Page 236 – The Times Of Central Asia

19 Jun 2025

Environment, Uzbekistan Environment, Uzbekistan

UNDP and Japan Launch Initiative in Uzbekistan to Reduce Emissions and Boost Energy Efficiency

June 19, 2025
By Sadokat Jalolova

Uzbekistan has launched a new international initiative aimed at cutting greenhouse gas emissions and improving energy efficiency in public infrastructure. Spearheaded by the United Nations Development Programme (UNDP) in partnership with the Government of Japan and Uzbekistan’s Ministry of Economy and Finance, the project targets key sectors including schools, hospitals, kindergartens, and public transportation.z

According to UNDP Uzbekistan, the initiative seeks to bolster the country’s resilience to energy-related challenges driven by increasingly extreme weather conditions. Many public buildings in Uzbekistan suffer from outdated infrastructure and significant energy loss, resulting in elevated emissions and burdensome utility expenses. The project will focus on upgrading facilities with thermal insulation, energy-efficient windows, heat pumps, and solar panels to address these inefficiencies.

A central objective is to enhance indoor comfort throughout the year, particularly in regions experiencing extreme seasonal temperatures. The installation of modern heating and cooling systems is expected to make classrooms and hospital wards more sustainable and livable. The initiative will also extend to green mobility, supporting the introduction of electric buses, the development of charging infrastructure, and the deployment of air pollution monitoring systems along urban transport routes.

A distinctive feature of the program is its use of the Joint Credit Mechanism (JCM), which provides Uzbekistan with access to advanced Japanese technology and investment. This mechanism facilitates international collaboration on carbon reduction and supports the country’s transition toward cleaner technologies.

The initiative aligns with Uzbekistan’s climate commitments under the Paris Agreement. The government has pledged to cut greenhouse gas emissions by 35 percent and raise the share of clean energy to 25 percent by 2030. According to UNDP representatives and officials from the National Agency for Energy Efficiency, the project is not only designed to meet environmental targets but also to improve public health and alleviate the financial strain caused by inefficient energy systems.

This latest endeavor builds on previous sustainable development projects in Uzbekistan. Notably, a European Union and UNDP-backed program has supported the country’s fish farming industry by providing eco-friendly equipment to enhance water quality and reduce energy consumption.

19 Jun 2025

Kazakhstan, Home, Life & Culture, Kazakhstan Life & Culture

Kazakhstan Launches 2025 Year of China Tourism

June 19, 2025
By Sergey Kwan

On June 16, Astana hosted the official launch of the Year of China Tourism in Kazakhstan. The opening ceremony was attended by Kazakh Minister of Tourism and Sports Yerbol Myrzabosynov and Chinese Minister of Culture and Tourism Sun Yeli, underscoring the growing cultural and economic ties between the two countries.

Minister Myrzabosynov emphasized that tourism has become a vital bridge in strengthening people-to-people connections between Kazakhstan and China. The 2025 initiative follows the success of the Year of Kazakhstan Tourism in China in 2024, declared by Presidents Kassym-Jomart Tokayev and Xi Jinping as part of ongoing bilateral cooperation.

A centerpiece of this year’s initiative is the implementation of the Welcome Chinese program, which aims to tailor Kazakhstan’s hospitality and tourism services to meet the needs of Chinese visitors. The program includes efforts to improve language accessibility, offer Chinese-style amenities in hotels, and develop guided tours designed specifically for Chinese tourists.

According to the Kazakh Ministry of Tourism and Sports, the Year of Kazakhstan Tourism in China yielded significant results. In 2024, Kazakhstan welcomed 655,000 tourists from China, a 78% increase compared to 367,000 in 2023. The surge in travel was further supported by the mutual visa-free regime introduced in November 2023. Under this agreement, citizens of both countries can travel visa-free for up to 30 days per visit, with a maximum of 90 days within a 180-day period. The visa exemption applies to tourism, medical visits, business travel, and transit.

Officials expect that the Year of China Tourism in Kazakhstan will not only boost inbound travel from China but also deepen economic, cultural, and diplomatic cooperation between the two nations.

