KHC Has Started Financing the National Project for the Modernization of the Energy and Utilities Sectors

Kazakhstan Housing Company (KHC, a subsidiary of ‘Baiterek’ National Managing Holding) has initiated financing under the National Project aimed at modernizing and constructing infrastructure in the regions by purchasing bonds issued by the akimats of Karaganda, Pavlodar, West Kazakhstan, and North Kazakhstan regions.

The total volume of bond financing amounted to KZT 22.5 billion. The debut acquisition of akimat bonds by KHC is directed towards the modernization of 10 heat supply, water supply, water treatment, and power supply facilities across four regions of the country.

Financed facilities:

1. Construction of the new TM-20A heating main with increased throughput capacity (up to Du1000) along the section from CHPP-1 to NO-52V in Pavlodar, totaling KZT 9.7 billion.
   The heating networks in the region are in a critically worn condition (about 92%). Upon completion, this figure will decrease to 77%, improving the reliability of heat supply, reducing material and financial costs of emergency repairs, and ensuring quality heating for about 124,500 residents of Pavlodar.
2. Reconstruction of the main blocks of the 2nd and 3rd phases of the water treatment complex of Karaganda Su LLP in the Karaganda region, totaling KZT 2.5 billion.
   Current wear of facilities reaches 80%. After reconstruction, about 695,000 people in Karaganda, Temirtau, and the settlement of Aktas will be provided with uninterrupted, high-quality water supply meeting sanitary standards.
3. Reconstruction of TM-2A heating networks in Temirtau from the 6th microdistrict to Temirtauskaya Street, totaling about KZT 980 million.
   The average wear of the city’s heating networks exceeds 71%, with some pipelines in operation for more than 28 years. The project will reduce accidents and decrease network wear by 2.1%, improving heat supply for more than 7,000 consumers, including apartment buildings and other facilities.
4. Reconstruction of TM-3 heating networks along Michurin Street in Temirtau, totaling KZT 4.3 billion.
   The networks are in unsatisfactory condition with 65% wear. Modernization will reduce accident rates and lower wear by 4.9%, ensuring reliable heat supply for over 39,000 consumers.
5. Reconstruction of TM-6 heating main from point 1 to TK-6 at the intersection of Gagarin and Ruzheynikov Streets in Uralsk, totaling KZT 504 million.
   The pipelines are over 30 years old with more than 88% wear. After reconstruction, 22,000 residents will receive quality services, and wear will drop to 46%.
6. Reconstruction of TM-7 heating main from TK-2-27 to TK-7-14 in Uralsk, totaling KZT 776 million.
   The heating main has been in operation for more than 30 years with 65% wear. Reconstruction will provide quality services for 10,100 residents, reducing wear to 40%.
7. Reconstruction of power grids (VL-10kV, VL-0.4kV, and KTP-10/0.4kV) in Burlinsky, Chingirlau, and Karatobe districts of West Kazakhstan region, totaling KZT 1.5 billion.
   The average wear is 74%. Modernization will replace 307.8 km of networks.
8. Reconstruction of power grids: “Zhaksibai-Talovka” in Zhanibek district, “Panika-40 Years of KSSR” in Taskala district, “Pyatimar-Zhanatalap,” and construction of the “Zhangala-Mashteksai” power system in Zhangala district of West Kazakhstan region, totaling KZT 475 million.
   Currently, the grids are in poor condition with high equipment and pole wear, frequent outages during bad weather, and energy losses due to outdated infrastructure. Average wear is 79%. After reconstruction, 116.5 km of networks will be replaced.
9. Reconstruction of power grids (VL-0.4kV, KL-0.4kV) in Uralsk, totaling KZT 1.1 billion.
   Average wear is 49%, with some networks operating for more than 60 years. Reconstruction will replace 171 km of networks.
10. Modernization of the heating line in Zheleznodorozhny microdistrict of Tayinsha district, North Kazakhstan region, totaling KZT 0.7 billion.
    The heating line, 1.9 km long, has been in operation since 1989. The project will provide heat to the residential area of Remzavod and Zheleznodorozhny microdistrict, and allow connection of additional consumers, including shops, a fitness and recreation center, a future swimming complex, and private houses.

The National Project for the Modernization of the Energy and Utility Sectors was adopted pursuant to the instructions of the Head of State. KHC finances natural monopoly entities through two mechanisms: by purchasing akimat bonds for state-owned entities and by subsidizing loans of STBs, DBK JSC, and MFIs for private entities.

The purchase of bonds from four akimats under the National Project marks the start of implementing one of the country’s large-scale projects running until 2029. Its goal is to reduce the wear of energy and utility infrastructure nationwide and ensure reliable and high-quality utility services for the population.