ID :
34179
Sat, 12/06/2008 - 12:37
Auther :
Shortlink :
https://oananews.org//node/34179
The shortlink copeid
President of RK is at Council of foreign investors
Astana, 6 December 2008, (Khabar) - President holds investors council sitting in Almaty. Foreign companies operating in Kazakhstan have to increase Kazakhstan’s share in their activity according to a statement made by Nursultan Nazarbayev speaking at a council of foreign investors in Almaty. The world financial crisis has made the issue of Kazakhstan’s share in large investment projects more acute. In the next two years, the Republic is likely to have to rely only on its internal resources for development. The government has already taken a decision to allocate 10 billion US dollars from the stabilization fund to support the Republic’s economy. The President ordered all state-run and national holding companies to choose domestic companies for tenders. However, the potential of foreign companies operating in Kazakhstan still remains partially unused.
George Kirkland, executive vice president of “Chevron” corporation:
- “Tengiz Chevroil” spent over $2 billions for purchasing of Kazakhstani goods and services during two last years and it is more than half of company’s budget. The same work is carried out at Karachaganak where we spent over $2,5 billions for Kazakhstani goods and services during last 10 years. Currently over 80% of employees of “Tengiz Chevroil” are Kazakhstani citizens.
Alexander Mashkevich, share holder of Eurasian Natural Resources Corporation:
- Share of Kazakhstani part in purchased services of the company is over 80% from the common volume of purchases. The investors are ready and interested to use local goods, services and labour resources as quality, terms of delivering and other business demands are equal.
Vagit Alekperov, president of “Lukoil” JSC:
- High level of training of Kazakhstani specialists allows us to support their share in common number of employees at unprecedented world level, 93%. As for concluding of agreements on supply of products and services, “Lukoil” always prefers Kazakhstani producers. Currently their share in common volume of treaties is 80%.
Claudio Discalzi, chief production director of “ENI” corporation:
- In Kazakhstan our companies purchase about 40% of goods and services from local suppliers. Currently raise of attraction of national resources is about 30% as a result of introducing of new programme on development of national percentage.
Today, the share of the Republic’s companies and manpower used by foreign companies is the least amount possible. For instance, in three agreements on oil extraction signed between Kazakhstan and foreign companies, there is not a single item mentioning the compulsory use of Kazakhstan’s labour force. The remaining 572 contracts stipulate such an item but there are only two companies which are fulfilling their liability. As a result of the first 9 months of 2008, Kazakhstan’s total share reached less than 15%.
Nursultan Nazarbayev, President of Kazakhstan:
- It is obvious that this figure does not reflect the potential of our producers. Such a situation is not appropriate both for the government and local producers. We have no coordinated methodology for determining Kazakhstan’s share. As a result, there is no true estimation of the role of Kazakhstan’s producers in supplies for extraction companies. Kazakhstan’s companies do not have any information about procurement or service tenders as well as about prospect plans. I think that the absence of any progress in the issue of Kazakhstan’s share is the result of unsatisfactory work of the government regarding this issue, Mr. Massimov. The government didn’t tasks and criteria, didn’t elaborate and coordinated conditions and rules, didn’t take real actions to work with Kazakhstani producers.
Nursultan Nazarbayev also set some strict requirements for foreign investors asking to enlarge Kazakhstan’s share. There will also be personal responsibility assigned for all the instructions given.
Nursultan Nazarbayev, President of Kazakhstan:
- I would personally like to ask the deputy Prime Minister Umirzak Shukeyev to work on this issue in the government and form a task force involving the Ministers in charge and the administration of the Samruk-Kazyna holding company. I would ask you to be competitive and to increase Kazakhstan’s share in extraction projects. The main aim of the task force is to develop tangible proposals. First of all, it is necessary to develop a common standard for assessing Kazakhstan’s share. The government was also asked to hold some negotiations with extraction companies regarding the increase of Kazakhstan’s share in projects to define tangible conditions and the order of announcing information about forth-coming tenders. Secondly, the government will have to arrange an effective system of monitoring liability fulfillment in terms of Kazakhstan’s share. The Minister for energy, Sauat Mynbayev will be personally responsible for this task. KazMunaiGaz is to provide an annual increase in procurements from Kazakhstan’s producers. The chairman of the board of the Samruk-Kazyna fund, Kairat Kelimbetov was appointed in charge of the increase of Kazakhstan’s share in the procurements made by Kazakhstan’s companies. The Minister for Industry and Trade, Vladimir Shkolnik was asked to assist with the development of domestic producers and provide an increase in the quality of their production. Thirdly, the government and the task force will need to arrange close cooperation with extraction companies. It is necessary to draw a plan of gradual achievement of good indices in terms of Kazakhstan’s share. This task was also given to Umirzak Shukeyev. The work should be finished by the end of the first half of next year.
The fourth instruction given by the President was addressed to the government and the Ministry for Labour. They will have to sort out the system of foreign labour force quota distribution in the region. It is vital to allow invitation only for highly professional and in-demand specialists to work in Kazakhstan. Nursultan Nazarbayev also expects the government and investors to show coordinated activity in terms of training local employees.
