Kazakhstan: COVID-19 Active Response and Expenditure Support (CARES) Program (AIIB-000405)

Countries
  • Kazakhstan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Government of Kazakhstan
The holder of the loan, grant, or other investment.
Sectors
  • Education and Health
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 750.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Sep 28, 2020


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Project Description

According to the AIIB website, the objective of the proposed Program is to mitigate the adverse impacts of the Coronavirus disease (COVID-19) on the health, income, and economic opportunities of Kazakhstan population.

The CARES Program (Program) will be supported through a Loan extended by AIIB under AIIB's COVID-19 Crisis Recovery Facility and co-financed with a policy-based loan extended by the Asian Development Bank (ADB) under its Countercyclical Support Facility COVID-19 Pandemic Response Option. The Program would cover the Government of Kazakhstan's immediate COVID-19 health policy response, social protection and employment recovery measures, and stimulus measures.

The Program includes: (i) cash payments to the unemployed (USD95 per month per person); (ii) mitigations to higher food price impacts such as, a lower VAT rate, nationwide food supply program to provide free food to 1.1 million people, price caps for essential foods and and procurement of 41.6 thousand tons of essential foods to support vulnerable groups; (iii) Increase of all social payments (pensions, benefits, etc.) by 10 percent; (iv) new tax incentives such as, zero percent property tax rates (for retail, trade, catering, entertainment and hospitality sectors), land tax (for agricultural producers), income tax for individual entrepreneurs and for SMEs in catering, lodging, transportation, consulting and tourism sectors, six-month exemption from payroll taxes.

This Loan will be co-financed with the ADB as lead co-financier, and the Program's environmental and social risks and impacts have been assessed in accordance with the provisions of ADB's Safeguard Policy Statement applicable to policy-based lending (PBL).

 

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)
Contact Information

AIIB

Edwin Hin Lung Yuen

Senior Private Sector Operations Specialist /  edwin.yuen@aiib.org

 

Martin Naegele

Client Relations Officer /  martin.naegele@aiib.org

 

ADB

Joao Farinha Fernandes

Senior Financial Economist, Central and West Asia Department / jfarinha@adb.org

 

Borrower

Dauren Kenbeil

Director General, State Borrowing Department, Ministry of Finance / D.Kenbeil@ie.gov.kz

 

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html.

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html.