Mirroring Kazakhstan’s ongoing privatisation programme, Uzbekistan is hoping to raise $437 million in privatisation deals as early as this summer, with the sale of state-owned assets in 55 enterprises. In a new entry to the Central Asian market, food giant McDonald’s has announced that it will finally open a branch in Astana, whilst the EBRD has allocated $103 million to rebuilding a key Kazakh highway that connects Astana and Almaty. In Turkmenistan, the Turkmenbashi port is entering a significant period of renovation and modernisation, with plans afoot to modernise the Polypropylene terminal and also build a shipyard with the capacity to process 10,000 tonnes of steel per year.

Uzbekistan eyes $437 million in privatisation deals by summer

Uzbekistan hopes to begin to see the first dividends of its privatisation drive as early as this summer, with the sale of state-owned assets in 55 enterprises.

A decree signed by President Islam Karimov estimated that the privatisation programme could raise up to $437 million and a government commission headed by Finance Minister Rustam Azimov has been formed to oversee the privatisation process.

Uzbekistan to establish large food industry holding

Uzbekistan is abolishing its Association of Food Industry Enterprises and establishing a new holding company in its place, which will include 176 enterprises for the production of food, oil and fat, meat and dairy products.

Private enterprises that produce food products may become associate members, voluntarily joining the Uzbek Food Industry Holding. A fund for the development, reconstruction and modernisation of food industry enterprises will also be established under the holding.

Alstom increases its stake in Kazakh joint venture

Alstom has completed a deal to double its stake in its Kazakhstan joint venture, EKZ. The French company now has a 50% stake in the JV, which was set up to manufacture electric locomotives for Kazakhstan, and will be given an extra seat on the EKZ board of directors.

The Kazakh national rail provider Kazakhstan Temir Zholy and locomotives and rail manufacturer Transmashholding each retain a 25% stake.

Alstom and EKZ have also signed an agreement to produce the locomotives’ on-board transformers at EKZ’s facility in Astana.

Chinese and Kazakh companies sign memo on complex alloys plant construction

The Chinese company Sinosteel and Kazakhstan’s Karaganda complex alloys plant have signed a memorandum of joint project implementation within the Kazakh Saryarka special economic zone.

According to the statement, a meeting was held between the region’s business community and Chinese representatives. The round table discussion covered the issues involved in the construction of the Karaganda complex alloys plant. The event was organised as part of Kazakh-Chinese cooperation in the fields of industrialisation and investment.

According to the Mayor of the Karaganda region, Nurmukhambet Abdibekov, the project’s implementation will attract investments totalling 82.5 billion tenge. Abdibekov clarified that the manufactured products will be used in the steel industry, as well as during drilling and blasting.

Over twenty oil and gas wells to be closed in Kazakhstan

Over the course of 2016, 22 abandoned oil and gas wells will be closed in Kazakhstan as part of a wells closure programme, according to the Kazakh ministry for investments and development.

As part of this same programme, 9 oil and gas wells were closed in Kazakhstan in 2015.

The abandoned oil and gas wells cause irreparable damage to the environment, flora and fauna both on land and in the sea, and lead to the depletion of hydrocarbon reserves.

McDonald’s finally announces foray into Kazakh market

McDonald’s will finally open its first restaurant in Kazakhstan, and indeed in the whole of Central Asia, in March 2016. Another 15 will open soon afterwards, in a belated foray into Central Asia’s largest economy.

After more than a decade of deliberation, the American fast-food giant will open an outlet in the Kazakh capital Astana on 8 March 2016 after investing $3.5 million into the franchise project, according to Khamzat Khasbulatov, president of McDonald’s Russia unit, which will support the Kazakh expansion.

Kazakhstan discovers more oil

Oil has been discovered during exploration activities at the north-eastern flank of the S. Nurzhanov field, Liman and Akkuduk blocks in Kazakhstan.

During exploration, light crude oil flowed at a rate of 130 tonnes per day. Moreover, a natural oil flow rate of 3.3 cubic metres per day was obtained at the Liman block. Preliminarily prospective resources are estimated at 3.9 million tonnes of recoverable hydrocarbons.

The company plans to drill two appraisal wells in 2016-2017 and to start trial production in 2018.

EBRD to allocate $103 million to rebuild Kazakh highway

The European Bank for Reconstruction and Development (EBRD) will allocate $103 million to modernising the Centre-South Road Corridor, which stretches between Kazakhstan’s major cities Astana and Almaty.

The Bank allocated the loan to KazAvtoZhol, a national road operator, under the sovereign guarantee for the reconstruction and widening of an 80-kilometre section between the villages of Kurty and Buribaytal in the Almaty region.

Turkmenistan starts independent development of Caspian oil and gas fields

Turkmenistan’s national oil company Turkmenneft intends to implement plans for the development of huge hydrocarbon reserves in the Turkmen territory of the Caspian Sea, in what will be the country’s first ever independent development project in the area.

Deep drilling is already underway at the North Goturdepe and Altyguyi fields.

The reserves of the Turkmen shelf in the Caspian Sea are estimated at 12 billion tonnes of oil and 6.5 trillion cubic metres of gas.

Currently, Turkmenneft operates about 30 fields, which incorporate more than 600 oil, oil-gas, and gas deposits, all at different stages of development.

Turkmenistan building shipyard

A shipyard with a total area of 166,000 square metres is being built in the Turkmen port of the city of Turkmenbashi.

The project is being implemented by the Turkish company Gap Inşaat, and will see the plant having the capacity to process 10,000 tonnes of steel per year.

The new enterprise will be able to implement the full cycle of work on the construction of ships and vessels for various purposes, including tankers, dry cargo ships, tugboats, and oil and gas platforms.

The plant has been designed in accordance with the requirements and international standards of the IACS (International Association of Classification Societies).

Tajikistan to receive €251 million from European Commission

The European Commission (EC) will provide €251 million in development funding to Tajikistan by 2020.

The funds will primarily be allocated to vital sectors for growth and social stability, such as rural development, health, and education, which are particularly important in Central Asia’s current economic climate.

BASF to invest $4 billion in Iran petrochemical plan

Germany’s BASF, the world’s largest chemical producer, plans to invest as much as $4 billion in Iran’s petrochemical industry.

Marziyeh Shahdani, the managing director of Iran’s National Petrochemical Company, has been quoted by the media as saying that negotiations are underway with BASF to construct a petrochemical township in southern Iran.

The German company will have a 60% share in the project, which will be constructed in the Parsian Special Industrial Zone.

Iranian officials have already announced that Germany’s Linde and Japan’s Mitsui are also negotiating with Iran over investments in the country’s petrochemical industry.

Azerbaijan, Georgia and Kazakhstan to establish railway consortium

Azerbaijan, Georgia and Kazakhstan have agreed to establish a railway consortium to ensure the smooth movement of Chinese goods to Europe via the Trans-Caspian International Transport route.

This announcement was made by Bakytzhan Sagintayev, the First Deputy Prime Minister of Kazakhstan, who led a government delegation visiting Tbilisi, Georgia. The Trans-Caspian route was one of the main topics of discussions held between representatives of the Georgian and Kazakh governments.

Sagintayev said that the railway departments of the three countries agreed that this railway consortium will provide the movement of goods from Chinese ports to the Georgian port of Batumi, and then on to Turkey and Europe.

The Trans-Caspian route has the potential to become attractive and profitable for consignors from European countries and will transport approximately 300,000-400,000 containers by 2020.