Asian Development Bank - The Times Of Central Asia

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Glaciers

Glacier-Dependent Central Asian States to Benefit from ADB Climate Program

On October 29, the Green Climate Fund approved $250 million for Glaciers to Farms, a major adaptation initiative led by the Asian Development Bank (ADB) to build climate-resilient water and agricultural systems in glacier-dependent regions of Central Asia, the South Caucasus, and Pakistan. The funding, provided mostly as grants, will complement a broader $3.25 billion investment by ADB over the next decade. The program spans nine countries: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. These states rely heavily on glacier- and snow-fed rivers for agriculture, drinking water, and electricity. Accelerated glacial melt poses a direct threat to ecosystems and rural livelihoods, particularly in areas where one in four jobs depends on agriculture. By improving irrigation efficiency, expanding water storage, and investing in watershed management, the program seeks to reduce the growing frequency of droughts and floods linked to glacial melt. Glaciers to Farms will focus on four major glacier-fed river basins: the Naryn and Pyanj in Central Asia, the Kura in the South Caucasus, and the Swat in Pakistan. These basins cover about 27 million hectares and are home to an estimated 13 million people. The program will support glacier and climate assessments, upgrade monitoring networks, and introduce early warning systems to help communities prepare for glacial lake outburst floods and prolonged droughts. Beyond infrastructure, Glaciers to Farms will strengthen the capacity of local banks to finance agricultural enterprises, particularly those led by women, as part of its inclusive development approach. Climate-induced glacial retreat is a pressing concern for Central Asia, where glaciers supply up to 70 percent of river flows. The region contains more than 4,500 glacial lakes, many formed as a result of retreating ice. These lakes increase the risk of natural disasters such as lake outburst floods, avalanches, and landslides, threatening vulnerable mountain communities. Recognizing the urgency, the United Nations General Assembly has declared 2025 the International Year of Glacier Preservation. Tajikistan hosted the International Conference on Glaciers’ Preservation in Dushanbe in May, highlighting the region’s central role in global climate adaptation efforts.

Healthcare

ADB Approves $75M Loan to Boost Nursing Sector in Turkmenistan

The Asian Development Bank (ADB) has approved a $75 million loan and an additional $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific to expand and improve the nursing and midwifery workforce in Turkmenistan. According to an ADB statement, this marks the bank’s first health sector project in the country. “The project aims to provide high-quality health services based on people’s needs and ensure equitable access to health care through strengthening the nursing profession and education,” said ADB Country Director for Turkmenistan Artur Andrysiak. He noted that this is ADB’s third project in Turkmenistan, reflecting a growing partnership as the Bank and the country celebrate 25 years of cooperation. The Turkmen government has prioritized healthcare reform, with a focus on improving the education and qualifications of health workers. Nurses, often the first point of contact in the health system, will be empowered to deliver both essential care and preventive services under the new initiative. Plans include the design and construction of a climate-resilient nursing school in Ashgabat, featuring state-of-the-art facilities such as clinical simulation labs, dormitories, a mother-friendly room, and an edible garden to promote nutrition. The project will also provide new medical and educational equipment and update curricula, teaching methods, and faculty training in line with international standards. The total project cost is estimated at $98 million, with the Turkmen government contributing $23 million in counterpart financing. The initiative builds on ADB’s growing cooperation with Turkmenistan in recent years. In August 2024, ADB adopted a new country partnership strategy for Turkmenistan covering 2024-2028. The strategy focuses on supporting the transition to a climate-resilient and sustainable economy, enhancing competitiveness through diversification and human capital development, and advancing structural reforms and institutional capacity.

Growth Forecasts

ADB Raises Kazakhstan’s Economic Growth Forecast, Warns of Higher Inflation

The Asian Development Bank (ADB) has revised upward its economic growth forecast for Kazakhstan for both 2025 and 2026, while also raising its inflation projections. The updated outlook was published in the July edition of the Asian Development Outlook. Growth Outlook Strengthened According to the ADB’s latest report, Kazakhstan’s GDP is now expected to grow by 5.1% in 2025, up from the 4.9% forecast issued in April. The projection for 2026 has also been increased from 4.1% to 4.3%. Key growth sectors include: Transport: +21% Construction: +16.9% Manufacturing: +8.7% Mining: +6.1% Particular emphasis is placed on the early expansion of oil production at the Tengiz field, which launched ahead of schedule. This, combined with Kazakhstan’s increasing oil exports within the framework of OPEC+ quotas, has bolstered the growth outlook. As previously reported by The Times of Central Asia, in June, Kazakhstan raised production for the third consecutive month, contributing positively to GDP growth. "Growth in tax revenues has allowed for increased government investment in capital projects and the social sector," the ADB commented. "The early launch of the Tengiz expansion has strengthened prospects for the extractive industry. OPEC+'s May 31 decision to continue raising production supports this trend, as Kazakhstan is utilizing its full capacity." Inflation Pressures Intensify Despite the improved growth outlook, the ADB now expects inflation to reach 10.2% by the end of 2025, up from the 8.2% forecast in April. For 2026, inflation is projected at 8.4% (previously 6.5%). Data from Kazakhstan’s National Statistics Bureau indicates that annual inflation reached 11.3% in May and 11.8% in June. Paid services remain the primary inflation driver, though monthly price increases slowed modestly from 0.9% in May to 0.8% in June. The ADB notes rising inflationary pressure across the broader Caucasus and Central Asia subregion. The regional average is now expected to hit 7.8% in 2025 and 6.7% in 2026 both higher than the previous forecasts of 6.9% and 5.9%, respectively. Supporting Forecasts The Eurasian Development Bank (EDB) also anticipates robust economic expansion in Kazakhstan, projecting GDP growth of 5.5% in 2025, up from 4.8% in 2024, with sustained momentum through 2026-2027. However, the EDB likewise foresees persistent inflation, expecting it to reach 11.9% by year-end. Earlier, Deputy Prime Minister Serik Zhumangarin reported that the Kazakh economy grew by 6.2% in the first half of 2025, the country’s fastest growth rate since 2011.

