Kazakhstan
News Bulletin
Released weekly by the Embassy of the Republic of Kazakhstan
www.kazakhembus.com
November 5, 2004                                   Vol. 1, No. 49
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In this issue:

President Nazarbayev Congratulates President Bush
New Parliament Hears President’s Agenda at First Session
Political Parties, Government Will Keep Talking
Kazakhstan Railways Buys 200 Locomotive Upgrades from GE
Kazakh Student Wins “Princess of the World” Title


Say it in Kazakh:
Joint session --- Birken otyrys
Young talent --- Zhas daryn
Princess of the world --- Alemdyk khan kyzy


President Nazarbayev Congratulates President Bush

President Nursultan Nazarbayev congratulated President George W. Bush on his reelection in a letter on November 4.

In his letter, the President of Kazakhstan said: “We value highly the cooperation and the strategic partnership between our countries. We hope these relations will be duly developed during your presidency.”

The President noted successes the two countries have already achieved in fighting global terrorism, nonproliferation of weapons of mass destruction, as well as in restoring peace in Iraq.

He wished President Bush success in ensuring prosperity and security for the American people and the world.

Foreign Minister Kassymzhomart Tokaev also issued a statement on that day saying Kazakhstan welcomes President Bush’s victory and looks forward to continued cooperation in fighting terrorism and developing trade and economic ties.


New Parliament Hears President’s Agenda at First Session

The newly elected members of the Majilis began their five year term with the first joint Parliamentary session in Astana on November 3.

President Nursultan Nazarbayev addressed the gathered legislators, delivering a wide ranging speech outlining his vision for the upcoming years. The President asked the Parliament to work together with the Government to implement an ambitious reformist agenda, which reflected last September’s presidential statement.

Reforms in education, social security and healthcare became the major points of the speech, as was the housing construction program. Proposals included raising standards in education, teachers pay, and developing several of Kazakhstan’s universities into internationally recognized world class educational institutions. He repeated his intention to see Kazakhstan basically tri-lingual, using Kazakh, Russian and English languages. The President also proposed raising pensions, and salaries for doctors, as well as re-instituting free prescription coverage for children under 5 and pregnant women and free annual physicals for everyone.

The President reconfirmed his commitment to continued democratization and political reforms, saying now that the elections are over the agenda he proposed in June needs to be put to work. The agenda included increasing the Parliament’s powers, reforming the judiciary through the introduction of jury trials, and introducing direct elections for mayors.

In terms of economy, the President set a goal implementing the innovation and industrial strategy by creating clusters of competitive industries and turning Kazakhstan into the region’s high-tech economic engine. He pointed to the examples of Canada and Austria, as countries next to big economies, as what Kazakhstan should try to become for Russia, China and Central Asia.

Kazakhstan needs to become more competitive globally, the President said, setting an ambitious long-term goal of joining the ranks of the world’s top 50 competitive countries as defined by the World Economic Forum (WEF). Kazakhstan will be ranked by WEF for the first time next year.

The President said Kazakhstan’s GDP per capita rose from US$700 a decade ago to US$2,500 today, and next year it is expected to grow to US$3,000. While that is commendable growth, the President called for continued work to ensure the economy grows even faster so Kazakhstan can move up the ladder of global prosperity.

President Nazarbayev said: “Our generation has a unique chance to choose the right trajectory for development and bring Kazakhstan into the ranks of the world’s developed and prosperous nations. For that, we need consolidation, unity and stability.”

At the new Parliament’s first session, the Majilismen elected Ural Mukhamedzhanov and Sergei Diyachenko, both from the propresidential Otan party, as Speaker and Deputy Speaker of the Majilis. The Otan party commands a 53 seat majority in the 77 member lower house.


Political Parties, Government Will Keep Talking

Leaders of Kazakhstan’s twelve registered political parties will be able to continue the dialogue with the central Government on major political issues in a new National Commission on Democratization and Civil Society established the President of Kazakhstan.

The Commission was set up by presidential decree on November 2. It will include leaders of all registered political parties in the country, several members of both houses of Parliament, and the Minister of Justice. It will be chaired by Bolat Utemuratov, Secretary of the Security Council of Kazakhstan, which parallels the U.S. National Security Council.

Opening the session of the new Parliament in Astana on November 3, President Nursultan Nazarbayev said the Commission will serve as “a venue where different options for the country’s political modernization within the Constitution and the existing legislation should be debated.”

He noted “all constructive proposals will be studied most thoroughly” by the President and the Parliament, adding that the commission’s “doors are open for all parties and political forces of our society.”


