Asian Development Bank - The Times Of Central Asia

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ADB To Provide Uzbekistan With $300 Million To Support Microfinance

The Asian Development Bank (ADB) will provide the government of Uzbekistan with $300 million to support unbanked or underbanked micro-enterprises. The funds will aim to improve access to finance for micro and small businesses, primarily focusing on supporting women entrepreneurs, which ADB Director General for Central and West Asia, Eugene Zhukov, says will be an essential step towards the country's economic development and job creation. Kanokpan Lao-Araya, Director of ADB's Resident Mission in Uzbekistan, said the loan will help improve the quality of life of entrepreneurs and provide them with new financial opportunities. State-owned commercial banks primarily control Uzbekistan's financial sector, and microfinance organizations occupy only 0.5% of the system. According to Global Findex data for 2021, only 44% of Uzbekistan's adult population has accounts with formal financial institutions, well below the Central Asian average of 58%. The lack of commercial microfinance has led to a severe credit gap, especially among small businesses. Support from the ADB aims to close this gap and develop an inclusive financial system to contribute to the country's sustainable economic growth. The Asian Development Bank was founded in 1966 and has 68 member countries. Uzbekistan joined the ADB in 1995, since which time the bank has provided the country with loans, grants, and technical assistance worth $12.5 billion.

International Finance Corporation High- speed highway International investment Asian Development Bank ADB Banking

ADB to Finance Upgrade of Barskoon–Karakol Section of Issyk-Kul Ring Road in Kyrgyzstan

The Asian Development Bank (ADB) announced on September 19 that it had approved $109.5 million in financing to renovate the highway around Lake Issyk-Kul. The lake is one of the most popular tourist destinations in Kyrgyzstan, and a strategic location that connects to neighboring Central Asian countries. ADB’s Issyk-Kul Ring Road Improvement Project will construct 75.2 kilometers of the road traversing the Barskoon to Karakol section of the Issyk-Kul Ring Road, which connects the Central Asia Regional Economic Cooperation (CAREC) Corridor 1. The project will widen the two-lane roadway to four lanes to meet increasing traffic demand, while incorporating climate-adaptation measures into the road design and construction materials. Rest areas, bus stops, streetlights, and safer access for pedestrians will also be constructed. The ADB funding comprises an $87 million concessional loan and a $22.5 million grant from the Asian Development Fund. ADB Principal Transport Specialist Oyunchimeg Erdene commented: “The Barskoon–Karakol road section [on the southern shore of Lake Issyk-Kul] is the remaining portion of the Issyk-Kul Ring Road for improvement. Completing this will mean eliminating congestion and boosting tourism that will support the growth of businesses in the area.” Kyrgyzstan’s Deputy Minister of Transport, Beknazar Bazaraliev, earlier said that the rehabilitation of the Issyk-Kul Ring Road is to be completed in 2028. The rehabilitation of the 440 km long Issyk-Kul Ring Road was divided into several parts and is financed by the government and international financial organizations.

ABD Banking Asian Development Bank Economy Partnership

ADB New Partnership Strategy for Uzbekistan Focuses on Transition to Green Economy

On August 27, the Asian Development Bank (ADB) announced the launch of a five-year country partnership strategy for Uzbekistan from 2024 to 2028. The strategy will support the country’s reforms to transform into a green and inclusive economy. Aligned with the government’s priorities in its long-term development plan, known as “Uzbekistan-2030,” the ADB strategy will assist the Uzbek government in facilitating the country’s transition to a green economy, supporting private sector development and competitiveness, and promoting investments in human capital. ADB's Director General for Central and West Asia, Eugene Zhukov, commented: “ADB’s new partnership strategy for Uzbekistan will support the country in achieving its strategic goals in transitioning to a green economy by 2030. As a long-term trusted partner of Uzbekistan, ADB remains committed to helping the country sustain its robust economic expansion and reduce poverty even amid external global and regional shocks.” The new strategy provides ADB interventions in various sectors, including energy, public sector management and governance, finance, transport, agriculture and natural resource management, and urban development. The bank will also support development in education and social protection. ADB will strengthen macroeconomic and fiscal reforms, as well as the transformation and preparation of state-owned enterprises for privatization. The bank will support private sector engagement in economic development, including improvements to the domestic financial markets and infrastructure investments. ADB support will focus on improving the quality and inclusivity of education and skills development in Uzbekistan, enhancing access to health and social services, and encouraging greater private sector participation. ADB will also continue its partnerships with Uzbek civil society organizations to combat climate change, invest in people, advocate for gender equality, and support vulnerable groups. Since 1995, ADB has provided Uzbekistan $12.5 billion worth of loans, grants, and technical assistance.

Finance Asian Development Bank Kyrgyzstan Investments Banking Economy Central Asia

ADB Allocates $56 Million for Sewage Treatment Plant to Protect Issyk-Kul

The Asian Development Bank (ADB) has agreed to allocate money for the construction of a sewage treatment plant in Cholpon-Ata, Kyrgyzstan's main resort city on the northern shore of the high-mountain Lake Issyk-Kul, which is the crown jewel of the Kyrgyz tourism industry. . According to the State Agency of Architecture and Construction, the ADB will allocate $31 million in the form of a grant and $25 million as a soft loan for the construction of a sewage treatment plant with a capacity of 14,200 cubic meters per day. The funds will also be used to build 18 sewage pumping stations, 45km of main sewers, and 109km of intra-square sewage networks in the city of Cholpon-Ata. "To date, the design and cost- estimate documentation for the sewage treatment plant, two main pumping stations and sewage collector in the city of Cholpon-Ata, and tender documents for them, [have been] sent for consideration by the Asian Development Bank," reported the press service of the State Construction Committee. The agency emphasizes that all local guest houses, sanatoriums and resorts will be able to connect to the central sewage system. Environmentalists have repeatedly warned of unfavorable ecological degradation of the waters of Lake Issyk-Kul, because of hundreds of hotels located in the coastal zone. Today, most sewage treatment facilities in the coastal towns of Balykchy, Karakol and Cholpon-Ata are out of operation. Those sewage systems were put into operation in the 1960s or 1970s, and received little maintenance or upkeep.