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Zh. Kassymbek: The implementation of IIDSP contributed to an increase in the volume of manufacturing by 5.7%

by March 27, 2018 Legal

The results of the implementation of the Industrial and Innovative Development State Program for 2017 were considered today at a Government meeting chaired by the Prime Minister Bakytzhan Sagintayev.

Minister of Investments and Development Zhenis Kassymbek reported that the successful implementation of IIDSP in 2017 contributed to a growth in the manufacturing industry of 5.7% compared to the 2015 figures. The growth was mainly due to increased production in metallurgy, oil refining, chemical industry, pharmaceuticals, and food production.

Exports in manufacturing industry in 2017 grew 10.5% compered to 2015 and amounted to 15.5 billion USD. The volume of investments in manufacturing in 2017 increased 8.8% compared to 2015 and amounted to 981.6 billion tenge.

Within the framework of the State Program, in three years 378 projects were completed for the amount of more than 3 trillion tenge, more than 30 thousand permanent jobs were created. In 2017, 120 projects were completed amounting to 1.5 trillion tenge with the creation of 10 thousand permanent jobs.

According to Minister Zhenis Kassymbek, in 2018 such industrial projects will be put into operation as the railway wheels production complex of Prommashkomplekt LLP, the plant for the production of large diameter steel welded pipes of LLP Asia Steel Pipe Corporation and others. In general, by the end of 2018 it is planned to complete 150 new projects worth more than a trillion tenge with the creation of about 15 thousand permanent jobs.

With a view to executing the instructions of the Head of State, given in his Address to the People of Kazakhstan, we began working out the Concept of Industrial and Innovative Development of the Republic of Kazakhstan for 2020-2024. We will finish this work before the end of 2018,Zhenis Kassymbek summed up.

For reference: According to the Ministry of Investments and Development of the Republic of Kazakhstan, to date, Kazakhstan’s manufacturing products are exported to 122 countries around the world, one-third of the exported products is accounted by the non-primary sector of the economy. There is observed a 30% growth of exports of Kazakhstani products to the countries of Central Asia. The total volume of exports to these countries was 1.5 billion USD. Kazakhstan is among the top five suppliers and occupies 8% of imports of these countries.

Products of the food industry and agro-industrial complex are in great demand abroad, the total volume of exports amounted to 1.6 billion USD. In particular, export launched of meat and poultry products to Afghanistan, the United Arab Emirates and Iran, vegetable oil and honey to China. Annually more than 380 exporters receive financial and service support.

In order to introduce the elements of Industry 4.0 into manufacturing, it is necessary to ensure the improvement and development of new tools for the modernization and digitization of domestic enterprises with an emphasis on the export and transfer of technologies. In parallel, projects will be implemented to introduce Industry 4.0 technologies at the strategic enterprises of MMC.

Minister of Energy Kanat Bozumbayev and Minister of National Economy Timur Suleimenov also delivered reports on the results of the implementation of IIDSP in 2017.

With regards to energy, six major projects are being implemented within the framework of the state program. The first project is Production of K5 motor fuel. In 2017, production of high-octane gasoline of AI-92 grade amounted to 63.45 thousand tonnes, AI-95 3.23 thousand tonnes. The modernization project of Pavlodar refinery was completed.

The project goal was achieved: production of motor fuels of ecological classes K4, K5, production of 100% high-octane gasoline was launched. The capacity of the plant allows processing West Siberian oil in the volume of 5.5 million tonnes per year, as well as Kazakhstani oil up to 4.7 million tonnes per year. From the second half of 2018, after certification, the production of aviation fuel will be set at about 13 000 tonnes per month, K. Bozumbaev said.

With regards to reconstruction and modernization of the Shymkent oil refinery in June 2017, the first stage was completed. By the end of 2018, the second stage of the project will be completed – this will increase oil refining efficiency up to 87-90%.

Currently, pre-commissioning activities are underway for the reconstruction and modernization of the Atyrau oil refinery. After modernization, the volume of production of high-octane gasoline will increase by 2800 tonnes per day, diesel fuel – by 900 tonnes per day.

A project for production of polypropylene with the capacity of 500 thousand tonnes is being implemented. Construction will begin this year. The construction is scheduled for completion in 2021. Up to 3000 jobs will be created for the duration of construction.

Minister of National Economy Timur Suleimenov, in turn, noted that the evaluation of the implementation of IIDSP for a three-year period (2015-2017) was carried out in three areas: this is the quality of planning, the results achieved, and socio-economic impact.

Taking into account that the values for the target indicators were not revised during the implementation of the Program, the quality of the Program planning deserves recognition, Timur Suleimenov noted.

The level of achievement of the target indicators and IIDSP indicators is 78%, and the IIDSP Action Plan 85%. According to the report of the Ministry of Investment and Development, the level of utilizaiton of the Program budget is 99%.

Deputy Chairman of the Samruk-Kazyna NWF Board Alik Aydarbayev also spoke in the course of consideration of the issue.

At the same time, reports on the progress of IIDSP in the regions were delivered by regional Akims: Kyzylorda region K. Kusherbayev, Akmola region M. Murzalin, Aktobe – B. Saparbayev, and Deputy Akim of Astana – S. Horoshun.

Source: Government of the Republic of Kazakhstan