1 Kyzylorda Region Region is located in the south of the country. As of January 1, 2012 the area is 226 thousand square kilometers, the region's population is 713 thousand people. Density of population over the region per 1 km is 3.2 people. Resource base includes the rich reserves of hydrocarbon materials, non-ferrous metals (lead and zinc), uranium, vanadium, sodium chloride, subsurface waters, and etc. Administrative-territorial structure of the region includes 7 districts and the city of regional subordination Kyzylorda. The main socio-economic indicators of the region for 2011 are provided in the table. 1 Demography: Regions population is growing gradually. Population in 2000 was 599 thousand people, at the beginning of 2012 – 713 thousand people: As of January 1, 2012 Area, thousand square kilometers Share in total RK area, % Density for 1 square kilometer Index level in RK Population, thousand people Share in total RK population, % 2011 Economically active population Share in total RK EAP, % employed Share in RK index, % hired labor Share in RK index, % unemployed Share in RK index, % Monthly average nominal salary, Tenge Index level in RK Nominal population income (estimation), average per capita a month, Tenge Index level in RK Compared to previous year in % Level in RK GRP, billion Tenge Share in total RK GRP, % CPI (end of period), by December of previous year in % Index level in RK Volume of industrial product, billion Tenge Share in RK index, % Agriculture total output (services), billion Tenge Share in RK index, % Fixed asset investment, billion Tenge Share in RK index, % Retail trade, billion Tenge Share in total RK index, %

The number of employed population increases and unemployed population falls in both absolute and relative terms. For 10 years, from 2001 to 2011, the employed population has increased from 86 to 94%, while the number of unemployed people has fallen from 14 to 6%. Characteristic feature of the employed population dynamics is the growth of hired labor and the reduction of self-employed people. From 2001 to 2011 the number of hired labor has increased from 51% to 62%, the number of self-employed people has fallen from 49 to 38%. EAP structure corresponds to the average in RK: 2 EAP is growing with a moderate pace and in 2011 it reached thousand people thousand people of those are employed, 18.6 thousand people are unemployed. Economically inactive population made up thousand people, it is above the level of 2000: Labor Force thousand people Economic ally inactive populatio n Economically active population Including: Unemplo yed Employed including: Hired labor Self-employed Economically active population (EAP)

Unemployment Level The changes of employed population structure are supported by a tendency of unemployment rate reduction from 14.5% in 2000 to 5.5% in 2011 and growth of economic activity of the population: 3 In 2011 unemployment rate of the region was above the average in Kazakhstan – 5.4%:

4 Quality of Life Cost of living has been growing steadily since 2003, however, the values are below the average in RK: Share of population with income used for consumption below the poverty line is decreasing, however, it is above the average in Kazakhstan in 2011: Life expectancy at birth in the region is increasing, and nearly equals the average in Kazakhstan: Some of life quality indicators in 2011:

Enrollment share of the population aged 6-24 years has decreased since 2001, and its values are below the average in Kazakhstan: 5 Enrollment The number of students in technical and vocational education is increasing: The number of children in regular preschools has increased significantly since 2001: The number of students in higher education has fallen compared to 2001, despite an increase of the regions population:

Population Income Population Income Monthly average nominal salary per employee for 2011 is 81,518 Tenge, that is below the countrys average – 90,028 Tenge: In the dynamics the average nominal salary per employee and the average nominal income per capita are ever-growing. The index of the nominal and real incomes showed a decline during the economic crisis in 2009: 6

Economy GRP of Kyzylorda region and its share in total GRP of all the regions has increased from 2000: GRP growth in 2011 doesnt exceed the average growth of total GRP of all the regions of Kazakhstan and makes up 120.4% compared to 2010, against the total value of RK %: 7

Investment Fixed assets investment tends to a stable significant growth, however, its values slightly decreased during the crisis in 2010: The growth of fixed assets investment in 2011 hasnt exceeded the total level in RK regions and made up the negative value of 89.9% compared to previous year against 107.7% of the total average value in RK. This tendency can be partly explained by the base effect from the stronger investment decrease in 2010 in the region compared to the average in RK: 8 The share of fixed assets investment in the Kazakhstans level of investment has increased since 2000:

Agriculture The volume of agriculture production was increasing till 2009, decreased in 2010 to 44.2 billion Tenge: 9 The share of the regions volume of production in agriculture in total Kazakhstans volume of industrys production. In % of countrys agriculture production was manufactured in the region:

Real Sector The rowth of industrial production volumes was observed throughout the study period, excluding crisis year 2009, when the mining industry showed the decrease: 10 The share of industrial production in the Kazakhstans level has increased from 2000: Real sector industries with the highest values of production in 2010 are crude oil and natural gas production, construction, agriculture, other mining industries and etc. These industries have the significant share in the total production volume of RK and regions GRP:

11 The number of industrial enterprises has increased since 2000: The number of construction companies is increasing: The number of working agricultural enterprises was falling until 2009: Sector Enterprises

12 Small and Medium Business The number of registered legal entities as of October 1, 2012 is The SME number is The structure of the enterprises number is close to the RK average level: SME share of the region's GRP was growing steadily until 2010, however, its significantly below the average in RK:

13 Budget revenues of Kyzylorda region in 2011 amounted to 116 trillion Tenge, including 92.4 trillion Tengeof transfers from the national budget. Expenses amounted to trillion Tenge, including 1.3 trillion Tenge of transfers to the national budget. Thus, the region is subventional: Interbudgetary Relations

Kyzylorda Region Development Program for Main target indicators: Volume index of GRP in 2015 shall be 103.2%; Real GRP growth shall be 115.1% in 2015 compared to 2009; The share of the manufacturing industry in GRP shall be 3.3% in 2015; The volume of investment in industry shall be billion Tenge ( , 28 billion Tenge); The growth rate of oil and condensate production in 2015 shall be 100.1%; Volume rate of gas production in 2015 shall be 100.0%; Gross production of chemical products in 2015 shall be 1600 milliom Tenge; GVA growth in the machine industry in 2015 shall be 117.2%; An increase of the GVA of the metallurgical industry in 2015 shall be 256.1% compared to 2009; An increase of the gross agricultural output by 2015 to 77,4 billion Tenge ( ,2 billion Tenge); An increase of the labor productivity in the agricultural sector by 2015 by 2 times; An increase of the the share of SMEs in GRP shall be 7.6% in 2015 ( %); Life expectancy of the population in 2015 shall be 69 years; Total mortality per 1,000 of population in 2015 shall be 5.9% Coverage of preschool education and upbringing in 2015 shall be 70% (in %); The unemployment rate shall not exceed 5.5% by 2015; The share of the population with income below the minimum cost of living shall fall to 8.7%; The share of alternative energy usage in the total energy consumption in 2015 shall be 1.5%; Energy intensity of GRP in 2015 shall be 10%; Reduction of the harmful air emissions to 6.4% in 2015; The share of waste utilization to their formation shall be 48% in