• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00196 0%
  • TJS/USD = 0.09782 0.41%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28575 -0.14%
21 May 2025

World Bank Approves $100 Million to Modernize Uzbekistan’s Power Grid

The World Bank has approved a $100 million credit to support the modernization of Uzbekistan’s electricity distribution system and facilitate the integration of renewable energy sources. Uzbekistan’s Regional Electric Power Networks (REPN) will contribute an additional $50 million to the initiative, marking the country’s first use of the World Bank’s Program-for-Results (PforR) financing model.

Uzbekistan’s aging power distribution infrastructure poses serious challenges. Over 50% of the network is more than 30 years old and suffers from significant inefficiencies. As of 2024, technical issues contribute to the loss of approximately 13% of electricity, resulting in frequent outages across the country.

The government has set a target of installing 25 gigawatts of renewable energy capacity by 2030. However, experts warn that without immediate upgrades to the national grid, Uzbekistan’s infrastructure will be unable to accommodate this expansion.

In addition to technical improvements, the government is working to reduce commercial losses and enhance the financial viability of the electricity sector to attract private investment.

Tatiana Proskuryakova, World Bank Country Director for Central Asia, highlighted the scale of the challenge. “The total investment needed is about $3 billion. We hope other development partners and private investors will join us in supporting REPN in this crucial effort,” she said.

The combined $150 million from the World Bank and REPN will be deployed over the next five years to upgrade and expand infrastructure, particularly in regions such as Karakalpakstan and Surkhandarya. Planned improvements include:

  • Construction or modernization of 6,000 kilometers of power lines
  • Installation of 1,200 transformers
  • Connection of 150,000 smart meters
  • Deployment of 4,000 data concentrators to improve automation

The program also aims to enhance REPN’s operational and financial management. It includes the development of advanced planning methodologies, strengthened financial oversight, and support for corporate governance reforms.

By 2029, the initiative is expected to increase customer satisfaction, reduce annual CO₂ emissions by up to 450,000 tons, and raise the proportion of women in technical and leadership roles from 9% to 14%.

Earlier this year, the World Bank also approved $153 million in support of a project aimed at reforestation and combating land degradation in Uzbekistan, as part of a broader regional climate resilience program.

Kyrgyzstan and China to Launch New Air Route as Part of Air Silk Road

Kyrgyzstan’s State Civil Aviation Agency has reached an agreement with China’s aviation authorities to open a new air route to Kashgar, located in China’s Xinjiang Uygur Autonomous Region. This will become the second direct air link between Central Asia and western China.

According to the agency, the route will form part of the broader Air Silk Road initiative, an economic air corridor designed to facilitate freight and passenger connectivity between China and Europe. The new link is expected to significantly improve logistics, enhance flight safety, and create fresh opportunities for both cargo and passenger transportation across the region.

The planned route is also anticipated to deepen Kyrgyzstan’s trade and economic relations with China, stimulate tourism, and further integrate the country into the international aviation network.

The Air Silk Road, launched in 2014, is a component of China’s broader Belt and Road Initiative. Initially focused on air freight, the corridor now connects more than 100 cities in over 20 countries across Asia, Europe, and the Americas.

Kazakhstan Unveils Central Asia’s Most Powerful Supercomputer

Kazakhstan has taken a major step in its digital transformation with the arrival of the most powerful supercomputer in Central Asia. The system, boasting a performance of approximately 2 exaflops, was delivered as part of a strategic agreement between the Ministry of Digital Development, Innovation, and Aerospace Industry (MDDIA) and Presight AI Ltd, an ADX-listed public limited company whose majority shareholder is Abu Dhabi company G42.

This milestone follows an agreement signed in February 2024 to construct a supercomputer and a dedicated data center. The latest development includes the creation of a full-scale supercomputing cluster that will be installed in a state-of-the-art Tier III data center. The facility ensures high availability through dual data redundancy, independent power supplies, and the capability to upgrade equipment without interrupting operations.

The new supercomputer is powered by the latest NVIDIA H200 graphics chips, optimized for artificial intelligence and high-performance computing. With a capacity of 2 exaflops, equivalent to a billion billion (10¹⁸) floating point operations per second, the system is expected to significantly bolster Kazakhstan’s digital infrastructure and AI capabilities.

According to the MDDIA, the supercomputer is intended to benefit a wide range of users, not just a narrow group of specialists. “The supercomputer’s resources will be accessible to all: startups developing neural networks, universities conducting fundamental and applied research, scientific institutions, and businesses integrating AI into their operations,” the ministry stated.

