Gulbanu ABENOVA
ALMATY, May 31
(THE GLOBE)
�Our Kazakhstan money is in the Western banks. People from the high ranks having a lot money will hardly bring their wealth to Kazakhstan. And people who earned money honestly are afraid, as the situation in the country is unpredictable. To invest money to our country means just to waste money,� one of the leaders of the opposition movement announced on May 28 in Almaty.
Seidakhmet Kuttykadam interprets the events of the economic life of Kazakhstan (the 1st Congress of Financiers and the Almaty Investment Summit) in the following way. �I think that now the authorities try to do anything to demonstrate that they are looking for a way to get out of the current situation. They pretend to work out some theories, to probate some models. But it seems to me that none of these efforts will help, as the government is not able to change the situation. Whatever fine ideas they choose, nothing will do, because the managerial structure is infected with corruption. This structure is not competent and is not interested in the fate of the country.�
According to Mr. Kuttykadam, these are not the economic events, they are just decorative things. The leader considers it time to pay for our sins, i.e. from this year we have to repay the investments, while the budget is practically empty, and is being sequestrated for the third time. In his opinion, the investments inflow to our country ceased and many investors �went to other countries.� �It is an atonement for the destructive policy. Frankly speaking, this policy led to the economic collapse, and the tenge�s rate reacted to it,� Mr. Kuttykadam stated.
The oil stream is also ceasing. The Customs war with Uzbekistan, Kyrgyzstan and Russia and the cool relations with USA will result in the isolation of our country. Mr. Kuttykadam believes our country will be in a zone of depression.
By Bruce Pannier and Edige Magauin
Prague, 28 May
(RFE/RL)
The importance of the Irtysh River to Kazakhstan was highlighted at a conference in Prague this week organized by the Organization for Security and Cooperation in Europe (OSCE).
During a panel discussion, an official delegation from Kazakhstan submitted a paper which noted that the river is the principal source of water for some four million Kazakhs and that it �is a vital base for the industrial activities.�
The discussion was timely. Earlier this month, Kazakhstan sent a delegation to China to discuss the future of the river. China proposes to build a canal on the upper part of the Irtysh (called �Ertis He� in China) to bring some of the river�s water to developing oil fields in the area once called Eastern or Chinese Turkestan but now known as Xinjiang Province (or the Autonomous Uyghur Region).
The Irtysh begins in the Chinese Altay mountain range. Flowing west, it becomes the Kara-Irtysh River once it crosses into Kazakhstan. Exiting Lake Zaysan it becomes simply the Irtysh and travels to the northwest passing near Ust-Kamenogorsk, Semipalatinsk , and Pavlodar. Not long after, it crosses into Russia, going through the large city of Omsk on the way to join the Ob River. There are hydro-power stations near Ust-Kamenogorsk and at the northern end of Lake Zaysan. A canal built from the Irtysh to the city of Karaganda in 1960s also brings water to central areas of Kazakhstan making agriculture possible there.
Beijing�s oil development plans for Xinjiang stem from the fact that fields in China�s northeast are producing less oil and it is becoming more expensive to extract what there is. But the fields in the Tarim Basin in Xinjiang are virtually untouched. The Turpan field, one of three large fields, is estimated to have 10,000 million tons of oil. But the fields are in the desert and inhabited areas are few and far between. To develop the fields people and equipment need to be brought in, and they will need water.
China actually proposes to tap two rivers which flow into Kazakhstan �the Ili and the Irtysh � but the Ili is of much lesser consequence to Kazakhstan. China�s plan is to build a 22-meter wide, 300-kilometer long canal to reroute water from the Irtysh to the Tarim Basin. The Russian newspaper �Ekonomicheskii Soyuz� wrote last month that according to the plan, �in the first stage 485 million cubic meters from an average volume of 9,000 million cubic meters in the river� will be diverted. That is the first stage but by the time the canal is fully operational, the year 2020 is the estimate, the canal will take 1,000 million cubic meters of water, or more than 10 percent of the total flow.
These developments come as Kazakhstan also plans to use more of the Irtysh�s for development in its north. The country�s new capital, Astana, receives some of its water from the Ishim River. Additional water once came to Astana from the Nura River via Nura-Ishim canal but that canal is so polluted by mercury it had to be closed. A plan is being studied to take water from the Irtysh-Karaganda canal and bring it to Astana. The biggest cities near to Astana - Karaganda to the southeast and Semipalatinsk and Pavlodar to the east - get most or all their water from the Irtysh River. The large power plants and factories of this region are in the areas around those three cities. According to the government�s plans, the population in this part of Kazakhstan should increase as the capital is built up. Kazakh and Chinese officials met in Beijing at the start of May to discuss issues surrounding use of the river, but few details of the talks were made public.
The Kazakh side was hopeful Russia would send a delegation. Kazakh officials mentioned publicly several times that the negotiations concerned Moscow also as Russian cities, such as Omsk, will also be affected. But Russia did not send anyone to the talks.
