Page 476 – The Times Of Central Asia

27 Nov 2024

Central Asia, Environment, Kazakhstan Environment, Kazakhstan Local Politics, International Affairs, Local Politics, Kazakhstan, Business & Economy

Kazakhstan Increases Water Allocation to Restore the Aral Sea

November 28, 2024
By Vagit Ismailov

Kazakhstan plans to direct an additional 1.6 billion cubic meters of water to the Aral Sea by April 2025, announced Nurzhan Nurzhigitov, Minister of Water Resources and Irrigation. This initiative builds on efforts from October 2023 to April 2024, during which 1.3 billion cubic meters were allocated, bringing the total water volume in the Northern Aral Sea to 22 billion cubic meters as of early 2024.

Minister Nurzhigitov emphasized that adopting water-saving technologies is essential for restoring the region’s water balance. In 2024, farmers in the Kyzylorda region conserved 200 million cubic meters of water, enabling additional flow into the Northern Aral. These technologies also facilitated the allocation of 1 billion cubic meters to the Aral Sea during the 2024 irrigation season, a threefold increase compared to the previous year.

The preservation of the Aral Sea is a national priority, addressed through regional collaboration and strategic planning. At the 87th meeting of the Interstate Commission for Water Coordination of Central Asia (ICWC) in Turkmenistan, agreements were made to channel 11 billion cubic meters of water to the Shardara reservoir by April 1, 2025. This move aims to ensure sufficient irrigation for southern Kazakhstan’s 2025 growing season.

27 Nov 2024

Central Asia, Kazakhstan Local Politics, Local Politics, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan Explores Agro-Drones to Revolutionize Agriculture

November 27, 2024
By Sergey Kwan

The potential of drones to transform agriculture in Kazakhstan was a key topic at a government meeting on November 26. Officials discussed the environmental and economic advantages of adopting agro-drones over traditional spraying equipment.

International examples demonstrate that agro-drones can significantly reduce water usage, lower CO2 emissions, and access hard-to-reach areas more effectively. Sanzhar Nurgazinov, representing a company that operates agro-drones, highlighted their efficiency: while wheeled sprayers require 150 liters of water per hectare—amounting to 750,000 liters for 5,000 hectares—a drone uses just 50,000 liters for the same area, reducing water consumption more than 15-fold. Additionally, drones prevent the 6% crop loss caused by the tracks of wheeled sprayers, ensuring higher harvest yields.

To advance drone adoption, Kazakhstan’s Ministry of Agriculture has partnered with the Chinese company Eavision to import 80 drones for pest and disease management. Furthermore, a joint venture, Sunkar Eavision International LLP, has been established to assemble drones locally in the Alatau Special Economic Zone near Almaty.

The Ministry has been tasked with creating a roadmap by February 2025 for integrating agro-drones into the country’s agricultural practices. This plan includes establishing service centers, training specialists, and developing financial support programs to help farmers acquire this cutting-edge technology.

By embracing agro-drones, Kazakhstan aims to modernize its agricultural sector, boosting efficiency and sustainability while addressing the challenges of water conservation and crop protection.

27 Nov 2024

Home, Silk Road Treasures, Uzbekistan Environment, Environment, Kazakhstan Environment, Uzbekistan, Uzbekistan Features, International Affairs, Kazakhstan International Affairs, Kazakhstan, Features, Uzbekistan International Affairs, Kazakhstan Featurees

The Amu Darya and the Aral Sea Crisis: Voices from the Heart of an Environmental Disaster

May 1, 2025
By Sadokat Jalolova

A documentary entitled Amu Darya: Missing to the River has been produced as part of Project Amu Darya. This initiative began in 2022, and is a collaboration between students from Karakalpakstan, Khorezm, and Oxford University in the UK.

This research is important for several reasons. Firstly, the Aral Sea crisis, which is one of the most severe man-made ecological disasters in history, is under-reported by the global media. Secondly, the academic field is limited – outside of Uzbekistan, the historiography of the Aral crisis is still a developing field. Thirdly, the geographical scope of research is limited. Research is often focused on the Aral Sea itself, and does not take into account the impact on the wider region. Finally, there is no involvement of stakeholders. The personal experiences of those living along the Amu Darya River are often excluded from studies.

Amu Darya: Missing to the River screening – image: TCA, Sadokat Jalolova

The Amu Darya is one of the two main rivers feeding the Aral Sea. Irrigation in the Amu Darya basin has been carried out for more than three thousand years. However, the current Aral Sea crisis was caused by mismanagement during the Soviet and post-Soviet eras.