Nursultan Nazarbayev, President of Kazakhstan:
- I instruct the working group and large land and subsurface management companies to define demand into working specialties, elaborate qualitative demands for their training in framework of state programme and modernize necessary educational establishments. The same work must be carried our on geological, engineer and technical specialties and continue close cooperation with our land and subsurface management companies.
The fifth instruction handed out by the president was regarding the quality of work done by domestic enterprises which are necessary to be in increased. The sixth instruction voiced by the president in his speech concerns the initiative made by the Samruk-Kazyna Fund and aimed at the creation of the Caspian Energy Hub. Nursultan Nazarbayev supported such an idea and asked investors to join in its implementation. The key items of the negotiations, the head of state summarized at a media briefing.
Nursultan Nazarbayev, President of Kazakhstan:
- As you know, the law on state procurements has been passed. We obligated our national companies to buy whatever they need from Kazakhstan’s enterprises. Now, we want foreign companies to start negotiations with our government regarding purchases from local companies.
As a whole, the list of measures developed by Kazakhstan to overcome the world financial crisis was well evaluated by the business community. They say that even now, the Republic has managed to maintain economic stability and investment attractiveness.
Frank Chapman, “BG Group” Chief Executive:
- It is hard to over value the way that was passed by Kazakhstan during last 10 years. The level of well being of people increased 4 times and average life length prolonged for 4 years only during 10 years. Of course, it is economically profitable for foreign investors to support measures directed for raise and diversification of republic’s economy. The traditions of open dialogue and interaction between the government and business made Kazakhstan attractive for foreign investments. It is advantageously shows Kazakhstan, especially in conditions of financial crisis.
Lakshmi Mittal, chairman of “Arcelor Mittal” company:
- Under your wise leadership Kazakhstan gained great authority in the world and your reasonable political decisions, farsighted fiscal and money policy which you follow, are the basis of Kazakhstan’s contradiction to the financial crisis. Your policy of development of national economy and business helped the Kazakhstani enterprises to resist today’s collapse and weakening of market.
Karl Johansson, managing partner of “Ernst & Young” company:
- Recently Kazakhstan’s economy became one of rapidly growing ones at the world market among developing countries. The financial crisis impacted the whole world community including Kazakhstan but average-term and long-tern plans of economic development of Kazakhstan can be realized as the country obtains great natural resources.
Peter Tils, chief executive director of “Deutsche Bank Frankfurt”:
- Kazakhstani banks were among the first banks, which were stroke by the credit crisis. They were very vulnerable because of high level of foreign loans due to which they developed in past. But gloomy forecasts were not realized as one year has passed. On the contrary, stability of macro economic and financial system was supported.
The anniversary meeting of the council of foreign investors ended with a group photo. It was decided that the next meeting of businessmen with the President will take place in Kostanai.
George Kirkland, executive vice president of “Chevron” corporation:
- “Tengiz Chevroil” spent over $2 billions for purchasing of Kazakhstani goods and services during two last years and it is more than half of company’s budget. The same work is carried out at Karachaganak where we spent over $2,5 billions for Kazakhstani goods and services during last 10 years. Currently over 80% of employees of “Tengiz Chevroil” are Kazakhstani citizens.
Alexander Mashkevich, share holder of Eurasian Natural Resources Corporation:
- Share of Kazakhstani part in purchased services of the company is over 80% from the common volume of purchases. The investors are ready and interested to use local goods, services and labour resources as quality, terms of delivering and other business demands are equal.
Vagit Alekperov, president of “Lukoil” JSC:
- High level of training of Kazakhstani specialists allows us to support their share in common number of employees at unprecedented world level, 93%. As for concluding of agreements on supply of products and services, “Lukoil” always prefers Kazakhstani producers. Currently their share in common volume of treaties is 80%.
Claudio Discalzi, chief production director of “ENI” corporation:
- In Kazakhstan our companies purchase about 40% of goods and services from local suppliers. Currently raise of attraction of national resources is about 30% as a result of introducing of new programme on development of national percentage.
Today, the share of the Republic’s companies and manpower used by foreign companies is the least amount possible. For instance, in three agreements on oil extraction signed between Kazakhstan and foreign companies, there is not a single item mentioning the compulsory use of Kazakhstan’s labour force. The remaining 572 contracts stipulate such an item but there are only two companies which are fulfilling their liability. As a result of the first 9 months of 2008, Kazakhstan’s total share reached less than 15%.
Nursultan Nazarbayev, President of Kazakhstan:
- It is obvious that this figure does not reflect the potential of our producers. Such a situation is not appropriate both for the government and local producers. We have no coordinated methodology for determining Kazakhstan’s share. As a result, there is no true estimation of the role of Kazakhstan’s producers in supplies for extraction companies. Kazakhstan’s companies do not have any information about procurement or service tenders as well as about prospect plans. I think that the absence of any progress in the issue of Kazakhstan’s share is the result of unsatisfactory work of the government regarding this issue, Mr. Massimov. The government didn’t tasks and criteria, didn’t elaborate and coordinated conditions and rules, didn’t take real actions to work with Kazakhstani producers.
