Thursday, 27 February 2020, 22:40:39
Atyrau region occupies a leading position in the country in terms of economic parameters. This is mainly due to the extraction and processing of hydrocarbons. At a meeting with the public in the summer of 2019 in the region, President of Kazakhstan Kassym-Jomart Tokayev instructed to take measures to diversify the economy of the Atyrau region, pointed out the need to support other sectors of the local economy, except for the oil and gas and petrochemical complexes. Huge work has been done in the region to open new industries and modernize existing ones. Read our review about the implementation of the Head of State’s instructions and the socio-economic development of the Atyrau region in 2019.
Atyrau region is one of the largest industrial regions of the Republic of Kazakhstan. The priority areas for the development of the regional economy are oil and gas, building materials production, manufacturing, agricultural and fishing industries. If in 1991 the gross regional product amounted to 4.6 billion tenge, then according to the results of 9 months of 2019, the gross regional product of the region amounted to 5.8 trillion tenge. Gross regional product per capita reached the level of 9 million tenge.
The akimat of the Atyrau region notes that in 2019, positive dynamics remained in all indicators of the socio-economic development of the region.
More than 28 thousand citizens of Atyrau region employed in industry
Over the past five years, the industry of the region has been developing dynamically.
In January 2020, industrial enterprises produced products for 661.5 billion tenge, including in the mining and manufacturing industries at 601.9 billion tenge and 51.5 billion tenge, respectively.
According to statistics, 737 industrial enterprises operate in the region. More than 28 thousand people are employed in industrial production.
One of the largest oil companies is Embamunaigas JSC, which has crossed the 97-year mark. The company carries out exploration, development of oil and gas fields, production and preparation of oil and gas. The structure of Embamunaigas JSC includes six production structural subdivisions in Atyrau and in four districts of Atyrau region: Zhylyoimunaigas, Dossormunaigas, Kainarmunaigas and Zhaiykmunaigaz, Embamunaenergo technical department and Production-Maintenance Department Complete sets of equipment. The number of employees is about 5 thousand people. The company supplies extracted oil for export and domestic market. Oil is supplied to the domestic refineries in the domestic market. Oil is exported through two main routes: through the pipelines of the Caspian Pipeline Consortium and Uzen-Atyrau-Samara.
The leading enterprise in the field of construction is Caspian Contractors Trust Atyrau LLP. Buildings and platforms, bridges, trusses, supports, modules, tanks up to 20,000 m³, vessels, reactors, flare systems, towers, lifting equipment and piping of any complexity are designed and manufactured at the plant.
In 2019, the volume of production amounted to 8 billion tenge. The production base is located on an area of 80 thousand m². General Director of Caspian Contractors Trust Atyrau LLP Nurken Iskaliev says that the company is capable of producing 24 thousand tons of metal structures per year.
“In 2016, we completed the first stage of reconstruction, thanks to which the plant’s productivity increased 10 times. Currently, the company employs 450 people. Our customers are the largest operators in the region, such as Kashagan, Tengiz, Karachaganak field. All these projects are consumers of our products. This year we plan to commission a hot dip galvanizing workshop, as well as strengthen our position in the supplier market as an integrated supplier of metal structures and technological equipment,” Iskaliev said.
Another enterprise that is successfully developing today in the Atyrau region is Caspian Plus LLP, the main manufacturer of products for the mining and oil industries. The company was founded in 2008 and is currently developing with a continuous increase in production capacity and the level of competence of employees in the technology of production of fasteners. The company is engaged in import substitution of more than 500 types of products that were previously imported from Australia and Europe.
Main direction — economic diversification
The region focused on the oil sector is actively diversifying.
In the framework of the State Program of Industrial and Innovative Development of the Republic of Kazakhstan in the second five-year period (2015-2019) in Atyrau region, 28 projects for 667.8 billion tenge were implemented, which created 2,139 jobs.
Of these, one project on the Industrialization Map in the amount of 626.6 billion tenge with the creation of 767 jobs. Within the framework of the Entrepreneurship Support Card, 27 projects were implemented in the amount of 41 billion tenge with the creation of 1372 jobs.
In 2015-2018, 23 projects were implemented for 37.6 billion tenge with the creation of 1,259 jobs.
In 2019, four projects were implemented worth 3.6 billion tenge with the creation of 113 jobs.
Within the framework of the third five-year plan for 2020-2025, it is planned to implement seven projects worth 2.3 trillion tenge with the creation of 1,705 jobs. Of these, two projects on the Industrialization Map worth about 2.3 trillion tenge with the creation of 1,290 jobs.
