Page 407 – The Times Of Central Asia

28 Jan 2025

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

Central Asian Countries and World Bank Discuss Progress on Kambarata-1 Hydropower Project

July 17, 2025
By Sergey Kwan

On January 27, Tashkent hosted a roundtable discussion on advancing the construction of the Kambarata-1 Hydropower Plant (HPP), an ambitious regional initiative being jointly undertaken by Kyrgyzstan, Kazakhstan, and Uzbekistan. The project aims to enhance regional cooperation in Central Asia regarding water and energy resource management.

The meeting was attended by Kyrgyzstan’s Minister of Energy Taalaibek Ibrayev, Uzbekistan’s Minister of Energy Jurabek Mirzamakhmudov, Kazakhstan’s Deputy Minister of Energy Sungat Yesimkhanov, and the World Bank Regional Director for Central Asia Tatiana Proskuryakova.

The Kambarata-1 HPP, with a projected capacity of 1,860 megawatts and an average annual electricity generation of 5.6 billion kilowatt-hours, will be constructed at an estimated cost exceeding $4 billion. It is planned to be located in the upper reaches of the Naryn River in Kyrgyzstan. Upon completion, it will become the largest hydropower plant in Kyrgyzstan and is expected to address the country’s chronic electricity shortages.

At the meeting, ministers from the three participating countries requested the World Bank’s assistance in preparing and financing the Kambarata-1 HPP construction.

Kyrgyzstan’s Ibrayev described the project as “the project of the century” for Kyrgyzstan, emphasizing its potential to strengthen regional cooperation and foster long-term development across Central Asia. “Today’s roundtable in Tashkent continues a series of meetings that took place in Vienna, Brussels, and Washington in 2024. These events help coordinate and accelerate the project’s implementation, as well as attract the necessary international support,” Ibrayev stated.

From Kazakhstan’s side, Yesimkhanov highlighted the meeting as another step forward in strengthening regional cooperation in the water and energy sectors. He expressed confidence that the project would bolster good relations among Central Asian nations.

Uzbek representative Mirzamakhmudov reiterated his country’s commitment to the project, underscoring its strategic importance for the region. “The project will bring significant benefits to all Central Asian countries by strengthening regional energy security, accelerating the transition to a green economy, and improving the use of water resources,” he said.

Currently, Kyrgyzstan, with the World Bank’s technical support, is revising the project’s feasibility study. This includes assessing the technical, economic, financial, environmental, and social dimensions of the Kambarata-1 HPP.

World Bank Regional Director Proskuryakova reaffirmed the institution’s readiness to support the three governments in their efforts to ensure a stable energy future for the region. “We will continue to provide technical assistance in the implementation of the Kambarata-1 HPP construction project. Together with other international development partners, we are working to attract the financing necessary to implement the project,” she said.

Ibrayev has previously stated that all preparatory stages of the project are scheduled for completion by May 2025. In September 2024, Kyrgyzstan’s Cabinet of Ministers and the World Bank organized a roundtable to discuss dam selection for the Kambarata-1 HPP. The Swiss engineering firm AFRY proposed several options, and Kyrgyzstan’s Ministry of Energy has confirmed that the feasibility study will be finalized based on the chosen dam design by May 2025.

28 Jan 2025

Central Asia, Tajikistan Local Politics, Tajikistan, Kyrgyzstan, Local Politics, Kyrgyzstan Local Politics

Kyrgyz-Tajik Villages to Be Relocated as Part of Border Resolution

January 28, 2025
By Sadokat Jalolova

Kyrgyz President Sadyr Japarov recently spoke with the Kabar news agency about progress in resolving the Kyrgyz-Tajik border dispute. He also addressed plans for the relocation of villages and homes situated in the checkerboard-like border areas.

Progress Toward Resolution

Japarov provided an update on the status of negotiations, commenting: “The border issue is almost resolved. Right now, both sides are working on documenting the agreement. After this, the intergovernmental commissions will sign the documents, followed by the foreign ministers. Then, the parliaments of both countries will ratify the agreement. Finally, the presidents of Kyrgyzstan and Tajikistan will sign it, and the process will conclude with an exchange of notes.”

Japarov noted, however, that the process would take time to finalize. “It will take another 1-2 years to carry out demarcation work before the issue is fully settled. The most important thing is that we have reached a bilateral agreement,” he said.

