PAVLODAR REGION INVESTMENT CLIMATE

PAVLODAR REGION INVESTMENT CLIMATE

GENERAL CHARACTERISTIC OF REGION Territory: 124,8 thousand sq. km The population: 754,1 thousand The regional centre: Pavlodar city Total regional product in 2014 : 9,8 billion dollar ($13000 per capita) The region is northeast of Republic of Kazakhstan BORDERS: With the Russian Federation (Omsk and Novosibirsk regions, Altay territory) In the south - with the East Kazakhstan and Karaganda regions In the west - with Akmola and the North-Kazakhstan regions

TOTAL REGIONAL PRODUCT Volume of Gross regional product (GRP), billion US dollars Branch structure of GRP, % 11,6 9,8 1766,0 bln.t. 1751,0 bln.t. GRP per capita in 2014 13,0 thousand US dollars 6th place in Kazakhstan

NATURAL RESOURCES 142 deposits of the prevailing minerals brick and keramzit raw material, a building stone, sand, limestone, forming materials, salt, decorative stone 35 deposits of metal minerals and coal 107 deposits of the prevailing minerals Share of region in general republican stocks: Coal 35,7 % Nickel 16,0 % Gold 5,2 % Copper 3,7 % Lead 0,3 % Zinc 0,9 % Molybdenum 2,3 %

NATURAL RESOURCES 30 enterprises registered 107 deposits of common minerals 36 contracts concluded 60 free deposits There are 18 free deposits of firm minerals on the territory of region : 5 - deposits of coal; 13 - a deposit of nonferrous metals; On 13 deposits of firm minerals it is developed 6 deposits of stone and brown coal, 7 deposits of gold and nonferrous metals, investigation under 4 contracts is carried out. Kinds of the common minerals with the authorized stocks «Maikainzoloto» - complex gold - polymetallic deposits, «the Euroasian power corporation», «Bogatyr Komir», «Angrensor Energo» - a coal mining in limits of Ekibastuz pool, «Maikuben-West» - Shoptykol deposit, «Gamma» - Taldykol and Sarykol deposit, «Kazakhmys Bozshakol» LLP - Bozshakol and Bozchshekul copper deposits, «Fonet Ep-Tai Ak Mining» - Ayak- Kodzhan copper deposit etc. On development of social sphere Volume of investments To the budget of region On training of Kazakhstan personnel 11 mln.t 3,7 bln.t 607,7 mln.t 17,6 mln.t On development of social sphere Volume of investments To the budget of region On training of Kazakhstan personnel 52,2 mln.t 58,8 bln.t 11,2 bln.t 55,4 mln.t

INDUSTRIAL POTENTIAL REGION PRODUCES: 100% of alumina, aluminium and seamless pipes 65,4% of extracted coal of Kazakhstan 75,0% of ferroalloys 45,3% of electric power of Kazakhstan 43,0% of country s gasoline 863 industrial enterprises operates in region, including 15 - main enterprises 73,2 thousand person works at the industrial enterprises of region

FOREIGN TRADE TURNOVER The foreign trade turnover of the Pavlodar region in 2014 2,9 BILLION US DOLLARS IMPORT: EXPORT: The basic trading partners of region: Russia, Belarus 66% densities Netherlands 5,4 % Turkey 3,9% China 6,4% Germany 3,2%

SPECIAL ECONOMIC ZONE "PAVLODAR" SEZ territory - 3300 ha Period of validity of SEZ : 25 s The entered projects in 2013 - manufacture of caustic soda, chlorine, hypochlorite sodium and hydrochloric acid; - production of household chemicals; - production of disinfectants. Ведется строительство проектов -production of calcined petroleum coke; -manufacture of products from polyvinyl chloride, antifreeze, inhibitor of adjournment of mineral salts and systems of root-formations; -production of agrochemical output. Manufacture of chemical and petrochemical products Production of petrochemicals, as well as products of related allied industries Priority activities Customs and tax privileges Rendering of the state services in a principle of one window Investments to the projects 2013-2014 Today invested $220 million Expansion of directions of activity of SEZ "Pavlodar" will allow to generate high-grade cluster where production of the third and the fourth stage of processing with the high added cost will be issued Granting of ready for operation objects of industrial infrastructure $19 million allocated in 2014 from budget for SEZ infrastructure

INVESTMENT ACTIVITY IN REGION Total Investments Volume of investments: $1,3 billion for 2014 Foreign investments Densities of foreign investments in total amount of investments Manufacturing Industry Investment Sources Budgetary funds 17,8% Foreign means 41,9% Own means 40,3% 2014 23,7 % 2013 18,3 % 2012 11,6 % 2010 4,7 % 462,0 mln. US dollars 266,3 mln. US dollars 294,8 mln. US dollars 65,8 mln. US dollars

POTENTIAL MARKETS Omsk Novosibirsk Range of 1 000 km: 7 regions of Kazakhstan and 9 regions of Russia Population: 24 mln. Market size = 11,6 bln. USD, which is 2-3 times bigger than total annual market size of Kazakhstan Pavlodar Astana Highways Major cities of KAZ and RUS Equally distant territory from Pavlodar Almaty Range of 500 km: 4 regions of Kazakhstan and 3 regions of Russia Population: 11,2 mln. Market size = 4,7 bln. USD Major cities of Kazakhstan and Russia, incl. Astana, Omsk, Novosibirsk, are in a radius of 500km from Pavlodar