The project aligns with Kazakhstan’s broader digital strategy and its ambitions to become a regional technology hub. It also reflects deepening economic ties with the United Arab Emirates. As previously reported by The Times of Central Asia, during the official visit of Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan to Kazakhstan, the two countries signed over 20 commercial agreements worth approximately US$5 billion.

Kazakhstan and World Bank Launch Second Phase to Revive Northern Aral Sea

In partnership with the World Bank, the Ministry of Water Resources and Irrigation of Kazakhstan has launched the second phase of a long-term initiative to restore the Northern Aral Sea. This stage aims to revive the region’s ecosystem and enhance the quality of life for local communities.

Feasibility Study Underway

Key objectives of this phase include reconstructing the Kokaral Dam and raising the sea level to 44 meters, measured using the Baltic height system. Plans also call for constructing a water control facility near the village of Amanotkel, designed to regulate water distribution within the Akshatau and Kamystybas lake systems in Kyzylorda Region’s Aral District. A technical feasibility study is expected to be completed by December 2025.

Once implemented, these measures are projected to expand the Northern Aral Sea’s surface area to 3,913 square kilometers, increasing its total water volume to 34 cubic kilometers. The full refill process is anticipated to take four to five years, based on hydrological data from the Syr Darya River basin covering the period 1913-2019.

Strategic Decisions on Dam Reconstruction

The current conservation strategy was finalized following consultations with local authorities and water management experts. Minister of Water Resources and Irrigation Nurzhan Nurzhigitov stated that the plan reflects the region’s actual hydrological conditions and was selected for its balance of timeliness and efficacy.

“We evaluated multiple implementation options. Discussions with residents and industry veterans helped guide our decision. The final plan was deemed optimal after all relevant factors were considered,” Nurzhigitov said.

Sameh Wahba, the World Bank’s Regional Director for Europe and Central Asia, underscored the project’s ecological and economic significance. He confirmed that the World Bank not only funded the feasibility study but remains committed to supporting the project through its next stages. According to Wahba, the initiative is expected to create jobs and stimulate sectors such as fisheries, agriculture, and tourism.

Progress Achieved in the First Phase

The first phase of the rescue effort has already delivered tangible benefits. Water volume in the Northern Aral Sea has risen by 42%, reaching 27 billion cubic meters, while salinity has dropped nearly fourfold. Annual fish yields have climbed to 8,000 tons. In 2024 alone, a record 2.6 billion cubic meters of water were channeled into the sea, with 1 billion cubic meters allocated for irrigation.

Beyond water volume and quality, the project aims to revitalize the Syr Darya River delta, curb salt deposition, and bolster the fishing industry. Employment opportunities and improved living conditions for local populations are also key targets.

Long-Term Threats to Water Security

The sustainability of these efforts may be challenged by regional developments. During the international conference “Water Security and Transboundary Water Use: Challenges and Solutions” in Astana, Kazakhstan’s Deputy Minister of Water Resources and Irrigation, Aslan Abdraimov, warned of the potential impact of Afghanistan’s Kosh-Tepa Canal on Central Asian water systems.

Despite the absence of a direct border between Kazakhstan and Afghanistan, Abdraimov stated that the canal could eventually reduce the flow of the Syr Darya River. “No sharp fluctuations are expected in the near term, but over time, diminished water flow is inevitable,” he noted.

A significant concern is the projected decline in Amu Darya River flow, already under pressure from widespread irrigation use in upstream regions. Since the Amu Darya feeds into the Aral Sea system, further reductions could accelerate the sea’s desiccation, endangering both ecosystems and local economies.

Kazakhstan’s Crypto Aspirations Face a Power Problem

Kazakhstan’s First Deputy Minister of Digital Development, Innovation, and Aerospace Industry, Kanysh Tuleushin, believes that state-regulated cryptocurrency mining could generate substantial revenue and help modernize the country’s energy infrastructure. Tuleushin argues that Kazakhstan has the potential to become Central Asia’s leading blockchain hub. However, this vision clashes with the country’s ongoing energy crisis, which continues to impact households and businesses.

Optimistic Vision

In an article published in the state newspaper Kazakhstanskaya Pravda, Tuleushin outlined how mining operations could contribute to the development of Kazakhstan’s power generation capabilities. He emphasized the use of associated petroleum gas (APG) to produce electricity for mining, which he claims would reduce carbon emissions and boost oil sector profits.

