Page 375 – The Times Of Central Asia

20 Feb 2025

Business & Economy, Kyrgyzstan, Kyrgyzstan International Affairs, Kyrgyzstan Business & Economy

First PPP Project to Build Major Railway Launched in Kyrgyzstan

February 20, 2025
By Sergey Kwan

On February 19, a public-private partnership (PPP) agreement was signed in Bishkek for the “Trans-Eurasian Route” railway project, marking Kyrgyzstan’s first PPP initiative in the railway sector. The agreement was signed between the National Investment Agency under the President of the Kyrgyz Republic, Kyrgyzstan’s national railway company Kyrgyz Temir Zholu, and the U.S.-based consortium All American Rail Group Global Infrastructure Partner LLC.

The project involves constructing a railway across central Kyrgyzstan, traversing mountainous terrain from east to west, and connecting Karakol in the northeastern Issyk-Kul region with Makmal in the southwestern Jalal-Abad region.

According to the National Investment Agency, the railway will be a key step in modernizing Kyrgyzstan’s transport infrastructure, enhancing regional connectivity and economic development.

National Investment Agency Director Talantbek Imanov stated that the project represents an investment of approximately $3 billion, expected to create new jobs, improve the national transport network, and generate long-term economic benefits.

Additionally, the railway will enhance Kyrgyzstan’s connectivity with neighboring countries, particularly through its link to the China-Kyrgyzstan-Uzbekistan railway, which will pass through Makmal.

The China-Kyrgyzstan-Uzbekistan (CKU) railway project, officially launched in December 2024, aims to serve as a major East-West trade route. Construction of the CKU railway is already underway.

The 523-kilometer CKU railway will connect Kashgar (China), Torugart, Makmal, Jalal-Abad (Kyrgyzstan), and Andijan (Uzbekistan). Once completed, it is expected to transport up to 15 million tons of cargo annually, facilitating trade between China, Central Asia, the Middle East — including Turkey — and the European Union.

20 Feb 2025

Central Asia, Uzbekistan, Turkmenistan, Tajikistan, Tajikistan Business Economy, Kyrgyzstan, Turkmenistan Business & Economy, Uzbekistan Business & Economy, Kazakhstan, Business & Economy, Kyrgyzstan Business & Economy, Kazakhstan Business & Economy

Central Asia Receives Half of Eurasian Investments from China, Turkey, Iran, and Gulf States

February 21, 2025
By Sergey Kwan

The Eurasian Development Bank (EDB) has released a new study analyzing mutual direct investment (MDI) flows across the Eurasian region.

The report examines investment trends between 13 Eurasian countries – Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan – and external partners, including China, Turkey, Iran, and the Gulf states, from 2016 to the first half of 2024.

Key Findings on Investment Trends

According to the EDB, total MDI stock in the region reached $90.4 billion by mid-2024, reflecting a 6.4% increase from 2023.

China remains the largest investor in the Eurasian region, holding an MDI stock of $58.6 billion at the end of H1 2024, accounting for 64.8% of the total. Other major investors include:

Turkey – $12.3 billion (13.6%)
United Arab Emirates (UAE) – $12.2 billion (13.5%)
Iran – $3.2 billion (3.5%)
Saudi Arabia – $2.3 billion (2.5%)
Qatar – $1.6 billion (1.8%)

Among these, Iran showed the highest investment growth, doubling its investments since 2016, with 90% directed toward Azerbaijan. Turkey demonstrated broad sectoral diversification, while Saudi Arabia and Qatar emerged as new investors, making their first investments in 2021 and 2024, respectively.

Investment Distribution in Eurasia

The largest investment recipients in the Eurasian region include:

Russia – $23.5 billion (26%)
Turkmenistan – $17.5 billion (12.5%)
Kazakhstan – $15.5 billion (11.1%)
Mongolia – $10.3 billion (7.4%)
Uzbekistan – $8.8 billion (6.3%)

Central Asia received 51% of all investments from China, Turkey, Iran, and the Gulf states, totaling $46.2 billion, an increase of 25% since 2022.

Outbound Investment from Eurasia

The report also highlights outbound investments from the Eurasian region, which totaled $49.4 billion, doubling since 2016. Turkey received 80% of these investments, with a significant portion originating from Russia.