In 2020, it is planned to commission three projects worth 10.7 billion tenge with the creation of 269 jobs. In 2022, it is planned to commission two projects worth 30 billion tenge with the creation of 146 jobs.
Fishing industry developing in Atyrau region
During the working trip to the Atyrau region in June 2019, the President Kassym-Jomart Tokayev noted that in addition to the oil and gas industry, it is necessary to develop fishing in the region.
“It is necessary to support other sectors of the local economy, except for the oil and gas and petrochemical complexes. It is necessary to revive the work of fish processing enterprises, to attract investors in this sector. We see that the measures taken are not yielding results. Our citizens are waiting for real action. The Ministry of Agriculture and the akimat should focus on this issue,” Kassym-Jomart Tokayev said at the meeting.
Today Atyrau region is known not only as the oil capital, but also famous for the development of the fishing industry.
Currently, 19 production enterprises of various ownership forms, two sturgeon hatcheries are engaged in fish extraction and processing.
In 2019, fish exports amounted to 8.9 thousand tons.
Due to the reduction in the natural reproduction of sturgeon fish and the intensification of hydrocarbon production on the north-eastern coast of the Caspian Sea, the Atyrau sturgeon hatchery was built and commissioned in 1998 as a compensation facility in the Ural River delta.
The subject of the company’s activity is replenishment of sturgeon fish species in the Caspian Sea through the release of juvenile sturgeon fish species obtained and grown artificially into the Ural River. According to the director of the plant Rashiden Kalidullin, annually 3.5 million pieces of juvenile sturgeon species are produced at the plant. Mostly beluga, sturgeon, spike and stellate sturgeon.
From 1998 to 2019, over 89 billion pieces of viable juvenile sturgeon species were grown and released into the Ural-Caspian basin.
“We are 100% fulfilling the order of the Head of State. We produce 3.5 million juveniles of sturgeon species of fish; for nature users we produce over 120 thousand juveniles of sturgeon species of fish. If we talk about the factory workers, 78 people work for us. 60% of them are fisheries specialists,” said Rashiden Kalidullin, director of the Atyrau Sturgeon Hatchery.
Since 1934, the Imeni Amangeldy LLP has been manufacturing fish products. All these years, the main principle of the enterprise was the release of only the best, environmentally friendly fish products. 395 tons of fish are processed here per day. In 2019, 1.1 thousand tons of frozen fish, 225 tons of fillets and 50 tons of processed fish were produced. The products of Imeni Amangeldy LLP are in great demand in the markets of Kazakhstan, Russia, Ukraine and Azerbaijan, Uzbekistan and France, Bulgaria, Germany.
“We ship products manufactured by our company to the countries of the EAEU, the Customs Union and other foreign countries. We fully provide the domestic market. We sell more than 20 types of fish products in Atyrau and the districts of Atyrau region. We sell our products at retail outlets at low prices,” said Sabit Sagidullin, Director of Imeni Amangeldy LLP.
Another company operating in the fishing industry is the Caspian Royal Fish LLP sturgeon hatchery. The company began operations in 2014 under the name Caspian Royal Fish. In 2019, the plant produced 12.5 tons of marketable fish and 620 kg of food caviar. Akhat Nimatov, Caspian Royal Fish chief fish farmer, spoke about the plant’s performance and future plans.
“Every year, our performance improves. Now we annually supply 700 kg of caviar to the domestic market. Our goal is to cook up to 1 ton of food caviar in the future. Send half for export. At the same time, we have plans to deal with replenishment of the Zhaiyk river with fry. We have enough specialists for this. We ourselves will grow fry up to 3-10 grams and release them into the river,” Nimatov said.
Atyrau region cooperates with 50 countries of the world
Atyrau region is the most attractive region for both large domestic and foreign investors, providing almost a third of the volume of investments in the country.
According to the Akimat of Atyrau region, the volume of investments in fixed assets in January 2020 amounted to 348.4 billion tenge, or 108.8%, compared with the same period in 2019.
Today the region successfully cooperates with more than 50 countries of the world, more than 1,000 joint and foreign enterprises are created and successfully work.
Akimat of Atyrau region is carrying out systematic work to improve the investment climate in the region and attract foreign direct investment in the region’s economy.
The North-Caspian regional exhibitions “Global Oil & Gas Atyrau” and “Atyrau Build” are annually held in the region, representatives of the regional akimat and enterprises of the region take an active part in international investment events held in the near and far abroad.
In 2019, delegations from far and near abroad visited the region with official visits. Including Great Britain, Italy, Japan, Belarus, Canada, Germany, USA and others.
