KAZAKHSTAN PROJECT PREPARATION FUND

NEW INSTRUMENT OF BAITEREK HOLDING ON THE SUPPORTING OF THE INVESTORS

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KPPF mission is to increase investment attractiveness of development projects in Kazakhstan

Investment projects at the stage of an idea requiring the development of a business model and project feasibility study to attract investors

Projects

Investors seeking: - Attractive investment projects in Kazakhstan - Projects ready to be launched with high quality feasibility study

Investors

KPPF mission is to increase investment attractiveness of development projects in Kazakhstan through the following:

Search for development projects which require high quality project documentation

Project documentation development

Financing project documentation development on refundable basis

Finding investors for potential projects

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Project documentation development

Project documentation development

Project documentation development

Finding investors

Finding investorsFinancing project

documentation development

“Basic”

“Extended”

“Full”

Content of services within each package Type of package

Fixed fee1

Fixed fee1

Success fee1Success fee1

1 - Fees for services are determined for each project individually

Success fee1

Success fee1

The Fund offers its services within 3 packages

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For project initiators

Financing project documentation development

Searching for consultants required for project development

Coordinating all works related to project development

For investors

Providing investors with high quality project documentation

Financing project documentation

development stage

Finding investors and support in due diligence

Project documentation development

Key international players

Key local playersЦентр стратегического анализа и развития

Major players on Kazakhstan market for each type of services KPPF value propositions

1 2 3

Comprehensive development of a project

IFI (partially)

Financing project documentation development stage is the main competitive advantage and value proposition of KPPF for project initiators

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Our partners: Development Bank of Kazakhstan Kazyna Capital Management and private equity funds IC “Kazakh Export” Entrepreneurship Development Fund “Damu” JSC International financial institutions (WB, IFC, EBRD, ADB) Kazakh and international consulting companies

List of projects Showcase of projects Projects under Development

Potential clients of KPPF

Owners of projects Investment funds International

Development Institutions

Others

2. Initial assessment▪ a project meets additional

criteria▪ express analysis of projects▪ Evaluation of a potential interest

of investors and financial institutions

▪ An Initiator of a project preliminary agrees with the KPPF’s terms

1. Initial selection▪ Selection of projects

according to the initial list of selection criteria

3. Accepted in implementation▪ Availability of real interest from

investors▪ Prior consent of financial

institutions▪ Projects approved by KPPF

Principles for selection of projects for the KPPF's portfolio

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Others

Finance

Focus ▪ Projects of industrial and infrastructural sectors of the economy

▪ Projects of commodity sectors and production of the first redistribution such asoil and gas, agriculture and other are excluded

▪ A project’s cost is more than 20 mln. USD for infrastructure projects and 12 mln. USD for industrialprojects

▪ A project potentially meets a bank financing criteria (bankable)▪ Recoverability of the funds spent by the Fund

▪ Initiator of a project should be a private person/company. In case of the state’sinvolvement an exit plan must be provided.

▪ An initiator and / or the Project has no negative credit and / or reputational stories, trials andother processes that have a negative impact on the project

▪ There is a strategic partner of a licensor, an investor with experience in an industry in whichrealization of the project is planned (only for greenfield projects - projects from scratch)

Initial selection of projects will be made using the following preliminary criteria

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Development of projects starts from a moment of initiation of aproject and until the project receive funds / secure a contract

Structuring of a project ▪ Commercial and legal structuring of relationship between project owners, investors and creditors

Preparation of a project documentation

• Formulation of detailed project documentation that includes:- Analysis of the socio-economic impact;- Technical section of the project;- Financial model of the project;- A comprehensive risk analysis;- Legal analysis of the project;- Other services.

Structuring ofdevelopment process

▪ Adoption of a work plan

▪ Definition of a project team

▪ Engaging consultants

Project stages Description of services

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Project description: Concession project of construction and operation of the University Clinic in Almaty

Capacity: hospital with 300 beds, clinic with 300 visits per shiftProject cost: ~80 mln USDRequirement: PPP contract modelled on «design-build-finance-transfer-

maintenance»Project initiator: Governmental institutionProject location: Almaty, Kazakhstan

Construction period: 38 monthsOperation period: 11 years 11 monthsCurrent status: The concession proposal has been approved by the Ministry of National Economy of theRepublic of Kazakhstan. The tender documentation and the draft concession agreement were prepared.Functions of the concessionaire:

• Financing, construction and equipment;• Operation, maintenance and management of the concession, including current and capital repairs of the

concession object.

University Clinic in Almaty

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Project description: The pilot a regional PPP project in vocationaleducation and training and operation of the college for 600 students witha dorm for 200 students in Kyzylorda,Capacity: 600 seats (~ 200 graduates each year), dorm with 200 bedsProject cost: 9,5 mln USDRequirement: PPP contract modelled on «build- transfer-operate»Project initiator: Governmental institutionProject location: Kyzylorda, Kazakhstan

Construction period: 24 monthsOperation period: 8 yearsCurrent status: The concession proposal has been approved. The tender documentation and the draftconcession agreement are under development.Private partner functions:

• Financing, construction and equipment;• Operation, maintenance and management of the concession, including current repairs of the concession

object.

College with 600 seats on profile «Construction and Engineering» with a dormitory with 200 seats in district SPMK-70 of Kyzylorda city

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Project description: Construction/modernization, technical upgradingand operation of the Kazakhstan customs checkpointsCapacity: 10 customs checkpoints, 1 main dispatch officeProject cost: around 390 mln USDRequirement: PPP contract modelled on «design-build-finance-transfer-maintenance»Project initiator: Governmental institutionProject location: Board of Kazakhstan with China, Uzbekistan,Turkmenistan

Construction period: 32 monthsOperation period: 10 yearsCurrent status: A package of tender documentation is under development. Based on the results of thework, it is planned to announce a tender for the selection of the concessionairePrivate partner functions:

• Financing, construction and equipment;• Operation, maintenance and management of the concession, including current and capital repairs of the

concession object.

Modernization and technical upgrading of the Kazakhstan customs checkpoints

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Project description: Construction and operation of the railway line bypassingthe railway junction of Almaty stationCapacity: 74,7 km, Average annual capacity is 13.73 million tons per yearProject cost: around 300 mln USDRequirement: PPP contract modelled on «design-build-finance-transfer-maintenance»Project initiator: Governmental institutionProject location: Almaty, Kazakhstan

Construction period: 36 monthsOperation period: 27 yearsCurrent status: A package of tender documentation is under development. Based on the results of the work, itis planned to announce a tender for the selection of the concessionairePrivate partner functions:

• Financing, construction and equipment;• Operation, maintenance and management of the concession, including current and capital repairs of the

concession object.

Railway line bypass of Almaty station

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“Moscow” Business Center, floor 16, 18 Dostyk street, 010000, Astana, Republic of Kazakhstan

+7 (7172) 79-04-50

kense@kppf.kz

For further information, please refer to the following contacts:

Asset AbdygapparovManaging Directora.abdygapparov@kppf.kz

Aizada ZhunisbekovaManaging Directora.zhunisbekova@kppf.kz

Aslan BulatovChief Projects Officera.bulatov@kppf.kz

Contacts