Information from “KazAgro” Holding about application of funds from the republican budget

As you know, recently on plenary meeting of the Mazhilis of the Parliament of the Republic of Kazakhstan during discussion of the execution of the republican budget for 2016, the comments were given regarding non-application of budgetary funds. For one of them related to assets application allocated for lending of agribusiness complex, “KazAgro” National management holding” submits the following information additionally.
          Actually, in 2016 for “KazAgro” Holding from the republican budget to increase the charter capital for implementation of the state policy to stimulate agribusiness complex development the funds were provided in 51.6 billion tenge.
         The assets were allocated within the second adjustment of the budget for 2016 with the condition of disbursement in the period of 2016-2017. The allocated funds were received by the Holding only in November 2016, and “KazAgro” will direct them to develop agricultural cooperation and ensuring effective employment of rural population (10.4 billion tenge), as well as to finance export-oriented investment projects to increase non-resource exports in priority industries (41.2 billion tenge).
At present, the Holding for the first direction approved 2563 applications for 8 billion tenge, and financed 2336 applications for 7.7 billion tenge.
        Under the second direction 30 applications were received to implement investment projects with total sum in 42.5 billion tenge, including 9 applications approved for 10.9 billion tenge. All of them passed the sectoral expertise of the Ministry of agriculture of the Republic of Kazakhstan. Till the end of 2017 the funds allocated from the republican budget will be disbursed.
Regarding the activities of the Kazakhstan-Hungarian investment private equity fund. The Fund was established in December 2015 as a joint project of “KazAgro” Holding and the Hungarian Export-Import Bank. Its activities are aimed at attraction of direct investments and financing of projects in Kazakhstan.
          During 2016 the managing company of the Fund examined about 100 projects in agricultural field of Kazakhstan and selected several of them. For the moment the Fund works at three investment projects planned for financing in 2017. We talk about establishment of glass house complex in Aktobe region, modernization of poultry plant in Kostanay region, development of dairy-commodity farm in Akmola region.
          It should be noted that the term of the Fund activities is 10 years with possibility of prolongation for 2 years. At that the investment period assuming projects financing is 5 years, that is, period till 2019. Total amount of the mentioned projects financing by the Holding through the Fund will be 4.5 billion tenge, and this will allow disburse the budget funds.