‏Tokayev Pledges $14.3 Billion for Infrastructure, Targets Sustainable Electricity Surplus by 2029

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‏Kazakhstan will allocate 6.5 trillion tenge (US$14.3 billion) from the National Fund by the end of 2029 to modernize infrastructure nationwide, President Kassym-Jomart Tokayev announced in his annual state-of-the-nation address on Oct. 28.

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‏Under the proposed People’s Construction program, the government aims to develop social, transport and engineering infrastructure, create jobs and stimulate economic growth.

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‏Tokayev described the initiative as potentially the largest infrastructure project in the country’s history, saying it could provide employment for hundreds of thousands of people and deliver long-term benefits to younger generations.

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‏He stressed that state funding should serve as a guarantee for attracting private investment rather than being the sole source of financing. Tokayev also noted that Kazakhstan’s gold and foreign exchange reserves, together with the assets of the National Fund, had exceeded $130 billion.

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‏Kazakhstan Seeks to Strengthen Its Position as a Logistics Hub

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‏Addressing transportation and trade, Tokayev said global logistics was undergoing a major transformation, with vulnerabilities in maritime routes increasing the strategic importance of land-based transport corridors.

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‏According to the president, approximately 85% of freight transported from China to Europe already passes through Kazakhstan. However, he emphasized that the country must move beyond its role as a transit territory and become an active organizer of international freight flows.

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‏He called for the development of domestic logistics operators, cargo consolidation and distribution centers, as well as new manufacturing facilities and commercial sites around major transport hubs.

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‏Tokayev also instructed the government to complete the high-quality reconstruction of all road border crossing points next year. He criticized central and local authorities for failing to resolve persistent road infrastructure problems and called for improvements in road quality and roadside services.

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‏The president highlighted Kazakhstan’s strategic position along major air corridors connecting Europe and Asia, noting that the country had yet to fully capitalize on the economic opportunities offered by these routes.

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‏He called for accelerated digitalization across the transport sector, arguing that modern technologies and artificial intelligence should replace outdated paper-based freight management systems.

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‏Sustainable Electricity Surplus by 2029

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‏Tokayev identified electricity supply as a decisive factor in national competitiveness and economic sovereignty, describing the current period as an "era of electricity.”

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‏He said Kazakhstan’s annual electricity production of approximately 123 billion kilowatt-hours was insufficient to meet the growing needs of its industrial, construction and agricultural sectors, as well as the expansion of digital technologies and artificial intelligence, which will require additional data centers.

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‏The president criticized the country’s recurring electricity shortages during winter peak-demand periods, when Kazakhstan imports electricity from neighboring countries at high prices and sells it back during summer at significantly lower prices.

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‏He also expressed concern over delays in developing new generating capacity, citing the previously halted construction of the Balkhash thermal power plant and delays affecting generating facilities in Turkistan, Kyzylorda, Almaty and Ekibastuz.

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‏Tokayev set a strategic target of achieving a sustainable electricity surplus by 2029 and instructed the government to update the country’s unified long-term energy balance through 2035.

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‏New Nuclear Power Projects and Strategic Uranium Reserves

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‏Tokayev also emphasized the strategic importance of nuclear energy, saying Kazakhstan had made the right decision by supporting the construction of a nuclear power plant through a nationwide referendum.

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‏He called for serious consideration of a proposal to establish a state strategic uranium reserve, which could potentially cover the needs of Kazakhstan’s nuclear power plants for the next century.

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‏"I believe it is possible and perhaps necessary to begin construction of the Balkhash nuclear power plant as early as next year and sign a comprehensive cooperation agreement to accelerate the start of construction of the Moyinkum nuclear power plant,” Tokayev said.

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‏He stressed that negotiations on the projects must be carefully prepared and conducted in accordance with Kazakhstan’s national interests.

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‏Infrastructure and Energy at the Center of Economic Development

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‏The initiatives outlined by Tokayev reflect Kazakhstan’s efforts to link infrastructure modernization with expanded electricity generation and improved transport and logistics networks.

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‏The government’s priorities include attracting private investment, addressing electricity shortages, advancing nuclear power projects, improving roads and border crossings, and strengthening the country’s position in trade between Asia and Europe.

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‏The period leading up to 2029 will be crucial for implementing these plans, particularly the infrastructure investment program and the target of establishing a sustainable electricity surplus.

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