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Road maps to address the problems of innovative projects of SPFIID need to be adjusted

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Out off 770 projects commissioned during the last 5 years, 105 have serious problems.

To this conclusion came the experts of NCE RK "Atameken".

Analysis of regional maps, which was conducted in the form of a survey of enterprises, showed that out of the 770 projects, which were put into operation during the last five years, 105 are problematic. Activities of enterprises were suspended, or they work on half load.

33 project suffer from low level of product sales, 27 - due to lack of funding, 9 - due to high production costs compared to competitors within the EAEU.

Another 20 projects experience problems due to insufficient infrastructure, high tariffs and duties. 7 projects have problems with permits, 3 have lack of raw materials and 6 were suspended for various reasons.

The Government has done everything necessary for the normalization of the situation. On behalf of the First Deputy Prime Minister Bakytzhan Sagintayev, to support the troubled projects,  Akimat of the regions have developed and approved 11 road maps.

However, according to the experts of the National Chamber of Entrepreneurs, the developed roadmaps have only a formal character and it only confirms the lack of real solutions to the problems of the projects, included in the maps.

For example, the road map of Kyzylorda region instead of the necessary state support measures retells the entire technological process of the farm "Tatu Agro " on production of tomatoes - preparing the land for planting, purchase of seeds, sowing, irrigation and harvesting, etc. This indicates that during the drawing up of the road map were not identified specific criteria for their formation.

Experts of NCE point out that Akimats have not involved in this work the Regional Chambers of Entrepreneurs. In this regard, the Chamber considers it is necessary in the view of the identified by NCE 105 troubled projects to review roadmaps for the development of effective support measures, and to introduce corrections in them, which are appropriate to support measures, indicated in the Plan of support of industrial enterprises for 2015.

 

However, experts drew attention to the systemic errors in the approach to the formation of the Industrialization Map.

This algorithm works as follows. First, at the first stage of selection, in accordance with the Government Decree "On Approval of Rules of inclusion of projects in the national and regional map of industrialization", Akimats of oblasts send their projects to the Ministry of National Economy. Here projects are checked for compliance with the General scheme of organization of the Republic of Kazakhstan.

In the opinion of its developers, the scheme had to be a map of the distribution of productive forces. Application of it would help to avoid a number of problems, for example, with the opening of two companies, exercising same activities in the same location.

However, the Ministry doesn’t have the methodology of conducting this work. Moreover, all the data of the General Scheme has not yet been updated.

In parallel with the formation of the conclusion of the Ministry of Economy, Akimats send a package of documents on each potential project (business plan, schedule of the project and its financial and economic model) to the regional Chambers of entrepreneurs for consideration and recommendations.

And though, at the moment, the regional Chambers have no single methodology for conducting this work, here projects are being studied for potential market for the products (including the presence in the neighboring regions of similar companies), financial stability, the availability of equity and the possibility of using state support measures.

In addition, Akimats send projects for direct industry expertise to relevant ministries.

As a result, there is a duplication of functions of Akimats and regional Chambers, which in itself indicates the lack of an integrated approach to consideration of projects.

Meanwhile, today the experts of the Chamber and regional Akimats develop maps of regional development. The objective of this strategic document is to identify the real specialization of regions, taking into account the competitive advantages, as it is a clear benchmark for investors. In the future it will allow to solve a number of problems. In particular, it will allow to develop a portfolio of promising development projects; to develop a classifier of promising activities, arising from the specifics of individual regions; to make recommendations on the possibilities of development of industrial cooperation and cooperation with the Member States of EAEU. It would also allow to identify "niche" investment projects and product groups, and to identify regional business leaders.

NCE plans to complete the work on development of regional maps by the end of this year.

Experts of the Chamber came to the conclusion that it is necessary together with the involved government agencies to analyze the quality and timeliness of presented information on each of the criteria, presented by sectoral ministries in the framework of selection of projects for the map. This will help NCE, together with the Ministry of Investment and Development, to develop an algorithm of making recommendations, presented by Regional Chambers of Entrepreneurs.

Chairman of NCE RK "Atameken" Ablai Myrzakhmetov addressed with the appropriate letter to First Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev.


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