“Miners can help modernize the power grid. In the U.S., they participate in grid balancing by consuming excess energy during low-demand periods. Kazakhstan already has a ‘70⁄30’ initiative, where foreign investors upgrade thermal power plants, allocating 70% of new capacity to the general grid and 30% to miners,” Tuleushin wrote.

Tuleushin reported that cryptocurrency mining has brought 17.7 billion tenge to the national budget over the past three years. Meanwhile, trading volume on the Astana International Financial Center (AIFC) exchanges increased from $324.2 million in 2023 to $1.4 billion in 2024. From January 1, 2025, miners will be required to sell 75% of their assets through the AIFC.

Despite a generally cautious regulatory stance, Kazakhstan permits digital asset trading within the AIFC. Digital assets are categorized as secured (linked to physical assets) or unsecured (such as Bitcoin and Ethereum). In 2023, digital asset transactions in Kazakhstan reached $4.1 billion, but 91.5% occurred in the “gray zone,” beyond state oversight.

In 2024 alone, the Financial Monitoring Agency shut down 36 illegal crypto exchanges, froze $4.8 million in assets, and blocked over 3,500 illicit platforms. Tuleushin argues that fully legalizing and regulating these operations could add more than 190 billion tenge annually to the budget, enough to fund major public infrastructure such as schools and hospitals.

He proposes extending crypto trading beyond the AIFC, authorizing crypto ATMs, and opening the market to major players, an approach akin to that of the UAE. Tuleushin also claimed that regions like Pavlodar and Karaganda have electricity surpluses and that Kazakhstan’s cold climate further lowers operational costs for miners.

Unchecked Consumption and Mounting Strain

Despite the deputy minister’s optimism, Kazakhstan’s Supreme Audit Chamber (SAC) has raised alarms over uncontrolled energy consumption by miners. According to a 2024 audit, miners consumed 901 million kWh worth 13 billion tenge, despite a national energy shortage, by bypassing RFZ LLP, the country’s sole energy purchaser.

Former Prime Minister and current head of the Supreme Audit Chamber, Alikhan Smailov, warned, “Miners are consuming up to a billion kilowatt-hours. This is damaging our economy. How can we allow unchecked consumption amid such a crisis?”

The audit revealed systemic issues, including deteriorating Soviet-era power plants (55% average wear), a 4,500-worker shortfall in the energy sector, and a lack of financial oversight by the Ministry of Energy.

Looming Crisis

In January 2025, forecasts indicated that Kazakhstan’s electricity shortfall could reach 5.7 billion kWh, 72.7% higher than previous estimates. A referendum held in 2024 led to the decision to construct a nuclear power plant, a move prompted by repeated large-scale blackouts. Public skepticism remains, however, due to the enduring legacy of the Soviet nuclear test site in Eastern Kazakhstan.

Accidents in key regions, such as Mangistau’s desalination plant and severe winter outages in Ekibastuz and Ridder, highlight the fragility of Kazakhstan’s aging energy infrastructure. Even major cities like Almaty and Astana have faced power rationing.

The burden of energy modernization has fallen on citizens and businesses. The 2022 “Tariff in Exchange for Investment” program increased utility costs nationwide, with further hikes expected. Roughly 76% of thermal power plants have been operating for over 50 years, with some infrastructure nearing 80% degradation.

Balancing Opportunity and Risk

Given these challenges, Tuleushin’s push to expand mining operations raises critical questions: Can Kazakhstan afford to invest in an energy-intensive industry without compromising its fragile grid? Or will unregulated crypto ambitions further strain a sector already on the brink?

For now, Kazakhstan’s bid to become a crypto powerhouse remains caught between digital promise and infrastructural reality.

Video Shows Uzbek Rescuers Pulling Boy to Safety from Deep Well

In a dramatic scene recorded on video, emergency workers rescued a seven-year-old boy who had fallen into an empty well in eastern Uzbekistan on Friday.

The responders were summoned after a homeowner’s son fell into a 40-meter-deep, 90-centimeter-diameter, waterless well in the yard of a house in Qurghontepa district in the Andijan region, the Ministry of Emergency Situations said in a statement.

The ministry said on social media that, “as a result of rescue operations carried out using special equipment and tools, the child was safely pulled out of the well. The child is currently in good condition. He was taken to the hospital for a medical examination.”

Video and photographs of the incident show several rescuers pulling on a rope at the edge of the well, and also show the boy being carried away and checked by a doctor. His face is blurred to mask his identity.

(Video courtesy of the Ministry of Emergency Situations)