UNCLAS ALMATY 000934

SIPDIS


DEPARTMENT FOR EUR/CACEN JMUDGE, EUR/ACE JMCKANE

E.O. 12958: N/A
TAGS: ECON EFIN PGOV KZ ECONOMIC
SUBJECT: AMBASSADOR ORDWAY PURSUES PED, BILATERAL AGREEMENT
WITH MINISTER KELIMBETOV

Reftel: Almaty XXXX


1. Ambassador Ordway met with Kazakhstani Minister of
Economy and Budget Planning Kairat Kelimbetov on March 3 in
Astana. The Ambassador urged Kelimbetov to take action to
speed the ratification of the U.S.-Kazakhstan Bilateral
Assistance Agreement and to ensure that the GOK commits to a
cost-sharing arrangement to finance USAID's Program for
Economic Development (PED.)


2. Kelimbetov assured the Ambassador that his Ministry is
committed to seeing the ratification process through.
Although he stated that he needs the implementing memorandum
from the Ministry of Finance to proceed (see Reftel), he
said that the Ministry would shepherd the agreement through
Parliament. In this case, the Prime Minister's office will
have overall control of the effort because of its
implications for the bilateral relationship, but Kelimbetov
pledged his full support.


3. Kelimbetov also stated that his Ministry plans to
include an appropriation for the PED in the 2006 budget, and
that the budgetary commission would ensure that it is
included when it does its work in March and April of this
year. He added that PED is perfectly consistent with
President Nazarbayev's stated goal of accelerating the
development of small and medium enterprise; and highlighted
Kazakhstan's demonstrated willingness to co-finance
assistance programs, as it has with the World Bank.

Ordway


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