The Geopolitical Battle for Control Over Transportation Routes in Central Asia
Russia and Kazakhstan may be nominal allies, but their geoeconomic interests are not always aligned. As Astana seeks to develop the Middle Corridor – a transportation link connecting China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia, bypassing Russia – Moscow reportedly aims to build a trade and logistics route that would connect Russia and Kyrgyzstan, thereby circumventing Kazakhstan. While various regional actors and international institutions actively invest in the Middle Corridor, also known as the Trans-Caspian International Transportation Route (TITR), a potential route linking Russia and Kyrgyzstan, through Uzbekistan and Turkmenistan, remains merely an idea. From the geopolitical perspective, the TITR is seen as an alternative to reach European and international markets and bypass Russia. But what is the primary goal of the Russia-Kyrgyzstan route? Although both Kyrgyzstan and Kazakhstan are members of the Russian-led Eurasian Economic Union, queues of trucks at the Kyrgyz-Kazakh state border seem to have become a norm. Bishkek accuses Kazakhstan of “artificially creating obstacles at the border to weaken competition from Kyrgyzstan”, while the Kazakh authorities claim that Kyrgyz truckers are “unwilling to comply with Astana’s requirements and submit fraudulent documents for cargo.” Since Kyrgyzstan’s main connection with Russia – the major market for its agricultural products – goes through Kazakhstan, it is Astana that has the upper hand over Bishkek. From a purely economic perspective, a new route, including sea transport across the Caspian Sea, would enable faster delivery of vegetables, fruits, as well as other goods from Kyrgyzstan to Russia. However, it remains highly uncertain if Uzbekistan and Turkmenistan, as transit countries, are genuinely interested in this project. “Both nations are far more interested in East-West trade, actual supply chain relocations into the region, and new gas contracts with the West,” Samuel Doveri Vesterbye, Managing Director of the European Neighborhood Council, told The Times of Central Asia. In his view, a Kyrgyzstan-Russia corridor would offer a limited amount of trade, due to the sanctions the West imposed on Moscow over its actions in Ukraine. But in spite of that, Kyrgyzstan, like all countries, tries to be part of any connectivity corridor. “There is a lot of ‘corridor competition’ at the moment. Most of it is bluff. It is important to look at which projects are being built and how much investments is going into them. The Russia-Kyrgyzstan corridor, at present, is more hot air than reality. There is no funding from the United States, the European Union, China or Turkey. Also, major players like the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) do not seem interested in funding the construction of this route. Therefore, its lifespan and potential look rather limited,” Vesterbye stressed. European institutions seem interested in further development of the Trans-Caspian International Transportation Route. From the European Union’s perspective, Russia’s invasion of Ukraine has increased the need to find alternative, reliable, safe and efficient trade routes between Europe and Asia. That is why Brussels is reportedly willing to invest €10 billion ($10.5 billion) into the Middle Corridor. For Moscow, on the other hand, a transport corridor through Kyrgyzstan, Uzbekistan, and Turkmenistan serves as a strategic tool. According to Rahimbek Abdrahmanov, a senior economist at the Center for Political and Economic Research, this project is particularly important given the changing geopolitical situation and the potential risks of disruptions in transportation through Kazakhstan. “It undermines Kazakhstan’s economic position, which has significantly strengthened in recent years, partly due to the redirection of logistics flows through its territory following the outbreak of the war in Ukraine,” Abdrahmanov told The Times of Central Asia, emphasizing that weakening the largest Central Asian country aligns with Russia’s traditional approach of preventing the economic and military-political empowerment of countries within its sphere of influence. As he sees it, Russia has historically always sought to limit the economic and political independence of countries it considers part of its geopolitical orbit. That is why Astana likely views Moscow’s plans to construct a bypass corridor with caution and concern. “As the largest country in the region and a key transit hub, Kazakhstan traditionally plays an important role in regional trade. A new corridor bypassing its territory could reduce Kazakhstan’s influence as the main transit route for goods moving between Russia, Central Asia, and China,” Abdrahmanov stressed, pointing out that the bypass route could also mean reduced transit revenues for Astana and a diminished role in regional economic processes. For Kyrgyzstan, on the other hand, the new route means reducing its dependency on Kazakhstan and strengthening its economic ties with Russia and other partners in Central Asia. For Uzbekistan, according to Abdrahmanov, the new link can help Tashkent achieve its goals of improving transport infrastructure, gaining access to international markets, and strengthening trade ties with Russia. In his view, Turkmenistan, despite its policy of permanent neutrality, is unlikely to obstruct the project. “As a result, the new route could strengthen Russia’s ties with Central Asia and align with its strategy of diversifying transport flows under the pressure of Western sanctions. The regional actors, maintaining neutrality on this issue, remain important partners for Moscow,” Abdrahmanov concluded. Although the corridor has the potential to become a vital trade and logistics route linking Central Asia and Europe through Russia, as long as relations between Moscow and the West remain in a ‘new Cold War mode’ the Middle Corridor is likely to remain the most viable option for Central Asian nations to increase their international significance and attract investment.
