ASTANA — Mobilizing private capital is essential to closing Asia’s trillions of dollars infrastructure financing gap, said representatives from development banks, investment firms, and government agencies at a panel discussion organized by the Asian Infrastructure Investment Bank (AIIB) and Kazakhstan’s Ministry of National Economy on April 29 at the Astana International Financial Centre (AIFC).
From left to right: Akzhol Urazalin, Evgeniya Bogdanova, Zamira Sundetova, Asim Rana, Nikoloz Gagua, Wang Xianming. Photo credit: Nagima Abuova / The Astana Times
Kazakhstan’s national vision for infrastructure development
The session opened with remarks by Konstantin Limitovskiy, a chief investment officer at AIIB, who joined virtually to reaffirm Kazakhstan’s strategic importance in the bank’s portfolio. He noted that Kazakhstan, a founding member of the AIIB, has received more than $2 billion in investments across seven major public and private sector projects.
“These are roads that bring communities closer, renewable energy that lights up homes, and hospitals that provide critical care. Kazakhstan’s strategic position as a major dispersion and trade hub aligns with our mission to foster international connectivity,” said Limitovskiy.
He emphasized the AIIB’s role in projects aligned with Kazakhstan’s goal of achieving carbon neutrality by 2060.
“We are supporting Kazakhstan by adding 420 megawatts of green energy so far,” he said, highlighting ongoing wind farm developments and the landmark financing of the country’s first hospital under its public-private partnership (PPP) law.
He also highlighted railway bypass projects and infrastructure initiatives aimed at removing trade blockages, enhancing regional connectivity, and expanding access to essential services.
“Together, we are mobilizing public and private capital to invest in projects that are transformative and sustainable,” he said, inviting stakeholders to the AIIB’s 10th annual meeting in Beijing this June.
Government priorities: diversification and off-budget funding
Vice Minister of Transport Talgat Lastayev. Photo credit: Nagima Abuova / The Astana Times
Vice Minister of Transport Talgat Lastayev emphasized Kazakhstan’s commitment to creating a modern and highly developed transport network, supported by state development programs extending through 2030.
“More than 4,000 kilometers of roads are subject to reconstruction and construction, costing more than $15 billion,” he said. “Sustainable infrastructure development and the transition to clean energy are key areas of Kazakhstan’s national strategy.”
Lastayev outlined priority transport corridor projects such as the Karagandy-Zhezkazgan and Aktobe-Karabutak-Ulgaisyn routes, and shared updates on upcoming co-financing agreements with the World Bank and European Bank for Reconstruction and Development (EBRD).
Diversifying investment tools and partnerships
Evgeniya Bogdanova, CEO of the Astana Financial Services Authority (AFSA), expanded the conversation to emphasize the importance of sustainability in capital markets.
Evgeniya Bogdanova, the CEO of the Astana Financial Services Authority (AFSA). Photo credit: Nagima Abuova / The Astana Times
“Infrastructure is not simply about building assets – it is about enabling opportunity. We must engage private capital in a meaningful way through the right regulatory frameworks, risk mitigation tools, and market-based incentives that reward sustainability,” she said.
Bogdanova emphasized that the public sector alone cannot bridge the infrastructure gap. Engaging private capital requires regulatory certainty, risk mitigation tools, and financial instruments that align with long-term investor goals.
She noted that AFSA is expanding the financial environment for sustainable products and environmental, social, and governance (ESG) instruments.
“The role of multilateral development banks like AIIB is indispensable,” she said, citing their ability to bridge public development needs with private sector execution.
Crowding in private sector capital
Asim Rana, AIIB’s manager for financial institutions and funds clients, provided a technical breakdown of the bank’s strategies to mobilize private capital, which he described as a key strategic priority.
Beyond direct investments in roads and solar farms, Rana said the bank partners with financial intermediaries, such as banks and asset managers, to scale impact. He explained how AIIB supports on-lending facilities, where capital is channeled through local banks to fund multiple infrastructure projects under strict environmental and social standards.
He highlighted the creation of Bayfront, a collateralized loan obligation (CLO) vehicle launched in Singapore, as well as similar initiatives in Hong Kong that bundle infrastructure loans into tradable securities.
“We created a market for securities which are very difficult to establish in Asia,” he said, noting that these innovations help recycle capital and increase liquidity in the sector.
Rana also added that making infrastructure projects commercially viable is vital to attracting institutional investors. “Infrastructure is a long-dated asset class. It requires patience, but it certainly requires returns,” he said.
He noted that mobilizing private capital for long-term infrastructure projects involves thorough checks on environmental, social and credit factors to show the project is viable and sustainable.
Kazakhstan’s development agenda and challenges
Providing a broader economic context, Akzhol Urazalin, a deputy director of the International Economic Cooperation Department at the Ministry of National Economy, noted that Kazakhstan has seen steady growth of 4.8% in 2024, driven by agriculture, transportation and manufacturing.
He noted that Kazakhstan’s national infrastructure plan, spanning 2029, is valued at approximately $80 billion and includes over 200 projects across the energy, transport, digital, and sanitation sectors.
From left to right: Nikoloz Gagua, an AFSA chief policy officer, Akzhol Urazalin, Zamira Sundetova, Asim Rana, Wang Xianming. Photo credit: Nagima Abuova / The Astana Times
“Around 90% of the funding is expected from off-budget sources,” he said.
Urazalin also highlighted the importance of public-private partnerships, noting ongoing reforms to enhance transparency, tax policy, and institutional frameworks. However, he said that challenges remain in long-term financing for the private sector and in building strong legal mechanisms for PPPs.
“We are trying to develop and implement flexible risk-sharing models between the government and the private sector, to promote use of green financial instruments,” said Urazalin.
Investment philosophy: lean, green, and clean
Zamira Sundetova, SkyBridge Invest CEO, offered a private sector perspective on how asset managers contribute to long-term infrastructure development.
“At SkyBridge Invest, we not only act on behalf of our clients – we help facilitate complex infrastructure transactions,” she said during the panel. “Our government has committed to carbon neutrality by 2060 and we are doing our best to achieve this goal.”
She also highlighted growing interest in renewable energy and digital infrastructure, particularly fiber optics and 5G, driven by national priorities and rising regional demand.
“Sustainability, financial resilience, and environmental impact are among the most important criteria when choosing a project for the long term,” Sundetova told The Astana Times.
She called for Kazakhstan to consider establishing a joint infrastructure investment fund, drawing inspiration from the Three Seas Initiative in Europe.
Commercial banks as ecosystem builders
Wang Xianming, a senior executive officer at China Construction Bank’s (CCB) Astana branch, highlighted the bank’s $1 billion investment in Kazakhstan since its 2019 entry, with a focus on gas, solar, and wind infrastructure.
“In supporting infrastructure development, commercial banks can mainly serve three roles. The first one is financing supporter, the second is risk manager and third is ecosystem building,” said Wang.
Wang described how CCB has developed green finance structures, reduced financing costs through cross-border cooperation, and syndicated loans in partnership with multilateral banks. He emphasized the need for greater collaboration among banks, asset managers, insurers, and government entities to develop diversified financing systems.
“This innovative collaboration not only leverages our project evaluation expertise but also integrates the capacities of various financial institutions,” he said.
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