Addressing Checkerboard Villages

When asked about the fairness of the border resolution, Japarov highlighted the balanced nature of the agreement:

“In border disputes, it’s impossible to consider only one side’s interests. Decisions are made by considering the needs of both countries. For instance, some disputed sections of the border were split equally. In cases where houses were mixed, like in checkerboard villages, we resolved these issues too.”

To address these mixed-border settlements, Japarov explained that families whose homes fall on the other side of the border will be relocated. Tajik families residing on Kyrgyz land will be moved by Tajikistan, and Kyrgyz families on Tajik land will be relocated by Kyrgyzstan. “We will build new homes for them elsewhere, considering the size of their land,” Japarov assured.

Peaceful Resolution a Priority

Japarov emphasized the importance of resolving the dispute through peaceful and cooperative means. He underscored that resolving border issues would improve border management, avoid future tensions, and build trust between the two nations. Once the demarcation process began, Japarov promised full transparency and regular updates for the public.

Historical Context

Tensions along the Kyrgyz-Tajik border have been ongoing for decades, with significant disputes intensifying in the late 2000s and early 2010s. In these areas, infrastructure complications have exacerbated the problem. Both countries began constructing alternate roads to avoid crossing into each other’s territory, but rugged terrain and limited financial resources have slowed progress.

One of the most challenging areas is the road connecting Batken to the Kyrgyz village of Ak-Sai and the Tajik enclave of Vorukh. This road weaves through Kyrgyz and Tajik territory several times, and in some sections, the road itself serves as the border.

28 Jan 2025

Home, Business & Economy, Kazakhstan International Affairs, Kazakhstan Opinions, Features, Kazakhstan Featurees

Kazakhstan and the UAE Are Building a Geoeconomic Powerhouse Spanning Asia and the Gulf

January 28, 2025
By Dr. Robert M. Cutler

Kazakhstan President Kassym-Jomart Tokayev’s recent mid-January visit to the United Arab Emirates (UAE), to attend the Abu Dhabi Sustainability Week (ADSW) Summit, underscores the strategic importance both nations place on their bilateral ties. ADSW is a prominent global platform dedicated to accelerating sustainable development and promoting international cooperation on the global environmental agenda. The 2025 summit — with the theme, “Nexus of Next: Supercharging Sustainable Progress” — was designed specifically to explore advanced technologies such as artificial intelligence, renewable energy, and innovative sustainability solutions.

As leader of the most dynamic of the Central Asian economies, President Tokayev’s presence signaled his country’s ambition to play a more prominent role in addressing environmental challenges at an international level. In his keynote speech, Tokayev addressed environmental issues that are particularly critical for Kazakhstan, including desertification, biodiversity loss, water scarcity, and food security. He emphasized his country’s multifaceted approach to these challenges, which includes digital technologies, large-scale infrastructure projects, and the development of nuclear energy as a low-carbon solution.

Kazakhstan has recently launched initiatives, such as expanding solar and wind farms and implementing advanced irrigation systems to combat desertification. Tokayev also highlighted Kazakhstan’s commitment to meeting its renewable energy targets, aiming to generate 15% of its electricity from renewables by 2030, in partnership with global leaders in green technology.

Overall, the ADSW Summit provided a platform for Kazakhstan to engage with international partners, share its vision for sustainable development, and explore collaborative opportunities to address global environmental challenges. Kazakhstan’s efforts include the development of the Mohammed bin Rashid Al Maktoum Solar Park, which will have a capacity of 5,000 megawatts (MW) by 2030, and participation in the Space-D programme, which enhances operational performance through nano-satellites.

In particular, President Tokayev met with UAE President Sheikh Mohamed bin Zayed Al Nahyan to discuss bilateral relations. The two leaders agreed to focus on a specific economic agenda — focused on trade, investment, and sustainable development — to create positive bilateral trade dynamics. Their Joint Declaration on Strategic Investment Projects in these fields was also highlighted.

Kazakhstan and the UAE have developed a dynamic and multifaceted partnership over the past three decades. Since establishing diplomatic relations in 1993, the UAE has become Kazakhstan’s leading strategic partner in the Arab world. Early cooperation focused on trade and investment but has since expanded to include sectors such as petrochemicals, energy, transport, logistics, agriculture, and aerospace. Key milestones include the establishment of direct flight routes between the two countries and the signing of long-term investment agreements in the mid-2000s.

