1 / 27

Samruk-Kazyna National Welfare Fund Investment opportunities

Samruk-Kazyna National Welfare Fund Investment opportunities. July 2010. Samruk-Kazyna. Overview National Welfare Fund consolidates key state assets in more than 400 subsidiary companies Key player of the industrial and innovation development program

libitha
Download Presentation

Samruk-Kazyna National Welfare Fund Investment opportunities

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Samruk-KazynaNational Welfare FundInvestment opportunities July 2010

  2. Samruk-Kazyna • Overview • National Welfare Fund consolidates key state assets in more than 400 subsidiary companies • Key player ofthe industrial and innovation development program • Effective tool in implementation of the Anti-crisis program: • primary role in stabilization of financial sector by means of direct participation in 4 largest commercial banks of the country • primary role in stabilization of the real estate market • direct support of the small and medium size businesses • manages mortgage refinance program • Main objectives • Achieving sustainable growth of state economy • Promoting modernization and diversification of state economy • Increasing the effectiveness of the holding and all of its affiliates • Promoting and implementing large-scale investment projects 2

  3. Samruk-Kazyna • Main assets

  4. Oil & Gas • Overview • Oil and gas sector – 30% of Kazakhstan’ s GDP • Proved oil reserves - 6.5 bn tons • Gas reserves – 7 trillion cubic meters (3.9% of world reserves) • The production of oil in Kazakhstan has increased by 52% (2002-2009) while the production of gas has increased by 37% in the same period • Samruk-Kazyna participation in the sector • KazMunayGas - vertically integrated national oil and gas company • Development perspectives • Production growth due to field developments (Kashagan, Khvalynskoye, Block N etc.) • Transport infrastructure development – launch of Trans-Caspian Transportation System, “Kazakhstan-China” pipeline’s extension, construction of “Beineu-Shymkent” gas pipeline, Aktau port’s development • Development of local refinery capacities up to 17 mln tons / processing upgrading • Development of petrochemical branch • Investment opportunities* • Atyrau Oil Refinery - Oil deep processing Complex construction ($1.1 bn) • Pavlodar Oil Refinery ($1 bn) • Construction of petrochemical plant in Atyrau ($6.3 bn) *More information about investment projects – in annex

  5. Power • Current trends • Considerable gap in electricity supply between energy excessive northern regions of Kazakhstan and energy-dependent southern regions of the country • Local production capacities are depreciated by almost 70% • Competitive advantage • Access to low-cost fuel due to large local reserves of coal, oil and gas • Opportunity to develop renewable energy resources • Development perspectives • Construction of 6 new thermal power plants (coal or nuclear) until 2030 • Construction of new hydropower plants • Samruk-Kazyna participation in the sector • Samruk-Energy- operates major power plants in Kazakhstan • KEGOC- operates the national power grid, owns and operates all main and interregional transmission lines and master substations across the country • Investment opportunities • Balkhash thermal power station ($2.4 bn) • Electricity consumption in Kazakhstan (forecast), bn kWth 2009 2024 138 125 98 Pessimistic 78,4 Basic +25% +60% +76% Optimistic

  6. Transportation& Telecommunications • Overview • Strategic geographical location • High dependence of the economy on transport infrastructure • Samruk-Kazyna participation in the sector • Kazakhstan Temir Zholy - national company, monopoly railway operator • Air Astana - leading domestic airline • Kazakhtelecom - major player on the telecommunication market • Investment opportunities • Production of passenger rail carriers ($60 mln) • Construction of the railway Zhetygen – Korgas (border with China) ($1.1 bn) • Construction of the railway Uzen – border with Turkmenistan ($433 mln) Freight turnover in Kazakhstan, bn tkm Passenger turnover in Kazakhstan bn pkm

  7. Metals& Mining • Overview • Large reserves of Uranium, Lead, Zinc, Gold, Coal • 2008: production of ferrous metals - $4.5 bn • production of precious and non-ferrous metals – $ 4.4 bn • Share of metals and mining sector in total industrial production of Kazakhstan – 20% • Objective – production of high value added products • Samruk-Kazyna participation in the sector • Tauken-Samruk -national mining company • Kazatomprom - national nuclear company, implements the industry development program of Kazakhstan aimed at creation of a vertically integrated complex of nuclear fuel cycle • Investment opportunities • Upgrade of cast iron plant ($457 mln) • Steel rails production ($309 mln) • Polycrystalline production ($388 mln)

