At the 2024 AIIB Annual Meeting in Samarkand, Uzbekistan, Ludger Schuknecht, Vice President and Corporate Secretary of the Asian Infrastructure Investment Bank (AIIB), offered key insights into how AIIB is supporting Uzbekistan’s growing economy through sustainable infrastructure investments. With over $3bn in active projects, AIIB is deeply involved in Uzbekistan’s energy, water, and transport sectors, providing critical financial support for the country’s development goals. Schuknecht emphasized the importance of multilateral cooperation and the bank’s commitment to promoting climate resilience, clean energy, and digital transformation in Uzbekistan.
Sustainable Infrastructure for All: A Central Theme
The theme of this year’s AIIB meeting, "Sustainable Infrastructure for All," reflects the bank’s focus on supporting inclusive development and addressing the unique infrastructure needs of its member countries. Schuknecht explained the theme, noting its alignment with AIIB’s mission. “Sustainable infrastructure for all reflects our wish to contribute to the development of our members, to improve prosperity and reduce poverty via the financing of infrastructure,” he said. He highlighted the specific relevance of this theme to Uzbekistan, which is experiencing rapid modernization in key sectors such as energy and transport.
AIIB’s involvement in Uzbekistan is substantial, with projects focused on clean energy leading the way. Schuknecht pointed to the Masdar solar energy project near Samarkand as a key example of AIIB’s efforts in the country. “We just visited a project near Samarkand, a big solar plant project by Masdar. That is one of our focal areas—energy,” he shared. With a pipeline of projects valued at over $3bn, AIIB is poised to play a significant role in Uzbekistan’s long-term growth.
Collaborating with Other Multilateral Development Banks
One of the standout features of AIIB’s work in Uzbekistan is its collaboration with other multilateral development banks (MDBs), including the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the World Bank. Schuknecht emphasized that joint efforts are critical for ensuring the success of large-scale infrastructure projects in Uzbekistan. “On many projects, we are working with other development bank partners. That’s the EBRD, the ADB, and the World Bank. We have co-financing arrangements,” he explained.
AIIB, as a relatively young bank, often partners with its more established counterparts to enhance the impact of its investments. “We are a young bank, so in most of these projects, it’s our senior partners that have typically started the projects, and we have joined them,” Schuknecht said. However, AIIB is aiming to expand its leadership role in future projects. “Over time, we hope that maybe it will also be the other way around,” he added, indicating the bank’s ambition to take on more leading roles in regional infrastructure development.
Schuknecht also praised Uzbekistan as a model for successful multilateral cooperation. “Uzbekistan is a showcase of good collaboration amongst development banks,” he said. This partnership model has enabled AIIB to work more efficiently and effectively in advancing Uzbekistan’s infrastructure goals.
Technology-Enabled Infrastructure and Digital Transformation
In line with AIIB’s commitment to modernizing infrastructure, Schuknecht discussed the importance of incorporating technology into projects. The bank refers to this approach as "technology-enabled infrastructure," which is central to its corporate strategy. “Digital transition, or what we call technology-enabled infrastructure, is indeed one of the pillars of our corporate strategy,” Schuknecht said. AIIB uses technology to enhance the efficiency and sustainability of its projects in Uzbekistan.
For instance, AIIB’s solar energy project in Samarkand integrates advanced digital systems. “Everything is monitored with digital means,” Schuknecht noted. “You can see where all the panels are working and where not. They are cleaned by robots.” This project not only contributes to Uzbekistan’s clean energy goals but also aligns with the country’s broader digitalization efforts.
Beyond energy, AIIB’s focus on technology extends to transport projects. “It’s not just about transport but about clean and digitally enhanced transport,” Schuknecht explained. AIIB is working to support Uzbekistan’s push for electric vehicles (EVs), which includes building the necessary infrastructure, such as roads and energy grids, to support this transition. “You need infrastructure in the first place—roads, electric energy, and a strong grid—to support the rise of EVs,” he remarked.
Modernizing Uzbekistan’s Energy Grid
One of the challenges facing Uzbekistan is its outdated energy grid, which has not kept pace with the country’s advancements in energy production. While the interviewer noted the grid’s outdated state, Schuknecht acknowledged that upgrading this infrastructure is on the government’s agenda and something AIIB is ready to support. “It is on the radar of the government,” he said, adding that AIIB’s role could include supporting the modernization of the energy grid to enhance energy efficiency and resilience.
Schuknecht also highlighted the importance of regional energy collaboration, noting AIIB’s involvement in the Rogun hydropower project in Tajikistan. This project, he said, would stabilize energy supply and provide clean energy to Uzbekistan and other Central Asian countries. “It’s a matter of the grid, but what is also very impressive here is that there is a regional strategy and regional collaboration,” he added, pointing to the broader regional impact of energy projects.
AIIB’s Strategic Focus in Central Asia
Looking ahead, Schuknecht outlined AIIB’s strategy for Central Asia and its evolving role in the region. The bank’s focus includes climate financing, strengthening private sector involvement, and promoting connectivity and technology-enhanced infrastructure. “Our strategy is to focus on climate financing and on strengthening private sector financing,” he explained, adding that these elements are key to ensuring AIIB remains a 21st-century development bank.
AIIB’s support for the private sector in Uzbekistan has been crucial, with the bank offering a range of financial instruments to facilitate infrastructure investment. “We are involved in direct project finance, like the Masdar solar energy project, but we are also involved in more indirect ways of financing and supporting the private sector,” Schuknecht said. The bank provides equity, guarantees, and financing for banks that lend to private companies, helping to spur private sector participation in infrastructure development.
Opportunities and Challenges Ahead
Schuknecht emphasized that while AIIB has made significant progress in supporting Uzbekistan’s development, challenges remain. “The biggest challenge is to fulfill our mandate, which is financing infrastructure for tomorrow for the prosperity and development of our members,” he noted. Despite the geopolitical complexities affecting global development, Schuknecht remains optimistic about the future. “The good thing is that the multilateral development finance world, all our members, and the global community know how important this is,” he said. “It has been largely protected and shielded from the turbulence that is around.”
As Uzbekistan continues its journey toward economic modernization, AIIB’s commitment to building sustainable, technologically advanced infrastructure will be critical to the country’s success. Through projects in clean energy, transport, and digital infrastructure, AIIB is helping to shape Uzbekistan’s future while fostering regional cooperation and sustainable development. With a focus on climate resilience, technology, and private sector engagement, AIIB is well-positioned to support Uzbekistan’s ambitious development goals for years to come.
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