PROJECT

Projects

Summary of Proposed Investment

Project Number

10558

Company Name

Astana Business and Shopping Center

Date SPI Disclosed

Aug 8, 2001

Country

Kazakhstan

Industry

Tourism, Retail and Property

Projected Board Date

Sep 7, 2001

Status

Completed

Sector

Other (Including Restaurants, Amusement Parks, etc.)

Department

Regional Industry MAS MCT

Environmental Category

B - Limited

Previous Events

Approved : Mar 26, 2002
Signed : May 8, 2003
Invested : Jul 30, 2003

Project Description

The project involves the development of a greenfield business and shopping center in view of the anticipated demand for quality office and shopping space in Astana. In 1998, Astana became Kazakhstan''s new capital and most of the national government administration has since been moved from Almaty to Astana. Businesses and foreign investors have also started to establish their presence in the capital city. However, the lack of quality business infrastructure has been an impediment to more rapid movement of businesses to Astana, and has hindered Astana''s emergence as a fully developed new capital. Astana Business and Shopping Center (ABS, or the company) responds to this growing need for modern business and office space in the emerging capital city of Kazakhstan. In Astana, ABS is the first business and shopping center built to international standards.

ABS is located in a busy area of Astana at the intersection of one of the city’s busiest avenues leading to government, city administration, and diplomatic quarters. The project was designed by Turkish architects and has been developed by Ahsel Group, which has been active and known in Kazakhstan, most notably through its Regent Ankara Hotel in Almaty. ABS consists of a 20-floor office/ residential tower and a 3-floor shopping area, which is connected to the tower at the ground floor. The building is suitable for international companies and is equipped with modern facilities, including a fitness center, central heating and air-conditioning, security systems, information technology network, communications systems, fire/ smoke detectors and sprinklers.

Development Impact: The project’s developmental impact is expected to be significant since the project will help upgrade the local business environment, introduce modern business practices, and provide shopping facilities in the local community. The project will help attract private businesses and foreign capital to Astana and help develop the new capital of Kazakhstan.

IFC Role: The project is in line with the Kazakh government''s priority to rapidly establish the city as the nation''s capital by encouraging influx of private businesses in Astana as well. Astana is likely to attract more businesses to relocate from Almaty if the currently available business and office infrastructure is upgraded to meet required international standards.

IFC''s investment would signal confidence in the development of private sector activity in Astana and private investment in Kazakhstan. IFC will provide the company with long-term financing, which is not available in the local market. Furthermore, IFC has introduced Ahsel Group to the World Trade Center organization, which is seeking to extend its network into Kazakhstan and is considering locating their operation in Astana Tower. This is likely to significantly benefit Kazakhstan''s integration with overseas markets. Finally, IFC will work with the sponsors to increase their awareness of international safety and construction standards, which is expected to result in consistent application of these standards in other Ahsel tourism and residential development projects.

Sponsor / Cost / Location

Development Impact