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Asian Development Bank

ADB Approves $56.4 Million Disaster-Response Package for Tajikistan and Kyrgyzstan

The Asian Development Bank (ADB) has approved a $56.4 million program aimed at strengthening disaster-response capacity in Tajikistan and Kyrgyzstan, the bank announced in an official statement. According to the ADB, both countries face high exposure to earthquakes, floods, and other climate-related hazards. Their ability to respond effectively remains limited by constrained fiscal resources and a lack of risk-transfer mechanisms. The newly approved program is designed to enhance financial preparedness through two pre-arranged ADB financing instruments, each tailored to different levels of disaster risk. Innovative Tools for Disaster-Risk Financing The program incorporates two key components: Contingent Disaster Financing (CDF) and Disaster Resilience Bonds (DRB). CDF provides budgetary support during medium-scale natural disasters or public health emergencies. DRBs, issued on international capital markets, offer rapid liquidity for major, high-severity disasters. “This program will help reduce the fiscal burden on both countries following natural disasters, including geophysical events, extreme weather, and health emergencies,” said Leah Gutierrez, ADB Director General for Central and West Asia. She emphasized that the combination of policy reforms, institutional strengthening, and innovative financing marks a shift from reactive response to proactive disaster-risk management. Focus on Institutional Reforms and Regional Cooperation The initiative also emphasizes strategic policy reforms, capacity building, and governance improvements to ensure a coordinated and transparent disaster-risk management system. It was developed under ADB’s technical assistance program to establish disaster-risk transfer mechanisms in the Central Asia Regional Economic Cooperation (CAREC) region, a partnership supporting sustainable development and regional integration. The program will be financed through a $53.1 million grant from the Asian Development Fund (ADF), with an additional $3.3 million from the Asia-Pacific Climate Fund. ADF grants are targeted at the poorest and most vulnerable countries in the Asia-Pacific. From 2021 to 2024, the fund supported the lifting of 384,000 people out of poverty and the creation of approximately 500,000 jobs.

Finance

ADB Approves $300 Million Loan to Support Small Business Growth in Uzbekistan

The Asian Development Bank (ADB) has approved a $300 million policy-based loan to boost the development of micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan, with a particular focus on women-led businesses. The bank announced the decision on November 12. Of the total funding, $100 million will be provided on concessional terms to expand access to finance for MSMEs and strengthen Uzbekistan’s microfinance sector. The loan forms part of the second phase of the ADB’s Inclusive Finance Sector Development Program, which builds on earlier efforts to improve the legal and institutional framework for inclusive finance in the country. Key reforms have included raising the ceiling on microloans, modernizing microfinance regulations, joining the Women Entrepreneurs Finance Code, and introducing frameworks for Islamic microfinance. “ADB is proud to support Uzbekistan’s transition to a more inclusive and market-based financial system,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya. “This program will help unlock access to finance for the self-employed and microentrepreneurs, promote gender equality, and strengthen consumer protection in the financial sector.” The latest phase of the program introduces new policy measures aimed at enhancing responsible lending, regulating emerging products such as “buy now, pay later” services, and strengthening digital financial supervision. It also advances gender equality by supporting sectoral policies that implement gender-based financing quotas and improve the reporting of sex-disaggregated data. An evaluation of Uzbekistan’s National Financial Inclusion Strategy (2021-2023) revealed that 60 percent of adults now hold accounts with formal financial institutions, a significant gain attributed to rapid digitalization. The new program aims to further modernize the microfinance sector by allowing the creation of deposit-taking microfinance banks, two of which have already received preliminary licenses. This year marks the 30th anniversary of ADB-Uzbekistan cooperation. Since 1995, the bank has committed $14.6 billion in loans, grants, and technical assistance to the country. Uzbekistan has also been selected to chair the ADB Board of Governors for 2025-2026. Samarkand is set to host the ADB’s 59th Annual Meeting in May 2026.

