Housing and Utilities Sector: Tangible Results from Modernization Efforts

Kazakhstan's Karaganda Region overhauls ageing utility infrastructure by 2029

Repair crews in Kazakhstan's Karaganda Region have entered the active phase of implementing the national project "Modernization of the Energy and Utilities Sectors" (MEUS), a large-scale initiative running through 2029. The project aims to overhaul and partially replace worn-out sections of heating mains, water pipes, electrical grids, and sewage systems.

Under the initiative, two major heating pipelines and water treatment facilities in Karaganda and Temirtau are currently undergoing reconstruction. Modernization of another heat energy facility has already been completed. Total investment in these projects is expected to reach approximately 34 billion tenge.

"In 2025, through the mechanism of purchasing government securities by local executive bodies, 17 pilot projects were financed—including four in the Karaganda Region," said Anar Baitukenova, Deputy Chair of the Committee for Regulation of Natural Monopolies at Kazakhstan's Ministry of National Economy. "We already have concrete results. For instance, the reconstruction of heating networks in Temirtau has been completed, significantly improving the reliability of heat supply for nearly 39,000 consumers."

This update was shared during an on-site meeting of the Public Council, which oversees the implementation of the national project. Yesterday, its members—led by Mazhilis Parliament Deputy Dusenbay Turginov—visited the Karaganda Region to inspect the reconstructed facilities.

Public monitors reviewed the progress of construction and installation work and raised concerns, including one critical issue: the "local content" requirement in procurement for network materials.

"I would like to take this opportunity to address the regional akim [governor]: prioritize purchasing from domestic manufacturers," said Asel Dangilova, a Public Council member. "I understand that all projects undergo state expertise before implementation, but it would be better if local authorities also ensured greater Kazakhstani content in these contracts."

Her remark was not without reason. The reconstruction of Karaganda's heating mains has relied on imported stainless steel pipes, as no equivalent is produced domestically. As a result, the "local content" metric fell short of even 20%.

Responding to the call, Karaganda Akim Meiram Kozhukhov announced that the heating pipeline project would be revised: imported pipes will be replaced with domestically produced alternatives, saving millions of tenge.

A fair question was raised by public activist and honored energy specialist Petr Svoik. He asked how investments in the modernization of the utility sector would affect tariffs. After all, the time will come when the billions now being spent on replacing pipes, valves, and pumps will need to be repaid. And then the financial burden will fall on consumers' wallets.

The mayors of Karaganda and Temirtau reassured residents that there is no cause for concern—at least for now. All utility infrastructure is currently being upgraded with budget funds, so no tariff increases are planned. However, in the future, when water supply, heating, and power grid reconstruction projects are financed through loans, all costs will have to be factored into utility bills. Even then, officials expect no sharp spike in prices, as payments for the modernization of housing and utility infrastructure will be spread over 10 to 15 years.

It should be noted that during an on-site meeting, members of the public council received comprehensive information on the implementation of the national project to modernize the energy and utility sectors in the Karaganda region. Local utility providers—currently forced to deliver hot and cold water through critically worn-out pipes classified in the high-risk "red zone"—now have a real chance to soon move into the more stable "yellow zone." For consumers, this means an improvement in the quality of utility services.