Kazakh Finance Minister told for what UAPF's funds are directed to private projects
As Alikhan Smailov underlines, the funds can lose value over inflation unless the Unified Accumulative Pension Fund's (UAPF) funds are invested.
Kazakh Finance Minister Alikhan Smailov told how the UAPF's funds would serve in the project on the construction of the Saryarka gas pipeline, BNews.kz correspondent reports.
An additional 85 billion tenge from the UAPF's funds will be allocated to construct the main pipeline 'Saryarka' by the Astana gas KMG project company. According to the Finance Minister, this is done to make the accumulated funds bring investment income.
"As for the pipeline, then there is a comprehensive solution on this matter. Funds are allocated by Samruk Kasyna, Baiterek, as well as loans from the Eurasian Development Bank and the Development Bank of Kazakhstan, are provided. The UAPF's funds are allocated at the market rates on a market-orientated basis. This is done to make the accumulated funds bring investment income. The funds can lose value over inflation unless the UAPF's funds are invested," said Smailov.
We note the new gas pipeline Saryarka will pass from south to north of Kazakhstan - from Kyzylorda through Zhezkazgan, Karaganda, Temirtau and up to Astana with the possible further gasification of Kokshetau and Petropavl. Its cost is 267.3 billion tenges.