Kazakhstan : Fiscal Governance and Financial Sector Reforms Program (Subprogram 1)

Sovereign Project | 55039-001

1.The proposed effort to design and process a Kazakhstan Fiscal Governance and Financial Sector Reforms Program (the Program) aims to help the Government of Kazakhstan (government) address one of its core development challenges: heightened macroeconomic and financial vulnerability to external shocks. This medium-term development objective requires specific reform and institutional developments in fiscal management and in financial sector development. Under preparation since mid-2021 with an initially wider list of reform pillars (five) and proposals and the agreement to subsequently prioritize the subset of reform items with more agreement and progress, this approach was disrupted by the January 2022 political crisis in Kazakhstan and the political transition that ensued. The geopolitical and new economic realities set in motion by the Russian invasion of Ukraine in February 2022 also added further disruptions in the country's economic policy agenda during early-2022.

Project Details

  • Project Officer
    Farinha Fernandes, Joao Pedro
    Sectors Group
    Request for information
  • Country/Economy
    Kazakhstan
  • Sector
    • Public sector management
Project Name
Fiscal Governance and Financial Sector Reforms Program (Subprogram 1)
Project Number
55039-001
Country / Economy
  • Kazakhstan
Project Status
Active
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
Loan 4405-KAZ: Fiscal Governance and Financial Sector Reforms Program (Subprogram 1)
Source Amount
Ordinary capital resources US$ 350.00 million
Loan 8462-KAZ: Fiscal Governance and Financial Sector Reforms Program (Subprogram 1)
Source Amount
Asian Infrastructure Investment Bank US$ 350.00 million
TA 10210-KAZ: Supporting Fiscal Governance and Financial Sector Reforms Program
Source Amount
Financial Sector Development Partnership Special Fund US$ 300,000.00
Technical Assistance Special Fund US$ 350,000.00
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector

  • Finance / Money and capital markets

  • Public sector management / Public expenditure and fiscal management

Gender
Effective gender mainstreaming
Description

1.The proposed effort to design and process a Kazakhstan Fiscal Governance and Financial Sector Reforms Program (the Program) aims to help the Government of Kazakhstan (government) address one of its core development challenges: heightened macroeconomic and financial vulnerability to external shocks. This medium-term development objective requires specific reform and institutional developments in fiscal management and in financial sector development. Under preparation since mid-2021 with an initially wider list of reform pillars (five) and proposals and the agreement to subsequently prioritize the subset of reform items with more agreement and progress, this approach was disrupted by the January 2022 political crisis in Kazakhstan and the political transition that ensued. The geopolitical and new economic realities set in motion by the Russian invasion of Ukraine in February 2022 also added further disruptions in the country's economic policy agenda during early-2022. At the request of Government, active discussions on the program resumed in May 2022, and momentum was regained with the new approval by the President of reform strategic directions along the then-already agreed two reform pillars of the program (and to which past preparatory dialogue had contributed).

2.The scope of the proposed two-subprogram programmatic assistance is fully consistent with the government's strategic priorities, with the forthcoming Asian Development Bank (ADB) country partnership strategy for Kazakhstan, and with the ADB Strategy 2030, namely three of its operational priorities. The proposed programmatic approach provides inherent and much-needed flexibility in medium-term reform directions while recognizing current achievements and formalizing medium-term reform commitments that are a primer for Kazakhstan.

Project Rationale and Linkage to Country/Regional Strategy
3.In 2020, during the processing of the $1.0 billion emergency financing assistance funded through the coronavirus disease (COVID-19) pandemic response option (CPRO), and partly in recognition of the chronic nature of Kazakhstan's vulnerability to external shocks, the need for a policy-based engagement between Kazakhstan and ADB for structural reforms was discussed and agreed upon, in order to contribute to strengthening economic recovery prospects and to addressing the roots of Kazakhstan's macroeconomic and fiscal vulnerabilities to external shocks. Consultations with the government on reform priorities and proposals commenced in 2021, benefiting from ongoing ADB technical assistance (TA) projects to ongoing reforms, inputs from different development partners, ADB's past analytical work, and the analysis and direct inputs from the ADB mission. Despite the 2022 disruptions to this policy dialogue, efforts have resumed, and significant progress made from 2023 onwards.
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
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
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Farinha Fernandes, Joao Pedro
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Finance

Timetable

Concept Clearance
22 Aug 2023
Fact Finding
24 Jul 2023 to 28 Jul 2023
MRM
12 Oct 2023
Approval
04 Dec 2023
Last Review Mission
-
Last PDS Update
04 Dec 2023

Funding

Loan 4405-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2023 23 Aug 2024 21 Nov 2024 31 Dec 2024 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 350.00
ADB 350.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 30 Sep 2024 0.00 0.00 0%
Cumulative Disbursements 30 Sep 2024 0.00 0.00 0%

Loan 8462-KAZ

Financing Plan
  Total (Amount in US$ million)
Project Cost 350.00
ADB 0.00
Counterpart 0.00
Cofinancing 350.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %

TA 10210-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2023 27 Dec 2023 27 Dec 2023 31 Dec 2025 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
650,000.00 0.00 0.00 0.00 0.00 0.00 650,000.00
Cumulative Disbursements
Date Amount
30 Sep 2024 100.00

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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.