GOVERNMENT WEEK. Industrialization of economy - the nearest national goal. Business community to ensure successful industrialization

At the beginning of this week Prime Minister Karim Massimov went on regional trips to verify the implementation of this task on the ground. The PM started his trip with a survey of major ventures of the town of Ekibastuz. At Vostochny coal-strip mine operated by EuroAsia Energy Corporation JSC the PM was informed of the increasing volumes of fuel output. Last year the Company produced 19.8 mln tons of coal, 107.3% growth was observed. Alongside, particular attention is paid to the technological re-equipment of the enterprise. The PM surveyed a new excavator and a large dump truck acquired recently.The investments in the basic capital of the EEC in 2008 comprised KZT 30.5 bln. The Head of the Government also took part in launching of a turbine at the Ekibastuz Thermal Power Station ? the oldest one in Pavlodar oblast built in the 50s. Two energy blocks are to be established here in the nearest future. Here the Prime Minister and his delegation familiarized themselves with a new general plan of Ekibastuz, the prospect of the region?s development. K. Massimov charged the local authorities to include construction of a green house complex in the plan for providing the population with fresh vegetables in winter. The Prime Minister also visited Taman LLP specializing in capital, roundhouse and plant repair of the railway cars. Annually the venture repairs around 4 000 cars and 10 thousand wheel pairs. K. Massimov laid a memorable capsule to the foundation of a new plant. By 2011 the LLP plans to launch production on railway cars manufacturing. The capacity of the production will comprise 2.5 thousand freight cars per year. The cost of the project is KZT 6 bln. 370 new working places are planned to be created within the project?s realization. In Aksu town the PM visited Ferroalloys Plant which is one of the leading metallurgic enterprises in the world producing chrome, silicone and manganese alloys with the capacity of 1.2 million tons per year. The Prime Minister launched an electric melting furnace on ferrochrome production. After the capital repair the 6th workshop was equipped with modern dry and wet filters retaining 99.9% of emissions.PM K. Massimov also surveyed an agglomeration workshop with the capacity of 350 thousand tons per year. New automated production will be launched at the beginning of 2010. It is environmentally safe. Karim Massimov also visited new brick factory constructed by ?HAGI-Pavlodar? LLC. The automated factory with the capacity of 70 million backing and front ceramic bricks per year was created by the German technology. The cost of the project is KZT 600 million. Afterwards, the Prime Minister visited one of the national breakthrough projects - enterprise on production of chlorine and caustic soda with the capacity of 30 thousand tons of caustic soda, 26.6 thousand tons of liquid chlorine, 45 thousand tons of hydrogen chloride and 6.6 thousand tons of sodium hypochloride per year. Mr. Massimov took part in laying of the foundation for new electrolyzer. The project?s cost is USD 108 million. It will allow creating 420 new jobs. The Premier also visited the metallurgic plant ?KSP Steel? LLC that produces seamless pipes for Kazakhstan oil companies. The plant will soon launch a rail mill production with the capacity of 100 thousand tons a year. Equipment for the new production will be supplied by the Italian firm Danieli through Samruk-Kazyna National Welfare Fund. In Karaganda region PM K. Massimov took part in the opening ceremony of the new electric power substation constructed by KEGOK company in the Agadyr village of the Shet district of Karaganda oblast. ?It is known that one of the seven directions of Kazakhstan?s industrial development stated by the President at the XII Congress of Nur Otan is energy. Construction of the ?North-South?second power line is among major projects of the country. And the main link of this line is the 500 kV Agadyr substation?, the akimat press service notes. 386 km long power lines of 500 kV were constructed in region. For the first time in Kazakhstan and CIS countries controlled three-phase shunt reactors were installed. Owing to this object, the entire southern region will be fully provided with electricity, and electrical power supply to Karaganda oblast will stabilize. Prime Minister K. Massimov took part in a ceremonial opening of VL 500 kV Agadyr-South Kazakhstan GRES realized within the project on construction of the 500 kV second electric power line ?North-South Kazakhstan?. ?Launching of this project is of paramount importance for us, since we will not be able to develop our industry, diversify it and create new working places without energy development. 78 people will be provided with jobs due to this substation here, in Agadyr?, the Prime Minister said. The general contractor of the project is Croatian Company DALE KOVID. The cost of the project is KZT 43.6 mln. The total length of the electric power line of ?North-South Kazakhstan? 500 kV second transit will make 1096 km. The substation covers the area of 65 ha. Karim Massimov also familiarized himself with the implementation of the Road Map activities in the region. In the city of Karaganda the Head of the Government visited a polytechnic college where the unemployed people could pass retraining courses. In whole 39 colleges and lyceums of the region are involved in retraining of personnel. 4279 people are expected to pass these courses. KZT 104 mln have been allotted from the budget for these aims. After then the Prime Minister visited the municipal children?s hospital. This medical facility was included into the Road Map. KZT 320 mln have been allocated for its repair. In whole, KZT 13 bln have been envisaged for the realization of Karaganda oblast?s Road Map. This allows to repair 596 social facilities and provide 34 thousand people with jobs. The progress of several construction projects of the capital was also in the focus of PM?s attention. In Astana K. Massimov surveyed the multi-purpose cinema and concert hall for 3500 visitors located in the new center. The general contractor of the project is AFF Kruger Hoch & Tiefbau GmbH LLP. The cost of the project is KZT 28, 955 bln. It was started in May 2005 and is planned to be completed in July. Afterwards thePM visited the university construction site. The owner of the project is Astana Knowledge City LLP. The entire complex area is 77 ha and includes 94 facilities for 20 thousand students. Another project surveyed was the M-3 bridge to be commissioned before July 1, 2009 by TamyzInvestGroup LLP. The new bridge which costs KZT 7.5 bln will provide 8 traffic lines in two directions. The length of the bridge will be 417.7 m. Making a trip just to two regions with our PM we became convinced even more that the correct, flexible economic model, advancing reforms in tax, budgetary, administrative, customs policy, and employment Strategy have not just mitigated the global recession consequences in our country, but also have ensured further sustainable industrial growth. This week Almaty hosted National Business Forum-2009. ?Our goal is to help business, to support it not only in the crisis period but also to lay the foundation for its post-crisis growth. Stimulation of business activity, diversification of economy and establishment of competitive productions, human potential development, supporting socially disadvantaged groups of population are the key components of this growth?, Vice Prime Minister of Kazakhstan Serik Akhmetov said at the Forum. According to him the state had allotted additional capital for private sector crediting. KZT 120 bln have been allocated in total for small and medium businesses support. It should be noted that the country?s second-tier banks are refinancing the loans of small and medium business enterprises at present. As is known, the interest rate was lowered from 18-20% to 12.5%. A tax reform was conducted as well. ?Lowering the tax rates for entrepreneurs allows releasing additional funds ? approximately KZT 300 bln which can be transferred for business maintaining and development?, he said. Vice Prime Minister Serik Akhmetov noted the importance of unity of the business community in implementation of successful industrialization. ?Support of the country's business community is the main priority of the Government's anti-crisis and stabilization work?, the Vice Prime Minister said. According to him, the Anti-Crisis Council of the Government was established namely at the entrepreneurs? initiative. ?Today we are discussing a number of issues connected with optimization of inspection of small and medium business enterprises by the state bodies?, the Vice PM noted. At present the issues connected with introduction of the risks management system in small and medium business entities are under consideration. One of the solutions in the partnership between business and government is regulation, optimization and reduction of inspections of small and medium businesses.