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Kazakhstan: Country Partnership Strategy Final Review Validation, 2012–2016, Supplementary Linked Document 3

ASSESSMENT OF THE PUBLIC SECTOR MANAGEMENT

A. Sector Context and Background

1. Economic slowdown in 2014–2015

1. Prior to the 2008–2009 global financial crisis, Kazakhstan’s economy experienced higher gross

domestic product (GDP) growth. However, beginning 2014, two significant external factors weakened

its economic growth: (i) economic slowdown in the Russian Federation (a major trading partner), weaken

external demand for Kazakhstan’s metal exports; and (ii) steep fall in world oil prices, which fell by more

than 50% from 2013 to 2014. As a result, GDP growth fell from 6% in 2013 to 4.2% in 2014 and further

to 1.2% in 2015.1

2. The economic slowdown in the Russian Federation led to the weakening of the rouble which, in

turn led to a devaluation of the tenge from T155 per dollar to T185 in 2014 (a devaluation of 19.3%). In

response, the government announced a shift from a managed exchange rate to a floating exchange rate

regime on 19 August 2015. As a result, the tenge further depreciated by more than 35% from T188 to

T255; and in December 2015, the average exchange rate exceeded T322 per dollar.

3. The weak economic growth affected government revenues, which comprised about 50% of

budget income, resulting to a budget deficit from 1.9% of GDP in 2013 to 2.7% in 2014 (footnote 1). In

2015, the deficit narrowed to 2.2% as lower revenues forced cuts in planned spending. Amidst these

crises, the government was under pressure to meet critical expenditures. To finance the budget deficit,

transfers from the National Fund of the Republic of Kazakhstan to the republican budget reached 33%

of government expenditures in 2014 and 2015.2

2. Government Countercyclical Measures

4. The government introduced three measures to mitigate the negative impacts of the crises.

First, the Kazakhstan 2050 was launched in January 2014 to develop the economy into a diversified

private sector-driven developed economy.3,4

In February 2014, the government introduced a fiscal

stimulus program equivalent to $5.5 billion that included spending for (i) loans of $1 billion equivalent

to micro, small and medium enterprises (MSMEs) for increasing income-generating opportunities;

(ii) $0.8 billion equivalent to finance infrastructure projects; (iii) $1.4 billion equivalent for the Fund for

Problem Loans to support banks by purchasing qualified nonperforming loans; and (iv) and $2.2 billion

for other projects under partnership framework arrangements.5

1 ADB. 2016. Asian Development Outlook 2016. Update. Manila:

https://www.adb.org/sites/default/files/publication/197141/ado2016-update.pdf

2 The National Fund of the Republic of Kazakhstan is the national oil fund that was established in August 2000 as a stabilization

measure to ensure the economy of Kazakhstan is stable against the price swings in oil, gas and metals. It was also created to

ensure stable social and economic development and saving of financial resources for future generations. As of December 2015,

assets of the fund stood at $63.5 billion.

3 The strategy called for widespread economic, social and political reforms to position Kazakhstan among the top 30 global

economies by 2050. The strategic priorities included (i) innovative industrialization; (ii) an efficient agro-industrial sector;

(iii) improve potential for science; (iv) urban and infrastructure development; (v) development of micro, small and medium

enterprises; (vi) an active, educated and healthy population; and (iv) efficient public institutions.

4 To implement the Kazakhstan 2050, the government developed medium-term action plans to be carried out under partnership

framework arrangements with multilateral development banks. In May 2014, ADB and the government of Kazakhstan signed

the partnership framework arrangement during ADB’s Annual Meeting of the Board of Governors in Astana. Partnership

framework arrangements already existed with the World Bank, European Union for Reconstruction and Development, and Islamic

Development Bank.

5 Financing was sourced from the National Fund of the Republic of Kazakhstan, Eurobonds, and increased borrowing from

multilateral development banks under partnership framework arrangements.

https://www.adb.org/sites/default/files/publication/197141/ado2016-update.pdf

2 Kazakhstan: Country Partnership Strategy Final Review Validation, 2012–2016

5. Second, the Nurly Zhol (Bright Path) program for infrastructure development approved in April

2015 is expected to generate about 395,000 employment opportunities by 2019. The program provided

economic support of $9 billion to be financed from the National Fund of the Republic of Kazakhstan and

multilateral development bank loans. Spending priorities of the program included: (i) developing and

modernizing infrastructure to support education, tourism, housing, utilities, transport, and logistics;

(ii) developing non-oil business sectors, including manufacturing and agribusiness; and (iii) improving

the business environment, including increasing availability of finance.

6. Third, the Employment Roadmap 2020 provided a $200 million equivalent allocation in the

republican budget and similar allocations for 2016 and 2017. The objectives of the road map were to

(i) promote employment of self-employed, unemployed, and target population groups that include part-

time and low-income people, youth, women, and the disabled; (ii) develop human resources; and

(iii) improve targeted social assistance. By 2020, the program targets were to keep the total

unemployment rate below 5%, the unemployment rate of women below 5.5%, and the youth

unemployment rate (ages 15–28) below 4.6%.

7. In June 2014, the government also took measures to attract investment in the non-oil economy,

approving a comprehensive plan to attract foreign and domestic investment.6 During the same period,

the President signed a new law on the enhancement of the country’s investment climate, introducing

reforms and incentives to attract investors.7

3. Government Institutional Reforms and Anti-Crisis Plan

8. In May 2015, the Plan for the Nation: 100 Concrete Steps for implementation of institutional

reforms, which complements both the Nurly Zhol and the Employment Roadmap 2020, was approved

in response to the domestic and global challenges. The program comprised professionalizing public

administration, enforcing the rule of law, increasing state transparency and accountability, fostering

economic diversification and growth, and uniting the nation. This was later followed by adoption of the

2016–2018 Anti-Crisis Action Plan, which includes measures to improve reforms under the national plan

“100-steps,” and focuses on two areas: (i) formation of a new structural economy in five main directions

(stabilization of the financial sector, optimization of fiscal policy, privatization and promotion of

economic competition, basis of a new investment policy, and a new social policy); and

(ii) operational measures to stimulate growth and increase lending to the economy, including

(a) support to the real economy, (b) implementation of key infrastructure projects under the “Nurly Zhol”

program, (c) support to SMEs, (d) social stability, (e) employment support, (f) making housing more

accessible to the population, and (g) implementation of agro-industrial and industrial projects.8

B. Sector Constraints and Challenges

9. The main challenge facing the public sector management (PSM) is the weak institutional capacity

characterized by: (i) poor connection between production and training that contributed to skill gaps,

(ii) lack of access to finance for MSMEs, (iii) delays in the implementation of infrastructure projects in the

non-oil sector, (iv) inefficient state-owned enterprises (SOEs) that dominated large parts of the economy,

6 Approved by government decree No. 570 on 5 June 2014. The plan comprised adopting a package of incentives to attract foreign

and domestic investment, improving activities of special economic zones, simplifying the visa regime, enhancing the “investment

ombudsman” institution, and creating a concrete plan to attract foreign and domestic investment to Kazakhstan in 2014-2015.

7 The new Incentives Law was ratified on 12 June 2014. The measures introduced include exemptions from corporate taxes, land

taxes and property taxes for a specific period, investment subsidy, stability of tax rates, environmental fees and charges,

attraction of foreign labor, limits on tariffs for a specific period, and single window for investors.

8 The plan was developed as measures to implement the message of the President Nazarbayev to the people of Kazakhstan,

“Kazakhstan in a new global reality: growth, reforms, development”, given on 8 December 2015.

