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News Release

Kazakhstan Resident Mission 2004 Year End Press Conference

Kazuhiko Higuchi
Country Director, Kazakhstan Resident Mission
Asian Development Bank

11 January 2005
Almaty, Kazakhstan Press Club

ADB Assistance To Tsunami Affected Countries

ADB President Tadao Chino attended the ASEAN Leaders' Special Meeting in Jakarta. He announced that ADB is prepared to provide additional funds up to $500 million to Indonesia, Maldives and Sri Lanka, in grants and highly concessional funds. Further resources, estimated at $175 million, would be made available through reallocation from ongoing programs. ADB is also prepared to lead and fund a $1 million study to develop a tsunami early warning system for the Indian Ocean.

Overview

The year 2004 was the first year of implementation of ADB's Country Strategy and Program. ADB (i) implemented 6 technical assistance projects, totaling $2,75 million; (ii) newly provided 5 technical assistance projects totaling $2,0 million; and (iii) signed the agreement for the $34.5 million loan for rural area water supply and sanitation. [ PDF ] With these, ADB's cumulative operations in Kazakhstan since 1994 have reached 54 technical assistance projects totaling $25,6 million, and 12 loans totaling $502 million.

The year was also a milestone for ADB with the signing of the Private Sector Framework Agreement with the Government. The signing set the stage for ADB to start private sector investments. For 2005 and beyond, ADB will start private sector investment, while sharpening efforts on the implementation of the updated collaboration strategy. Focus will remain policy implementation and institutional capacity building through knowledge transfer.

High Level Dialogue

ADB President visited Kazakhstan (after his last visit in 2001). He met with President Nazarbayev and Prime Minister to discuss ADB's long-term partnership with Kazakhstan.

Private Sector Operations

ADB shares Government view that private sector is a key driving force for development. ADB will explore any industries and modalities that will suit ADB's private sector investments. Specific discussions are expected in Feb 2005.

Country Strategy and Program Update for 2005-2007

ADB updated its Country Strategy and Program for 2005-2007. It retains the strategic pillars of the CSP prepared in 2003. The updated program focuses on (i) sectors that support rural development, and (ii) sectors that help Central Asian regional cooperation. The first group includes regional / rural development, rural water supply, water resources management. The second group includes transport and trade. A major addition in the updated program is financial sector support. SME support, especially to help rural areas, is a major thrust. Institutional strengthening is another key area. A multi-year technical assistance for 2004-2006 is planned for that purpose.

Program Implementation

The $677,000 technical assistance for regional / rural development project completed substantially. Subject to Government concurrence, ADB will prepare a loan proposal in 2005 for Government consideration. ADB newly processed, among others, (i) $800,00 technical assistance for financial sector support (phase I), and (ii) $150,000 (small-scale) technical assistance for state roads development plan. These will be implemented in 2005.

Portfolio Management

Parliament ratified the ADB loan for the Rural Area Water Supply and Sanitation Sector [ PDF ] project in late 2004. ADB's resident mission in Kazakhstan will handle the implementation for closer collaboration.

New Initiative

ADB explored greater Government ownership in ADB TAs, and identified consultant recruitment by Government as an initial step. ADB agreed with Ministry of Environmental Protection to test it under MOEP's TA.

Regional Cooperation

In 2004, ADB supported Kazakhstan's leadership in various regional cooperation initiatives. Under the Central Asia Cooperation Organization, ADB led the development partner group, and worked with the Government to help establish an international consortium on transport. As Secretariat of the Central Asia Regional Economic Cooperation, ADB supported the Government to host the 3rd Ministerial Conference in Astana, and two preparatory Senior Officials Meetings in Almaty. In 2004, ADB substantially strengthened regional cooperation operations by moving the Head of its CAREC Unit from Headquarters to Almaty.