Page 917 – The Times Of Central Asia

30 Dec 2023

Kazakhstan Local Politics, Local Politics, Kazakhstan

Kazakhstan’s Senate Speaker Highlights Major Laws Passed in 2023

June 28, 2024
By Times of Central Asia

Maulen Ashimbaev, the Speaker of the Senate, emphasized during the final plenary session of the chamber this year that the Parliament had passed a total of 92 laws in 2023, with significant implications for the political, economic, and social spheres of the country.

Ashimbaev stated that 2023 was a year of substantial change and believed it marked a period of genuine political modernization within the framework of constitutional reforms under the President’s leadership.

“This year, constitutional amendments relating to Parliament were implemented. As a result of these constitutional reforms, the role of the chambers of Parliament has been enhanced. The legislative procedure has evolved, with laws being considered using new methodologies,” said the Senate Speaker.

He recollected that at the start of 2023, the Head of State appointed 10 Senate deputies by decree, including five nominees from the ANC for the first time. Regular elections of Senate deputies also took place in the regions, leading to a significant refreshment of the upper house of Parliament.

“In January, the President issued a decree to dissolve the Mazhilis of Parliament; the Senate dutifully performed the functions of Parliament for two months,” Ashimbaev recalled. “In total, Parliament passed 92 laws this year, ensuring the country’s political stability and sustainable socio-economic development.”

The laws included constitutional legislation on judicial system issues, the prosecutor’s office activities, and administrative reform matters. The adoption of the new Social Code was particularly noteworthy. Additionally, several critical laws were enacted, such as those relating to the return of illicitly obtained assets to the state and public control.

“We approved the country’s main financial document last month – the Republican budget for 2024-2026,” concluded Maulen Ashimbaev.

On December 27, 2023, the Mazhilis held its final plenary meeting of the year. Erlan Koshanov, the Speaker of the chamber, also reviewed the deputies’ work over the year.

30 Dec 2023

Environment, Kazakhstan Environment, Justice, Kazakhstan Local Politics, Kazakhstan Justice, Local Politics, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Kazakhstan Featurees

Investing in the Future: Upgrading Kazakhstan’s Heating and Power Infrastructure

June 28, 2024
By Times of Central Asia

As nations around the globe grapple with the urgency of climate change and the need for sustainable development, one country that stands out is Kazakhstan. With its vast natural resources and strategic location, Kazakhstan has the potential to become a leader in renewable energy and sustainable infrastructure. However, upgrading Kazakhstan’s heating and power infrastructure is a significant undertaking that requires substantial time and financial investment.

The Challenge

Kazakhstan is no stranger to the harsh realities of tough winters. With temperatures often dropping below -30 degrees Celsius and even reaching lows of -52 degrees Celsius in some northern regions, the capacity and resilience of the country’s heating infrastructure is tested annually.

In a country where winter can last up to six months, maintaining a reliable heating supply isn’t just a matter of comfort—it’s a matter of survival. However, the extreme weather conditions put a considerable strain on Kazakhstan’s heating infrastructure and lead to several challenges.

Many of Kazakhstan’s heating systems, built during the Soviet era, are showing their age and inefficiency, necessitating an expensive overhaul. These outdated systems often break down, leading to extended periods without heat in the coldest months. A striking example was the 2022 incident in Ekibastuz, a city known for its harsh winters, where residents endured nearly three months without heat due to a power plant failure, which subsequently sparked a government-led corruption investigation.

Compounding these issues, Kazakhstan’s heating sector heavily relies on fossil fuels, primarily coal. This reliance not only exacerbates environmental pollution but also leads to energy inefficiency. Due to poor insulation in buildings and obsolete heating systems, much of the produced heat is lost, demanding more energy and resources to maintain warmth in homes and businesses.

The cost of heating is a significant expense for many Kazakh households, particularly those in rural areas where incomes are lower. The government provides subsidies to help offset these costs, but with energy prices rising globally, this is becoming an increasingly heavy burden on the national budget.

The financial aspect of such upgrades is undoubtedly substantial. One source estimates that upgrading transmission and distribution infrastructure alone for all of Central Asia could cost between $25 billion to $49 billion.

