Asian Development Bank - The Times Of Central Asia

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Investment

Tajikistan’s Reliance on External Funding for State Investment Projects Is Growing

Tajikistan continues to implement a large-scale state investment programme. International financial institutions play a key role in financing these projects, however, while the government's own contribution remains limited. According to data from the State Committee on Investment and State Property Management, 82 state investment projects are currently under way in the country The total value of ongoing initiatives is estimated at approximately $4.67 billion. Of these, 55 projects are being implemented on a grant basis, five through loans, and another 22 have mixed financing. About $3 billion has already been allocated for procurement, works, and services related to the implementation of these projects. However, more than 70% of the funding is provided by just three international institutions. The World Bank remains the largest donor, contributing $1.725 billion (36.9%). It is followed by the Asian Development Bank with $914.7 million (19.5%) and the European Bank for Reconstruction and Development (EBRD) with $658.1 million (14.1%). Other investors include the Islamic Development Bank ($207.9 million), the Chinese government ($194.9 million), the Asian Infrastructure Investment Bank ($142.5 million), the German Development Bank ($129.3 million), and the European Investment Bank ($114.8 million). Against the backdrop of extensive external financing, Tajikistan’s own contribution remains small. The state is investing approximately $151.2 million, accounting for only 3.2% of the total. This means that the implementation of key infrastructure and social projects largely depends on international donors and lenders. At the same time, in 2025 Tajikistan managed to significantly increase capital inflows. Foreign investment reached approximately $7 billion, rising by nearly $2 billion (35.1%) compared with the previous year. The authorities hope to sustain this momentum by improving the investment climate, including through legislative updates. A key step was the adoption on May 14, 2025, of a new version of the law “On Investments and the Promotion of Investment Activity,” aimed at increasing the country’s attractiveness to international partners. The current development model allows Tajikistan to implement large-scale projects that would be difficult to carry out relying solely on domestic resources. However, this financing structure also increases dependence on external sources, making the economy more sensitive to the conditions set by international institutions and the global financial environment.

Asian Development Bank

Asian Development Bank to Invest $5.5 Billion in 15 Projects in Kazakhstan by 2029

Kazakhstan's government and the Asian Development Bank (ADB) have signed a memorandum of understanding to implement 15 major projects worth approximately $5.5 billion in the period 2026-2029. The initiatives, focused on infrastructure, digitalization, and sustainable development, aim to strengthen the country’s transit capacity and investment appeal. According to an official statement, the memorandum lays the groundwork for large-scale projects in regional connectivity, disaster resilience, water resource management, modernization of housing and utilities infrastructure, and housing market development. ADB will also continue financing private-sector initiatives, including projects in agriculture, transport, and logistics. Priority areas include transport and logistics infrastructure, emergency response systems, digital technology development, and green finance. The parties also highlighted potential cooperation in artificial intelligence, the construction of data centers, the expansion of fiber-optic backbone networks, and the digitalization of transport corridors and customs procedures. One of the first concrete steps under the agreement is a project between KazAutoZhol JSC and the ADB to construct a 102-kilometer bypass road around the town of Saryagash in the Turkestan region. The new road is expected to enhance road safety, accelerate freight and passenger transport, and strengthen trade links between Kazakhstan and Uzbekistan. The parties also reviewed progress on a public-private partnership project to build a 300-bed university hospital in Karaganda. The planned medical cluster will combine professional training and scientific research, with subsequent integration of innovations into practical healthcare. ADB President Masato Kanda noted Kazakhstan’s progress in structural reforms, including measures to enhance financial sector stability, and reaffirmed the bank’s interest in supporting the country’s digital transformation. Earlier, ADB initiated a project to develop a shorter road route from Almaty to Lake Issyk-Kul in Kyrgyzstan. The new route is expected to reduce travel time by nearly half, strengthening tourism and trade connectivity between the two countries.

Tourism Development

Tourism Master Plan for Almaty-Bishkek Economic Corridor Updated with Green Focus

On February 12, Bishkek hosted a presentation of the green update to the tourism master plan for the Almaty-Bishkek Economic Corridor (ABEC) between Kazakhstan and Kyrgyzstan, a document prepared with the support of the Asian Development Bank (ADB). The event brought together representatives of Kyrgyz government agencies, officials from the Issyk-Kul and Chui regions bordering Kazakhstan, as well as members of tourism associations and international development partners. The ABEC tourism master plan was initially approved in 2019. According to Kyrgyzstan’s Ministry of Economy and Commerce, the updated version emphasizes three key areas. The first is green tourism, including the development of eco-tourism routes, sustainable accommodation facilities, hiking and cycling trails, and measures to reduce pressure on mountain ecosystems, lakes, and national parks. The second priority is sustainable development. This includes improving resource efficiency, introducing renewable energy sources, promoting green logistics, and reducing the carbon footprint of tourism-related activities. The third focus area is regional integration and connectivity. Planned measures include digitalizing border-crossing procedures, developing sustainable transport solutions, strengthening cross-border coordination, and creating more convenient tourist routes along the corridor. The updated master plan aims to attract investment and mobilize financial resources from the ADB, national governments, the private sector, and development partners to implement priority projects along the ABEC corridor. A central infrastructure component of the ABEC initiative is the proposed construction of an alternative highway linking Almaty, Kazakhstan’s largest city, with Lake Issyk-Kul, Kyrgyzstan’s leading tourist destination. Lake Issyk-Kul remains a major attraction for visitors from across the region and is particularly popular among Almaty residents seeking weekend or summer trips. Although the two locations are separated by only about 80 kilometers in a straight line, mountain ranges make direct travel difficult. The existing route passes through Bishkek, extending the journey to more than 460 kilometers and turning what could be a short trip into an approximately eight-hour drive to Cholpon-Ata, the largest resort town on the lake’s northern shore. The Times of Central Asia previously reported on long-standing plans to establish a more direct road between Almaty and Issyk-Kul. In 2007, Kazakhstan and Kyrgyzstan signed a memorandum of understanding for a route bypassing Bishkek, running through Uzynagash and Kemin and connecting directly to Cholpon-Ata. The project, however, stalled at an early stage. If completed, it would reduce the travel distance to approximately 260 kilometers and significantly shorten travel time. The project is currently at the stage of preparing a feasibility study.

