Kazakhstan to invest over 800 bn tenge in energy and utilities modernization

Deputy Prime Minister Kanat Bozumbayev chaired a meeting of the project office to review progress on the initiative, preparations for next year’s projects, financing, digitalization, and the participation of domestic manufacturers.

Work has been completed at the first 14 facilities, while contractors have been selected for 220 of the 347 projects. Construction and equipment procurement are already underway on 77 projects worth 126 billion tenge, with another 29 currently in the tendering process.

The first 14 completed facilities are spread across seven regions, with total investment of 27.3 billion tenge and savings of around 975 million tenge achieved through competitive procurement. Seven projects were completed in Pavlodar region and two in West Kazakhstan region, with others completed in Astana, Shymkent, and Karaganda, North Kazakhstan, and Turkistan regions. The facilities are now being prepared for commissioning.

Progress is also being made in other regions, with 24 contracts worth 31 billion tenge signed and work already underway in Zhetysu region. In Karaganda region, contracts have been signed for 15 projects totaling 88.1 billion tenge.

However, construction has yet to begin on 67 projects involving 30 enterprises. Shymkent and the Abai, Ulytau, Almaty, Atyrau, and Turkistan regions were among those identified as lagging behind in implementation.

“If a region lacks the necessary expertise, share experience. Every project requires close attention. Emerging issues must be addressed individually, including through on-site visits,” Bozumbayev said.

Preparations for the 2027 projects were also discussed, with the necessary approvals already secured and tender procedures underway for 245 projects worth 300 billion tenge. Bozumbayev instructed officials to complete the procedures in advance to avoid delays into the next construction season.

The project office will now review implementation progress on a weekly basis, while the Ministry of National Economy is expected to provide a detailed regional analysis by October.

The meeting also addressed financing for small private utility companies with limited collateral. Bozumbayev instructed officials to explore potential funding sources and develop mechanisms to secure loans for such projects.

Another key focus was the installation of metering systems across utility infrastructure and the integration of industry data. Bozumbayev said this work is closely linked to the President’s objectives for advancing artificial intelligence and digitalization.

“Metering goes beyond the national project. The President has set a broader goal of advancing artificial intelligence and digitalization. As we modernize infrastructure and upgrade utility networks, we must also build an effective data system. Without reliable data, its transmission, and proper interpretation, the full-scale adoption of artificial intelligence is impossible,” Bozumbayev said.

Following the discussion, relevant government agencies were instructed to develop a unified framework for integrating information systems, set requirements for metering equipment, and prepare a metering plan covering regions, enterprises, and industries.

Bozumbayev also highlighted concerns over the quality of tender procedures after monitoring by the Committee for Regulation of Natural Monopolies and KazCenter for Housing and Utilities identified violations in several projects.

“I want to draw particular attention to the quality of tenders for selecting EPC contractors. Since July, the authorized body has received around 300 appeals, including 112 from EPC contractors that were upheld. This points to shortcomings in tender documentation and the work of contracting authorities. If any unlawful actions are uncovered during the tender process, I will personally take up the matter with law enforcement agencies,” Bozumbayev said.

The Ministry of National Economy and regional administrations were instructed to tighten oversight of tender procedures and, by October 1, 2026, develop measures to hold the heads of natural monopoly entities administratively liable for violations.

Bozumbayev also emphasized the need to maximize the involvement of domestic manufacturers, noting that investment in infrastructure modernization should also support Kazakhstan’s economy and generate demand for locally produced goods.

“We need to maximize the use of products made by Kazakh manufacturers. The funds allocated to the national project should support our economy and ensure that added value remains in Kazakhstan,” Bozumbayev said.

The Ministry of Industry and Construction, together with other relevant government agencies, was instructed to amend procurement and offtake contract regulations by October 15 and establish clear mechanisms for working with domestic manufacturers. All projects, including those planned for 2027, are also to be uploaded to the national project’s electronic platform.

Regional administrations and KazCenter for Housing and Utilities were instructed to strengthen oversight of the use of Kazakhstan-made products across project sites.

Concluding the meeting, Bozumbayev called for faster implementation while maintaining high quality standards.

“We need to accelerate the pace. The required volume of work must be completed this year without compromising quality. There is no time to lose,” Bozumbayev said.

Earlier, Kazakhstan invested around 600 billion tenge in oil and gas exploration over five years.