Additionally, infrastructure projects of this magnitude can take several years to over a decade to implement. For instance, Denmark began its transition to district heating systems and combined heat and power plants in the 1970s, and is still implementing improvements today. Similarly, Germany started its Energiewende (energy transition) initiative in 2000, with goals set for 2050.

What Steps Have Been Taken?

Efforts are made to upgrade aging systems, improve energy efficiency, and transition to more sustainable sources of energy. In 2023, Kazakhstan significantly upgraded its energy infrastructure, as reported by the Astana Times. The launch of the second Beineu-Zhanaozen gas pipeline and a new distribution pipeline in Mangystau Region improved gas supply, while the completion of the Makat-North Caucasus pipeline met regional demands. The western zone’s energy network was fortified with five new power transmission lines.

Renewable energy saw a boost with the operation of 16 facilities and a 5-year auction schedule. Agreements with foreign investors are set to build three wind power plants, and contracts were signed for the supply of natural uranium with companies from the UAE and China. Also, the government has launched a program to modernize the heat supply system in Astana, the capital city, aiming to reduce heat losses and improve the reliability of the heating supply.

Foreign finance and technology are essential to comprehensive development of the infrastructure. Kazakhstan’s President Kassym-Jomart Tokayev has been active in enhancing the country’s investment appeal. Following civil unrest in early 2022, Tokayev assured foreign investors that Kazakhstan would ensure a stable investment climate and honor its commitments.

By aligning Kazakhstan with Environmental, Social, and Corporate Governance (ESG) credentials, Tokayev has further boosted the country’s investment appeal. At the COP 28 climate summit in Dubai in late 2023, President Tokayev underscored the nation’s commitment to transitioning to a green economy. He pledged to reduce methane emissions, shift to renewable energy sources, and ensure water security and cooperation. His approach was commended by international leaders, including U.S. Special Envoy for Climate, John Kerry.

Kazakhstan is getting a treadmill of support internationally. The Asian Infrastructure Investment Bank (AIIB) has invested $36 million into the country’s wind power sector. SVEVIND Energy Group, a German-Swedish company, has promised a $50 billion investment for producing green hydrogen and it plans to build one of the world’s largest green hydrogen plants to start production by 2030. Several others – including the Climate Investment Funds, USAID, Plenitude (an Eni SpA subsidiary), and the Asian Development Bank with the EBRD – have invested in the country’s solar power industry.

As winter’s chill sets in, the outlook for brighter times may seem bleak. Yet, Kazakhstan is charting a course towards harnessing finance, technology, and trust that promises to benefit its people. With steadfast commitment and international support, the nation is poised to transform its energy landscape, ushering in not just warmer but also greener days ahead.

29 Dec 2023

Kazakhstan, Kazakhstan Business & Economy, Kazakhstan Featurees

Charting the Digital Future: Tokayev’s Billion-Dollar Vision

June 28, 2024
By Times of Central Asia

Kazakhstan, a nation rich in natural resources, is charting an ambitious course towards becoming a powerhouse in the Information Technology (IT) sector. The country’s President, Kassym-Jomart Tokayev, has recently announced plans to significantly increase investments in IT services, aiming to reach a staggering $1 billion by 2026. This strategic move underscores Kazakhstan’s commitment to leveraging technology as a key driver of economic growth and forms part of a broader strategy to diversify its economy away from traditional industries like oil and gas.

Investing in Digital Future

In a further push towards digitization and diversification, President Tokayev has announced an investment package worth $20 billion until 2025. This extensive funding is aimed at enhancing the diversification of the economy, with a significant portion allocated towards advancements in the IT sector.

To this end, a National Digital Investment Platform has been launched in Kazakhstan. This joint initiative between Kazakhstan, the Eurasian Development Bank, and National Information Technologies JSC2 aims to bolster the digital infrastructure and create a conducive environment for tech innovation and development.

Collaboration with Global Tech Giants

Recognizing the potential of Kazakhstan as a burgeoning hub for digital innovation, several global tech giants have committed to investing in the country in 2023.

