Kazakhstan to Secure $24 Billion Investment for Energy and Utilities Sector Modernization
Kazakhstan is set to attract over 13 trillion tenge (approximately US$24 billion) in investments dedicated to the repair and expansion of utility infrastructure, as well as the addition of 7.3 gigawatts of new energy generation capacity, Deputy Prime Minister Kanat Bozumbayev announced at a press conference on August 7, according to the Prime Minister’s press service.
The National Project for the Modernization of the Energy and Utilities Sectors, approved in December 2024 and enacted into law by President Kassym-Jomart Tokayev on July 17 (effective July 29), will span at least five years. Funding sources will include domestic and international financial institutions, commercial banks, the state budget, and shareholder contributions.
Currently, pilot initiatives are underway involving 35 natural monopoly entities. By the end of 2025, six entities are expected to reduce network deterioration to 40%. The planned investments for 2025 amount to approximately 150 billion tenge (US$278 million) targeting the repair of 8,500 kilometers of utility networks and the replacement of over 42,000 units of equipment.
For 2026, investment inflows are projected to reach nearly one trillion tenge (US$1.8 billion), with a focus on repairing 9,700 kilometers of networks and replacing 46,000 pieces of equipment. To bolster domestic industry, authorities have identified 2,786 product categories valued at 2.1 trillion tenge (US$3.8 billion) and established a pool of 220 local producers.
In line with presidential directives, Kazakhstan implemented a new Water Code effective June 10, supporting the modernization of over 6,000 kilometers of irrigation canals. A total of 962 kilometers are scheduled for commissioning in 2025, enabling irrigation across roughly 200,000 hectares.
Infrastructure projects nearing completion include the reconstruction and construction of reservoirs such as the Karakuys reservoir in the Turkistan Region. Additionally, inspections of 105 hydraulic structures and the launch of 10 water supply initiatives across six regions are planned.
Reservoir inflows this spring totaled 16.9 billion cubic meters, with approximately 5 billion cubic meters directed toward the Northern Aral Sea in 2024-2025, raising its volume to 24.4 billion cubic meters.
By the close of 2027, the total irrigated area utilizing water-saving technologies is projected to reach 912,000 hectares. Supportive measures include increasing infrastructure and equipment cost reimbursements from 50% to 80%, raising tariffs on excessive irrigation water consumption by 20%, and introducing differentiated subsidies linked to tariff levels.
The ongoing rural development programs Auyl Amanaty and Auyl – Yel Besigi remain active contributors to these efforts. In 2025, Auyl Amanaty received an allocation of 50 billion tenge (US$92.6 million), with an additional 450 billion tenge (US$834.1 million) earmarked for 2026-2028, expected to finance over 25,000 projects and generate upwards of 100,000 jobs.
Deputy Prime Minister Bozumbayev also highlighted recent activities by the Ministry of Emergency Situations, noting over 60,000 site inspections and the rescue of more than 10,000 individuals since January. Advanced forestry video surveillance systems now integrate with the ministry’s Situation Center, providing round-the-clock fire monitoring. Recent legislative amendments have strengthened fire and industrial safety protocols and introduced a fire insurance mechanism. Furthermore, investments in new emergency equipment and aircraft are ongoing.
Photo credit: primeminister.kz
