1. Invest in Almaty

2. Almaty Development Center 2 Almaty City  The President of the Republic of Kazakhstan in his 2014 the State of the Nation Address sets a clear task to improve the investment climate and scale up attraction of investments for –industrial-innovative development.  In pursuance of the President’s order, the Government of the Republic of Kazakhstan has developed a package of legislative initiatives to create incentives for investment in Kazakhstan.  Implementation of development investment programs gains particular importance in the regions at the local level.  Almaty is the southern capital of Kazakhstan and plays an important role for attracting investments to Kazakhstan as a major financial, logistics, commercial and cultural centre. Population: More than 1.6 million people Currency: Tenge (KZT) Territory: 683,5 sq.km. Height above sea level: 500-1700 m. Climate: sharp - continental Time zone: GMT+06:00 Postal code: 050000-050063 Area code: 727 website: http://www.almaty.gov.kzhttp://www.almaty.gov.kz

3. Almaty Development Centre 3 Social-economic figures of Almaty City 20092010201120122013 Population, in thousands persons. 1391.114141449.81475.41507.5 GRP, bill. KZT 3175,33923,44896,357306471,8 Industry production volume, bill.KZT 353,5429,5532,7584,6616.2 Month salary, KZT 95139106597121674134378142310 Unemployment rate, % 7.76.35.6 5,6 Export, mln. USD 4512,84935,36283,46142,0 Import, mln. USD 11273,012385,516039,120774,2 Regional Budget: Revenues, mln. KZT 278336327319312423342609358242 Expenses, mln. KZT 274051296096315719331388340701 Exchange Rate USD/KZT 147,5147,35146,62149,11152,13 Kindergarten amount 162178 201217 Children in Kindergartens, in thousands persons 34,436,9 40,639,7 Schools and Gymnasiums Amount 242241236235238 Schoolboys, in thousands persons. 175,3173,7175,2179,2187,9 High School and Universities Amount 52 474543 Students amount, in thousands persons 187,2186,5183,2158,5148,5 Amount of active SME Companies 1598818688161771398714417

4. Almaty Development Centre 4 Social-economic figures of Almaty City Gross Regional Product and positive budget fiscal position suggests growing conditions for future capital investment in Almaty.

5. Almaty Development Center 5 Legal framework for investors (1)Law on Investments  Cover up to 30% of «Investment subsidy»  Exemption from corporate tax and property tax  Natural Grants  Exemption from customs duties (2) Law on Concessions  Payment for accessibility of the object of concession  Partial compensation of the investment costs  Partial compensation of operation and maintenance costs (3) Law on Special economic zones in the Republic of Kazakhstan  Visa support of foreign nationals (4) State support program of industrial and innovative activities  Reimbursement of auditing expenses  Subsidizing of bank interest rate  State guarantees for commercial loans (5) Law on Project financing.  Securitization support on Stock Exchange

6. 6 Why invest in Almaty Almaty Development Centre  According to GFCI (Global Financial Centers Index) rankings for 2014 Almaty city held 58th place. GFCI rating includes assessment of business environment, development of financial sector, infrastructure, human capital and the city reputation.  Introduction of simplified entry to Almaty in visa-free regime for the citizens of 10 countries: Great Britain, Germany, Italy, Malaysia, the Netherlands, UAE, Republic of Korea, USA, France and Japan.  Almaty City will host the International Universiade in 2017. Also Almaty applied to IOC for holding Winter Olympics Games in 2022. Estimated capital expenses for Olympic Games preparation till 2022 is $6,6 billions  Gross Regional Product and positive budget fiscal position suggests growing conditions for future capital investment in Almaty. Gross regional product of Almaty (bill. KZT)

7. 7 Almaty Development Centre According to GFCI (Global Financial Centers Index) rankings for 2014 Almaty city Ranking rose from 58 th to 43th place. GFCI rating includes assessment of business environment, development of financial sector, infrastructure, human capital and the city reputation. GLOBAL FINANCIAL CENTER INDEX

8. 8 Points of Growth Almaty Development Centre  Industrial zone in Alatau district – industrial territory designated for development of production capacities for: food processing, light industries, engineering, construction and pharmaceutical industries.  Free economic zone «Park of innovative technologies» was created for technological development in the following spheres: information technologies and telecommunications; electronics and renewable sources of energy.  Development of international alpine tourism in the suburbs of Almaty Estimated revenue from the tourists of alpine cluster may be $3 billion per year. Within the range of 40 km from Almaty there are several winter sport resorts, such as: Shymbulak, Kokzhailau, Akbulak, Turgen, Almatau, Kaskelen, Almarasan, Ushkonyr.  Transport infrastructure development Local authorities have ambitious plans for the development of the city infrastructure including: new airport, subway, the light rail transport, paid highway BAKAD, Almaty-Kapchagai highway.

