Page 839 – The Times Of Central Asia

05 Mar 2024

Central Asia, Environment, Turkmenistan, Turkmenistan International Affairs, Turkmenistan Business & Economy, Business & Economy, Turkmenistan Environment

Turkmenistan and Afghanistan Discuss Collaborative Projects

June 28, 2024
By Times of Central Asia

On March 4th, a large Afghan delegation led by Nooruddin Azizi, Minister of Industry and Trade of Afghanistan, participated in a Turkmen-Afghan business forum and exhibition of Afghan goods in Ashgabat.

Issues discussed included Turkmen-Afghan partnerships in trade, industry, agriculture, transport, communications, and electricity supply. Also on the agenda were oil and gas which alongside textiles, comprise Turkmenistan’s main exports to Afghanistan.

As reported by the Turkmen Foreign Ministry, special attention was paid to the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and the Turkmenistan-Afghanistan-Pakistan (TAP) high-voltage power transmission line. The group also focused on the establishment of transport routes and in particular, railways from Turkmenistan to Afghanistan.

Azizi emphasized the desire of the Afghan business sector to further increase trade with Turkmenistan, develop Afghanistan’s infrastructure, and exploit the transit potential of both countries.

Afghan TOLOnews, quoting Mergen Gurdov, head of the Chamber of Commerce and Industry of Turkmenistan, reported that in 2023, trade between Turkmenistan and Afghanistan generated $457 million and this January alone, $46 million.

The agro-industrial sector was cited as a promising field for Turkmen-Afghan cooperation, with the Turkmen Foreign Ministry raising the issue of transboundary water resources.
Turkmenistan insists that the use of water involves cooperation with neighboring countries, conducted in accordance with international law, and based on principles of mutual respect and in the spirit of traditional good neighborliness.

Afghan Minister Azizi pledged that regarding the use of transboundary water resources and construction of water facilities to further the prosperity of his people, Kabul will honour principles of mutual consent and respect for neighboring countries, especially Turkmenistan, with whom Afghanistan has long maintained an amicable relationship.

The issue came to the fore last month following Afghanistan’s announcement that construction has begun on the second phase of the Qosh Tepa Canal; a project prioritized by the Taliban- led government since early 2022.

By diverting water from the Amu Darya River, the canal will convert 550,000 hectares of desert into farmland in northern Afghanistan, but could also have an adverse effect on agriculture in downstream Uzbekistan and Turkmenistan.

05 Mar 2024

Central Asia, Turkmenistan International Affairs, Turkmenistan

Turkmenistan Eyes Greater Role in Organization of Turkic States

June 27, 2024
By Times of Central Asia

Turkmenistan may become a full member of the Organization of Turkic States this year. Gurbanguly Berdimuhamedov, the country’s former president and current chairman of its Halk Maslahaty (People’s Council), suggested as much in response to media questions during the Antalya Diplomatic Forum in Turkey, according to Turkmen state news outlet TDH.

The Organization of Turkic States comprises countries that speak Turkic languages: Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan. Its principal aim is to promote collaboration and goodwill among its member nations. Turkmenistan is currently only an observer of the organization, together with Hungary.

Berdimuhamedov suggested last year during the organization’s summit in Astana, Kazakhstan, that the organization could collaborate on a plan he had devised for cooperation in the energy sector.

05 Mar 2024

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy, Features

Kazakhstan to Extend Voluntary Oil-Production Cut at 82,000 Barrels Per Day

June 27, 2024
By Times of Central Asia

Kazakhstan has decided to extend the voluntary reduction in oil production through the end of the second quarter of 2024 to preserve the supply-demand balance and ensure the sustainability of oil markets, according to a statement from representatives of the Kazakh Ministry of Energy. Under this prolonged initiative, oil production in Kazakhstan will amount to 1.468 million barrels per day (bpd) until the end of June 2024. Subsequently, these volumes will be returned in order to maintain market stability.

Previously, Kazakhstan had already agreed to a similar initiative: in April last year, it undertook a voluntary reduction in oil production by 78,000 bpd.

The extension of additional voluntary oil production cuts was also announced by almost all OPEC+ member countries. The output restrictions, which came into effect on January 1 and amount to about 2 million barrels per day, will remain in effect until the end of June.

