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AIIB

AIIB and Uzbekistan Agree on $5 Billion Infrastructure Project Pipeline

The Asian Infrastructure Investment Bank (AIIB) and Uzbekistan have agreed on a pipeline of potential infrastructure projects worth up to $5 billion for 2026-2029. The two sides also signed a $1.5 million grant agreement to help prepare a project to modernize the country’s electricity transmission network. The updated Multi-Year Rolling Pipeline (MYRP) was signed on the sidelines of the AIIB’s 11th Annual Meeting in Doha. The document identifies areas for potential financing through 2029. The $5 billion figure represents a pipeline of prospective investments, rather than loans already approved by the bank. Uzbekistan is a founding member of the AIIB and is the bank’s largest partner in Central Asia, accounting for 51% of its operations in the region, according to Uzbekistan’s Ministry of Investment, Industry and Trade. Tashkent is seeking to expand cooperation on cross-border transport, energy, and water projects, while bringing more private capital into infrastructure development. The AIIB also agreed to provide a $1.5 million grant to help prepare the electricity transmission project. The funding will support technical studies, assessments of investment needs and climate risks, and preparations for integrating new solar and wind power plants into the grid. The work will focus on the southern energy corridor between the Surkhandarya and Samarkand regions and on the Fergana Valley. The studies are intended to identify bottlenecks in the transmission network and options for increasing its capacity. Grid modernization is becoming one of the key challenges in Uzbekistan’s energy transition. The government says renewable energy accounted for around 30% of electricity generation in 2025 and aims to raise the share to 54% by 2030. Connecting additional generating capacity will require both an expansion of the high-voltage transmission network and improvements in its reliability. As previously reported by The Times of Central Asia, Uzbekistan plans to commission more than 17 GW of additional renewable energy capacity and build around 6,000 kilometers of high-voltage transmission lines by 2030. The expansion of green generation is becoming increasingly important as domestic gas production declines: Uzbekistan, once a net gas exporter, became a net importer in 2023.

Wind power

AIIB Backs New Wind Power Project in Uzbekistan with $107 Million Loan

The Asian Infrastructure Investment Bank (AIIB) has signed a $107 million loan agreement with Saudi-based company ACWA Power to support the construction of the Bash 2 wind power plant in Uzbekistan. The project will be located in the Gijduvan district of the Bukhara region and is expected to have a capacity of 300 megawatts. Once completed, the facility will generate around 943 gigawatt-hours of electricity annually, enough to supply more than 336,000 households. It is also projected to reduce carbon dioxide emissions by approximately 475,000 tons per year. The Bash 2 project builds on the earlier Bash 1 wind development and forms part of a broader renewable energy cluster in the region. It aligns with Uzbekistan’s strategy to expand clean energy production and diversify its energy mix, with a national target of increasing the share of renewables to 40% by 2030. “AIIB’s investment in the Bash 2 wind power plant reflects our commitment to supporting Uzbekistan’s transition toward a more sustainable and diversified energy system,” said Konstantin Limitovskiy, Chief Investment Officer at AIIB. He noted that cooperation with private developers such as ACWA Power helps mobilize capital and strengthen energy security while delivering long-term environmental benefits. ACWA Power also emphasized the significance of the project within its growing partnership with Uzbekistan. “Bash 2 represents a meaningful step forward in ACWA’s expanding partnership with Uzbekistan and the delivery of its energy transition ambitions,” said Abdulhameed AlMuhaidib, the company’s Chief Financial Officer. He added that the project demonstrates the effectiveness of public-private partnerships in delivering large-scale clean energy solutions. The investment is supported by a long-term power purchase agreement with the National Electric Grid of Uzbekistan and is co-financed by the Asian Development Bank and Standard Chartered Bank. This financing structure highlights continued investor confidence in Uzbekistan’s renewable energy sector. Since 2019, AIIB and ACWA Power have jointly invested approximately $440 million in Uzbekistan’s energy sector, covering both renewable and conventional power generation projects. The latest agreement comes amid broader efforts by Uzbekistan to strengthen energy cooperation with international partners. As previously reported by The Times of Central Asia, the government has expanded collaboration with Saudi companies, including ACWA Power, through a series of joint projects. During a high-level meeting with Saudi investors, four wind power plants with a combined capacity of 752 megawatts were connected to the national grid, while construction began on additional projects totaling 2.3 gigawatts. At the same time, infrastructure development has continued, including work on a 1,790-kilometer high-voltage transmission line designed to improve electricity distribution across several regions of the country.

