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Tokayev Calls for Greater Role for Kazakhstani Businesses in Alatau City Development

Kazakhstani entrepreneurs must become full participants in the development of Alatau City, the country’s flagship smart city project, alongside foreign investors, Kazakhstan’s president Kassym-Jomart Tokayev said. He made the remarks during a meeting on the future of what is envisioned as Kazakhstan’s first fully digital city. In 2024, Tokayev signed a decree granting city status to Zhetygen village, located approximately 50 kilometers from Almaty, Kazakhstan’s largest city. Alatau City incorporates Zhetygen as well as the settlements of Enbek, Zhanaarna, and Kuigan, along with parts of Konaev and Talgar district in Almaty Region. The project is designed as a smart city comprising four distinct zones: the Gate District, a financial and business center; the Golden District, focused on education and healthcare; the Growing District, dedicated to industrial and logistics facilities; and the Green District, intended for recreation and entertainment. Speaking at the June 2 meeting in Almaty, Tokayev said more than 50 investment projects had already been identified for Alatau City, with a combined value of approximately $4 billion and the potential to create more than 50,000 jobs. He called for the portfolio to be expanded in the next one or two years by attracting investors to priority sectors. Domestic businesses, he said, must become “full participants in the city’s development rather than mere observers.” Tokayev cited Shenzhen and special legal regimes in Hainan, Dubai, and Singapore as examples of places where governments played an early role by building core infrastructure. That approach, he added, reduces risks for businesses, creates predictable conditions for private capital, and can generate a cycle in which public infrastructure investment attracts private capital and future tax revenues. The president warned that shifting the burden of initial infrastructure investment to the private sector can reduce a project’s appeal and lead to monopolistic structures with excessive tariffs. He instructed the government to ensure stable financing for Alatau City’s core infrastructure during the initial stage and said the city could be given additional borrowing limits and authority to undertake government borrowing until it develops a sustainable revenue base. Budget funds, he said, must be used strictly for investment purposes and linked to the city’s long-term development. Tokayev directed investment toward priority sectors including information technology, industry, transport and logistics, tourism, healthcare, and education. To create a favorable investment climate, he instructed officials to follow international standards, especially in areas where national regulations lag behind global practice. He identified Alatau City as a strategic platform for the rapid development of digital assets and a new financial architecture for Kazakhstan. Additionally, he called for the quick removal of excessive barriers in the sector and the introduction of new financial instruments. These would include a clear legal status for digital assets, recognition of crypto assets as property, and the use of the digital tenge within the new system. Tokayev also proposed a zero tax rate on digital asset transactions and capital gains generated within the jurisdiction, as well as faster work to tokenize real-sector assets, including real estate, infrastructure projects, and natural...

Alatau City

Kazakhstan Plans to Power New Alatau City With Gas and Renewable Energy

Kazakhstan plans to power the future megacity of Alatau City near Almaty through a combination of gas-fired generation and renewable sources, as authorities seek to address chronic electricity shortages in the country’s south while creating a low-carbon “smart city” model. Deputy Prime Minister Kanat Bozumbayev outlined the government’s energy strategy for the project during a briefing in Astana. According to him, Alatau City’s population could reach between 2.8 million and 3 million people by 2050, roughly equivalent to the current population of Almaty. “We expect that Alatau City will rely primarily on gas generation, given the area’s relatively low population density, along with renewable energy facilities,” Bozumbayev said. The new city is being developed on the site of the village of Zhetygen, approximately 50 kilometers from Almaty. The project will also encompass the settlements of Enbek, Zhanaarna and Kuigan, as well as parts of Konaev and the Talgar district in the Almaty Region. Authorities envision Alatau City as a future hub for technology companies, logistics and export-oriented industry. Under the current concept, the city will be divided into four functional districts: the financial and business-oriented Gate District, the educational and medical Golden District, the industrial Growing District, and the entertainment-focused Green District. The government expects rapid growth in both population and industrial activity to drive a sharp increase in electricity consumption. According to official estimates, electricity demand in Alatau City could reach 1.45 gigawatts by 2030 and rise further to 1.7 gigawatts by 2040. For comparison, Almaty’s electricity consumption in 2024 stood at approximately 982 megawatts. During the initial phase over the next three years, the city is expected to require around 50-100 megawatts of electricity. However, once industrial facilities become operational, demand could rise to between 500 and 1,000 megawatts, Bozumbayev said. Authorities have already prepared an infrastructure plan that includes the construction of transmission lines, substations, and new generating facilities. The government’s emphasis on gas-fired power generation is aimed at reducing southern Kazakhstan’s dependence on electricity transfers from northern Kazakhstan and neighboring countries. According to Bozumbayev, the launch of new power plants in Kyzylorda, Turkestan, and other southern regions should eventually create an electricity surplus in southern Kazakhstan, which currently remains energy deficient. The development of Alatau City is also part of Kazakhstan’s effort to modernize its power system and gradually increase the share of renewable energy in the national mix. In recent years, the country has expanded solar and wind power projects while remaining heavily dependent on coal-fired generation. Alongside energy infrastructure, authorities are promoting Alatau City as a testing ground for advanced transportation technologies. Bozumbayev said preliminary estimates suggest that air taxi rides in the city could cost around $1 per kilometer. “As competition develops in the market, prices could decrease,” the deputy prime minister said. He added that the testing of the air taxi system is expected to be completed by 2026, with commercial services potentially launching in 2027. However, Almaty Region Governor Marat Sultangaziev previously stated that full commercial operation of air taxi services...

