Bank signs Memorandum of Understanding with development fund Kazyna

Building on a strong and successful cooperation the EBRD and Kazakhstan are intensifying their activities. During his first visit to the country, EBRD First Vice President Varel Freeman has signed a Memorandum of Understanding with Kairat Kelimbetov, CEO of the Sustainable Development Fund Kazyna, today.

In the Memorandum of Understanding both parties express the wish to increase their cooperation in order to improve governance and operations of development institutions of the Fund. The aim of the cooperation is to make these enterprises more market-orientated and consistent with international best practice and to enhance corporate governance and accountability. This is in accordance with the EBRD latest strategy for Kazakhstan, adopted in November 2006. Potential involvement of the EBRD as an investor to development institutions, in particular the Investment Fund of Kazakhstan, is being considered.

In its strategy the Bank has identified the diversification of the economy and the promotion of competition as strategic orientations. The EBRD is also exploring ways to strengthen the country´s energy security by enhancing energy efficiency.

During his visit to Kazakhstan, Mr Freeman has met government ministers and representatives of the business community and will also hold talks with Prime Minister Karim Masimow.

This year alone the Bank has already signed 20 projects worth over US$520 million in the country, including a $100 million loan to Mittal Temirtau, a $55 million long-term financing package to Kagazy Recycling and a $42 million loan to Karcement. The EBRD Board will discuss a $30 million-loan to the Pavlodar power plant later this year to upgrade operations and energy efficiency.

Since the start of its operations in Kazakhstan, the EBRD has invested more than US$2.2 billion in the country, helping to create jobs and improve the transparency of its clients.

The Sustainable Development Fund Kazyna, managing company and only shareholder of the development institutions Development Bank of Kazakhstan, Investment Fund, National Innovation Fund, Small Business Development Fund, Marketing and Analytical Research Centre, Kazakhstani Centre for Investment Promotion and State Insurance Corporation for Export Credits and Investments was established in April 2006 to increase investments and innovations in non-raw material sectors of Kazakhstan’s economy to diversify and enhance competitiveness of the economy. In 2007, the cumulative authorized stock of the development institutions stood at US$ 1.8 billion (as of June 1, 2007).