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Astana’s Long-Awaited LRT Project Set to Launch Next Year

Zhenis Kassymbek, the Akim (governor) of Kazakhstan’s capital Astana, has announced that the city’s first light rail transit (LRT) line will launch by the end of next year, marking a significant milestone in a 13-year-long construction project fraught with delays and controversies. The LRT project, envisioned as a high-speed transport system running on elevated tracks to bypass traffic, began construction in 2011. Initially, the line was slated for completion by 2017 to coincide with the EXPO international exhibition. It was intended to connect the Astana-Nurly Zhol railway station with the capital’s airport. While the railway station opened on time, the LRT project was halted in 2013 due to high costs and concerns over its financial viability. The project was revived in 2015 when Astana’s Akimat signed a construction deal with a consortium of Chinese companies, China Railway International Group Limited and Beijing State-Owned Assets Management Co., Ltd. However, further delays occurred when funds — amounting to over 80 billion tenge ($200 million at the time) — were frozen in the accounts of the now-defunct Bank of Astana. Construction began with the installation of support pillars, but the Chinese contractors abandoned the project due to funding issues. In 2019, Kazakhstan’s investigative authorities intervened. Talgat Ardan, the former head of Astana LRT, and Kanat Sultanbekov, an ex-deputy mayor of Astana, were accused of embezzling nearly 30 billion tenge. This included inflating project costs and awarding overpriced contracts. Both were sentenced in absentia to seven years in prison in May 2023. Despite initial skepticism from President Kassym-Jomart Tokayev, who questioned the project’s ridership potential given its 22-kilometer length and route, the decision was made to proceed. Former Akim Altay Kulginov argued that dismantling the incomplete infrastructure would cost more than completing it. Under Kassymbek, construction has progressed. “The first LRT trains will arrive in August or September next year. We expect to have 15 trains operational by fall, with technical testing by the end of 2024 and full service in early 2026,” Kassymbek stated during a briefing. The elevated tracks are nearing completion, with rail-laying in progress. Signal installation is set to begin in spring. The Akimat anticipates the line will serve approximately 20,000 passengers daily. The fare for LRT rides has yet to be finalized. Kassymbek announced that the pricing would remain affordable. However, he stopped short of providing specifics. In 2017, the proposed fare was 300 tenge per ride, three times the cost of a bus ticket at that time. Current bus fares in Astana range from 110 tenge for regular routes to 250 tenge for express routes. Given the LRT’s total project cost of $1.88 billion, fares significantly higher than bus rates may be needed to achieve profitability. Despite this, the LRT could address pressing issues, such as Astana’s daily traffic jams. Currently, buses are the only public transport option in the city. “We aim to expand roads, increase bridges, and enhance public transport to encourage residents to switch from private vehicles,” Kassymbek said. He also suggested that Turkestan and...

Migrants Construction Industry Legislation

Kazakhstan’s Construction Sector Pushes for Easier Access to Migrant Labor

The Chairman of the Union of Builders of Kazakhstan (UBK), Talgat Yergaliyev, has called for simplifying the hiring process for foreign labor in Kazakhstan’s construction industry, citing a severe workforce shortage. “Today, our young people prefer office jobs, and no one wants to work in production. Year after year, the number of workers in the labor market is shrinking, and even government agencies are facing staffing shortages. In the construction industry, this problem is even more pronounced,” Yergaliyev said during a joint press conference with the National Chamber of Entrepreneurs of Kazakhstan, Atameken. “That’s why we propose following Russia’s example by attracting foreign labor to the construction sector.” However, Yergaliyev noted that Kazakhstan lacks mechanisms to support the large-scale hiring of migrant workers. By comparison, Russian construction companies pay 80,000 rubles ($790) annually for a patent to hire foreign workers, while a similar permit in Kazakhstan costs construction firms nearly double—700,000 KZT ($1,300) or more. Yergaliyev also acknowledged that low wages are a significant factor deterring Kazakhs from working in construction. “To retain Kazakhstani workers on construction sites today, they must be paid between $800 and $2,000. Otherwise, they will move to other sectors where the work is less demanding,” he explained. The labor shortage in Kazakhstan's construction industry is reaching critical levels. According to The Times of Central Asia, there are currently about 111,000 unfilled vacancies in the sector, and authorities project that this deficit could double by 2030. Despite this growing need, Kazakhstan’s Ministry of Labor and Social Protection reduced the foreign labor quota in November, potentially exacerbating the issue. Yergaliyev's proposal underscores the urgent need to address the labor shortfall while balancing fair wages for local workers with the costs of hiring migrant labor.

