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Gold mining and automotive industry: How did East Kazakhstan region develop in 2018

15 February 2019, 14:39

State programs aimed at improving the regional socio-economic development and economic progress across the country are being actively implemented in the regions of Kazakhstan on the Head of State’s instructions. Read the review material by on the work carried out in this direction in the East Kazakhstan region.

The East Kazakhstan region was formed in 1932 and is located in the northeast of the republic. In 1997, the Semipalatinsk region was annexed to the region. The territory of the region is more than 283 thousand km2. The administrative center is Ust-Kamenogorsk, located at the confluence of the Irtysh and Ulba rivers. In the region there are 15 rural areas, 10 cities, 730 rural and township settlements, 239 rural districts. The population of the region Jan. 1, 2018, was 1,383.6 thousand people.


Industrial production amounted to 1.8 trillion tenge

At the end of 2018, the short-term economic indicator was 108.2%.

About 1.8 trillion of industrial output was produced (an increase of 9.3%) in 2018. Copper ore production increased by 7.4%, copper in copper concentrate — 13.8% due to an increase in production at Aktogai Mining and Processing Plant by 48.6%.

In the manufacturing industry, growth is noted in the production of raw and semi-processed gold or in the form of powder — 114.1%, associated with the launch of the mining and processing complex of Bakyrchik Mining Enterprise LLP; motor vehicles, trailers and semi-trailers — 159.9% due to increased production of passenger cars of Asia Avto JSC with the release of 18,250 units; food products — 107.7%.

More than 488 billion tenge was invested in the regional economy, which is 5.5% more than in 2017. The state budget for 2018 received more than 303 billion tenge of taxes and other obligatory payments, or 107% of the forecast.


Development of agro-industrial sector: Meat production increased by 4.2% in one year

One of the key drivers of economic growth in the region is the agricultural sector.

For 2018, gross agricultural output was produced for more than 506 billion tenge, with an increase of 5.2%. In terms of the output of agricultural products among the regions of the republic, the region is in 4th place.

The leading branch of agriculture of the region, animal husbandry, is steadily developing. In 2018, meat production increased by 4.2%, milk by 4.3%, and eggs by 0.6%. So, the East Kazakhstan region takes the 1st place in milk production in the country, in the production of meat — 2nd place. The number of cattle increased by 6.4%, horses — by 12.3%, pigs — by 0.7%, birds — by 0.9%.

Meanwhile, in the framework of the program for the introduction and dissemination of innovative experience, eight projects are being implemented in the livestock, beekeeping and plant growing sectors. The farms of the region are introducing elements of precision farming using satellite navigation systems (GPS), accounting for agricultural equipment is carried out with the creation of a single electronic database and the formation of electronic maps of agricultural land. At present, 100% of the arable land used, 53% of pastures, 41% of hayfields are digitized.

At the same time, in order to increase milk production, 37 dairy farms were launched, 55 milk receiving stations were established in 2015. This allowed increasing the workload of local dairy processing enterprises from 29% to 75%.

Together with foreign partners, two major investment projects are being implemented for the processing and export of meat products to world markets. This is the construction of a meat-processing plant with a capacity of up to 30 thousand tons of meat per year in the city of Semey and meat-processing production and a feedlot for 50 thousand heads in the Ayagoz district.

In addition, in order to remove technical barriers to the supply of products to China, a laboratory accredited by Chinese standards will open in 2019. Its equipment for 1 billion tenge is provided by the Chinese side at no cost.


New social facilities created more than 18 thousand jobs

Due to the opening of new productions in the real sector, the development of small business and the introduction of new social facilities in the region, more than 18 thousand new jobs were created, which is 4.4% more compared to 2017.

Nominal monetary incomes of the population increased by 16.8%, the average monthly salary exceeded 133 thousand tenge, deposits of individuals increased by 10.2%.

At the same time, work continues on the implementation of the Head of State’s Address to the People of Kazakhstan “Growing Welfare of Kazakh Citizens: Increase in Income and Quality of Life.” So, the increase in the minimum wage by 1.5 times directly affects 38 thousand public sector employees, whose wages grew by an average of 35%. Twenty-four large enterprises of the region raised wages to their employees, in general, 32.5 thousand companies plan to increase wages.

The implementation of the Business Road Map 2020 program will also be continued, according to the key indicators of which, the region occupies a leading position in the country.

