KAZAKHSTAN: DEPUTY PRIME MINISTER PLEDGES SUPPORT FOR

UNCLAS ASTANA 000268 SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB STATE PLEASE PASS USTDA FOR DAN STEIN E.O. 12958: N/A TAGS: PGOV PREL ECON EINV KZ SUBJECT: KAZAKHSTAN: DEPUTY PRIME MINISTER PLEDGES SUPPORT FOR PPEPI, COORDINATING COMMITTEE TO MEET IN MARCH ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: On February 11, Deputy Prime Minister Yerbol Orynbayev reiterated his government's commitment to the Public-Private Economic Partnership Initiative (PPEPI) in a meeting with the Ambassador and American Chamber of Commerce in Kazakhstan (AmCham) President Kenneth Mack and Executive Director Doris Bradbury. Orynbayev said that Prime Minister Karim Masimov had directly tasked him with overseeing the Kazakhstani government's participation in PPEPI. He reacted positively to AmCham's proposal for implementing PPEPI. Orynbayev named an official from the National Analytical Center (NAC),which is subordinate to the Prime Minister's Office, as the government's working-level contact for PPEPI activities. At Orynbayev's suggestion, the parties agreed that the PPEPI Coordinating Committee will convene its first meeting on March 11 in Astana. END SUMMARY. GOVERNMENT REITERATES SUPPORT FOR PPEPI ¶3. (SBU) At a February 11 meeting attended by representatives of the Ministries of Foreign Affairs, Economy and Budget Planning, and Industry and Trade, Deputy Prime Minister Yerbol Orynbayev reiterated to the Ambassador and AmCham President Ken Mack and Executive Director Doris Bradbury his government's strong support for the PPEPI. He noted that he had been tasked personally by Prime Minister Masimov with oversight of the Kazakhstani government's participation in PPEPI, and promised that he would make himself available to both private- and public-sector U.S. counterparts as necessary. POSITIVE REACTION TO AMCHAM'S PROPOSAL ¶4. (SBU) Ken Mack detailed AmCham's proposal for implementing PPEPI and explained that AmCham's funding request had been approved by USAID. (NOTE: According to the funding structure proposed by AmCham, a $205,000 grant from USAID through the Program for Economic Development -- which is co-financed by USAID and the Kazakhstani government -- will be augmented by $25,000 grants from each of the four private-sector partners, although all of that funding has not yet been fully pledged. The private-sector partners are AmCham, the U.S.-Kazakhstan Business Association, the Kazakhstani Forum of Entrepreneurs, and the "Atameken" National Economic Chamber of Kazakhstan. END NOTE.) Orynbayev welcomed AmCham's offer to administer PPEPI and AmCham's proposal regarding the establishment of the PPEPI working groups which will be responsible for developing policy recommendations. He and the other Kazakhstani officials also responded positively to the AmCham's proposed funding structure. WORKING-LEVEL CONTACT NAMED ¶5. (SBU) Orynbayev named Aiyana Manasova from the National Analytical Center (NAC) as the primary working-level contact from Kazakhstani government for PPEPI activities, reassuring Mack that her agency regularly deals with the IMF and World Bank and answers directly to the Prime Minister's Office. (NOTE: Bradbury, Mack, and Manasova made arrangements to meet separately in Almaty on February ¶13. END NOTE.) COORDINATING COMMITTEE TO MEET ¶6. (SBU) At Orybayev's suggestion, it was agreed that the PPEPI Coordinating Committee would hold its first meeting on March 11 in Astana. Orynbayev and Mack agreed that PPEPI will bring benefits to the greater business partnership between the United States and Kazakhstan. Orynbayev also suggested that the PPEPI partners consider collectively participating in a regional economic development conference to be held on October 15 in Almaty. HOAGLAND