Korean investors are interested in PPP projects in Kazakhstan
Baiterek National Management Holding JSC, its subsidiary Kazakhstan Project Preparation Fund LLP and Korean Overseas Infrastructure & Urban Development Corporation (KIND) signed a cooperation agreement.
The agreement was enshrined during the Kazakhstan-Korean Business Forum in Nur-Sultan city 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 implementation of PPP projects in Kazakhstan and assist in attracting Korean investors to these projects. It is planned to consider four objects totaling $ 800 million.
In particular, Korean investors show interest in such concession projects as the construction and operation of the Turkestan regional highway, a 300-bed multi-profile hospital and creation of a single university hospital for 1,265 beds at Kazakh National Medical University named after prof. Asfendiyarov, and a 300-bed university clinic in Karaganda
“You know that the Korean experience in infrastructure development is considered as one of the most successful in the world. Therefore, we welcome the interest of Korean colleagues to participate in selection of international concessionaires to implement these projects” said Aidar Arifkhanov, the Chairman of the Board of the Holding, in the interview to journalists after the signing ceremony.
In addition, JSC “Baiterek” National Managing Holding” jointly with the Korean Institute for Advancement of Technology (KIAT) are planning to combine efforts in the technological sphere for mutual benefit of both countries. 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 implementation of support programs "Leaders of Competitiveness - National Champions 2.0", "World Class 300" and the Korean Initiative of "hidden champions" (Korean Hidden Champion Initiative).
“This Memorandum provides for cooperation in the field of support of competitive export-oriented and technological manufacturing industries. Baiterek Holding has a support program “Leaders of Competitiveness - National Champions 2.0”, within the framework of which our affiliates provide participants with a range of measures, including non-financial ones. Our Korean colleagues have similar programs. This is “World Class 300” and the Korean initiative of "hidden champions." By concluding this Memorandum, we aim to share knowledge and experience in order to more effectively implement the programs and develop manufacturing industry of our countries” said Aydar Arifkhanov.
It should be noted, the program “Leaders of Competitiveness - National Champions” was developed under the instructions of the First President of the Republic of Kazakhstan - Elbasy Nursultan Nazarbayev, highlighted in the 62nd Step of the Nation Plan “100 concrete steps to implement five institutional reforms”. The goal of the program is to assist in creation of competitive, export-oriented and technological manufacturing industries.
In turn, the state program “World Class 300”, launched in 2010 in South Korea, provides, along with the use of tax reliefs, 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. For example, KazakhExport JSC signed a general agreement with the Korean Trade Insurance Corporation (Ksure), while Damu Fund signed an agreement with the Korean SMEs and Startups Agency (KOSME).
The head of the Holding, Aidar Arifkhanov, in turn, held a series of meetings with the management of these Korean development institutions, during which they discussed issues of mutually beneficial cooperation in detail.
“Baiterek National Management Holding” JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. It is the key institution of the Government of the Republic of Kazakhstan that meets advanced standards of corporate governance and ensures implementation of the objectives of sustainable development of Kazakhstan economy 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, House Construction Savings Bank of Kazakhstan JSC, “Mortgage Organization “Kazakhstan Mortgage Company” JSC, “Export Insurance Company “KazakhExport” JSC, “Entrepreneurship Development Fund DAMU” JSC, “QazTech Ventures” JSC, “Housing Construction Guarantee Fund” JSC, Kazyna Capital Management JSC, Baiterek Development JSC, “Kazakhstan Project Preparation Fund” LLP.
The Korean Overseas Infrastructure & 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, from project selection, development and financing to direct investment.
The Korean Institute for Advancement of Technology (KIAT) is the Institute for 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 Development of Industrial Technologies, through the merger of six public technological institutes. The central office is located in Seoul.