End of the Trolleybus: Bishkek Authorities Abandon Eco-Friendly Transport Option
Bishkek authorities are phasing out trolleybuses in favor of buses, sparking criticism from residents and environmental advocates. Activists allege that municipal workers are dismantling trolleybus infrastructure, prompting lawsuits and complaints to the European Bank for Reconstruction and Development (EBRD), which funded trolleybus purchases for the city.
The Shift to Electric Buses
In defense of the decision, Mayor Aibek Junushaliyev argued that trolleybuses no longer meet the city’s needs, citing frequent breakdowns and their inability to operate effectively in Bishkek’s outskirts. Instead, the city plans to transition to large electric buses, with 120 units ordered from China’s Ankai Automobile Co., set to arrive in mid-2025. For now, public transport is provided by gasoline and gas-powered buses. The existing trolleybuses are being transferred to Osh, with approximately 100 slated for relocation.
The Bishkek Trolleybus Department signed a contract with Ankai in 2022 to deliver the electric buses and charging infrastructure. The move is supported by funding from the Asian Development Bank (ADB), which has allocated $50 million to the project.
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Photo: Bermet Borubayeva[/caption]
Activists Push Back
Public opposition to the trolleybus phaseout is growing. Activist Bermet Borubayeva insists that Bishkek officials have no legal authority to transfer the trolleybuses. She highlighted that many were purchased using a $23.5 million EBRD loan ratified by Kyrgyzstan’s parliament, which stipulated that the vehicles must remain in Bishkek.
“Citizens repay these loans through taxes, and without the EBRD’s consent, the municipality cannot transfer the trolleybuses elsewhere,” Borubayeva explained.
She accused city officials of deliberately damaging trolleybus infrastructure. “They cut the wires in various places, rendering the system unusable. This violates both domestic and international laws,” she said. Despite these challenges, Borubayeva noted that activists have mobilized a significant resistance movement to preserve the trolleybuses.
Environmental and Social Concerns
Trolleybuses carried 20 million passengers last year without producing carbon emissions, making them vital to Bishkek’s eco-friendly public transportation. In a city grappling with severe air pollution, critics argue that phasing out trolleybuses exacerbates environmental problems.
Borubayeva also questioned the city’s claims about ADB funding. “The mayor’s office says the electric bus project will replace the entire trolleybus fleet, but ADB documents indicate that only 20 trolleybuses are affected. Either the mayor’s office is misleading us, or the ADB is,” she asserted.
According to ADB’s memorandum, the project includes a $59 million budget, with $50 million provided as a credit line and $15 million as a grant. The funds are primarily for electric bus procurement, along with infrastructure construction and consulting services. However, ADB representatives clarified to activists that the funding is for additional infrastructure, not an outright replacement of trolleybuses.
Public Transportation in Crisis
The dismantling of the trolleybus system has left Bishkek residents struggling with inadequate transportation. Buses have yet to fill the gap, leading to mounting public frustration.
“We must address the public transportation crisis urgently,” MP Dastan Bekeshev said during a parliamentary session. “People cannot get to work or school on time. The trolleybuses need to be brought back into operation.”
As Bishkek waits for the promised electric buses, the city’s transportation woes persist, leaving residents and activists fighting for a sustainable and functional solution.
