Kazakhstan to receive KZT42bn loan from IBRD

The Majilis of the Kazakh Parliament on Wednesday passed the draft law ratifying the loan agreement, signed between Kazakhstan and the IBRD under the Digital Acceleration for an Inclusive Economy (DARE) Project for Kazakhstan.

As Zhaslan Madiyev, the Digital Development, Innovation and Aerospace Industry Minister, said, the draft law, approved by the presidential decree as of November 21, 2024, aims at bridging the digital divide among urban and rural areas.

The agreement aims for the development of telecommunications infrastructure, that is, building local area networks in rural areas as well as creating conditions for private investments in the sector and supporting small- and medium-sized communication operators.

The project is to cover 1,123 villages with a population of around 2.3 million residents (up to 500,000 households) and will take three years from 2025 to 2027 to complete.

A total amount of investments is estimated at 84 billion tenge, of which up to 50% of capital expenditure will be subsidized through the project, including 42 billion tenge private financing and 42 billion tenge loan from the World Bank.

The Bank's tems include a 0.25% one-time fee and a 0.9 interest rate of per year.

Madiyev said that the project is to deliver positive socio-economic benefits, promote SMEs in rural areas, raise up to two billion tenge of additional tax revenues as well as create over 800 temporary and up to 200 permanent jobs.

In December 2024, it was reported that Kazakhstan sought three multi-billion-dollar loans cover its budget deficit, including from the 84 billion Japanese yen worth loan (600 million US dollars) the International Bank for Reconstruction and Development (IBRD) with the repayment schedule till September 15, 2034.