OREANDA-NEWS. August 07, 2007. For the first half of 2007 the investment portfolio of the Kazyna Sustainable Development Fund grew to comprise 183 projects [approved for financing] totally worth USD 5,2 billion, with the share of funds allocated by institutes of development standing at USD 1,8 billion, reported the Official website http://en.government.kz.

This was announced by Mr. Kairat Kelimbetov, Kazyna Chairman of the Board, at a government’s sitting.

“For the first half of 2007 the investment portfolio grew by 46% as compared with 30% in the like period of 2006. From early this year major institutes of development (Bank for Kazakhstan Development (BKD); BKD-Leasing; Investment Fund of Kazakhstan; National Innovation Fund) have approved of  30 projects totally worth USD 1 billion, with the institutes’ share standing at USD 0,3 billion”, Mr. Kelimbetov said.

According to him, personnel of the institutes of development have been reduced by 28%. Independent directors out of international experts and Atameken [Business Association of Kazakhstan] have been introduced into the boards.

“Kazyna Investment portfolio grew from USD 1,2 billion as of Jan. 1, 2005 to USD 3,5 billion as of Jan. 1, 2007 and to USD 5,2 billion as of Jul. 1, 2007, which is a five-fold increase. By the start of next year we plan to bring the figure up to USD 6 billion and up to USD 10 billion by 2009”.

Kazyna suggests establishing a special company inside its structure to manage social enterprises.
“From experience of national companies and institutes of development it is clear that sooner or later centralized management of social enterprises through a special holding company will be a necessity. Therefore we are suggesting establishing [inside the Kazyna’s structure] a special company to introduce corporate governance standards and best practices”.

According to Mr. Kelimbetov, Kazyna has a clear vision of social enterprises as of “region-scaled investment companies actively interacting with regional investment funds established as parts of Kazyna”. “Social enterprises should invest primarily into land and subsurface that have to be evaluated strictly on market principles”.

Agriculture Minister A. Essimov asked Mr. Kelimbetov to comment on whether the existing social enterprises as they are hadn’t met the expectations. “From the findings made by Kazyna staff in the course of their visits to country regions, it is clear that social enterprises have an undoubted attractiveness for investors, especially when it comes to unoccupied land and subsoil assets. However, social enterprises haven’t adequate financial resources to be able to establish joint ventures or investment pools with private sector on fair terms”, Mr. Kelimbetov said.

“Through joining assets in the form of real estate and natural resources on the one side and financial resources on the other side we will be able to ensure even development of the country regions”.