Sewage System

Cholpon-Ata Launches First-Ever Centralized Sewage System Project

In a significant move toward sustainable tourism and environmental protection, Kyrgyz Minister of Construction Nurdan Oruntaev signed an agreement with firms from China, Turkey, and Uzbekistan to build treatment facilities, pump stations, and sewer collectors in Cholpon-Ata, a city on the northern shore of Lake Issyk-Kul. The project is being financed by the Asian Development Bank as part of the national “Environmental Management of Issyk-Kul” program. It aims to improve ecological conditions and support sustainable tourism development by establishing a unified sewage system for Cholpon-Ata and nearby settlements, including Bosteri, Kara-Oi, and Baktuu-Dolonotu. “The project aims to ensure balanced economic development with a focus on innovation and environmentally friendly technologies. Its key objective is to preserve the unique ecosystem of the lake,” the Ministry of Construction stated. Environmental Measures Ahead of Tourist Season Ahead of the 2025 tourist season, the Environmental and Technical Supervision Service has announced that resorts without sewage treatment facilities will be barred from operating during the summer months. “With the start of the season, the load on the lake's ecosystem increases dramatically, all sanatoriums and holiday homes begin operating, and the number of tourists surges. Issyk-Kul is a closed ecosystem and designated biosphere reserve that requires special protection. According to a presidential decree, facilities in the recreational zone without treatment infrastructure are prohibited from operating,” explained Kych Tentimishov, head of the regional department for environmental and technical supervision at the Ministry of Natural Resources. Current Sanitation Status According to ministry data, there are currently 1,127 accommodation facilities operating around Lake Issyk-Kul, including resorts, sanatoriums, and holiday homes. Of these, only 185 have their own sewage treatment systems, and another 208 are connected to a centralized system. The remaining facilities rely on septic tanks. Authorities are currently conducting inspections to ensure all facilities meet environmental standards, as part of a broader initiative to safeguard one of Kyrgyzstan’s most treasured natural landmarks.

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.

Infrastructure

ADB Finances 90% of Road Projects in Tajikistan’s Regions

The Asian Development Bank (ADB) has financed the construction and reconstruction of 90% of all roads in Tajikistan outside the capital, Dushanbe. This was announced by Evgeny Zhukov, ADB Director General for Central and West Asia, during the 58th Annual Meeting of the Bank’s Board of Governors in Milan. Tajikistan’s Largest Transport Infrastructure Investor According to Zhukov, Tajikistan has long been a key partner for the ADB. Since the start of cooperation, the bank has invested approximately $2.7 billion in the country, with the majority of funds directed toward public sector development. “If you travel outside Dushanbe, there is a 90% chance the roads you are on were built or modernized with ADB support. This confirms the effectiveness of our investments,” Zhukov stated. Laziza Sabirova, Head of Regional Cooperation and Integration at the ADB’s Central and West Asia Department, emphasized the bank’s commitment to quality control. An independent unit evaluates whether project outcomes align with initial objectives and ensures efficient use of funds. “These specialists assess each project’s relevance and effectiveness, checking if goals were achieved, whether there was overspending, and evaluating construction quality. Post-completion, they also analyze facility use, maintenance, and any further funding needs,” Sabirova explained. Zhukov also highlighted the ADB’s intent to strengthen cooperation with other international financial institutions, including the World Bank and the Asian Infrastructure Investment Bank. One of the largest upcoming joint initiatives will involve funding the Rogun hydroelectric power plant. The ADB plans to allocate up to $500 million for this project in the coming years. Future Development Plans Earlier announcements indicated that the ADB is planning around 20 major projects in Tajikistan between 2025 and 2029. These initiatives span agriculture, social services, urban development, and energy. Particular emphasis will continue to be placed on improving transport infrastructure to enhance domestic logistics and boost economic ties with neighboring countries. Currently, the ADB’s portfolio in Tajikistan includes 19 ongoing public investment projects valued at about $1 billion. These cover key sectors such as energy, healthcare, water supply, irrigation, environmental protection, and tourism. In support of these efforts, the ADB has also provided 12 technical assistance grants totaling $11.2 million. Supporting Economic Stability Ko Sakamoto, the ADB’s permanent representative in Tajikistan, affirmed the bank’s ongoing partnership with the government to reinforce economic stability and improve living standards. “Our collaboration with local partners is already producing tangible results, and we are confident that upcoming projects will contribute to sustainable development,” Sakamoto said. Tajikistan remains one of the largest recipients of ADB grants in Central Asia. Since the beginning of their partnership in 1998, the ADB has delivered significant financial support for vital infrastructure projects, helping lay the groundwork for long-term economic progress.