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THE STATE PROGRAM on Industrial Development of Kazakhstan for 2015-2019

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THE STATE PROGRAM on Industrial Development of Kazakhstan for 2015-2019 Approved by the Decree of the President of the Republic of Kazakhstan No, _____ dated " " 2014 THE STATE PROGRAM on industrial development of Kazakhstan for 2015-2019 Astana, 2014 CONTENT CONTENT…………………………………………………………………………… 2 INTRODUCTION…………………………………………………………………… 7 1 ANALYSIS OF THE CURRENT SITUATION………………………………....8 1.1 Analysis of the current situation on industrial development in the Republic of Kazakhstan………………………………………………………………8 Industry regulation…………………………………………………………………..10 Internationalization…………………………………………………………….........1 0 Technology and Innovation………………………………………..……………......11 Financial resources. Funding model. ………………………………………………13 Infrastructure…………………………………………………………………….......1 3 Human Resources……………………………………………………….…………..14 State procurements…………………………………………………………………..14 Entrepreneurship and SMEs…………………………………………………….......15 Promotion of competition……………………………………………………....…...15 1.2 Global trends in industrial development................................................16 1.3 Review of international experience in industrial development..............17 1.4 Scenario of industrial development of Kazakhstan................................18 1.5 SWOT- analysis…………………………………...……………………19 1.6 Selection of priority sectors....................................................................20 2. GOALS, OBJECTIVES, BENCHMARKS AND PERFORMANCE RESULTS OF THE PROGRAM…………..……………………………………….21 2.1 Goals, objectives and general benchmarks of industrial development of Kazakhstan till 2020. …………….…………………………………………………21 2.2 Goals, objectives and benchmarks in priority sectors…………………22 2.2.1 Ferrous metal industry……………………………………………….23 2.2.2 Non-ferrous metal industry…………………………………….…….32 2.2.3 Oil refining………………………………………………………………….....44 2.2.4 Petrochemicals……….………………………………………………………..55 2.2.5 Food production………………………………..……………………………...64 2.2.6 Agrochemicals………………………………………………………………...73 2.2.7 Implementation of the projects. Manufacturing of chemicals for industry……………………………………………………………………………...8 1 2.2.8 Motor vehicles, their parts, accessories and engines production………..........90 2.2.9 Electrical equipment…………………………………………………………..98 2.2.10 Production of agricultural machinery……………………………..………...107 2.2.11 Manufacturing of railway equipment……………..………………………..125 2.2.12 Production of machines and equipment for the mining industry……………135 2.2.13 Production of machines and equipment for the oil refining and oil industry……………………………………………………………………...……...14 2 2.2.14 Production of building materials…………………………………………….154 2.3. Goals, objectives and benchmarks in innovative sectors……….........169 2.3.1. Innovative sector…………………………...………………………169 2.3.2. Space industry……………………………………………………..170 3. MAIN AREAS, ROADS TO THE PROGRAM'S OBJECTIVES AND ASSOCIATED MEASURES. …………………………………………….………179 3.1 System-wide measures to support industrial development……………183 3.1.1 Industry regulation…………………………………………….…….183 3.1.2 Internationalization……………………………………….…………18 5 3.1.3 Technology and Innovation…………………………………………188 3.1.4 Financial resources.Funding model………………………………..191 3.1.5 Infrastructure…………………………………………….………….19 2 3.1.6 Human Resources…………………………………..……………….193 3.1.7 State and other procurements…………………………...…………..195 3.1.8 Entrepreneurship and Small and Medium Business………….........195 3.1.9 Promotion of competition………………………………………..…196 3.2 Regional aspects of supporting the development of the manufacturing industry……………………………………………………….………………….…19 7 3.2.1. Ensuring balanced development of the manufacturing industry in the regions……………………………………………………………………………..19 8 3.2.2. Specialization of manufacturing in the regions…………………………….199 3.3 Priority and other industrial sectors. Enterprises support………….….224 4 MECHANISM, CONTROL AND MONITORING OF THE PROGRAM IMPLEMENTATION…………………………………………………………..…23 0 4.1 Mechanisms for implementation of the Program………………….....230 4.2 Managing the implementation of the Program……………………….231 4.2 Monitoring the implementation of the Program………………………233 5 IMPLEMENTATION PHASES OF THE PROGRAM…………….....233 6 RESOURCES REQUIRED…………………………………………….234 7 EXPECTED RESULTS OF INDUSTRIAL DEVELOPMENT OF KAZAKHSTAN TILL 2020. …………………………………………….