KZT600bln needed to finance machine-building projects in Kazakhstan

KZT600bln needed to finance machine-building projects in Kazakhstan
Photo credit: primeminister.kz

Kazakhstan’s machine-building sector observes a slower growth this year compared to the same period of 2023. This is what Minister of Industry and Construction Kanat Sharlapaev said at the Government’s weekly meeting today, Kazinform News Agency reports.

The minister informed the Cabinet of the measures taken to support domestic enterprises.

The first measure aims at increasing the share of home-produced goods through long-term agreements and offtake contracts. A new register of goods, works and services is being compiled, said the minister.

The second measure launched by the ministry is a priority procurement of around 1,500 engineering goods, which positively affected the enterprises’ workload.

According to the minister, machine-building projects of Kazakhstan need approximately 600 billion tenge of financing.

In his words, in 2024, the ministry prepared a financial feasibility study for a project of allocation of funds to modernize the existing plants and to boost the creation of new projects (at 9% interest rate for a period of up to 10 years, with at least 15% of prepayment).

“An appropriate proposal on the allocation of budgetary funds has been submitted for the consideration of the Ministry of Finance,” said Sharlapaev.

Another barrier hindering machine-building sector’s development is lack of highly-qualified personnel, added he.

Sharlapaev said that domestic companies developed dual-learning training programs for educational institutions. Under these programs, students will be able to undergo practical training at the Kentau Transformer Plant, Saryarka Avtoprom, and Hyundai plants.

“We plan to share this experience with other enterprises and launch dual-learning projects in other regions – Kostanay, Kokshetau and Petropavlovsk,” the minister noted.

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