Middle Corridor

The World Bank Backs Kazakhstan’s Rail Shortcut

On February 19, 2026, the World Bank Board approved an $846 million IBRD guarantee to help the state-owned railway company Kazakhstan Temir Zholy (KTZ) mobilize $1.41 billion in long-term commercial financing. The financing is linked to a KTZ reform program under the umbrella “Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development)” initiative. The purpose is to expand rail connectivity and upgrade logistics on Kazakhstan’s segment of the Trans-Caspian International Transport Route (TITR, Middle Corridor). The Asian Infrastructure Investment Bank (AIIB) will add a $564 million co-guarantee that shifts the financing away from a classic sovereign-loan model and toward private credit backed by multilateral risk coverage. The Multilateral Investment Guarantee Agency (MIGA) presents this operation as part of a wider World Bank Group approach that pairs corridor capital expenditure with steps to strengthen the operator’s financial sustainability and commercial viability. The operation is structured as a two-part package. First, it finances a new 322.3-kilometer railway on a new segment between Mointy and Kyzylzhar in central Kazakhstan. This segment is meant to remove a major network detour, shorten the TITR route within Kazakhstan by 149 kilometers, ease congestion on heavily used sections, and support double-stack container operations. The line is planned with modern signaling and telecommunications, plus design provisions for later expansion and electrification. Second, it ties the construction to a reform program at KTZ, including tariff reform, exploration of alternative financing mechanisms, stronger financial and environmental management, and preparatory work for a potential initial public offering. The World Bank is structuring delivery through a Multi-Phase Programmatic Approach with the stated aim of tripling freight volumes and halving end-to-end transit times on Kazakhstan’s Middle Corridor segment by 2030. Why This Segment Matters for the Middle Corridor Inside Kazakhstan, the Mointy–Kyzylzhar line is a central connector in the Trans-Kazakhstan east–west trunk carrying traffic from the China-facing gateways at Dostyk and Khorgos toward the Caspian outlets at Aktau and Kuryk. Mointy itself is a pivotal junction where train paths, locomotives, and crews are redistributed across multiple directions; as a result, any congestion there propagates quickly into corridor-wide delays. In early 2025, President Kassym-Jomart Tokayev directed acceleration of the Trans-Kazakhstan corridor. KTZ says the expected benefits include decreased pressure on heavily used central segments, fewer locomotive changeovers at key junction points, and, on some routings, the potential to cut more than a day from transit time between the Chinese border and Aktau. The World Bank’s 2023 Middle Corridor study stressed that the corridor’s most durable growth driver is regional trade among the core corridor economies: China–Europe movements remain important, but they compete with multiple alternatives, above all maritime shipping. An infrastructure upgrade adds economic value only if it reduces variability at the handoff points where delays accumulate, including rail-to-port interfaces, Caspian coordination, and national borders. Relieving the domestic bottleneck in Kazakhstan is economically meaningful only insofar as it stabilizes arrival times to Caspian terminals, creates more room for dispatching, and helps logistics providers offer shippers more predictable end-to-end service along the TITR. The emphasis is...

Middle Corridor

Kazakhstan to Enhance Middle Corridor Rail Connectivity with World Bank Support

The Board of Executive Directors of the World Bank has approved an $846 million guarantee from the International Bank for Reconstruction and Development (IBRD) to mobilize $1.41 billion in long-term private financing for a major railway project along Kazakhstan’s section of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. The project is further backed by a $564 million co-guarantee from the Asian Infrastructure Investment Bank (AIIB). The initiative is designed to improve the efficiency and resilience of Kazakhstan’s rail network while strengthening the financial sustainability and commercial viability of Kazakhstan Temir Zholy (KTZ), the national railway operator. A central component of the project is the construction of a new 322.3-kilometer greenfield railway line between Mointy and Kyzylzhar. The link is expected to eliminate a significant detour, shorten the route by 149 kilometers, reduce congestion on heavily used sections, and enable double-stack container operations. The new line will be equipped with modern signaling and telecommunications systems and designed to allow for future expansion and electrification. According to project documentation, the upgrade is expected to contribute to tripling freight volumes and halving end-to-end transit times along the Middle Corridor by 2030. By shifting cargo from road to rail, it is also projected to reduce transport-related emissions, supporting Kazakhstan’s climate commitments and broader sustainable development objectives. Official data indicate that freight volumes transported through Kazakhstan along the TITR increased by 36% in 2025. In addition to infrastructure investment, the project includes technical assistance and institutional strengthening for KTZ. This includes support for tariff reform, exploration of alternative financing mechanisms, improvements in financial and environmental management, and preparation for a potential future initial public offering (IPO). “Beyond enabling critical infrastructure investments, this project supports important reforms that will strengthen Kazakhstan Temir Zholy’s financial sustainability and long-term competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan. By combining phased infrastructure investments, institutional reforms, and private capital mobilization, the initiative aims to develop a modern rail system capable of delivering long-term economic and environmental benefits for Kazakhstan and the wider Eurasian region.