Over the past three years, 826 projects worth 14.5 billion tenge were supported through the Roadmap mechanisms and more than 1.7 thousand people were employed.

Together with the Damu Fund, the regional program of concessional lending “Aq niet” was launched in the priority sectors of the economy with a total volume of 3.3 billion tenge. Sixty-seven projects worth 3.7 billion tenge were financed.

In addition, within the State Program of Industrial-Innovative Development, 71 projects with a total value of 1.3 trillion tons that will create 15.2 thousand workplaces, including three projects of republican value totaling 808.9 billion tenge were included in the Business Support Card of the East Kazakhstan region.

Note that for the period from 2010 to 2017, 41 projects worth 572.1 billion tenge were introduced in the region, with the creation of 7.2 thousand jobs. Of these, 40 projects have reached planned capacity with a load of 100%, for one project, the start of production is scheduled for the second half of 2019.

In 2018, 6 projects of the Business Support Card with a total value of 135.7 billion tenge were implemented, over 1.2 thousand jobs were created, including the Bakyrchik Mining and Processing Complex with a capacity of 2 million tons of ore per year with an investment of 133.8 billion tenge


Development of tourism industry: Share of tourism in region's GRP to reach 3%

Within the framework of the sixth direction of the Address — the involvement of each Kazakhstani to the transformation processes in the country, the implementation of the projects of the Rouhani Zhangyru program continues. For the implementation of the program in the period from 2017 to 2021, more than 80 billion tenge, including 52 billion tenge for the last two years, 20.4 billion tenge of which amounted to extra-budgetary funds.

In the context of the President Nursultan Nazarbayev’s article “Seven Facets of the Great Steppe,” the program will be continued, especially in the field of archeology at the Eleke Sazy necropolis in Tarbagatai district and Berel in the Katon-Karagay district.

East Kazakhstan has the potential to develop tourism. It is planned to increase the share of tourism in the gross regional product to 3%. The priority is defined Lake Alakol, where it is projected to bring the number of tourists to 1 million people per year. For three years, improvement of the embankment, construction of roads, organization of air and railway communication for a total amount of 5.2 billion tenge. Work on landscaping the coast of Lake Alakol continues.

In addition, Belukha Mountain, Markakol Lake, Bukhtarma Reservoir, Kiin-Kerish Canyon, Akbaur Natural-Historical Monument, Memorial Complex of the Abai Kunanbayev House-Museum in Zhidebai-Borili, Kozy Korpesh-Bayan Sulu Mausoleum, Enlik-Kebek , a monument of Kyrgyzbay-ata are of great interest in tourism sphere.


More than 410 thousand m2 of housing built under Nurly Zher program

An important indicator of quality of life, a factor in the development of the economy is the provision of housing to the population. In total, in 2018, under the Nurly Zher program, 740.4 thousand m2 of housing was built with an investment of 22.7 billion tenge, of which 410.5 thousand m2 of housing was commissioned, an increase of 8%. In general, in 2018 compared with 2017, the volume of construction work increased by 3.7%.

At the same time, more than 1.8 thousand apartments were put into operation and are ready for implementation as part of the 7-20-25 program, which expands the possibilities to get a mortgage loan on more favorable terms and for a longer period.

According to the information of JSC Baspana, as of Jan. 10, 2019, 392 applications for 3.4 billion tenge were received by second-tier banks, of which 252 were approved for 2.3 billion tenge.

In addition, in order to create a comfortable environment for citizens, 1.6 billion tenge was sent to improve the yards of the cities of Ust-Kamenogorsk and Semey in 2018. In 2019, 4.2 billion tenge was allocated for this purpose, covering regional centers, cities of regional significance and 100 rural districts.

As part of the regional development programs until 2020 and Nurly Zhol, in 2018, 50 projects were implemented to provide access to centralized water supply and sanitation with a total cost of 31.7 billion tenge, of which 18 facilities were commissioned for 8.4 billion tenge. 53.7% of villages in the East Kazakhstan region are provided with centralized water supply.

At the same time, for the implementation of the Head of State’s Address to the people of Kazakhstan, work is underway to develop the transport and logistics sector. The reconstruction of the airport runway in Semey has been completed. In 2019–2021 it is planned to modernize the airport of Ust-Kamenogorsk and the reconstruction of the airport runway from Urdzhar. To improve regional mobility, funding for road maintenance has been increased by 1.5 times. In 2018, 54.8 billion tenge was allocated from all sources to the region’s highways, including 10.7 billion tenge allocated to the road network of cities and rural settlements.


