EBRD and Kazakhstan sign memorandum of understanding to foster economic diversification
The EBRD is supporting the Kazakhstan government’s economic diversification programme. The EBRD aims to invest up to around $1 billion in projects to be identified in collaboration with the Kazakh Ministry of Industry and Trade and the Kazakh National Wealth Fund “Samruk-Kazyna”. A Memorandum of Understanding to this effect was signed today in Astana between the three parties.
According to the Memorandum, the EBRD, the Kazakh Ministry of Industry and Trade and the Kazakh National Wealth Fund “Samruk-Kazyna” will seek to increase their cooperation with a view to identify, prepare and implement various industrial and infrastructure projects in Kazakhstan, which are based on sound market principles, commercial viability, higher standards of corporate governance and transparency, as well as utilisation of modern and environmentally friendly technology.
Under the Memorandum, which reflects the Kazakh government’s diversification strategy, as well as the Bank’s new strategy for Kazakhstan, the Kazakh Ministry of Industry and Trade, the Kazakh National Wealth Fund “Samruk-Kazyna and the EBRD have noted that the EBRD will continue to play an important role in economic diversification and innovation in Kazakhstan, and the further integration of the country into the global economy, with a view to provide the private sector with additional opportunities for growth and development.
The Bank will consider providing equity and debt financing for eligible projects and will seek to mobilise necessary technical assistance for their implementation.
In addition, the EBRD will cooperate with other international financial institutions and commercial lenders with a view to attracting further investment to the Kazakh economy. This will help Kazakhstan reduce its dependence on primary industries and commodity exports, helping the country to establish a more diverse and sustainable economic model.
The Memorandum underpins the EBRD’s key role as the single largest investor in Kazakhstan outside the oil and gas sector. Since the beginning of its operations, the Bank has committed over €2.4 billion in various sectors of the country’s economy, which mobilised additional investment worth more than €5 billion.
The EBRD’s 2011 Annual General Meeting will be held in Astana, the Kazakh capital.