International donors have intensified their efforts to address the crisis. By December 2022, the UN Multi-Partner Human Security Trust Fund for the Aral Sea Region had raised over $16 million to support communities affected by the disaster. Established in 2018, the fund helps mitigate the environmental and social consequences of the crisis. President Mirziyoyev’s government has also lifted many data restrictions, allowing more research in the region. In 2017, the United Nations conducted the first socioeconomic survey of Aral Sea communities.

Aralkum Desert, former Aral Sea; image: TCA, Sadokat Jalolova

Central Asian countries are also cooperating to solve the problem of water level reduction in the Aral Sea. This year, as a result of the introduction of water-saving technologies on 55,000 hectares of rice fields in Kazakhstan, more than 200 million cubic meters of water were directed to the Aral Sea.

The Times of Central Asia spoke with Annie Liddell, one of Project Amu Darya’s co-founders. She shared her thoughts about the inspiration behind the documentary. According to Liddell, the team were inspired by Svetlana Alexievich’s book Voices of Chernobyl. The author used oral interviews to highlight the personal stories behind the environmental disaster, making it more relatable. Liddell explained that the film aims to preserve the authenticity of interviewees’ voices and connect their stories of the Amu Darya’s past with the reality of its present state, which is a rapidly spreading desert.

Local communities played a central role in the film’s creation. Students from Karakalpak State University and Urgench State University contributed to the research. Residents of Karakalpakstan and Khorezm also shared their personal stories, and provided insights into their culture and stability.

Image: Project Amu Darya

The documentary depicts different historical periods and personal experiences. It covers the period of Zoroastrianism, early Russian history, and events from the 1930s to the present day. The team spoke with interviewees of widely-differing ages, including a 94-year-old woman and a 17-year-old girl. These stories highlight the differences between generations in how people in the Amu Darya delta view water and environmental issues.

Liddell hopes the documentary will raise awareness about the impact of human activities in environmental problems. “Many people in the Aral Sea Region are not aware or are reluctant to talk about the fact that the Aral Sea Crisis was caused by unsustainable water management,” she noted; “but if we do not address this fact, we cannot combat ongoing water management problem.”

The team has ambitious plans for the future, and hopes to use the documentary, along with other resources, to improve communication and youth education on the crisis. “We are working to expand our project’s work to create a multimedia educational toolkit on climate change in the Aral Sea Region,” Liddell told TCA. “A big issue surrounding the Aral Sea Crisis is that few people in Uzbekistan – especially young people – have access to information or education about the crisis.”

The documentary also captures voices from the region. Reflecting on the loss of the Aral Sea, former fisherman Oralbay Otegenov explained that the sea once provided ample fish for local consumption and export, but now it has become a desert. “After the Aral Sea dried up, the irrigation canals also dried up. Now, if you look at the river’s breadth, it’s all desert. If the Aral Sea still existed, we would catch a lot of fish for Uzbekistan and export them to other places, too. Now, there is nothing,” said Otegenov.

Oralbay Otegenov; image: TCA, Sadokat Jalolova

The Aral Sea produced 30% of Soviet catch in the 1920s, and saved Russia from widespread famine.

Drastic changes have since harmed the ecosystem, threatening many fish species, including three unique species of sturgeon. The loss of such species has disrupted the natural balance and affected the livelihoods of the local communities which previously depended on fishing. To revive fisheries, the European flounder was introduced, but the ecosystem is now on the verge of collapse, with the fishing industry decimated, causing job losses and economic difficulties.

Seventeen-year-old Aynura expressed concerns about the health impacts of air pollution in the area. Yusup Kamalov, chair of the Union for Defense of the Aral Sea and Amu Darya, highlighted inequalities in the use of water use, detailing how upstream users pollute the water, leaving downstream communities to drink poison. “We have discrimination, not by race, not by nations, but we have discrimination by geographical location,” Kamalov stated.

Project Amu Darya is a testament to the urgent need to eliminate the negative impact of the Aral Sea crisis on humans and the environment.

The team plans to hold further screenings of the documentary in Uzbekistan, starting in February 2024.

27 Nov 2024

Central Asia, International Affairs, Kyrgyzstan, Kyrgyzstan International Affairs, Local Politics, Business & Economy, Kyrgyzstan Local Politics, Kyrgyzstan Business & Economy

China Constructs Vital Fertilizer Plant to Boost Agriculture in Kyrgyzstan

November 27, 2024
By Sergey Kwan

Construction has started on a Kyrgyz-Chinese mineral fertilizer plant in the Nookat district of southern Kyrgyzstan’s Osh region. On November 25, equipment worth $15 million arrived from China to advance the project.

The $260 million investment agreement for the plant was signed in May 2023 between Kyrgyzstan’s Ministry of Agriculture and China’s Hebei Bai Dou Jia LLC during President Sadyr Japarov’s visit to China.

