fbpx 49083-001: Countercyclical Support | Asian Development Bank

Kazakhstan: Countercyclical Support

Sovereign (Public) Project | 49083-001 Status: Closed

The Asian Development Bank is working with Kazakhstan to help mitigate the impact of the steep fall in oil prices and the economic slowdown in neighboring countries. The project is contributing to job creation, the provision of social services and supporting low-income households.

Project Details

Project Officer
Dai Chang Song Central and West Asia Department Request for information
Country
  • Kazakhstan
Modality
  • Loan
Sector
  • Public sector management
 
Project Name Countercyclical Support
Project Number 49083-001
Country Kazakhstan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3272-KAZ: Countercyclical Support
Ordinary capital resources US$ 1,000.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Decentralization - Public administration - Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming Some gender elements
Description

The proposed loan will help the government mitigate the unanticipated and significant negative economic impact caused by the steep fall in oil prices and the economic slowdown in neigboring countries. The government's planned fiscal stimulus expenditure will help Kazakhstan stabilize and continue its economic growth trajectory while targeting fiscal sustainability in the medium term. The proposed loan will contribute to employment creation, social services provision, and low-income household support; expand and modernize physical infrastructure; and promote inclusive private sector development.

The impact will be sustained pro-poor economic growth. The outcome will be improved fiscal sustainability.

The loan will have three outputs: (i) measures to promote non-oil and private sector development implemented, (ii) measures to increase employment implemented, and (iii) priority expenditures to sustain jobs and social expenditure maintained.

ADB will release the loan in two equal tranches of $500 million. The first tranche will be released upon loan effectiveness. ADB management will authorize release of the second tranche once the government has met disbursement conditions.

Project Rationale and Linkage to Country/Regional Strategy

In 2014, two significant external factors impaired economic growth, revenue performance, and the government's ability to mitigate these effects. The first was the Russian Federation's economic slowdown, which triggered a downward adjustment in the tenge exchange rate. The second was the steep fall in world oil prices, which fell by more than 50% from the end of 2013 to the end of 2014. Kazakhstan's economy is heavily dependent on oil, which accounts for about 20.0% of GDP, 50.0% of budget revenues, and 76.0% of exports.

Countercyclical Response by the Government: The government has introduced measures to mitigate the significant negative impacts of Russian Federation's economic slowdown and steep fall in world oil prices, and to deliver the conditions for sustainable, long-term, inclusive economic growth.

Measures to Ensure Sound Macroeconomic Management, Including a Sound Fiscal Position: The government and the National Bank of Kazakhstan have taken proactive monetary, fiscal, and regulatory measures to address the significant negative external pressures on the economy.

Impact Sustained pro-poor economic growth (State Program of Infrastructure Development Nurly Zhol for 2015 2019, Employment Roadmap 2010)
Project Outcome
Description of Outcome Improved fiscal sustainability
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Measures to promote non-oil and private sector development implemented

2. Measures to increase employment implemented

3. Priority expenditures to sustain jobs and social expenditure maintained

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Categorized as 'C' since the project is likely to have minimal or no adverse environmental impacts.
Involuntary Resettlement Categorized as 'C' since the project has no involuntary resettlement impacts.
Indigenous Peoples Categorized as 'C' since the project is not expected to have impacts on Indigenous Peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design The proposed loan results from extensive ADB policy dialogue with the government and development partners on economic developments, policy reform, anti-crisis measures, management and monitoring of reform efforts, and other related actions.
During Project Implementation

ADB will release the loan in two equal tranches of $500 million. The first tranche will be released upon loan effectiveness. ADB management will authorize release of the second tranche once the government has met disbursement conditions.

The MOF will be the executing agency for the loan. The implementing agencies will be the Ministry of National Economy, the Ministry of Healthcare and Social Development, the Ministry of Energy and the NBK. Macroeconomic and financial sector conditions will be monitored to determine the impact of countercyclical measures.

Business Opportunities
Consulting Services Not applicable.
Procurement Not applicable.
Responsible ADB Officer Dai Chang Song
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
11, Pobeda Avenue
Astana 010000
Kazakhstan
Timetable
Concept Clearance -
Fact Finding 23 Feb 2015 to 05 Mar 2015
MRM 22 Apr 2015
Approval 21 Aug 2015
Last Review Mission -
Last PDS Update 25 Aug 2015

Loan 3272-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Aug 2015 18 Nov 2015 29 Dec 2015 31 Dec 2016 - 05 Jan 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,000.00 Cumulative Contract Awards
ADB 1,000.00 21 Aug 2015 1,000.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 21 Aug 2015 1,000.00 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Countercyclical Support: Project Completion Report Project/Program Completion Reports Sep 2017
Loan Agreement (Ordinary Operations) for Loan 3272-KAZ: Countercyclical Support Loan Agreement (Ordinary Resources) Nov 2015
Countercyclical Support: Report and Recommendation of the President Reports and Recommendations of the President Jul 2015

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Kazakhstan: Countercyclical Support Validations of Project Completion Reports Sep 2018

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.