3%.

The key import components are machinery, equipment, motor transport, devices and gears. In January-April 2012, the said categories have amounted to US$ 261.5 million.

5. Small Business Monitoring

As of 1 June 2012, there are 49,312 small businesses in Astana. This number has grown by 33.3 as compared to the 2011 relevant period. 118,100 people are employed, which is by 9.7% more than in 2011.

Small businesses have provided goods, works and services for the total amount of KZT 141,960 million, which is equal to 101.1% of the 2011 level.

To support small and medium businesses, the City Akimat takes relevant measures, including the 2020 Business Roadmap Programme.

The Regional Coordination Council for Astana Accelerated Industrial Development has reviewed 17 projects totalling KZT 6.1 billion to subsidize an interest rate and three projects for the total amount of KZT 100.3 million to develop manufacturing infrastructure.