Kazakhstan - Infrastructure
Under the government’s Nurly Zhol initiative, the country is expected to invest USD 9 billion to develop and modernize the country’s roads, railways, ports, airports and IT infrastructure. Kazakhstan is rapidly developing as a hub for transport and logistics in Central Asia, underpinned by the country’s attractiveness as an overland freight transit hub linking China and Europe. Kazakhstan’s transport sector is expected to drive growth over the next five years, with the rail sector outperforming on the back of elevated Chinese investment relating to the latter’s One Belt, One Road initiative, which seeks to leverage Kazakhstan’s strategic Central Asian location as a conduit for growing levels of East-West trade. The largest volume of investments in infrastructure was noted in the Atyrau, Nur Sultan city (capital of Kazakhstan) and Almaty regions.
Infrastructure Project Financing
External funding from international financial institutions like the Asian Development Bank, the European Bank for Reconstruction & Development (EBRD) and the Islamic Development Bank (IDB) will drive growth in the construction and infrastructure industries of Kazakhstan over the next five years. Reflecting the country’s status as Central Asia’s largest infrastructure market, Kazakhstan has attracted and will continue to attract most of the development funding in absolute terms to date. International development institutions are currently financing 32 projects in Kazakhstan, a figure which accounts for 34% of all projects moving forward in the country and exceeds the combined number of projects in the other four Central Asian markets. EBRD is particularly active in financing projects in Kazakhstan, with the institution supporting 17 projects with a cumulative value of USD 2.7 billion.
Architectural, Construction and Engineering Services: Despite the slowdown of Kazakhstan’s overall economy due to the COVID-19 pandemic, decreasing oil prices and slowdown of the real estate & construction sectors, there is still demand for building equipment and materials as well as for architectural, construction and engineering services.
Road Development: The Republic of Kazakhstan has begun implementation of an ambitious program of sovereign roads investments aimed at improving the connectivity and quality of road transport across the country.
Railway Development: Owing to China’s Belt and Road Initiative (BRI) and other international rail development projects, Kazakhstan is emerging as a crucial global rail hub in Central Asia.
Port Development: The Khorgos dry port in eastern Kazakhstan manages growing cargo demand for trains from China destined to Central Asia, Russia and Europe. In the west, Kazakhstan maintains three ports on the Caspian Sea: Aktau, Kuryk and Bautino.
Airport Development: Kazakhstan’s Nurly Zhol Development Strategy calls for an increase number of airports with automated control systems from 3 to 15 by 2025; an increase number of airports with ICAO certification from 16 to 19 by 2025; and general increase in passenger and cargo turnover by 2025.
The government is interested in pursuing infrastructure development, including roads renovation and construction in the region. With government plans to invest more than USD 4 billion for four major road construction projects, manufacturers of heavy earth moving equipment and road construction equipment will find good opportunities in the market. Best Prospects for U.S. Firms in Kazakhstan infrastructure development include: design, architectural & structural engineering services; construction & project management services; safety and security products & services; advanced materials & energy efficiency technologies; road construction machinery and precision navigation equipment; and, process automation technologies.
Trade Show: AtyrauBuild 2020: 19th North Caspian Regional Building and Interiors Exhibition, 26-28 August 2020, Atyrau, Kazakhstan.
Trade Show: KazBuild 2020: 27th Kazakhstan International Building & Interiors Exhibition, 4 - 6 September 2020. Almaty, Kazakhstan.
Trade Show: AstanaBuild 2020: 22st Kazakhstan International Building & Interiors Exhibition, 4-6 November 2020, Nur-Sultan, Kazakhstan.
Trade Show: ShymkentBuild 2021: 6th South Kazakhstan International Building & Interiors Exhibition, 10-12 March 2021, Shymkent, Kazakhstan.
Ministry of Industry and Infrastructure Development
Kazakhstan Academy of Architecture and Construction
Kazakhstan Statistic Agency
For more information contact Commercial Specialist Azhar Kadrzhanova