ASTANA, Kazakhstan, January 29. A draft regulation has been developed for the examination of nationwide projects proposed for financing through the National Fund of Kazakhstan, Trend reports.
Kazakhstan’s government, the National Bank, and the Supreme Audit Chamber of Kazakhstan have established a mechanism for the mandatory evaluation and analysis of projects. The assessment process will consist of two key stages:
Strategic assessment – At the first stage, the Ministry of National Economy will evaluate projects for their alignment with strategic documents and national priorities, as well as their impact on the economy. This includes forecasts of contributions to GDP, increased budget revenues, and investment growth.
Comprehensive assessment – The second stage involves a deeper analysis. An expert group, including specialists from the National Bank and the Ministries of National Economy and Finance, will evaluate the financial, economic, and technical aspects of the projects. If necessary, independent experts may be engaged for an external review, with costs covered by the project initiator.
Additionally, to enhance project quality and sustainability, financing conditions will change. The share of funds allocated from the National Fund will not exceed 50 percent of the total required amount. The remaining sum must be co-financed through the project initiator’s own funds, shareholder contributions, second-tier banks, or international financial organizations.
The draft regulation introduces amendments to the Budget Code, clarifying the conditions for project evaluation and approval procedures.Adoption of the draft rules will tighten the conditions for the allocation of funds from the National Fund and will allow its resources to be spent on the implementation of projects with high gross added value.
The National Fund of the Republic of Kazakhstan is a sovereign wealth fund established by the Kazakh government in 2000 to optimize the management of oil revenues. Tax revenues from specific oil and gas corporations contribute to this fund. The Fund was established as a stabilizing mechanism to mitigate the adverse effects of fluctuating oil prices on the economy and as a savings fund for future generations to reserve a portion of oil income for their benefit. The government of Kazakhstan has revised the list of oil and gas businesses. The central bank of Kazakhstan and the Ministry of Finance of Kazakhstan give information regarding the fund's receipts and expenditures.