Supplementary Linked Document 3: Assessment of the Public Sector Management 3

and (v) anti-corruption and public institutions that needed further strengthening in capacity and

independence.

C. Government Strategy for Public Sector Management

10. One of the focus areas in the government’s Strategic Plan for Development 2020 was to advance

public sector reforms to increase efficiency, transparency and accountability by (i) streamlining

government agencies, (ii) establishing a basis for a performance-based public financial management

(PFM) system, (iii) accelerating civil service reforms, and (iv) increasing the quality of government

services.9 In 2013, a results-based comprehensive system of state planning was approved and in line with

the overall framework of Kazakhstan 2050, the government developed 10-year national-level

development strategies to implement the vision. The government also developed a budget policy aimed

at strengthening the PFM system and improving fiscal sustainability.10

The budget policy includes

performance-based strategic plans and budget programs, an establishment of e-payment system and

comprehensive treasury single account, and introduction of the International Public Sector Accounting

Standards to the whole government in January 2013.

11. In December 2014, the government adopted the Anticorruption Strategy Sector Program for the

Fight Against Corruption for 2015–2025. The strategy included (i) improving the legal framework,

(ii) fighting corruption in the civil service and quasi-state and private sectors, (iii) strengthening

enforcement and judicial systems, (iv) promoting public awareness, involving civil society in

anticorruption activities, and (v) expanding international cooperation to fight corruption. In line with 100

Concrete Steps for Implementation of Institutional Reforms approved in May 2015, reforms were to be

instituted in the recruitment and promotion in civil service based on competence and merit, development

of a new code on civil service, and a revamped system of remuneration for civil servants based on

performance and region-based criteria.

12. A government reorganization was carried out to improve implementation of development

projects. In 2013, the Ministry of Economy and Budget Planning was reorganized and took the fiscal

planning responsibility from the Ministry of Finance, while the function of budget planning was

transferred to the Ministry of Finance.11

Baiterek Holding was formed to provide financial and investment

support for the non-oil and gas sector, ensure sustainable development and diversification of the national

economy, attract investment, develop business clusters and improve corporate management of its

subsidiaries.12

To promote a vibrant MSME sector, the Damu Entreprenuership Development Fund was

established and tasked to execute the Roadmap for Business 2020.13

D. ADB Strategy and Portfolio

13. Results framework. The 2012–2016 country partnership strategy (CPS) does not have an explicit

sector strategy for PSM. However, a sector results framework for the sector was formulated as part of

the design of the loan for the Countercyclical Support Facility (CSF) approved in August 2015.14

The

expected results are presented in the table (Table 1) below.

9 Approved by Decree of the President of the Republic of Kazakhstan, No. 922 dated 1 February 2010.

10 Concept of New Budget Policy. Presidential Decree no. 590. June 2013. The annual budget covered a rolling medium-term three-

year planning period.

11 The function of budget policy, public and publicly guaranteed debt policy, investments projects policy remained with the Ministry

of National Economy.

12 Established in accordance with the Decree of the President of the Republic of Kazakhstan No. 571 of 22 May 2013. The holding’s

structure includes 11 subsidiaries.

13 Government of Kazakhstan. 2010. Roadmap for Business 2020. Astana.

14 ADB. 2015. Republic of Kazakhstan: Countercyclical Support. Manila.


Table 1: ADB Sector Results Framework for Public Sector Management

Country Sector Outcomes Country Sector Outputs ADB Sector Operations

Outcomes

with ADB

Contribution

Indicators with

Targets and

Baselines

Outputs with

ADB

Contribution

Indicators with

Incremental

Targets

Planned and

Ongoing ADB

Interventions

Main Outputs

Expected from

ADB

Interventions

Fiscal

sustainability

improved

By 2016:

a. Budget

deficit is

reduced to

2.4% of GDP in

2016 (2014

baseline: 2.7%)

b. Non-oil

deficit is

reduced to

7.0% in 2016

(2014 baseline:

7.7%)

Policies to

improve

diversification of

the economy

improved.

Contribution of

MSME sector

to GDP

increased to

21.0% of GDP

in 2016 (2014

baseline:

20.0%)

Employment in

MSME sector

increased form

2.9 million

people in 2014

to at least 3.1

million people

in 2016.

Planned key

activity areas

Countercyclical

Support Facility

Lending ($1

billion equivalent)

MFF SME Tranche

3 additional

financing ($98

million

equivalent)

MFF Financial

Sector

Development

through ICT

Enhancement

Program ($410

million, of which

ADB will provide

$205 million and

the government

$205 million)

MFF SME Tranche

3 (228 million

equivalent)

Ongoing projects

with approved

amounts

MFF SME Tranche

2 ($122 million

equivalent)

Planned key

activity area

By 2016:

SME loans by

PFIs increased

by T30 billion

(baseline: tbd

by PFIs at the

time of loan

signing)

Ongoing

projects

By 2015:

SME loan

accounts

opened by PFIs

increased to

3,500 (baseline:

2,000 loan

accounts in

2013).

Increased

private sector

investment in

industry and

other key

sectors of the

economy to

support

higher GDP

and

employment

Unemployment

levels remain

below 5.0% in

2015 and

2016.

Countercyclical

employment

generation

programs of the

government are

sufficiently

financed

Budget

expenditures

for social

expenditures

(education,

healthcare,

social

assistance, and

provision/social

security and

social aid) in

percent of total

expenditures

are maintained

or increased

(2015 baseline:

39.1% of total

expenditures)

ADB=Asian Development Bank, GDP=gross domestic product, ICT=information and communications technology;

MMF=mutiltranche financing facility, MSMEs=micro, small and medium-sized enterprises, PFI=participating financial

institution, SMEs=small and medium sized enterprises, tbd=to be determined.

Source: ADB. 2015. Report and Recommendation of the President on the Proposed Loan to the Republic of Kazakhstan:

Countercyclical Support. Linked Document No. 2. Manila.

14. ADB Portfolio. Table 2 shows the loan and TA projects approved for PSM. ADB provided lending

and nonlending support for PSM in line with the 2012–2016 CPS goal of helping Kazakhstan achieve

accelerated diversification of the economy and increasing its competitive ability for sustainable and

inclusive growth. The lending support was a single loan of $1 billion for CSF to help the government

mitigate the unanticipated and significant negative impacts of steep fall in oil prices and the economic

slowdown in neighboring countries, particularly the Russian Federation. The envisaged outcome was

improved fiscal sustainability to be achieved by a reduction in the budget to 2.4% and non-oil deficits to

7.0% of GDP by 2016.


15. In terms of nonlending support, the government and ADB established the joint Knowledge and

Experience Exchange Program (KEEP) in 2013 to facilitate a range of strategic knowledge options,

capacity development and global best practices.15

In July 2015, the second phase of KEEP was approved

to further support subprojects at macro, sector, and thematic areas, and expanded its areas for support,

such as on public management, audit and finance.16

To strengthen road sector management, technical

assistance (TA) was approved to provide clear linkages between planning, budgeting, program and

project implementation, and monitoring development results.17

Table 2: Loan and Technical Assistance

Loan/TA

No. Project Name

Project

Type

Amount

($ million)

Date

Approved

Date

Closed

3272 Countercyclical Support Program

Loan

1,000.000 21 Aug 15 5 Jan 16

8933 Joint Government of Kazakhstan and the

Asian Development Bank Knowledge and

Experience Exchange Program, Phase 2

PATA 1.000 24 Jul 15 Active

8676 Managing for Development Results in the

Transport Sector of Kazakhstan

CDTA 0.225 30 Jun 14 Active

8414 Joint Government of Kazakhstan and the

Asian Development Bank Knowledge and

Experience Exchange Program, Phase 1

PATA 0.500 29 Jul 13 Active

Total 1,001.725

CDTA = capacity development technical assistance, PATA = policy and advisory technical assistance.

