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Project management system: B. Sagintayev holds a meeting on development and reserves of economic growth in Aktobe region

by July 13, 2018 Market

Within the framework of the working trip to Aktobe region, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev held a meeting with the region’s activists and business representatives on the issues of project management of the Third Modernization of Kazakhstan.

During the meeting, the issues of modernization of the region’s economy was discussed, as well as the work of the region’s active core to create the necessary conditions for ensuring quality and sustainable economic growth under the conditions of a new global reality. In particular, in such areas as attraction of investments, development of basic sectors, mass entrepreneurship, technological re-equipment and introduction of elements of Industry 4.0, digitalization, training and creation of new jobs, further diversification of the economy.

Opening the meeting Bakytzhan Sagintayev noted that to enter the top thirty most developed countries of the world, Kazakhstan needs to ensure an annual economic growth of 5-6%.

Today, in six months, the country’s economy grew by 4.1%. We wrapped up 2017 with 4% growth. The contribution of the Aktobe region, which completes the half-year with an economic growth of 5.1%, is significant here, � the Prime Minister said, indicating that according to the regional Akimat, the indicators will not be below 5% by the end of the year.

As noted by B. Sagintayev, to continue work in this direction, the Government on its part does everything necessary. Last year, the project management office was opened to form a new growth model. Within the office, all regional growth indicators will be taken into account. Its main goal is to achieve the set milestone, to remove the obstacles that arise, to be able to make the right decision. In this regard, a portfolio of projects of the Government of the Republic of Kazakhstan has been formed in all the most important areas of economic development. For each project, target indicators and responsible persons were set, detailed implementation plans with specific results and timelines were developed.

The Prime Minister also outlined the main goal of the conversation – to understand how the work is proceeding in the region, what are the plans to identify and use the region’s internal reserves to ensure structural modernization of the economy, its qualitative and balanced growth.

Akim of Aktobe region B. Saparbayev reported on the work done to achieve the target indicators for the first half of the year and plans for the end of the year. In the region, systematic work is carried out within the framework of project management in 12 areas: basic industrialization, fuel and energy complex, attraction of investments, productive employment, as well as the development of agribusiness, mass business, ICT, transport and logistics, tourism and modernization of trade, education and health .

According to the Akim, thanks to the measures taken, including within the project management, the growth of the regional economy in the first half of the year was about 5%, growth was present in all socio-economic indicators.

Base industry: in the current year, 15 investment projects will be introduced in the region for the amount of investments of 76 billion tenge, with the creation of 1.4 thousand jobs. In 2018, 35 enterprises are planned to be modernized for a total of 55 billion tenge.

According to the indicators of the fuel and energy complex, construction of gas infrastructure in 14 villages for the amount of 4 billion tenge will be carried out using the PPP mechanism. Up to the end of the year, geological prospecting on 135 wells is planned, of which 18 are new. Also, all ownerless power supply networks will be disposed of.

Agro-Industrial Complex: in 2018 it is planned to introduce 10 investment projects for the amount of 10.6 billion tenge, with the creation of 247 workplaces. The area of irrigated land in 2018 will be 30.5 thousand hectares. For the first half of the year, agricultural exports amounted to $ 10.5 million, by the end of the year exports will amount to $ 42 million.

According to Akim B. Saparbayev, the Business Support Roadmap has been developed in the region. To improve the ease of doing business, the “Business without Barriers” project is being implemented, within the framework of which optimization and streamlining of inspections are carried out, as well as strengthening of business support by the state. This year, financial support will be provided in the amount of 22 billion tenge, non-financial support will cover 40 thousand people.

Just under the Business Bastau program, it is planned to train 2.2 thousand people with coverage twice that of last year. Also, the project “Auylkhamkhorlyk” is being implemented, within the framework of which more than 500 entrepreneur-mentors for the rural population have been identified. The carried out work will allow reaching the planned indicators for 2018 on development of mass business, � the Akim said.