War in Ukraine: Kazakhstan, Kyrgyzstan Tell Citizens to Step Up Safety
Some Central Asian countries are urging their nationals to consider leaving Ukraine as the war with Russian forces escalates there. “Due to the increased frequency of artillery shelling and airstrikes in Ukraine, the Embassy of the Republic of Kazakhstan in Ukraine strongly advises its citizens to consider leaving areas close to active combat zones or leaving Ukraine altogether for safety purposes,” the embassy said on Telegram on Wednesday. It urged citizens “to take air raid warnings seriously, immediately seek shelter, adhere to personal safety measures, and follow the recommendations of official authorities.” Kazakh citizens can travel home from Ukraine by using land routes through Poland or Moldova, and then boarding a commercial flight, according to the embassy. It said a Schengen visa is required for entry into Poland and no visa is needed for Moldova. Citing its embassy in Ukraine, Kyrgyzstan’s Ministry of Foreign Affairs said “a massive attack was carried out on the territory of the Kyiv region using attack unmanned aerial vehicles” on Wednesday. The ministry recommended that Kyrgyz citizens currently in Ukraine “strengthen their personal security measures and, if necessary, leave the territory of Ukraine until the situation has fully stabilized.” The U.S. Embassy in Kyiv said it was closing on Wednesday as a precaution after receiving “specific information of a potential significant air attack” and that embassy employees were instructed to shelter in place. Some other Western embassies also closed temporarily. Russia launched a full-scale invasion of Ukraine in February 2022 and the war has recently escalated. North Korean troops have deployed into ally Russia’s territory near the border, including in the Kursk region of Russia where Ukrainian troops have seized territory; the United States has allowed Ukraine to use U.S.-supplied, longer-range missiles to attack targets in Russia; and Russian President Vladimir Putin has issued another round of warnings about the possible use of Russia’s nuclear arsenal, in an apparent effort to deter more Western support for Ukraine.
Kyrgyzstan’s Largest Hydropower Plant Boosts Generating Capacity
On November 19, Kyrgyzstan launched the modernized hydroelectric generating unit No. 1 at the Toktogul Hydroelectric Power Plant (HPP), the country’s largest power facility. Located on the Naryn River, the Toktogul HPP generates approximately 40% of Kyrgyzstan’s electricity. The modernization of hydroelectric unit No. 1 began in March 2024 and has increased its generating capacity by 60 MW. Prior to this upgrade, the Toktogul HPP had a total capacity of 1,200 MW, with each of its four units producing 300 MW. Two units had already been upgraded in previous phases, collectively adding 120 MW to the plant's total capacity. The reconstruction of the fourth and final hydroelectric unit is scheduled for 2025. Once the modernization project is complete, Toktogul HPP will gain an additional 240 MW of generating capacity, extending its service life by 25–30 years. The $210 million rehabilitation project is funded by a $110 million loan from the Asian Development Bank (ADB) and $100 million from the Eurasian Fund for Stabilization and Development (EFSD). With a total volume of 19.5 billion cubic meters, the Toktogul HPP reservoir plays a dual role in meeting Kyrgyzstan's energy demands and providing essential irrigation water to Kazakhstan and Uzbekistan. During the winter, increased water releases are used to generate electricity for Kyrgyzstan, while summer releases support irrigation for southern Kazakhstan’s dry regions. As of November 19, 2024, the Toktogul reservoir contained 12.991 billion cubic meters of water, compared to 11.694 billion cubic meters on the same date in 2023. The reservoir currently receives 246 cubic meters of water per second and releases 488 cubic meters per second. Despite this year’s higher water levels, Kyrgyzstan continues to face electricity shortages, according to Energy Minister Taalaibek Ibrayev. Toktogul HPP's modernization and efficient management of water resources remain critical to addressing these challenges and ensuring regional energy and water security.
