$14 Billion Overhaul: Tokayev Unveils ‘People’s Construction’ for Kazakhstan
President Tokayev unveils "People's Construction," a $14.27 billion plan to modernize Kazakhstan's energy, transport, and economy.
President Kassym-Jomart Tokayev has charted a bold new course for Kazakhstan, announcing a massive nationwide infrastructure initiative and a sweeping set of economic reforms. In his State of the Nation Address, titled “Kazakhstan’s Current Priorities in a New Historical Cycle,” delivered on October 28, the President introduced the Kazakhstan infrastructure programme known as “People’s Construction,” hailing it as the most ambitious project in the nation's history.
The 'People's Construction' Blueprint
At the heart of the President's vision is a colossal investment in the country's physical and social fabric. To fuel this modernisation, the National Fund will provide approximately 6.5 trillion tenge (roughly $14.27 billion) by the end of 2029. A significant portion of this—1.5 trillion tenge ($3.29 billion)—is specifically earmarked for social projects between 2026 and early 2027.
President Tokayev has proposed that 2027 be officially declared the "Year of Nationwide Large-Scale Construction." The initial phase of this rollout will see the development of:
- Around 70 new healthcare facilities.
- 50 educational, sports, and cultural centers.
- Major upgrades to housing, utilities, and transport.
- Expanded access to gas and clean drinking water.
Beyond the bricks and mortar, the President emphasized that this surge in construction is expected to generate employment opportunities for hundreds of thousands of citizens, aiming to elevate the quality of life across every region.
Economic Ambitions and Energy Security
The infrastructure push is backed by strong economic projections. Citing IMF data, Tokayev noted that Kazakhstan's GDP is expected to climb toward USD 400 billion by 2026, with GDP per capita surpassing USD 19,000. Currently, manufacturing contributes over 14% to the GDP, and the nation's combined international reserves and National Fund assets exceed USD 130 billion.
Energy security remains a critical pillar of the reform. The President has set a target to achieve a sustained electricity surplus by 2029. This will be pursued through:
- New generation capacities and upgraded power grids.
- A shift toward cleaner coal generation and renewable energy.
- The potential start of construction for the Balkhash nuclear power plant as early as 2027.
- Advancing the Moyynkum nuclear project and establishing a strategic uranium reserve to guarantee long-term fuel supplies.
Becoming Eurasia's Logistics Hub
Tokayev is positioning Kazakhstan as a central artery for global trade. Key transport milestones include the opening of the Bakhty–Ayagoz railway in 2027, which will boost freight capacity between Kazakhstan and China by 20 million tonnes.
Furthermore, the Aral–Caspian corridor—under construction since August—aims to slash the Trans-Caspian route by about 1,000 kilometres, potentially reducing delivery times by three days. The President also called for a new airport in Astana and the digitalisation of freight to solidify the country's status as a leading Eurasian logistics hub.
Industrial Diversification and Legal Reforms
To move beyond traditional exports, the President called for modern geological exploration and a national system to manage critical mineral reserves. He urged the government to forge partnerships with developed nations to integrate Kazakhstan into global value chains.
In a move to attract more foreign investment, Tokayev announced a unique legal shift in Alatau City. The government plans to establish an Investment Court based on the English common law model to handle commercial disputes, alongside a separate Civil Court. Legislative changes for this special legal regime are expected by January 2027.
The Digital Leap: AI and Supercomputers
Digital transformation is another cornerstone of the "New Historical Cycle." Kazakhstan has already put two supercomputers into operation, with a third expected by the end of 2026. The completion of the fibre-optic link across the Caspian seabed further enhances the nation's connectivity.
President Tokayev stressed the need for the practical application of artificial intelligence and the implementation of digital employment rules by the end of 2026, including regional pilots designed to help rural producers access online markets.