KAZAKHSTAN: INVESTMENT PROJECTS IN THE TRANSPORT & TELECOMMUNICATION SECTORS

KAZAKHSTAN: INVESTMENT PROJECTS IN THE TRANSPORT & TELECOMMUNICATION SECTORS - OPPORTUNITIES FOR U.S. COMPANIES

13 MAY 98
FM AMEMBASSY ALMATY

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INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 1998. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
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SUMMARY
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1. THE MINISTRY OF TRANSPORT AND COMMUNICATIONS HAS ANNOUNCED A LIST OF PRIORITY PROJECTS TO PROVIDE REPAIR AND MAINTENANCE SERVICES FOR ROAD AND RAILWAY LINES, TRANSPORT AND TELECOMMUNICATION SERVICES. U.S. TRANSPORT AND CONSTRUCTION COMPANIES ARE ENCOURAGED TO PARTICIPATE IN THESE PROJECTS. A FULL COPY OF THE MINISTRY PRIORITY INFRASTRUCTURE PROJECT LIST IS AVAILABLE THROUGH BISNIS WASHINGTON. END SUMMARY.

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PROJECT OPPORTUNITIES: A SELECTED OVERVIEW
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2. ACCORDING TO MINISTRY OF TRANSPORT AND COMMUNICATIONS SOURCES, COMPETITIVE TENDERS FOR ALL PRIORITY INFRASTRUCTURE PROJECTS WILL BE ANNOUNCED ONCE FINANCING IS IDENTIFIED FOR EACH PROJECT. U.S. COMPANIES ARE ENCOURAGED TO REMAIN IN CONTACT WITH THE MINISTRY OF TRANSPORT AND THE U.S. EMBASSY CONCERNING UPDATES ON FINANCING STATUS. THE U.S. EMBASSY WISHES TO PROVIDE A SELECTED LIST OF INFRASTRUCTURE PROJECTS BELOW:

A. DRUZHBA RAILWAY STATION DEVELOPMENT AND UPGRADE OF THE AKTOGAI-DRUZHBA SECTION TRANSPORT CAPACITY: THE PURPOSE OF THIS PROJECT IS TO INCREASE THE TRANS-ASIAN RAILWAY MAIN LINE TRANSPORT CAPACITY. THE POTENTIAL PROJECT PARTICIPANTS ARE THE JAPANESE OVERSEAS ECONOMIC COOPERATION FUND (OECF). THE FORM OF INVESTMENT IS A LONG-TERM CREDIT IN THE AMOUNT OF USD 157 MILLION, AND THE PERIOD OF IMPLEMENTATION IS 1998-2020. THE KAZAKHSTANI GOVERNMENT WILL PROVIDE QUOTE GUARANTEES END QUOTE. WORKING DOCUMENTS ARE AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

B. DEVELOPMENT OF HIGH-SPEED TRAFFIC ON THE ALMATY-ASTANA RAILWAY LINE: THE PURPOSE OF THIS PROJECT IS TO PROVIDE FOR HIGH SPEED CONNECTIONS BETWEEN ALMATY AND ASTANA. THE FORM OF INVESTMENT IS A JOINT VENTURE WITH A LONG-TERM CREDIT IN THE AMOUNT OF USD 366 MILLION. THE PERIOD OF REALIZATION IS UNTIL THE YEAR 2020. WORKING DOCUMENTS ARE AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATION.

C. RENEWAL OF ROLLING STOCK AND CONTAINER FLEET: THE PURPOSE OF THIS PROJECT IS TO PROVIDE FOR ADDITIONAL CARGO AND PASSENGER ROLLING STOCK. THE FORM OF INVESTMENT IS A LONG-TERM CREDIT IN THE AMOUNT OF USD 6 BILLION. THE PERIOD OF IMPLEMENTATION IS UNTIL 2030.

D. REORGANIZATION OF FERRY SERVICE ACROSS THE CASPIAN SEA AT THE AKTAU SEA PORT: THE PURPOSE OF THIS PROJECT IS TO RECONSTRUCT THE FERRY INFRASTRUCTURE. DIRECT INVESTMENT IS NEEDED IN THE AMOUNT OF USD 15.06 MILLION. THE PERIOD OF REALIZATION IS FROM 1998-2000. A FEASIBILITY STUDY IS AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

E. PURCHASE OF A MERCHANT FLEET (10 VESSELS OF RIVER-SEA TYPE): THE PURPOSE OF THIS PROJECT IS TO ESTABLISH A MERCHANT FLEET. THE INVESTMENT VOLUME IS USD 94 MILLION. THE PERIOD OF REALIZATION IS 1998-1999. THE GOVERNMENT WILL PROVIDE QUOTE GUARANTEES END QUOTE. A FEASIBILITY STUDY AND DRAFT GOVERNMENT RESOLUTION ON THIS PROJECT ARE AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

F. REHABILITATION OF ROAD NETWORKS IN WESTERN KAZAKHSTAN: THE PURPOSE OF THIS PROJECT IS TO IMPROVE THE TECHNICAL CONDITION OF PRIMARY ROADS IN WESTERN KAZAKHSTAN AND PROVIDE FOR SAFE ROAD TRANSPORTATION. THE INVESTOR IS THE JAPANESE OVERSEAS ECONOMIC COOPERATION FUND (OECF). FORM OF INVESTMENT IS A LONG-TERM CREDIT IN THE AMOUNT OF USD 110 MILLION. THE PERIOD OF REALIZATION IS FROM 1999-2001. CO-FINANCING FROM THE ROAD FUND USD 20 MILLION IS ALSO ANTICIPATED. A FEASIBILITY STUDY IS AVAILABLE.

G. DEVELOPMENT OF THE MUNICIPAL PASSENGER TRANSPORT IN ASTANA, THE NEW CAPITAL: THE PURPOSE OF THIS PROJECT IS TO PURCHASE MUNICIPAL PASSENGER BUSES. THE FORM OF INVESTMENT IS A LONG-TERM CREDIT IN THE AMOUNT OF USD 19 MILLION. THE PERIOD OF REALIZATION IS 1998-2000.

H. REPAIR AND RECONSTRUCTION OF THE ATYRAU AIRPORT RUNWAY: THE FORM OF INVESTMENT IS A LONG- TERM CREDIT IN THE AMOUNT OF USD 30 MILLION. THE GOVERNMENT WILL PROVIDE QUOTE GUARANTEES END QUOTE.

I. AIR TRAFFIC CONTROL SATELLITE COMMUNICATION BACKBONE. THE PURPOSE OF THIS PROJECT IS TO PROVIDE AIR TRAFFIC CONTROL OVER KAZAKHSTAN AIRSPACE. THE POTENTIAL INVESTOR IS KAZAERONAVIGATSIA STATE ORGANIZATION. THE INVESTMENT VOLUME IS USD 3 MILLION. THE PERIOD OF REALIZATION IS UNTIL YEAR 2000. A DRAFT CONTRACT IS AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

J. THE MODERNIZATION OF GRAND TO AIR COMMUNICATIONS SYSTEMS: THE PURPOSE OF THIS PROJECT IS TO PROVIDE AIR TRAFFIC CONTROL OVER KAZAKHSTAN AIRSPACE. THE POTENTIAL INVESTOR IS KAZAERONAVIGATSIA STATE ORGANIZATION. THE INVESTMENT VOLUME IS USD 27.4 MILLION. THE PERIOD OF REALIZATION IS UNTIL YEAR 2000. A DRAFT CONTRACT IS AVAILABLE FROM THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

K. UPGRADE AND DEVELOPMENT OF THE INTERNATIONAL TELECOMMUNICATIONS NETWORK: THE PURPOSE OF THIS PROJECT IS TO DIGITALIZE THE PRIMARY NETWORK AND REPLACE OLD EQUIPMENT. THE INVESTMENT VOLUME IS USD 11.5 MILLION. THE PERIOD OF REALIZATION IS 1998. KAZAKHTELECOM IS THE NATIONAL OPERATOR IS A PARTICIPANT. INTERNATIONAL TELEPHONE SUBSTATIONS IN ASTANA, ALMATY AND AKTYUBINSK ARE AMONG THOSE STATED FOR MODERNIZATION.