Source: Validation compilation from ADB database.

16. Pipeline delivery. During 2012–2016, ADB programmed $1,001.7 million for PSM, of which

$1,000 million was allocated for lending and $1.7 million for nonlending assistance.18

The total

programmed amount was 100% delivered.

E. Evaluation of Public Sector Management Operations

1. Relevance

17. The CPS Final Review (CPSFR) rated ADB’s PSM operations relevant, based on the relevance of

CSF loan. This validation also rates ADB’s PSM operations relevant. ADB was responsive to the

countercyclical support needed during the crisis period, promoted knowledge solutions for the country’s

development, and supported result-based management in the transport sector. The CSF helped ease

budget constraints faced by the government due to revenue shortfalls and maintain priority social

expenditures during the crisis period. The program design was explicit in identifying the measures to

promote non-oil and private sector development, increase employment, and priority expenditures. The

policy loan of $1 billion was in two equal tranches of $500 million and was appropriate in view of the

projected budget deficit of $6.8 billion in 201519

and the government’s debt repayment capacity.20

15

ADB. 2013. Technical Assistance Report: Republic of Kazakhstan: Joint Government of Kazakhstan and the Asian Development

Bank Knowledge and Exchange Program, Phase 1. Manila.

16 ADB. 2015. Republic of Kazakhstan: Joint Government of Kazakhstan and the Asian Development Bank Knowledge and

Experience Exchange Program, Phase 2. Manila.

17 ADB. 2014. Technical Assistance: Managing for Development Results in the Transport Sector of Kazakhstan. Manila.

18 The countercyclical support loan was an emergency measure and therefore was not anticipated. Nonetheless, it was programmed

in the COBP 2016-2018.

19 The projected deficit is after the government transfer of $13.4 billion equivalent from National Fund of the Republic of

Kazakhstan to the republican budget.

20 Public debt was assessed to be sustainable and resilient to a broad range of shocks. Source: ADB. 2015. Republic of Kazakhstan:

Countercyclical Support, Debt Sustainability Assessment, List of Linked Documents. Manila.


18. ADB’s ongoing nonlending operation in PSM was relevant. Knowledge exchange was one drivers

of change identified in the CPS framework that will add value to Kazakhstan’s development. In line with

this, KEEP Phases 1 and 2 was designed to enable Kazakhstan to respond to prevailing and emerging

development opportunities and challenges by helping the government meet the emerging policy,

advisory, and capacity development requirements, bringing best global practices and knowledge, and

tailoring them to Kazakhstan’s context. The TA was innovative as it was the first of its kind where a

developing member country shared the cost of a knowledge-sharing partnership on a cash basis. The

design allowed for flexibility in the subprojects identified and financed to provide scope for adjustment

and to effectively respond to the country’s requirements.21

19. The small TA on Managing for Development Results in the Transport Sector supported the

government’s priority to develop an efficient transport system and results-based management of the

roads subsector. It was in line with the CPS objective to support Kazakhstan’s transport and logistics

system. The Managing for Development Results Framework was expected to help improve, planning,

budgeting and service delivery in the transport sector.

2. Effectiveness

20. The CSPFR rated PSM operations effective based on the single loan for the Countercyclical

Support Facility. It argued the $1 billion facility allowed the government to sustain critical expenditures

for social and infrastructure programs during the fiscal crisis caused by the sharp fall in oil-related

revenues. The government met the disbursement conditions for the loan that included (i) approval on

the establishment a single database for tax and customs administration, (ii) establishment of an

information system e-declaration of customs clearance, (iii) draft law submitted to Parliament on

increasing attractiveness of investment in electricity generation,22

and (iv) a draft law submitted to

Parliament to introduce optimized social aid with a targeted approach.23

1. As of March 2017, of the loan’s two outcome indicators (budget deficit and non-oil deficit), the

budget deficit indicator was met, as it was reduced to 2.2% in 2015 compared to the target of 2.4% in

2016.24

Of the loan’s eight target outputs, six were met, except for indicator on labor productivity in

agriculture and volume of nonresource exports by enterprises that have received support under the

program.25

Of the four anti-crisis actions in 2016, as agreed in the CSF results framework, the Government

21

KEEP Phase 2 was included in ADB’s country operations business plan for 2015-2017. ADB. 2014. Country Operations Business

Plan: Kazakhstan, 2015-2017. Manila.

22 The draft law “On amendments to some legislative acts of the Republic of Kazakhstan on the issues of electric power” was

adopted by the Parliament on 12 November 2015. The tariff policy introduced a feed-in tariff structure based on a fixed

component to cover capital expenditures and a variable component to cover generation costs.

23 The draft law “On amendments to legislative acts of the Republic of Kazakhstan on the issues of social protection of population”

was adopted by the Parliament on 28 October 2015. The new law provided for (i) monetary assistance to low income citizens,

who actively participate in programs promoting employment and social adaption, (ii) increased access to employment

opportunities, training and retraining under the Employment Roadmap 2020, and (iii) a social contract between the state and

an individual beneficiary.

24 The CSF’s expected outcome is improved fiscal sustainability, measured by two indicators: (i) budget deficit reduced to 2.4% of

GDP in 2016 (2014 baseline: 2.7%), and (ii) non-oil deficit reduced to 7.0% in 2016 (2014 baseline: 7.8%).

25 The CSF has three expected outputs to be measured by eight indicators. First, measures to promote non-oil and private sector

development: (i) the contribution of the micro, small, and medium-sized enterprise (MSME) sector increased to 21% of GDP in

2016 (2014 baseline: 20%); (ii) labor productivity in agriculture increased to at least T700,000 by 2016 (2014 baseline: T572,800);

and (iii) the volume of non-resource exports by enterprises that received support under the program increased to at least T25

billion in 2016 (2015 estimated baseline: T21.7 billion). Second, measures to increase employment: (i) employment by SMEs

increased to at least 3.1 million people in 2016 (2014 baseline: 2.9 million); (ii) percentage of self-employed population in the

economically active population decreased to at least 27.1% in 2016 (2014 baseline: 28.0%); (iii) unemployment for women

decreased to at least 5.5% by 2016 (2013 baseline: 5.9%); and (iv) the number of jobs created under Nurly Zhol increased to

least 100,000 by 2016 (2014 baseline: 10,400). Third, the government is to prioritize expenditures to sustain jobs and maintain

social expenditure so that the budget for social expenditures as a percent of total expenditure is maintained or increased (2014

baseline: 37.5% of total expenditure).


showed progress in two (Action 1.5: Government provides financial support to agribusiness; and Action

3.2: Government ensures countercyclical measures for social expenditure and job creation are included

in the budget, implemented, monitored, and reported), while the other two were not demonstrated

(Action 1.4: Government provides support to current and potential domestic exporting enterprises in

non-resource sector of the economy; and Action 2.2: Government raises public awareness of

employment-related activities). On this basis, the validation considers the CSF loan likely effective.