Saudi Arabia announced a further extension to its voluntary oil production cut of one million barrels per day which was initiated last July. By June 2024 of the restriction period, Saudi Arabia’s oil production will be at its lowest level since 2011 – 9 million barrels per day.

Russia also announced the prolongation of additional oil production cuts. In the second half of the year, Russia intends to limit its production and exports by a total of 471,000 barrels per month. In April, Russia will reduce production by 350,000 barrels and exports by 121,000 barrels; in May by 400,000 barrels and 71,000 barrels, respectively; and in June only production will be reduced by 471,000 barrels for the month.

The voluntary extension of output restrictions was also supported by other member states, namely the UAE, which reduced daily oil production by 163,000 barrels. Kuwait will hold its oil production lower by 135,000 barrels per day; Algeria reduced oil production by 51,000 barrels per day, and Oman by 42,000.

According to the Iraqi News Agency, Iraq will withhold production to the tune of 220,000 bpd in the first half of 2024, and targets a production rate at the end of June 2024 at four million bpd. In January of this year, the country’s oil production, according to OPEC data, amounted to 4.194 million bpd.

05 Mar 2024

Central Asia, Kyrgyzstan, Kyrgyzstan Business & Economy

Kyrgyz Government Speaks About Energy, Transport And Mining

September 26, 2024
By Times of Central Asia

A group of World Bank representatives has visited Kyrgyzstan’s presidential office building in Bishkek, where they met with the country’s president Sadyr Japarov, followed by a meeting with the head of the Kyrgyz government, Akylbek Japarov. Both meetings discussed economic projects in Kyrgyzstan, as well as prospects for cooperation between the republic and the World Bank.

“Over the past two years, high rates of economic growth have been achieved. In 2022 — 9 percent, in 2023 — 6.2 percent. These are the highest rates in the last 10 years. Last year, Kyrgyzstan’s GDP reached [1.229 trillion som] ($13.7bn) for the first time in history,” Sadyr Japarov commented, adding that developing green technologies remains an important task for Kyrgyzstan against the backdrop of global climate change.

President Japarov expressed confidence that the World Bank will retain a leading role in promoting the construction of the large hydroelectric power plant (HPP) Kambarata-1 on the Naryn River — and will help attract sponsors to this project. When completed it will be one of the largest power plants in Central Asia.

The World Bank’s executive director Dominique Favre assured that his staff , together with Kyrgyz specialists, are preparing an updated version of the feasibility study for the construction of Kambarata-1. The World Bank has agreed to allocate $5m for this study.

The Kyrgyz side briefed the World Bank delegates on a major transportation project in Kyrgyzstan — the construction of the China-Kyrgyzstan-Uzbekistan railroad, which is to begin this year. Mr Favre commented that the authorities attach special importance to the development of road infrastructure.

The World Bank made it clear that they are more interested in hydropower, noting their readiness to help find investors for the Kambarata HPP. Kyrgyzstan needs to have a holistic approach to using water resources, the representatives stressed, and energy development is the only way to ensure green development throughout Central Asia.

Besides Kambarata, Kyrgyzstan is now actively discussing the construction of a small nuclear power plant. Also recently, Kyrgyz representatives submitted for public discussion the abolition of a ban on developing uranium and thorium deposits in the country. The authorities believe that uranium and thorium mining and exports could become important components of the republic’s economy.

05 Mar 2024

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

Foreign Investors Abandon Industrial Projects in Kazakhstan

June 27, 2024
By Times of Central Asia

Over the past four years Kazakhstan has suspended six planned projects involving foreign investors. A lack of funding, changes in market conditions, logistical difficulties and the overall geopolitical situation have been cited as reasons for their abandonment.

The first project to be suspended was the production of fiber optic products in Almaty. The Turkish company BC Fiber Group built a warehouse in the city to sell finished products, and expected to localize production in the area, but refused to open a fabrication plant.

The second project involved a ridesharing company from China, DiDi Global, which planned to begin operations in Kazakhstan — but eventually scrapped those plans when it was unable to withstand changes in market conditions and increased competition.

The third cancellation was by the American company Conduent, which planned to implement a national system of toll collection on the roads of Kazakhstan. It rethought its plans after a profitability review.

Agro Global GmbH from Germany wanted to localize production of agricultural machinery in the Akmola region. This also never came to fruition, with the reason this time being a lack of funding by the investor. The list also includes a project for construction of a cattle-breeding complex in the Almaty region by Italian investor Inalca. This was also due to a lack of financing.

