Kazakhstan floats its national currency, tenge, allowing the market to determine the tenge rate. Despite uncertainty in the strength of local currency, Kazakhstan is still pursuing the attraction of new investments in the domestic market, including the coming EXPO-2017. This issue of the Market eyesight will focus on the country's decision to float tenge, as well as new legal conditions for the investors in certain sectors of economy.
Taxation of Subsoil Users
The Government of Kazakhstan will reduce the rate of the oil and gas, mining and chemical industries starting from September, 2015.
Following certain analytical researches of oil and gas companies and reduce the tax rate in order to stimulate the operations. This is the opportunity to reduce the general tax burden on such companies by 80%, around 46 billion tenge.
The Government is also planning to issue a number of
The New Antitrust Regulation
By 2017 Kazakhstan will move to the OECD standards
This will allow investors to plan their costs, and will tighten control over the implementation of investment programs.
EXPO 2017 Participants
India along with China have expressed willingness to participate in the Expo 2017 in Kazakhstan.
The participation might give a new impulse to the strengthening of Kazakh-Indian strategic partnership, along with opening new areas of cooperation, in particular in the field of «green» energy.
R. Zhoshybayev (the First Deputy Minister of Foreign Affairs) met representatives of the Ministries of Foreign Affairs, Trade and Industry, Tourism in India, India Trade Promotion Organization (ITPO), the Association of Tour Operators, as well as high-level representatives of the Confederation of Indian Industry along with leading Indian companies in the field of renewable energy sources in Bangalore.
During the meeting, the Ministry of Commerce and Industry of India discussed issues of bilateral trade and economic relations, prospects of cooperation in the field of «green» energy and interaction of relevant government agencies and companies of the two countries for participation in the exhibition.
As regards Chinese participation, it intends to present to the world the concept of energy development. Kazakhstan is currently considering the issue of simplification of tourism for Chinese citizens in Kazakhstan, including through the signing two agreements with leading Chinese tour operators.
Potential PPP projects in healthcare in Almaty and Kyzylorda
The hospital for 300 beds in Almaty is planned for construction as the concession project, with an estimated value of $90 million US dollars. The Ministry of Health will provide the exclusive right to build and operate to the concessionaire for the period of 25 years. Similar concession project is planned for construction in Kyzylorda. The local skimpy as the initiator of the project is planning to attract investors for the construction and operation of the facility. The available financial models are planned to be employed based on the principles of PPP.
Both projects will aim to attract potential concessionaires, experienced in construction and operation of similar facilities within the realities of Kazakhstan environment.
MARKET EYESIGHT ISSUE: September 2015
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