………..236 8 DEFINITION OF THE TERMS:……………………………………….237 Passport of the Program Name State Program on industrial development of the Republic of Kazakhstan for 2015 - 2019 Foundation for Decree of the President of the Republic of Kazakhstan No. 922 development dated February 1, 2010 "On the Strategic Plan of the Republic of Kazakhstan Development till 2020" Address by the President of the Republic of Kazakhstan dated December 14, 2012 "Strategy Kazakhstan-2050”: new political course of the established state” Address by the President of the Republic of Kazakhstan dated January 17, 2014 "Kazakhstan’s way – 2050: common aim, common interests, common future" Order of the President, given at the XXVI-th plenary session of the Foreign Investors Council under the President of the Republic of Kazakhstan, Executive Officer Ministry of Industry and New Technologies of the Republic of Kazakhstan Goal Promote diversification and competitiveness of the manufacturing industry. Objecties 1) Advanced development of the manufacturing industry; 2) Improving the efficiency and added value in the priority sectors; 3) Increase in non-oil exports; 4) Preservation of productive employment; 5) Giving a new level of adaptability to the priority sectors of the manufacturing industry and providing a basis for future sector development through the formation of innovation clusters; 6) Promotion of entrepreneurship and development of small and medium-sized businesses in the manufacturing industry. Implementation 2015-2019 term Benchmarks Increase from the level of 2012: 1) Gross added value in manufacturing not less than 1.5 in real terms. 2) labor productivity in the manufacturing 1.3 times in real terms. 3) value of non-commodity (processed) export not less than 1.1 times. 4) employment in manufacturing by 29.3 thousand people. 5) reduction of energy consumption in manufacturing by at least 15% compared to 2012 Sources and Total expenditures envisaged in the Republican budget for amounts of funding implementation of the Program for 2015-2019 will be 1 717 billion tenge, including: 2015 - 309 billion tenge * 2016 - 291 billion tenge * 2017 - 400 billion tenge * 2018 - 371 billion tenge * 2019 - 346 billion tenge * * - The sums will be adjusted in accordance with the state budget for the relevant financial year INTRODUCTION The State program on industrial-innovative development of Kazakhstan for 2015-2019 (hereinafter - the Program) is designed in accordance with the long-term priorities of the Strategy "Kazakhstan-2050" for the implementation of key direction "Accelerating economic diversification" of the Strategic plan for development of the Republic of Kazakhstan until 2020. It is pursuant to the instructions of the President given on the XXVI-th plenary session of the Foreign Investors Council under the President of the Republic of Kazakhstan, and as part of the Address of the President of the Republic of Kazakhstan to the People of Kazakhstan "Kazakhstan's way - 2050: common aim, common interests, common future" dated January 17, 2014. The Program is a logical continuation of the State program on forced industrial-innovative development of Kazakhstan for 2010-2014 (SPFIID) and takes into account the experience of its implementation. The Program is part of an industrial policy of Kazakhstan and focuses on developing the manufacturing industry with concentration of efforts and resources on a limited number of sectors, regional specialization using the cluster approach and the effective regulation of the industry. The Program is developed on the basic principles and approaches of the Concept of industrial-innovative development of Kazakhstan for 2015 - 2019, approved by the Resolution of the Government of the Republic of Kazakhstan No. 1497 dated December 31, 2013. It accounts for the principles and provisions of the Concept of Innovation Development of Kazakhstan till 2020, approved by the Decree of the President of the Republic of Kazakhstan No. 579 dated June 4, 2013, the Concept on formation of promising national clusters of Kazakhstan till 2020, approved by the Regulation of the Government of the Republic of Kazakhstan No. 1092 dated October 11, 2013and other program documents in the field of industrialization. Implementation of this Program depends on the success of attracting foreign direct investment in manufacturing, the share of budget funds in the total amount of funding required amounts 20%. The Program is sensitive to the public policy aspects affecting the business climate. Success of the Program will depend on the achievement of the Republic of Kazakhstan of tasks set to improve the business environment (Doingbusiness), increasing the country's competitiveness (Globalcompetetivnessindex), reduction of the state involvement in the economy through a planned privatization based on the principle of Yellowpages, Kazakhstan ranking by FDIConfidenceIndex. It is necessary to develop a Program on social and economic development of the country till 2020 to address these challenges and define the priorities of the state economic development. Furthermore, the Program's efficiency depends on the completeness and timeliness of budgetary allocations for its implementation. 1 ANALYSUS OF THE CURRENT SITUATION 1.1 Analysis of the current situation of industrial development in the Republic of Kazakhstan During implementation
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