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Projects in the Agricultural Complex of West-Kazakhstan Oblast

Projects in the Agricultural Complex of West-Kazakhstan Oblast 14.06.2012 “The Kazakhstan experience in the soft governmental support in purchasing the agricultural machinery provoked the interest of the Russian businessmen”, reports the mass media of West-Kazakhstan oblast according to the results of the visit by the delegation of businessmen from the neighbour Orenburg oblast, Russia, to the region. According to the Uralsk media the Orenburg businessmen liked the terms of financing of the Kazakhstan leasing company “KazAgroFinance”, which “provides the credit at the rate of 6.5 per cent, while in Russia the soft credit is provided at the rate of 18 per cent”. It is noticed that due to this fact one of the Orenburg enterprises intends to establish its branch in Uralsk city (http://uralsk.info/novosti/uralsk/gorod-i-oblast/v-zapadno-kazahstanskoi-oblast-pobyvali-orenburgskie-predprinimateli.html). “KazAgroFinance” JSC welcomes the traditional partnership contacts of the businessmen of two countries thoroughly. They believe in the Company that such meetings of the agricultural producers, having common interests, have a lot better than just sharing the experience. At that, as to the publications on the visit by the Orenburg businessmen to the farms and enterprises of West-Kazakhstan oblast, the Kazakhstan leasing company considers necessary to introduce some clarity and addition to the information related to the terms of financing. At the rate of 6% p.a. for the period of 3-12 years KazAgroFinance provides financing not for purchasing of the agricultural machinery, but for the implementation of the Investment Projects, which objects are located in West-Kazakhstan oblast. It is commonly known that the Company attributes to the investment category the projects related to the creation of the network of large dairy farms, meat poultry farms, greenhouses, up-to-date vegetable storehouses, agricultural machinery assembly factories, as well as the projects on implementation of the drip irrigation technologies in the republic. In addition, the Company provides financing for the projects on forage production, construction and reconstruction of the feed yards, meat processing complexes, and pedigree farms (reproducers), as well as the objects of the grain export and its deep processing infrastructure, construction and modernization of the granaries, slaughter centres as being the investment ones. One of the enterprises visited by the Russian guests is the oil manufacture plant “Batys kunbagys” JSC. This is the prospective production with the capacity of 7 400 ton of oil a year, and which total cost of over KZT1.3 milliard was financed by KazAgroFinance in 2008 at the rate of 4% p.a. for the account of funds allocated from the republican budget. Today, the Company provides financing for purchasing of the pedigree beef cattle by the Kazakhstan farms at the rate of 4% p.a. and for the period of up to 9 years. The implementation of such projects is carried out within the Governmental Program for the Cattle Meat Export Potential Development. The renewal of the agricultural machinery park is financed by KazAgroFinance with two sources of financing at the different rates accordingly. The financing from the Company’s own funds is at the rate of 8% p.a. for up to 10 years. The financing from the attracted funds, i.e. the funds borrowed from the other (foreign and Kazakhstan) financial structures is at the rate of 11 % p.a. with the indexation to the currency of the borrowed funds. It should be noticed that at the present time the Company considers the issue of lowering this rate to 10%. As to the investments in the agricultural sector of West-Kazakhstan oblast, KazAgroFinance reports that about KZT7 milliard had been allocated for the development of the region farms for 2000-2012. The national leasing company financed the purchasing by the economic entities of about 1000 units of the agricultural machinery to the total amount of over KZT4.3 milliard. Among the projects approved to be financed in 2012 are creation of the poultry farms for 6 350 ton of meat products and implementation of the drip irrigation technology for 45 ha in Zelenovskiy region of the oblast, construction and development of the existing vegetable storehouses for 4 800 ton in Terektinskiy region. “KazAgroFinance” JSC is the company established by the Regulation of the Government of the Republic of Kazakhstan in 1999. The key goal is the support of the agricultural sector of the republic by providing the agricultural producers with the access to the financial funds, as well as to the agricultural machinery and technological equipment on the lease basis. It is a part of the National Managing Holding “KazAgro”.

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