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Project Management System: Bakytzhan Sagintayev holds a meeting on development and reserves for growth of Aktobe region’s economy

by July 13, 2018 General

At the meeting, the issues of modernization of the region’s economy were considered and the work of the region’s activists on creating the necessary conditions for ensuring high-quality and sustainable economic growth in the new global reality was discussed. In particular, the discussion took place on such topics as attraction of investments, development of basic sectors of the economy, mass entrepreneurship, technological modernization and implementation of the elements of Industry 4.0, digitalization, training of specialists and creation of new jobs, as well as further diversification of the economy.

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

“To date, in six months, the country’s economy grew by 4.1%. 2017 was completed with a 4% economic 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, noting that according to the regional akimat, the indicators will not be below 5% by the end of the year.

As noted by Sagintayev, to continue work in this direction, the Government on its part does everything necessary. Last year, the office of project management was opened to form a new growth model. Within the office in all regions, all growth indicators will be taken into account. Its main goal is to reach this milestone, to eliminate the obstacles that arise while to be able to make the right decision. In this regard, the Government’s portfolio of projects has been formed in all the most important areas of economic development. On each project, there are target indicators set and responsible persons appointed, detailed plans for implementing projects, indicating specific results and timelines, are ready.

The Prime Minister also outlined the main purpose of the conversation � to understand how the work is proceeding in the region, how the region’s internal reserves will be identified and used to ensure structural transformation of the economy, its qualitative and balanced growth.

In his turn, Akim of Aktobe Region Berdybek Saparbayev reported on the work done to achieve the target indicators for the first half-year and plans for 2018. Aktobe Region’s Akimat systematically works in 12 areas under the project management: basic industrialization, fuel and energy complex, attracting investment, productive employment, as well as the development of agribusiness, mass business, information and communication technologies, transport and logistics, tourism and modernization of trade, education and health sectors.

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

According to Saparbayev, the map of entrepreneurship support has been developed in the region. To make doing business easier, the Business without Barriers project is being implemented. Within the framework of this project, optimization and streamlining of business checks, as well as strengthening of business support by the state, are carried out. This year, financial support will be provided in the amount of 22 billion tenge, non-financial support � 40 thousand people.

“Only under the Bastau Business program it is planned to train 2,200 people with coverage twice as large as last year. Also, the Auylqamqorlyq project is being implemented, under which more than 500 mentor entrepreneurs for the rural population have been appointed. The work carried out within the framework of the projects will achieve the planned targets for 2018 on indicators of the mass entrepreneurship development,” said the akim.

Further, reports on the available reserves of the region were made by the heads of the relevant ministries.

Minister of National Economy Timur Suleimenov told about economic opportunities for development in the field of mass entrepreneurship and modernization of trade. In general, the indicators of socio-economic development in the region for the five months of 2018 have developed a positive trend. At the same time, he outlined 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.

Minister of Labor and Social Protection of the Population Madina Abylkassymova reported on the ongoing work on the flow of labor resources, and also informed about the available employment potential of the population in the small and medium enterprises. In Aktobe region in the first quarter of 2018, the labor force amounted to 435,000 people, of which 414,000 were employed.

Abylkassymova informed that to increase incomes and employment of the population further, it is necessary to stimulate business development. The minister informed that the main tool in this process is the Program for the Development of Productive Employment and Mass Entrepreneurship. In 2018 for the implementation of the program, 7,3 billion tenge was allocated, 18,900 people took part in it � this is 58% of the plan. Nearly 16,000 people found jobs, including 9,400 � permanent.

Minister for Investments and Development Zhenis 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 was 13.2 billion tenge. Also, under the project management for the project “Attracting Investments” in 2018, it is planned to commission 12 objects.

“With a view to developing the transit potential of the region, this year, work has begun on the reconstruction of a section of the national highway Aktobe � Atyrau, section 160-330 km. Also, seven local road projects with the length of 102 km were have been finished, 4.2 billion tons of transfers from the republican budget were 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 tons per year. In addition, 17 roadside service facilities will be built in the region for 1.7 billion tenge,” Kassymbek said.

Minister of Healthcare Yelzhan Birtanov, in his 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. For the first five months, investments in fixed assets in the health sector amounted to 2.4 billion tenge. For the first quarter of 2018, the health care organizations rendered services for 9.7 billion tenge. To date, 24 projects have been implemented in the health sector for a total of 12 billion tenge.