Tokayev noted that direct investment from the UAE into Kazakhstan more than doubled from 2023 to 2024, placing the country among the top ten largest foreign investors in Kazakhstan. A focal point of their discussion was the goal of increasing bilateral trade turnover to $1 billion. In this context, the Dubai International Chamber has established a representative office in Kazakhstan to boost trade and investment opportunities further still.

For several years, the UAE has been expanding its cooperation with the Greater Caspian Sea region, including Azerbaijan as well as Central Asia. The UAE’s renewable-energy company Masdar has established or will establish renewable energy projects — mainly wind energy — in Azerbaijan, Kazakhstan, and Uzbekistan. It is foreseen that much of the generated electricity may be exported to Europe via subsea cables across the bottom of the Caspian Sea and the Black Sea.

Likewise, the Abu Dhabi National Oil Company (ADNOC) is cooperating in the petrochemical sector in Azerbaijan’s offshore as well as in Kazakhstan and Turkmenistan. This cooperation includes the construction of value-added industries that will enable these countries to export refined petrochemical products.

The growing relationship between Kazakhstan and the UAE is thus representative of a broader strategic geoeconomic alignment. Kazakhstan’s vast natural resources and strategic location in Central Asia, in particular, offer the UAE significant opportunities. The UAE is a global hub for trade and innovation, and it benefits from being a “third party” that offers another vector of partnership to countries concerned about Chinese and Russian geoeconomic and strategic influence in the region.

The UAE’s bilateral agreement with Kazakhstan on investment cooperation in data centers and artificial-intelligence projects in Kazakhstan will assist in the development of the Trans-Caspian International Transport Route (TITR, also called the “Middle Corridor“) that will help to create new export markets for Central Asia. The strengthening of ties between Kazakhstan and the UAE provides potentially all Central Asian countries with increased access to global markets through the UAE’s advanced logistics networks. It likewise offers a model for other Central Asian nations seeking to diversify their international relationships.

The expanding relationship between Kazakhstan and the UAE highlights the emergence of a broad geoeconomic “meta-region” that will stretch from the Arabian Peninsula through the South Caucasus and across the Caspian Sea into Central Asia. If the present regime in Tehran collapses, then Iran (and possibly Iraq) could be included in this restructured economic space. Such a development would contribute to global geopolitical stability over the next two decades, which will be increasingly turbulent.

Kazakhstan’s role as a resource-rich, strategically positioned state complements the UAE’s capabilities as a global logistics and innovation hub. This partnership demonstrates how targeted investments in energy, technology, and infrastructure can create mutual benefits while reshaping regional dynamics. The UAE’s diversification strategy aligns seamlessly with Kazakhstan’s ambitions to enhance its international connectivity and reduce economic dependencies on traditional partners. Kazakhstan will not be the only country in the Greater Caspian Sea region to undergo such a reorientation with the addition of a geoeconomic “vector” to the Arabian Peninsula.

28 Jan 2025

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

Kazakhstan Restricts Poultry Imports from U.S. and Germany Due to Avian Flu

January 28, 2025
By Vagit Ismailov

Kazakhstan has temporarily suspended the import of poultry products from Delaware and South Carolina in the United States, as well as from the German state of Baden-Württemberg, due to outbreaks of avian flu in these regions. The decision was announced by Kazakhstan’s authorities and is based on data from the World Organization for Animal Health.

The ban covers a broad range of items, including live poultry, hatching eggs, down and feathers, poultry meat, and any poultry products that have not been heat-treated at a minimum temperature of 70°C. Additionally, the restrictions apply to feed and feed additives (excluding those derived from plants or produced through chemical or microbiological synthesis), hunting trophies from game birds that have not undergone taxidermy treatment, and used equipment for poultry farming, slaughter, and processing.

The measures concerning Baden-Württemberg took effect on January 20. These steps follow earlier restrictions imposed on January 14, when Kazakhstan banned livestock imports from Germany due to an outbreak of foot-and-mouth disease in the Brandenburg region.

Kazakhstan’s veterinary authorities continue to monitor the global epizootic situation closely in order to respond swiftly to any threats posed by the spread of dangerous animal diseases.

