Japan International Cooperation Agency (JICA) Local Government of Mangistau Oblast Government of the Republic of Kazakhstan MASTER PLAN STUDY ON INTEGRATED REGIONAL DEVELOPMENT FOR MANGISTAU OBLAST IN THE REPUBLIC OF KAZAKHSTAN FINAL REPORT VOLUME II MAIN REPORT August 2008 RECS International Inc. Yachiyo Engineering Co., Ltd. Currency Equivalents (average Interbank rates as of January 6, 2008) US$1.00=KZT 122.200 US$1.00=JPY 108.652 JPY 1=KZT 1.12570 Source: OANDA.COM, http://www.oanda.com. Kazakhstan with Administrative Divisions Location of Mangistau Oblast in the Pan-Caspian Sea Economic Cooperation Area Area Cooperation Sea Economic the Pan-Caspian in Oblast Mangistau of Location Master Plan Study on Integrated Regional Development for Mangistau Oblast in the Republic of Kazakhstan Final Report Volume II. Main Report Table of Contents Chapter 1 Introduction............................................................................................................... 1-1 1.1 Background to the Study ................................................................................................. 1-1 1.1.1 Study authorization............................................................................................. 1-1 1.1.2 Study objectives.................................................................................................. 1-1 1.1.3 Study Area.......................................................................................................... 1-1 1.2 Work Progress.................................................................................................................. 1-2 1.2.1 Inception works .................................................................................................. 1-2 1.2.2 Stage 2 and Stage 3 works.................................................................................. 1-2 1.2.3 Stage 4 works ..................................................................................................... 1-3 1.2.4 Stage 5 works ..................................................................................................... 1-4 1.2.5 Study finalization................................................................................................ 1-5 1.3 Guide to the Master Plan Report ..................................................................................... 1-5 Chapter 2 Socio-economy of Kazakhstan.................................................................................. 2-1 2.1 Macro Socio-economic Performance since Independence .............................................. 2-1 2.1.1 Socio-economic development since independence ............................................ 2-1 2.1.2 Balance of payment and investment................................................................... 2-3 2.2 External Trade Structure and Relationships .................................................................... 2-5 2.2.1 External trade development and structure .......................................................... 2-5 2.2.2 Major trade commodities.................................................................................... 2-6 2.3 Position and Characteristics of Kazakhstan’s Socio-economy...................................... 2-17 2.3.1 Position of Kazakhstan’s socio-economy......................................................... 2-17 2.3.2 Characteristics of Kazakhstan’s socio-economy .............................................. 2-18 Chapter 3 Position of Mangistau Oblast in Kazakhstan’s Development ................................... 3-1 3.1 Regional Economic Structure and Mangistau’s Position................................................. 3-1 3.1.1 Regional economic structure .............................................................................. 3-1 3.1.2 Mangistau’s position........................................................................................... 3-3 3.1.3 Prospects of Mangistau Oblast ........................................................................... 3-5 3.2 Mangistau Oblast in Commodity Flow and External Trade ............................................ 3-7 3.2.1 Freight transport in Kazakhstan and Mangistau Oblast...................................... 3-7 3.2.2 Commodity flow through railway in Kazakhstan and Mangistau...................... 3-8 3.2.3 Commodity flow in Mangistau Oblast ............................................................. 3-15 3.2.4 External trade of Mangistau Oblast.................................................................. 3-17 3.3 Spatial Development Structure and Mangistau’s Position............................................. 3-20 3.3.1 Characteristics of macro regions ...................................................................... 3-20 3.3.2 Position in international and national transport systems .................................. 3-21 3.4 Mangistau’s Position and Prospects in the Surrounding Regional Context................... 3-25 3.4.1 Size of socio-economies in the surrounding countries/regions ........................ 3-25 3.4.2 Accumulation of industries in the surrounding countries/regions.................... 3-26 3.4.3 Current and future macroscopic products flow in the surrounding zone.......... 3-28 3.4.4 Envisaged potential products and markets for Mangistau Oblast..................... 3-33 Chapter 4 Development Diagnosis by Rayon of Mangistau...................................................... 4-1 4.1 Aktau ............................................................................................................................... 4-1 4.1.1 Existing conditions ............................................................................................. 4-1 4.1.2 Constraints.......................................................................................................... 4-3 4.1.3 Prospects............................................................................................................. 4-3 4.2 Munaylinsky.................................................................................................................... 4-4 4.2.1 Existing conditions ............................................................................................. 4-4 4.2.2 Constraints.......................................................................................................... 4-5 4.2.3 Prospects............................................................................................................. 4-6 i Master Plan Study on Integrated Regional Development for Mangistau Oblast in the Republic of Kazakhstan Final Report Volume II. Main Report 4.3 Zhanaozen........................................................................................................................ 4-6 4.3.1 Existing conditions ............................................................................................. 4-6 4.3.2 Constraints.......................................................................................................... 4-7 4.3.3 Prospects............................................................................................................. 4-8 4.4 Beineu.............................................................................................................................. 4-8 4.4.1 Existing conditions ............................................................................................. 4-8 4.4.2 Constraints.......................................................................................................... 4-9 4.4.3 Prospects........................................................................................................... 4-10 4.5 Karakiya ........................................................................................................................ 4-10 4.5.1 Existing conditions ........................................................................................... 4-10 4.5.2 Constraints........................................................................................................ 4-11 4.5.3 Prospects........................................................................................................... 4-12 4.6 Mangistau ...................................................................................................................... 4-12 4.6.1 Existing conditions ........................................................................................... 4-12 4.6.2 Constraints........................................................................................................ 4-14 4.6.3 Prospects........................................................................................................... 4-14 4.7 Tupkaragan .................................................................................................................... 4-15 4.7.1 Existing conditions ........................................................................................... 4-15 4.7.2 Constraints........................................................................................................ 4-16 4.7.3 Prospects........................................................................................................... 4-17 Chapter 5 Objectives and Strategy for Mangistau Regional Development ............................... 5-1 5.1 Objectives and Basic Strategy ......................................................................................... 5-1 5.1.1 Problem structure of Mangistau Oblast.............................................................. 5-1