The project will be executed in phases, with the first phase set for completion by 2025. This initial phase aims to produce 100,000 tons of fertilizer annually. Future phases include plans for an agricultural machinery assembly plant and expanding production capacity to 500,000 tons per year. Once fully operational, the facility is expected to generate around 2,000 jobs.

The plant is a strategic move to reduce Kyrgyzstan’s dependency on imported mineral fertilizers. Currently, the country imports most of its 286,000-ton annual demand from Uzbekistan and Russia. The new facility is poised to meet and exceed domestic needs, boosting agricultural productivity and supporting the country’s economy.

27 Nov 2024

Central Asia, Home, International Affairs, Kyrgyzstan International Affairs, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Features, Kyrgyzstan Features

EBRD’s Transformative Investments in Kyrgyzstan: An Interview With Hüseyin Özhan, Managing Director for Central Asia

November 29, 2024
By Henry Kuvin

The European Bank for Reconstruction and Development (EBRD), established in 1991, has been working in the Kyrgyz Republic since 1992 and has invested in over 250 projects amounting to over €1 billion. TCA sat down with Hüseyin Özhan to discuss the bank’s operations in Kyrgyzstan.

TCA: Could you briefly introduce the EBRD and its main objectives within Kyrgyzstan?

Özhan: The European Bank for Reconstruction and Development (EBRD) is owned by 73 shareholders as well as the EU and the EIB and has been operating in Kyrgyzstan for over 30 years. During this time, we have invested in more than 250 projects, surpassing €1 billion in total investments across the country. As an international financial institution, our operations in Kyrgyzstan are guided by a country strategy jointly prepared by the EBRD and local stakeholders and approved by the Bank’s Board of Directors. This year marks a significant milestone, as we have approved a new five-year country strategy outlining our priorities in Kyrgyzstan. We focus on fostering private sector growth and enhancing competition and also invest in infrastructure and sovereign-guaranteed projects. These efforts position the EBRD as one of the most influential international players in Kyrgyzstan.

TCA: You mention the bank recently approved its new five-year strategy for Kyrgyzstan; could you share what this plan entails?

Özhan: Our country’s strategies are built on diagnostics conducted to identify transition gaps. These strategies align with the EBRD’s Strategic and Capital Framework and the Bank’s medium-term strategy and combine elements of the reform agenda and investment needs.

The new strategy for Kyrgyzstan focuses on three key priorities: private sector development and competitiveness, the green economic transition with an emphasis on decarbonization and energy efficiency, and improved connectivity across the country. These priorities align closely with Kyrgyzstan’s recent reform agenda and development goals, which aim to enhance competitiveness, attract foreign investment, boost trade, and strengthen the country’s regional relevance.

Decarbonization and resource efficiency are particularly critical, as Kyrgyzstan is significantly impacted by regional water scarcity. This makes sustainable water management a central focus, with numerous projects planned to support sustainable development in this sector.
Additionally, developing the private sector, particularly local businesses, is vital. The EBRD works closely with the government in this regard, not only by providing funding but also through initiatives like “risk-sharing networks” and advisory programs for small businesses. These efforts help enhance productivity, relevance, and competitiveness, ensuring that Kyrgyzstan’s private sector is well-equipped to thrive in the market.

TCA: How does EBRD’s mission differ from other development banks or financial institutions in the region?

Özhan: Our institution has a slightly different approach to delivering our work and fostering transition in Kyrgyzstan. Unlike some other international financial institutions (IFIs) that provide budget support, the EBRD operates on a project-by-project basis and channels most of its resources to support good private-sector initiatives. A recent example of project finance is the signing of water projects in three cities in Kyrgyzstan. These sovereign lending agreements, signed with the Ministry of Finance, aim to modernize regional water networks.

The EBRD is the largest private sector investor among IFIs in Kyrgyzstan, with 68% of our investments directed towards private sector development. This emphasis on private sector engagement distinguishes us from other IFIs operating in the country.

Despite these differences, there is strong collaboration with our partner institutions as we all work toward Kyrgyzstan’s sustainable development goals.

TCA: What are the main problems with the current water infrastructure, and how will modernizing it benefit Kyrgyzstan and the region?

Özhan: This is a regional challenge affecting all of Central Asia. Aging infrastructure across the region requires substantial investment to modernize and improve resource efficiency. Central Asia is experiencing the effects of climate change at a rate higher than the global average, with regional temperature increases projected to exceed the global mean. Combined with relatively scarce water resources, this creates an urgent need for significant investments in water security, sustainable water supply, and effective water sector management, including irrigation systems.

