Kazakhstan: Development and Implementation of Subsoil Use Standards

Overview
Project Summary Document

TCRS 1113

Status SP Com approved, TC Com approved

Location

Kazakhstan

Business Sector

Natural Resources

Notice Type

Public

PSD Disclosed

03 May 2016

Project Description

The national mining and hydrocarbons reserves and resources evaluation and reporting standards in Kazakhstan (“GKZ”), inherited from the Soviet times, are not accepted internationally. The State Geology Committee of Kazakhstan has started working towards introduction of internationally compliant reserves and resources evaluation and reporting standards. The CRIRSCO-Kazakhstan Code has been developed in accordance with the Kazakh state system of subsoil use management, classification and accounting of solid minerals.

In December 2014, a package of amendments was introduced to the state Law on Subsoil and Subsoil Use to attract more foreign investments into geological exploration. These amendments are aimed at removing many of the existing administrative barriers and easing the access to geological information. Kazakhstan is also considering tax incentives for foreign investors. There is ongoing work to develop a combined Subsoil Use Code covering both mining and petroleum industries, which will eventually substitute the existing Law on Subsoil and Subsoil Use.

The Kazakh Ministry of Investments and Development initiated creation of a working group (the “Working Group”) to drive the regulatory changes. The Working Group, uniting the major industry players, associations, regulators and other interested parties, has an ambitious agenda and commitment towards adoption of the new Subsoil Use Code by the end of 2016. The Bank, whose representative has been nominated to the Working Group, was asked to assist in development and implementation of the reserves and resources reporting standards as one of the key Working Group’s priorities.

By adopting the internationally recognised standards, the proposed TC will allow Kazakh projects to be more attractive for international investors, thus promoting market efficiency, attracting junior and mid-tier companies to efficient exploration of Kazakhstani resources, facilitating development of capital markets in Kazakhstan, including IPOs and bond placements which require such standards and improving the business environment. Embedding the international standards into the state regulation will create a level playing field for subsoil users and potential investors in terms of getting access to and assessment of geological data.

The proposed TC assignment is consistent with the Mining Operations Policy stating that: “EBRD has the opportunity to support its COOs in developing, adopting and implementing specific policies, regulations and institutions that can improve regulation, strengthen institutional frameworks and foster transparency, in line with best international standards”. The TC is in-line with the Strategy for Kazakhstan that encourages “policy dialogue, with support from the Joint Technical Cooperation Fund, <…> aimed at enabling investment in selected sectors. It will be focused on developing an enabling environment for the private sector, and reforming public sector enterprises, including institution building and strengthening of market mechanisms.”

Enquiries

Business opportunities

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Tel: +44 20 7338 7168
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TCRS 1113

Status SP Com approved, TC Com approved

Location

Kazakhstan

Business Sector

Natural Resources

Notice Type

Public

PSD Disclosed

03 May 2016

Project Description

Project Objectives

The amended regulation on standards for reporting of exploration results, resource and reserve applied in petroleum and mining industries in Kazakhstan is developed and submitted to the Parliament for adoption. The existing regulation on subsoil use related to standards for reporting of exploration results, resource and reserve applied in petroleum and mining industries in Kazakhstan is analysed against the international best practice.

TC Recipient Information

Kazakh Ministry of Investments and Development

Project Cost

€ 868,200.00

Funding Summary

The project is expected to be funded from the Kazakhstan – EBRD TC Account.

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

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Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Kazakhstan: Development and Implementation of Subsoil Use Standards

Project Description

Enquiries

Business opportunities

General enquiries

Project Description

Project Objectives

TC Recipient Information

Project Cost

Funding Summary

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)