Kazakhstan leads in attracting investments of World Bank - Kussainov

Kazakhstan has become the largest country in Europe and Central Asia in attraction of investments of the World Bank, it reached 6.8 billion dollars during years of cooperation, First Deputy Minister of National Economy of Kazakhstan Marat Kussainov said.

"For the period of cooperation with the Republic of Kazakhstan, since 199 the World Bank has invested more than 6.8 billion dollars," Kussainov said giving a presentation on the draft law "On ratification of the Agreement between the Government of the Republic of Kazakhstan and the International Bank for the establishment and functioning of the Office of Reconstruction and Development in the Republic of Kazakhstan" at the plenary session of the Mazhilis.

These funds are focused on the development of road and social infrastructure, improving the competitiveness of SMEs, the modernization of the education and health systems, optimization of systems, customs and tax administration and environmental restoration.

The Vice-Minister noted that a good example of investment activities of the World Bank in Kazakhstan is transit corridor "Western Europe Western China".

Thus, in May 2014 at the initiative of the Head of State in order to further strengthen cooperation between Kazakhstan and the World Bank, partnership agreement was signed, in 2016-2021 joint projects worth $ 4.9 billion will be implemented, of which US $ 4.3 billion will be co-financed by the World Bank.

In 2015, the first three projects such as: Promoting productive innovation; Improving the competitiveness of SMEs; the project to develop skills and stimulate job creation totaling 293 million dollars have been ratified by the Parliament of the Republic of Kazakhstan.

In addition, in 2015 the World Bank approved the first tranche of loan at $ 1 billion to cover the budget deficit. The second tranche of loan in the amount of $ 1 billion is planned to approve in July 2016.

"This year we plan to make the ratification of 3 new projects worth more than $ 1.3 billion such as: Reconstruction of the site of Astana Beyneu corridor “Center West "; Social-parameter medical insurance; modernization of the education system", Kussainov said.

As the first deputy head of the MNE of the RK said, thanks to close cooperation with the World Bank, Kazakhstan has become the largest country in Europe and Central Asia on amount of investments from the WB.

"In order to strengthen cooperation and creation of appropriate conditions for the effective functioning of offices of the World Bank in Kazakhstan, I ask you to support this bill," Kusainov addressed to the deputies.

Meanwhile, it should be noted that in accordance with the Agreement concluded in Davos on January 21, 2016 between the Government of Kazakhstan and the World Bank, the World Bank has offices in the Republic of Kazakhstan and provides operational and administrative support services.

At the same time the World Bank takes full costs of salaries and other employee benefits. Their offices shall be inviolable and shall be under the control and management of the World Bank.

Agreement defines the following immunities of the World Bank and its staff: the property and assets of the World Bank are not subject to any form of search, requisition, confiscation, expropriation or any other form of seizure as a result of acts of the executive or the legislature; World Bank archives shall be inviolable; The World Bank, its assets, property and income, and its operations and transactions shall not be subject to any taxes and customs duties. The World Bank also released from any liability for the collection or payment of any taxes or duties;

Along with this, the World Bank employees are exempted from payment of taxes and other obligatory payments to or in respect of salaries and emoluments paid to them by the World Bank; internal regulations of the World Bank, including those in respect of the rules, principles and procedures for recruitment, should prevail in all cases related to labor relations with staff of the World Bank in the Republic of Kazakhstan; 

The Government of the Republic of Kazakhstan provides all World Bank staff a document certifying that they are employees of the World Bank and are entitled to the privileges, immunities and facilities provided for in this Agreement.