Kazakh PM instructs to conclude within two weeks Investment Agreement with ESTA Construction
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with General Director of ESTA Construction Mustafa Toprak. They discussed the construction of a plant for the production of urea and ammonia, El.kz cites primeminister.kz.
The $1.35bn project envisages the creation of a large gas chemical production facility in Mangystau region, near the Kuryk seaport. The location of the plant was chosen for its logistical advantages to ensure optimal conditions for exporting products across the Caspian Sea. The plant will produce up to 700,000 tonnes of urea and 42,000 tonnes of ammonia per year, which will reduce dependence on imported fertilisers and provide the country's agricultural sector with high value-added products. The project will employ up to 3,000 specialists and will create 400 permanent jobs.
Today, Kazakhstan has established production of three types of fertilisers: ammonium nitrate, ammophos and ammonium sulphate. However, with a scientific demand of 3.2m tonnes, domestic capacity meets only 56% of demand, producing about 1.8m tonnes of fertiliser a year.
Olzhas Bektenov emphasised that the creation of own urea production will reduce dependence on imports and strengthen food security.
"The Head of State pays great attention to the development of the country's agro-industrial complex. Last year we had a record harvest. The government has allocated 700 billion tenge to support agrarians. An important issue is the provision of quality and affordable mineral fertilisers. Therefore, your project is of interest to us from the point of view of meeting the domestic demand for urea, as well as its export," Head of the Government of the Republic of Kazakhstan noted.
In addition, during the meeting the measures of state support for agricultural producers were discussed. Currently, Kazakhstan has a subsidy programme covering up to 60% of the cost of fertilisers, and since March 2024, a mechanism of advance subsidies has been introduced, thanks to which funds are transferred to producers in advance to reduce the cost of production. Last year, 46.4 billion tenge was allocated for these purposes, and 35 billion tenge is envisaged for 2025.
As a result of the meeting, the authorised state bodies were instructed to expedite all procedures and within two weeks to submit for signature a draft Investment Agreement with ESTA Construction, which will launch the implementation of a major investment project.
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