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Spain to build waste recycling plants in Kazakhstan

by September 27, 2018 Politics

Today Astana has hosted the Fifth sitting of the “Kazakhstan-Spain” Business Council. More than 40 Spanish and 60 Kazakhstani companies took part in the negotiations within the meeting. In the course of the event, the Spanish side informed that it is ready to invest into the construction of waste recycling plants in Kazakhstan. What did they also discuss? And which documents were signed following the sitting? Read more in the review material of the Information Agency.

The objective of the Fifth meeting of the “Kazakhstan-Spain” Business Council is to intensify cooperation in the field of entrepreneurship, as well as to attract Spanish investments in the domestic economy.

During the meeting, the Council members shared their experience and opinions on the opportunities for doing business in Kazakhstan. At the same time, special emphasis was placed on Kazakhstan’s policy aimed at improving financial instruments for supporting business, protecting investments and ensuring equal conditions for domestic and foreign companies.

Aidar Arifkhanov, co-chairman of the Business Council from the Kazakh side, Chairman of the Board of “Baiterek” Holding JSC, noted that more than 40 leading Spanish and 60 Kazakhstan’s companies took part in the negotiations within the “Kazakhstan-Spain” Business Council.

“We focus our partners’ attention on the measures Kazakhstan takes to create comfortable investment environment and implement joint projects. Engineering and technology transfer, transport and infrastructure, energy and environment, agriculture and food industry are priority areas for us”, Aidar Arifkhanov stressed.

In turn, co-chairwoman of the Kazakhstan-Spain intergovernmental commission, State Secretary for Trade of Spain, Ms Mendez Bertolo Xiana Margarida, confirmed the high interest of the Spanish businessmen to Kazakhstan’s projects.

“There are many Spanish companies on the Kazakhstan market, which have been successfully working here for a long time. Our task is to attract new companies to Kazakhstan and strengthen our trade cooperation. It is also important to create joint ventures and implement joint projects, especially those related to public-private partnerships”, X. Mendez said.

Note that trade turnover between Kazakhstan and Spain grew by a quarter in 2017 and amounted to 1 billion 700 million dollars.

“At the end of 2017, the growth of mutual trade between Kazakhstan and Spain amounted to more than 26%. Of course, these are small figures, but we see that there is growth, there is potential. In the view of formation of a new model of growth and industrialization in Kazakhstan, we have a great potential for establishing bilateral relations”, vice minister of national economy Asset Irgaliyev said, welcoming the guests of the 5th meeting of the “Kazakhstan-Spain” Business Council.

According to him, today more than 40 Spanish companies are present on the market of Kazakhstan. They mainly work in the fields of energy, construction, agriculture, medicine, education, automotive industry, as well as military-technical and cultural-humanitarian cooperation.

Additionally, within the framework of today’s meeting the Kazakhstani and Spanish sides signed several memoranda. One of them is about mutual understanding between Baiterek National Managing Holding and the State Secretariat for Trade of the Kingdom of Spain. It is aimed at potential cooperation in maintenance, implementation and co-investment of industrial and infrastructure projects. Also, Baiterek agreed to cooperate with COFIDES on financing of export and investment operations, which are of mutual interest not only in Kazakhstan, but also in neighboring countries.

Also within the framework of the forum, Kazakhstan Project Preparation Fund LLP (a subsidiary of Baiterek Holding Company) and E-Zhasyl LLP signed a Memorandum of Understanding aimed at cooperation with the Spanish side in the construction of waste processing plants in Kazakhstan.

Baiterek National Holding will help the Spanish side work with local administrations, develop feasibility studies.

The Spanish company will start analyzing waste morphology in each city and will make preliminary financial calculations. It works with nine local administrations, including Shymkent, Almaty, Aktobe, Atyrau. The cost of the plant varies from 20 million to 40 million euros. Its cost depends on the volume of wastes and necessary processing chains. The parties are expected to hold final talks next spring.

“The Spanish companies are ready to invest but each investment project needs bank financing. To minimize exchange risks Baiterek Holding via Kazakhstan Development Bank is ready to suggest financial banking in local currency terms”, Adil Utembayev, Chairman of Kazakhstan Project Preparation Fund, resumed.

It should be noted that the event was attended by representatives of the Ministries of National Economy and Agriculture of Kazakhstan, Baiterek National Managing Holding, Samruk-Kazyna Fund, Kazakh Invest JSC, Atameken National Chamber of Entrepreneurs, Nazarbayev University, “Astana” International Financial Center, heads of state trade organizations and the largest companies of the two countries.

Source: Kazakhstan 2050