GOVERNMENT FAILS TO EXECUTE PRESIDENT'S INSTRUCTIONS: «KazAgroFinance» implemented no projects in Mangystau region

AKTAU. November 5. KAZINFORM - «KazAgroFinance» company has not implemented any project in Mangystau region. Officials explain the situation as the wrong direction of the program that needs to change its priorities.

"All of our programs to support agricultural development focuse on enhancement of medium and large businesses. We have put 5 projects to finance through ''KazAgroFinance" only 2 of them were approved in 1.5-2 years. While the projects were under consideration their design and estimate documentation's cost increased. The applicants became not able to implement the project. In addition, there were administrative barriers", said the head of the Agriculture Department of Mangystau region Kuzembay Ergaliyev.

"Caspian Agro'' Company" has developed a business plan and sent it to "KazAgroFinance" for approval and further funding. The project planned to build two new greenhouses on our territory. The joint stock company cited the following conditions: the credit line amounted to KZT 839 million, loan term for construction works as well as for working capital was 10 years. The loan was reported to be available only within a year, the schedule of principal repayment was on annual basis, in equal shares; after the expiry of the grace period of 2 years. During the period of negotiation natural gas, which held one of the first positions of the expenditure of the project, increased in price by 80 %, water by 45%. The project's payback period has grown from 7 years to 12 and it made the entire project unprofitable. Taking into account such conditions we had to give it up", said General Director of "Caspian Agro Company" Talant Nurazbayev.