Agricultural Post-Privatization Assistance Project (APL Phase #1)

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The Agricultural Post Privatization Assistance Project seeks to support the development of newly privatized farms and agro-enterprises in key agricultural areas of Kazakhstan and improve rural productivity and incomes. The program will include three phases. The first phase will focus on the legal framework, the institutions, and the procedures to support improved performance of rural enterprises and stimulate the flow of commercial bank financing to enterprises. The second phase will build on the first phase by expanding the coverage of the advisory services. The third phase will expand the program on a nation-wide basis. There are four components in this project. First, the rural advisory centers component will strengthen information for farm shareholders on shareholder rights, build local business support infrastructure to deliver advice and training on technical and commercial practices, and increase local capacity for the provision of advice. Second, the credit component will finance private farms and associated agri-businesses through participating financial institutions (PFIs). Third, the institutional development component will facilitate secured lending by developing procedures for using moveable property as collateral for bank lending; and creditor-led restructuring through capacity building in the PFI's on procedures for debt work-out, bankruptcy and liquidation. The fourth component will assist in the establishment of a Project Implementation Unit.