Project Finance And PPP in Kazakhstan

1. INTRODUCTION AND LEGAL FRAMEWORK

1.1 Please describe the importance of the project finance industry in your jurisdiction.

Project finance in the strict sense of the term (ie, where the financing structure is based on the performance of the project itself) has not yet developed and is not tested so far in Kazakhstan. So-called 'project finance' transactions that took place in Kazakhstan so far, in fact, were either conventional bank loans (mostly by international financial institutions like the European Bank for Reconstruction and Development (EBRD) or the International Finance Corporation (IFC)) that have somehow benefited from government guarantees, security packages, direct budgetary investments or net private investments.