21. The TA on KEEP Phases 1 and 2 are likely effective. Phase 1 has already achieved considerable

outputs, which will contribute to the expected outcome of strengthened government capacity. As of

September 2015, the studies and activities supported under Phase 1 include

(i) evaluation and calculation of economic costs of road traffic accidents, (ii) international good practices

to assess market concentration and competition, (iii) diversification of the Kazakhstan economy and new

sources of economic growth, (iv) review of advanced Asian countries success stories and experience in

economic development, and (v) forum on SME financing.26

The outputs of Phase 2 are likely to contribute

to strengthening government’s capacity and awareness of best practices in areas selected for support. In

the TA for Managing for Development Results in the Transport Sector, a Managing for Development

Results manual and implementation manual were prepared and training for executing agency and

implementing agency staff and stakeholders was conducted.27

These outputs will contribute to the

expected outcome of enhanced institutional capacity of the Ministry of Transport and Communications

in managing the roads subsector using a results-based approach. Overall, the validation is of the view

that ADB operations in PSM is likely effectiveness.

3. Efficiency

22. The CPSFR rates the CSF likely efficient based on the fact that the loan was fully disbursed within

four months after approval. To validate such rating, this report compares the CSF processing and

disbursement timelines with the other CSFs processed by ADB earlier (Figure 1). On the contrary, the

disbursement of fund four months after its approval is the longest disbursement timeline, next to

Indonesia (5.7 months), based on past experience of ADB under the CSF.

23. While there are no prescribed processing time and disbursement period under the CSF, it is

expected that the approval and disbursement of CSF funds are timely to provide the appropriate support

to the government during crisis. ADB guidelines, on one hand, explicitly mentioned that CSF lending

takes the form of a single-tranche operation given the nature of the assistance.28

The CSF approved in

2015 for Kazakhstan was intended to help fund the country’s fiscal deficit in 2016,29

and boost existing

programs of the government in the infrastructure and social sectors.30

While ADB took a total of 10

months to process and disburse the fund, its approval in August 2015 and disbursement in December of

the same year was still considered timely given the loan objective. Furthermore, the disbursement terms

were appropriately adjusted to a single-tranche operation since all the conditions were met at the same

time the loan effectiveness was declared.31

26

The forum was held in Almaty on 17 July 2015.

27 Training was conducted on 17–28 February 2016.

28 ADB internal document: OM Section D4/BP Issued on 14 October 2011, page 5, paragraph 12.

29 http://ortcom.kz/en/news/kazakhstan-ratified-loan-agreement-for--1-billion-from-adb.8301

30 http://www.publicfinanceinternational.org/news/2015/08/adb-approves-1bn-%E2%80%9Cfiscal-leeway%E2%80%9D-loan-

kazakhstan

31 According to ADB Operations Manual, CSF lending takes the form of a single-tranche operation. For the case of Kazakhstan, the

Board granted waiver to exceed the policy’s country ceiling ($500 million). Because of this exception and to address Board

concerns about Kazakhstan’s CSF eligibility, the loan was divided into two $500 million tranches, and a number of policy

conditions should be met prior the release of the second tranche (i.e., the part of the loan exceeding the CSF country ceiling)

(See: ADB. 2016. Review of ADB’s Lending Instruments for Crisis Response. Policy Paper. Manila).

http://ortcom.kz/en/news/kazakhstan-ratified-loan-agreement-for--1-billion-from-adb.8301

http://www.publicfinanceinternational.org/news/2015/08/adb-approves-1bn-%E2%80%9Cfiscal-leeway%E2%80%9D-loan-kazakhstan



24. To assess the efficiency of PSM TAs, this report compares the actual processing and

implementation timelines of KEEP Phases 1 and 2 TAs and SSTA on Managing for Development Results

in the Transport Sector against the average processing and implementation timelines of ADB’s TAs and

SSTAs (Figure 2).32

KEEP Phases 1 and 2 exceeded the 2.5-month baseline for processing a TA. While KEEP

Phase 1 took 6.1 months to engage its first consultant, KEEP Phase 2 took only 3.9 months, which is

slightly lower than the 4.1-month baseline for TAs. SSTA on Managing for Development Results in the

Transport Sector, on the other hand, took five months before fielding its first consultant as compared to

the 3.7-month baseline for SSTA.

25. On average, ADB’s TAs are only being extended once. KEEP Phase 1 encountered implementation

delays, resulting to a three-time TA extension, with a cumulative extension of 29 months. The said total

month of extension is more than four times the baseline of 6.9 months. KEEP Phase 2, currently being

implemented for one year and 5 months, has only disbursed 16% of its total approved TA amount.33

With only 1 year and 3 months to go before its target completion date, there is greater chances that

KEEP Phase 2 will also be extended. The SSTA on Managing for Development Results in the Transport

Sector, on the other hand, was extended for six months.

26. Despite the delays, considerable outputs under KEEP Phase 1 were achieved with 82% of the

approved amount disbursed.34

However, copies of completed studies cannot be accessed by stakeholders

outside of government or by the general public as they are considered government internal documents.

The SSTA on Managing for Development Results in the Transport Sector, which was financially completed

32

Baselines were computed using the 37 CDTAs and PATAs approved on 2013-2015 with available TA completion reports. The

baseline period is the same with the years KEEP Phase 1 and 2 TAs and MfDR SSTA were approved. Baselines were computed

separately for TAs and SSTAs since TA processing entails more steps. Consequently, initiating the engagement of the first

consultant might be more complex under the TAs as it may involve larger contract amount compared with those under SSTAs.

Using the same dataset, a baseline for both TA/SSTA extensions in months and frequency were also computed. In this case, there

is no distinction between extended TAs and SSTAs since it is assumed that the TA/SSTA amounts have already been considered

in the planning and implementation of activities, as well as in the delivery of outputs; hence, TA/SSTA amounts are not expected

to affect TA/SSTA extensions.

33 As of 8 December 2016.

34 As of 12 July 2016.

5.6

1.0

3.4

1.9

4.8

0.9

3.8

4.3

2.1

0.1

2.9

0.7

5.7

0.9

0 1 2 3 4 5 6 7 8 9 10

KAZ (2015)

KAZ (2009)

TAJ

VIE

PHI

INO

BAN

Figure 1: Actual Processing and Disbursement Timeline

Conceptualization to Approval Approval to Disbursement

BAN = Bangladesh, INO = Indonesia, PHI = Philippines, KAZ = Kazakhstan, TAJ = Tajikistan, VIE = Viet Nam.Notes: During the 2008-2009 global economic crisis, ADB provided Countercyclical Support Facility (CSF)

loans to BAN , INO, KAZ (2009), PHI and VIE (each $500 million), and a CSF grant to TAJ ($40 million).

Sources: ADB project documents.

Total Months

3.6

4.7

6.6

4.8

5.5

3.1

9.9

Number of months


on 31 August 2016, has an actual disbursement rate of 89%, with considerable outputs achieved. Taking

into consideration the significant processing and disbursement delays of the CSF loan and achievements

of the TA, with processing delays as well, the validation rates the public sector management program

less than efficient.

4. Sustainability

27. The CPSFR’s preliminary rating of the CSF is likely sustainable. Validation concurs with this rating.

The facility supported existing measures of the government to reduce the economic impacts of the crisis,

which were likely to be sustained by the government beyond the program. These measures included

implementing the action plan for Employment Roadmap 2020, introducing a new tariff policy that

covered electricity generating costs, implementing the e-declaration system for customs clearance, and

introduction of optimized social aid based on a targeted approach. The ability to achieve fiscal

sustainability in the medium term depended largely on the government managing to adjust fiscally to

changes in the oil price level, which can affect revenues and prospects for economic growth. There were

no apparent risks in the utilization of funds in 2016 that were fully disbursed by the end of 2015. During

loan preparation, public debt was assessed to be sustainable and resilient to a broad range of shocks

and the CSF did not affect debt sustainability levels.

