National Project: How Financing Will Be Made Available for Modernization of Utility Infrastructure

As part of the implementation of the National Project Modernization of the Energy and Utility Sectors, Baiterek National Managing Holding has been designated as the financial operator responsible for financing natural monopoly entities through lending and subsidizing mechanisms via its subsidiaries, second-tier banks, and international financial institutions. This was announced by Aliya Murzagalieva, Managing Director of Baiterek National Managing Holding, at a press conference at the Central Communications Service.

“We act as the financial operator and provide direct lending for projects of natural monopoly entities, as well as for government securities (GS) issued by local executive bodies (LEB). Currently, the LEB GS instrument, which is applied in the municipal property sector, is being expanded. Enterprises owned by local administrations (akimats) can receive financing through the issuance of LEB bonds. In addition, the Development Bank of Kazakhstan will provide direct lending to large private entities of natural monopolies,” explained the speaker.

She also noted that there is an additional instrument — a subsidizing mechanism through the Kazakhstan Housing Company.

“We understand that tariffs will rise, but within reasonable limits. Our task is to make financing accessible, while ensuring that tariff increases remain justified and acceptable. An additional tool being applied is the guarantee mechanism: through the subsidiary Damu, two guarantee funds are in place. For major investment projects, a guarantee mechanism covering up to 30% of project costs is already being applied. Work is also underway to attract long-term loans with maturities of 5 and 10 years,” the speaker informed.

Aliya Murzagalieva added that the application platform under the national project will be launched in the near future, but applications from natural monopoly entities for financing are already being accepted through the Bgov.kz portal. Currently, 7 entities are under direct lending, while 10 more projects have submitted applications through the bond issuance mechanism and are under consideration. The launch of financing is scheduled for September.