Further, reports on the available reserves of the region were delivered by the Heads of the relevant Ministries.

Minister of National Economy T. Suleimenov told about economic opportunities for development in the field of mass entrepreneurship and modernization of the trade sector. In general, the indicators for socio-economic development in the region for the first five months have grown. At the same time, the region’s potential for further modernization of industrial facilities, solution of transport and logistics issues, development of export of products, diversification of the agro-industrial complex was identified.

Minister of Labor and Social Protection of Population M. Abylkassymova reported on the ongoing work on the flow of labor resources, and also informed about the available employment potential in the SME sector. In the Aktobe region in the first quarter of 2018, the labor force was 435 thousand people, of which 414 thousand are employed.

M. Abylkassymova informed that to further increase the incomes and employment of the population it is necessary to stimulate the development of business. The Minister emphasized that the main tool here is the Program for the Development of Productive Employment and Mass Entrepreneurship. For the purpose of implementing the Program in the region this year, 7.3 billion tenge was allocated, 18.9 thousand people became participants, which is 58% of the plan. 16 thousand were employed, including on permanent jobs � 9.4 thousand.

Minister of Investments and Development Zh. Kassymbek told about the development of transport and logistics, attracting investments. The Minister reported that for the first five months of the year the volume of investments in fixed assets amounted to 13.2 billion tenge. Also, 12 facilities are planned to be commissioned within the framework of project management of the project “Attracting investments” in 2018.

For the purpose of developing the transit potential of the region, this year, work has begun on the reconstruction of a section of the national highway Aktobe-Atyrau (160-330 km). Seven local roads of 102 km in length are also being constructed, 4.2 billion tenge of transfers from the National budget have been allocated. In the current year, work has begun on the construction of a transport and logistics center with an area of 59.2 thousand square meters with a turnover of 984 thousand tonnes per year. In addition, 17 roadside service facilities will be built in the Aktobe region for a total of 1.7 billion tenge, – Kassymbek said.

Minister of Healthcare Y. Birtanov, in turn, reported that the private medicine sector is actively developing in the region. To date, 29 hospitals and 126 ambulatory polyclinic health care organizations provide medical assistance in the region. Over the first five months, investments in fixed assets in healthcare amounted to about 2.4 billion tenge. For the first quarter of this year, the volume of rendered services amounted to 9.7 billion tenge. To date, 24 projects are being implemented in the healthcare sector for a total of 12 billion tenge.

Deputy Minister of Energy M. Mirzagaliyev reported on the plans and tasks for the development of the region’s oil industry complex. Thus, Aktobe region is the third oil and gas producing region of the country. The contribution of the region to the volumes of oil and gas production is about 9%. The main indicators of development since the beginning of the year show positive dynamics.

30 subsoil users operate in the field of oil and gas production in the region. For several years the volume of oil production in the region has remained at a stable level. In 2018-2019, it is expected to produce 6.2 million tonnes, in 2020 – 6.4 million tonnes and by 2025 about 7 million tonnes, – Deputy Minister M. Mirzagaliyev said.

Also, the Deputy Minister of Energy informed about digitalization and technological modernization. According to him, there are already successful pilot projects for the implementation of the “smart field” system, which allows increasing the volume of oil production, reducing costs, and increasing productivity.

The Ministry intends to support the initiatives of subsoil users aimed at digitalization of their production, application of advanced technologies and is ready to provide all the necessary information. Thus, the oil sector has great potential for the development of Aktobe region, � M. Mirzagaliyev said.

The meeting was also addressed via videoconference call by representatives of several Ministries. First Deputy Minister of Agriculture A. Yevniyev informed that in the 1st quarter of the year, exports of agricultural products and products of processing of agricultural raw materials of the Aktobe region amounted to $ 10.48 million (or 1.47% of the total exports), which is 20.8% more than in Q1 of last year ($ 8.67 million).

