In his state-of-the-nation address, President Kassym-Jomart Tokayev declared 2027 the Year of Nationwide Large-Scale Construction. The program will cover all regions of the country. It envisages the construction of housing and social facilities, as well as the modernization of utility infrastructure. Work will take place not only in major cities but also in district centers and rural areas. The list of projects will be drawn up based on regional needs and the condition of existing infrastructure.
«I believe a specific construction plan will be prepared in the form of a list of facilities to be implemented under this initiative. It will be compiled by the end of this year, with all relevant sectoral ministries involved in the process. By the end of the year, there should be a fairly clear picture of the scale of construction planned through 2029,» noted Bakytzhan Zhunisbekov, Chairman of the Committee for Construction and Housing and Communal Services, Kazakh Ministry of Industry and Construction.
The large-scale program will require additional volumes of construction materials. Domestic producers currently meet around 70% of the construction industry’s demand. To ensure that construction sites have all the materials they need, the Ministry plans to assess demand in advance and sign long-term contracts with enterprises, giving them enough time to ramp up production.
«Large-scale construction will be accompanied by an assessment of demand for construction materials and planning for the conclusion of offtake contracts, the expansion of production capacity and government support measures for domestic manufacturers,» Bakytzhan Zhunisbekov added.
Several sources of funding have been identified for the program. As announced by the Head of State in his state-of-the-nation address, the total funding will amount to 6.5 trillion tenge, with 1.5 trillion tenge expected to be allocated in the near future. In addition to budgetary funds, private investment and resources from international financial institutions will be attracted. Public-private partnership mechanisms will also be used.
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