19 Jun 2025

Home, Uzbekistan, Turkmenistan, Tajikistan Business Economy, Tajikistan, Uzbekistan Features, Local Politics, Turkmenistan Business & Economy, Kyrgyzstan, Uzbekistan Business & Economy, Tajikistan Features, Kazakhstan, Turkmenistan Features, Kyrgyzstan Business & Economy, Kazakhstan Business & Economy, Features, Kyrgyzstan Features, Kazakhstan Featurees

From Reform to Roadblocks: The Uneven Evolution of Motor Insurance in Central Asia

June 19, 2025
By Vagit Ismailov

Motor insurance markets across Central Asia exhibit contrasting levels of development, from Kazakhstan’s expanding, digitized sector to Kyrgyzstan and Turkmenistan, where the system remains largely ineffective. Beyond compensating for damages, motor insurance is increasingly viewed as a tool for strengthening financial markets, promoting road safety, and easing the fiscal burden during emergencies.

Kazakhstan

Kazakhstan leads the region in insurance market volume. According to the Agency for Regulation and Development of the Financial Market (ARDFM), compulsory third-party motor insurance (OSGPO) premiums totaled more than KZT 106 billion ($205 million) in 2023, an 18% increase from the previous year.

Since 2019, Kazakhstan has operated an electronic OSGPO registration system, streamlining policy purchases and reducing fraud. Integration with the Ministry of Internal Affairs databases now enables more effective monitoring of compliance.

In April 2025, the country introduced a revised bonus-malus system with 18 risk classes, ranging from M2 (highest risk, coefficient 3.5) to Class 13 (lowest risk, coefficient 0.5). New drivers are assigned Class A with a coefficient of 1.8. The updated system accounts for accident history, traffic violations, and the duration of accident-free driving.

Despite this progress, voluntary comprehensive insurance (CASCO) remains underutilized; fewer than 5% of car owners hold such policies. Barriers include high costs, limited public understanding, and the persistent mistrust of insurers. Nevertheless, demand for CASCO is growing amid rising accident rates and vehicle costs. Once considered a luxury for owners of new cars, CASCO is increasingly popular among middle-income drivers, particularly those buying vehicles on credit or lease.

According to Ranking.kz, CASCO premiums reached KZT 13.4 billion ($26 million) in January-February 2025, slightly below the same period in 2024 ($29 million) but still well above pre-pandemic levels. CASCO now covers a broad range of risks, including accidents, theft, vandalism, fire, and natural disasters. For many Kazakhstani drivers, comprehensive coverage is becoming a central part of their financial strategy rather than a discretionary purchase.

Kyrgyzstan

In Kyrgyzstan, however, the motor insurance system is largely dormant. Although a compulsory insurance law was passed in 2015, only 8-10% of the vehicle fleet is insured. The absence of a unified digital platform, weak interagency coordination, and low public confidence hinder progress.

The authorities intend to relaunch reforms in 2025, focusing on digital integration between the Ministry of Internal Affairs and the National Bank. Beginning July 1, 2025, fines will be imposed on uninsured drivers: 3,000 KGS (around $35) for individuals and 13,000 KGS (about $150) for foreign nationals and legal entities. The new penalties are expected to promote compliance and foster a stronger insurance culture.

Uzbekistan

Uzbekistan, in contrast, has made substantial strides since 2019. Restrictions on foreign insurers have been lifted, and the Insurance Market Development Agency has spearheaded a digital transformation of the sector. In 2023, motor insurance premiums surpassed 250 billion som, largely from OSGPO policies.

The government has expanded policy coverage and supports online issuance to increase accessibility and competition. As of September 1, 2024, all compulsory motor insurance policies will be digitized and issued through a centralized system. Reforms will introduce risk-adjusted pricing based on driver behavior, accident severity, and violations. The insurance payout ceiling has also been raised to 40 million som, aligning Uzbekistan’s approach more closely with that of Kazakhstan.

Tajikistan

Tajikistan’s compulsory motor insurance system, introduced in 2021, remains in its infancy. Coverage is still below 10%, hindered by low awareness, underdeveloped infrastructure, and weak regulatory oversight.

The National Bank of Tajikistan is working with international partners, including the IMF and IFC, to craft a roadmap aimed at expanding digital access and boosting financial inclusion through improved insurance services.

Turkmenistan

Turkmenistan presents the region’s most restrictive market. All insurance is provided through the state-owned Türkmenistanyn Döwlet Ätiýaçlandyryş Şereketi, with virtually no private or foreign sector participation.

