Kazakhstan Ratifies World Bank Deal for Energy and Transport Projects
The Kazakhstani parliament has ratified a framework agreement with the World Bank Group to secure concessional financing for regional infrastructure projects. A portion of the funds is designated for the energy sector, specifically for the construction of the Kambar-Ata-1 hydropower plant in neighboring Kyrgyzstan. Kazakhstan plans to borrow approximately 500 million US dollars from international financial institutions to cover its share of the project.
The Kambar-Ata-1 hydropower plant, with a planned capacity of 1860 MW, is a tripartite venture. Kyrgyzstan holds a 34 percent stake, while Kazakhstan and Uzbekistan each hold a 33 percent share. For Kazakhstan, the new facility is a key component in its strategy to reduce dependence on electricity imports from Russia. The initiative to find more affordable generation sources within Central Asia is influenced by the price of Russian electricity, which is set at 8.5 US cents per kilowatt-hour for early 2025.
In addition to the hydropower plant, the World Bank financing package will support transport logistics. Funds are allocated for the Zhezkazgan–Karaganda highway, budgeted at 1.2 trillion tenge, and the Beyneu–Saksauylsk highway, which will receive 750 million US dollars. The terms of the state-guaranteed loans mandate the adoption of international procurement standards and greater transparency in tendering processes.
The agreement’s passage through the Mazhilis, the lower house of parliament, was subject to several conditions. The Committee on Finance and Budget stipulated that the loan proceeds must be used exclusively for projects with a calculated economic impact. The Ministry of National Economy has provided assurances that the new liabilities will not lead to uncontrolled growth in public debt. The credit lines, available for terms up to 35 years, are designed to finance capital-intensive construction with long-term, low-cost funds to avoid sudden strain on the national budget.
