GOVERNMENT Weekly Review: Time of discussions is over, necessary to move forward - K.Massimov

ASTANA. April 17. KAZINFORM /Muratbek Makulbekov/ Destabilization of the domestic political situation in Kyrgyzstan with riots was added to the problems which require heightened attention of the Government - flood in the Kyzylagash village and East Kazakhstan region, sowing season. Kazakh Prime Minister Karim Massimov has said it at the Government's telephone conference on Monday, April 12.

photo: QAZINFORM

Karim Massimov charged First Vice Prime Minister Umirzak Shukeyev to familiarize with the situation on the border with Kyrgyzstan. He emphasized that operations on strengthening borders, which were started in the connection with the Customs Union establishment, should be accelerated.

The Premier gave instruction on financing increase for the Kyzylagash village rehabilitation. Hence Almaty oblast Governor Serik Umbetov asked the Government to allocate additional KZT 4.7 bln to existing KZT 3.1 bln.

As Governor of East Kazakhstan region Berdybek Saparbayev reported, the situation in the oblast is gradually returning to normal. U.Shukeyev reminded that soon there will begin rapid snow melting, which means retaining the flooding threat of settlements.

Vice Minister of Oil and Gas Asset Magauov reported that construction of a petrochemical complex in Atyrau will be started in February, 2011. It is planned to produce polypropylene and polyethylene. Construction of the first phase of the Beineu-Shymkent gas pipeline will be started in July, 2010. Vice Minister of Industry and New Technologies Berik Kamaliyev KZT 583 bln was utilized over 144 projects implemented within the Industrialization Map. Moreover, Berik Kamaliyev told about joint enterprise with participation of the Russian Company Soilers which is planned to be created in Karaganda. This plant will produce Suzuki automobiles of the Japanese company.

As Vice Minister of Industry and New Technologies Albert Rau informed, the Industrialization Map of Kazakhstan for 2010-2014 includes 236 projects amounting to KZT 7.2 trln. The Map divided into the national one, which will be approved by the Government's resolution, and regional, which will be approved by governors. The national map includes 97 projects amounting to KZT 6.6 trln, and regional - 139 projects amounting to KZT 580 bln.

On Monday the Council on Economic Policy under the Government of Kazakhstan has held a session chaired by Prime Minister Karim Massimov. Members of the Council discussed the draft State Program of Development of Education in Kazakhstan for 2011-2020 that is worked out under the commission of the Head of the State taking into account the goals of post-crisis development of the country. Besides, draft Law "On amendments to some legislative acts of Kazakhstan on introduction of criminal corporate liability" was considered as well. Upon the discussion K.Massimov charged to finalize the documents taking into account comments and suggestions.

On Tuesday the issues of realization of the State Program of Forced Industrial and Innovative Development of the country for 2010-2014 were considered at the session of the Kazakh Government.

The Government approved The Business Road Map-2020 program which was developed at the instruction of the Kazakh President. As Minister of Economic Development and Trade Zhanar Aitzhanova noted, KZT 30 bln is foreseen from the national budget for the program implementation this year. The program will consist of three directions - assistance to new business initiatives, improvement of the business sector and support of export-oriented productions. Next year the program's financing will be increased.

Summing up results of the Program discussion, the Premier noted that in the course of the Business Road Map implementation entering adjustments into it could be.

"At some point it is necessary to drop any discussions, make decisions and move forward - now such moment has come. If new problems appear, we will discuss, take decisions and correct something, if it will be necessary", K.Massimov said.

In the course of the session Vice Minister of Industry and New Technologies Albert Rau informed that three more projects were included into the final list of the country's Industrialization Map. Currently there are 101 projects to the amount of KZT 6.8 trln in the Map.

The Prime Minister informed that the Single Coordinating Council was created between entrepreneurial organizations and the Government - a working body which can take operational decisions.

Besides, a working group on clarification of the situation on Customs Union to the country's businessmen was established. Alongside, the PM pointed out that the package of measures taken by the Government for maintaining business (subsidizing interest rates for businessmen, growth of domestic content, tax preferences, reform in law-enforcement system, removing barriers for business) in crisis period must stimulate Kazakhstani entrepreneurs and help them.

Head of the State Nursultan Nazarbayev took a decision to allocate 500 grants for study at the New University of Astana. Prime Minister Karim Massimov gave a corresponding instruction on allocation of funds and dormitory for the students by September 1, 2010

At the same day the Kazakh Prime Minister held a session on the issues of introduction of digital broadcasting. Introduction of the digital broadcasting is conditioned by the necessity of formation of modern informational and communicational area as one of the key dimensions of the Strategic Development Plan of Kazakhstan till 2020 and is implemented under the instruction of the Kazakh President. The Ministry of Communication and Information made a range of proposals on establishment of national broadcasting service provider and defining standards of digital terrestrial, cable, satellite and mobile broadcasting with essential technical and economic advantages. The Kazakh Premier approved the proposals and gave a range of instructions on introduction of the digital broadcasting and modernization of its contractual base.

On Wednesday, April 14, Prime Minister of Kazakhstan Karim Massimov has held a telephone conference of the steering committee for preparation and holding the celebration of the 20th anniversary of Kazakhstan's Independence.

On April 15 the Prime Minister met with Israeli Minister of Industry, Trade and Labor Binyamin Ben-Eliezer. The Kazakh Premier emphasized that the implementation of the State Program on Forced Industrial and Innovative Development as well as the Customs Union market capacity significantly broaden the potential of Kazakh-Israeli trade-economic and investment interaction. B. Ben-Eliezer, in his turn, noted that Israeli companies were interested in investing in Kazakh economy and developing cooperation in the fields of agro-industrial complex, energy, machinery and etc.

Kazakh Prime Minister Karim Massimov held a meeting with Turkish State Minister Zafer Caglayan. There were discussed the issues of economic cooperation between the two states in the connection with the growing investment potential of Kazakhstan due to realization of the Kazakhstan Strategic Development Plan till 2020 as well as the advantages of sales of goods produced in Kazakhstan on the territories of Customs Union member states and the State Program of Forced Industrial and Innovative Program.

The Kazakh Prime Minister met with French delegation headed by President of the Committee of Finance of the French Senate Jean Arthuis. K.Massimov informed the French Senators of the measures taken by the Kazakh Government on stabilization of the economy in 2007-2009 and its development during the post-crisis period. He also said that the Kazakh Government keeps on the policy of creation of favorable business climate for investors.

The first quarter of 2010 demonstrates that Kazakhstan's economy maintains positive tendencies in 2010. The economy's growth made up about 5-6 percent.