Kazakhstan is stepping up the modernization of its energy and utility infrastructure, advancing hundreds of projects designed to renew ageing networks, improve service reliability and introduce more sophisticated digital management across the sector. Under the National Project for the Modernization of the Energy and Utilities Sector, 347 projects worth a combined 839 billion tenge have been formed. Contractors have already been selected for 220 projects, while construction and equipment procurement are underway on 77 projects valued at around 126 billion tenge. Deputy Prime Minister Kanat Bozumbayev reviewed progress at a meeting of the project office, where officials also examined financing, preparations for the next group of projects, digitalization and opportunities to increase the participation of domestic manufacturers.

energy-and-utility-modernization-2.png

energy-and-utility-modernization-3.webp

First Infrastructure Projects Reach Completion

The modernization programme is beginning to deliver completed infrastructure across Kazakhstan. Work has been completed at the first 14 facilities across seven regions, representing investment of approximately 27.3 billion tenge. Competitive procurement resulted in savings of around 975 million tenge. Seven of the completed projects are located in Pavlodar Region and two in West Kazakhstan Region, with additional facilities in Astana, Shymkent, Karaganda, North Kazakhstan and Turkistan regions. Progress is also being made elsewhere. Zhetysu Region has signed 24 contracts worth around 31 billion tenge, while Karaganda Region has contracts covering 15 projects with a combined value of approximately 88.1 billion tenge. However, implementation remains uneven. Construction has yet to begin on 67 projects involving 30 enterprises, prompting the government to call for closer supervision and greater exchange of technical expertise between regions.

energy-and-utility-modernization-4.jpg

New Projects Enter the Pipeline

Kazakhstan is simultaneously preparing the next phase of infrastructure investment. Approval procedures have been completed for 245 upcoming projects valued at approximately 300 billion tenge, with procurement processes already underway. Authorities have been instructed to complete preparations early enough to prevent administrative procedures from delaying construction. The wider national programme has a long-term objective of reducing infrastructure wear to 40% and cutting accident rates by 20%. Modernization covers essential systems including electricity, heating, water supply and wastewater infrastructure.

energy-and-utility-modernization-5.png

energy-and-utility-modernization-6.jpg

energy-and-utility-modernization-7.jpg

Digital Metering Becomes a Key Priority

Digitalization is emerging as another major pillar of the infrastructure programme. Bozumbayev stressed that installing modern metering equipment should form part of a wider effort to establish reliable systems for collecting, transmitting and analysing utility data. This is particularly significant as Kazakhstan expands the use of artificial intelligence and digital technologies across its economy. Effective AI systems depend heavily on consistent and reliable data, making modern utility metering an important foundation for future digital management. The government has previously outlined plans for a multi-level data architecture connecting consumers and utility companies with platforms including EnergyTech, WaterTech and Smart Turmys. Government agencies have now been tasked with developing common standards for integrating information systems and preparing detailed plans for the deployment of metering equipment.

energy-and-utility-modernization-8.jpg

Stronger Oversight of Procurement

Procurement quality has also come under closer scrutiny. Monitoring identified shortcomings in several tender procedures for selecting engineering, procurement and construction contractors. According to the government, around 300 appeals have been received, including 112 complaints from EPC contractors that were upheld. Authorities have consequently been instructed to strengthen oversight and improve the quality of tender documentation. The government wants faster infrastructure development, but officials have emphasised that acceleration should not come at the expense of construction standards or transparent procurement.

energy-and-utility-modernization-9.jpg

Domestic Manufacturers Gain a Larger Role

Kazakhstan also intends to use its infrastructure investment programme to stimulate domestic manufacturing. Bozumbayev called for greater use of locally produced equipment and materials, arguing that money invested in utility modernization should simultaneously generate demand within Kazakhstan’s economy. The government has previously identified thousands of product categories required for infrastructure modernization and established a pool of domestic manufacturers capable of supplying equipment and materials. Authorities are therefore working on procurement and offtake mechanisms intended to connect infrastructure operators and EPC contractors more closely with Kazakhstan-based producers.

energy-and-utility-modernization-10.jpg

Modernization Targets More Reliable Public Services

Kazakhstan’s infrastructure programme is ultimately aimed at addressing ageing electricity, heating, water and wastewater networks while reducing failures and improving the reliability of essential public services. When the project office was established, the government reported that infrastructure depreciation among 87 monopoly enterprises in these sectors ranged from 65% to 100%, illustrating the scale of the modernization challenge. By combining infrastructure investment with digital monitoring, tighter procurement controls and stronger domestic manufacturing participation, Kazakhstan is seeking to transform the programme into a broader driver of regional development, industrial activity and more reliable utility services.

energy-and-utility-modernization-11.jpg