28. The sustainability of on-going TAs cannot yet be assessed, nonetheless, there are indications that

achievements so far by KEEP Phase 1 are likely sustainable because studies that were undertaken will help

increase the level of knowledge-based policymaking of the government into the near future. Validation

rates ADB’s PSM operations likely sustainable.

5. Development Impacts

29. It is still too early to rate the development of impact of ADB’s public sector operations.

Nonetheless, the validation notes that under the CSF, reforms were initiated particularly in tax and

customs administration, investment in electricity generation, and social aid. Knowledge solutions that

will be drawn from KEEP will likely have a development impact on government’s efforts in achieving a

more competitive and inclusive economy, developing human capital, and in enhancing institutions and

2.9

3.8

2.1

2.5

5

3.9

6.1

3.7

4.1

0 1 2 3 4 5 6 7 8 9 10

MfDR ($225,000)

KEEP Phase 2 ($1M)

KEEP Phase 1 ($500,000)

Baseline for SSTA…

Baseline for TA…

Figure 2. TA Processing and Implementation Timelines

(Baseline vs. Actual, Number of Months)

Concept Clearance to Approval Approval to Fielding of First Consultant

CDTA = capacity development TA, KEEP = Knowledge and Experience Exchange Program, M = million,

MfDR = Managing for Development Results, PATA = policy and

advisory TA, SSTA = small-scale technical assistance, TA = technical assistance, TCR = TA completion report.

Notes: MfDR TA has no concept clearance date. Data in brackets are TA/SSTA amounts. Baselines refer to the average

processing time (concept clearance to approval) and average time it takes for the TA/SSTA to engage the first consultant

after its approval (approval to fielding of first consultant). The averages are based on 37 CDTAs and PATAs

(22 SSTAs and 15 TAs) approved on 2013-2015 with available TCR; of which, 19 have concept clearance date, and

33 have date of fielding of first consultant. Totals do not add up due to rounding off.

Source: ADB’s Technical Assistance Information System and Technical Assistance Completion Reports.

Total Months

9.9

6.9

5.0

6.6

5.8


governance. The Managing for Development Results Framework that will be developed under the

Managing for Development Results in the Transport Sector TA will enhance the Ministry of Transport and

Communications’ institutional capacity to manage the roads subsector using a result-based approach.

F. Other Assessments

30. ADB Performance. The performance of ADB’s is rated satisfactory. ADB was responsive to the

request of the government to support critical countercyclical expenditures during the crisis period in line

with access criteria for countercyclical support.35

ADB waived the ceiling of $500 million countercyclical

support lending for each country to support the government’s request.36

The lending terms were

appropriate with regard to the government’s debt repayment capacity, ADB’s risk-basing capacity, and

in line with ADB’s long-term capital adequacy framework.37

The loan resulted from an extensive policy

dialogue with the government and development partners on economic developments, policy reform,

anti-crisis measures, management and monitoring of reforms.

31. In terms of nonlending support, ADB responded appropriately to the government’s request for

assistance in facilitating innovative knowledge solutions and global best practices through KEEP Phases

1 and 2. The TA was conceptualized during CPS consultation with the government and designed based

on discussion with officials of the Ministry of National Economy. The Managing for Development Results

in the Transport Sector TA was formulated to support the need to strengthen the road sector

management. ADB consulted with key government agencies, development partners, private sector

stakeholders in designing the TA and identifying the targeted outputs.

32. Borrower Performance. The performance of the borrower is rated satisfactory. The government

fully met the conditions for the second tranche of the countercyclical loan and took measures to promote

non-oil and private sector development, increase employment, and prioritize expenditures to sustain jobs

and social expenditures. The government established a KEEP Coordinating Committee to oversee

implementation and provided guidance and direction to stakeholders. The government’s willingness to

share in the cost of KEEP demonstrated its strong ownership of the project. In addition, the subprojects

identified were demand driven.

G. Overall Rating

33. Overall, validation rates ADB’s PSM operations in Kazakhstan less than successful, with the ratings

of relevant, likely less than effective, less than efficient, and likely sustainable. The development impact

is not rated as the CSF loan and KEEP products are too early to assess. Table 3 shows the details.

Table 3: Public Sector Management Rating

Criterion CPSFR/a

CPSFR

Validation/b

Key Reasons for Difference

Relevance Relevant Relevant

Effectiveness Effective Likely effective

Efficiency Likely efficient Less than

efficient

There were significant processing and disbursement

delays in the CSF loan. The TAs also had processing

delays.

35

The criteria include: (i) significant adverse impact of the crisis; (ii) planned countercyclical development expenditures to address

challenges and protect low-income households; and (iii) sound macroeconomic management including a solid fiscal position.

36 Based on the 2011 Review of ADB’s Policy-Based Lending, the ceiling for countercyclical support facility lending is $500 million

for each country. Source: ADB. 2009. Enhancing ADB’s Response to the Global Economic Crisis-Establishing the Countercyclical

Support Facility. Manila (para. 14[iv]; and ADB. 2011. Review of ADB’s Policy-Based Lending. Manila (para. 35[ii][b].

37 ADB. 2008. The Asian Development Bank’s Long-Term Capital Adequacy Framework. Manila.


Criterion CPSFR/a

CPSFR

Validation/b

Key Reasons for Difference

Sustainability Likely

sustainable

Likely

sustainable

Development

impacts

na na Both the CSF loan and KEEP products are too early for

rating impact.

Overall score 2.0 1.8

Overall rating Successful Successful

na = not available

/a ADB. 2016. Country Partnership Strategy Final Review: Kazakhstan, 2012–2016. Manila.

/b Validation assessments.

H. Issues, Lessons, and Recommendations

34. Issues. The government’s plan to shift to a direct lending approach, under which international

financing institutions lend directly to operating entities with government providing guarantee, is a

constraint to ADB’s operations. While entities such as SOEs, municipalities and subsidiaries may need

external assistance, they may not have the capacity to repay ADB loans. This will affect ADB’s sector

lending program going forward.

35. KEEP knowledge products have not been widely shared, as they should. This limited the

dissemination of knowledge and learning from these products, which could benefit stakeholders outside

the government bureaucracy.

36. Lessons. The cost-sharing arrangement on a cash-basis under the KEEP partnership is innovative

and reinforces government’s ownership of the project. The demand-driven nature of the subprojects

identified for support ensures that the outputs are according to the needs and priorities of the

government.

37. The CSF was a short-term emergency response to the fiscal crisis the government was facing. The

design could have benefited more from a post-program partnership framework that draws out the next

steps in sustaining the outcomes and reforms in the public sector. This could have allowed sustained

engagement of ADB with the government and opportunity for further support to the sector.

38. Recommendations. ADB’s assistance to PSM has largely been in response to an emergency

situation, rather than strategic. This is borne out of a lack of clear strategy for the sector under the CPS.

In view of the fiscal challenges the government is facing and the strategic priority of increasing efficiency

of public institutions under Kazakhstan 2050, ADB needs to develop a clear sector strategy for PSM that

will add more value to Kazakhstan’s development.

