Implementation of National Project on energy and utilities sector modernisation to significantly reduce wear and tear of infrastructure, Kazakh PM

Prime Minister Olzhas Bektenov held a meeting on the implementation of the Head of State's instruction to modernise the country's housing and communal services, El.kz cites primeminister.kz.

Modernisation of energy and communal sectors’ national project is aimed at reducing accidents and wear and tear of engineering networks, improving the quality and reliability of public services. For power generation, it is planned to implement 15 projects to commission new capacities totalling up to 5,259 MW, as well as repair and reconstruction of 14 existing facilities. By the end of the work, capacity is forecasted to increase by 7.3 GW, while the renovation of existing assets will lead to an average 15% reduction in depreciation. In the course of modernisation it is planned to cover 86 thousand km of utility networks.

Deputy Prime Minister Kanat Bozumbayev reported that urgent problems in the energy and utilities sectors will be addressed by increasing repair capacity across the country and with a focus on regions where the wear and tear of networks exceeds 65-70%.

There are plans to reduce wear and tear: in heat supply from 53% to 40%, in electricity supply from 62% to 45%, in water supply from 39% to 34%, and in wastewater disposal from 54% to 40%. Until 2029, 6.8 trillion tenge will be allocated for these purposes. The issue of using digital tenge to ensure transparency of spending was considered.

Prime Minister Olzhas Bektenov noted the importance of the developed National Project for the housing and communal sector of the country and the development of the economy as a whole, taking into account the support of domestic producers and increasing the share of kazsoobtaining in public procurement.

The National Project also pays special attention to supporting domestic industry to reduce import dependence and create new jobs. It is planned to build 27 new production facilities that will stimulate the development of related sectors of the economy, including metallurgy, manufacturing and others.

"Ensuring uninterrupted operation of the vital sectors of heat, energy and water supply is the Government's top priority. Implementation of the national project will allow for large-scale renovation of worn-out, in some places emergency infrastructure. All projects also provide for the creation of 3.5 thousand jobs. We need to maximally involve domestic business, to purchase domestic goods and services," Olzhas Bektenov emphasised.

Head of the Government instructed the Ministry of National Economy together with the interested government agencies and organisations to ensure its quality implementation after the approval of the national project. The Ministry of Industry and Construction is tasked with creating conditions for the full load of domestic enterprises producing products for housing and communal services.

On plans for the implementation of the national project reported the Minister of Industry and Construction Kanat Sharlapayev, Deputy Minister of Energy Alibek Zhamauov, Chairman of the Committee on Regulation of Natural Monopolies of the Ministry of National Economy Asan Darbayev. Deputy Prime Minister Tamara Duisenova, Chairman of the National Bank Timur Suleimenov also made comments.

As a result of the meeting, the approaches of the National Project on modernisation of the energy and utilities sectors were approved.

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