To provide high-quality and prompt assistance, information-analytical and service support to domestic and foreign investors in the region, JSC NK Kazakh Invest, SEC Atyrau, and Atyrau Innovations LLP operate.
In addition, by the resolution of the akim of Atyrau region, the Atyrau Social and Entrepreneurial Corporation have been defined as the Center for Investor Services on the principle of "one window." To quickly solve the problematic issues related to the region’s investment activities, the Akimat of the Atyrau Region created the Regional Council for attracting investors and improving the investment climate, as well as the Regional Export Council. Board meetings are held quarterly.
International Pipeline Structure Solutions Caspian LLP is a distributor and produces under license on behalf of Swagemaster Engineering Services, located in the UK.
This enterprise is the first object of the company that opened outside the UK, in 2019 IPSS Group opened branches in Azerbaijan and Brazil.
IPSS took part in a special partnership program, the purpose of which is to introduce new British investors and to facilitate cooperation between British and Kazakhstani companies. This program is supported by the UK Department for International Trade, PSA LLP, KAZENERGY Association, in cooperation with KPO, TCO and NCOC operating companies.
The company is assembling temporary pipe fittings, such as a rotary plug, seals, plugs with a handle.
Priority is supporting rural entrepreneurship
In the Atyrau region, thanks to the implementation of state programs, significant results have been achieved in the development of small and medium-sized businesses. For example, according to the akimat, as of Jan. 1, 2020, the number of operating small and medium-sized businesses increased by 6.8% by 2019 and amounted to 49.9 thousand. In January-September 2019, output increased by 20.4% compared to the corresponding period of 2018. Today, 131.4 thousand people are employed in SMEs.
2.5 billion tenge were allocated for the implementation of the Business Roadmap 2020 program.
The Akimat of the Atyrau region takes measures to develop mass entrepreneurship and create favorable conditions for doing business.
One of the ways for the development of small and medium-sized enterprises is the implementation of the state program of support and business development Business Roadmap-2025, which is gaining momentum and becoming the most effective support mechanism in the field of business.
Since the beginning of the implementation of this Program (2010-2019), 1,590 projects in the amount of a loan of 110.8 billion tenge have been supported in the region, as a result 6,604 new jobs have been created.
Of these, in 2019 under this program 198 projects for a loan amount of 13 billion tenge were subsidized, 669 new jobs were planned, 98 projects for a total of 1.3 billion tenge were approved for partial guarantee of loans, 30 projects for a total of 56 million were approved for grant financing tenge.
At the same time, the Regional Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021 is being implemented. Under this program, 646.3 million tenge were allocated for microcrediting in cities in 2019 and 31 projects were funded for 421.3 million tenge, 54 million tenge were allocated for guaranteeing and 31 projects.
Regional programs are also being implemented to support rural entrepreneurs.
“In order to provide rural entrepreneurs with access to cheap loans, local funds are allocated annually for soft loans at a rate of 7% per annum through the Fund for Financial Support of Agriculture,” the Akimat of Atyrau region said.
Over the past 7 years, more than 2 billion tenge has been allocated to support rural entrepreneurship, within the framework of which 450 projects of small and medium-sized businesses have been implemented and 678 new jobs have been created.
In particular, in 2019, 700 million tenge was allocated and 112 projects were financed, 55 new jobs were created.
The largest volume of lending falls on the sphere of trade, transport and other services, which has a significant impact on the development of small and medium-sized businesses.
In addition, in Atyrau, a Service Center for Entrepreneurs was established and successfully operates on the principle of a “one-stop shop”; Entrepreneurship Support Centers have been opened in all regions of the region, which provide the entire list of necessary services to business entities.
Since May 2013, the Mobile Center for Entrepreneurship Support has been operating, whose employees travel to the district centers every month to explain state-owned entrepreneurship support programs.
Under the Economy of Simple Things program in Atyrau region, 97 projects implemented
As part of the program in the Atyrau region, Project Office was created on the basis of the regional Chamber of Entrepreneurs. It included representatives of state bodies, the Chamber of Entrepreneurs and financial institutions.
Projects that are under development and have already received funding are monitored on an ongoing basis. Identified problems are solved jointly with government bodies and financial institutions.
Proposals are being collected from business entities to improve the program. For example, at the suggestion of the Project Office, the program also included the production of asbestos cement and fiber cement, the production of other plastic products, other health care activities, and the production of concrete building products.