Nursultan Nazarbayev also set some strict requirements for foreign investors asking to enlarge Kazakhstan’s share. There will also be personal responsibility assigned for all the instructions given.
Nursultan Nazarbayev, President of Kazakhstan:
- I would personally like to ask the deputy Prime Minister Umirzak Shukeyev to work on this issue in the government and form a task force involving the Ministers in charge and the administration of the Samruk-Kazyna holding company. I would ask you to be competitive and to increase Kazakhstan’s share in extraction projects. The main aim of the task force is to develop tangible proposals. First of all, it is necessary to develop a common standard for assessing Kazakhstan’s share. The government was also asked to hold some negotiations with extraction companies regarding the increase of Kazakhstan’s share in projects to define tangible conditions and the order of announcing information about forth-coming tenders. Secondly, the government will have to arrange an effective system of monitoring liability fulfillment in terms of Kazakhstan’s share. The Minister for energy, Sauat Mynbayev will be personally responsible for this task. KazMunaiGaz is to provide an annual increase in procurements from Kazakhstan’s producers. The chairman of the board of the Samruk-Kazyna fund, Kairat Kelimbetov was appointed in charge of the increase of Kazakhstan’s share in the procurements made by Kazakhstan’s companies. The Minister for Industry and Trade, Vladimir Shkolnik was asked to assist with the development of domestic producers and provide an increase in the quality of their production. Thirdly, the government and the task force will need to arrange close cooperation with extraction companies. It is necessary to draw a plan of gradual achievement of good indices in terms of Kazakhstan’s share. This task was also given to Umirzak Shukeyev. The work should be finished by the end of the first half of next year.
The fourth instruction given by the President was addressed to the government and the Ministry for Labour. They will have to sort out the system of foreign labour force quota distribution in the region. It is vital to allow invitation only for highly professional and in-demand specialists to work in Kazakhstan. Nursultan Nazarbayev also expects the government and investors to show coordinated activity in terms of training local employees.
Nursultan Nazarbayev, President of Kazakhstan:
- I instruct the working group and large land and subsurface management companies to define demand into working specialties, elaborate qualitative demands for their training in framework of state programme and modernize necessary educational establishments. The same work must be carried our on geological, engineer and technical specialties and continue close cooperation with our land and subsurface management companies.
The fifth instruction handed out by the president was regarding the quality of work done by domestic enterprises which are necessary to be in increased. The sixth instruction voiced by the president in his speech concerns the initiative made by the Samruk-Kazyna Fund and aimed at the creation of the Caspian Energy Hub. Nursultan Nazarbayev supported such an idea and asked investors to join in its implementation. The key items of the negotiations, the head of state summarized at a media briefing.
Nursultan Nazarbayev, President of Kazakhstan:
- As you know, the law on state procurements has been passed. We obligated our national companies to buy whatever they need from Kazakhstan’s enterprises. Now, we want foreign companies to start negotiations with our government regarding purchases from local companies.
As a whole, the list of measures developed by Kazakhstan to overcome the world financial crisis was well evaluated by the business community. They say that even now, the Republic has managed to maintain economic stability and investment attractiveness.
Frank Chapman, “BG Group” Chief Executive:
- It is hard to over value the way that was passed by Kazakhstan during last 10 years. The level of well being of people increased 4 times and average life length prolonged for 4 years only during 10 years. Of course, it is economically profitable for foreign investors to support measures directed for raise and diversification of republic’s economy. The traditions of open dialogue and interaction between the government and business made Kazakhstan attractive for foreign investments. It is advantageously shows Kazakhstan, especially in conditions of financial crisis.
Lakshmi Mittal, chairman of “Arcelor Mittal” company:
- Under your wise leadership Kazakhstan gained great authority in the world and your reasonable political decisions, farsighted fiscal and money policy which you follow, are the basis of Kazakhstan’s contradiction to the financial crisis. Your policy of development of national economy and business helped the Kazakhstani enterprises to resist today’s collapse and weakening of market.
Karl Johansson, managing partner of “Ernst & Young” company:
- Recently Kazakhstan’s economy became one of rapidly growing ones at the world market among developing countries. The financial crisis impacted the whole world community including Kazakhstan but average-term and long-tern plans of economic development of Kazakhstan can be realized as the country obtains great natural resources.
Peter Tils, chief executive director of “Deutsche Bank Frankfurt”:
- Kazakhstani banks were among the first banks, which were stroke by the credit crisis. They were very vulnerable because of high level of foreign loans due to which they developed in past. But gloomy forecasts were not realized as one year has passed. On the contrary, stability of macro economic and financial system was supported.
The anniversary meeting of the council of foreign investors ended with a group photo. It was decided that the next meeting of businessmen with the President will take place in Kostanai.