39. ADB should continue engaging the government in policy dialogue and explore areas where

assistance could be provided in the sector. The 100 Concrete Steps for implementation of institutional

reforms could be an area of support particularly in professionalizing public administration, increasing

state transparency and accountability, and fostering economic diversification and growth. The Nurly Zhol

program is another potential area where support can be provided particularly for infrastructure

development. Assistance may also be explored in improving the efficiency of SOEs for greater efficiency

in the public sector.

40. Knowledge products such as KEEP have been helpful to the government and ADB support along

this line should be continued. Such products have provided added value in increasing knowledge towards

the country’s goal of economic diversification. Efforts should be made for a wider dissemination of these

knowledge products to stakeholders.

12 Kazakhstan: C

ountry Partnership S

trategy Final R

eview V

alidation, 2012–2016

ASSESSMENT OF THE PUBLIC SECTOR MANAGEMENT SECTOR PORTFOLIO

Basic Project

Information Expected Impact, Outcome and Output CPSFR Assessment

CPSFR Validation

Assessment

Loan 3272:

Countercyclical

Support

Approval Date:

21 Aug 15

Closing Date: 5

Jan 16

Amount ($

Million)

Approved:

1,000.0

Actual:

1,000.0

EA/IA

EA: Ministry

of Finance

IAs: Ministry

of National

Economy,

Ministry of

Healthcare

and Social

Development,

Ministry of

Energy and

National Bank

of Kazakhstan

Impact: Sustained pro-poor economic growth. (State

Program of Infrastructure Development Nurly Zhol for

2015–2019, Employment Roadmap 2020).

No indicators given.

Not assessed. Expected outcomes and

outputs of the

intervention were not

reflected in the results

framework in the CPS

since the project was not

anticipated during the CPS

formulation.

The mission notes budget

deficit was reduced from

2.7% in 2014 to 2.2% in

2015, compared to a

target of 2.4% for 2016.

Outcome: Improved fiscal sustainability. By 2016 [2014

baseline]:

Indicator 1: budget deficit reduced to 2.4% of GDP

from 2.7%.

Indicator 2: non-oil deficit reduced to 7.0% of GDP

from 7.8%.

Outcome: No progress/status reported

Output 1: Measures to promote non-oil and private

sector development implemented. By 2016:

Indicator 1: Contribution of MSME sector to GDP

increased to 21.0% of GDP from 20.0% in 2014.

Indicator 2: Labor productivity in agriculture increased

to at least T700,000 from T572,800 in 2014.

Indicator 3: Volume of nonresource exports by

enterprises that have received support under the

program increased to at least T25 billion from an

estimated T21.7 billion in 2015.

Output 2: Measures to increase employment

implemented. By 2016:

Indicator 1: Employment by MSMEs increased to at

least 3.1 million people from 2.9 million in 2014.

Indicator 2: Percentage of self-employed population in

the economically active population decreased to at least

27.1% from 28.0% in 2014a

Indicator 3: Unemployment for women decreased to at

least 5.5% from 5.9% in 2013.

Indicator 4: Number of jobs created under Nurly Zhol

increased to least 100,000 from 10,400 in 2014.

Output 3: Priority expenditures to sustain jobs and

social expenditure maintained. By 2016:

No progress/ status on outputs reported

Supplem

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Basic Project


CPSFR Validation

Assessment

Indicator: Budget expenditure for social expenditures in

percent of total expenditure is maintained or increased

from 37.5% of total expenditure in 2014b

TA 8414: Joint

Government of

Kazakhstan and

the Asian

Development

Bank Knowledge

and Experience

Exchange

Program, Phase 1

Approval Date:

29 Jul 13

Closing Date: 31

Dec 16

Amount ($

Million)

Approved: 0.5

Actual: na

EA/IA

EA: Ministry

of Economy

and Budget

Planning

IA: ministries

or agencies

responsible

for initiating

the specific

subprojects

Impact: Enhanced policy formulation capacity of the

government to support its medium- and long-term

development strategies.

Indicator: From 2017, government uses cutting-edge

knowledge and global best practices in formulating and

implementing its key development strategy or policy

measures.

Not assessed. The Knowledge and

Experience Exchange

Program (KEEP) was

established in 2013 to

facilitate a range of

strategic knowledge

options and global best

practices that will enable

Kazakhstan to respond to

emerging development

opportunities and

challenges.

KEEP introduced a capacity

development TA modality

that allowed for quick,

responsive and demand-

driven policy advisory

support. Response time

for timely knowledge

products shortened

considerably under KEEP.

The shift from reactive to

proactive knowledge

products was seen to help

streamline ADB

contributions.

KEEP Phase 1 is likely to be

effective. Phase 1 has

already achieved

considerable outputs,

which will contribute to

the expected outcome of

Outcome: Strengthened government capacity and

awareness of best practices in the selected areas.

Indicator: By July 2014, recommendations emanating

from the TA are reflected or referenced in national or

sector plans or policy actions.

Not assessed.

Output 1: Policy advisory reports submitted to the

government

Indicator 1: In 2013-2014, about four bilingual research

reports or policy notes completed.

Indicator 2: Two dissemination workshops to discuss

main research results or policy notes convened in 2013-

2014.

Output 2: Capacity building program completed.

Indicator: In 2013-2014, two to four workshops

conducted.

The following studies and activities have been

supported under KEEP.

(i) Study on Development of a Methodology for

Evaluation of Economic Costs of Road Traffic

Accidents and Calculation of Economic Costs of

Road Traffic Accidents in Kazakhstan.

Status: Completed.

(ii) Study on International Good Practices to

Assess Market Concentration and Competition.

Status: Completed. Currently the report is used

by the Committee for Regulation of Natural

Monopolies and Competition Protection.

(iii) Extended study on Diversification of

Kazakhstan Economy and New Sources of

Economic Growth on the basis of Asian

Countries Experience: Services Sector

(comprising several components).

Status: Implementation of the first three

components is at the final stage: (i) Role of the

14 Kazakhstan: C


trategy Final R

eview V


Basic Project


CPSFR Validation

Assessment

Services Sector in Kazakhstan Economy: An

Overview, (ii) Measurement of Services Sector:

Statistical Issues, and (iii) International

Experience on Services Sector Development.

Implementation of remaining components will

commence soon.

(iv) Study on Review of Advanced Asian

Countries Success Stories and Experience in

Economic Development.

Status: Completed

(v) Small and Medium-sized Enterprises

Financing Forum in Almaty, Kazakhstan.

Status: Completed

Effectiveness: Although delays in

implementation were encountered, the TA

achieved considerable outputs which would

contribute to the intended outcome of a

strengthened government capacity. TA would

likely be rated effective.

strengthened government

capacity. As of September

2015, the studies and

activities supported under

Phase 1 include (i)

evaluation and calculation

of economic costs of road

traffic accidents, (ii)

international good

practices to assess market

concentration and

competition, (iii)

diversification of the

Kazakhstan economy and

new sources of economic

growth with focus on the

services sector, (iv) review

of advanced Asian

countries success stories

and experience in

economic development to

support development of

government’s new

economic policy , and (v)

forum on SME financing.

Delays were encountered

in implementing Phase 1,

nonetheless, considerable

outputs were achieved

with 82% of the approved

amount disbursed.

The sustainability of on-

going TA cannot yet be

assessed for sustainability.

Nonetheless, there are

indications that

achievements so far by

Phase 1 are likely

sustainable because

Supplem

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ent of the Public S

ector Managem

ent 15

Basic Project


CPSFR Validation

Assessment

studies that were

undertaken will help

increase the level of

knowledge-based

policymaking of the

government into the near

future. However, copies of

completed studies cannot

be accessed by

stakeholders outside of

government or by the

general public as they are

considered government

internal documents.

