The future of ADB spending in Kazakhstan

The Asian Development Bank is to invest up to $1.6 billion in Kazakhstan’s transport, energy and municipal infrastructure sectors. Funding has also been allocated for the country’s finance sector.

These are the four priorities outlined in the 2012-2016 country partnership strategy that ADB and Kazakhstan has recently agreed upon. The strategy aims to support both Kazakhstan’s national development strategy, which focuses on economic diversification, and ADB’s Strategy 2020, the bank’s long-term blueprint that support inclusive growth, sustainable development and regional integration.

In its plans for Kazakhstan’s transport sector, ADB said it will continue helping rehabilitate the country’s transportation networks, particularly railways and roads covered by the Central Asia Regional Economic Cooperation Program. The strategy estimates a $605 million investment in this sector between 2012 and 2014.

Meanwhile, ADB expects to invest up to $110 million in Kazakhstan’s energy sector in 2012-2014. This will be used primarily to replace old energy infrastructure and technologies as well as help Kazakhstan explore the use of clean energy.

For the development of municipal infrastructure, including urban transport and water and sanitation facilities, the strategy estimates investments worth $300 million.

The $100 million allocated for the finance sector will be used to strengthen small and midsize enterprises’ access to finance as well as to facilitate trade and invest in related infrastructure, the strategy notes.

Assistance outlined in the strategy will be deployed through various channels. ADB will provide loans and other types of financing to the private sector, the government and through public-private partnerships. Technical assistance, particularly to support institutional reforms, will also be available.

Kazakhstan is ADB’s 12th highest borrower. It has received $2.34 billion worth of loans from the bank since becoming a member in 1994. More than 50 percent of these loans are for the transport and information and communication sector.

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