Kazakhstan : KMF Expanding Access to Credit for Micro, Small, and Medium-Sized Enterprise Borrowers Project

Nonsovereign Project | 53329-001

Project Name KMF Expanding Access to Credit for Micro, Small, and Medium-Sized Enterprise Borrowers Project
Project Number 53329-001
Borrower / Company Microfinance organization "KMF" Limited Liability Company
Country / Economy Kazakhstan
Location Nation-wide
Type or Modality of Assistance
4183 Loan Ordinary capital resources USD 15.00 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
Sector / Subsector

Finance / Small and medium enterprise finance and leasing

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Bahl, Mohit
Project Sponsor(s)
Objectives and Scope KMF will use the proceeds of ADB's facility to provide financing to MSMEs, including WMSMEs.
Status of Development Objectives In progress
Status of Operation/Construction Operation loan fully disbursed and repaying.
Linkage to Country/Regional Strategy The project will contribute to the following operational priorities of Strategy 2030 (i): addressing remaining poverty and reducing inequalities and (ii): accelerating progress in gender equality and women's empowerment.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as FI-C for impacts on the environment.

KMF will (i) apply ADB's prohibited investment activities list and enhance its existing ESMS satisfactory to ADB prior to the first disbursement. The enhanced ESMS will include (i) an environmental and social policy statement; and (ii) a stakeholder engagement procedure and grievance redress mechanism, which will contain requirements, as applicable, for information disclosure and consultation with affected people in accordance with ADB requirements. KMF will be required to (i) identify training needs and develop a training plan for assigned staff in ESMS implementation, and (ii) appoint a member of the management team who will be responsible for the overall environmental and social strategy and supervision of the ESMS covering all branches. The ESMS will set out requirements, as applicable, for compliance with national labor laws and measures to comply with the internationally recognized core labor standards, pursuant to ADB's Social Protection Strategy.

Involuntary Resettlement

ADB funds will be excluded from financing sub-loans that have been classified category A for any safeguard classification, category B for involuntary resettlement and indigenous people, and any sub-loans that are assessed as being noncompliant with the ESMS. KMF will include in its regular

reporting information to ADB (i) the nature of subprojects and categorization, (ii) compliance with the safeguard and social requirements, and (iii) compliance with applicable national and international laws and standards.

Indigenous Peoples The project is categorized as FI treated as C for Indigenous Peoples (IP) based on the potential impacts associated with the target sector. Sub loans involving business activities included in the prohibited list and classified as Category A or B in IP will be excluded from project support using ADB funding. KMF will be required to report annually on the use of ADB funds, including compliance with national laws and regulations on environmental and social safeguards.
Stakeholder Communication, Participation, and Consultation Monitoring of the project will be carried out by ADB. KMF will provide ADB with financial reports at predetermined regular intervals and as requested, including (i) unaudited financial statements on a quarterly basis; (ii) audited financial statements on an annual basis; (iii) compliance certificates for financial covenants; (iv) annual reporting on selected development indicators agreed between ADB and KMF; and (v) annual environmental and social performance report.
Timetable for assistance design, processing and implementation
Concept Clearance 05 Nov 2019
Credit Committee Meeting -
Approval 06 May 2022
Last PDS Update 18 Jul 2023

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.

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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.

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

None currently available.

Related Publications

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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.

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