Russia Looking to Export Gas to China via Kazakhstan
Russia continues to try to reorient its natural gas exports from Europe to Asia and is planning a new pipeline route to China that would pass through Kazakhstan. Kazakhstan stands to benefit not only from transit fees, but could also import some Russia gas for regions in northeastern Kazakhstan that are desperately in need of more energy sources. The Russian plans are bad news for Turkmenistan as China is Turkmenistan’s main gas customer and Turkmen authorities were hoping to sell China even more gas. On November 15, Russian Deputy Prime Minister Aleksandr Novak mentioned the pipeline plan on the sidelines of a Chinese-Russian forum in Kazan, Russia. Novak said such a project is still only being discussed, but Russian media outlet Kommersant wrote on November 18 that there are already three options for the pipeline. All three possibilities pass though northeastern Kazakhstan, but Kazakhstan’s level of participation in the pipeline is different in each variation. One of the projects would require Kazakhstan to build a pipeline for gasification of the northeastern Pavlodar, Abai, and Karaganda provinces. A second proposal would include only the Abai and Zhetysu provinces. Russian gas giant Gazprom’s financial obligation also changes depending on the pipeline project selected. The most expensive option for Gazprom would cost more than $10 billion to construct and would not operate at full capacity until 2034. All versions foresee at least 35 billion cubic meters of Russian gas (bcm) shipped via the pipeline with Kazakhstan receiving some 10 bcm, which would greatly alleviate recent power shortages in northeastern Kazakhstan. Despite Novak saying the pipeline project was only being discussed, Kazakhstan and Russia appear well along in their planning. In early May, Kazakh Ambassador to Russia Duaren Abayev gave an interview to Russia’s TASS news agency and mentioned there was a “roadmap” for supplying 35 bcm of gas to China via Kazakhstan. Russia already exports gas to China via the “Sila Sibiri” (Power of Siberia) pipeline and expects that in 2024 the pipeline will for the first time reach its full capacity of 38 bcm. Construction of Sila Sibiri-2 with a planned capacity of some 50 bcm has been delayed due to China’s reluctance to loan Russia money for construction, differences over price, and China’s increasing purchases of liquefied natural gas (LNG). Novak commented on Sila Sibiri-2, saying the pipeline project involving Kazakhstan was separate and the Russian government will continue to negotiate with China about construction of Sila Sibiri-2. Russia is seeking to replace its former main customer, the European Union. Prior to the Kremlin launching its full-scale war on Ukraine in February 2022, the EU was buying between 150-160 bcm of Russian gas annually. The EU sharply cut back on Russian gas imports in response to the invasion of Ukraine and in 2023 imported less than 43 bcm. Russia’s pivot to Asia for gas exports targets the Chinese market, but Gazprom is looking to take any possible Asian customers and has found some in Central Asia. Russia’s surge into the Asian gas market comes at the expense of Turkmenistan, the country with the world’s fourth largest gas reserves. Kazakhstan and Uzbekistan have traditionally been gas exporters, but both countries have suffered severe gas shortages in recent years, particularly during the winter, and are focused on using domestic gas for domestic consumption. Both were in talks with Turkmenistan to buy Turkmen gas. Uzbekistan signed a deal in December 2022 to buy some 1.5 bcm of Turkmen gas and signed a short-term contract for 2 bcm in August 2023. Gazprom, though, has swooped in and signed deals with both Kazakhstan and Uzbekistan, supplying Kazakhstan with some 7.25 bcm and Uzbekistan with 1.22 bcm in 2023. Gazprom later signed a contract to annually supply Uzbekistan with up to 11 bcm as early as 2025. Turkmenistan’s contract to sell some 5.5 bcm of gas to Russia just expired and will not be renewed, forcing Turkmenistan to arrange a complicated gas swap deal involving Iran to sell some 10 bcm to Iraq. China has been Turkmenistan’s largest gas customer for 15 years, and with the expiration of the Turkmen-Russian gas contract, is really the only significant customer for Turkmen gas. In recent years, China has been purchasing up to some 35 bcm annually, but this agreement is now in jeopardy. One of the possible routes for shipping Russian gas to China involves using the pipelines that carry gas from Turkmenistan to China (Central Asia-China pipeline). The Kommersant article reported that some 25% of those three pipelines’ capacity is currently not being used. Since the pipelines pass through the territories of Uzbekistan and Kazakhstan, both of those countries can export up to 10 bcm each of their own gas. However, Kazakhstan and Uzbekistan now need to import Russian gas to meet domestic needs, and neither is exporting much of their gas to China. Turkmenistan has more than enough gas to fill the spare capacity, but seems to have been outmaneuvered by Russia. If China decides to buy 35 bcm of Russian gas through the Central Asia-China pipeline, Turkmenistan’s share of gas shipments could drop to 20-30 bcm. Turkmenistan has also been hoping for years that the fourth strand of the Central Asia-China pipeline would be realized. Line D from Turkmenistan would pass through Uzbekistan, Tajikistan, and Kyrgyzstan before reaching China and would carry 30 bcm of solely Turkmen gas. China now has a choice; if Beijing opts to boost gas imports via pipeline from the east, Gazprom probably will need a loan from China, but will also likely spend some of its own money from the time construction starts on pipelines to the Chinese border. Turkmenistan and the other three Central Asian countries through which Line D is planned to pass will all need substantial loans from China, covering nearly the entire cost of pipeline construction. Turkmenistan paid for the construction of its sections of Lines A, B, and C, as well as Chinese development of gas fields in Turkmenistan, through its gas shipments to China. Beijing simply took some of the Turkmen gas as payment for the loans and could do so again, not only in the case of Turkmenistan, but also with Russia. It will be more difficult, especially for Tajikistan and Kyrgyzstan, to repay Chinese loans for construction of the pipeline through their territories. Both countries are already deep in debt to China for other projects China has funded and built during the last 20 years. China has no urgent need for more gas and has already diversified its sources of gas import both for pipelines - there is also a pipeline from Myanmar - and LNG suppliers. That leaves China in an excellent position to bargain over the price of either Russian or Turkmen gas, but leaves Turkmenistan at a disadvantage that could see its gas revenues plummet if Russia’s plan for exporting gas through Kazakhstan is accepted by China.
