OREANDA-NEWS. November 14, 2014. The Majilis has approved the draft law "On ratification of the Loan Agreement (the second phase of the irrigation and drainage systems improvement project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development (IBRD).

"The given project covers irrigated lands up to 113,000 ha in the Almaty, Zhambyl, South Kazakhstan, Kyzylorda regions," Kazakh Agriculture Minister Asylzhan Mamytbekov said representing the bill.

The project worth USD 339,5 million is co-financed by the IBRD loan funds and national budget. Realization of the project will come to an end December 31, 2021.

Kazakhstan requires investments in development of irrigation and drainage systems in the amount of one trillion tenge.

According to A.Mamytbekov, farmers on such lands are forced to sow more frugal culture.

The first phase of the project to improve the irrigation and drainage loan for USD 80 million was fully repaid at the expense of the republican budget.

During the first phase of the project in the late 1990s, farmers were not able to recover the costs for the project. Since at that time there was no holding "KazAgro", "Kazagrofinance" was just being created, private leasing companies were not able to finance agriculture.

According to Agriculture Minister, at the moment, farmers have to bear 30 per cent costs of the project, and 70 percent - the state.