  8. Chemicals • Resources • Kazakhstan is 11th in the world in mineral production • Second largest proved supplies of sulfuric acid in the world • Kazakhstan possesses 1/3 of proved phosphorite reserves in CIS and over 5% of world reserves • Current trends • Growing demand for fertilizers in Russia and China • Annual chemicals production grew 2,6 times in 2004-2008 years period • Local companies produce phosphorus, sodium bichromate, phosphoric fertilizers, nitric fertilizers, chromic compounds, plastics, tires, general mechanical rubber goods • There is a potential of products diversification (organic and nonorganic chemical products, special chemicals) • Samruk-Kazyna participation in the sector • United Chemical Company - consolidates state assets in chemical sector • Investment opportunities • Mineral fertilizers – Kok-Dzhon ($1.9 bn) • Construction of phosphorite fertilizers plant ($600 mln) • Sulphuric Acid production ($65 mln)

  9. Pharmaceuticals • Current trends • Market size – around $900 mln • Growing local consumption – 20% average annual growth • Local production is growing, but covers only 10% of domestic market • 90% of consumed pharmaceuticals are imported • Samruk-Kazyna participation in the sector • SK Pharmacy - national medicine and medical equipment distribution company • Key advantages • Growth of domestic production • Transparency in government purchases • Demand for improved quality of products • Investment opportunities • Construction of pharmaceuticals plant in Astana and expansion of production in Shymkent ($81 mln) • National medicine and medical equipment distribution company ($80 mln) 9

  10. Annex Investmentprojects 10

  11. List of projects for potential investors 11

  12. Atyrau Oil Refinery Oil deep processing Complex construction • Background • Total project cost: $1.1 bn • Capital structure: equity - $1 mln, debt - $1,099 mln • Implementation period: 2011-2014 • Key project advantages • High value added production: • Increase in processing depth up to 82% • Production of high-octane refined products • High ecological standards: Euro - V • Domestic market’s share increase for high-octane oil products • Manpower: construction – 2507, maintenance - 391 • Investment Opportunities • Debt financing 12

  13. Pavlodar Oil Refinery • Background • Reconstruction and modernisation of Pavlodar Oil Refinery to increase annual production capacity to: • motor fuel – 2 million tons • jet fuel – 132 thousand tons • diesel fuel – 2 million tons • fuel oil – 252 thousand tons • Total project cost: $1 bn • Implementation period: 2011-2013 • Key project advantages • High value added production • Production of high-octane refined products • High ecological standards: Euro - III, IV • Domestic market’s share increase for high-octane oil products • Manpower: construction – 3100 • Investment Opportunities • Debt financing 13

  14. Petrochemical plant in Atyrau • Background • Construction of a petrochemical plant with annual production capacity: • 1 stage: polypropylene 800 thsd tons • 2 stage: polyethylene 450 thsd tons • Total project cost: $6.3 bn • Capital structure: 27% equity, 73% debt • Implementation period: 2009-2012 • Key project advantages • High value added production • High profitability margins (over 50% EBITDA, over 20% net income margin) • Manpower: construction – 12000, maintenance – 800 • Investment Opportunities • Debt financing • Equity 14

  15. Balkhash thermal power station • Background • Construction of one 1320 MWt module is under consideration • Possible further extension up to 4000 MWt • Total project cost: $2.4bn • Capital structure: equity 30%, debt 70% • Implementation period: 2010 – 2014 • Key project advantages • Meet the demand for electricity in Almaty region • Low production costs • Investment opportunities • Debt financing

  16. Rail Passenger Carriers • Background • Production of rail passenger carriers • Total project cost: $60 mln • Quantity: 150 units per year • Implementation period: 2010-2012 • Key project advantages • Creation of carrier assembling line to meet the growing demand in passenger carriers on the domestic market • Investment Opportunities • Debt financing 16

  17. Construction of the railway Zhetygen - Korgas • Background • Construction of a railroad connecting Almaty region with the Chinese border in Korgas • Total length – 293 km • Passenger and freight transportation • Total project cost: $1.1 bn • Capital structure: 45,8% equity, 54,2% debt • Implementation period: 2009-2012 • Key project advantages • Strategic infrastructure concession project • Risks shared with public authorities • Investment Opportunities • Debt financing (45%) 17

  18. Construction of the railway Uzen – border with Turkmenistan • Background • Construction of the new railway road near Caspian sea (Uzen-Gyzylgaya-Bereket-Etrek-Gorgan) with further link with Russian railroad network • Total length – 670 km, Kazakhstan’ s part – 138,5 km • Passenger and freight transportation • Total project cost: $433 mln • Capital structure: 47,2% equity, 52,8% debt • Implementation period: 2009-2012 • Key project advantages • Strategic infrastructure concession project • Risks shared with public authorities • Investment Opportunities • Debt financing (31%) 18

