Kazakhstan has launched a National Project to modernize its energy and utility sectors for the period 2025-2029, with planned investments of 13 trillion tenge (over $24 billion). The initiative aims to upgrade existing infrastructure and construct new power generation, transmission, and water supply systems.
Deputy Prime Minister Kanat Bozumbayev announced the preliminary cost estimate during the “National Project for the Modernization of the Energy and Utility Sectors: Opportunities for Kazakh Business” conference. According to Bozumbayev, the funds will support the repair and construction of 86,000 kilometers of utility networks and add 7.3 GW in new generation capacity.
“Today, we have established the necessary regulatory framework to ensure long-term and affordable financing from financial institutions. We have now moved to the practical stage of the National Project. This year, pilot investments of around 144 billion tenge ($266 million) have been raised for 48 natural monopoly entities,” Bozumbayev stated.
Financing will be sourced both domestically and internationally. The Kazakhstan Housing Company has already purchased bonds worth 22.5 billion tenge ($41 million) from local administrations in the Karaganda, Pavlodar, West Kazakhstan, and North Kazakhstan regions. The Development Bank of Kazakhstan is also finalizing assessments for selected projects.
International partners are also involved. The European Bank for Reconstruction and Development is financing the construction of wastewater treatment facilities in the Aktobe region. Chinese companies are under consideration as potential partners for upgrading and building new coal-fired power plants. “There are certain restrictions on state-backed export financing from this country, but private companies have financial capabilities and experience operating in multiple countries,” Bozumbayev noted.
Authorities expect to finalize financing sources for 2026 by year-end, while procurement and design procedures are scheduled to begin. “Funding will be provided through the state budget and market instruments. The National Project will also apply new procurement mechanisms aligned with international practices, including EPC contracts and consortium-based construction,” Bozumbayev added.
Vice Minister of National Economy Assan Darbayev emphasized that reducing the wear and tear on heating, electricity, water supply, and wastewater networks to below 50% will require investments of 6.8 trillion tenge ($12.5 billion). The program includes 15 new generation projects worth 4.4 trillion tenge ($8 billion), along with 14 modernization projects for existing facilities valued at 1.8 trillion tenge ($3.3 billion). These measures are expected to reduce overall depreciation by 15%.
As previously reported by The Times of Central Asia, Kazakhstan has faced worsening electricity shortages in recent years. In 2024, the shortfall between supply and demand reached 2.4 billion kWh, up from 2.2 billion kWh in 2023.
