‘Baiterek’ launched a service for submitting applications for modernisation projects in the energy and utilities sectors

‘Baiterek’ National Managing Holding JSC has introduced a new online service on the bgov.kz platform, designed for natural monopoly entities (NMEs). This service enables enterprises to submit applications for project consideration under the national project ‘Modernisation of the Energy and Utilities Sectors’ (MEUS).

About the service

The new service was developed for enterprises operating in the energy and utilities sectors that plan to modernise their infrastructure. Through the bgov.kz platform, NMEs can submit applications and gain access to financing.

How does the service work?

1. Registration on bgov.kz: Users authenticate themselves using an electronic digital signature (EDS).
2. Filling out the application: Applicants submit a request for an initial assessment, specifying key performance indicators, attaching the required documents, and providing contact details.
3. Application review: Specialists from ‘Baiterek’ Holding analyse the submitted documents and assess whether the project meets the established criteria.
4. Referral for financing: If approved, the project is forwarded to the relevant subsidiaries of the Holding and/or second-tier banks for financing.

Financing mechanisms

The MEUS national project aims to reduce the deterioration of engineering networks and implement a large-scale renewal of municipal infrastructure. The total required investment exceeds KZT 13 trillion, of which KZT 4.7 trillion will be contributed by ‘Baiterek’ Holding. NMEs will be financed under the National Project through the following mechanisms:

• Direct lending – NMEs can obtain financing directly through second-tier banks (STBs), Development Bank of Kazakhstan JSC (DBK), international financial institutions (IFIs), and the Entrepreneurship Development Fund (EDF).
• Syndicated financing and co-financing – Joint financing of projects involving multiple financial institutions, allowing for risk distribution and increased available funding.
• Bond loans – Issuance of bonds by local executive bodies (LEBs), followed by redemption by Kazakhstan Housing Company JSC (KHC) or Development Bank of Kazakhstan JSC (DBK), ensuring the attraction of funds for infrastructure modernisation.

Who is the service available to?

The service is designed for natural monopoly entities (NMEs), including companies engaged in electricity and heat supply, water supply, and wastewater disposal, as well as organisations responsible for operating utility infrastructure.

Why is it important?

Currently, the deterioration of engineering networks in the energy and utilities sectors has exceeded critical levels. To address this issue, substantial funding has been allocated to modernise municipal infrastructure. These efforts will significantly reduce the number of accidents and minimise losses in heating, electricity, water supply, and wastewater systems.

The National Project encompasses a broad range of natural monopoly entities (NMEs), including both state-owned and private enterprises. They are categorised by city type, ensuring an efficient allocation of funding.

In addition, Kazakhstan has a significant number of energy-producing organisations, some of which operate heavily worn-out equipment. The National Project includes the construction of new generating capacities and the modernisation of existing facilities. These measures will increase the overall capacity of the energy system and reduce asset deterioration.

An important aspect of the project is supporting domestic manufacturers. The implementation of the infrastructure modernisation programme will require large-scale production, which will create new jobs, reduce dependence on imports, and enhance the competitiveness of Kazakh enterprises.

You can submit an application at the following link: https://bgov.kz/services/MEKS

Detailed instructions: https://t.me/baiterek/5494