Azernews.Az

By Aynur Jafarova

The Asian Development Bank (ADB) has proposed a Country Operations Business Plan (COBP) for Kazakhstan for 2014-2016.

The proposed COBP, which is consistent with the country partnership strategy (CPS) 2012-2016, supports the CPS' strategic directions of economic development and diversification through infrastructure modernization and finance sector development, including improved access to finance for small and medium-sized enterprises.

The ADB said the main cross-cutting CPS themes of regional cooperation, private sector development, knowledge solutions, environmental sustainability under climate change, governance, and institutional strengthening are promoted under the COBP.

The COBP provides a 3-year pipeline (2014-2016) of proposed lending and non-lending products and services (NLPS) to implement the CPS. It aims to achieve the targets in the CPS results framework.

The bank said Kazakhstan is currently eligible only for financing from ADB's ordinary capital resources (OCR). Indicative public sector assistance of about $310 million per year is allocated in the COBP for 2014-2016.

The COBP will mobilize funds to support projects in the public and private sectors. It will help mobilize public-private partnerships, co-financing operations, ADB-administered trust funds, and special initiatives from ADB's Regional and Sustainable Development Department, as well as promote partnerships with the ADB Institute and other development partners.

The lending program of the COBP focuses on modernizing infrastructure and improving access to finance for small and medium-sized enterprises. A total of $955 million is envisaged to finance six OCR projects during 2014-2016.

The lending program is complemented with an NLPS program that includes project preparation support, capacity development, and a joint government-ADB knowledge and experience exchange program.

The NLPS program will be supported through technical assistance (TA), knowledge products, policy dialogue, and transaction advisory services for public-private partnerships to promote economic diversification and private sector development. The indicative NLPS program for 2014-2016 is over $7.8 million.

In addition to public sector assistance, ADB's private sector operations focus on trade finance, transport, energy, and agribusiness. ADB will also explore selected equity investments in banks, as well as equity and debt financing of investment funds, ADB said.

As the world's largest landlocked country, and with a sparse population disbursed across the vast land, Kazakhstan faces high costs and challenges in accessing global markets and delivering domestic public services. The national priority is improved transport networks to help reduce transport costs and facilitate movement.

ADB's country partnership strategy (CPS), 2012-2016, for Kazakhstan is designed to make the economy more competitive and diverse in order to sustain growth and create jobs. It defines a new development partnership with ADB that is relevant and responsive to Kazakhstan's goal of transitioning to a high-income country.