Kazakhstan’s energy sector enjoying investments growth
May 25. Trend
By Elena Kosolapova
Kazakhstan’s energy sector is experiencing the growth in investments, according to a message from the analytical service, Ranking.kz.
The analytical service said that since the start of realization of a program called “Tariff in Exchange for Investments” in 2009, the investments in the energy sector grew by over 2.5 times (264 percent).
In 2014, the investments in the energy sector of Kazakhstan reached 541.2 billion tenges (185.8 tenges = $1). The total investments in the energy sector of Kazakhstan over five years, stood at 2.23 trillion tenges (about $14 billion taking into account the average exchange rates for each year).
Among the sources for the investments to the fixed capital of Kazakhstan’s energy sector companies, two types of sources are distinguishable (they provided 87 percent of investments). These are the own funds of the market participants and the funds from the budget.
Although the investments of the market participants exceeded the state investments in 2014 (44 percent compared to 42 percent), the budget became the main participant of the investment process at the initial stage (2009-2010), said the message.
This is while the state’s investment activity has been increasing throughout five years: the budget allocated 88 billion tenge in 2009 – this figure was increased to 227 billion tenge in 2014.
Kazakhstan’s energy companies have invested 955.4 billion tenge for their development since 2009 by increasing the investments on average by 28 percent per year, according to the message.
For instance, the country’s largest energy generating state holding Samruk-Energo invested 413.5 billion tenge in 2009-2014 within the “Tariff in exchange for investments” program.
During this period, borrowings amounted to only 10 percent of investments in the sector. The growth of activity in the use of bank loans is not observed in the sector. The national banking system of Kazakhstan has not yet been able to take the place of a significant source of funds in the sector.
Foreign investments in the energy sector of Kazakhstan are of a pointed character, and they have not been able to make significant changes in the overall picture during this period, the message said.
The message said that the structure of public investment is stable: 80 percent of funds in the energy sector, which is quite a capital intensive industry, is invested at the national level, the remaining 20 percent accounts for local budgets.