World Bank Ready to Allocate Up to $1 Billion Annually for Projects in Kazakhstan
The World Bank plans to allocate up to $1 billion per year to Kazakhstan over the next six years to finance projects under a new Country Partnership Framework for 2026-2031. The announcement followed negotiations in Astana between the Kazakh government and representatives of the World Bank Group. The parameters of the forthcoming strategy were discussed at a meeting between Deputy Prime Minister and Minister of National Economy Serik Zhumangarin and representatives of the international financial institution. According to Zhumangarin, the new framework is expected to support structural reforms through financing, technical expertise, and joint initiatives. According to the meeting participants, the potential funding, up to $1 billion annually, will focus on private sector development, infrastructure, and improving economic competitiveness. The draft strategy prioritizes transport and digital connectivity, climate policy, improved water and energy services, financial market development, stimulation of private investment, and expanding the share of renewable energy. The Kazakh side stated that these priorities align with the country’s national strategic and socio-economic objectives. Analytical support for reforms will continue under the government’s joint economic research program with the World Bank. Under the previous partnership strategy for 2020-2025, 14 projects totaling $4.2 billion were implemented. Among the largest were the development of the Western Europe-Western China international transit corridor, the reconstruction of the Almaty-Khorgos highway, and the modernization of irrigation and drainage systems. Andrei Mikhnev, the World Bank’s permanent representative in Kazakhstan and Turkmenistan, said that the Western Europe-Western China corridor has improved transport accessibility for more than 5 million people. Travel time has been reduced by approximately two-thirds, average speeds have tripled, and transportation costs have declined by 35%. The project created more than 1,200 permanent jobs, and most residents in the surrounding regions reported improvements in their quality of life. Support for small and medium-sized enterprises under the previous program included grants and advisory assistance to more than 1,000 businesses. With support from the program, 175 start-ups were launched, generating approximately $41 million in sales and attracting $16 million in investment. Irrigation modernization projects improved water-use efficiency across 92,000 hectares and enhanced conditions for 94,000 water users, including around 60,000 farmers. The International Finance Corporation (IFC), part of the World Bank Group, has announced plans to continue providing advisory support for public-private partnership projects and investment initiatives in Kazakhstan. Priority areas include modernization of railway infrastructure, financing for micro and small businesses through partner banks, and projects in the agro-industrial sector, ranging from the acquisition of modern agricultural equipment to deep grain processing. The parties agreed to finalize the draft strategy, incorporating the proposals discussed, and submit it to the World Bank’s Board of Directors for consideration. The Times of Central Asia, previously reported that the IFC, together with the Asian Infrastructure Investment Bank, is participating in financing the construction of the Almaty railway bypass line.
