In a week that has seen the announcement of billions of dollars’ worth of investment into the Central Asian region, China will invest $600 million in the infrastructure of an Uzbek special economic zone while the EBRD will provide €65 million for 200 modern buses for Astana.

During Kazakh President Nazarbayev’s visit to London, the UK and Kazakhstan have signed $4.6 billion in trade deals, and agreements worth $1.5 billion have already been signed following last week’s Astana Invest Forum. We’ll update you next week about whether the International Investment Forum in Tashkent enjoys similar levels of success.

Kazakhstan plans to join OECD Investment Committee in 2016

Kazakhstan plans to enter the Investment Committee of the Organization for Economic Cooperation and Development (OECD) in the upcoming year. Yerlan Khairov, chairman of the Investment Committee of Kazakhstan's Ministry for Investments and Development, announced the news at Wednesday’s Kazakhstan-UAE business forum.

China to invest $600 million in Khorgos-Eastern Gate infrastructure

China will invest around $600 million in the infrastructure of the Khorgos-Eastern Gate special economic zone (SEZ), specifically in the logistics and industrial area, including building warehouses and factories.

The SEZ is located on the border between Kazakhstan and China in the Almaty province and consists of a dry port, logistics and industrial zones covering over 4,000 hectares.

It has all the conditions for the development of multi-modal logistics, large-scale industrial production and trade, which contributes to the development of a world-level transport and logistics hub and distribution centre.

It is planned that the annual volume of cargo will total 4.4 million tonnes by 2020.

UK and Kazakhstan sign $4.6 billion in trade deals

During Kazakh President Nursultan Nazarbayev’s visit to the UK this week the two countries signed trade deals worth £3 billion ($4.6 billion).

Cameron said he wanted Britain to be Kazakhstan's “partner of choice”, adding: “We can see that being put into practice right here, right now, with our countries and businesses about to sign 40 contracts and memoranda of understanding worth £3 billion.”

A meeting of the Kazakh-British Business Council (KBBC) was also held during the official visit. Following the meeting, Kazakh companies signed a number of bilateral agreements with the British side in the oil and gas, mining and energy sectors.

Samruk-Energo signed an agreement with the EBRD covering the financing and modernisation of Shardarinskaya HPP worth about $51.4 million, Samruk-Kazyna Invest LLP signed an agreement with United Green Group covering the implementation of an investment project worth around $105.5 million that involves expanding the capacity of the “Burnoe” plant in the Zhambyl region from 50 MW to 100 MW.

Tele2 and Kazakhtelecom to combine mobile operations in Kazakhstan

This week, the Tele2 Group (Tele2) and Kazakhtelecom announced that they have agreed to combine their mobile businesses in Kazakhstan. This joint venture will strengthen the position of both companies in the Kazakh market by combining Tele2's existing operations in Kazakhstan with Kazakhtelecom's mobile business.

The new business will have more than 5.6 million subscribers and a market share of around 22%. Respectively, Tele2 and Kazakhtelecom will have 51% and 49% of the voting rights and a 49% and 51% economic interest in the joint venture.

The agreement is subject to the approval of the Kazakh regulatory authorities.

Agreements worth $1.5 billion signed during Astana Invest Forum 2015

Last week Astana hosted the international “Astana Invest” forum. This year, participants came from more countries than ever, with over 1,000 investors from 20 countries arriving in Kazakhstan to discuss the issues on the current economic agenda.

More than 30 memoranda worth $1.5 billion have already been signed during and following the forum.

One of the largest of these is an agreement between the Akimat (city government) of Astana and the corporation China Railway Asia-Europe Construction Investment, which will allocate $100 million for the creation of a centre for engineering and leasing construction equipment in Astana. Another agreement signed with Global Gases Group (Singapore) concerns the gasification of the city of Astana. A further $400 million will be allocated for the implementation of infrastructure projects in the Kazakh capital.

EBRD finances modern buses for Astana

The European Bank for Reconstruction and Development (EBRD) is providing €65 million worth of financing to buy 200 modern low-floor buses that will help satisfy the ever-growing demand for public transport in Kazakhstan’s fast-growing capital, Astana.

The loan agreement was signed during President Nazarbayev’s visit to London, by the Akim (Mayor) of Astana and the EBRD’s First Vice President, Phil Bennett.

The new project marks the fourth Kazakh city where the EBRD has invested in modern public transport.

Uzbekistan begins exploring hydrocarbons in Aral Sea

A consortium of investors has begun drilling an exploratory well from atop the Meros drilling rig in the Aral Sea.

Lukoil Overseas reported that the new well, named Meros-1Ex, was seen in 3D-seismic surveys. The depth of the well has been placed at 3,280 metres.

According to this programme, the initial cost of the project will amount to $300 million. Meanwhile, the exact cost of the project will be determined after the development of its feasibility study. The project will be implemented by an international consortium consisting of the Uzbekneftegaz National Holding Company, Russian Lukoil and Chinese CNPC.

The geological exploration works carried out at the initial stage resulted in the discovery of the new West Aral hydrocarbon field with estimated natural gas reserves of 11 billion cubic metres, and 6 prospective structures, 4 of which have been certified and prepared for deep drilling.

Kazakh National Welfare Fund attracts loan worth $1.5 billion

The Samruk-Kazyna Kazakh National Welfare Fund has signed a five-year syndicated term loan facility worth $1.5 billion.

The Bank of Tokyo Mitsubishi UFJ Ltd., a member of the MUFG Group, was mandated as the sole coordinator, bookrunner and mandated lead arranger on the facility in this debut transaction for the borrower.

In addition to the Bank of Tokyo Mitsubishi UFJ, JP Morgan Chase Bank, N.A., Mizuho Bank, Ltd, Sumitomo Mitsui Banking Corporation, Credit Suisse AG and Deutsche Bank AG all joined this facility.

The initial loan is for $1 billion; however, the Samruk-Kazyna could increase this figure to a final total of $1.5 billion.

Iran and Turkmenistan determined to meet $60 billion bilateral trade goal

Iran’s oil minister, Bijan Namdar Zanganeh, has stated that Iran and Turkmenistan are determined to meet the $60 billion bilateral trade target within a 10-year period in remarks made at a meeting with Ahmed Gorbanov, Turkmenistan’s ambassador to Tehran.

The total value of bilateral trade between the two countries has increased from $90 million in 1991 to $4 billion in 2014.

Gorbanov stressed that all countries in the region would benefit from the implementation of the Tehran-Ashgabat agreements and referred to the launch of the Kazakhstan-Turkmenistan-Iran railway project as an outstanding example of cooperation between Tehran and Ashgabat.

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