LocationsExchanging the best practices: The Kyrgyz Republic adopts the partnership experience of the government of Kazakhstan and UNDP in implementing joint development projects based on government co-financing mechanism
October 18, 2024
From 16 to 17 October 2024, a Kyrgyz delegation led by the First Deputy Minister of Economy and Commerce of the Kyrgyz Republic, Mr. Tchoro Seyitov, visited Kazakhstan with the support of UNDP country offices to study Kazakhstan’s experience in implementing development projects based on government co-financing.
The aim of the exchange is to demonstrate the viability of the co-financing mechanism and to outline steps for a possible adaptation of the Kazakh legal framework in the Kyrgyz Republic. This visit will serve as a starting point for financial interaction between the UNDP and the Kyrgyz Government and lay the foundation for more effective engagement on development issues.
During the visit, the delegation familiarised itself with the legal framework for the implementation of such projects, as set out in the Budget Code of the Republic of Kazakhstan and in the Memorandum of Understanding between the Government of the Republic of Kazakhstan and UNDP on cooperation in a new phase of national development (approved by the Government of the Republic of Kazakhstan on 26 October 2009, No. 1681). The delegation also examined the direct implementation of such projects in Kazakhstan.
The programme of the visit included meetings with the Minister of Labour and Social Protection of the Population, Svetlana Zhakupova; the Vice Minister of Economy, Arman Kasenov, the Vice Minister of Foreign Affairs, Alibek Kuantyrov, the Vice Minister of Ecology and Natural Resources, Nurken Sharbiev, and the Deputy Chairman of the Agency of the Republic of Kazakhstan for Public Service Affairs under the President, Azamat Zholmanov. It should be noted that the current portfolio of joint projects includes transformative initiatives such as the ‘Digital Family Card’, the integrated regional development programme for four regions, the project to create an ecosystem for the reintroduction of the Turan tiger in Central Kazakhstan and reforms in the country's civil service.
During the visit, issues related to the implementation and nationalisation of best practises in green finance and the scaling up of tested innovative UNDP instruments for low carbon development were also discussed. UNDP's executive partners in Kazakhstan, such as the “Damu” Entrepreneurship Development Fund and the Green Finance Centre of the Astana International Financial Centre, were also involved in these discussions.
The meetings offered Kyrgyz colleagues the opportunity to discuss specific aspects of co-financing concrete projects and to develop practical recommendations for their application in Kyrgyzstan in support of the strategic national development agenda.
Today, Kazakhstan is a successful example of co-financing development projects, where the UNDP country programme is co-financed by the Kazakh government. On average, for every dollar of co-financing from the Kazakh government, UNDP has mobilized three dollars from other partners, including its own internal and external resources, vertical funds (Global Environment Facility, Green Climate Fund), international financial organizations, as well as the European Union, the governments of Japan and South Korea and other donors.
An important aspect of this mechanism is the comprehensive consultative process, which includes interaction with key government structures such as the Presidential Administration, the Ministry of National Economy, the Ministry of Finance, and the Ministry of Foreign Affairs, as well as clear alignment with the country’s development priorities. Flagship initiatives co-funded from the republican budget include regional programmes in the East Kazakhstan, Kyzylorda and Mangystau regions, the Astana Civil Service Hub, programmes for the social protection of people with disabilities and many others.
In view of declining donor resources for development in upper middle-income countries, including the Republic of Kazakhstan, the modality of co-financing development projects with state funds is intended to optimize the use of available resources for financing development for the benefit of the country.
The visit of the delegation from Kyrgyzstan to Kazakhstan represents an important step towards integrating successful practices of government cofinancing at the level of the Central Asian region, which will help the participating countries to support the strategic development agenda in a more systematic and adaptive way.
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