L. DEVELOPMENT OF A WIRELESS COMMUNICATION SYSTEM: THE PURPOSE OF THIS PROJECT IS TO PROVIDE A MODERN COMMUNICATION SYSTEM, INCLUDING CELLULAR AND PAGING SYSTEMS. THE INVESTMENT VOLUME IS USD 106.1 MILLION. THE PERIOD OF REALIZATION IS 1998- 2000. KAZAKHTELECOM, THE NATIONAL TELECOMMUNICATIONS OPERATOR IS A PARTICIPANT. M. THE DEVELOPMENT OF A NATIONAL DATA TRANSMISSION NETWORK: THE PURPOSE OF THIS PROJECT IS TO EXPAND INFORMATION EXCHANGE IN THE REPUBLIC OF KAZAKHSTAN. THE INVESTMENT VOLUME IS USD 44.5 MILLION. THE PERIOD OF REALIZATION IS FROM 1998- 2000. KAZAKHTELECOM, THE NATIONAL TELECOMMUNICATIONS OPERATOR IS A PARTICIPANT.

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U.S. TRADE AND DEVELOPMENT AGENCY CONFERENCE IN ISTANBUL: A UNIQUE GATHERING OF PUBLIC AND PRIVATE SECTOR DECISION-MAKERS.
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3. THE U.S. TRADE & DEVELOPMENT AGENCY (TDA) IS ORGANIZING A MAJOR PROJECTS CONFERENCE, "CROSSROADS OF THE WORLD" IN ISTANBUL, TURKEY ON MAY 27-29, 1998. THE CONFERENCE WILL FOCUS ON EXCELLENT OPPORTUNITIES IN THE EMERGING MARKETS OF ARMENIA, AZERBAIJAN, BULGARIA, GEORGIA, KAZAKHSTAN, KYRGYZSTAN, ROMANIA, RUSSIA, TAJIKISTAN, TURKEY, TURKMENISTAN, UKRAINE, AND UZBEKISTAN. MORE THAN 60 MAJOR PROJECTS IN THE OIL AND GAS, MINING AN MINERALS, POWER GENERATION, AND TRANSPORTATION SECTORS WILL BE PRESENTED BY A NUMBER OF HIGH-RANKING DECISION- MAKERS FROM EACH PARTICIPATING COUNTRY. SENIOR KAZAKHSTANI OFFICIALS FOR KAZAKHOIL, KAZTRANSOIL, THE MINISTRY OF ENERGY, INDUSTRY AND TRADE, THE MINISTRY OF TRANSPORT AND COMMUNICATIONS, AND THE MINISTRY OF ECOLOGY AND NATURAL RESOURCES.

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CONTACT INFORMATION
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4. QUALIFIED INTERESTED U.S. COMPANIES MAY OBTAIN FURTHER INFORMATION AT THE MINISTRY OF TRANSPORT AND COMMUNICATIONS.

5. MINISTRY OF TRANSPORT AND COMMUNICATIONS DEPARTMENT OF INTERNATIONAL RELATIONS
49 LENIN STREET
473000 ASTANA, KAZAKHSTAN
PHONE: 7(3172)32-41-40
FAX: 7(3172)32-41-61
CONTACT: NATALIA SERBAEVA, THE HEAD OF INTERNATIONAL RELATIONS DEPARTMENT
LANGUAGE OF CORRESPONDENCE: RUSSIAN OR ENGLISH

6. FOR FURTHER INFORMATION ON U.S. COMMERCIAL SERVICE PLEASE CONTACT
MICHAEL LALLY, SENIOR COMMERCIAL OFFICER
KARLYGASH MAKATOVA, COMMERCIAL ASSISTANT
U.S. EMBASSY ALMATY
531 SEYFULLIN PROSPECT, 3RD FLOOR
480083 ALMATY, KAZAKHSTAN
PHONE: 7(3272)63-36-03
FAX: 7(327)581-1756 (INTERNATIONAL)
FAX: 8(3272)63-88-11 (WITHIN NIS)

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)