The sixth project on the list was planned development of the Alaigyr lead-silver deposit in the Karaganda region. Turkish investor Eczacibasi Holding was interested in pursuing the mining project, but after due diligence, the company declined to continue due to what it deemed as insufficient reserves at the deposit.

04 Mar 2024

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

Kyrgyzstan Resumes Construction Work on Pakistan Electricity Export Project

June 27, 2024
By Times of Central Asia

As the process of normalizing relations continues between Kyrgyzstan and Tajikistan, representatives of both sides have met in Bishkek to discuss the CASA-1000 (Central Asia-South Asia) power export project. According to Kyrgyzstan’s Ministry of Energy, Kyrgyzstan has signed a joint declaration with Pakistan and Tajikistan to resume construction of high-voltage transmission lines in Kyrgyzstan, Tajikistan, Afghanistan and Pakistan, to export electricity to Pakistan. It is reported that construction work on the CASA-1000 project has been resumed in Afghanistan, where it was frozen after the Taliban came to power in 2021.

“This declaration thanks the World Bank for its prompt approval of the resumption of construction work on the CASA-1000 project in Afghanistan. It also reaffirms its readiness to fully support the implementation of the preconditions agreed with the World Bank Board for the resumption of construction in [Afghanistan]. This is a serious step forward in the region’s desire for energy cooperation”, said the Kyrgyz Ministry of Energy’s press service.

“Tajikistan is expected to supply 70 percent of the CASA-1000 project [electricity], and Kyrgyzstan the remaining 30 percent. [They’ll supply] a total of 1,000-1,300 MW of electricity per year,” Elzada Sargashkayeva, head of the public relations department of NENK (National Electricity Networks of Kyrgyzstan), told the Times of Central Asia.

In Afghanistan, construction of the power lines was 60% complete, the agency said.

Late last year, the World Bank allocated an additional $18.3m for Kyrgyzstan under CASA-1000 — on top of the $216m previously allocated for the project.

“For the Kyrgyz Republic, the CASA-1000 project provides for the construction of A/C power transmission lines (500 kV), with a length of about 456 kilometers. Currently, the project implementation is proceeding at an active pace: 1,243 [transmission towers] have already been installed (100 percent), work on suspension of wires on 287 kilometers of power lines has been completed (63 percent),” said World Bank Senior Energy Specialist Dmitry Glazkov.

Work on the project was suspended when the Taliban came to power in Afghanistan — and also due to the armed border conflict between Kyrgyzstan and Tajikistan, the international institute said. But the scope of work remains the same. The World Bank is allocating the additional support to bridge the funding gap caused by rising prices for goods and transportation after the Covid-19 pandemic and its ensuing broad economic crisis. The money will be given to Kyrgyzstan in the form of an interest-free loan for 50 years, with a 10-year grace period. The project’s target completion time is March 2025.

According to the World Bank, Central Asia has many renewable energy sources, and is strategically positioned to develop regional trade in electricity, the exchange of which is still limited. “In Kyrgyzstan and Tajikistan, hydropower plants generate more than 80-90 percent of electricity, but these countries use less than five percent of their hydropower potential, which is several times the combined demand of the entire region. At the same time, 90 percent of the energy needs of Uzbekistan, Turkmenistan and Kazakhstan are met by fossil fuels, which offers significant opportunities for decarbonization,” the World Bank report stresses.

The main obstacle to the generation and distribution of electricity and water resources is weak regional cooperation. Underscoring these problems is a mismatch in the timing of water needs for power generation and food production, World Bank experts said. Kyrgyzstan and Tajikistan, for example, need water in winter to generate electricity, while Kazakhstan, Turkmenistan and Uzbekistan need water in summer for agriculture.

Since 2022 an agreement has been in place on electricity exchange between Kyrgyzstan and Uzbekistan. Thus, under the agreement between the energy companies of the two countries,150 million kilowatt-hours (kWh) of electricity were supplied from Ruz to Kyrgyzstan in the spring of 2023 during the period of low domestic consumption in Uzbekistan. Kyrgyzstan, in turn, returned this amount of electricity during the summer season and also provided water for irrigation to the Uzbeks via the Naryn River.

Implementation of the CASA-1000 project started in January 2018. The project is a regional program to interconnect the power systems of four countries to transfer excess hydropower of 1,300 MW from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan.