Republic of Kazakhstan: Country Partnership Strategy 68562 FY2012-2017 and Republic of Kazakhstan: East-West Roads Project (Almaty-Khorgos Section): Western Europe-Western China International Transit Corridor (Carec 1b) Meeting of the Executive Directors May 1, 2012 Chair’s Summing Up The Executive Directors considered the joint IBRD/IFC/MIGA Country Partnership Strategy for Kazakhstan for FY2012-2017 (R2012-0080; IFC/R2012-0109). Directors commended the Kazakh authorities for the progress made in maintaining macro-stability in the face of global financial shocks and creating the fiscal basis for responsible macro-management of oil- related earnings. Directors welcomed the shift to a programmatic approach with tighter linkages between knowledge, lending or guarantee operations and technical assistance. Directors expressed broad support for the CPS, noting its strong alignment with the Government’s objectives of accelerating growth; sharpening competitiveness and expanding employment through investment climate improvements and bolstering human capital; improving governance through rule of law and judicial reforms as well as sound public financial management; and building infrastructure and increasing energy efficiency. They acknowledged the need for a rapid and bold resolution of weaknesses in the banking sector to ensure macro-stability and the challenge of the growing volume of credit to support private market-led growth. They also urged a strong focus on trade issues. Directors noted that implementation remains a key challenge, particularly given governance and capacity constraints, and welcomed the emphasis on institutional strengthening and implementation support. They urged a sharper focus on improving governance, fighting corruption, and raising efficiency in public investment and procurement practices. Directors stressed the importance of remaining resolute in tackling long-term challenges in energy efficiency, environmental standards and diversification. They highlighted the need for greater attention to be paid to voice and accountability through nurturing civil society and social inclusion policies. Finally, Directors encouraged the authorities to embark upon integration in the international aid architecture in line with OECD-DAC principles. Directors also noted the integration of the World Bank Group’s work in infrastructure, public-private partnerships, energy efficiency and financial markets. Summary of Discussion With respect to the East-West Roads Project (Almaty-Khorgos Section): Western Europe-Western China International Transit Corridor (CAREC 1b), Executive Directors approved the loan in the amount of US$1,068 million on the payment terms and conditions set out in the President’s Memorandum (R2012- 0079). Directors expressed support for the objectives of the project, which would increase transport efficiency and modernize highway management along the Western Europe-Western China Road Corridor. Directors noted that the environmental and social impacts, although expected to be limited, should be monitored. The need to improve efficiency of the customs service was highlighted. Directors stressed the importance of risk mitigation during implementation. With regard to consultations, Directors welcomed the efforts being made to involve local stakeholders and encouraged close collaboration with development partners.  This summary is not an approved record.