9. Official mandate of Almaty Development Centre 9 Almaty Development Center JSC «Almaty Development Centre» (ADC) was established in 2008 by Almaty Municipal Authorities as a Regional Development Institution. «ADC» mission: Assistance to Municipal Authorities in strategic development of social, economic and cultural infrastructure of Almaty city. According to its Charter and Local Authorities Mandate «ADC» was authorized to implement following functions: ORIGINATION AND STRUCTURING : OF MUNICIPAL INVESTMENT PROJECTS: Public financial support to private investment projects on risk sharing basis ORIGINATION AND STRUCTURING : OF MUNICIPAL INVESTMENT PROJECTS: Public financial support to private investment projects on risk sharing basis REGIONAL PRIVATE PUBLIC PARTNERSHIP DEVELOPMENT Financial advisory services and acting as PIU for Municipal PPP projects. REGIONAL PRIVATE PUBLIC PARTNERSHIP DEVELOPMENT Financial advisory services and acting as PIU for Municipal PPP projects. “ONE STOP” INVESTOR SERVICES CENTER Informational support to potential investors and implementation of Government Support instruments “ONE STOP” INVESTOR SERVICES CENTER Informational support to potential investors and implementation of Government Support instruments ECONOMIC EXPERTISE AND CONSULTING SERVICES Expertise of Municipal investments in form of budget lending and direct equity investment ECONOMIC EXPERTISE AND CONSULTING SERVICES Expertise of Municipal investments in form of budget lending and direct equity investment

10. One stop - Investor Services Centre 10 Almaty Development Center JSC «Almaty Development Center» is authorized as «one-stop» Investor Services Center by Almaty Municipal decree #4/1133 in December 2013. «One stop» Investor Services Centre includes follow official functions:  Informational support for potential investors  Risk sharing project structuring based on Public-private partnership legislation  Promotion and implementation of Government Support  Consulting services (development of feasibility studies and business plans for investors)  Database management of perspective and existing investment projects in Almaty  Event management for investors in Almaty

11. City Projects 11  Video fixation system of traffic violations. Project volume: 1bln. KZT Almaty Development Centre  Private bus fleet modernization, loan facilities for 200 new buses: 2,5 bln. KZT  Municipal sport playground management. Project volume: $600.000  Public lightning system renovation, Project volume: $34 mln.  Light Rail Tramway building, Concession volume: $500 mln  Electronic ticketing in public transport  New recycling plant  Intellectual transport system of traffic light, project volume: $15 mln

12. Almaty Development Centre 12 Islamic finance  Kazakhstan was the first country in CIS that introduced Islamic finance legislation  Almaty city positioning as a regional financial center for Islamic Finance  «Almaty Development Center» in cooperation with «Islamic Development Bank» and «Islamic Corporation for Development of the Private Sector» are searching for perspective projects in Almaty like:  Building of Islamic Finance Tower  Halal meat production hub

13. Almaty Development Centre 13 Big Almaty Ring Road - “BAKAD”  BAKAD is high priority project under personal control of the President.  BAKAD is part of Big Transport Route «West China – West Europe».  Length of road – 65.4 km (4/6 road lines)  Estimated capital expenses of the project amount $740 mln.  Project Time Duration – 30 years  Building period - 3 – 4,5 years  Contract structure – BTO concession «Build – Transfer – Operate»

14. Almaty Development Centre 14 EXPO 2017  Kazakhstan is hosting «Expo 2017» exhibition of innovative, information and industrial technologies.  Almaty city, as Part of Expo 2017, is preparing to implement a project portfolio to focus on green energy solutions.  Local Authorities with the support of EBRD have created subsidiary as an operator for green energy projects with estimated value of $35 mln.

15. 15 Almaty Development Center 15 Almaty Development Centre Thank you for Attention!