South Kazakhstan among those getting most amount of money for Business Road Map 2020

Altaev told Kazinform about the details of the Program aimed at developing the industry of the region.

Mr. Altayev, how much money has been allocated to your region for the Program realization and what do you expect from it?

It is not a secret that the state supports entrepreneurs extremely well, especially those who are involved in real sectors of economy, industry. One of the strongest instruments of maintaining entrepreneurs is Business Road Map 2020. Currently, KZT 2.2 bln has been allocated to South Kazakhstan region within the Program. There are several directions for development of the Program. One of them is Support of Export-Oriented Productions, where we have a project LLP South Textileline KZ.

Now many entrepreneurs are willing to use the opportunities the Program provides?

Today we have several projects, which have been already approved. According to Export-Oriented Industries we have one project approved, the factory mentioned above. According to Infrastructural Support we have a project aiming at industrial zone of Shymkent, the project of factory for the initial processing of wool. Besides, there is a construction project that is Trade and Logistics Center in the town of Shymkent and Ordabasy Kus project. This is the project that was included into the Industrialization Map and is under the Government's control.

What is the mechanism of funding?

The department for industry and entrepreneurship as a Program Coordinator receives all applications. Then we send a project to the coordinating council for further approval. The head of the council is the Governor of the region. The projects are considered and then sent to the Ministry of Economy for approval of financing.

What are the main criteria?

The main criterion is real industry. There is a list of prior directions that should be supported. In case the project meets all standards and is involved in real industry it's likely to be financed. The range of spheres is quite wide including everything connected with real industry.

What are the most important directions in your region?

Infrastructural Support is the most active direction. KZT 729 mln was allocated on these purposes for 2010 but the total amount of the project considered is KZT 2.5 bln. Entrepreneurs have a ready project, their own land, sufficient financing but they very often have problems with infrastructure. Very often it means no electricity, gas, water, railways, roads whish is of high importance to realize the project. Local executive bodies render these services for free.

Could you tell us about the most interesting projects of this direction?

Industrial zone project was approved recently. It is the project of highest importance for Shymkent. It is also one of the mechanisms to support entrepreneurs in the sphere of industry. In accordance with this project we will provide virtually for free the land for entrepreneurs. In case their projects are interesting for the state they will receive the land with all infrastructure. The industrial zone is the territory of the former phosphate factory. The factory already had its infrastructure now we are repairing it. The first construction stage should start here in November, approximately.

Are there people willing to realize any projects in the industrial zone?

The answer is many. Alongside with the entrepreneurs of our city we receive many applications from foreign investors. Last week we received here Turkish investors and reached agreement on building 4 factories in the Industrial zone. One of them is the factory producing household chemicals, the second one is the factory producing household appliances, the third one is the factory producing architectural paints and the fourth one will be involved in packages production. Around August 18 the heads of these projects are to come here for receiving the lands we allocate to them and then the projects will be launched.

Do you have enough funds for financing all interesting projects regarding infrastructure issue?

It should be mentioned that we have a lot of projects of Infrastructural Support direction. According to the first direction, which is the subsidization of interest rate of the bank loans, the activity is not so intense. We have approved only one project, which is considered to be a big project to the amount of KZT 3 bln. Two projects are at the stage of consideration now but they are not so urgent as infrastructural projects. Therefore we are planning to request the Ministry to increase the financial limit for infrastructure or transfer money from the first direction to the support of infrastructure.

Thank you for the interview!