Solar Energy

Asian Development Bank Awards $1 Million Grant to Support Floating Solar Energy in Tajikistan

The Asian Development Bank (ADB) has approved a $1 million grant to support the development of floating solar photovoltaic (PV) systems in Tajikistan, an emerging technology for the mountainous Central Asian country. According to Ko Sakamoto, ADB’s Country Director in Tajikistan, the initiative leverages the nation’s abundant solar and water resources. “This innovative initiative aims to make the most of what Tajikistan has to offer: sun and water,” he said. The project is designed to establish the foundation for a year-round, reliable, and environmentally sustainable energy supply. With 93% of its territory covered by mountains, Tajikistan faces limited availability of flat land, most of which is allocated for agriculture or housing. These conditions make the construction of ground-mounted solar power facilities prohibitively expensive. However, the country’s extensive network of reservoirs, with high solar exposure and pre-existing infrastructure, offers a viable alternative. Floating solar systems are being explored as a cost-effective and land-efficient solution to expand renewable energy output without displacing essential land uses. Under the ADB grant, technical experts will assess up to five reservoirs to evaluate their suitability for floating PV installation. The results will inform a detailed feasibility study for the construction of a large-scale floating solar plant at one selected site. The grant will also fund the modernization of the financial management system of Barki Tojik, the state-owned energy company. This component aims to improve the company's operational efficiency and financial transparency. Tajikistan has recently accelerated its shift toward clean energy. As previously reported by The Times of Central Asia, the country has launched its most ambitious solar energy initiative to date: the construction of two photovoltaic plants with a combined capacity of 500 megawatts. The scale of this project marks a strategic pivot toward energy diversification and sustainability.

Asian Development Bank

ADB Supports Turkmenistan’s Power Grid Modernization with $500 Million Project

The Asian Development Bank (ADB) has been working with Turkmenistan since 2018 to modernize the country’s electricity infrastructure, marking a milestone in cooperation, Business Turkmenistan reported on January 12. At the core of this partnership is the $500 million National Power Grid Development Strategy, the first initiative by an international financial institution in Turkmenistan’s energy sector. According to the ADB, the project aims to enhance the reliability of the national power network and bolster the country’s electricity export capacity. The project has financed the construction of approximately 1,400 kilometers of power transmission lines at 110, 220, and 500 kilovolts. In addition, 11 substations have been built across the regions of Akhal, Balkan, Dashoguz, and Lebap, as well as in Ashgabat. Technical assistance valued at $1.5 million was also provided through a grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The ADB reported that the project is already yielding measurable results. Electricity exports rose from 3.4 terawatt-hours in 2017 to 9.3 terawatt-hours in 2023, driven by increased transmission capacity and system stability. The State Electric Power Corporation Turkmenenergo, the ADB’s local partner, contributed $175 million to the project’s implementation. The ADB described its role as supporting sustainable economic growth and development across Asia and the Pacific through the provision of loans, grants, and technical assistance. Cooperation between the ADB and Turkmenistan has also expanded into other sectors. In September 2025, the ADB approved a $75 million loan and a $2 million grant from the Japan Fund to strengthen Turkmenistan’s nursing and midwifery workforce. The initiative marked the ADB’s first health sector project in the country.

Banking

ADB Provides Tajik Bank with First Direct Loan of $10 Million

Bank Eskhata OJSC (Open Joint-Stock Company) and the Asian Development Bank (ADB) have signed a direct lending agreement, marking a new stage in financing for small and medium-sized enterprises (SMEs) in Tajikistan. This is the first time the ADB has issued a direct loan to a Tajik bank, bypassing intermediary financial institutions. The ADB stated that the format reflects a high level of trust in the partner bank and confidence in its stability within the national financial market. Tajikistan has been a member of the ADB since 1998. Under the terms of the agreement, the ADB is providing a loan in local currency equivalent to $10 million. The funds are intended to support entrepreneurs implementing environmentally friendly and energy-efficient technologies, as well as projects that reduce environmental impact and contribute to building a sustainable economy. Akmaljon Saifidinov, CEO of Bank Eskhata, described the agreement as strategically important. “We are honored to be the first financial institution in Tajikistan to receive direct lending from the ADB. This landmark event opens new horizons for supporting MSMEs and advancing green finance,” he said, referring to micro, small, and medium-sized enterprises. He added that the partnership with the ADB further strengthens the bank’s role as a leader in innovative financial solutions. The ADB expects the direct lending mechanism to significantly improve access to financing for businesses. “Direct lending will significantly expand enterprises’ access to financing and serve as a key stimulus for the development of green initiatives in Tajikistan,” said Ko Sakamoto, head of the ADB office in Dushanbe. The loan is expected to support projects in energy efficiency, green technologies, and sustainable business models, areas that have traditionally lacked access to long-term financing. In a separate initiative, the ADB recently approved a $3 million grant to enhance Tajikistan’s capacity for glacier monitoring and natural disaster forecasting. The project includes the creation of a unified digital system for analyzing risks related to snow and ice melt and aims to improve public safety in mountainous regions.