Investments in fixed assets of Ekibastuz to increase fivefold by 2025 — Aset Irgaliyev

At the government session chaired by the Prime Minister of the Republic of Kazakhstan Askar Mamin, the Comprehensive Plan of Social and Economic Development of Ekibastuz, Pavlodar region, for 2021-2025 was considered.

Minister of National Economy Aset Irgaliyev, Minister of Industry and Infrastructure Development Beibut Atamkulov, Minister of Energy Magzum Mirzagaliyev, Akim of Pavlodar region Abylkair Skakov presented their reports.

As the Minister of National Economy Aset Irgaliyev noted, the Comprehensive Plan consists of 114 measures providing for the implementation of investment projects, the development of housing and other infrastructure, the social sphere, the provision of civil protection and the improvement of the environmental situation.

“The total amount of investments for the implementation of the Plan is 932.8 billion tenge, including from the republican budget — 64.7 billion tenge, the local budget — 33.5 billion tenge, private investments — 834.6 billion tenge. For the development of the city's economy, the Plan provides for the implementation of 35 measures aimed at the development of industry, agro-industrial complex, energy, as well as entrepreneurship for a total amount of 822.3 billion tenge,” Irgaliyev reported.

According to him, the industry plans to create an industrial zone of 400 hectares, the construction of plants for the production of ferroalloys, technical silicon, metallurgical carbon electrodes, forged products for the railway. In addition, it is planned to switch to a conveyor belt technology for coal mining.

In the agro-industrial complex, according to the minister, the area of ​​greenhouses will be expanded from 30 hectares to 60 hectares, complexes for the production of bakery and pasta, kumis, 2 feedlots will be built, as well as an increase in irrigated land by 10 thousand hectares.

In the energy sector, 2 power units with a total capacity of 1,136 MW will be built.

“For the development of entrepreneurship within the framework of the programs Business Roadmap-2025, Economy of Simple Things and Enbek, subsidizing the interest rate on loans to entrepreneurs and the provision of grants for the implementation of new business ideas is provided. It is also planned to implement the regional project Business Ertis,” Irgaliyev informed.

On housing issues, in order to improve the quality and improve living conditions of the population, 37 measures will be implemented aimed at the development of housing, engineering communications and road infrastructure for a total amount of 84.9 billion tenge.

In addition, 50 km of trunk and intra-quarter heating networks will be built and reconstructed in the city.

The Comprehensive Plan also provides for the construction of about 200 thousand m2 of credit and rental housing, the allocation of 370 plots for individual housing construction.

“Construction and reconstruction of 104.7 km of water supply and sewerage networks, construction of 32.5 km of water supply networks and reconstruction of 2 treatment pumping stations will be carried out in the city,” Irgaliev reported.

As the minister further noted, the creation of a modern infrastructure is envisaged to increase the availability and quality of services in healthcare and education systems. The material and technical base in the healthcare sector will be strengthened.

In the education sector, it is planned to build a children's creativity center for 350 places, overhaul in 20 schools, and reconstruct a kindergarten for 320 places.

To popularize culture and sports, the Isabek Ishan Khazret Museum, 2 houses of culture, an ice arena, 20 street workout and 10 streetball grounds will be built.

Also 2 fire stations will be built and 2 will be renovated.

An important direction in the project is the issue of improving the ecological state of the city. It provides for the modernization of enterprises to reduce emissions into the air, as well as the introduction of separate collection of solid waste, the elimination of landfills and others.

"The implementation of the Comprehensive Plan will allow to ensure by 2025 the growth of the city's industry by 22%, the output of SMEs by 38.2%," said Irgaliev.

The volume of investments in fixed assets will increase fivefold by 2025.

More than 16.5 thousand new jobs will be created, the average monthly wage will increase to 321 thousand tenge. About 200 thousand m2 of housing will be commissioned.

In general, the implementation of the Comprehensive Plan, according to the Minister, will increase the growth rates of the city's economy and ensure an increase in the quality of life and well-being of the population.

Continuing the topic of housing and communal services, Minister of Industry and Infrastructure Development Beibut Atamkulov reported that within the framework of the draft Comprehensive Plan, the Ministry is the responsible executor for 13 measures in the field of housing construction and housing and communal services in the amount of 41.6 billion tenge.

According to the minister, 199.4 thousand m2 of housing or 2.8 thousand dwellings are planned to be commissioned in the city of Ekibastuz by 2025. In particular, within the framework of the Comprehensive Plan, it is planned to provide 67.5 thousand m2 of housing or 748 apartments with rental and credit housing at the expense of state funds.

To provide the necessary engineering infrastructure in the areas of mass housing development, 3 billion tenge is planned to be allocated in 2023. Also, 370 land plots will be provided with engineering infrastructure. It is planned to create 1.2 thousand temporary jobs. In the field of water supply, at present, as the minister informed, the city of Ekibastuz has 94% access to services.

“By the end of 2025, 100% of the city's population will be provided with high-quality water supply services. Within the framework of the Comprehensive Plan for 2021-2025, the allocation of funds in the amount of 23.7 billion tenge is supported for the implementation of water supply and sanitation projects, including 19.3 billion tenge at the expense of the Republic of Belarus," Atamkulov assured.

At the expense of the allocated funds, it is planned to build and reconstruct 104.7 km of water supply and sewerage networks, where 481 jobs will be created.