Green Energy

Uzbekistan, Azerbaijan, and Kazakhstan Launch Joint Venture for Green Energy Corridor

Energy companies from Uzbekistan, Azerbaijan, and Kazakhstan have launched a joint venture to support the development of the Caspian Green Energy Corridor, according to the press service of National Electric Networks of Uzbekistan. The new company, “Green Corridor Alliance,” was officially established on July 1 in Baku. It brings together three national power operators: Azerbaijan’s Azerenerji, Kazakhstan’s KEGOC, and Uzbekistan’s National Electric Networks. The joint venture is expected to play a pivotal role in exporting green electricity to Europe while bolstering long-term energy security across the region. Officials have highlighted the corridor’s strategic importance in advancing sustainability goals. “This initiative is important for our energy security and green growth,” the Uzbek side stated. As previously reported by The Times of Central Asia, the Caspian Green Energy Corridor is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). In April, the three countries signed a Memorandum of Understanding with both institutions in Baku to initiate a feasibility study. The corridor aims to enhance cross-border electricity trade and promote renewable energy use throughout Central Asia and the Caspian region. The long-term objective is to integrate the power grids of Uzbekistan, Kazakhstan, and Azerbaijan, creating a streamlined route for clean energy exports to Europe. The agreement builds on a strategic partnership formalized by the presidents of the three countries during the COP-29 climate summit held in Baku in November 2024.

ADB

Uzbekistan to Chair ADB Board, Host 2026 Annual Meeting in Samarkand

Uzbekistan is poised to assume a greater leadership role within the Asian Development Bank (ADB) following key announcements at the institution’s 58th Annual Meeting of the Board of Governors, held on May 6-7 in Milan, Italy. Uzbekistan’s delegation, led by Deputy Prime Minister Jamshid Khodjaev, participated in the high-level event. According to the Ministry of Investments, Industry and Trade of Uzbekistan, the meeting concluded with the formal announcement that Uzbekistan will chair the ADB Board of Governors for the 2025-2026 term. Khodjaev was confirmed as the board’s next chair, a move widely seen as a reflection of the growing trust and confidence of international financial institutions in Uzbekistan’s reform trajectory. Additionally, it was agreed that Samarkand will host the ADB’s 59th Annual Meeting in May 2026. During the Milan meeting, the parties also signed an ambitious cooperation program outlining 23 new projects valued at $3.6 billion, to be implemented over the next two years. These initiatives will target strategic sectors such as education, drinking water supply, transport, and technical assistance. The announcement builds on an existing track record of cooperation. Recent projects include a $125 million ADB loan aimed at modernizing Uzbekistan’s water systems. This initiative encompasses the installation of smart water meters, mapping of water infrastructure, modernization of customer service centers, and training for utility staff, all intended to enhance national water security and service efficiency. Uzbekistan’s expanding partnership with the ADB is expected to accelerate its social and economic development objectives, particularly as the country continues to pursue wide-ranging reforms and infrastructure upgrades.

Climate Change

ADB Launches ‘Glaciers to Farms’ Initiative to Combat Climate Change in Central Asia