Sectoral Trends: Energy, Manufacturing, and Greenfield Investments

China continues to expand its investments in energy and manufacturing, although its traditional focus on extractive industries has declined. As of mid-2024, Chinese investment in mining and resource extraction stood at $36.2 billion, comprising 61.7% of its total investments in Eurasia.

Other notable sectoral trends include:

Energy sector – Chinese investment grew 2.1-fold in 18 months to $4.1 billion, with 85% directed toward Uzbekistan.
Manufacturing sector – Investment increased 8% to $11.8 billion, with most projects concentrated in Central Asia.

The Gulf states are also expanding their investments in the region:

The UAE invested $12.2 billion, with 90% of its projects in Central Asia.
Saudi Arabia increased investments from $300 million in 2021 to $2.3 billion in 2024, primarily in Uzbekistan’s power sector.
Qatar made its first major investment in Kazakhstan in 2024, committing $1.6 billion to the telecom sector.

Rise of Greenfield Investments

Greenfield projects – new businesses and infrastructure developments – remain the dominant form of MDI, totaling $57 billion, nearly double the 2016 level. These projects now account for 63% of total investments, driven by the economic growth of Central Asia and increasing investor interest in energy, manufacturing, and extractive industries.

20 Feb 2025

Local Politics, Uzbekistan, Uzbekistan International Affairs, Uzbekistan Local Politics

Uzbekistan Strengthens Intellectual Property Protection

February 20, 2025
By Sadokat Jalolova

Uzbekistan is taking significant steps to enhance intellectual property (IP) protection with a new draft law, which was approved in its first reading by the Legislative Chamber of the Oliy Majlis on February 18.

The proposed legislation introduces amendments to multiple legal codes, strengthening penalties for copyright violations and industrial property rights infringements. Key changes include:

Increased fines for copyright infringement
Administrative penalties for violating rights to selection achievements
Confiscation of items used in patent-related offenses
Expanded judicial powers to inspect and seize counterfeit goods
Stricter criminal liability for intellectual property violations
Criminal penalties for unauthorized use of trademarks, software, and inventions
Mandatory destruction of counterfeit goods at the offender’s expense

The law aims to curb counterfeit production, attract foreign investment, and support Uzbekistan’s efforts to join the World Trade Organization.

Under Uzbekistan’s Copyright Law, intellectual property rights apply to works by Uzbek citizens, residents, and those first published in the country. Currently, fines for copyright violations range from UZS 375,000 (USD 28.95) to UZS 1.87 million (USD 144.36) for individuals and up to UZS 3.75 million (USD 289.48) for officials.

Additionally, the Code of Administrative Responsibility imposes various fines for violations of personal non-property rights related to intellectual property.

In neighboring Kazakhstan, copyright or related rights violations under the Criminal Code carry a minimum fine of KZT 295,360 (USD 588.17) as of 2024. More severe offenses can result in imprisonment for three to six years.

20 Feb 2025

International Affairs, Kyrgyzstan, Kyrgyzstan International Affairs, Kyrgyzstan Business & Economy

Kyrgyzstan’s Aviation Authorities Await Removal from EU Blacklist

February 20, 2025
By Anton Chipegin

Kyrgyzstan’s State Civil Aviation Agency has announced that auditors from the European Union Aviation Safety Agency (EASA) will visit the country on March 9 to assess the possibility of lifting the EU’s long-standing flight ban on Kyrgyz airlines.

Kyrgyz airlines have been on the EU’s aviation blacklist since 2006, with repeated but unsuccessful attempts by the country’s authorities to resolve the issue. The EU has cited multiple concerns, including shortcomings in Kyrgyzstan’s aviation legislation, inadequate inspector training, and a lack of flight crew development programs. The aging aircraft fleet has also been a key factor in maintaining the ban.

Over the past two years, Kyrgyzstan has undergone two separate aviation audits, one focused on flight safety and another on aviation security.

“Flight safety covers everything related to flight operations, while aviation security deals with protecting airports and aircraft from illegal interference,” explained Daniyar Bostonov, director of the State Civil Aviation Agency.

According to Bostonov, Kyrgyzstan has been working since 2017 to meet all EU requirements. Hundreds of industry documents have been translated into English to demonstrate transparency and regulatory compliance.

Bostonov believes the country now meets international aviation standards, and a final decision on Kyrgyzstan’s removal from the blacklist is expected in November 2025 at a meeting of the European Parliament’s Committee on Transport and Tourism (TRAN).