Unified Digital Health System to Transform Kyrgyzstan’s Healthcare
The United Nations Office in Kyrgyzstan, in collaboration with the Ministry of Health, has launched a program to create a unified digital health system in the country. The Ministry of Health stated that the digitization initiative aims to harmonize Kyrgyzstan’s healthcare system. By providing easier access to medical information, the program is expected to expedite the delivery of medical services, even to the most remote and underserved communities. As part of this effort, specialists will enhance government e-services and telemedicine. According to the UN, the project will require an investment of over $4 million, and is scheduled to run until 2027. “One of the key features of the program is to improve the digital health profile, giving citizens access to information about their health,” the Ministry of Health noted in a press release. The authorities plan to integrate a unified registry of citizen vaccinations, which currently holds approximately 3 million records, with a national electronic medical records platform. The program will also focus on supporting vulnerable groups. For example: • 120,000 people will receive digital disability certificates; and • 280,000 people will gain access to digital sick leave documentation, reducing hospital queues and making medical services faster and more convenient. Telemedicine will be expanded to 10 districts, offering medical consultations to more than 700,000 children under the age of 14. Additionally, 60 healthcare facilities will provide specialized care to 140,000 mothers and newborns, all connected to the unified electronic health records (EHR) platform. “This digital health initiative is an important step forward for Kyrgyzstan. By improving access to important medical information, we can make healthcare more efficient and improve outcomes for all,” said Bakyt Dzhangaziev, Deputy Minister for Digital Development of Kyrgyzstan. UN Resident Coordinator in Kyrgyzstan Antje Grave added: “Digital technologies are transforming our world, opening up new opportunities. It is necessary to bridge the digital divide between countries, promote the goals of sustainable development, and ensure that no one is left behind.” The program is being implemented with support from international organizations, including the World Health Organization (WHO), UNICEF, the UN Population Fund, and the UN Development Programme (UNDP).
Climate Crisis in Central Asia: Kyrgyz Geologist Spells Out Threat of Disappearing Glaciers
Kyrgyzstan's President Sadyr Japarov has warned at the COP29 climate summit in Baku that Kyrgyzstan’s glaciers have shrunk by 16% over the past 70 years, a trend that could accelerate if immediate action is not taken. Glaciers are a crucial source of drinking water for Kyrgyzstan and the broader Central Asian region. Japarov emphasized that the continued reduction in glacier size will lead to water scarcity and bring severe social, economic, and environmental consequences. “Our region is among the most vulnerable to global warming. By 2100, we may lose more than half of all glaciers,” he said, stressing the need for regional cooperation on green projects to mitigate the impacts of climate change. Kyrgyz glaciologists at the Institute of Geology have been monitoring the region’s glaciers since the early 1940s. Senior researcher Ilya Mezgin explained the alarming rate of glacier loss. “If you look at maps from 1943, two-kilometer glaciers were visible on the Chatkal Ridge in western Kyrgyzstan. Today, they’ve disappeared entirely from satellite images,” Mezgin told The Times of Central Asia. The melting has worsened over time. In 1985, Kyrgyzstan had 8,200 glaciers. That number has since dropped to just 6,500. Glaciers at lower altitudes are melting the fastest, while larger glaciers are expected to last until 2100. Mezgin noted that western glaciers in the Talas region are particularly at risk of disappearing. The mountains of the Tian Shan are composed in the main of crystalline and sedimentary rocks of the Paleozoic Era (i.e., about 540–250 million years ago). growth of the Tian Shan continued until 250 million years ago, when a large continental plate, known as Tarim, collided with Asia. The State Agency for Geology of Kyrgyzstan has suggested that glaciers can both retreat and regrow over time. However, the current trend is one of significant retreat.
