The European Bank for Reconstruction and Development (EBRD) set an investment record in Central Asia by investing €2.26 bn across 121 projects in 2024, nearly doubling its annual commitments compared to 2023. This record investment, combined with €784 mn mobilized from co-financiers, brought the total financial impact to over €3 bn in the region’s real sector.
Uzbekistan and Kazakhstan emerged as the primary beneficiaries, receiving €938 mn and €913 mn, respectively. These contributions elevated them to the EBRD’s fifth and sixth largest investment destinations globally. Other regional allocations included €264 mn for Mongolia, €88 mn for Tajikistan, and €52 mn for the Kyrgyz Republic.
During the 2024 Tashkent International Investment Forum, EBRD president, Odile Renaud-Basso, emphasized the strategic importance of Uzbekistan within the EBRD’s investment portfolio, noting that the Bank has consistently allocated between $700-800mn annually, making Uzbekistan one of EBRD's top six countries for investment. This substantial funding, 70% of which primarily targets the private sector and the burgeoning green sector .
“Uzbekistan is a very important country for EBRD,” she said, underscoring its role in regional stability and development.
Supporting Sustainability and Innovation
More than 60% of the funds supported sustainable infrastructure projects, while 58% were directed toward green economy initiatives. The EBRD financed several groundbreaking projects:
- Green Hydrogen in Uzbekistan: €59 mn to ACWA Power to build Central Asia’s first green hydrogen facility, aiding decarbonization in fertilizer production.
- Wastewater Infrastructure in Kazakhstan: €96.4 mn for a new wastewater treatment plant in Aktobe, marking the EBRD’s largest municipal project in the region.
- Green Bonds in Mongolia: €11.3 mn for Khan Bank’s issuance of the first local commercial bank green bond on the Mongolian Stock Exchange.
- Critical Raw Materials in Kazakhstan: An equity investment in Sarytogan Graphite Limited to support the graphite mining sector.
- Partial Privatization of Air Astana: €38.1 mn to support Kazakhstan’s flagship carrier through its initial public offering.
Expanding Renewable Energy and National Grids
The EBRD reinforced national energy grids in Kazakhstan and Uzbekistan to integrate renewables and improve efficiency. In Kazakhstan, €252 mn was allocated to the national operator KEGOC to build 600 km of transmission infrastructure. Uzbekistan received €60.3 mn for a 230 km transmission line in the Navoi region, reducing outages and grid bottlenecks.
Uzbekistan also saw the launch of a €205 mn solar power and battery storage project in Tashkent, one of the EBRD’s largest energy storage initiatives. The Kyrgyz Republic and Tajikistan similarly benefited from grid upgrades and water conservation projects.
Investments in Infrastructure and SMEs
The EBRD supported critical infrastructure, including:
- €216 mn for road rehabilitation and a bridge in Uzbekistan’s Khorezm region.
- €365 mn for Central Asia’s first major public-private partnership (PPP) hospital in Kokshetau, Kazakhstan.
- €39.2 mn for a 250-bed hospital in Darkhan, Mongolia.
The Bank’s SME support programs reached over 450 businesses through advisory services and €28 mn in direct financing, while thousands benefited from training and mentorship initiatives.
Long-Term Impact
Since starting operations in Central Asia 30 years ago, the EBRD has financed over €21.5 bn across 1,163 projects, focusing on green and inclusive development. In 2024, it crossed cumulative investment thresholds of €10 bn in Kazakhstan and €5 bn in Uzbekistan.
How does it compare to other Development Banks active in the region?
In 2024, several major development banks made substantial investments in Central Asia:
- International Finance Corporation (IFC): Committed $1.04 bn in fiscal year 2024, focusing on climate finance, infrastructure, agriculture, and support for micro and small businesses.
- Asian Infrastructure Investment Bank (AIIB): Approved a multiphase program with a total financing envelope of $500 mn, including an initial $270 mn loan to support the Rogun Hydropower Plant Project in Tajikistan.
- Asian Development Bank (ADB): While specific 2024 investment figures for Central Asia are not detailed in the provided sources, ADB has historically been a significant financier in the region. A rough estimate indicates that investment and grant funding approved by the Asian Development Bank (ADB for projects in Uzbekistan and Tajikistan amounts to $593.67 mn in 2024. This includes $492 mn in loans for Uzbekistan’s green economy transition and railway electrification projects, as well as $101.67 mn in grants for Tajikistan’s green road corridor development and power system reconnection to the Central Asian Power System.
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