Although compulsory motor insurance has been mandated since 2009, public data on market penetration is unavailable. External estimates suggest coverage is under 20%. Voluntary policies are rare, and low levels of digitization further inhibit development.

Overall challenges and prospects

Across the region, countries face a set of shared obstacles: low public trust, inadequate enforcement of compulsory coverage, insufficient digital infrastructure, and a limited insurance culture. Yet there are signs of positive momentum. Governments are investing in digital platforms, integrating insurance systems with internal affairs databases, and encouraging online and mobile policy access.

Experts anticipate that over the next three to five years, Central Asia will witness meaningful growth in motor insurance, driven by policy reform, technology adoption, and improving public awareness.

19 Jun 2025

Environment, Kazakhstan Environment, Kazakhstan

Extreme Heat Warps Roads Across Kazakhstan

June 19, 2025
By Dmitry Pokidaev

Kazakhstan is experiencing widespread road damage due to an intense heatwave, with asphalt and cement concrete surfaces warping in both southern and northeastern regions of the country. The national road operator KazAutoZhol has stated that such deformation is a normal response to extreme heat conditions.

Air temperatures have soared above 35°C across most regions, prompting meteorologists to advise residents to avoid going outdoors during peak daylight hours. The most affected areas are inter-city highways, where the heat has caused significant stress on infrastructure.

The first reports of road warping emerged from the Pavlodar Region in northeastern Kazakhstan. On June 13, local authorities conducted emergency repairs at kilometer 1,265 of the Astana-Shiderty-Pavlodar-Uspenka-Russian border highway. Concrete slabs had buckled following a sharp temperature increase to 33-35°C.

Notably, this highway is a toll road, and the damage drew criticism from motorists. Shortly thereafter, similar issues were reported in the south. On June 19, KazAutoZhol announced repairs on the Shymkent, Uzbekistan border highway, specifically at kilometer 763, another toll section. The pavement there had deformed due to air temperatures reaching 40-45°C.

On the same day, further damage was reported on the Astana-Pavlodar highway in central Kazakhstan, where several consecutive days of temperatures between 32-35°C contributed to the melting and lifting of concrete slabs.

“Cement concrete pavements are particularly sensitive to sudden temperature changes,” experts from KazAutoZhol explained. “In hot conditions, the slabs expand. If gaps between them are insufficient or joints are compromised, internal stress can cause the slabs to suddenly lift, a phenomenon commonly referred to as a ‘blow-up.’ This is typical in regions where daytime temperatures exceed 35°C, which includes much of southern and central Kazakhstan.”

KazAutoZhol also cited similar challenges in other countries, noting that in the United States, states like Minnesota, Wisconsin, and Illinois report comparable incidents nearly every summer.

The organization operates under the Ministry of Transport of Kazakhstan, which recently saw a leadership shake-up. In mid-May, President Kassym-Jomart Tokayev reprimanded then-Minister Marat Karabayev for multiple failings within the transport sector. Karabayev was dismissed in early June, and his deputy, Maksat Kaliakparov, was appointed acting minister.

As previously reported by The Times of Central Asia, construction began this month on the strategic Center-West highway corridor, part of the Trans-Caspian International Transport Route (TITR), a key freight link connecting China and Europe via Kazakhstan.

19 Jun 2025

Home, Business & Economy, Kyrgyzstan Business & Economy

Kumtor Launches Tire Retreading Program to Cut Costs and Waste

June 19, 2025
By Anton Chipegin

Kumtor, Kyrgyzstan’s largest gold mining operation, has initiated a tire retreading program for its fleet of large Caterpillar mining dump trucks. The announcement was made by Kubat Abdraimov, chairman of the board of the state-owned Kyrgyzaltyn company, which oversees the Kumtor enterprise.

The retreading work is being carried out at a facility in Tokmok. The first set of refurbished tires has already been installed on dump trucks and is undergoing operational testing at the mine. If successful, the program will expand, with the Tokmok plant expected to retread between 200 and 300 tires annually. “This will save more than $1.5 million per year. At the same time, we are solving an important environmental problem by reducing waste and reusing resources,” Abdraimov said during a site inspection of Kumtor’s production facilities.