As of Feb. 13, 2020, 97 projects of the Economy of Simple Things Program totaling 31.8 billion tenge are in work in 9 industries. 23 projects were approved by banks and Agrarian Credit Corporation JSC for a total of 7.8 billion tenge. Eight projects totaling 6.4 billion tenge are under consideration in the second-tier banks and ACC. And also at the stage of preparing documents 66 projects for a total of 17.6 billion tenge.
More than 23 thousand people found jobs through employment centers
The region constantly monitors the creation of new jobs. In 2019, it was planned to create 15,420 jobs. For the reporting period, 22,619 jobs were created in the region, of which 14,897 were permanent.
The information system Integrated Job Creation Map has been introduced, which contains information on the created jobs by professions within the framework of implemented state programs.
Of the 23,446 people who applied to the Employment Centers, 92.8% were employed.
Organization of job fairs for vacancies is one of the most active measures of social support for the population. Since the beginning of the year, 52 job fairs have been held in the region with the participation of 5,610 people. According to the results of fairs, 2,634 unemployed were employed for permanent jobs.
In order to stabilize the social situation and preserve labor relations, a number of comprehensive measures have been taken.
So, the monitoring of the released workers is underway. Lists of released workers are sent to the Employment Centers for employment measures. Employment centers sent letters to all released workers at the place of residence about the need to apply and register at employment centers.
Constant explanatory work is being conducted among employers to consider the issues of employment of the released workers for other investment projects implemented by the company.
In order to increase the efficiency of the labor market and in connection with the introduction of new technologies with the aim of taking measures for the employment of specialists released from large enterprises in other industries, their retraining and employment, a Roadmap has been developed for a controlled overflow of company employees for 2017-2025, work has been carried out on it implementation.
Roadmaps have been signed with 98 enterprises. At these enterprises, the number of employees is over 104.4 thousand people. As emphasized in the regional akimat, the employment measures provided for by the Roadmap have been implemented.
In 2019, the Enbek Program for the Development of Productive Employment and Mass Entrepreneurship for 2017–2021 covered 28,344 people and mastered 5,057.2 million tenge.
As part of the first direction of the program “Providing participants with technical and vocational education and short-term vocational training,” 2,653 people were sent to vocational training and short-term courses.
In the second direction of the program “Development of mass entrepreneurship,” 3,937 people were covered: 2,600 people learned the basics of entrepreneurship, 438 people received loans, 851 people received grants and 48 people received loan guarantees.
In the third area of the program “Development of the labor market through the promotion of employment and labor mobility,” 21,754 people found jobs.
Five vectors of digital development of Atyrau region
In Atyrau region, in accordance with the Digital Kazakhstan state program on digitalization, work is underway in five areas.
Digitalization in transport and logistics
An electronic ticketing system has been introduced in public transport in Atyrau, buses are equipped with 150 GPS trackers. For Smart Qala transport card holders, the Avtobus mobile application has been developed. The Smart Parking project is negotiating with potential investors.
Digitalization in education
To implement digitalization in the field of education in the region, comprehensive work is being carried out according to the developed Roadmap. In Atyrau region, 194 schools are registered, of which 190 are connected to the broadband Internet network. To date, 178 of the 194 kindergartens in the region are connected to the system “Automating the formation of the priority and the process of issuing permits in the organization of preschool education and its activities”. Out of 194 schools in the region, 184 are connected to the system “Automation of the process of admission to the 1st grade.”
The information system KazMed INFORM (electronic medical record) has been implemented in all medical institutions, a mobile application has been developed with SMS distribution of the electronic line for medical services under the “to the doctor” program.
Digitalization in the field of housing and communal services
In the city of Atyrau, a pilot project e-KSK (www.atyrau.opencity.kz) with a developed mobile application has been introduced. The automation of the order of receiving apartments from the local housing stock (including housing savings systems) (housing.atyrau.gov.kz) has been introduced. In order to digitalize the land industry in the city of Atyrau, there is an electronic line for receiving a land plot (atyrau.gov.kz).
A video surveillance system Safe Yard (Cloud Video Surveillance) has been introduced. As part of the public-private partnership on the project “photo and video recording of offenses,” an agreement was signed with Korkem Telecom.
Geoportal Information System
Through this system, a space monitoring system for agricultural lands has been implemented, results of space monitoring of common mineral deposits, attribute and spatial data of the land cadastre, land monitoring data with violation of land use conditions, aerial photographs, engineering network diagrams, red stripes, general plan of the city, firefighters hydrants with an indication of their types and state of work, water protection zones and strips, flood zones, etc.
