Almaty’s executive committee and IFC International Financial Corporation had an agreement on a long-term cooperation
22 february 2019
Almaty’s governor Bauyrzhan Baybek met with IFC Vice-President for Latin America, Europe and Central Asia, Georgina Baker. During the meeting, the parties had a cooperation agreement, under which an international financial corporation would provide advisory services connected with the modernization of the city’s infrastructure and the assignment of an international credit rating to a city.
The day before, during the reporting meeting with the population, the governor of Almaty told that last year the city managed to reach an economic growth rate of 3.9%, a faster growth rate of the population. That is, GRP per capita has grown. However, in the future, according to the governor, it is necessary to ensure already 5% economic growth.
“For this we need to increase the volume of investments, use the best world practices and technologies. That is why we are actively cooperating with international financial institutions such as the World Bank, IFC, EBRD, etc. The issue of obtaining a credit rating for Almaty is being addressed, which will make it easier to attract long-term loans to the city budget and direct investments. This will allow us to implement a number of important initiatives. For example, the program of modernization of dilapidated housing with an investment potential of 410 billions tenge for the construction of another 1.2 million square meters of housing, which will employ approximately 16 thousand people. Or the program of import substitution of the “economy of simple things”, developed on behalf of the Head of State. We can and should produce many types of goods that we are importing from abroad. The potential is huge. Imports to Almaty for 11 months last year amounted to 3.7 trillion. tenge Replacing even a tenth of this volume would have provided more than 50 thousand people with jobs, ”said Bauyrzhan Baybek.
During today's meeting with Georgina Baker, the head of the city noted that IFC has vast international experience in supporting agreements on the principle of public-private partnership and creating a clear picture of the city’s investment indicators. Large infrastructure projects are being implemented in Almaty, requiring long-term foreign investment. One of these, for example, is the construction of an LRT. Examination of IFC in PPP projects will increase the investment attractiveness of the project.
In turn, Georgina Baker stressed that the signing of this agreement is the beginning of a long-term strategic partnership and expressed confidence that it will help strengthen the reputation of Almaty as the leading city of Central Asia.
According to her, the IFC strategy in Kazakhstan is aimed at improving access to infrastructure, supporting diversification and competitiveness of the economy, strengthening the financial sector and SMEs. Along with investment, an international financial corporation, a member of the World Bank Group, is engaged in providing advisory services to government agencies and corporations in the development of PPP mechanisms.
It should be mentioned that today, Almaty remains a city of high business activity and a sustainable economy, creating a fifth of the country's GDP. If in 2014 there was a decrease in the volume of investments by 5%, then by the end of last year, the growth was already 10.5%. The total amount reached almost 732 billions tenge, incl. more than 100 billions tenge - foreign. Today, for 1 tenge of public investment accounts for almost 4 tenge of private. At the same time, the share of SMEs in the city’s economy increased to 42.4%, in taxes - to 64%.