New tires for Caterpillar dump trucks can cost up to $30,000 each. In the high-altitude conditions of the Kumtor mine, located at 3,500 to 4,500 meters above sea level, tire wear is especially rapid, making operations significantly more expensive. According to the company’s press service, the refurbished tires were delivered to the mine at the end of May. One vehicle fitted with the retreaded tires has already logged over 1,000 kilometers and more than 100 hours of work under full load. The condition of the tires is being monitored continuously.

In the early years of Kumtor’s development during the 1990s, the initial tire supply came from the Belarusian manufacturer BelAZ. However, the products proved unsuitable for the mine’s extreme conditions, leading to a switch to Canadian suppliers along with other imported components.

Abdraimov also highlighted the critical contribution of technical personnel to the reliability of mining operations. “The mine uses modern mining and auxiliary equipment. Work is carried out around the clock in challenging weather and at high altitudes. The reliability and qualifications of the repair crews are key to sustainable operation,” he said.

Industry experts suggest the tire retreading initiative could be a foundational step in creating a domestic industrial cluster focused on the repair and maintenance of mining equipment in Kyrgyzstan.

19 Jun 2025

healthcare, Home, Tajikistan Business Economy, Tajikistan, Tajikistan Features, Business & Economy

Tajikistan’s Pharmaceutical Sector Remains Heavily Dependent on Imports

June 19, 2025
By Vagit Ismailov

Despite possessing vast reserves of medicinal plants, Tajikistan’s pharmaceutical industry remains heavily reliant on imports. Experts are increasingly questioning why the sector has been reduced to a basic “buy-and-sell” model and what is hindering the use of the country’s natural resources.

Abundant Resources, Limited Output

Tajikistan is home to more than 3,500 species of medicinal plants, including licorice, mint, valerian, chamomile, motherwort, and even rare saffron. However, this natural wealth has not translated into pharmaceutical independence. In the past two years alone, Tajikistan has imported roughly $84 million worth of medicines.

Currently, 67 pharmaceutical companies are registered in the country, producing around 600 types of drugs. Still, imported pharmaceuticals dominate the market. According to industry observers, the sector has evolved into a retail-focused trade, rather than a hub for research-based production.

During the Soviet era, pharmaceuticals in Tajikistan were closely integrated with scientific institutions. Research institutes flourished, pharmacies compounded custom medications, and both training and quality control were rigorous. Following the collapse of the USSR, this infrastructure disintegrated. The responsible state committee was dissolved, and a previously regulated system was replaced by an unstructured market.

Today, training programs are often accelerated, pharmacists’ qualifications are inconsistent, and the emphasis has shifted from treatment to sales.

A Pharmacy That Heals

Amid this decline, one notable exception is found in the city of Isfara, where a phytotherapy department has been established at the local hospital. Spearheaded by pharmacist Abubakr Faiziev, the department operates out of a restored facility where locally gathered herbs are used to produce traditional infusions and decoctions. Faiziev personally collects about half of the ingredients.

“It is important to me that the pharmacy heals, not just sells,” he said.

According to Faiziev, approximately 80% of patients return for follow-up treatment, often bypassing conventional doctors due to the perceived effectiveness of herbal therapies, a sentiment echoed even among members of the local elite.

A Science in Decline

Faiziev laments the erosion of scientific ambition in the country.

“People now ask for business plans and guaranteed profits instead of pursuing knowledge. But science doesn’t work that way,” he said.

Research, he noted, has become sporadic and often relies on outdated data, with little interest from private companies in investing in innovation.

Young professionals, too, are increasingly opting for commercial routes. “They prefer to open pharmacies for fast income rather than engage in research,” he explained. “There are many pharmacists now. But we must transform quantity into quality. Without passion for the profession, one cannot become a skilled expert.”

The State’s Role and Untapped Potential

President Emomali Rahmon has repeatedly stressed the need to develop the domestic pharmaceutical industry and better utilize Tajikistan’s natural resources. Ongoing reforms include updates to medical university curricula, the opening of laboratories, and the training of technologists and quality control specialists. Yet, experts argue that without a comprehensive, systematic strategy and active engagement from the private sector, these measures are insufficient.

Faiziev advocates for the creation of a pharmaceutical technology park and the development of both the domestic and export markets. He has submitted a proposal to the Ministry of Health to hold training courses for regional professionals but has yet to receive a response.

“I am not claiming that herbal medicine is a cure-all,” Faiziev concluded. “But there is a vast sector where natural remedies are most effective. They are accessible, safe, and cost-efficient.”