Today, our state supports domestic entrepreneurs in many areas, including the attraction of alternative financing from international institutions and financial organizations. “Damu” Entrepreneurship Development Fund is actively working with the UN Development Program in Kazakhstan to achieve this.

Financial support for the implementation of a mechanism to stimulate investment in creating energy efficient urban infrastructure in Kazakhstan is provided as part of a joint project of the Ministry of Investment and Development of the Republic of Kazakhstan and the United Nations

Development Program “Sustainable Cities for Low-Carbon Development in Kazakhstan”. To this end, UNDP, together with “Damu” Fund, has developed and is currently implementing a mechanism for subsidizing projects aimed at equipping cites and settlements with energy efficient infrastructure.

The mechanism for stimulating investments in energy efficient urban infrastructure in Kazakhstan is aimed at fulfilling the strategic tasks in the field of energy efficiency, sustainable development and climate change. The project assists the Government of the Republic of Kazakhstan in strengthening the sustainability of large and small cities in Kazakhstan, facilitating investments in highly efficient urban infrastructure, namely: heating and water supply, multi-apartment residential buildings, including rowhouse buildings that are not completely autonomous, street and interior lighting, city sewer and sewage systems, as well as other parts of urban infrastructure chosen by the PMC (Project Management Committee).

In the framework of the Program, the Fund is a financial partner for the payment of subsidies to loan applicants from a second-tier bank. The applicant's project must have the potential to save energy and reduce CO2 greenhouse gas emissions, and the loan amount should not exceed KZT 350 million. With an interest rate of up to 19%, "Damu" Fund pays 10% of subsidies, so the final interest rate for the borrower is no more than 9%. The subsidy period is up to 3 years with the possibility of extension up to 6 years. The executor of the urban low- carbon project may be the facility owner (buildings, engineering networks and systems, sources of energy production, etc.) with at least 2 years of experience in energy services, or a specialized service (energy service) company.

Under this program, 94 projects of Kazakhstan entrepreneurs have already been given loans amounting to KZT 17 billion; subsidy agreements have been signed for 32 projects (KZT 2 billion).

In addition to providing a grant, UNDP supports “Damu” Fund in obtaining accreditation from Green Climate Fund (GCF). The Green Climate Fund is the fund established in 2010 within the framework of the UNFCCC as an operating entity of the Financial Mechanism. This is a key element of long-term funding under the UNFCCC to achieve the Paris Agreement objectives.

The fund finances major projects in the field of reducing greenhouse gas emissions and adapting to climate change. It is estimated that the capitalization of the fund will amount to USD 100 billion annually. By now, the gcf has accumulated USD 10 billion. Through accreditation, “Damu” fund plans to get direct access to GCF resources, which will open up the possibility of cheap long-term “green” financing for Kazakhstani entrepreneurs.

In addition to that, the draft Agreement « Reducing the Risks of Investment in RES» between “Damu” Fund and the UNDP, which will be implemented in partnership with the Ministry of Energy of the Republic of Kazakhstan and is aimed at stimulating investments from private sector to renewable energy in Kazakhstan to achieve country-specific indicators for renewable energy, is currently at the approval stage.

These tools will be available for small and medium-sized businesses in Kazakhstan and contribute to the development of a “green” economy and minimize environmental impact. Information on existing tools to support entrepreneurs and mechanisms under development will be available at all “Damu” Fund offices. Promoting energy conservation and energy efficiency through such support measures will help build a "green" economy in Kazakhstan.

Within the framework of the joint project “sustainable cities for low-carbon development”, “Damu” fund in Kyzylorda region supported the project of SMP Kyzylorda LLP. SMP Kyzylorda LLP company, within the framework of PPP, concluded an agreement on the project for the modernization and maintenance of boiler rooms at 9 educational institutions in the city of Kyzylorda.

Having consulted the Kyzylorda branch of “Damu” fund, the company’s owner found out about the possibility of obtaining subsidies under the project. In order to implement the project, the borrower applied for funding to SB Sberbank JSC and in January 2019 received a loan of KZT 130 million (with 14% interest rate).

This funding is used to switch to economical, safe and affordable natural gas, which will ensure that the boiler installations of social infrastructure facilities comply with environmental safety requirements, owners and end consumers, and improve technical and operational status.

The project was supported by “Damu” fund with interest rate subsidies of up to 10%. Thanks to state support, the company was able to significantly reduce its loan repayment level to 4% and continue its successful entrepreneurial activity in the region.

The benefits are obvious: emissions of greenhouse gases and other pollutants reduced, new equipment for boiler houses received, jobs to carry out this green project created, and taxes to local budget received.