ASTANA, Kazakhstan, March 12. Kazakhstan’s National Management Holding Baiterek JSC has introduced a new online service aimed at natural monopoly entities (NMEs), Trend reports via Baiterek.
This service enables enterprises to submit applications for projects under the national initiative “Modernization of Energy and Utility Sectors” (MEUS).
“The new service is designed for enterprises operating in the energy and housing and communal services sectors that are planning infrastructure modernization. The MEUS national project focuses on reducing the wear and tear of engineering networks and enabling large-scale renewal of utility infrastructure. The required total investment exceeds 13 trillion tenge (approximately $26 billion), of which 4.7 trillion tenge (approximately $9.4 billion) will come from Baiterek Holding,” the company stated.
The financing of NMEs (natural monopoly entities) under the National Project will be facilitated through several mechanisms:
Direct Lending: SEMs can receive financing directly from second-tier banks (STBs), Development Bank of Kazakhstan JSC (DBK), international financial organizations (IFOs), and the Entrepreneurship Development Fund (EDF);
Syndicated Financing and Co-Financing: Joint financing of projects by multiple financial institutions, which helps to distribute risks and increase the available funds;
Bond Loans: Issuance of bonds by local executive bodies (LEBs), which will then be redeemed by Kazakhstan Housing Company JSC (KHC) or Development Bank of Kazakhstan JSC, facilitating the attraction of funds for infrastructure modernization;
The service is targeted at natural monopoly entities, including electricity and heat supply, water supply, and wastewater disposal companies, as well as organizations involved in the operation of utility infrastructure.
“The National Project encompasses a wide range of natural monopoly entities, including both state-owned and private enterprises. These entities are categorized based on city type, allowing for more efficient allocation of funding. An important aspect of the project is support for domestic producers. The implementation of the infrastructure modernization program will require significant production volumes, leading to the creation of new jobs, reducing import dependence, and boosting the competitiveness of Kazakh enterprises,” Baiterek concluded.
Baiterek Holding is a major state-owned investment and development company in Kazakhstan, established with the goal of supporting the country’s economic growth by fostering investment, innovation, and industrial development. The holding manages and supports various sectors, including finance, real estate, infrastructure, energy, and manufacturing.