Information System 112
Emergency response services 101, 112, 103 receive, process and transfer calls in the Komek 112 system. Field ambulance teams, firefighters and rescue teams are equipped with smartphones that receive registered calls. All vehicles of the services involved in servicing the call are equipped with GPS trackers to track the location in the Komek 112 monitoring system. The single dispatch service 112 calls on line 101, 102 are received from the city. Calls for 103 are received from the city and all 7 districts of the region. Calls to 112 are received from the entire region when calling from mobile phones, and when calling from city phones, they are sent to district fire departments.
Calls to numbers 101 and 102 from the districts are received by the regional divisions of the police department and fire departments. By the end of this year, it is planned to switch all emergency services of the region to 112.
Also, under the Digital Kazakhstan state program in Atyrau region, 8,693 residents were trained for the period June-August 2019. The level of digital literacy in the region for the period of 2018 is 81.2%, for 2019 amounted to 81.3%.
Tourism: Seven sacred places located in Atyrau region
Atyrau region is one of the most developed industrial regions of Kazakhstan. Here, foreign and domestic investments are concentrated, which continuously ensure rapid growth of the economy not only of the region, but of the republic as a whole.
At the same time, special attention is paid to the development of the tourism sector. In business tourism, the region occupies one of the leading places in Kazakhstan.
For the III quarter of 2019, 130,685 visitors were served on domestic tourism (higher by 29,312 people compared to the level of 2018), and inbound tourism — 57,251 visitors (higher by 7,837 people compared to the level of 2018).
In the region, the development of cultural and educational tourism (acquaintance with the history of the region, its customs and traditions), amateur sports (hunting and fishing), ethnographic, ecological and health tourism began.
At present, in the city of Atyrau, sightseeing tour programs have been developed and are functioning, which include many interesting historical, cultural attractions, monuments and entertainment sites, as well as restaurants and cafes with a variety of cuisines of the peoples living in the region. At the same time, tourists have the opportunity to visit the creative center, where weekly shows of national traditions and customs of the Kazakh people are held.
Also in the summer, a walk on excursion motor ships along the Ural River, flowing in the very center of Atyrau and dividing the city into two continents: Europe and Asia, is quite accessible for the population and guests of the city.
On the territory of the Akzhayik state natural reserve on the coast of the Caspian Sea there are unique species of rare birds listed in the Red Book, and amateur sport fishing is allowed here, which is of great interest to tourists.
In the summer, guests of the city have the opportunity to visit camp sites along the coast of the Ural River, where entertainment services are provided in the form of rope parks, climbing walls, horseback riding and camel riding.
There are seven historical monuments in the region included in the list of sacred places of Kazakhstan (Makhambet region: Sarayshyk memorial complex; Zhylyoi region: Nekropol Akmechet, Underground mosque Qulshan ata, Kurgan Araltobe, Imankara complex, Necropolis Ushkan; Inder district: Mazar Mukhamambet).
The Kurmangazinsky district is interesting because hunting and fishing on the Qigach River are organized here at recreation centers. The beautiful natural surroundings and clean air of the Qigach river coast have great potential for the development of eco-tourism.
Guests and visitors of the region show interest in the objects of the agricultural sector, in particular, camel, horse and other farms.
Tourism companies of the region continue to actively develop routes in order to develop domestic and inbound tourism.
One of the most promising tourist sites in the region is the Saraishyk ancient settlement on the northern branch of the Great Silk Road, which is of most interest to tourists and travelers.
Annually, the number of visitors to the Saraishyk memorial complex is from 12 to 15 thousand people. Given the historical significance of the facility, a project plan for the construction of the Medieval Saraishyk complex was developed. To date, the layout and scientific justification of the ancient settlement project have been developed. The first stage of the construction of the tourist facility Medieval Saraishyk is the construction of the Visit Center. To date, design estimates are being developed.
The salt lake in the Inder district creates another great opportunity for developing health tourism in this area. Last year, scientists from the region carried out research work on the use of mud and salt from the salt lake Inder for medicinal purposes and obtained a positive result on their indispensability in various diseases. In order to effectively use the salt lake, NefteStroyService LLP, an interested investor was offered 50 hectares of land from the shore of Inder salt lake. Currently, the institution is developing topographic surveys and design estimates. According to NefteStroyService LLP, the project will be carried out in several stages.
Also, at the expense of a private investor, it is planned to build Ethnoaul in the city of Atyrau. Currently, Nurly Tau LLP has been created for investors together with Atyrau SEC Atyrau JSC and authorized capital has been determined, as well as design and estimate documentation has been prepared, which is undergoing an examination. The construction of Ethnoaul is scheduled for the second half of 2020.