28 Jan 2025

Central Asia, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy

Kyrgyz Businesses and Government Meet to Discuss New Tax Initiative

January 28, 2025
By Anton Chipegin

Government officials, members of parliament, and entrepreneurs gathered at one of Kyrgyzstan’s largest business associations to discuss pressing issues affecting the country’s business environment, including taxation and efforts to streamline processes for entrepreneurs.

The primary focus of the meeting was the introduction of the electronic bills of lading (EBL) system. The Times of Central Asia has previously reported on the challenges businesses face with this new system. The State Tax Service (STS) has pledged to revise the EBL system by the end of the month to address concerns raised by the business community.

Almambet Shykmamatov, head of the STS, acknowledged that authorities had rushed the implementation of the EBL system without adequately considering the interests of businesses.

“We understand that the market is a complex system that cannot be changed overnight. We are committed to dialogue and compromise. Our goal is not only to regulate but also to support businesses. That’s why continuous engagement with the business community is essential,” Shykmamatov stated.

Beyond electronic bills of lading, entrepreneurs raised concerns over the lack of preventive measures in Kyrgyzstan’s system of fines. Akzhol Isayev, general director of Dordoi Security, highlighted that unlike Russia and Kazakhstan, which have legal provisions for issuing warnings, Kyrgyzstan imposes penalties without warnings.

“Kyrgyzstan has 11 articles with fines, but none that provide for warnings,” Isayev explained. He also noted that some fines, which can reach as high as one million KGS (approximately $12,000), often lead to business closures or encourage corruption.

Shykmamatov admitted that excessive tax pressure can harm the business environment. Consequently, participants decided to establish a working group to review and reform the system of penalties, aiming for a more business-friendly approach.

Sergei Ponomarev, president of the Association of Markets, Trade, and Services Enterprises, emphasized that protecting private property is critical for attracting investment. However, he warned that businesses in Kyrgyzstan are hesitant to invest in real estate due to legal uncertainties.

“An entrepreneur might honestly purchase property, invest in it, and create jobs, only to later discover that the land was acquired illegally 30 years ago. This uncertainty makes businesses afraid to commit to long-term projects,” Ponomarev said.

To address this issue, the business community has proposed the introduction of a statute of limitations for real estate transactions.

“It’s encouraging when the state not only listens to our problems but also offers constructive solutions. I am confident that this approach will improve the investment climate and raise the standard of living for our citizens,” Ponomarev added.

The STS noted that similar meetings have been held with representatives of logistics companies, the Chamber of Commerce and Industry, and the American Chamber of Commerce in Kyrgyzstan.

28 Jan 2025

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

Kazakhstan Ships First Batch of Kashagan Oil to Baku

January 29, 2025
By Vagit Ismailov

Kazakhstan has shipped its first batch of oil from the Kashagan field to the Azerbaijani port of Baku, marking a significant step in the country’s efforts to diversify its export routes. The shipment was confirmed by the national oil company KazMunayGas (KMG).

The tanker Taraz, carrying Kashagan oil, departed from the port of Aktau and is en route to Azerbaijan. Upon arrival in Baku, the oil will be transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline system to the Mediterranean Sea. The export operation is being carried out by KMG Kashagan B.V., a subsidiary of JSC NC KazMunayGas, which manages Kazakhstan’s share in the North Caspian Production Sharing Agreement (PSA).

This initiative aligns with Kazakh President Kassym-Jomart Tokayev’s directive for KazMunayGas to develop alternative hydrocarbon export routes. The shipment also advances the development of the Trans-Caspian International Transportation Route, a vital corridor for Kazakhstan’s oil exports.

In 2022, KazMunayGas and Azerbaijan’s state oil company SOCAR signed a general agreement to enable the transit of Kazakh oil. In March 2024, the two parties finalized plans for a phased increase in deliveries through Azerbaijan. Under the agreement, annual transit volumes are expected to reach 2.2 million tons.

KMG Kashagan B.V., which holds a 16.88% stake in the North Caspian PSA, represents Kazakhstan’s interests in the North Caspian Project (NCP). The company is responsible for the exploration and production of hydrocarbons in the Caspian Sea, as well as the independent transportation and sale of its production share under the PSA’s terms.

Energy analysts highlight that diversifying export routes will help Kazakhstan reduce its reliance on traditional oil supply corridors, thereby increasing flexibility and resilience in the face of global market volatility.