Railways

AIIB Supports Almaty Railway Bypass with $150 Million Loan

The Asian Infrastructure Investment Bank (AIIB) has signed a landmark $150 million loan agreement to finance the Almaty Railway Bypass Project in Kazakhstan. The funding will be provided to Kazakhstan Temir Zholy (KTZ), the national railway operator, under a non-sovereign loan structure. The AIIB loan forms part of a broader international financing package of up to $300 million, denominated in Swiss francs. The package is jointly arranged by the International Finance Corporation (IFC), AIIB, and the Multilateral Investment Guarantee Agency (MIGA), with IFC and AIIB providing investment and MIGA offering risk guarantees. According to AIIB, the structure reflects robust international confidence in Kazakhstan’s transport modernization efforts and in KTZ’s strategic role in national infrastructure. The project will support the construction of a new single-track, electrified freight railway bypass along the northern perimeter of Almaty, Kazakhstan’s largest city. The bypass will extend approximately 75 kilometers, connecting Zhetygen station in the east with Kazybek Bek station in the west. Its primary objective is to redirect freight traffic away from Almaty’s city center by establishing a dedicated cargo corridor. The scope also includes new stations, bridges, overpasses, and upgrades at both terminal points. According to AIIB, the bypass is expected to alleviate congestion on Almaty’s current rail network, enhance passenger service efficiency, and reduce freight delays. By separating passenger and cargo rail lines, the project aims to lower emissions caused by congestion and improve operational safety. AIIB emphasized the project’s role in strengthening Kazakhstan’s position as a regional transit hub by boosting rail efficiency along key Eurasian corridors, including the Middle Corridor. “Strengthening Kazakhstan’s transport backbone is essential for supporting the country’s long-term growth and its role as a key connectivity hub across Eurasia,” said Konstantin Limitovskiy, AIIB’s Chief Investment Officer. He noted that the Almaty bypass addresses a major bottleneck in the national rail system, enabling “faster, cleaner, and more reliable freight movement.” IFC also underscored the regional significance of the initiative. “By addressing key bottlenecks and improving network reliability, the project is expected to generate positive spillovers for trade facilitation, private sector competitiveness, and the overall logistics ecosystem,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources. Kazakhstan, a founding member of AIIB, is one of the bank’s most active clients in Central Asia. AIIB stated that the project aligns with its strategic focus on connectivity and regional cooperation. Implementation will be led by Kazakhstan Temir Zholy, with construction set to begin following the conclusion of final procurement procedures. In July of last year, Kazakhstan Temir Zholy secured a separate syndicated loan of up to 480 million Swiss francs (approximately $540 million) for a three-year term. Arranged by Abu Dhabi Commercial Bank and Deutsche Bank, the loan supports infrastructure development along the Trans-Kazakhstan Railway Corridor.

AIIB

AIIB Projects Win Awards as Uzbekistan Rises in Regional Infrastructure Finance

Three projects backed by the Asian Infrastructure Investment Bank (AIIB) were recognized at the Global Banking & Markets (GBM) Awards, Türkiye & Central Asia 2025, held in Istanbul. The accolades highlight AIIB’s expanding role in promoting commercially structured, investment-ready infrastructure projects in the region, a trend that is increasingly relevant for rapidly developing markets such as Uzbekistan. At the awards ceremony, the Antalya Airport Expansion (Aspendos) received the Transport Finance Deal of the Year award. The Nakkaş-Başakşehir Motorway was named Infrastructure Finance Deal of the Year, and Ronesans Holding’s debut $350 million Eurobond received the Blended Finance Deal of the Year award. Industry experts note that these projects reflect a broader shift toward blended finance and co-financing mechanisms in Turkey and Central Asia. These approaches are becoming increasingly important for Uzbekistan as it scales up infrastructure development and aligns new projects with international best practices. Uzbekistan is now one of AIIB’s fastest-growing markets, with investments spanning energy, transport, digital infrastructure, and regional connectivity. The country’s recent rise into AIIB’s top ten borrowers reflects both its need for stable long-term financing and its intent to structure major infrastructure initiatives according to global standards. Igor Popkov, Senior Investment Officer and Project Team Lead for the Antalya Airport project, said the awarded deals show how complex infrastructure financing is evolving. He noted that Türkiye remains AIIB’s second-largest borrower, with $6 billion in approved projects, while Uzbekistan is “rapidly climbing” the ranks. Development finance institutions, he added, continue to play a crucial role in making large-scale projects bankable and aligned with international norms. Observers also pointed to the growing use of instruments such as A/B loan structures, guarantees, and long-term project financing in Uzbekistan, where multiple AIIB-supported projects are under preparation or implementation. The GBM recognition follows the signing of a $500 million financing agreement between AIIB and the Government of Uzbekistan on November 28 to support the country’s Green and Resilient Market Economy Program. The initiative aims to help Uzbekistan transition to a more sustainable and climate-resilient economic model.