Kazakhstan: Joint Government of Kazakhstan and the Asian Development Bank Knowledge and Experience Exchange Program, Phase 4

Sovereign Project | 54093-001

1. The knowledge and support technical assistance (TA) will provide just-in-time, demand driven, and cutting-edge knowledge products and assist capacity development in Kazakhstan. The fourth phase of the Knowledge and Experience Exchange Program (KEEP), a joint effort of the Government of Kazakhstan and the Asian Development Bank (ADB), remains an important source of international best practices, innovative solutions, and capacity development of staff working for Kazakhstan's government agencies. As experienced in the previous three phases, the joint financing and management of TA activities will produce synergies and complementarities between ADB operations and Kazakhstan's development needs.

Project Details

  • Project Officer
    Genadiy Rau
    Central and West Asia Department
    Request for information
  • Country
    Kazakhstan
  • Sector
    • Public sector management
Project Name Joint Government of Kazakhstan and the Asian Development Bank Knowledge and Experience Exchange Program, Phase 4
Project Number 54093-001
Country Kazakhstan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6623-KAZ: Joint Government of Kazakhstan and the Asian Development Bank Knowledge and Experience Exchange Program, Phase 4
Technical Assistance Special Fund US$ 1.75 million
TA 6623-KAZ: Joint Government of Kazakhstan and the Asian Development Bank Knowledge and Experience Exchange Program, Phase 4
Technical Assistance Special Fund US$ 246,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Economic affairs management - Public administration

Gender Equity and Mainstreaming No gender elements
Description

1. The knowledge and support technical assistance (TA) will provide just-in-time, demand driven, and cutting-edge knowledge products and assist capacity development in Kazakhstan. The fourth phase of the Knowledge and Experience Exchange Program (KEEP), a joint effort of the Government of Kazakhstan and the Asian Development Bank (ADB), remains an important source of international best practices, innovative solutions, and capacity development of staff working for Kazakhstan's government agencies. As experienced in the previous three phases, the joint financing and management of TA activities will produce synergies and complementarities between ADB operations and Kazakhstan's development needs.

2. The TA is aligned with one of the operational priorities strengthening governance and institutional capacity of ADB's Strategy 2030.1 It helps reinforce ADB's role as a knowledge institution that facilitates the sharing of international experiences, best practices, and innovations in line with its approach to engaging with upper middle-income countries. 2 It is also consistent with ADB's country partnership strategy, 2017-2021 for Kazakhstan, which emphasizes the importance of enhancing the country's knowledge basis in support of its socioeconomic development. The TA is included in the country operations business plan, 2021-2023.

Project Rationale and Linkage to Country/Regional Strategy

Kazakhstan has enjoyed rapid economic growth in the 21st century, fueled by windfall earnings from the extractive industry, which by 2019 had tripled oil production since independence in 1991. Real wages quadrupled from the mid-1990s levels, while the share of people with below subsistence incomes plummeted from 46.7% in 2001 to 4.3% in 2019. However, this rapid economic growth came at the cost of unequal income distribution across sectors, social groups, and regions of Kazakhstan. For instance, by 2005, the Gini index, a convenient summary measure of the degree of economic inequality in the distribution of income, had reached 39.8 (where 0 indicates perfect income equality, 100 implies perfect inequality), before subsiding to 28.8 in 2018.

The unequal distribution of economic benefits generated by the oil and gas industry became evident in the labor market and created development challenges. The Statistics Committee of Kazakhstan reports that the remuneration offered in mining was on average more than double the average monthly pay, while the salaries of civil servants were below the average. This made it difficult to attract and retain talents in the civil service, while promoting corruption and rent-seeking activities. Meanwhile, the economy was experiencing signs of the so-called "Dutch disease", as exogenous shocks generated by the 2007-2008 global financial crisis, lower commodity prices in 2014-2015, and the current coronavirus disease (COVID-19) pandemic revealed structural vulnerabilities in Kazakhstan's economic model as being too dependent on export revenues generated from hydrocarbons.

Recognizing the country's knowledge needs, ADB and the Government of Kazakhstan in 2013 established KEEP through a memorandum of understanding (MOU) that defined the program's overall framework and outlined its objective and scope, areas of focus, implementation arrangements, and monitoring and evaluation measures. 5 The MOU commits the parties to sharing the costs of program implementation activities equally.

