2023 was a busy year for the EBRD in Uzbekistan with the launch of their Star Venture and Youth in Business programs as well as substantial funding of $760mn into the Central Asian nation. Andi Aranitasi, the EBRD's head in Uzbekistan, spoke to Daryo about the bank's ambitious initiatives and projects within the country, signifying a robust push towards sustainable and inclusive growth.
Renewable Energy at the Forefront
At the heart of the EBRD's investment strategy is the significant emphasis on renewable energy projects. "We supported 900 megawatts of solar projects with Masdar as a foreign investor and a 100-megawatt wind project with ACWA Power," Aranitasi pointed out, underscoring the EBRD's role in catalyzing Uzbekistan's transition to sustainable energy sources. These projects not only align with global sustainability goals but also position Uzbekistan as a leader in renewable energy within the region
Enhancing Environmental Sustainability
Beyond renewable energy, the EBRD's initiatives span various sectors aimed at promoting environmental sustainability. The launch of electric buses in Samarkand and the implementation of efficient irrigation pumps in the Fergana Valley were highlighted by Aranitasi as pivotal projects. "It's about $200 million... a very interesting project because apart from the CO2 savings, the energy savings from the project are very large," he mentioned, regarding the irrigation pumps initiative. This project is set to save around 300,000 megawatt-hours annually, marking a significant step towards reducing Uzbekistan's carbon footprint.
Supporting Green Economy and Community Development
The EBRD is also making strides in fostering a green economy through its financing frameworks. The expansion of the Green Economy Financing Framework to include households reflects a broader commitment to energy efficiency and sustainable practices. "The new edition will also expand this to households," Aranitasi noted, highlighting the program's success and scalability.
Moreover, the Youth and Women in Business programs aim to empower underserved communities, offering them access to finance and technical support. "It's an important program for us because we have realized... there are certain segments of the society... that tend to be underserved," Aranitasi explained, emphasizing the EBRD's focus on inclusive growth.
Regional Development and Connectivity
Central Asia holds a strategic position at the intersection of the Far East and Europe, echoing its historical significance along the ancient Silk Road. "Central Asia sits in the crossroads... So it's a very crucial point," highlights Aranitasi pinpointing the region's enduring importance in global connectivity.
This area's pivotal role is further emphasized by modern initiatives like the Trans-Caspian Sustainable Route or Corridor, which aims to enhance connectivity across several key countries. The corridor is set to pass through Uzbekistan, Kazakhstan, Azerbaijan, Georgia, reaching towards Western Europe or Turkey. This initiative underlines Central Asia's critical strategic location, as it is "basically the region is sitting in a very important strategic area," according to discussions on the project's scope and impact.
Upholding Transparency and Addressing Challenges
The conversation with Aranitasi shed light on the EBRD's rigorous system of checks and balances designed to ensure transparency in fund allocation. "Public projects will always run through public procurement, competitive tenders... There are a lot of checks for this in the private sector," he stated, ensuring that the significant financial inflow is managed effectively and responsibly.
However, the challenge of retaining skilled public sector employees remains a hurdle. Aranitasi candidly discussed the difficulty in sustaining a skilled workforce, pointing to the need for ongoing capacity building and strategic talent management to maintain project momentum.
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Looking Ahead: 2024 and Beyond
Looking forward to the new year, Aranitasi shared his excitement for upcoming renewable projects and the pioneering green hydrogen project slated for 2024. "We're looking forward to financing the first green hydrogen project in the region," he shared, showcasing the innovative direction of the EBRD's future initiatives in Uzbekistan.
The comprehensive strategy and the array of projects and initiatives spearheaded by the EBRD in Uzbekistan encapsulate a forward-thinking approach to development. By emphasizing renewable energy, environmental sustainability, economic inclusivity, and regional connectivity, the bank is not only contributing to Uzbekistan's growth but also setting a precedent for sustainable development in Central Asia.
As Uzbekistan embarks on these transformative projects, the foundation laid by the EBRD's investment is poised to catalyze significant economic, environmental, and societal benefits. Through meticulous planning, commitment to transparency, and strategic investment, the EBRD's engagement in Uzbekistan represents a beacon of sustainable development and an exemplar of international cooperation in action.
Watch the full interview here:
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