Regions and Countries

	Table of Contents
p. 4 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2006-2008: Kazakhstan

---

IV. Country Performance and Assistance Levels

A. Proposed Lending Level

30. The Government has indicated a willingness to borrow for public sector projects that entail significant knowledge transfer. Government borrowing is thus likely to remain highly selective. Strong development impact and/or innovative approach, in particular, the kind that will help mobilize central Government funds for local investment needs, will be key to realizing the willingness to borrow. The lending level will remain low and is likely to decrease over the medium term even under the expansionary medium-term fiscal policy for 2006–2008. The average loan size of $50 million, as envisioned in the CSP, will remain the target. Uncertainties remain, however, with regard to the volume of public sector lending in future years. Private sector operations are being emphasized as the main vehicle for future ADB operations in the country and will gradually increase over time.

B. Nonlending Program

31. The nonlending program will continue to be an important instrument for ADB operations. ADB will provide $1.5 million a year for the TA program. The Government will increase TA cost sharing to maximize the development impact and national ownership. Following the formula agreed in 2004, TA cost sharing will be (i) 40% Government and 60% ADB in 2006, and (iii) 50% each for the Government and ADB in 2007–2008. The TA program for 2006–2008 includes seven TAs totaling $2.9 million (Appendix 1, Table A1.11). They include project preparatory and advisory TAs, and economic, thematic, and sector work.

C. Summary of Changes to Lending and Nonlending Program

32. Changes from the CSP are mainly schedule adjustments to meet developments since the CSP was finalized. ¹³ Nonlending programs have been adjusted to the revised lending programs. Proposed loans for Regional Rural Development, Second Rural Area Water Supply and Sanitation, and Second Water Resources Management and Land Improvement projects, and associated TAs, are among such cases. Details of the lending and nonlending programs for 2006–2008 are in Appendix 1, tables A1.10 and A1.11, respectively, while those for 2004 are in Appendix 4, tables A4.1 and A4.2, respectively. The concept papers for 2006 lending and nonlending products are in appendixes 2 and 3, respectively.

Back III. Portfolio Management Issues	Country Strategy and Program Update 2006-2008: Kazakhstan