Microsoft is working to position Kazakhstan as a center for digital innovation, while Amazon Web Services has entered into a collaboration to further integrate Kazakhstan’s QazTech platform. These partnerships are expected to bring valuable expertise and technological resources to Kazakhstan’s IT sector.

Furthermore, Elon Musk’s SpaceX company and its satellite-based internet service, Starlink, have undertaken significant investments in Kazakhstan. With total project investments estimated at around $10 billion, this collaboration represents a significant boost to Kazakhstan’s burgeoning IT sector.

General Electric, a multinational conglomerate, is also playing a role in Kazakhstan’s digital transformation, with plans to localize the production of medical equipment in the country.

Encouraging Domestic Investments

In addition to attracting foreign investments, President Tokayev has called for Kazakh elites to invest domestically, arguing that such investment serves national interests.

Kazakhstan’s active role within the United Nations General Assembly has been highlighted by President Tokayev. USAID Administrator Samantha Power announced additional investments in Central Asia at the C5+1 Regional Connectivity Ministerial held in Uzbekistan. While not explicitly stated, some of these investments might be directed towards IT-related projects in Kazakhstan.

All these initiatives underscore Kazakhstan’s ambitious vision for its IT sector, demonstrating the country’s commitment to leveraging technology as a key driver of economic growth. As Kazakhstan continues to attract both domestic and international investments, it is set to emerge as a significant player in the global IT landscape.

29 Dec 2023

Life & Culture, Local Politics, Kazakhstan, Kazakhstan Featurees

Kazakhstan Aligns with UN Practice, Lifts Ban on Taliban

June 28, 2024
By Times of Central Asia

Kazakhstan, located 1,566 km from the Afghanistan border, has announced the removal of the Taliban from its list of proscribed organizations. Aibek Smadiyarov, Spokesperson for the Kazakh Foreign Ministry, declared this policy shift, signifying a significant change in Kazakhstan’s approach towards the Taliban.

Smadiyarov stated that this decision aligns with Kazakhstan’s regular update of its national list of terrorist organizations, ensuring consistency with international standards and practices. The United Nations (UN) does not include the Taliban in the list of organizations recognized as terrorist by the UN Security Council. “These resolutions are binding, and we adhere to them,” affirmed Smadiyarov, underscoring Kazakhstan’s commitment to follow international norms set by the UN.

Originating in 1986-1987, the Taliban – a group labeled as a terrorist organization by numerous countries worldwide – ruled Afghanistan from 1996 to 2001 and returned to power in 2021 following the withdrawal of U.S. troops. The group is now striving to establish diplomatic relationships with various countries, including Kazakhstan.

European countries have varied responses towards the Taliban. While no European nation has officially recognized the Taliban government, some degree of interaction has been initiated due to humanitarian and regional security concerns. For instance, the European Union has engaged in dialogue with the Taliban to address immediate humanitarian issues and evacuation efforts. Similarly, countries like Germany and Norway have been part of diplomatic negotiations with the Taliban, each guided by their respective foreign policies and national security considerations.

The United States has also begun engaging with the Taliban albeit in a complex manner. Despite the Doha Agreement leading to the withdrawal of U.S. forces from Afghanistan and outlining commitments from both parties, it did not equate to formal recognition of the Taliban government. The U.S.’s approach, termed ‘pragmatic engagement’, emphasizes that Afghanistan’s future hinges on mutual engagement between the Taliban and the international community.

However, there remains global apprehension about the Taliban’s policies, particularly concerning women’s rights and education. The Taliban has been widely criticized for its harsh treatment of women and girls, including banning girls from receiving secondary education. Many international entities continue to condemn the Taliban’s actions and demand an end to human rights abuses.

Kazakhstan, being a secular nation, is naturally concerned about the oppressive ideology of the Taliban, especially its potential ramifications on women. The recent decision to remove the Taliban from its list of banned organizations highlights the complex geopolitical challenges Kazakhstan faces. It also demonstrates Kazakhstan’s commitment to aligning with the United Nations charter and the positions of its respective organs.

