Uzbekistan’s forthcoming membership in the Eurasian Development Bank (EDB) is set to enhance its access to regional investment and development opportunities. During an interview with Daryo's Tawney Kruger at the AIIB Annual Meeting in Samarkand, EDB Chairman Nikolai Podguzov focused on the potential for deeper cooperation between Uzbekistan and the bank. The EDB, a multilateral financial institution managing over $10bn in assets, supports critical infrastructure and development projects across Central Asia.
Uzbekistan’s Membership: A Catalyst for Investment
Uzbekistan is in the final stages of joining the EDB, a move that is expected to unlock a wave of investments aimed at supporting the country’s ambitious 2030 development goals. “We are in the final stage of completing all necessary procedures to include Uzbekistan as a member of our bank,” Podguzov confirmed. This membership is a crucial step for Uzbekistan, as it will allow the country to access a broader range of financial resources and expertise.
Currently, EDB’s involvement in Uzbekistan has been limited, with only one major investment in the country: a $400mn commitment to Navoi Mining and Metallurgical Company (NMMC). However, Podguzov stressed that this will change once Uzbekistan formally joins. “We expect to execute a substantial number of projects in different spheres, from irrigation and renewable energy to transport infrastructure, logistics, and digital technologies,” he noted. These projects, he explained, are aligned with Uzbekistan’s strategy to modernize its economy, improve infrastructure, and address critical challenges such as water scarcity.
Focus on "Glocalization" and Water Security
During the interview, Podguzov emphasized the importance of localizing global strategies, particularly in the context of Central Asia’s unique challenges. “We need to lend global views to the local context. That’s why my favorite word here is ‘localization,’ or as I like to call it, ‘glocalization,’” Podguzov stated with a smile. His emphasis on tailoring global solutions to regional needs is key to addressing issues such as water management and food security, both of which are central to the EDB’s mission in Uzbekistan and the wider region.
Water management, in particular, is a pressing concern for Uzbekistan and its neighbors. “For Central Asia, all challenges are connected. We have the Amudarya and Syrdarya rivers starting in Tajikistan and Kyrgyzstan, but a lot of water is consumed in Uzbekistan and Kazakhstan. The problem is that almost half of irrigation or drinking water can be lost before it reaches the consumer due to old infrastructure,” he explained.
To mitigate these issues, the EDB plans to invest in modernizing Uzbekistan’s irrigation systems and agricultural practices. “Once we implement digital technologies to prepare agricultural fields, you can save up to 10% of water usage just because the field is flat and optimized,” Podguzov noted. “These are not expensive projects, but they are very effective. Uzbekistan has already approved a water strategy based on these types of technologies, and we believe we can help the country avoid a potential water crisis by improving efficiency.”
Podguzov warned of the dire consequences if action is delayed. “If we don’t act now, the Fergana Valley could face desertification by 2028. This is not just a problem for Uzbekistan but for the entire region, and it could trigger mass migration if we don’t address it in time,” he said. By improving water infrastructure and collaborating on cross-border water projects, the EDB aims to prevent such crises.
Multilateralism and Regional Connectivity
A key theme of Podguzov’s vision for Uzbekistan and Central Asia is multilateralism, which he views as essential for tackling the region’s shared challenges. “The countries of Central Asia are interconnected, and the problems we face—water scarcity, energy shortages, food insecurity—cannot be solved by one country alone. We need to work together,” he stressed.
One such example is the proposed Kambarata 1 HPP in Kyrgyzstan, which will involve Uzbekistan and Kazakhstan in a three-way partnership. “This project should include both energy and water components,” Podguzov explained. “It must be designed to provide energy during the winter and water during the summer, benefiting all three countries. These types of multi-country projects are key to ensuring regional stability and development.”
Transport connectivity is another critical area where multilateral cooperation is vital. As Uzbekistan is a double-landlocked country, its ability to access global markets depends on cross-border infrastructure projects. “Uzbekistan needs routes that cross several countries to reduce the cost of transportation and improve regional trade,” Podguzov noted. The EDB is already working on projects aimed at improving logistics and transport corridors, which will facilitate economic growth not only for Uzbekistan but for the entire region.
Green Agenda and Renewable Energy
Podguzov also touched on the growing importance of the green agenda in the EDB’s strategy, particularly in Uzbekistan, which is positioning itself as a hub for renewable energy. “The green agenda is part of the global agenda, but it needs to be localized,” Podguzov reiterated. “In Almaty, for example, we are switching one of the largest power plants from coal to gas. While some might not consider this a ‘green’ project under global standards, it significantly reduces pollution and is better for the environment.”
The EDB is keen to replicate similar projects in Uzbekistan, particularly in solar and wind energy. “We are already working on solar power plants in Armenia, Kazakhstan, and Kyrgyzstan, and we are eager to set up similar projects in Uzbekistan,” he revealed. “Uzbekistan is really pushing to become a regional hub for renewable energy, and we are excited to be part of that journey.”
Uzbekistan’s ambitious plans to build a green data center and explore hydrogen energy also caught Podguzov’s attention. “President Mirziyoyev mentioned a green data center during the AIIB meeting, and there are plans for hydrogen projects near Tashkent. These are innovative ideas, and we look forward to supporting Uzbekistan in these endeavors,” he said.
A Path Forward: Cooperation with AIIB and Other MDBs
Reflecting on the broader context of multilateral cooperation, Podguzov emphasized the importance of collaboration between multilateral development banks (MDBs) like the EDB and the Asian Infrastructure Investment Bank (AIIB). “We are all part of a big family of MDBs, and every member has a role to play,” he said. He proposed that larger institutions like the World Bank, ADB, EBRD, IFC and AIIB could work with regional partners such as the EDB to share risks and accelerate investments. “If AIIB had local partners in Central Asia, the Middle East, or Latin America, it would speed up the process and make investments more effective,” Podguzov suggested.
This collaboration could also help reduce unhealthy competition between MDBs, which sometimes hampers progress. “Healthy competition is fine, but destructive competition doesn’t benefit anyone. By working together, we can focus on what really matters—improving people’s lives,” he concluded.
As Uzbekistan moves toward full membership in the Eurasian Development Bank, it is clear that the country’s participation will open up new avenues for investment and regional cooperation. With projects already in the pipeline, from renewable energy to water management and transport infrastructure, the EDB is poised to play a pivotal role in shaping Uzbekistan’s future. For Podguzov and the bank, this partnership is about more than just financial investments; it’s about building sustainable growth for the entire region.
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