After discussions, the Chinese side said they understood Kazakhstan�s position. Kazakh Foreign Minister Kasymjomart Tokayev expressed pleasure with the talks and downplayed any danger that the Chinese plans to Kazakh interests. However, his comments clearly indicated the Chinese side had not changed its development plans, and he called for more talks.
�The negotiations between Kazakhstan and China about cross border rivers and water issues have been very productive. During the first stage of negotiations the two sides made a deal on the water issue. China has a plan to divert 1,000 million cubic meters of water during the first 20 years of the next century. This is just ten percent of the river. It will not affect Kazakhstan�s economy. But, any way, we should continue these negotiations. The next stage of the negotiations will take place here in Kazakhstan, either in Astana or Almaty.�
The issue of the Irtysh River�s future is being discussed as cooperation between the two countries on resource development is increasing. In the summer of 1997 China�s National Petroleum Corporation signed a deal worth $9 billion with Kazakhstan to build a pipeline to fields in western Kazakhstan and bring oil to China. The pipeline will pass near to the proposed water canal before bringing oil to the Xinjiang city of Korla in the Tarim Basin. China could argue that the canal is therefore indispensable for the Kazakh oil deal.
There is another concern centering on Chinese oil development plans. Xinjiang Province is the traditional home of the Uyghurs, a Turkic-Muslim people related to the Kazakhs. Beijing has been experiencing difficulties with Uyghur nationalists for several years. The Uyghurs want more independence and less ethnic-Han Chinese moving west. By some estimates the two groups are presently almost equally represented in the population of Xinjiang.
As China allows more privatization of industry under its current economic plan, the Beijing government has warned from the start it will lead to greater unemployment. Unemployed Han workers from oil fields in the northeast may well make their way west to the opening fields of the Tarim Basin. This will put a further strain on the relations between Uyghur and Han in Xinjiang.
ALMATY, May 31 (PR)
Ericsson established its first representative office in Almaty two years ago during the Kitel 97 exhibition. Consisting of only two people and no sales staff, the company has continued to build its presence in the country. The company began its activities in Kazakhstan with the supply of equipment for a telecommunication network for the government and President�s administration.
Ericsson plans to show new solutions in data over GSM and to make a short presentation and seminar about GSM on the Net. Current cellular GSM and TDMA (IS-136) networks are being evolved to better handle datacom services with packet-switched technologies such as GPRS and Edge. For AMPS the company will present autoroaming possibilities in Russia and new facilities for AMPS/TDMA systems.
As IP traffic continues to dramatically increase, Ericsson can propose a Voice over IP solution for telecom carriers, the so-called IP Telephony for Carriers (IPTC) and Double Phone that can add value for existing telecom and datacom providers to add value to newcomers on the telecom market.
By exploiting its many strengths in wireless office systems, voice and computer telephony systems, contact centres, data/IP communication and services, Ericsson is able to provide communications solutions for businesses and public service organizations. The well-known MD110 switching system will be presented.
The newest member of the product portfolio includes the new T 28 dual band mobile phone. The T 28 is based on new technology and includes features such as voice control, automatic world clock and new battery technology. The Ericsson was also present the R250 PRO, the first water, dust and shock resistant mobile for use on the GSM 900 and GSM 1800 networks.
Gulbanu ABENOVA
ALMATY, May 31
(THE GLOBE)
�Our Kazakhstan money is in the Western banks. People from the high ranks having a lot money will hardly bring their wealth to Kazakhstan. And people who earned money honestly are afraid, as the situation in the country is unpredictable. To invest money to our country means just to waste money,� one of the leaders of the opposition movement announced on May 28 in Almaty.
Seidakhmet Kuttykadam interprets the events of the economic life of Kazakhstan (the 1st Congress of Financiers and the Almaty Investment Summit) in the following way. �I think that now the authorities try to do anything to demonstrate that they are looking for a way to get out of the current situation. They pretend to work out some theories, to probate some models. But it seems to me that none of these efforts will help, as the government is not able to change the situation. Whatever fine ideas they choose, nothing will do, because the managerial structure is infected with corruption. This structure is not competent and is not interested in the fate of the country.�
According to Mr. Kuttykadam, these are not the economic events, they are just decorative things. The leader considers it time to pay for our sins, i.e. from this year we have to repay the investments, while the budget is practically empty, and is being sequestrated for the third time. In his opinion, the investments inflow to our country ceased and many investors �went to other countries.� �It is an atonement for the destructive policy. Frankly speaking, this policy led to the economic collapse, and the tenge�s rate reacted to it,� Mr. Kuttykadam stated.
The oil stream is also ceasing. The Customs war with Uzbekistan, Kyrgyzstan and Russia and the cool relations with USA will result in the isolation of our country. Mr. Kuttykadam believes our country will be in a zone of depression.
