AMBASSADOR ORDWAY PURSUES PED, BILATERAL AGREEMENT

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 NNNN