Countries and Regions

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p. 3 of 4 BACK | NEXT I. Development Situation II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Lending Levels

Country Strategy and Program Update 2003-2004: Kazakhstan

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III. Portfolio Management Issues

A. Portfolio Performance Implementation

23. As of 31 December 2001, ADB had approved 13 loans for nine projects, totaling $512 million (of which $452 million was from the ordinary capital resources and $60 million from Asian Development Fund (ADF). Nine of the 13 loans (for six projects), accounting for $238.5 million, were active at the end of 2001. The disbursement ratio for 2001 was 25.3%, which is higher than the 2001 ADB-wide average of 20.5%. Forty TA grants totaling $21.2 million have also been approved. TA approvals in 2001 include 3 ADTAs and 2 project preparatory technical assistance (PPTAs), for a total amount of $2.3 million.

24. Of the nine ongoing loans at the end of 2001, three were rated satisfactory, three partially satisfactory, and three unsatisfactory. However, the approval of two loans⁹ rated unsatisfactory has lapsed, as the Government decided to finance the projects with its own resources. The third unsatisfactory loan was declared effective in May 2002. The partially satisfactory rating of three loans (for two projects) was primarily due to start-up difficulties, which delayed implementation by 30-37%. Portfolio performance indicators and the implementation status are in Appendix 1, Tables A1.6-A1.9.

B. Performance Monitoring and Evaluation

25. In 2002, the first project performance audit reports were completed for the Special Assistance Project (SAP)¹⁰ and the Agriculture Sector Program (ASP).¹¹ SAP was ADB's first lending operation in Kazakhstan, providing fast-disbursing financial assistance to help the Government keep the reform program on track and avoid potential setbacks due to rising social tensions. SAP funded the import of medicines, medical equipment, and medical spare parts, and imports by enterprises. Although its short-term impacts were smaller than expected, SAP was assessed as successful as it supported the successful macroeconomic stabilization program. ASP was intended to strengthen the reform process by establishing a competitive and market-based agriculture sector. ASP covered three broad policy areas: creating markets, promoting market competitiveness, and strengthening social and environmental protection. Eleven objectives were set and 42 policy measures to achieve them designed. Seven policy measures were complied with before ADB approval of ASP, while the remaining 35 measures were implemented largely as planned. ASP reform direction has been sustained and augmented and is unlikely to be reversed. Considering its significant achievements and a few shortcomings, ASP was rated successful.

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