The European Bank for Reconstruction and Development (EBRD) and the government of Kazakhstan have agreed an Enhanced Partnership Framework Arrangement (EPFA) to boost the resilience, modernisation, digitalisation and regional integration of the Kazakh economy, with the aim of accelerating its recovery following the COVID-19 pandemic.

The five-year agreement, set to remain in place until December 2025, was signed by EBRD head of Kazakhstan Agris Preimanis and Kazakh Minister of National Economy Aset Irgaliyev. The virtual signing ceremony was attended by Kazakh Prime Minister Askar Mamin and EBRD president Odile Renaud-Basso.

“This arrangement signals that Kazakhstan and the EBRD are ready to look beyond the current turmoil and are committed to continuing their successful cooperation in areas that are vital to the national economy. We look forward to working with our Kazakh counterparts on the reform agenda and on the investment projects we will identify together,” the EBRD president said.

The EPFA builds on a previous agreement signed in 2017, which focused on the creation of a green, gender-responsive and inclusive economy. The previous agreement brought investments into infrastructure, helped to improve the competitiveness of local firms and cemented Kazakhstan’s role as a regional leader in renewable energy in Central Asia.

The new EPFA seeks to develop the resilience of Kazakhstan’s economy by supporting the private sector and attracting foreign direct investment; promote a green, inclusive and gender-responsive economy and its enhanced digitalisation; support the country’s further integration into the regional and global economy through investments in infrastructure, energy and general industry projects; promote the decarbonisation of the energy sector and Kazakhstan’s alignment with the Paris Agreement by financing renewable generation projects and creating the necessary legal framework; develop modern transport and municipal infrastructure across Kazakhstan by introducing new operational models, including public-private partnerships (PPPs); enhance the role of Kazakhstan’s banking sector, including for the support of local small and medium-sized enterprises (SMEs); develop new financial products, including the promotion of sustainable bonds as instruments for green financing, in close cooperation with the Astana International Finance Centre; provide pre-privatisation support to selected state-owned enterprises.

To date, the EBRD has invested over $7.95bn in the Kazakh economy through 280 projects.