IDB plans $1.1bln investment in infrastructure projects in Kazakhstan

During the talks, the sides discussed the potential for deepening cooperation in financing priority infrastructure projects in Kazakhstan. Special attention was placed to the development of engineering and transport infrastructure in special economic and industrial zones. To that end, agreement was reached to attract financing of up to 1.1 billion US dollars from the IDB.

In addition, a letter of intent between the Kazakh government and the IDB to support Kazakhstan’s special economic and industrial zones was signed.

It is expected that the realization of this partnership will give a powerful impetus to the country’s infrastructure development, with up to 1.6 trillion tenge in investment and creation of over 16,000 jobs, thus contributing to accelerated industrialization and economic diversification of Kazakhstan.

This initiative is a continuation of the course set out in the Framework Program Agreement on strategic cooperation between the Kazakh government and the IDB signed on June 25, 2024. Under this Agreement, the sides confirmed their intention to implement investment projects worth over 8 billion US dollars.

The first stage of the Agreement provides for a project for development of climate resilient water resources to the amount of 1.1 billion US dollars, the largest ever made by the IDB, to build and reconstruct eight reservoirs and modernize 115 irrigation channels spanning over 3,600 km.

The meeting also discussed the key areas of cooperation in Islamic financing, including attraction of Islamic investment with the participation of the Kazakhstan Development Bank.

As reported earlier, the International Bank for Reconstruction and Development (IBRD) is set to provide a loan of 42 billion tenge under the Digital Acceleration for an Inclusive Economy (DARE) Project for Kazakhstan.