The initial plan suggested the articulation of KEEP over three phases. However, taking into account Kazakhstan's growing demand for knowledge products, by 2015 the total amount of commitments and disbursements had already exceeded the indicative amounts of the 2013 MOU. To reflect the changed reality, the MOU was updated three times in 2015, 2017, and 2019 - by introducing supplementary agreements aimed at ensuring greater flexibility and responsiveness to the government needs for cutting-edge knowledge, best practices, and capacity enhancement. The revised MOU reflects the additional financial commitments made by the parties.

KEEP's flexible approach, envisaged in the original MOU and its supplementary agreements, allows to effectively fulfill Kazakhstan's demand-driven knowledge needs as articulated by government agencies in their applications; the tentative pipeline of KEEP projects is described in a linked document.6 The applications can be grouped into four broad categories:

(i) analytical support of the government's economic diversification agenda,

(ii) sustainable green growth,

(iii) reform of the civil service system, and

(iv) socioeconomic research into priority topics.

The economy of Kazakhstan is overly reliant on commodities extraction and export. In 2019, minerals accounted for 72.8% of exports, followed by metals with 13.5%. In the same period, 39.4% of the state budget revenues came from duty receipts for oil exports and sovereign oil fund transfers. In the previous phases, the KEEP team supported the government's economic diversification agenda with research into Kazakhstan's agriculture, including an assessment of the livestock potential in Aqmola Region, and with the development of light industry and craftsmanship in close collaboration with Atameken, the National Chamber of Entrepreneurs. For Phase 4, the government agencies propose various projects aimed at promoting tourism, building human capital, and improving the investment climate.

The government recognizes the promotion of sustainable green growth as crucial to improving the quality of life. In 2015, the government committed to reducing greenhouse gas emissions by 15% by 2030 under the Paris Agreement. In 2019, greenhouse gas emissions already exceeded the 1990 level (the benchmark year for the Paris Agreement target), while projected economic growth is expected to further stimulate such emissions. So the government is drafting a new Environmental Code and Low-carbon Development Strategy to better respond to the need for sustainable green growth until 2050. In Phase 4, ADB will work closely with the government on providing methodological, strategic, and capacity building support to enable environmentally friendly economic development.

Reforming civil service is a cornerstone of the government's development agenda and is prominently featured in development strategies and plans. Transparency International's 2019 Corruption Perception Index puts Kazakhstan in 113th place out of 180 countries, which is marginally better than its 140th position in 2013. In September 2020, in his second annual address to the people of Kazakhstan, President Tokayev announced major reforms to the state apparatus, including a 25% optimization of civil servants and raising salaries to the rest. The KEEP team has been strengthening the civil service system by optimizing the business processes, conducting time studies, and setting performance indicators; this collaboration will continue in Phase 4.

Increasingly, the government is prioritizing social policy measures, especially as the impacts of the COVID-19 pandemic on the economy are being felt. Many of KEEP's past and planned projects therefore serve to study and develop recommendations on socioeconomic policy measures. For instance, ADB, in close cooperation with the United Nations Development Programme, supports the government in becoming the regional champion to achieve the all encompassing sustainable development goals (SDGs). In particular, KEEP assisted the government in preparing the Voluntary National Report on SDGs, which was presented at the United Nation's High-level Political Forum in July 2019.

Overall, the government consistently assessed the KEEP results very positively, praising the progress made since 2014 and expressing its commitment to continue the cooperation with ADB on this program. Particularly, the government commended KEEP's contribution to strengthening institutional capacity and providing policy advice.

Impact Accountability, efficiency, and functionality of the state apparatus increased
Project Outcome
Description of Outcome State development initiatives relying on enhanced capacity and evidence based practices effectively implemented.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Reports and policy recommendations delivered

Capacity building programs provided

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Genadiy Rau
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Kazakhstan Resident Mission
Executing Agencies
Ministry of National Economy
Orynbor str., 8, House of Ministries, entr.7,010000 Astana, Kazakhstan
Timetable
Concept Clearance 22 Jul 2020
Fact Finding 14 Feb 2020 to 14 Feb 2020
MRM -
Approval 25 Nov 2020
Last Review Mission -
Last PDS Update 02 Dec 2020

TA 6623-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2020 26 Nov 2020 26 Nov 2020 31 Dec 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 18 Nov 2021 374,704.29

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.


