Korean Investors Are Expressing Interest in PPP Projects in Kazakhstan

“Baiterek” National Managing Holding” JSC, its subsidiary organization “Kazakhstan Project Preparation Fund” LLP and Korea Overseas Infrastructure and Urban Development Corporation (KIND) have signed a cooperation agreement.

The agreement was consolidated in the course of the Kazakhstan-Korean business forum in the city of Nur-Sultan held in the framework of the state visit of the President of Korea Moon Jae-in.

According to this document, the parties intend to cooperate in the implementation of PPP projects in Kazakhstan and contribute to attracting Korean investors to these projects. It is planned to review four objects totaling 800 million US dollars.

In particular, Korean investors are showing interest in concession projects such as the construction and operation of Turkestan Regional Highway, a 300-bed multi-disciplinary hospital and establishment of a unified university hospital for 1 265 patients at Asfendiyarov Kazakh National Medical University, as well as a 300-bed university clinic in Karaganda .

“As you know, the Korean experience in infrastructure development is considered to be one of the most successful in the world. Therefore, we are welcoming the interest of Korean colleagues in the involvement within the selection of international concessionaires to implement these projects,” - said Aidar Arifkhanov, Chairman of the Board of the Holding, in an interview to journalists after the signing ceremony.

In addition, “Baiterek” NMH” JSC jointly with the Korean Institute for Advancement of Technology (KIAT) are planning to combine efforts in the technological sphere for the mutual benefit of both countries. The corresponding memorandum was signed by Aidar Arifkhanov and KIAT Acting President Changmin Han within the framework of this business forum.

The parties intend to study areas of mutual interest in order to identify and develop investment projects in the field of industrial technologies, including the implementation of the "Leaders of Competitiveness - National Champions 2.0", "World Class 300" support programs and the Korean Hidden Champion Initiative.

“The memorandum envisages cooperation in the field of supporting competitive export-oriented and technological manufacturing industries. Baiterek Holding has a support program of the “Leaders of Competitiveness - National Champions 2.0”, within the framework of which our subsidiaries provide participants with a range of measures, including non-financial ones. Our Korean colleagues have similar programs. These are World Class 300 and the Korean Hidden Champion Initiative. By signing this memorandum, we aim to share knowledge and experience in order to implement the programs more effectively and develop the manufacturing industry of our countries,” - said Aidar Arifkhanov.

It should be noted that the “Leaders of Competitiveness - National Champions” program was developed based on the instruction of the First President of the Republic of Kazakhstan – Yelbasy, Nursultan Nazarbayev, designated in the 62nd Step of “100 Concrete Steps for the Five Institutional Reforms Implementation” Nation Plan. The goal of the program is to assist in the creation of competitive, export-oriented and technological manufacturing industries.

In its turn, the World Class 300 state program launched in 2010 in South Korea, provides, along with the use of tax benefits, a set of technological and consulting support measures for small and medium-sized innovative enterprises that are export-oriented, the candidates for national champions.

Meanwhile, today cooperation documents have also been signed by subsidiaries of the Holding. Thus, KazakhExport JSC has signed a general agreement with the Korea Trade Insurance Corporation (Ksure), and Damu Fund has signed an agreement with the Korea SMEs and Startups Agency (KOSME).

The Head of the Holding, Aidar Arifkhanov, in his turn, has held a series of meetings with the managements of these Korean development institutions, during which they have discussed issues of mutually beneficial cooperation in detail.

 Reference:

“Baiterek” National Managing Holding” JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. The key institution of the Government of the Republic of Kazakhstan that meets the advanced standards of corporate management and ensures the implementation of the objectives of the sustainable development for the economy of Kazakhstan through its diversification, support for innovation, export development, increase in labor productivity. The holding includes: “Development Bank of Kazakhstan” JSC, “Investment Fund of Kazakhstan” JSC, “Housing Construction Savings Bank of Kazakhstan” JSC, “Kazakhstan Mortgage Company” MO” JSC, “KazakhExport” EIC” JSC, “Damu” EDF” JSC, “QAZTECH VENTURES” JSC, “Housing Construction Guarantee Fund” JSC, “Kazyna Capital Management” JSC, “Baiterek Development” JSC, “Kazakhstan Project Preparation Fund” LLP.

The Korea Overseas Infrastructure and Urban Development Corporation (KIND) provides comprehensive support to Korean companies for expanding investment activities in the field of PPP projects and business development abroad. KIND provides support in all areas of business development ranging from projects selection, development and financing to direct investment.

The Korea Institute for the Advancement of Technology (KIAT) is the Institute for the Development of Technological Policy under the Ministry of Trade, Industry and Energy of the Republic of Korea (MOTIE). KIAT was established in 2009 in accordance with the Law on the Development of Industrial Technologies through the merger of six public technological institutes. The central office is located in Seoul.