Kazakhstan : Joint Government of Kazakhstan and the Asian Development Bank Knowledge and Experience Exchange Program, Phase 3

Public sector management / Economic affairs management - Public administration

1. The proposed knowledge and support technical assistance (KSTA) is the third Phase of the 'Joint Government of Kazakhstan and the Asian Development Bank (ADB) Knowledge and Experience Exchange Program (KEEP)_. The KSTA will support the delivery of demand-driven, just-in-time, analytical and technical knowledge products and services to Kazakhstan. It will contribute to bring international best practices to the country, introduce innovations, and enhance the capacity of staff working for the Government of the Republic Kazakhstan and related agencies.

2. The KSTA will also support the implementation of ADB's 2017-2021 Country Partnership Strategy (CPS) for Kazakhstan, which emphasizes the importance of contributing to enhancing the country's knowledge basis in support of socio-economic development. The CPS recommends ADB to expand collaboration on knowledge sharing and capacity development under the KEEP, implying the provision of policy advice and capacity building to allow the government designing and implementing better-informed policies and reforms in priority areas.

3. This proposed PATA will finance the third phase of the KEEP. An estimated budget of the PATA is $1,500,000. ADB will finance $1,000,000, and the government will finance up to $500,000. The PATA will follow the same reimbursable approach adopted for the KEEP, Phases 1 and 2. It implies that initially ADB will allocate the total amount of $1,500,000 from the Technical Assistance Special Fund (TASF) Other Sources, where the Government of Kazakhstan has already transferred its $500,000 contribution to the TA.

'A move competitive and inclusive economy achieved, human capital developed, and institutions and governance enhanced.

Quality of policy researches improved

As of today, nine analytical studies, four capacity building activities and one media material are supported under KEEP Phase 3:

(i) Study on creation of a methodology for the implementation of accrual budgeting;

(ii) Study on issues of diagnostics, modification, optimization and improvement of the Accounts Committee's business processes in compliance with a model of the first-class world audit companies;

(iii) Study on topical issues of assessing the efficiency of state property management to ensure efficient development and economic security of the Republic of Kazakhstan;

(iv) Study on livestock value chain assessment in Akmola region;

(v) Study on formulation of the State Program of Industrial-Innovative Development of the Republic of Kazakhstan for 20202025;

(vi) Study on development of scientifically grounded norms of workload and standards for the number of civil servants of the Agency of the Republic of Kazakhstan for Civil Service Affairs and Anti-Corruption and local authorities of the Republic of Kazakhstan. Phase II: Conducting research in Astana;

(vii) Study on preparing the National Anti-Corruption Report;

(viii) Study on preparing the First Voluntary National Review on SDGs in Kazakhstan;

(ix) Study on development of a Master Plan for the International Green Technologies & Investments Center;

(x) Capacity building of the employees of the Accounts Committee and other public audit and financial control agencies under the CIPFA Program (Phase 1);

(xi) Capacity building of the employees of the Accounts Committee and other public audit and financial control agencies under Financial Analysis II: Valuation of the Effectiveness of Company's Activity; Evaluation of Investment Project II: Sources of Financing and Other Complex Questions, Financial Modeling I: Model Development Technique and MS Excel Capabilities;

(xii) Capacity building of the employees of the Accounts Committee and other public audit and financial control agencies under the CIPFA program (Phase 2);

(xiii) Capacity building of the local state civil servants in Local Self-Governance for Budgeting System Development of Kazakhstan;

(xiv) Media materials on the achievement of Sustainable Development Goals (SDGs) through promotion of ecological tourism and conservation of biodiversity in the East Kazakhstan region (Belukha).

1. Policy research reports completed

2. Capacity-building program capacity-building activities and learning events delivered

(i) In October 2018, reports with recommendations to the draft Rules on preparing the forecast consolidated financial statements and report with recommendations on additions to the Rules on developing draft republican budget were submitted. Subsequently, the draft Order 'On Approval of the Rules on preparing the forecast consolidated financial statements by administrators of the budgetary programs_, as well as the draft Government Decree 'On Amendments to the Government Decree 'On Approval of the Rules on developing draft Republican Budget_ were published in March 2019 on the 'Open Regulatory Legal Acts_ portal. At present, together with the Working Group from the Ministry of National Economy, the consultant actively participates in the ongoing development of the draft Rules on preparing the forecasts of consolidated financial statements on the republican budget.