Knowledge solutions from

KEEP will likely have a

development impact on

government’s efforts in

achieving a more

competitive and inclusive

economy, developing

human capital, and in

enhancing institutions and

governance. The demand-

driven nature of the

subprojects identified for

support ensures that the

outputs are according to

the needs and priorities of

the government. Also, the

cost-sharing arrangement

on a cash-basis under the

KEEP partnership is

innovative and reinforces

government’s ownership

of the project.

16 Kazakhstan: C


trategy Final R

eview V


Basic Project


CPSFR Validation

Assessment

TA 8933: Joint

Government of

Kazakhstan and

the Asian

Development

Bank Knowledge

and Experience

Exchange

Program, Phase 2

Approval Date:

24 Jul 15

Closing Date: 31

Mar 18

Amount ($

Million)

Approved: 1.0

Actual: na

EA/IA

EA: Ministry

of National

Economy

IA: ministries

or agencies

responsible

for initiating

the specific

subprojects

Impact: Aligned with the government’s objectives of

achieving a more competitive and inclusive economy,

developing human capital, and enhancing institutions

and governancec

This TA was not assessed in the CPSFR. In 2015, the KEEP Phase 2

was approved to further

support subprojects at

macro, sector, and

thematic areas that enable

or promote knowledge

solutions, capacity

development, and

exchange of best

practices.

Knowledge products and

policy advice through the

KEEP TA was effective.

Phase 2 is likely effective.

Phases 2 helped

government to meet

emerging policy, advisory

and capacity development

requirements, bringing

best global practices and

knowledge, and tailoring

them to Kazakhstan’s

context. It expanded areas

for support, such as public

management, audit and

finance. Response time for

timely knowledge

products shortened

considerably under KEEP.

The shift from reactive to

proactive knowledge

products is seen to help

streamline ADB’s

contributions. But KEEP

products were not widely

shared, as they should.

This limited dissemination

of knowledge and

learning, which could also

Outcome: Government capacity and awareness of best

practices in selected areas strengthened.

Indicator 1: By 2018, recommendations emanating

from the technical assistance are reflected or referenced

in national plans or policy actions (2015 baseline: 0).

Indicator 2: At least 70% of trained beneficiaries are

able to use acquired knowledge and skills in

formulating and implementing key development

strategy or policy measures by 2018 (2015 baseline: 0).

Output 1: Analytical reports serving as background

materials for the government’s policymaking

Indicator 1: About eight bilingual research reports

completed in 2015–2017 (2015 baseline: 0).

Indicator 2: Four dissemination workshops to discuss

main research results convened in 2015–2017 (2015

baseline: 0).

Output 2: Capacity development for government

officials.

Indicator: At least four capacity building and learning

events conducted in 2015–2017 (2015 baseline: 0).

This TA was not assessed in the CPSFR.

This TA was not assessed in the CPSFR.

Supplem

entary Linked Docum

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ent of the Public S

ector Managem

ent 17

Basic Project


CPSFR Validation

Assessment

benefit stakeholders

outside the government.

Development impact

rating is the same with

KEEP Phase 1.

TA 8676:

Managing for

Development

Results in the

Transport Sector

of Kazakhstan

Approval Date:

30 Jun 14

Closing Date: 30

Jun 16

Amount ($

Million)

Approved:

0.225

Actual: na

EA: Ministry of

Economy and

Budget Planning

Impact: Improved planning, budgeting and service

delivery in the transport sector in Kazakhstan.

Indicator: By 2018, transport sector results-based

performance targets integrated in the transport sector

development strategy and MTEF 2018-2020.

This TA was not assessed in the CPSFR. The small TA was to

strengthen road sector

management. It supported

the government’s priority

to develop an efficient

transport system and

results-based

management of the roads

subsector. It was in line

with the CPS objective to

support Kazakhstan’s

transport and logistics

system. The establishment

of a Management for

Development Results

framework was expected

to help improve, planning,

budgeting and service

delivery in the transport

sector.

The TA is likely effective

with already generated

outputs likely to

contribute to its expected

outcome of enhanced

institutional capacity of

the Ministry of Transport

and Communications for

Outcome: Enhanced institutional capacity of the MOTC

to manage the roads subsector using a results-based

approach.

Indicator: By December 2015, MfDR principles

integrated in MOTC’s annual operational plan.

Output 1: MfDR principles institutionalized and

operationalized in MOTC.

Indicator 1: A steering committee to oversee MfDR

institutionalization in roads subsector headed by the

Vice Minister of Transport and Communications

established by November 2014.

Indicator 2: MfDR implementation manual prepared by

June 2015.

Output 2: Roads subsector results-based framework

developed in line with national planning objectives.

Indicator: By March 2015, KPIs with the baselines and

medium-term targets developed and integrated in

MOTC’s annual operational plan, draft MTEF 2016-

2018, and annual budget plan.

18 Kazakhstan: C


trategy Final R

eview V


Basic Project


CPSFR Validation

Assessment

Output 3: M&E system developed to support results-

based planning, budgeting and monitoring in the roads

subsector.

Indicator 1: Real time information on delivery of

development results generated from M&E system by

September 2015.

Indicator 2: At least 50% of MOTC staff participated in

the training by December 2015.

managing the roads

subsector using a results-

based approach. It has

already delivered the

Managing for

Development Results

manual and

implementation manual

while training for

executing agency and

implementing agency staff

and stakeholders was

conducted. At financial

completion, TA

disbursements reached

89% of approved amount,

with considerable outputs

achieved.

ADB = Asian Development Bank, CPS = country partnership strategy, CPSFR = country partnership strategy final review, EA = executing agency, EIRR = economic internal rate of

return, GDP = gross domestic product, IA = implementing agency, IED = Independent Evaluation Department, KAZ = Kazakhstan, KEEP = Knowledge and Experience Exchange

Program, KPI = key performance indicator, M = million, MfDR = managing for development results, MOTC = Ministry of Transport and Communications, MSME = micro, small and

medium-sized enterprise, MTEF = medium-term expenditure framework, M&E = monitoring and evaluation, na = not applicable, SME = small and medium-sized enterprise, T =

tenge, TA = technical assistance, TCR = technical assistance completion report.

a Self-employed workers are unregistered self-employed workers, persons engaged in the production of goods for own consumption in private household plots, and unpaid family

enterprise workers, a significant portion of whom are not covered by social protection and support.

b Social expenditures: education; health care; social assistance and provision for social security and social aid; and culture, sport, tourism, and information.

c Government of Kazakhstan. 2014. Concept of the Republic of Kazakhstan's Entry into the Top 30 Developed Countries. Astana. No indicators were given in the design and monitoring

framework.

Sources: Report and Recommendation of the President, Periodic Financing Request Reports, Design and Monitoring Frameworks, Project Completion Reports, Draft Country

Partnership Strategy Final Review for Kazakhstan (2012-2016), ADB’s Loan Financial Information System, Technical Assistance Reports, Technical Assistance Completion Reports,

ADB’s Technical Assistance Information System, and IED’s database.

Supplem

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ent 3: Assessm

ent of the Public S

ector Managem

ent 19

PROCESSING AND DISBURSEMENT TIMELINES: ADB COUNTERCYCLICAL SUPPORT FACILITY

Project Title

Fact Finding

Mission Negotiation Date of Approval

Date of

Agreement

Date of

Effectiveness

Date of

Disbursement

Fact

Finding

Mission to

Approval

(In Months)

Approval to

Disburseme

nt

(In Months)

Original Countercyclical Support Facility Established Amid Global Financial Crisis

Countercyclical

Support

(Philippines)

17 Mar–1 Apr

2009

- The loan of $500

million was approved

on 24 Aug 2009; 7

months after the

government approved

a stimulus package in

Jan 2009.

