Mangystau Governor’s Office

1. Mangystau Governor’s Office ECONOMIC AND INVESTMENT POTENTIAL OF THE MANGYSTAU REGION OF THE REPUBLIC OF KAZAKHSTAN

2. I. General information about the region 1A. TRANSPORTATION NETWORK – AIRWAYS DESTINATIONS FROM THE AKTAU AIRPORT

3. I. General information about the region 1B. TRANSPORTATION NETWORK – SEA AND RAILROAD SEA AND RAILROAD ROUTES IN THE CASPIAN REGION

4. I. General information about the region 2. AREA AND POPULATION MANGYSTAU REGION – one of the most important areas of Kazakhstanthat plays an integral role in the socio-economic development and modernization of the country. Located in the southwest of Kazakhstan, on the East coast of the Caspian Sea. Area of the region= 166 thousand sq. kilometers (≈ 64 thousand sq. miles) (≈6% of the total area of Kazakhstan) Population≈ 546 thousand people (in 2011) Capital – Aktau(population ≈ 200thousandpeople) The region includes 2 main cities (Aktau and Zhanaozen) and 5 rural areas.

5. I. General information about the region 3. GROSS REGIONAL PRODUCT AND POPULATION GROWTH Gross Regional Product (GRP) per capita in 1 quarter 2012 (in U.S. dollars) GRP and population growth Kazakhstan average = $2 429

6. I. General information about the region 4. CAPITAL INVESTMENT AND MANUFACTURING ACTIVITY CAPITAL INVESTMENT per capita, January-July 2012 (in U.S. dollars) MANUFACTURING ACTIVITY Mangystau region accounts for 13,6% of the country’s manufacturing activity

7. I. General information about the region 5. GROWTH OF ENTREPRENEURIAL ACTIVITY Number of registered small businesses and % of population employed by the small businesses

8. II. Innovation-focused development 1. “SMART” REGION MANGYSTAU Core elements of the concept • Systemic approach to the innovative activity in the region • Focus on the innovative technologies in manufacturing and agriculture • Transparency for local and international investors • Increasing the level of innovative and technological development Examples of the leading “smart” regional programs 8

9. II. Innovation-focused development 2. REGIONAL DEVELOPMENT PRIORITIES Coastline infrastructure Utilities and engineering infrastructure Oil and gas services «SMART» REGION Special economic zone “Seaport Aktau” Transportation infrastructure Tourism 9

10. III. Regional development priorities 1. COASTLINE INFRASTRUCTURE MAIN GOAL Kazakhstan’s sector of the Caspian Sea • Comprehensive approach to the coastline development Atyrau Zone 1 SHORT-TERM AND IN-PROGRESS PROJECTS Zone 2 Bautino • Shipbuilding facility / shipyard in the city of Kuryk • International conference “Offshore 2012” Aktau Zone 3 Kuryk MID- AND LONG-TERM PROJECTS • Creating additional capacities in shipbuilding and repairs, fabricated metals and metal goods • Building a passenger terminal in the Aktauseaport • Setting up an oil spill cleanup and prevention facility • Opening a multi-functional main coordination center

11. III. Regional development priorities 2. OIL & GAS SERVICES MAIN GOAL SHORT-TERM AND IN-PROGRESS PROJECTS Improving employment opportunities and increasing local content in goods and services of oil and gas companies • Building a technical training center • Opening the Engineering Center for the Central Asia • Transfer of the effective technologies for import substitution MID- AND LONG-TERM PROJECTS • Employee training for offshore oil production in collaboration with offshore project operators • Further development of the Center of Engineering for the Central Asia

12. III. Regional development priorities 3. TRANSPORTATION INFRASTRUCTURE Kayrak MAIN GOAL Ozinki “North-South” Increasing and diversifying passenger and cargo traffic “Traseka” Seaport Aktau Transport and Logistics Center in the city of Beyneu Khorgos SHORT-TERM AND IN-PROGRESS PROJECTS Large Customs Stations Republic of Kazakhstan ZhibekZholy • Expanding the capacity of the Aktau seaport, creating a transportation and logistics center • Building a cargo terminal at the Aktau International Airport MID- AND LONG-TERM PROJECTS • Reconstruction of the Zhetybay – Zhanaozen highway (on the border with Turkmenistan) • Developing the seaports in Aktau, Bautino, Kuryk

13. III. Regional development priorities4. TOURISM SHORT-TERM AND IN-PROGRESS PROJECTS MAIN GOAL • Ethno- and eco-tourism, information and support services • Introduction of an amendment to the national gambling law • Opening a gambling zone in the region Creating a tourism and recreation cluster in Mangystau region MID- AND LONG-TERM PROJECTS • Encouraging larger national companies to build corporate recreational centers • Creating an integrated resort and recreational zone “Kenderly”

14. III. Regional development priorities5. SPECIAL ECONOMIC ZONE “SEAPORT AKTAU” BENEFITS AND PREFERENCES MAIN GOAL Attracting investors interested in developing high-techinnovative companies • Land tax – 0% • Property tax – 0% • Corporate income tax – 0% • Land usage rent – 0 • Import duties – 0% • Value Added Tax exemptions for the goods imported into the Aktau seaport MID- AND LONG-TERM PROJECTS • Introduction of amendments tothe Presidential Decree “Creation of the Special Economic Zone “Seaport Aktau”(increasing the area of SEZ) • Infrastructure development in subzones 2, 4, 5, 6

15. III. Приоритетные направления6. UTILIES AND ENGINEERING INFRASTRUCTURE MAIN GOAL Improving the regional utility services SHORT-TERM AND IN-PROGRESS PROJECTS • Modernization of the water supply and drainage systems in cooperation with EBRD in the cities of Aktau and Zhanaozen • Reconstruction of the water desalination facility “Caspiy” • Building the recycling factory with the help of EBRD MID- AND LONG-TERM PROJECTS • Building a combined-cycle power generating unit MAEK • Developing alternative energy sources

16. IV. Expected results «New Silk Way» Project • Completing the Sea Port Aktau expansion; • Construction launch for “Beyneu – Zhezkazgan” railroad; • Developing the elements of oil&gas service cluster; • Implementing international resort and recreation zone “Kenderly” project; • Developing new high-techinnovative technologies and opening more innovative businesses. THANK YOU FOR YOUR ATTENTION!