Astana, Kazakhstan, April 30
By Daniyar Mukhtarov - Trend:
Kazakhstan and the International Bank for Reconstruction and Development signed two loan agreements, the press service of the Ministry of Finance announced.
"The Deputy Prime Minister and the Minister of Finance Bakhyt Sultanov and the resident representative of the World Bank in Kazakhstan Sebnem Akkaya signed the agreements on loans between the Republic of Kazakhstan and the International Bank for Reconstruction and Development for financing of the "Modernization of Irrigational and Drainage systems "Phase-2" and "Institutional Strengthening of Justice Sector," the Kazakh Finance Ministry reported.
The International Bank for Reconstruction and Development has granted the Republic of Kazakhstan a loan in the amount of $102.9 million for the project on improvement of irrigational and drainage systems, and another $36 million for the project on strengthening the justice sector in the republic.
"The loans allocated for the implementation of the projects will improve social and economic and ecological living conditions of rural population near the basins of trans-border rivers of the South and South - East regions and promote further improvement of the legal system of Kazakhstan aimed at strengthening the institutional framework and support of ongoing legal reforms," Sultanov noted.
The second phase of the project on the improvement of irrigation and drainage systems aimed at improving the socio-economic and environmental conditions of the rural population in transboundary river basins (Syrdarya, Chu, Talas and Ili), located in the arid south-eastern and southern regions (Almaty, Jambyl, South Kazakhstan and Kyzylorda), based on the improvement of existing irrigation and drainage systems.
The objectives of the project on the improvement of irrigation and drainage systems are aimed at the restoration and improvement of technical conditions and commissioning of irrigation and drainage systems of the agricultural producers. They also intend to introduce water and soil conservation irrigation technology that will become the basis for reclamation.
"Justice Sector Institutional Strengthening" Project is aimed at improving institutional capacity and operational effectiveness of key institutions of the justice sector.
Objectives of the project to strengthen the justice sector will contribute to the improvement of the institutional environment and coordination of government bodies in the legal sector, the quality of development improvement and implementation of laws, the improvement of the professional level of legal sector employees through training and familiarization with the best world experience, strengthening and developing the educational infrastructure of the justice sector.
The loans provided by the International Bank for Reconstruction and Development are for the long term, including a grace period. The interest rate on these loans equals LIBOR + floating spread, which makes up less than 1 percent today. Lump sum commission is 0.25%.
The service and repayment of the attracted loan will be implemented by the Ministry of Finance of the Republic of Kazakhstan at the expense of the national budget in accordance with the financial conditions set forth in the loan agreement.
The World Bank continues its cooperation with Kazakhstan within the Partnership Strategy for 2012-2017. The WB has granted Kazakhstan since its independence loans worth 6.2 bln. The World Bank remains one of the key strategic partners and one of the largest donors to Kazakhstan.
Translated by S.I.
Edited by C.N.