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

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

Tender Title Type Status Posting Date Deadline
KEEP, Phase 4 | Analytical study on developing a unified digital platform for investment projects | International Technical Consultant | Individual - Consulting Active 30 Nov 2021 06 Dec 2021
KEEP, Phase 4 | Monitoring of implementation of COVID-19 Active Response and Expenditure Support Program Firm - Consulting Active 26 Nov 2021 10 Dec 2021
KEEP, Phase 4 | Organization of seminars for AFM employees and representatives of financial monitoring entities Individual - Consulting Closed 13 Nov 2021 20 Nov 2021
KEEP, Phase 4 | Analytical study on developing a unified digital platform for investment projects | National Consultant Individual - Consulting Closed 10 Nov 2021 16 Nov 2021
KEEP, Phase 4 | Analytical study on developing a unified digital platform for investment projects | National Technical Consultant Individual - Consulting Closed 10 Nov 2021 21 Nov 2021
KEEP, Phase 4 | Analytical study on developing a unified digital platform for investment projects | International Consultant Individual - Consulting Closed 10 Nov 2021 21 Nov 2021
KEEP, Phase 4 |National consultant on CFS Individual - Consulting Closed 04 Sep 2021 12 Sep 2021
KEEP, Phase 4 | National consultant on e-audit Individual - Consulting Closed 04 Sep 2021 12 Sep 2021
KEEP, Phase 4 | International consultant on e-audit Individual - Consulting Closed 11 Aug 2021 17 Aug 2021
KEEP, Phase 4 | International consultant on CFS audit Individual - Consulting Closed 11 Aug 2021 17 Aug 2021
KEEP, Phase 4 | Research Assistant for Regional Convergence Study in Kazakhstan Individual - Consulting Closed 21 Jul 2021 27 Jul 2021
KEEP, Phase 4 | Study on the development of energy accumulation/storage systems Individual - Consulting Closed 15 Jul 2021 21 Jul 2021
KEEP, Phase 4 | Monitoring of implementation of COVID-19 Active Response and Expenditure Support Program Firm - Consulting Closed 06 Jul 2021 30 Jul 2021
KEEP, Phase 4 | Study on the development of energy accumulation/storage systems | International legal expert Individual - Consulting Closed 06 Jul 2021 12 Jul 2021
KEEP, Phase 4 | Electrical engineering | Team Leader Individual - Consulting Closed 06 Jul 2021 12 Jul 2021
KEEP, Phase 4 | International Macroeconomic Convergence Consultant Individual - Consulting Closed 15 May 2021 09 Jun 2021
KEEP, Phase 4 | Improving the measurement of food prices and inflation based on data on consumer spending Individual - Consulting Closed 08 May 2021 17 May 2021
KEEP, Phase 4 | International consultant | Study on further stimulation of venture financing, including improving legislation Individual - Consulting Closed 08 May 2021 12 May 2021
KEEP, Phase 4 | Team Leader | Study on further stimulation of venture financing, including improving legislation Individual - Consulting Closed 21 Apr 2021 25 Apr 2021
KEEP, Phase 4 | Development of a draft methodology and prototype platform for automated assessment of schools quality Individual - Consulting Closed 13 Apr 2021 17 Apr 2021
KEEP, Phase 4 | National consultant | Study on further stimulation of venture financing, including improving legislation Individual - Consulting Closed 06 Apr 2021 12 Apr 2021
KEEP, Phase 4 | Library of projects focusing on gender and family issues | National Consultant Individual - Consulting Closed 26 Mar 2021 01 Apr 2021
KEEP, Phase 4 | Introducing accrual budgeting method in the planning of local budgets Individual - Consulting Closed 26 Mar 2021 01 Apr 2021
KEEP, Phase 4 | Library of projects focusing on gender and family issues | National Support Consultant Individual - Consulting Closed 18 Mar 2021 31 Mar 2021
KEEP, Phase 4 | Diagnostic study on development of a unified digital platform for investment projects, including public-private partnership (PPP) projects | IT local consultant Individual - Consulting Closed 09 Mar 2021 15 Mar 2021
KEEP, Phase 4 | Diagnostic study on development of a unified digital platform for investment projects, including public-private partnership (PPP) projects | International Consultant Individual - Consulting Closed 09 Mar 2021 15 Mar 2021
KEEP, Phase 4 | Diagnostic study on development of a unified digital platform for investment projects, including public-private partnership (PPP) projects | National Consultant Individual - Consulting Closed 09 Mar 2021 15 Mar 2021
KEEP, Phase 4 | Introduction of digital mortgage in the Republic of Kazakhstan Individual - Consulting Closed 16 Dec 2020 12 Jan 2021
KEEP, Phase 4 | Knowledge Work Coordinator Individual - Consulting Closed 10 Dec 2020 16 Dec 2020
KEEP, Phase 4 | Knowledge Work Assistant Individual - Consulting Closed 10 Dec 2020 16 Dec 2020

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.