National Fund and ENPF Funds to Be Directed to Energy Development

Funds from the National Fund and the ENPF will be allocated for projects to develop the energy sector, as provided for by the national project to modernize the energy and utility sectors, Orda.kz reports.

The draft resolution on approval of the national project appeared on the portal “Open NPA”; its public discussion will last until November 1.

The ENPF will be able to invest in long-term infrastructure projects aimed at modernizing housing and communal services. Funds from the National Fund will be used for especially large, strategically important projects with high priority. Specific loan figures are not provided, but it is indicated that 10 trillion tenge will be required to modernize existing assets and create new ones.

The national project assumes that natural monopoly entities and enterprises producing electricity will receive subsidies through direct targeted transfers from the National Fund.

The financial operator will be the Baiterek holding company.

In case of a shortage of borrowed funds, JSC NMH Baiterek will receive loans from international financial organizations, second-tier banks and from JSC Unified Accumulative Pension Fund. To create attractive and predictable conditions for natural monopoly entities in terms of tariffs and to ensure the return on investment, tariffs will be set for five or more years, ensuring the return on investment within the established timeframes, the draft resolution states.

Additionally, they will revise the legislation in the energy sector. In particular, they plan to revise the existing restrictions on inclusion in the tariff and limiting the permissible profit level.

The adoption of the project will allow for the modernization and renewal of existing assets in the energy and utility sectors, including at least 30 thermal power plants, as well as reducing the malfunction rate by 20% and the level of depreciation of energy and utilities assets on average across the country to 40%,the explanatory note states. 

Original Author: Nikita Drobny