Investments in the fixed capital of agriculture, forestry and fisheries in January-May compared with the same period in 2017 increased by 374.6% and amounted to 4.8 billion tenge. Investments in the fixed capital of food production in January-May compared with the same period last year increased by 196.9% and amounted to 1.3 billion tenge, – A. Yevniyev noted.

Deputy Minister of Culture and Sport Yerlan Kozhagapanov reported on the development of tourism in the Aktobe region. 32 projects are implemented in the region in the current year with the creation of 390 jobs. To further improve the indicators in this area, the Ministry proposes to develop infrastructure along the highway “Western Europe – Western China”. The prospects for opening information-and-tourism centers in the region were also noted.

Deputy Minister of Information and Communication D. Scheglova reported on digitalization of economic sectors and further tasks of the region in this direction. According to her, in the framework of project management in the region, step-by-step work is being done to provide educational and social facilities with broadband Internet.

Within the framework of the first stage of the project, 82 villages have been selected in Aktobe region, which will have internet access. The remaining rural settlements are planned to be covered in the second stage of implementation, after 2020, where the use of a hybrid approach to the construction of transport links (LTE, satellite) is envisaged, – the Deputy Minister said, adding that in the first half of the year in Aktobe region, 17 thousand people out of the 32 thousand planned have been trained in basic digital literacy.

Deputy Minister of Education B. Assylova said in her speech that 58 educational projects worth 16 billion tenge are being implemented in the region. This year, it is planned to open 21 pre-school facilities, by 2020, 100% of children will be covered. During Q1 of 2018, the volume of educational services provided increased by 6% and amounted to 19.3 billion tenge. In addition, the Akimat of the region conducts activities on intellectual, spiritual, moral, creative upbringing and development of children.

Representatives of the national business and foreign investors also spoke during the meeting. A. Myrzakhmetov, Chairman of the Board of NCE Atameken, reported on topical issues of the development of mass entrepreneurship and business participation in the project management of the region. He noted that the contribution of SMEs to GDP is 18.3%. At the same time, taking into account growth of non-primary sector indicators by 12%, it is planned to work out the issue of business consolidation in the manufacturing sector. In these areas today there are about 52 thousand SME representatives.

Chairman of the Association Kazakhstan Foreign Investors Council Agris Preimanis, in turn, spoke about investment activities in the region. At the moment, more than 10 members of the Foreign Investors Council work in Aktobe region. A. Preimanis stressed the high investment potential of the region, convenient logistics, SME development, which are of interest in attracting investors.

I would like to note the development of the extractive sector, which every year becomes more attractive for foreign investors, as well as transport and logistics corridors: the region is an ideal location for international transport and opens new opportunities for the region, � A. Preimanis said.

During the consideration of the current status of the project management of the region, Deputy Prime Minister E. Dossaev said that there have been major changes in the region during the three months. There is a huge potential in the production and processing of agricultural products. E. Dossaev assured that in the next three months the Government is ready to work together on new infrastructure projects. He also recalled that Aktobe is claiming the title of the fourth megapolis of the republic.

Urbanization is going on at a fast pace. According to the statistics, 80% of all graduates of high schools in the region finish humanitarian specialties. Therefore, together with the project office, we set a goal – to develop technical specialties, mainly in colleges, � E. Dossaev said.

On behalf of the regional business community, a speech on the development of the agro-industrial complex was delivered by the Director of Aktep LPP N. Sagnalin. The Prime Minister said that to date, in order to support farmers, the State program for the development of the agro-industrial complex has been updated, five social initiatives are being implemented, particularly the expansion of microlending in the countryside. The government is providing all the necessary measures to support export-oriented agricultural producers.

At the end of the meeting, Bakytzhan Sagintayev noted the importance of diversifying the economy of both the region and the country as a whole, and the need to train qualified personnel for the new economy. In Kazakhstan, systemic measures are taken to develop the whole chain of improving the quality of human capital: modernization of the education system and ensuring further employment, special courses for entrepreneurs, development of the health infrastructure and improving the living conditions of the population etc.

Source: Government of the Republic of Kazakhstan