(copyright) Vice Minister of Energy Magzum Mirzagaliev reported on the plans and tasks for the development of the region’s oil industry complex. Thus, the Aktobe region is the third in the country in oil and gas production. The contribution of the region to oil and gas production is about 9%. The main indicators of the oil and gas complex of the region since the beginning of this year show a positive dynamics of development.

“In the field of oil and gas production in the region, 30 subsoil users operate. 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 tons, in 2020 � 6.4 million tons and by 2025 � about 7 million tons,” said Vice Minister Mirzagaliyev.

Also, Vice Minister of Energy informed about the progress of digitalization and technological modernization. According to him, there are already successful pilot projects for the implementation of the Intellectual 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 potential of the oil sector has great potential for the development of the Aktobe region,” Mirzagaliyev said.

The meeting on the videoconferencing system was also made by representatives of several ministries.

First Vice Minister of Agriculture Arman Yevniev informed that for the first quarter of 2018, export of agricultural production and products of agricultural raw materials processing of the Aktobe region amounted to $10.48 million (or 1.47% share of total exports), which is 20.8% more than in the first quarter of 2017 ($8.67 million).

In general, there is an investment growth throughout the Aktobe region in comparison with the same period in 2017.

“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,” Yevniev noted.

Vice Minister of Culture and Sports Yerlan Kozhagapanov reported on the development of tourism in the Aktobe region. In 2018, 32 projects with the creation of 390 jobs were implemented in the region. To improve the indicators in this area further, the ministry proposes to develop infrastructure along the highway Western Europe � Western China. The prospects of opening information and tourist centers in the region were also noted.

Vice Minister of Information and Communications Dinara Shcheglova reported on digitalization of economic sectors and further tasks of the region in this direction. According to her, under the project management, a step-by-step work is being done in the region to provide educational and social facilities with broadband internet.

“At the first stage of the project, 82 villages have been selected in the Aktobe region, in which internet access will appear. The remaining rural settlements are planned to be covered in the second stage of implementation, after 2020, when the use of a hybrid approach to the construction of transport links (LTE, satellite) is envisaged,” the vice minister said, adding that for the first half of the year in Aktobe region, 17,000 people out of 32,000 planned completed basic digital literacy training.

Vice Minister of Education Bibigul Assylova said in her report that 58 educational projects worth 16 billion tenge are being implemented in the region. This year, it is planned to open 21 pre-schools, by 2020 the coverage rate of children will be 100%. For the first quarter of 2018, the volume of services rendered to education organizations increased by 6% and amounted to 19.3 billion tenge. In addition, the Regional Akimat 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. Chairman of the Board of the Atameken NCE Ablay Myrzakhmetov 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 small and medium-sized entrepreneurships 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 52,000 representatives of SMEs.

Chairman of the Kazakhstan Foreign Investors’ Council Association Agris Preimanis, in his turn, spoke about the activities of investors in the region. At the moment, ten members of the Foreign Investors’ Council work in Aktobe region. Preimanis stressed the high investment potential of the region, convenient logistics, SME development, which are interesting for 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,” Preimanis said.

During consideration of the current status of the project management of the region, Deputy Prime Deputy Prime Minister of Kazakhstan E. Dossaev said that big changes took place in the region in three months. There is a huge potential in the agricultural production and processing. Dossaev assured that in the next three months the Government is ready to work together on new infrastructure projects. Also, Dossaev reminded that Aktobe is claiming the title of the fourth megapolis of the republic.

“Urbanization is going on at a fast pace. If you believe the statistics, 80% of all graduates of high schools in the region are specialists in humanitarian sphere. Therefore, together with the project office, we set a goal � to develop technical specialties, mainly in colleges,” Dossaev said.

On behalf of the regional business community, Director of AkTep LLP Nurlan Sangalin made a speech on the development of the agro-industrial complex in the discussion format. The Prime Minister said that to date, in order to support farmers, the State Program of the Agro-Industrial Complex has been updated, Five Social Initiatives of the President are being implemented, in particular, on the expansion of microcredit in the countryside. The Government provides all the necessary financial and non-financial measures to support export-oriented agricultural producers.

At the end of the meeting, Sagintayev noted the importance of diversifying the economy of both the region and the country as a whole, as well as 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: starting from modernization of education system and ensuring the further employment, special entrepreneurship trainings down to the development of health infrastructure and improvement of the living conditions of the population.

Source: The Prime Minister of Kazakhstan