Projects Project The initiator Capacity Required investments 1 Production Of Medium And Large Casting For Wagons Machinery and Electric devices «Format Mach Company» LLP 3 thousand tons a $40 000 000 2 Production Of Aluminum Cases For Lighting Devices «SVET» LLP 1000 lamps a $1 000 000 3 Production Of The Specialized Engineering And The Agricultural Equipment «JV Kairat VS Baolong» LLP 1000 agricultural machineries a $1 100 000 4 Wind Power Plant In Pavlodar Region Ekibastuz Technical institute of a name of academician K.Satpaev 5 The Interactive Information Module With Contactless Management On A Speciality «Metallurgy Black And Nonferrous Metals» 45 MWt (140 million kw/hour) $57 400 000 LLP «TKR GROUP» 84 modules a $ 260 000 Mining and Extracting 1 Extraction And Deep Processing Of Limestone «KEREMET ASIA» LLP 12 million tons of limestone a $4 870 000 11

Projects Chemicals 1 Development Of Technological Lines For Sorting And Deep Recycling Of Solid Municipal Waste «Ob edinennye khimicheskie tehnologii» LLP 50 thousand tons a $ 260 000 2 Production Of Polyaluminium Chloride «Khimproduct» LLP 10 thousand tons a $17 400 000 3 Production Of Iron (III) Chrolide «Khimicheskaya compania ERTIS» LLP 10 thousand tons a $7 000 000 4 Recycling And Production Fertilizer On The Basis Of Bioconversion Of Organic Waste Products «Koprolit» LLP manufacture of organic fertilizer up to 500 thousand tons a $ 75 000 5 Development Of Production For Complex Processing Of Ashes From Burning Coal And Producing High-Quality Industrial Products L.Dmitriev 100 thousand tons of ashes a $50 000 000 6 Mini-Factory For Heat - Isolated From Waste Products Of Power And Metallurgy LLP «IPC ASIA - STREAMER» Heaters of various kinds $ 100 000 Metallurgy 1 Production Of Welded Steel Pipes (With Diameter Of 270-630 Mm) «Pavlodar pipe-rolling plant» LLP 300 thousand tons a $22 000 000 12

Projects Trade, Recreation, Construction and Building materials 1 Production Of Concrete Products With Natural Stone Surfaces «Snezhnyi bars» individual businessman 18 thousand products a 2 Reconstruction/Expansion Of A Shopping center «Isanova» individual businessman rent of the premises by the area of 2,5 thousand m ² $ 350 000 $9 260 000 3 Construction Of Sports And Recreation Center With Aqua park «Promotekh» LLP ability of accommodation up to 300-400 person a day 4 Construction Of An Hotel and Recreational Complex «Emir Eit» LLP 18-40 lux numbers 1,5 thousand m ² 5 Boiler-House Construction Toleukhan Muzdybaev 180 Gcals/hour, annual 531,920 thousand Gcals 6 Factory For Building Materials Municipality of Aksu structures for all window and a stained-glass window systems 7 Production Of Fire-Resistant Materials And Acid-Resistant Bricks «Kemertuz-18» LLP general capacity of 35,4 thousand tons and more a 8 Class "A" Logistical Center Construction Municipality of Aksu service more than 36 autowaggons and 18 cars lumpsum $2 500 000 $1 500 000 $ 85 000 000 $ 15 000 000 $ 5 900 000 $ 14 800 000 9 Transportation And Logistics Terminal «NORD TRANS PV» LLP 520 thousand tons a $ 7 500 000 10 Production Of A Ceramic Brick, Development Of Brick Clay Deposit «Kaliev» individual businessman 75 thousand bricks a $ 180 000 13

Projects Agriculture and Food Processing 1 Innovative Livestock-Breeding Facility «Plamya» LLP Complex on 200 heads of cattle a $430 000 2 Livestock Breeding Facility For Dairy, Meat, And Dairy- Meat Products; And Construction Of A Greenhouse For Cultivating Vegetables «NoMad» Farm 73 tons of meat, 250 tons of milk $4 500 000 3 Fruit And Berries Garden «Dendra» LLP 500 tons a $ 1 200 000 4 Greenhouse Complex «Aksu Hothouse complex» LLP 1 800 tons of a crop a $ 9 300 000 5 "Vybor" Food Processing Factory Reconstruction In Aksu Aksu food stuffs "Vybor" combine 730 tons a $ 740 000 LLP 6 Pig Complex Construction «Aruzhan» LLP 2300 tons a $ 7 000 640 7 Kalkaman Elevator Reconstruction «Shymkent may» JSC warehousing of 20-30 thousand tons of a grain $ 2 590 000 8 Production Of Tinned Vegetables «Mysl» Farm 30 000 tons a $ 50 000 9 Breeding Ostriches «К&C» individual businessman 50 heads a $135 000 10 Dairy-Trading Farm And Livestock Feeding Area «RASSVET» Farm LLP 600 heads 1 200 000 tons meat a 11 Dairy Farm «Altyndy-PV Farm» LLP capacity of 8 760 tons of milk a $11 300 000 $ 11 500 000 12 Vegetable Storehouse «Tulekov» Farm capacity up to 4 thousand $1 000 000 tons 13 Construction Of A Vegetable Storage For 3 000 Tons «Bostekbaev» Farm 3000 tons a $765 000 14

THANK YOU FOR ATTENTION! For details please contact Department of industrial and innovative development Municipality of Pavlodar region Pavlodar city, tel. +77182 650593, email: kense.uir@pavlodar.gov.kz www.innovations.pavlodar.gov.kz