Kazakhstan Launches Smart City Project in Taldykorgan

The Taldykorgan City Administration (akimat), Kazakh telecommunications company ASTEL, and French Internet of Things (IoT) solutions developer Actility have signed a memorandum of cooperation to implement a Smart City project in the town of Taldykorgan. The initiative, based on LoRaWAN technology, will establish a comprehensive urban monitoring system aimed at improving city management and residents’ quality of life. The agreement was signed in Paris during the 16th meeting of the Intergovernmental Commission on Economic Cooperation between Kazakhstan and France. The project involves deploying a LoRaWAN-based IoT network that will collect real-time data from environmental sensors across the city. This data will feed into a centralized monitoring platform, enabling municipal services to respond swiftly to environmental changes. The initiative also includes urban transport management and measures to enhance safety in schools. Taldykorgan Governor (akim) Ernat Bazil told The Times of Central Asia that the memorandum represents a key milestone in the city’s digital development strategy. According to Bazil, the project aims not only to introduce cutting-edge technologies but also to deliver tangible improvements for residents, such as better environmental oversight, more efficient public services, enhanced public transport, and safer educational institutions. Full implementation of the Smart City system is scheduled for 2026. ASTEL President Miras Kasymov said the LoRaWAN-based project in Taldykorgan will serve as a model for scalable smart city solutions across Kazakhstan, marking an important advancement in the country’s digital infrastructure. The project is supported by the French government’s FASEP program (Fonds d'Études et d'Aide au Secteur Privé) and the French Embassy in Kazakhstan. Actility, a global leader in IoT and LoRaWAN technologies, serves as the technical partner. The company’s platform is currently used in over 70 countries. Actility CEO Olivier Hersent noted that the Taldykorgan project aligns with FASEP’s goals of promoting innovation in urban safety, environmental monitoring, and sustainable development, particularly in small and mid-sized cities. French Ambassador to Kazakhstan Sylvain Guillegot said the initiative highlights France’s commitment to supporting digital transformation in Kazakhstan’s regions. He described the project as a concrete example of Franco-Kazakh collaboration in infrastructure modernization and sustainable development. The system is set to launch in 2026. If successful, it could be replicated in other cities throughout Kazakhstan. LoRaWAN (Long Range Wide Area Network) is an energy-efficient, cost-effective wireless communication protocol widely used for IoT deployments, especially in smart urban infrastructure projects.

smart city

Astana Leads 2024 Smart City Rankings in Kazakhstan

Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry (MDIIA) has released its latest evaluation of local governments' efforts to implement Smart City technologies. For 2024, the capital city, Astana, secured the top position. A Smart City integrates multiple information and communication technologies (ICT) and Internet of Things (IoT) solutions to manage urban assets, ranging from residential and commercial properties to transportation and public infrastructure. The core objective is to enhance the quality of life for residents through greater efficiency, safety, and connectivity. Kazakhstan began implementing its Smart City strategy in 2019, introducing a standardized benchmark for assessing the adoption of smart technologies by local authorities. The first national Smart City ranking, published in 2020, placed Almaty, Kazakhstan’s largest metropolis, firmly at the top. In subsequent years, Almaty and Astana alternated between first and second place. In 2023, however, Astana emerged as the clear leader. According to the MDIIA, alongside Astana, the cities of Almaty, Karaganda (Central Kazakhstan), Kostanay (northern Kazakhstan), and Ust-Kamenogorsk (eastern Kazakhstan) rounded out the top five for their effective implementation of urban digital technologies. “These cities have widely adopted systems for monitoring school performance, electronic fare collection, and real-time tracking of public transport,” the ministry reported. “Online registration for outpatient clinics is in place, and unified 109 contact centers handle public inquiries and complaints. The number of surveillance cameras has also increased, improving public safety.” As previously reported by The Times of Central Asia, Kazakh authorities are also planning to construct a new city, Alatau, near Almaty. The project is being designed from the ground up to meet all the criteria of a Smart City.

Kazakhstan Unveils Alatau: Investor-Led City with Crypto Ambitions

A major new urban development project is underway in Kazakhstan’s Almaty region, where a city named Alatau is being built with an emphasis on private investment and innovation. According to Zhaslan Madiyev, Minister of Digital Development, Innovation, and Aerospace Industry, the city is envisioned as a "magnet" for both domestic and international investors. Initially known as G4 City, the Alatau project was designed as a “smart city” comprising four interconnected districts: Gate District - A financial and business hub Golden District - A center for education and healthcare Growing District - An industrial and logistics zone Green District - An area for recreation and entertainment The development plan for Alatau aims to attract KZT 3.7 trillion (approx. $7.2 billion) in investment and expand the population from 52,000 to 2 million residents. The city will also be part of a special economic zone, with over 170 projects valued at KZT 12.5 trillion (around $24.4 billion) earmarked for implementation. Speaking at the Astana International Forum (AIF), Madiyev stated that the city could take one of two development paths: state-funded, as in the cases of Astana and Turkestan, or developed as a platform for private investment. “There are several options for how the city can be developed,” he said. “Alatau can be made a platform for investors. However, this requires an environment where the private sector can thrive. We need to design the entire landscape to support that in Alatau.” Madiyev also proposed key regulatory and infrastructural reforms to attract foreign investors. English should become the city’s main business language, cryptocurrency should be permitted for free circulation, and foreign nationals should be allowed to purchase real estate. These initiatives, he argued, would help position Alatau as a hub for education and tourism. “This city can become a magnet for young people who dream of living in places like Dubai,” Madiyev said. “We hope they will choose Alatau.”