The Asian Development Bank (ADB) has unveiled a new regional initiative, Glaciers to Farms, aimed at promoting sustainable water management and food security in Central Asia, the South Caucasus, and Pakistan. The program addresses the severe effects of accelerated glacial melt caused by climate change. Backed by the Green Climate Fund (GCF), ADB will conduct risk assessments of glacial melt in Azerbaijan, Kyrgyzstan, Tajikistan, and Uzbekistan to establish a scientific and technical foundation for the program. Regional Cooperation for Glacier Preservation On November 14 in Baku, Azerbaijan, a declaration of support for glacier preservation was signed by several regional leaders: Azerbaijan’s Minister of Ecology and Natural Resources Mukhtar Babayev, Kazakhstan’s Minister of Ecology and Natural Resources Yerlan Nyssanbayev, Kyrgyzstan’s Minister of Natural Resources, Ecology and Technical Supervision Meder Mashiev, Tajikistan’s Committee on Environmental Protection Chairman Bahodur Sheralizoda, and Uzbekistan’s Minister of Ecology, Environmental Protection, and Climate Change Aziz Abdukhakimov. They were joined by ADB President Masatsugu Asakawa and GCF Chief Investment Officer Henry Gonzalez. “As melting glaciers change water flows, disrupt lives, and destroy ecosystems, we must act now,” said Asakawa. “As Asia and the Pacific’s climate bank, we are pleased to be joined by key partners to launch this program to drive international collaboration and deliver results where they matter most—on the ground, in communities at risk.” The Urgent Need for Action Temperatures in the region are expected to rise by up to 6 degrees Celsius by 2100. The resulting loss of glacial mass poses a dire threat to ecosystems, jeopardizing water supplies for agriculture and hydropower and endangering the livelihoods of over 380 million people. The Glaciers to Farms program aims to mobilize up to $3.5 billion in funding from ADB, GCF, governments, development partners, and the private sector. Beyond investments in water and agriculture, the program will prioritize vulnerable communities in fragile mountain regions that are most threatened by glacial melt. Global and Regional Efforts The United Nations General Assembly has declared 2025 the International Year of Glacier Preservation, with Tajikistan set to host the International Conference on Glaciers’ Preservation in Dushanbe next year. At a high-level event in Baku on November 12, Tajikistan's President Emomali Rahmon underscored the importance of preventing further glacier melt and preserving fragile ecosystems. Rahmon highlighted the establishment of the International Trust Fund for the Preservation of Glaciers under the United Nations’ auspices and noted the UN’s recent adoption of a resolution—initiated by Tajikistan and France—declaring 2025-2034 the Decade of Action for Cryospheric Sciences. This resolution calls for enhanced efforts to safeguard glaciers globally. Rahmon also proposed creating a Regional Coordination Center for Glaciology in Dushanbe under the World Meteorological Organization’s guidance. The center would study the impact of climate change on glaciers in collaboration with development partners.

Energy

ADB to Help Kazakhstan Move Away from Coal Power Generation

Kazakhstan’s Ministry of Energy and the Asian Development Bank (ADB) have signed a memorandum of understanding, moving closer to the possible early retirement of a coal plant in Kazakhstan under the bank’s Energy Transition Mechanism (ETM) program. Under the memorandum, the ministry and ADB will work toward a pilot transaction that will demonstrate a pathway to significantly reduce Kazakhstan’s greenhouse gas emissions by decommissioning pilot coal plants for renewables or other low-c or repurposing carbon energy technologies. A feasibility study will determine which of the country’s coal-fired power generation, combined heat and power plants and heat-only boilers could be the most viable for early retirement. ADB and Kazakhstan have also agreed to analyze the potential impact of early decommissioning or repurposing of a plant on the country’s power and heat supply, develop the country’s renewable energy generation capacity, and promote regional energy trade. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “Keeping 1.5 degrees alive means moving away from fossil fuels and toward clean energy as quickly as possible—and ADB’s ETM program aims to do that in a way that considers each country’s energy and socioeconomic development needs. As Asia and the Pacific’s climate bank, we are committed to helping Kazakhstan inclusively decarbonize its economy, and we aim to demonstrate how the clean energy transition can be accelerated in Central Asia.” Minister of Energy of Kazakhstan Almassadam Satkaliyev added, “Kazakhstan will need to develop a new approach in the power, heating, and water sectors as a single technological system, and we rely on ADB’s support and experience. I hope this program will demonstrate new systems' technological shift and reliability through ETM, which can then be replicated in other plants and regions.” Kazakhstan is a major consumer of coal, with 25 billion tons of coal reserves estimated to be the eighth largest worldwide. About 70% of the country’s electricity is produced from coal, while energy-related activity, including heat and electricity production, accounts for more than 80% of the country’s total greenhouse gas emissions. Kazakhstan’s long-term strategy for achieving carbon neutrality by 2060 involves reducing its use of fossil fuels and increasing its renewable power generation capacity.