PPP: 175 projects are at planning and implementation stage

The region is the leader in Kazakhstan by the number of public-private partnership contracts and concessions. PPP projects cover the areas of education, health, energy and housing and public utilities, transport and sports. In total, in the regional portfolio, 175 projects worth 173.6 billion tenge are at the planning and implementation stages. Among the signed projects for 2015–2018 there are 145 contracts for 32.6 billion tenge.

As a result of joint activities with the European Bank for Reconstruction and Development, contracts and agreements worth 87.5 billion tenge were signed on 13 projects. In total, the portfolio with the EBRD has 102 projects for 316 billion tenge. Including projects in heat, electricity and water supply, water disposal, utilization of solid waste, modernization of the airport of Ust-Kamenogorsk, public transport of the regional center and Semey city, street lighting of cities and regional centers and the construction of a solar power station in Zharma district.


Improving quality of education: Emergency schools and three-shift education problems fully resolved

Nearly 122 billion tenge was spent to the development of the education system in 2018, which is 4.9% higher than the 2017 level. With the commissioning of two schools in the region, the issue of emergency schools and three-shift training has been completely resolved. To increase school enrollment, the construction of three schools and one additional building to the school continues.

In 2018, 16 private kindergartens for 1,232 places were opened. Sixty-six private kindergartens operate under public-private partnership agreements. Under the PPP contracts and the concession, construction of two kindergartens for 600 children in Semey was completed, two kindergartens for 500 children in Ust-Kamenogorsk are under construction. In general, the coverage of children with pre-school education and education at the age of 3-6 years reached 100%. The proportion of children aged 1-6 years covered by preschool education is 78.7%.

At the same time, the three-year program of trilingual education continues. In this direction, East Kazakhstan is a pilot area with new methods of teaching languages, in particular in the Kazakh and English languages — according to the Cambridge system. Under the program, all teachers of language disciplines have improved their skills, moreover, in English — from direct speakers. For the first time in 2018, 200 subject teachers studied the English language with passing the international exam.

According to the Rouhani Zhangyru program, 476 new classrooms equipped according to the standards of Nazarbayev Intellectual Schools, including 277 robotics classrooms, were opened in all full-scale schools in the region. Funding was provided by extrabudgetary funds for 2.8 billion tenge. On the basis of computer science and robotics classrooms, 277 IT classes have been opened, aimed at providing basic and functional skills in the field of information and communication technologies.

Within the framework of the Bіlіktі Maman Project of the program Rouhani Zhangyru, taking into account the need for personnel in the regional school graduates in demand in the region, educational grants were allocated to pay for higher education from the local budget. Total for 2017–2018, 646 educational grants in universities were allocated, including 46 grants for universities of the republic.

As part of the Five Social Initiatives in 2018, in the city of Semey, two dormitories for 700 people were opened for students of the Kalmatyev Medical College and the Electrotechnical College. In the future, it is planned to open another 11 dormitories for 4,2 thousand places.

The key principle of the development of health care in the region is continuous medical education throughout the entire professional activity. For three years, 153 specialists were trained in the three-level training program for health care workers in the areas of oncology, circulatory system diseases, motherhood and childhood, traumatology and surgery in leading European clinics. By 2020, 300 medical workers of the region will increase the level of competence to the international level.

18.8 billion tenge was invested to bring the clinics of the region to the world standards of equipment, from various sources. In 2019, it is planned to provide 100% high-tech equipment to all public health organizations.

In 2018, a unique Center for Robotic Surgery and Transplantology was opened in Ust-Kamenogorsk, the reconstruction of the building was completed under the clinic for 212 visits per shift in Ust-Kamenogorsk. In the cities of Altai and Ayago, level II stroke centers have been established, equipped with modern equipment, including computer tomographs.

In general, all implemented measures are aimed at the qualitative solution of the tasks of the development of the region, improving the quality of human capital, and the welfare of citizens.

The priority of the activities of the executive state bodies is the effective implementation of the strategic tasks of modernizing the economy and public awareness in the context of the Head of the State’s Address, the Five Social Initiatives and the Rouhani Zhangyru program.



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