(ii) Experts have carried out a diagnostic study to modify, optimize and improve the business processes of the Accounts Committee in accordance with the model of world-class international audit companies, as well as provided corresponding training to the employees of the Accounts Committee. At the moment, experts are preparing descriptions of the existing processes and in-depth assessment of the business processes effectiveness at the Accounts Committee.

(iii) In April 2019, the consultants submitted a final report of the study on 'Topical issues of assessing the efficiency of state property management to ensure efficient development and economic security of the Republic of Kazakhstan_ to the Accounts Committee. In May 2019, the report was approved by the Accounts Committee management.

(iv) Michigan State University in partnership with the United States Department of Agriculture carries out assessment of the livestock resources in Akmola region. The first mission is tookaking place in July-August 2019.

(v) Experts are developing methodology to assess the State Program of Industrial-Innovative Development (SPIID) for 20152019 in order to measure effectiveness of the SPIID activities, draw recommendation and assist in developing monitoring and evaluation framework for a subsequent SPIID for 20202025.

(vi) Statistics data processing of time-keeping studies on determining the complexity of the labor process in North Kazakhstan region, Karaganda region, and Almaty city has been carried out. The study also calculated the norms of workload and civil servants number standards of local executive bodies, highlighting the labor specifics and factors that influence the number of civil servants; existence of subordinate organizations; public procurement volumes; scale and directions of implemented state programs; administrative division; and industry factors. In addition, draft collection of labor standards was prepared. Also, developed labor standards in various sectors across all 14 regions in Kazakhstan have been approbated.

(vii) A workplan for preparation of the National Report concept has been developed and requests to central and local executive state bodies on the implementation of anti-corruption action plans were sent. International experience in the fight against corruption (OECD recommendations) in the framework of the fourth round of negotiations on the Istanbul Anti-Corruption Action Plan has been summarized. At the moment, information on the work completed by the Anti-Corruption Special Monitoring Group on public participation in anti-corruption activities is being collected, analyzed and anti-corruption tools are developed.

(viii) Administrative Arrangement between ADB and UNDP was signed in June 2019. ADB and UNDP assisted the government in preparing the First Voluntary National Report (VNR), which was presented at UN headquarters on 16 July 2019. At the moment, nationalization of the SDGs in state strategic documents is ongoing.

(ix) Terms of References for consultants were developed and approved by the Ministry of Energy of Kazakhstan. Consultant

The KEEP, including. this phase, was conceptualized during consultations with the government on ADB's Country Partnership Strategy for Kazakhstan. The KEEP framework (outlining the objective and scope, areas of focus, implementation arrangements, and monitoring and evaluation measures) is defined in a memorandum of understanding, which was jointly developed and then signed by the government and ADB.

The government's willingness to cost-share the KEEP demonstrates its strong ownership as well as requires from ADB delivery of high quality knowledge products and services in a timely manner.

The Ministry of National Economy, through the Department for Budget Investments and PPP Development, is the executing agency, which is responsible for supervising and monitoring KSTA activities. Implementing agencies are ministries or government agencies responsible for initiating specific subprojects.

The KEEP Coordinating Committee (KCC), comprising of representatives of the Ministry of National Economy and ADB, is set up to oversee TA implementation and provide guidance and direction to stakeholders. The KCC has periodic meetings to update and adjust the list of subprojects and core outputs.

The KCC Secretariat supports the KCC's work by ensuring smooth functioning of the Committee and supervising and coordinating day-to-day TA activities, including monitoring TA implementation, resolving issues, arranging meetings, and liaising with concerned government agencies.

In 2019, ADB increased the overall KSTA budget to $2,000,000 upon receipt of a subsequent $500,000 contribution from the Government of Kazakhstan in 2018. ADB introduced a minor change in implementation arrangements to engage UN agencies or other international organizations in carrying out activities.