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At the Government session of the Republic of Kazakhstan, Deputy Minister of National Economy Asan Darbayev stated that modern challenges require a comprehensive approach-combining technical modernization, the introduction of innovative and water-saving technologies, digital transformation of the sector, and institutional and tariff reforms,
primeminister.kz reports.
He emphasized that particular attention is being paid to ensuring reliable and uninterrupted water supply across all regions of the country, reducing water losses, improving the efficiency of network operations, and establishing a fair pricing system for consumed resources.
As a systemic measure to attract significant investment into utility infrastructure, the "Tariff in Exchange for Investment" program was adopted and launched in 2023. The Deputy Minister reported that between 2023 and 2024, approximately 99.3 billion tenge was invested into water supply and wastewater services for the repair of 1,051 km of pipelines. Specifically, 62.5 billion tenge was allocated to repair 764 km of water supply networks, and 36.8 billion tenge to rehabilitate 287 km of wastewater systems. According to Darbayev, these efforts have reduced average network wear by 4% and decreased the number of breakdowns by 5%. He also noted that the program contributed to an increase in wages in the water services sector-from 135,000 to 230,000 tenge, representing a 70% rise.
Darbayev recalled that, in line with the President’s directive, the Government of Kazakhstan approved the National Project "Modernization of the Energy and Utility Sectors" in December 2024. He explained that the project's goal is to modernize energy and utility infrastructure, including water supply and wastewater networks and facilities, in order to ensure reliable, high-quality public services and sustainable economic development. The project is designed to provide long-term preferential financing for a large-scale overhaul of housing and utility infrastructure. A key indicator of success will be the reduction of wear and tear in utility networks.
Moreover, Darbayev stated that the implementation of the National Project will follow four key directions. One of them is increasing local value, which involves maximizing the use of domestically manufactured products. He specified that under the National Project, around 1.7 trillion tenge in investment is planned for the repair of 7,300 km of engineering networks. This is expected to significantly reduce emergency incidents and bring the infrastructure to a modern technological standard.
As the tariff regulator, the Ministry will ensure that these investments are repaid through tariffs, by incorporating the principal debt and loan servicing costs (up to 10%) into the tariff. Any amount exceeding 10% will be subsidized from the national budget. In 2025, 13 pilot projects are expected to be launched as part of the National Project, through the redemption of government securities issued by local executive bodies. These include 8 natural monopoly entities (NMEs) in water supply and 5 NMEs in wastewater services.
The Deputy Minister also discussed the implementation of a four-tier tariff system for water supply, based on consumption limits, with cost distribution as follows:
Group 1 - up to 3 m³: current tariff applied.
Group 2 - 3 to 5 m³: 20% above the current tariff.
Group 3 - 5 to 10 m³: 50% above the current tariff.
Group 4 - over 10 m³: 100% above the current tariff.
He reported that following the implementation of this system, tariff levels for 61 NMEs across the country have been revised. Darbayev noted that an analysis was conducted to assess the effectiveness of these new tariff approaches-particularly the introduction of "social consumption norms"-in terms of reducing water usage.
He emphasized that the differentiated tariff system based on consumption levels has proven effective in encouraging consumers to use water services more responsibly. It has also generated additional revenue that can be used to fund network repairs, which in turn will reduce infrastructure deterioration and improve the quality and reliability of utility services.
Since the introduction of social consumption norms, water usage has decreased by 8%, and the level of metering has increased by 4%, according to the Deputy Minister.