  19. Cast iron plant • Background • Construction of metallurgy plant SBS Steel for production of cast iron in Aktobe region • 500 thsd tons of granulated iron annually • Total project cost: $457mln • Implementation period: 2010 – 2012 • Key advantages • Strengthening export potential of Kazakhstan • Production of high quality iron based on the unique patented KOBE Steel technology • Manpower: construction – 1800-2300, maintenance - 500 • Investment Opportunities • Debt financing 19

  20. Steel Rails Production • Background • Production of steel rails and rolled steel at KSP Steel metallurgy plant • 200thsd tons annually • Total project cost: $309 mln • Capital structure: 20% equity, 80% debt • Implementation period: 2010-2013 • Key advantages • Meet the growing local demand • Manpower: construction – 1000, maintenance - 106 • Investment Opportunities • Debt financing $247 mln 20

  21. Production of polycrystalline silicon • Background • Creation of silicon cluster on manufacture of mono/poly crystal ingots and silicon plates: • 2500 tons of polycrystalline silicon • Total project cost: $388 mln • Capital structure: 30% equity, 70% debt • Implementation period: 2010 – 2013 • Key project advantages • Well-positioned to supply European and Asian markets • Competitive advantage via long-term access to low-cost raw materials • High value added production • High profitability margins (sales of $594 mln a year) • Competitive advantage due to low transportation costs • Advanced stage of project planning • Feasibility studies and technical specifications completed by leading consultants • Development Bank of Kazakhstan commenced $150 mln loan guarantee for plant construction • Investment Opportunities • Debt financing $50 mln • Equity 21

  22. Mineral Fertilizers Production • Background • Construction of mineral fertilizers producing plant combined with Kok-Djon (Aral-Tobe and Kisik-Tobe sites) and Gimmelfarbskoe deposits • Production of mineral fertilizers -1 mln tones • Products:potassium phosphate, NPK fertilizers, yellow phosphorus,phosphoric acid, reactive compounds • Total project cost: $1.9bn • Expected launch: 2018 • Key project advantages • Availability of natural resources • Low production costs • Meeting 100% local demand on mineral fertilizers of high quality and exporting • Manpower: 5000 • Investment opportunities • Equity • Debt financing 22

  23. Phosphorite Fertilizers Production • Background • Construction of phosphorite tails and low-grade ore processing plant • Production capacity of 1mln tons of phosphorite fertilizers annually • Total project cost: $600 mln • Expected launch: 2010 • Key project advantages • Availability of unique technology to produce phosphorite fertilizers from low-grade ore • Large reserves (over 500 mln tons) of low-grade ore • Proximity and access to markets in China • Strong competitive advantage – the lowest production cost • Ability to produce highly-enriched fertilizers and develop production of NPK fertilizers jointly with KazAzot • Investment Opportunities • Debt financing • Equity • Equipment & Technologies 23

  24. Sulphuric acid production • Background • Reconstruction of sulphuric acid plant on the base of SGHK Ltd aiming to provide Kazatomprom’s uranium producing entities with sulphuric acid • 180 thsd tons annually • Total project cost: $69 mln • Capital structure: 31% equity, 69% debt • Implementation period: 2010 - 2012 • Key advantages • Low cost of raw materials • Manpower: construction – 300, maintenance – 141 • Investment Opportunities • Debt financing 24

  25. Pharmaceuticals plant • Background • Construction of a pharmaceuticals plant in Astana and expansion of current production of ChimPharm (Shymkent) • Total project cost: $81 mln • Capital structure: $30 mln- equity, $51 mln – debt • Implementation period: 2009 - 2011 • Key advantages • Growing local demand • Growing local production on the Kazakhstan’s pharmaceutical market from 10% to 25% • Creating innovative, science intensive and export oriented production (turnaround) • Manpower: construction – 1000, maintenance - 300 • Investment Opportunities • Equity • Debt financing • Technologies 25

  26. National medicine and medical equipment distribution company • Background • Creation of integrated medicine and medical equipment distribution system • Total project cost: $ 80 mln • Expected launch: 2009–2010 • Key project advantages • Growing market • Development of local pharmaceutical industry • Transparency in government pharmaceutics procurement, effective system of transport and logistics • Investment Opportunities • Debt financing for a logistics system construction • Medications supply to Kazakhstan 26

  27. Contacts: Republic of Kazakhstan Astana , Orynbor street 10,«Kazyna Tower» info@skinvest.kz www.samruk-kazyna.kz

More Related