“The Ministry will take all the necessary measures to ensure the timely and high-quality implementation of the measures provided for in the Comprehensive Plan of Socio-Economic Development of the city of Ekibastuz, Pavlodar region,” Atamkulov summed up his speech.

Minister of Energy Magzum Mirzagaliyev said the city of Ekibastuz is the country's energy center, where more than 40% of the generation of all Kazakhstan is produced.

Ekibastuz GRES-1 and GRES-2 are the main energy sources in the northern and southern zones of the Unified Electric Power System of Kazakhstan.

The comprehensive plan of socio-economic development of Ekibastuz of Pavlodar region for 2021-2025 in the electric power industry provides for three investment projects:

  • Reconstruction of power unit No. 1 at Ekibastuz GRES-1;
  • Construction of the third power unit at Ekibastuz GRES-2;
  • Construction of a new 500 kV substation (construction of a 500/220/10 kV substation with connection to Ekibastuz substation 1150).

The goal of the project for the restoration of the first power unit at the Ekibastuz GRES-1 is to increase the plant's capacity by 500 MW. This will ensure the projected growth in consumption in the Unified Energy System of Kazakhstan.

“The amount of investments provided for by the Comprehensive Plan is 66.5 billion tenge. The project is being implemented by Samruk-Energo JSC,’’ informed the minister.

At present, the readiness of the Ekibastuz GRES-1 project is 41.8%. Including 88.3% dismantled old and 33% assembled new equipment. Completion of the project is scheduled for the end of 2023.

According to Mirzagaliyev, a specific implementation plan has been defined and a financing scheme has been agreed upon.

At the beginning of 2021, the Ministry of Energy signed an investment agreement with Ekibastuz GRES-1 LLP, which will ensure the return on investment after the project is implemented within the electricity market.

The project for the expansion and reconstruction of the Ekibastuz GRES-2 implies the construction of a new power unit with a capacity of 636 MW by 2025. As a result of the implementation of this project, the installed capacity of the station will be increased from 1,000 MW to 1,636 MW. The project is implemented by Samruk-Energo JSC. Currently, work is underway to adjust the design and estimate documentation of the project, with a completion date in December 2021.

“If we talk about the third project, then it provides for the construction of a new substation with a capacity of 500 kV. The power supply of the industrial zone of the city of Ekibastuz will be carried out through the construction of two new power lines. The project is implemented by KEGOC JSC,’’ noted the Minister of Energy.

This project is being implemented in order to provide electricity to consumers in the industrial zone. The estimated cost of the project is about 16 billion tenge. The project implementation timeline will be known based on the results of the feasibility study. At the same time, it is assumed that the work will be completed in 2025.

As the Minister of Energy emphasized, today, on the instructions of KEGOC, work is underway to develop a feasibility study, the development of which is planned to be completed in the second quarter of 2022.

The implementation of this project will ensure the expansion of production facilities and the attraction of large investors to the industrial sector.

Akim of Pavlodar region Abylkair Skakov noted that Ekibastuz is one of the three largest single-industry towns in the country. Despite the growth of the manufacturing industry, the city's dependence on the fuel and energy complex has remained high in recent years.

At the same time, the main problems of the city are:

  • Environmetal state;
  • Outdated social infrastructure;
  • Worn out engineering networks;
  • Migration from the city and others.

To address these issues, following a broad expert and public discussion, a comprehensive city development plan was developed, consisting of 114 events. They are divided into 4 main blocks:

  • Real sector of the economy;
  • Ensuring employment of the population;
  • Maintaining the social and engineering infrastructure;
  • Solving environmental problems.

The implementation of measures is estimated at 932.8 billion tenge. The share of private investment is 89.5%, that is, 1 tenge of the budget accounts for 9 tenge of private investment. In general, the local and republican budgets are 98.2 billion tenge.

The key task of the Development Plan is diversification the city's economy against the backdrop of reduced demand for coal.

First, the creation of an industrial zone for private investors. There is already a pool of potential projects.

Second, the construction of 2 power units to provide the existing and new industries with the necessary capacities.

Third, the creation of a research center for coal chemistry for the subsequent development of coal production.

“The expected economic effect from the implementation of these projects: a 4-fold increase in the number of people employed in the manufacturing industry and an output of more than 1 trillion tenge in production. Integrated development of Ekibastuz is not only new production. There are a number of serious issues in the social sphere. Their solution is planned at the expense of the region,” the city akim said.

In the field of health care — increasing human resources and improving the material and technical base of the city polyclinic.

In the field of education, overhaul of all 20 schools and reconstruction of the kindergarten are planned. It is also expected to build a center for creativity with a total coverage of more than 700 children.

“We will develop additional education in the field of physical culture and sports. It is planned to build an ice arena and 30 sports grounds. This should increase the share of urban residents involved in physical education up to 40%,” Skakov said.

In the field of culture, it is planned to implement 8 events worth 1.6 billion tenge. It is planned to carry out a major overhaul of facilities and build new ones. It is also planned to build houses of culture in the rural area of ​​Ekibastuz.

In general, the expected result from the implementation of these KPR measures:

  • investments in fixed assets will amount to 737 billion tenge;
  • industrial production — at the level of more than 1 trillion tenge;
  • increasing the number of SMEs through state support measures up to 10 thousand;
  • creation of 16.5 thousand jobs, including permanent ones — 14 thousand;
  • increasing the average monthly wage up to 321 thousand tenge;
  • reducing the dependence of the city's economy on the fuel and energy complex by 12.1%.

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