Kazakhstan to modernize nearly 90,000km of utility networks

Prime Minister Olzhas Bektenov chaired today a meeting of the Cabinet to discuss the course of fulfillment of the President’s task to modernize the country’s housing and utilities sector, Kazinform News Agency learned from primeminister.kz.

The National Project on Modernisation of Energy and Utilities Sectors is aimed at reducing risk of accidents and wear and tear of utility networks, improving the quality and safety of utilities. The government plans to implement 15 projects to introduce new capacities up to 5,259 MW, as well as to repair and reconstruct 14 existing facilities. As many as 86,000 kilometers of utility networks are expected to be modernized under the program.

Deputy Prime Minister Kanat Bozumbayev reported that the current problems in the energy and utilities sectors will be addressed through the increase in maintenance capacities across the country and with a focus on regions facing depreciation of networks over 65-70%.

As a result of the program’s implementation, wear and tear in heat supply sector is planned to be reduced from 53% to 40%, in electricity supply - from 62% to 45%, in water supply - from 39% to 34%, and in water disposal sector - from 54% to 40%. 6.8 trillion tenge will be allocated for these purposes by 2029. 

Prime Minister Olzhas Bektenov noted the importance of the national project for the housing and utilities sector of the country and the development of economy as a whole, taking into account the support of domestic producers and the increase in the local content share in government procurement.

The national project also aims at the support of domestic industry to reduce import dependence and create new jobs. 27 new production facilities are planned to be built to boost the development of related sectors of economy, including metallurgy, processing sector, etc.

“Ensuring uninterrupted operation of heat, energy and water supply sectors is a top priority issue for the Government. The implementation of the national project will enable us to carry out large-scale renovation work. All projects also provide for the creation of 3,500 jobs. We need to attract domestic businesses to this work as much as possible, and to purchase domestic goods and services,” Olzhas Bektenov emphasized.

The Ministry of National Economy as well as all concerned government agencies and organizations were set a task to ensure high-quality implementation of the national project after its approval. The Ministry of Industry and Construction was tasked to ensure full loading of the domestic enterprises manufacturing products for the housing and utilities sector.

Minister of Industry and Construction Kanat Sharlapaev, Vice Minister of Energy Alibek Zhamauov, and Chairman of the Committee for the Regulation of Natural Monopolies of the Ministry of National Economy Assan Darbaev outlined the plans for the national project’s implementation. Deputy Prime Minister Tamara Duissenova and Governor of the National Bank Timur Suleimenov also made remarks.

The meeting participants approved the national project’s approaches to the modernization of the country’s energy and utilities sector. 

Earlier, Prime Minister Olzhas Bektenov set  a number of tasks to the new  Minister of National Economy, Serik Zhumangarin.