29 Dec 2023

Kazakhstan, Kazakhstan Business & Economy, Kazakhstan Featurees

Kazakhstan’s GDP Poised for a 36.8% Boost by 2028

June 28, 2024
By Times of Central Asia

Kazakhstan, the largest landlocked country in the world, has emerged as a regional economic powerhouse in Central Asia, according to the International Monetary Fund’s (IMF) World Economic Outlook. The report anticipates that by 2028, Kazakhstan’s GDP will surge to $354.7 billion, marking an impressive growth of 36.8%, or a rise of $95.4 billion, compared to its position in 2023.

This projection underscores the resilient performance of Kazakhstan’s economy, which has been steadily improving over the years. As of 2023, the country’s real GDP growth was reported at an annual rate of 4.6%, with total GDP standing at $259.29 billion. Moreover, despite global economic challenges, Kazakhstan’s economy grew by 5.1% in the first half of 2023, bolstered by robust exports and fiscal stimulus.

However, the IMF cautions that the economic growth is expected to moderate to 3.1 percent in 2024 due to an uncertain economic environment. Despite this prediction, the resilience showcased by Kazakhstan’s economy in the face of global disruptions suggests a strong capacity to navigate through potential economic hurdles.

The country’s economic success can be attributed to several factors. Primarily, Kazakhstan has effectively utilized its abundant natural resources, including significant oil reserves, to fuel its economic growth. Furthermore, the government’s commitment to implementing progressive economic policies and fostering a conducive environment for foreign investment has also significantly contributed to the country’s robust GDP growth. On December 4, President Tokayev signed a decree with measures to attract investment into Kazakhstan’s economy and accelerate economic growth. Tokayev’s agenda of creating a “Just and Fair” state has involved tackling corruption and stabilizing the country through sweeping democratic reforms.

Looking ahead, the predicted growth of Kazakhstan’s GDP to $354.7 billion by 2028 presents an optimistic outlook for the nation and the region. This projection underlines the potential of Kazakhstan’s economy and reaffirms its role as a key player in the economic landscape of Central Asia and the Commonwealth of Independent States.

While the journey towards this ambitious goal will undoubtedly present challenges, the progress made by Kazakhstan thus far provides a solid foundation for continued economic growth and prosperity.

29 Dec 2023

Environment, Tajikistan, Business & Economy, Tajikistan Features, Features, Tajikistan Environment

Tajikistan to Achieve Energy Independence and Become Green Country

June 27, 2024
By Times of Central Asia

In 2023, Tajikistan’s GDP increased by 8.3% compared to the previous year, and over the past seven years the country’s GDP has grown 1.5-fold while the national economy has developed at an average pace of 7.5%, the President of Tajikistan, Emomali Rahmon stated addressing parliament on December 28^th.

The President said that prioritizing the prevention of potential risks to the national economy, making efficient use of available resources, industrialization and creating jobs have been the main priorities of the government in recent years.

Among Tajikistan’s main concerns, the President said, are the establishment of a “green economy,” accelerating the economy’s digitization, developing human resources, raising the competitiveness of domestically produced goods, bolstering exports, and enhancing the standards of social services. Rahmon said that given the abundance of hydropower resources in Tajikistan, the high production capacity of “green energy” and its export, the Government is making confident steps towards achieving its strategic goal of energy independence.

In 2023, Tajikistan’s energy capacity exceeded 6,000 megawatts, and electricity production amounted 22 billion kilowatt-hours, which is 4.8 billion kilowatt-hours or 28% more than in 2017.

Rahmon said that Tajikistan will take urgent measures over the next seven years to increase energy exports up to 10 billion kilowatt-hours taking into account the implementation of CAЅA-1000 power transmission line project and re-connection to the Central Asia energy system. The country will also construct power plants using renewable energy sources and increase the “green energy” production capacity up to 1,000 megawatts by 2030.

With the implementation of these measures, the President said, by 2032 electricity production in the country will be entirely from renewable sources, that is, 100% will be provided by “green energy, and Tajikistan will truly become a green country,” President Rahmon said.