Fueling Growth: IFC Strategic Initiatives for Sustainable Development in Central Asia – An Interview With Hela Cheikhrouhou
With its headquarters in Washington, D.C. the International Finance Corporation (IFC) was established in 1956 as the private-sector arm of the World Bank. The institution offers advisory, and asset-management services to promote investment in developing countries. Recent ventures in Central Asia include solar power projects in Uzbekistan and Kyrgyzstan, and an entrepreneurship scheme for women and young people in Tajikistan. TCA spoke with Hela Cheikhrouhou, IFC Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan about the IFC’s work in Central Asia. TCA: Can you please give us an overview of IFC's performance in Central Asia for fiscal year 2024 (July 1, 2023, to June 30, 2024)? IFC had a pivotal year in Central Asia, making strides in sustainable development and inclusive growth across the region. Our efforts concentrated on climate finance, infrastructure, agriculture, and supporting smaller businesses. By coupling investments with advisory support, we helped expand the role of the private sector, creating jobs, promoting financial inclusion, strengthening infrastructure, and supporting the region's green transition. In the fiscal year 2024, IFC committed over $1 billion to Central Asia. This includes about $400 million in long-term financing from our own account, $600 million in mobilization, and $35 million in short-term trade and supply-chain finance to facilitate trade flows. Alongside these financial commitments, we engaged in advisory projects focused on improving financial inclusion, developing innovative public-private partnerships (PPPs), and advancing climate initiatives and gender equality. Our results this year underscore our commitment to fostering sustainable, inclusive growth, and enhancing the resilience and sustainability of Central Asian economies. TCA: Can you highlight some of the IFC’s key achievements in Central Asia this year? In addition to the strong financial commitments mentioned earlier, IFC expanded its presence in various sectors, including finance, capital markets, renewable energy, agriculture, and infrastructure. Through our advisory services, we helped structure impactful PPPs at the sectoral level. A major focus this year has been strengthening local financial markets. IFC invested $228 million across ten financial institutions in Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. Up to half this amount was dedicated to supporting women entrepreneurs and rural enterprises. We also helped these financial institutions expand portfolios related to their micro, small, and medium enterprise (MSME) businesses, advance climate finance, foster digital transformation, and issue the region’s first sustainability, social, and green bonds. Supporting MSMEs has enabled entrepreneurs to grow their businesses and generate employment. In the past fiscal year alone, IFC-supported projects created around 35,000 direct jobs, including opportunities for over 13,000 women across the region. These efforts have been further bolstered by targeted investments and projects in individual countries across the region. In Uzbekistan, IFC, together with the World Bank, financed a new solar plant equipped with the country’s first battery energy storage system. Once completed, the plant is expected to provide electricity access to around 75,000 households in the Bukhara region. As part of its broader support for the Uzbek government’s efforts to reform its chemical sector, IFC assisted the State Asset Management Agency in privatizing Ferganaazot, a local nitrogen-based fertilizer producer. The asset was acquired by Indorama Corporation, an experienced international investor and partner of IFC, which plans to invest around $100 million in modernizing and upgrading Ferganaazot’s production facilities. Additionally, we financed Anglesey Food LLC, the country’s leading grocery retailer operating the Korzinka chain, to support the construction of a state-of-the-art ‘green’ distribution center, facilitating the expansion of Korzinka’s retail store network. With IFC’s support, the company recently became the first in Central Asia to obtain EDGE gender certification, marking a significant milestone in promoting gender equality in the workplace. In Tajikistan, IFC invested in the nation’s first green bond, issued by Eskhata Bank, which will support climate-smart initiatives and MSMEs engaged in environmental projects. As a strategic advisor, IFC assists the Tajik government in structuring a PPP to mobilize private sector expertise and capital for its inaugural 200-megawatt solar plant in the Sughd region. This landmark project is expected to significantly enhance Tajikistan’s solar energy capacity, mobilizing up to $200 million in private financing. In Kazakhstan and the Kyrgyz Republic, IFC is not only focused on enhancing financial inclusion but also actively pursuing a diverse range of opportunities. These initiatives include PPPs in areas such as drinking water supply, renewable energy – including