Kazakhstan will receive loans for several infrastructure projects, including construction of the Zhezkazgan-Karaganda highway and participation in the Kambarata-1 Hydropower Plant project in Kyrgyzstan, where Uzbekistan and Kazakhstan are partners.
Read also: Where will Kazakhstan’s $28 billion infrastructure plan go?
The loan agreement between Kazakhstan and organizations within the World Bank Group was ratified by the lower house of the Parliament of Kazakhstan on March 4.
Under the deal, procurement of goods, works and services within the investment projects must follow World Bank methodologies. The projects will also have to comply with the bank’s standards for transparency and information disclosure.
Infrastructure projects to receive financing
The World Bank has financed more than 50 projects in Kazakhstan in sectors such as transportation, education, environment and digitalization, totaling over $8 billion.
Read also: World Bank to support Kazakhstan’s push for massive infrastructure project.
Kazakh Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said the loans will not increase the country’s national debt. Instead, he said, they will reduce pressure on the state budget and expand funding sources for major projects.
Read also: Kazakhstan’s external debt in 2025 and budget for 2026 visualized.
After the agreement enters into force, financing will begin for several initiatives, including:
- Reconstruction and construction of the Zhezkazgan-Karaganda and Beineu-Saksaulsk highway routes.
- A project aimed at modernizing rail service and improving transport connectivity across Kazakhstan.
- Construction of the Kambarata HPP.
Zhumangarin did not specify the total amount Kazakhstan plans to borrow from the International Bank for Reconstruction and Development and other World Bank institutions for the hydropower project.
Regional hydropower project
Construction of the Kambarata-1 HPP was launched by Kyrgyz President Sadyr Japarov on June 8, 2022. About $20 million has already been allocated for initial work.
Read also: Kyrgyzstan’s bold 2035 plan: Zero debt and an end to revolutions.
According to a feasibility study developed by a consortium led by Canada’s SNC-Lavalin, the project’s cost was estimated at $2.9 billion in 2014 prices. However, in April 2024 Kyrgyz authorities said the total cost could reach $5 billion to $6 billion, with a payback period of 13-15 years. Later estimates placed the cost at about $3.6 billion.
Shares in the project and the authorized capital of the special-purpose company are divided as follows:
- Kyrgyzstan — 34%.
- Kazakhstan — 33%.
- Uzbekistan — 33%.
Project capacity and timeline
Construction of the plant is expected to take about 10 years, with the first generating unit scheduled to be commissioned within four years.
The facility will have a capacity of 1,860 megawatts and will be built on the Naryn River, upstream from the Toktogul Hydropower Plant, which has a capacity of 1,200 megawatts.
Read also: Central Asia’s largest banks and stadiums visualized.
The project includes construction of a 256-meter-high dam and a reservoir capable of holding 5.4 billion cubic meters of water. Once completed, the plant is expected to generate 5.6 billion kilowatt-hours of electricity annually.