June 2, 1999
(Wednesday)
14:00 � 18:00 Registration in the Ballroom Foyer
18:00 � Welcome Reception
Present: Kasymzhomart Tokayev, Deputy Prime Minister and
Minister of Foreign Affairs of the Republic of Kazakhstan
Anvar Saidenov, Chairman, State Investment Agency
June 3, 1999
(Thursday)
9:00 Registration & Coffee
9:50 Opening Remarks
Jon Gage, International Herald Tribune, Paris
10:00 Keynote address
H.E. President, Nursultan Nazarbayev, President of the Republic of Kazakhstan
10:20 The EBRD�s Role in the Development of Kazakhstan
Horst Kohler, President, European Bank for Reconstruction &
Development, London
10:40 The Investment Policy of Kazakhstan
Kasymzhomart Tokayev, Deputy Prime Minister of the Republic of
Kazakhstan and Minister of Foreign Affairs
11:00 Development of Kazakhstan�s Financial Market
Karim Masimov, Chairman, Halyk Savings Bank
11:05 Coffee
11:25 Views from Kazakhstan�s Major Investors
Richard Matzke, President, Chevron Overseas Petroleum
Ruth Bachmayer, Executive Director, The World Bank
John C. Klotsche, Chairman of Executive Committee, Baker & McKenzie
12:10 Discussion Panel: Tax and Customs Procedures for Investments
Zeinulla Kakimzhanov, Minister of the State Revenues
Daniel Witt, President, International Tax and Investment Center, Washington, D.C.
Keith Byer, General Manager, Deloitte & Touche, Central Asia
Moderator: Jonathan Cahn, Managing Partner, Coudert Brothers
13:00 Lunch
14:30 Discussion Panel: Monetary Policy of Kazakhstan
Kadyrzhan Damitov, Chairman, National Bank of Kazakhstan
Yerzhan Tatishev, Chairman, Bank TuranAlem OJSC
Paul Ross, Resident Representative for Kazakhstan, International Monetary Fund
Moderator: TBC
15:05 Discussion Panel: Infrastructure Development
Serik Burkitbaev, Minister of Transportation, Communication and
Tourism
Timur Kulibaev, President, KazTransOil
Senior Executive of Ericsson
Moderator: Michael Wilson, Partner, Michael Wilson & Partners
16:10 Coffee
16:30 Discussion Panel: Investment Opportunities in the Manufacturing Industry and Agriculture
Mukhtar Ablyazov, Minister of Energy, Industry and Trade
Kadyrkhan Otarov, Vice-Minister of Agriculture
Erlan Sagadiev, Director General, FoodMaster Company
Moderator: Michael Arruda, Partner, Baker & McKenzie
19:15 Official Reception for Summit Participants on behalf of the Government of the Republic of Kazakhstan
Remarks by Nurlan Balgimbayev, Prime Minister of the Republic of
Kazakhstan
Present: Kasymzhomart Tokayev, Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Kazakhstan
Oraz Jandosov, Deputy Prime Minister and Minister of Finance of the Republic of Kazakhstan
Anvar Saidenov, Chairman, State Investment Agency
June 4, 1999
(Friday)
07.30 Breakfast hosted by the American Chamber of Commerce
Remarks by Oraz Jandosov, Deputy Prime Minister and Minister of Finance of the Republic of Kazakhstan
9:30 Discussion Panel: Kazakhstan�s Securities Market
Azamat Joldasbekov, Chairman, National Securities Commission
Grigori Marchenko, President, D.B. Securities (Kazakhstan)
Aidan Karibjanov, Managing Director, Kazkommertsbank
10:15 Discussion Panel: Regions Prosperous for Investment
Adilbek Dzhaksybekov, Akim, Astana City
Victor Khrapunov, Akim, Almaty City
Imangali Tasmagambetov, Akim, Atyrau oblast
Berdibek Saparbayev, Akim, Kyzylorda oblast
Douglas Townsend, Former Australian Ambassador to Kazakhstan and Senior Advisor, International Tax and Investment Center, London
Moderator: Chang Young Bang, Chairman of the Board of Trustees,
Kazakhstan Institute of Management, and Chairman of the Board,
USKO International Co., Ltd.
11:00 Coffee
11:20 Experience Of Investing in Kazakhstan
James Scott, Managing Director, Almaty Tobacco Company
Erlan Atamkulov, President, Group of Companies �Rahat�
Glenn Catchpole, President, Kazakhstan Mining Association
William Thomas, President, Nations Energy
AES Representative
Moderator: Thomas Johnson, Partner, Cameron McKenna
12:05 Closing Remarks
Jon Gage, International Herald Tribune
12:10 � 13:00
Press Conference
Kasymzhomart Tokayev, Deputy Prime Minister and Minister of Foreign Affairs of the Republic of Kazakhstan
Anvar Saidenov, Chairman, State Investment Agency
Jon Gage, International Herald Tribune
13:00 Closing Luncheon
May 24, 1999
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