Who will pay to renew Kazakhstan's utility networks? Baiterek seeks more bank funding

On 15 October, Baiterek proposed drawing more commercial banks into Kazakhstan’s energy and utility modernisation programme. Government, central-bank and banking representatives discussed a bottleneck between project documents, tariff decisions, subsidies and actual lending.

Baiterek says projects involving state-owned natural monopolies have received 213.8 billion tenge in financing. Financial institutions are reviewing private-company projects worth 434 billion tenge, including 256 billion tenge at commercial banks. These figures describe different stages: a proposal under review is not money already disbursed.

For smaller private utilities, the Damu fund proposed a three-way financing model shared by local authorities, Damu and a bank. Its proposed ceiling is 1 billion tenge per project, with a 12.6% borrower rate. Guarantees and future revenue as collateral were also discussed. Residents should judge the programme by completed network replacement, fewer outages and better service. The announcement concerns financing mechanisms, not finished repairs.

Source: https://baiterek.gov.kz/ru/pr/news/kholding-bayterek-predlozhil-rasshirit-uchastie-bankov-v-modernizatsii-energeticheskoy-i-kommunalnoy