27 Aug 2009 14 Sep 2009 14 Sep 2009 4.8 0.7

Countercyclical

Support Loan

(Kazakhstan)

6–12 Aug 2009 25 Aug 2009 The loan of $500


on 10 Sep 2009; 10

months after the

government approved

an anti-crisis plan in

Nov 2008.

14 Sep 2009 11 Nov 2009 12 Nov 2009

1 2.1

Countercyclical

Support

(Viet Nam)

13–20 Jul 2009

31 Aug 2009

The loan of $500


on 15 Sep 2009; 4

months after the

government approved

an expansionary

budget in Jun 2009.

20 Oct 2009

20 Nov 2009

10 Dec 2009

1.9 2.9

Countercyclical

Support

(Indonesia)

- 10 Sep 2009

The loan of $500


on 7 Oct 2009; 8

months after the

government rolled out

its stimulus package in

Feb 2009.

31 Dec 2009

29 Jan 2010

26 Mar 2010

0.9

(negotiatio

n –

approval)

5.7

Public

Expenditure

Support Facility

Program and

Countercyclical

Support Facility

Support

Program

(Bangladesh)

7–21 Jun 2009

27 Aug 2009

The loan of $500


on 13 Oct 2009; 4

months after the

government approved

an expansionary

budget in Jun 2009.

26 Oct 2009

6 Nov 2009 10 Nov 2009 3.8 0.9

20 Kazakhstan: C


trategy Final R

eview V


Project Title

Fact Finding

Mission Negotiation Date of Approval

Date of

Agreement

Date of

Effectiveness

Date of

Disbursement

Fact

Finding

Mission to

Approval

(In Months)

Approval to

Disburseme

nt

(In Months)

Crisis Recovery

Support

Program

(Tajikistan)

12–25 Mar 2009 8 Jun 2009 The grant of $40


on 6 Jul 2009.

7 Jul 2009 9 Jul 2009 10 Jul 2009 3.4 0.1

Mainstreamed Countercyclical Support Facility under 2011 Policy-Based Lending Policy

Precautionary

Financing

Facility

(Indonesia)

- - The loan of $500

million was

approved on 18 Jun

2012.

17 Jul 2012

(Original)

4 Dec 2015

(Amendment)

18 Sep 2012 9 Dec 2015 - NA1

Proposed Loan

Countercyclical

Support

(Kazakhstan)

23 Feb–5 Mar

2015

- The loan of $1

billion was

approved on 21 Aug

2015.

18 Nov 2015 29 Dec 2015 29 Dec 20152 5.6 4.3

3

CSF = countercyclical support facility, NA = not available, - = no data.

1 ADB prepared a loan in case Indonesia needs funds to contain itself from adverse impact of global financial crisis (See: http://jakartaglobe.id/archive/adb-readies-500-million-to-

help-indonesia-weather-global-financial-storm/). This loan was considered a stand-by loan (See: http://www.antaranews.com/en/news/84174/indonesia-provided-with-us5-billion-

stand-by-loans)

2 Head of State Nursultan Nazarbayev signed the law of Kazakhstan on ratification of the loan agreement between the Republic of Kazakhstan and ADB on 28 Dec 2015 (See:

http://ortcom.kz/en/news/kazakhstan-ratified-loan-agreement-for--1-billion-from-adb.8301).

3 The loan aims to fund fiscal deficit in 2016 (see link under footnote 2). To provide fiscal space during economic crisis, the loan will help boost existing programs of the government

in the infrastructure and social sectors. (See: http://www.publicfinanceinternational.org/news/2015/08/adb-approves-1bn-%E2%80%9Cfiscal-leeway%E2%80%9D-loan-kazakhstan)

Sources:

Various ADB project completion reports.

ADB. 2009. Enhancing ADB's Response to the Global Economic Crisis— Establishing the Countercyclical Support Facility. Policy Paper. Manila.

ADB. 2011. Countercyclical Support Facility: Macroeconomic and Fiscal Policy Updates, 2010. Annual Report. Manila.

ADB. 2011. Special Evaluation Study on Real-Time Evaluation of Asian Development Bank’s Response to the Global Economic Crisis of 2008–2009. Manila.

ADB. 2016. Review of ADB’s Lending Instruments for Crisis Response. Policy Paper. Manila.

http://jakartaglobe.id/archive/adb-readies-500-million-to-help-indonesia-weather-global-financial-storm/

http://jakartaglobe.id/archive/adb-readies-500-million-to-help-indonesia-weather-global-financial-storm/

http://www.antaranews.com/en/news/84174/indonesia-provided-with-us5-billion-stand-by-loans

http://www.antaranews.com/en/news/84174/indonesia-provided-with-us5-billion-stand-by-loans

http://ortcom.kz/en/news/kazakhstan-ratified-loan-agreement-for--1-billion-from-adb.8301


Supplem

entary Linked Docum

ent 3: Assessm

ent of the Public S

ector Managem

ent 21

PROCESSING AND IMPLEMENTATION TIMELINES: ADB TECHINCAL ASSISTANCE PROJECTS ON PSM

Document Title Concept

Clearance

Date of

Approval

Fielding of First

Consultant

Original

Closing

Date

Revised

Closing Date

Concept

Clearance to

Approval

(In Months)

Approval to

Fielding of

First

Consultant

(In Months)

TA/SSTA

Extension

(In

Months)

No. of

Times

Extended

8414: Joint

Government of

Kazakhstan and

the Asian

Development

Bank Knowledge

and Experience

Exchange

Program, Phase 1

5 Apr

2013

The TA

amount of

$500,000

was

approved on

29 Jul 2013.

28 Jan 2014 31 Jul 2014 31 Dec 2016 3.8 6.1 29 3

8933: Joint

Government of

Kazakhstan and

the Asian

Development

Bank Knowledge

and Experience

Exchange

Program, Phase 2

27 Apr

2015

The TA

amount of

$1 million

was

approved on

24 Jul 2015.

19 Nov 2015 31 Mar

2018

NA 2.9 3.9 NA NA

8676: Managing

for Development

Results in the

Transport Sector

of Kazakhstan

- The SSTA

amount of

$225,000

was

approved on

30 Jun 2014

27 Nov 2014 31 Dec

2015

30 Jun 2016 - 5 6 -

ADB Baseline (TA/SSTA) 1 2.5/2.1 4.1/3.7 6.9 1.1

CDTA = capacity development TA, na = not applicable, PATA = policy and advisory TA, SSTA = small scale technical assistance, TA = technical assistance, TCR = TA completion

report.

1 Baselines refer to the average: (i) processing time (concept clearance to approval), (ii) time it takes for the TA and SSTA to engage the first consultant after its approval (approval to

fielding of first consultant), (iii) additional months the TA/SSTA was extended, and (iv) number of times the TA/SSTA is extended. The averages are based on 37 CDTAs and PATAs

approved on 2013-2015 with available TCRs. Of which, 19 have data on the concept clearance date, 33 have data on fielding of first consultant, and 23 have data on the number of

extensions. Of the 37 CDTAs and PATAs, 22 are SSTAs and 15 are TAs.

Source: ADB’s Technical Assistance Information System (TAIS), ADB Technical Assistance Completion Reports.