09ASTANA734, KAZAKHSTAN: AMBASSADOR DISCUSSES PED EXTENSION,

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Reference ID Created Released Classification Origin
09ASTANA734 2009-04-28 11:35 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO7209
RR RUEHNEH
DE RUEHTA #0734 1181135
ZNY CCCCC ZZHZDF
R 281135Z APR 09
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 5281
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE 1544
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0921
RUEHUL/AMEMBASSY SEOUL 0608
RUEHKO/AMEMBASSY TOKYO 1624
RUCNDT/USMISSION USUN NEW YORK 2302
RUEHNO/USMISSION USNATO 2632
RHEBAAA/DEPT OF ENERGY WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RHEFAAA/DIA WASHDC
RHEHNSC/NSC WASHDC 1106
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC 1020
RHMFISS/CDR USCENTCOM MACDILL AFB FL

C O N F I D E N T I A L ASTANA 000734 
 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/ACE, F, ISN 
STATE PLEASE PASS TO USAID 
 
E.O. 12958: DECL: 04/28/2019 
TAGS: PREL PGOV ECON EAID KNNP KZ
SUBJECT: KAZAKHSTAN:  AMBASSADOR DISCUSSES PED EXTENSION, 
PPEPI, AND BN-350 FUNDING WITH ECONOMY MINISTER SULTANOV 
 
REF: A. (A) STATE 07756 
     B. (B) O,MARA-FAGIN APRIL 22 E-MAIL 
 
Classified By: Ambassador Richard E. Hoagland, Reasons 1.4 (b) and (d) 
 
1. (C) SUMMARY:  During an April 28 meeting, the Ambassador 
informed Minister of Economy and Budget Planning Bakhyt 
Sultanov about the U.S government's approval of a three-year 
extension for the Program for Economic Development (PED) and 
updated him on the progress of the U.S.-Kazakhstan 
Public-Private Economic Partnership Initiative (PPEPI). 
Sultanov welcomed the news on the PED's extension and PPEPI's 
progress.  The Ambassador also stressed the need for the 
Kazakhstani government to follow through on its funding 
commitments for our joint program to store spent fuel from 
Kazakhstan's BN-350 plutonium breeder reactor.  Sultanov 
responded that the necessary funding may be available from 
Kazakhstan's budget reserve.  END SUMMARY. 
 
2. (SBU) During an April 28 meeting, the Ambassador informed 
Minister of Economy and Budget Planning Bakhyt Sultanov that 
the U.S. government has agreed to extend the 
USAID-implemented Program for Economic Development (PED) for 
an additional three years, 2010-12.  The PED extension will 
allow for extended implementation of existing activities, as 
well as the development of new initiatives.  The Ambassador 
said that we look for continued cost-sharing for PED, with 
the Kazakhstani government bearing a greater percentage of 
PED expenses during the extension period. 
 
3. (SBU) The Ambassador also updated Sultanov on the 
Public-Private Economic Partnership Initiative (PPEPI), 
explaining that the five PPEPI working groups had convened 
for the first time during the past week.  The working groups 
will produce policy recommendations for the Kazakhstani 
government.  The Ambassador emphasized that if these policy 
recommendations are implemented, they should significantly 
improve Kazakhstan's investment climate. 
 
4. (SBU) Sultanov thanked the Ambassador for the good news on 
the PED extension and on PPEPI's progress, explaining that he 
was pleased about our continued bilateral cooperation on 
these economic issues.  He acknowledged that the ongoing 
economic crisis had raised many questions about the 
Kazakhstani business environment and said that "these 
programs will do a lot to help us." 
 
5. (C) Per refs A and B, the Ambassador also stressed the 
need for the Kazakhstani government to follow through on its 
funding commitments for our joint program to store spent fuel 
from Kazakhstan's BN-350 plutonium breeder reactor at the 
Baikal-1 site.  He passed Sultanov a non-paper on the issue 
and reminded him that the U.S. Department of Energy has 
already spent more than $100 million on the BN-350 spent fuel 
program.  The Ambassador requested that the Ministry of 
Economy and Budget Planning allocate $5 million for 2009 so 
that the project can stay on schedule.  Sultanov appeared 
somewhat surprised that the $5 million was needed for this 
year, but indicated that the money could be made available 
from budget reserve funds.  He said that his Ministry would 
need to receive a request and the necessary documentation 
from the Ministry of Energy and Mineral Resources (MEMR). 
The Ambassador thanked Sultanov and said the Embassy would 
follow up directly with MEMR. 
 
HOAGLAND

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