GENERAL INFORMATION
A government support mechanism providing for the subsidization of a portion of the interest rate on loans attracted by natural monopoly entities for the implementation of projects aimed at the modernization and construction of energy and utility infrastructure within the framework of the National Project for the Modernization of the Energy and Utility Sectors.
Who is eligible for the subsidy?
Natural monopoly entities implementing projects within the framework of the National Project and financed by second-tier banks and/or international financial organizations and/or «Development Bank of Kazakhstan» JSC.
What is the subsidy provided for?
Subsidies are provided to reduce the interest rates on loans granted to borrowers by second-tier banks and/or international financial organizations and/or «Development Bank of Kazakhstan» JSC, as well as its affiliated leasing company, as determined in accordance with the constituent documents of «Development Bank of Kazakhstan» JSC.
Key terms and conditions:
• Loan currency — tenge;
• Loan interest rate — an interest rate not exceeding the base rate of the National Bank of the Republic of Kazakhstan by more than 4 (four) percentage points (for a floating interest rate), effective on the date of the subsidy decision, or the TONIA (Tenge Over Night Index Average) rate by more than 4 (four) percentage points (for a floating interest rate), effective on the date of the subsidy decision;
• Subsidized portion of the interest rate — the portion of the loan interest rate exceeding 10% per annum is subsidized from budgetary funds. The borrower pays the interest rate of up to and including 10% per annum;
• Subsidization period — up to 20 years inclusive. If several subsidy agreements are concluded for loans within the same project, the total subsidization period is established from the date of signing of the first loan subsidy agreement by the financial agent;
• Subsidization is provided for loans issued by second-tier banks, «Development Bank of Kazakhstan» JSC and international financial organizations;
• The total amount of subsidies may not exceed the principal amount of the loan;
• Subsidies are provided for the payment of interest on loans, the proceeds of which are used exclusively to finance construction and installation works, project management costs, architectural and technical supervision services, and other costs предусмотренные by the project design and estimate documentation.
How to apply?
The application is submitted electronically through the MEUS platform with the complete package of required documents attached.
Application review period by «Kazakhstan Housing Company» JSC
• Document completeness check — up to 3 business days;
• Review of the application for compliance with the requirements — up to 10 business days.
Documents to be attached to the application
1. Application form for obtaining the subsidy;
2. Description of the project being implemented (prepared in free form, with supporting construction permits, business plan, sale and purchase agreements, etc. attached);
3. Positive conclusion of «Kazakhstan Center for Modernization and Development of Housing and Utilities» JSC;
4. Positive conclusion regarding the tariff increase issued by the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan;
5. Decision of «National Investment Holding «Baiterek» JSC determining the financing mechanism;
6. Letter from the second-tier bank (international financial organization, Development Bank of Kazakhstan) confirming a positive decision on the possibility of providing a loan for the implementation of the project, accompanied by an extract from the minutes of the relevant decision;
7. Design and estimate documentation (in electronic PDF (Portable Document Format) format and KENML (KenLM Language Model Data) format, together with a positive conclusion of the comprehensive non-departmental expert review, where applicable to construction projects);
8. Information on the project/facility (presentations, technical and economic parameters of the project, socio-economic impact of the project implementation, etc.), including in electronic format.*
