A meeting of the Coordinating Council on Cooperation between the Government of the Republic of Kazakhstan and International Financial Organizations (IFIs) was held at the Government House. The meeting was attended by representatives of the World Bank (WB), the International Finance Corporation (IFC), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the Eurasian Development Bank (EDB), and the Islamic Development Bank (IsDB). By instruction of the Head of State, the Coordinating Council is chaired by the Prime Minister. The Council also includes the Deputy Head of the Presidential Administration of the Republic of Kazakhstan Yerbolat Dosaev and the Chairman of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan Aset Irgaliyev.

Opening the meeting, Prime Minister Olzhas Bektenov emphasized the strategic role of international financial institutions in implementing structural reforms and introducing best practices aimed at ensuring high-quality economic growth.

“Reformatting the work of the Coordinating Council and the mechanisms of interaction with international financial organizations is being carried out under the direct instruction of the President. This underscores the level of attention the state pays to cooperation with respected financial institutions. We have many successfully implemented joint projects. I am confident that we can do much more. The country has significant potential, and with your support, I believe we can fully realize it,” Olzhas Bektenov stressed.

The agenda included issues of increasing the participation of international financial organizations in projects that provide a multiplier effect on the country’s economy.

Specific initiatives in the area of public-private partnership development were reviewed, as well as issues of independent fundraising by the regions of Kazakhstan and a number of joint projects with IFIs aimed at further expanding transport potential and scaling up financial support programs for micro-, small-, and medium-sized enterprises.

With regard to the application of the PPP mechanism, attention was drawn to the new edition of the Law “On Public-Private Partnership,” aimed at introducing the mechanism of “program PPP” to improve project quality, shorten planning timelines, and reduce budget expenditures through the optimization of several procedures. To date, 7 large-scale projects are being implemented jointly with IFIs in the sectors of energy, healthcare, education, water supply, and transport. In total, more than 1,100 PPP contracts (including completed ones) have been concluded, amounting to 2.7 trillion tenge.

The IFC Representative in Kazakhstan, Zafar Hashimov, presented proposals regarding further improvement of the regulatory framework, project tendering procedures, and active promotion of Kazakhstan’s investment opportunities on international platforms.

“ADB is a partner of Kazakhstan and is ready to support the Government in its initiatives, including improving the conditions for public-private partnership. We consider identifying a pipeline of PPP projects an important step. This helps attract reliable investors and contributes to strengthening competition in the Kazakhstani market. This approach corresponds to earlier recommendations by ADB. We highly appreciate the proactive role of the PPP Center in promoting this important stage,” the ADB Country Director Utsav Kumar noted.

Deputy Head of the EBRR in Kazakhstan, Askar Namazbayev, raised issues regarding foreign-exchange risk budgeting, reduction of administrative barriers, and the use of PPP mechanisms for the implementation of infrastructure projects, etc.

Deputy Prime Minister – Minister of National Economy Serik Zhumangarin and Deputy Head of the Presidential Administration Yerbolat Dosaev commented on the issues raised.

The Prime Minister highlighted the importance of partnership with international financial institutions in the housing and utilities sector, including within the National Project “Modernization of the Energy and Utilities Sector,” as well as in the development of digital technologies and the introduction of artificial intelligence.

During the discussion of independent fundraising mechanisms for investment projects in cities of republican significance, participants noted the Government’s consistent efforts to strengthen the budgetary autonomy of regions. A number of tax revenues have been transferred from the republican to the local level. The new Budget Code contains provisions expanding the financial powers of local budgets and increasing their stability. Currently, the city of Almaty has the ability to directly borrow funds from international financial institutions. The confirmation of the city’s credit rating at the “BBB+” level by the international rating agency Fitch also ensures favorable conditions for attracting external financing. Representatives of the IFC and EBRR expressed their readiness to support the implementation of environmental projects in Almaty.

Attention was given to the capital investment program of NC “KTZ” involving borrowed financing under World Bank investment guarantees. The program provides for reconstruction, restoration, and repair of the railway network, as well as the acquisition of electric rolling stock, including locomotives and passenger coaches.

The World Bank Country Manager for Kazakhstan, Andrei Mikhnev, emphasized the importance of strengthening the country's transit potential and expressed readiness to provide comprehensive support for this program.

Issues of cooperation between NIHC “Baiterek” and ADB within the “Orleu” program aimed at stimulating entrepreneurial activity were discussed. Under this program, additional funds are expected to be allocated next year to finance SMEs at preferential rates. This will ensure the creation of new jobs in the regions.

The Government supports major projects aimed at economic growth and the development of the country's export potential, around which a belt of small and medium-sized enterprises is formed. At the same time, SMEs are the main source of employment for the population. In this regard, as noted by the Prime Minister, broad coverage of SME support measures remains a priority for the state. Therefore, it is important to keep this area of work in focus.

“The President and the Government pay great attention to effective interaction with international financial institutions. This allows the state to implement large-scale projects while using budgetary resources rationally. You have a global presence and can see how various issues are addressed in different countries. Therefore, if there are recommendations regarding improving the business climate, attracting investment, and other economic matters, we will gladly accept them. Overall, the Government is committed to constructive cooperation with all financial institutions,” Olzhas Bektenov emphasized.

Following the meeting, the Prime Minister instructed the heads of government agencies to strengthen oversight over the high-quality implementation and targeted use of loans from financial institutions. The Ministry of National Economy and other bodies were instructed to work through all proposals and recommendations voiced.

#Olzhas Bektenov #Finance #International Cooperation

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