“The question is no longer whether we will be removed from the EU blacklist – it is a certainty. We may just need to submit some additional documents to the European Parliament,” Bostonov stated.

If the ban is lifted, Kyrgyzstan will be able to resume direct flights to the European Union and gain access to more favorable aircraft leasing agreements.

“For example, if an Airbus aircraft is sold for $1,000, that price remains the same for non-blacklisted countries. However, if it is delivered to a blacklisted state, the price can drop to $800, which discourages investors,” Bostonov explained.

Further supporting the possibility of removal from the blacklist, Manas International Airport recently became a member of ACI Europe, an organization representing over 500 airports across the continent.

20 Feb 2025

Central Asia, Environment, Uzbekistan Environment, Home, Uzbekistan, Uzbekistan Home

ADB to Help Uzbekistan Introduce Smart Water Management

February 20, 2025
By Sergey Kwan

The Asian Development Bank (ADB) has approved a $125 million loan to support Uzbekistan’s government in modernizing water management, improving water security, and expanding access to safe and reliable water.

Advancing Smart Water Management

ADB’s Climate-Smart Water Management Improvement Project will assist Joint Stock Company Uzsuvtaminot, the country’s national water utility, and its regional branches in enhancing water infrastructure and efficiency. Key initiatives include:

Completing the nationwide installation of bulk flow metering and telemetry systems at major water sources.
Conducting a comprehensive asset inventory and geographic mapping of all water supply and wastewater infrastructure, covering approximately 4 million customer connections.
Implementing climate-smart, IT-based utility management systems, including training programs for national water utility staff.
Upgrading customer service centers with new financial management software, ensuring transparent financial statements aligned with international standards.

Addressing Water Security Challenges

ADB Country Director for Uzbekistan Kanokpan Lao-Araya emphasized the urgency of improving water management in the face of climate change and inefficient usage.

“Uzbekistan’s water resources are under acute threat from climate change and inefficient usage. ADB’s project introduces smart water management systems to improve water usage, reduce energy consumption, and increase operational efficiency to lower Uzbekistan’s carbon footprint,” she stated.

ADB’s Ongoing Support for Uzbekistan

Since Uzbekistan joined ADB in 1995, the bank has committed $14.3 billion in public sector loans, grants, and technical assistance to support the country’s development.

20 Feb 2025

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy, Kazakhstan Home

Kazakhstan to Help Jordan Assess Uranium Reserves

February 20, 2025
By Vagit Ismailov

During Kazakh President Kassym-Jomart Tokayev’s official visit to Jordan, a memorandum of understanding was signed between Kazakhstan’s Kazatomprom National Atomic Company JSC and the Jordan Uranium Mining Company (JUMCO). The agreement outlines plans for cooperation in uranium exploration and mining in Jordan.

Kazatomprom CEO Meirzhan Yusupov emphasized that the partnership with JUMCO presents new opportunities to strengthen Kazakhstan’s position in the global uranium industry.

“This memorandum aligns with our strategic goals of efficiently utilizing our resource base. Additionally, studying foreign projects will provide valuable international experience and contribute to the sustainable development of both countries,” he said.

Assessing Uranium Potential in Jordan

The primary goal of the agreement is to evaluate the potential for uranium exploration and development in Jordan. This includes assessing reserves and analyzing the feasibility of using heap leaching technologies for extraction. Special attention will be given to environmental safety and economic viability. Based on the study results, both parties will decide on the next steps for project development.

JUMCO CEO Mohammad Al-Shannagh stated that partnering with the world’s largest uranium producer could accelerate Jordan’s commercial uranium production.

“Cooperation with Kazatomprom will open new horizons for us in uranium mining, allowing us to share knowledge, use advanced technologies, and jointly develop marketing strategies,” he said.

Joint projects are expected to give new impetus to Jordan’s nuclear industry, creating jobs, attracting local contractors, and improving infrastructure.

Kazakhstan’s Expanding Uranium Industry

Kazakhstan’s collaboration with JUMCO provides an opportunity to expand its international reach, strengthen economic ties with Jordan, and enhance its influence in the global uranium sector.

Kazatomprom is the world’s largest producer of natural uranium, with priority access to one of the world’s most significant resource bases. Since November 2018, Kazatomprom’s shares have been traded on the Astana International Financial Center Exchange and the London Stock Exchange.