Kazakhstan Railways Buys 200 Locomotive Upgrades from GE

Kazakhstan Temir Zholy (KTZ), the country’s state-owned national railway company, and the Export-Import Bank of the United States (Ex-Im Bank) signed financing documents supporting the sale by General Electric Co., Inc., Erie, Pennsylvania, of 200 modernization kits locomotive for KTZ’s locomotives on November 1.

The documents were signed at a ceremony at Ex-Im Bank headquarters by Bank Chairman Philip Merrill, KTZ Vice President Zhannat Satubaldina, and ABN AMRO Bank Senior Vice President Ingrid Cijsouw. Kanat Saudabayev, Ambassador of the Republic of Kazakhstan to the United States, and Robert Parisi, Manager for Locomotive Modernization, GE Transportation Systems, and numerous guests also attended.

The documents support a $122 million long-term loan guarantee approved by Ex-Im Bank’s board of directors last month to finance KTZ’s purchase of the GE locomotive kits. ABN AMRO Bank is the guaranteed lender on the transaction.

“This transaction supports KTZ’s locomotive modernization program and at the same time supports U.S. exporters and U.S. jobs,” Merrill said. “KTZ plays a critical role in the national economy of Kazakhstan because so much of the country’s oil, coal, minerals and other commodities travel over vast distances by rail.”

Ambassador Saudabayev stressed the importance of GE’s participation in Kazakhstan’s railway sector, furthering the country’s strategy to expand economic development by reducing dependence on the oil sector. He added that there are “few companies such as GE who are as qualified to participate in diversifying Kazakhstan’s economy under the industrial and innovation strategy.”

Dr. Satubaldina declared all parties to the transaction “are choosing the right path to build the economy in Kazakhstan.” She said Kazakhstan’s railways celebrated their centenary this year and are moving ahead strongly. According to statistics, more than 70 percent of cargo shipments in Kazakhstan go by rail. Last year, 180 million metric tons of cargo were shipped by rail in Kazakhstan, and this year the figure is expected to grow to 200 million metric tons, mostly because of transit cargo.

Mr. Parisi praised Ex-Im Bank for developing a unique structure for financing the transaction:  KTZ is the first non-bank government owned company in Kazakhstan to receive Ex-Im Bank supported financing without a sovereign guarantee.

Ms. Cijsouw called the financing “one of the largest transactions of its kind in the rail industry" and also praised its “innovative structure.”

The export sale will maintain or create approximately 575 jobs at GE’s manufacturing facilities in Erie and Grove City, PA, and at GE suppliers in Arizona, Georgia, Illinois, Indiana, Michigan, New York, Pennsylvania and Tennessee.

KTZ will use the kits to refurbish 100 of its 18 year old model 2TE10 Soviet-built diesel locomotives, extending their useful lives for another 15 to 20 years.  Ex-Im Bank also helped finance KTZ’s purchase of 54 modernization kits last year which are now in use.


Kazakh Student Wins “Princess of the World” Title

Dina Zhumabekova, a seven year old first grader from the southern
Kazakh city of Taraz, has won the title of “Princess of the World”
at a beauty contest held last month in Odessa, Ukraine.

She was one of more than 50 girls, from 5 to 17 years of age,
seeking the crown.

Contestants had to go through five different competitions. Dina
impressed the jury in every one of them by her excellent skills,
elegant costumes and diverse repertoire. She masterfully recited
monologues in Kazakh, Russian, English and Ukrainian, and also
performed a very difficult Indian dance. She was among the best
in every one of the events and won the overall prize.

Dina is a student at a local foundation called “Zhas Daryn”,
or Young Talent, which has already gained some international
fame. One of its pupils, first runner-up in the Miss Kazakhstan
contest, Tolganai Turebekova, was named the most charming
girl in Central Asia, while another, a “mini” Miss Silk Road,
Moldir Tleuberdiyeva was invited to Johannesburg, South
Africa, for the Miss Universe contest.


Things to Watch:

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For back issues, more news and information visit us at www.kazakhembus.com
News Bulletin of the Embassy of the Republic of Kazakhstan to the USA and Canada
(Compiled from own sources and agency reports)
Contact person: Roman Vassilenko
1401 16th Street NW, Washington DC 20036
Tel.: (202) 232- 5488 ext. 104, Fax: (202) 232- 5845


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Dina Zhumabekova, 7, from Taraz shows off her tiara and sash after winning the Princess of World contest.