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Thursday, May 19th, 2022

Bishimbayev: funds allocated by National Fund within “Nurly Zhol” state program applied as planned

by October 20, 2016 General

Minister of National Economy of Kazakhstan Kuandyk Bishimbayev at the meeting of Nur Otan Partys fraction delivered on results of Nurly Zhol state programs implementation achieved since 2015.

According to the Minister, in the context of global economic slowdown and decline in the export commodity prices, Nurly Zhol state program is the main supporter of the business activity and employment.

3 billion US dollars has being allocated annually in 2015-2017 for the program implementation purposes upon instructions of the Head of State. Nurly Zhol projects implementation provides for loans from international financial institutions in the amount of 8.1 billion US dollars and own funds of national companies and development institutions in the amount of 254 billion tenge. Thus, total amount of funding provided for state program implementation is about 18 billion US dollars for 5 years, K. Bishimbayev informed.

The Minister noted that despite the 5-year implementation period, the positive impact of the program was visible within 2 years.

Nurly Zhols contribution to GDP is expected to be 1.2 p. the next year, K. Bishimbayev added.

About 7 thousand km of roads will be built and reconstructed in 2015-2020 within development of transport, logistics and industrial infrastructure.

The State Program also provides for creation of favorable conditions for an increase in internal freight traffic and freight turnover in the directions of Iran, China, Russia, EU countries, as well as for an increase of Astana airport capacity for EXPO 2017.

At the same time, the State Program also involves infrastructural support of manufacturing sector. 78.5 billion tenge was allocated to complete in 2018 construction of necessary infrastructure for petrochemical enterprises on the territory of National Industrial Petrochemical Technopark. 10 billion tenge of which was allocated in 2016, K. Bishimbayev informed.

Modernization of 1 thousand km of heat supply networks and 6 thousand km of water supply and drainage networks with the greatest loss is planned until 2020 within the State Program.

150 billion tenge was allocated for these purposes in 2015-2016, K. Bishimbayev informed.

According to the Minister, construction volumes have increased by 6.9% due to large-scale infrastructural construction within Nurly Zhol. The volumes increased by 13.6% over January-September (up to 7.2 million square meters).

Program provides for commissioning of 4.5 million square meters of housing until 2020, and for construction in the areas of mass constructing the lease, loan, commercial and private housing. 151.2 billion tenge was provided for these purposes as for today, the Minister informed.

In 2016-2017, we will provide 100.9 thousand sites (57.4 thousand of already issued and 43.5 thousand of new ones) for individual housing construction with necessary engineering infrastructure. K. Bishimbayev added.

Within development of educational infrastructure, 43 educational establishments, including 29 schools (22 schools to eliminate three-shift and 7 schools instead of those in emergency condition) and 14 kindergartens have been commissioned. Additionally 6 schools and 4 kindergartens will be commissioned by the year-end.

Moreover, to stimulate pre-export and export financing in 2016 it is provided 15 billion tenge through the Baiterek NMH JSC bond issue. DBK JSC has approved 7 projects 18.8 billion tenge worth, 3 of them were financed in the amount of 4.6 billion tenge. Moreover, additional 9 projects 22.4 billion tenge worth are currently under consideration. Mixed funds of National Fund and UPF in the amount of 45 billion tenge will allow supporting about 17 enterprises and ensure finished products export in the amount of 145 billion tenge, K. Bishimbayev noted.

He noted that one of the State Programs directions is cooperation with IFO, which will provide financial and technical support in accordance with framework cooperation agreements. These agreements provide for return projects, which involve direct economic and social effects, as the priority projects.

Id like to mention limited budget investments from the National Fund for the implementation of State Programs main directions. In this regard, to achieve the key performance indicators by 2020, since 2017 the volumes of co-financing of IFO joint projects will be increased instead of direct public financing, the Minister informed.

He noted that the funds of National Fund, allocated within Nurly Zhol State Program, are being applied in a planned volume as per the funding plan.

Ministry of National Economy jointly with other administrators of budget programs, akimats of regions, Astana and Almaty, and holdings have been permanently controlling the problem projects and monitoring the targeted and effective use of funds allocated in order to fully apply fund by the year-end, the Minister concluded.

Source: Government of the Republic of Kazakhstan