networked geothermal solutions for heating and cooling - railway projects as part of the Middle Corridor development, and introducing the first municipal green bonds in Central Asia. Additionally, IFC supports Kazakhstan's accelerated methane abatement efforts in line with the Global Methane Pledge. These achievements underscore IFC's commitment to driving sustainable and inclusive development in Central Asia. We will continue collaborating closely with our partners to foster the region's growth and resilience in the years ahead. TCA: What are some of the opportunities and challenges in Central Asia? Central Asia has made impressive progress in its development over the past two decades, underpinned by robust growth, averaging more than 6% per annum. Going forward, the economic opportunities for Central Asian countries are ample. By embracing economic openness, fostering mutually beneficial cooperation, and coordinating efforts, the region can achieve a qualitative breakthrough in its development while reducing vulnerability to external shocks through the promotion of internal growth drivers. Looking ahead, Central Asia's strategic significance in the Eurasian space is poised to grow, positioning it as an important player for neighboring countries and key economic partners. The region has a historic opportunity to leverage its transit position and expand into external markets through emerging international transport corridors. With its abundant energy resources and considerable potential for renewable energy, implementing energy projects – particularly in renewable sectors – will enhance the energy mix and create opportunities for future electricity exports. However, unlocking the region's economic potential requires coping with several challenges. These include landlocked geography, reliance on commodity exports, low levels of financial development, and exposure to the negative impacts of climate change. While overcoming these obstacles is crucial, it is equally important to seize opportunities in the global economy and develop and adapt digital and green technologies. Going forward, creating new and better jobs is critical for Central Asia. As young countries, the region’s states need to create many jobs quickly. For example, by 2030, Uzbekistan will have the fifth-largest labor force in the Eastern Europe and Central Asia (ECA) region. The Kyrgyz Republic’s potential workforce is growing at about 2% per annum – faster than some of its neighbors in the ECA region. Job creation, though, has not kept pace with the increasing population. Job creation offers the surest path out of poverty, and I want to further collaborate with partners in Central Asia to ensure we achieve progress on this agenda. Addressing infrastructure bottlenecks in transport, water, and energy will enhance productivity, expand trade and economic partnerships with the neighboring countries, and diversify production and exports. Improving governance and institutional environment remain vital for accelerating structural economic transformation across the region. Central Asia is highly vulnerable to climate change, which poses risks to food security, water supply, and the energy mix. Biodiversity conservation is also a pressing concern. To address these issues, the region must undergo a green transformation by investing in resource-saving innovations, modernization of water and agriculture sectors, and reverse desertification. Collaboration among Central Asian countries is essential for overcoming structural development challenges, particularly in enhancing transport and logistics infrastructure and mitigating climate-related risks. Joint efforts in the water and energy sectors are equally vital given the increased pressure on energy systems and shared river basins. TCA: Looking ahead, what are IFC's priorities for Central Asia in the next fiscal year? In recent years, we have intensified our efforts in the region, maintaining a strong focus on key development challenges such as limited access to finance, significant infrastructure gaps, weak diversification, and unlocking the potential of the private sector. Simultaneously, we are committed to addressing cross-cutting issues like climate change and gender inequality. IFC aims to deepen its engagement in Central Asia through a combination of investments and advisory services, anchored around three strategic pillars: activating private sector development, enhancing infrastructure connectivity, and facilitating a green transition. While these are common themes across the region, we customize our approach to align with each country's unique profile and circumstances, informed by thorough research and analysis and discussions with governments, partners, and clients. We look forward to continuing our collaboration with governments, investors, and development partners to help Central Asia achieve its ambitious development goals and promote sustainable and inclusive growth. This effort will be transformative not only for the region’s economies but also for its people.
Sunkar Podcast
Kazakhstan’s Return to Nuclear Power
