Kazakhstan to Attract $24 Billion for Energy and Utility Development

ASTANA – Kazakhstan plans to attract more than 13 trillion tenge (US$24 billion) in investments to repair and build 86,000 kilometers of utility networks and add 7.3 GW of new generation capacity, Deputy Prime Minister Kanat Bozumbayev said at an Aug. 7 press conference, reported the Prime Minister’s press service.

Photo credit: primeminister.kz

The National Project for the Modernization of the Energy and Utilities Sectors, which is designed to last at least five years, was approved in December 2024. President Kassym-Jomart Tokayev signed the corresponding law on July 17, which took effect on July 29. Funding will come from domestic and international financial institutions, banks, the state budget, and shareholder contributions.

Pilot projects are already underway involving 35 natural monopoly entities. By year-end, six of them are expected to reduce network wear to 40%. In 2025, approximately 150 billion tenge (US$278 million) will be invested in repairing 8,500 kilometers of networks and replacing over 42,000 pieces of equipment.

In 2026, the government plans to attract nearly one trillion tenge (US$1.8 billion) to repair 9,700 kilometers of networks and replace 46,000 units of equipment. To boost local content, authorities have identified 2,786 product items worth 2.1 trillion tenge (US$3.8 billion) and formed a pool of 220 domestic producers.

Following presidential instructions, Kazakhstan adopted a new Water Code, which took effect on June 10. Over 6,000 kilometers of canals are being modernized, with 962 kilometers scheduled for commissioning in 2025, which will enable the irrigation of approximately 200,000 hectares.

By year’s end, reconstruction and construction of several reservoirs, including the Karakuys reservoir in the Turkistan Region, will be completed. Authorities plan to inspect 105 hydraulic structures and launch 10 water supply projects in six regions.

This spring, reservoirs received 16.9 billion cubic meters of water. In 2024-2025, about 5 billion cubic meters were directed to the Northern Aral, raising its volume to 24.4 billion cubic meters.

By the end of 2027, the total irrigated area using water-saving technologies will reach 912,000 hectares. Measures include increasing cost reimbursement for infrastructure and equipment from 50% to 80%, raising tariffs for excessive irrigation water use by 20%, and introducing differentiated subsidies based on tariffs.

Meanwhile, the Auyl Amanaty and Auyl – Yel Besigi programs continue to support rural development. This year, 50 billion tenge (US$92.6 million) has been allocated under Auyl Amanaty, with a further 450 billion tenge (US$834.1 million) planned for 2026-2028. These funds are expected to finance over 25,000 projects and create more than 100,000 jobs.

Bozumbayev also outlined the Ministry of Emergency Situations’ recent work. Since January, the ministry has conducted over 60,000 site visits and saved more than 10,000 people. Forestry enterprise video surveillance systems are now linked to the ministry’s Situation Center for 24/7 fire monitoring. The government is purchasing new equipment and aircraft, and in June amended the law on civil defense to tighten fire and industrial safety rules and introduce a fire insurance mechanism.


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