Astana, 21 October. The International Finance Corporation (IFC) intends to work up projects worth about $3 billion in Kazakhstan in 2026–2031 and expects to raise around 60% of the money from private investors, the Agency for Strategic Planning and Reforms said.
The plans were discussed on 21 October at an online meeting between Asset Irgaliyev, presidential adviser and chairman of the agency, and Imad Fakhoury, IFC Regional Vice President for the Middle East and Central Asia. The IFC is part of the World Bank Group; unlike the bank itself, which lends to governments, the corporation invests in private companies and projects. Since 1993 it has invested more than $2.9 billion in 115 private-sector projects in Kazakhstan and now intends to expand its portfolio.
The talks focused above all on transport infrastructure and the water sector, and on how to bring private capital into such projects. Public-private partnership was discussed separately: under this arrangement a private investor builds or maintains a facility under a long-term contract with the state. In the agency's assessment, the mechanism brings in investment and improves the design, construction and operation of facilities over their entire service life. The agency's statement did not name the specific projects that will make up the $3 billion portfolio.
What it means: Over six years the IFC plans to prepare projects in Kazakhstan worth roughly as much as everything the corporation has invested in the country since 1993, with most of the money to come from private investors. For now this is about working up projects, not decided investments.
Who benefits: According to the agency, first of all the sectors where the state is looking for private money — transport and water management. The specific companies and facilities that will receive financing have not yet been named.
Background: A practical step has already been taken: on 16 October the Ministry of National Economy and the World Bank Group signed an advisory services agreement under Kazakhstan's Joint Economic Research Programme (JERP). The work under it includes removing institutional and procedural barriers, preparing programmes to develop public-private partnership in priority sectors and putting together investment proposals.
List of sources used: Kursiv
Artificial intelligence was used in preparing this material.