Industry economic Labour market Construction

Kazakhstan Faces Doubling of Construction Industry Labor Shortage by 2030

Kazakhstan's construction sector is grappling with a significant labor shortage, with approximately 111,000 positions currently unfilled. Prime Minister Olzhas Bektenov warned at a recent government meeting that this figure is expected to double by 2030, forecasting a deficit of over 200,000 skilled workers in the industry. Bektenov highlighted that the most affected roles include plasterers, painters, welders, masons, and concrete workers - essential positions for the sector’s operations. While the construction industry ranks third among sectors facing workforce shortages, it holds a critical place in Kazakhstan’s economy. According to government forecasts, education leads in expected vacancies, with 331,000 unfilled positions projected by 2030, followed by trade at 228,000. Despite ranking behind these sectors in terms of unmet demand, construction contributes the most to Kazakhstan’s GDP among the three, accounting for 5.6% of the country’s total economic output, according to the Ministry of Industry and Construction. This looming shortage poses challenges to sustaining growth in a sector vital to the nation’s development and economic stability.

Border disputes Infrastructure Development Bilateral Relations Construction

Kyrgyzstan Opens New Village for People Resettled from Barak Exclave

On November 15, Kyrgyzstan President Sadyr Japarov attended the opening of a new village, Jany-Barak, in the country’s southern Osh region. The village was constructed for Kyrgyz citizens resettled from the Barak exclave, previously Kyrgyzstan’s largest exclave, located in Uzbekistan’s Andijan region. For many years, the residents of the exclave experienced severe difficulties due to their partial isolation and the difficulty of traveling between the exclave and the Kyrgyz mainland. After signing a border delimitation agreement with Kyrgyzstan, Uzbekistan ceded a portion of its land to Kyrgyzstan in exchange for control of the Barak exclave. Construction of Jany-Barak (New Barak) was launched in May 2024 and is now complete. Speaking at the opening ceremony, Japarov emphasized that the construction of the new village marked a significant milestone. He highlighted that residents, who had relocated from the exclave, can now live and work in Kyrgyzstan, on their native land, in new homes, with renewed confidence in their future. Japarov highlighted the extensive work completed to establish infrastructure in the new village: 101 residential houses have been built, roads have been laid, electricity has been connected, and wells for clean drinking water have been drilled. The new village will have social amenities, including a school, a kindergarten, a park, a mosque, and a football (soccer) field. Plots have been allocated to residents for agricultural use.

International transport International Finance Europe Infrastructure Development ADB China Construction Economy

New Guzor to Beinau Highway Brings Uzbekistan Closer to Europe

Uzbekistan has completed a new 240-kilometer section of the A380 highway connecting the cities of Guzor, Bukhara, Nukus, and Beineu, passing through the Kungirot district of Karakalpakstan. The road, built with a cement-concrete coating, is a strategic road connecting Uzbekistan with Europe. The Asian Development Bank allocated $274.9 million to the construction, while Uzbekistan contributed $108.5 million. Turkish and Azerbaijani companies managed the first 120 kilometers of the road, with Chinese companies managing the rest. The highway aims to boost the capacity and quality of international and national highways, cutting road maintenance costs by 2.5 times. This new road will reduce travel time by 2.2 times, double transit traffic, cut fatal accidents by half, and contribute to regional GDP growth. It will also reduce Uzbekistan's international transport distance to 1,000 kilometers, lowering shipping costs by 25%. New trade and service centers are planned alongside the highway, initially creating 2,000 jobs and an additional 5,000 expected. This development is projected to boost Karakalpakstan’s annual transit and service revenue by $200 million and exports by at least $300 million.

Green Transport Infrastructure Development Japan Construction Russia

Ashgabat May Have a Metro System by 2035

Vladimir Petruk, managing director of Interbudmontazh Company, told the CIET-2024 international conference that a metro system may be built in Turkmenistan's capital Ashgabat by 2035. Petruk said that specialists from the Japanese company Sumitomo, the Japanese Subway Association, and the German consulting group K2 have studied Ashgabat's geological and seismic conditions. The study's results confirmed the possibility of building the subway using reinforced concrete structures. The Ashgabat metro plan calls for an environmentally friendly transportation solution. In the future, it could connect the capital with the “smart city” Arkadag and the settlements of Geokdepe and Anau. According to forecasts, construction could be completed by 2035. “Given the growing wealth and the increasing number of cars, the metro will become essential to solve the city's transportation problems,” Petruk emphasized, noting the successful experience of operating metros in seismically active regions. Consultations with the Ministry of Construction and Architecture of Turkmenistan are ongoing, and the UN mission plans to cooperate with the country to support the urban infrastructure development program. Turkmenistan currently does not have a metro. The idea of building a metro in Ashgabat has been discussed since 2008 when the city mayor's office attracted companies from St. Petersburg to the project. In 2014, then-President Gurbanguly Berdymuhamedov instructed the Ukrainian construction association Interbudmontazh to consider the possibility of realizing this project. In 2020, the company presented the Ashgabat metro construction project developed jointly with Sumitomo and K2. However, specific dates for the start of construction and commissioning of the metro in Ashgabat have not yet been announced.