In Kyrgyzstan, the situation is particularly critical. By 2040, the country is expected to be among those most affected by water stress. To address this, we are collaborating with Kyrgyz authorities to implement green policies aimed at mitigating the problem. Our support includes providing financial and advisory services to both private and public entities on climate risk management, climate governance, and climate-resilient investments. Efficient water use and the sustainability of resources are central to Kyrgyzstan’s future and the region as a whole.

The challenge of aging infrastructure is a shared issue across Central Asia, much of it dating back to Soviet times, with minimal modernization undertaken since. This has resulted in significant water loss in both potable and wastewater systems. The scale of the need is immense, and regional authorities are increasingly aware of the looming water stress.

We are addressing these challenges through various projects across Central Asia. This year, in Kazakhstan, we signed the largest wastewater treatment facility financing project in the region. In Uzbekistan, we are collaborating with the national water company, Uzsuvtaminot, on multiple initiatives. In Mongolia, we are working on both potable and wastewater projects, and similar efforts are underway in Tajikistan. Our focus remains on addressing these critical infrastructure gaps to ensure sustainable water management for the region’s future.

TCA: Has there been a focus on new sustainable agricultural infrastructure like drip irrigation or hydroponic agriculture?

Özhan: According to EBRD guidelines, irrigation is classified as infrastructure. All the irrigation projects we work on incorporate state-of-the-art technology to maximize efficiency and promote sustainable resource utilization. We ensure that these projects adhere to global best practices in order to set high standards for sustainability and effectiveness.

In addition to infrastructure projects, we complement these efforts by offering SME loans through our partner banks, specifically tailored to support the agribusiness sector. For instance, we are currently developing a new product, which is not on the market yet, focused on agribusiness. This initiative aims to further bolster the growth and modernization of the sector.

TCA: What role does the EBRD play in fostering innovation and supporting startups in Kyrgyzstan?

Özhan: Supporting startups and venture capital is a key priority for us. One noteworthy initiative is the Star Venture program, which provides targeted support to promising startups for a minimum of 18 months. Through a partnership with Cambridge University, participants receive advisory training, strategic thinking courses, and workshops to help them secure funding and scale their businesses.

Additionally, two other flagship programs deserve mention: Women in Business (WiB) and Youth in Business (YiB). The WiB program is designed to support companies owned and operated by women, including startups and micro-enterprises. Meanwhile, YiB, launched a year and a half ago, focuses on empowering young entrepreneurs by supporting businesses led and managed by youth. Together, these programs offer substantial backing to small and medium-sized enterprises (SMEs) and micro, small, and medium-sized enterprises (MSMEs), fostering innovation, inclusion, and growth in the business ecosystem.

TCA: Is there an emphasis on one particular industry in Kyrgyzstan?

Özhan: While it’s difficult to single out a specific sector in Kyrgyzstan, the country does have a competitive edge in certain areas, particularly tourism. In the post-COVID era, the Issyk-Kul region, with its stunning natural beauty, holds tremendous potential for tourism. This sector is expected to thrive in the short, medium, and long term, making it a standout area for development.
Our support for water projects in the region is designed to preserve its natural environment, ensuring sustainable development. Similarly, the road infrastructure projects we are financing aim to create a more favorable environment for tourism growth. Additionally, the government is deeply committed to developing this sector, further underscoring its importance to Kyrgyzstan’s economy.

TCA: Has there been any notable collaboration between EBRD and China’s Belt and Road Initiative (BRI)?

Özhan: East-west connections are crucial for the Central Asian market as a whole. We have conducted an extensive study focusing on sustainable transport corridors that link the East with Europe. The study identifies both soft and hard infrastructure investments needed to establish sustainable and efficient transport alternatives along these corridors.

This analysis highlights priority investments not only in Kyrgyzstan, but across the entire Central Asian region. These investments aim to boost economic activity, enhance export capacity, and create more efficient, sustainable connections between the East and West, fostering regional integration and development.

TCA: Are there any sectors besides tourism that will come into focus over the next five to ten years?

Özhan: While Kazakhstan had the right conditions for an IT boom, it will be critical raw materials in Kyrgyzstan. This industry will be very important, and the government wants to further develop to generate larger foreign currency revenues. Renewable electricity generation, which is directly linked with water management as well, particularly with the Kambarata HPP, will change the cause for Kyrgyzstan’s energy security and regional integration. Renewable energy will be, especially through a large project like the Kambarata HPP, key for the country. The last sector I want to mention is the local SMEs; these are the ones who will be providing resilience for the economy. The government is showing a willingness to improve its legislation to attract new investments, particularly in the mining sector.

26 Nov 2024

The Geopolitical Battle for Control Over Transportation Routes in Central Asia

January 3, 2025
By Nikola Mikovic

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.