Kazakhstan: Business Plan Preparation for the Agriculture Commodity Exchange

Sovereign (Public) Project | 54444-001

The proposed TA will undertake a feasibility study to further define the establishment of an international commodity exchange within the AIFC's legal jurisdiction. It will focus on research for exchange business product opportunities, support infrastructure requirements, and regulatory aspects. The TA will support the government and ADB on the nature of an ensuing potential investment.

Project Details

  • Project Officer
    Woldring, Hans Siewert
    Central and West Asia Department
    Request for information
  • Country
    Kazakhstan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Business Plan Preparation for the Agriculture Commodity Exchange
Project Number 54444-001
Country Kazakhstan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6706-KAZ: Business Plan Preparation for the Agriculture Commodity Exchange
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming No gender elements
Description The proposed TA will undertake a feasibility study to further define the establishment of an international commodity exchange within the AIFC's legal jurisdiction. It will focus on research for exchange business product opportunities, support infrastructure requirements, and regulatory aspects. The TA will support the government and ADB on the nature of an ensuing potential investment.
Project Rationale and Linkage to Country/Regional Strategy

Kazakhstan is a net importer of agriculture commodities despite being one of the world's largest wheat exporters. Over 60% of agriculture exports are in primary commodities for processing and more than 60% of agriculture imports are in processed commodities. The grain sector remains challenged by production inefficiencies, low yields, limited access to financial resources, and outdated infrastructure. A non-competitive market structure, such as asymmetries in grain price, results in further distortions.

A commodity exchange provides an opportunity to develop efficient marketing and trading systems by providing efficient end-to-end service for commodity warehousing, quality control, trading, clearing, and market data dissemination.

Impact Competitiveness of agro-industrial products increased.
Project Outcome
Description of Outcome Business plan for development of the Commodity Exchange under AIFC developed.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Legislative and regulatory recommendations developed

Business plan preparation assessments developed

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 Woldring, Hans Siewert
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Astana International Finance Centre
Mangilik E1, Bldg 55/18 C3.3
Nur-Sultan City Republic of Kazakhstan
Timetable
Concept Clearance -
Fact Finding 12 Nov 2020 to 12 Nov 2020
MRM -
Approval 28 Dec 2020
Last Review Mission -
Last PDS Update 28 Dec 2020

TA 6706-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Dec 2020 - 28 Dec 2020 30 Sep 2021 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 28 Dec 2020 53,976.96

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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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Legal specialist with commodity trade specialization Individual - Consulting Closed 09 Jan 2021 29 Jan 2021
Consulting Firm for Strategy, and Enabling Environment Assessments Firm - Consulting Closed 09 Jan 2021 23 Jan 2021

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 6706 20 Apr 2021 Contango Markets Limited (UNITED KINGDOM) The Officer's Mess, Coldstream Road Caterham, Surrey CR3 5QX United Kingdom Astana International Finance Centre 119000

Procurement Plan

None currently available.