EBRD - The Times Of Central Asia

Viewing results 1 - 6 of 141

Green economy

Kyrgyzstan to Improve Farmland Monitoring with EBRD and FAO Support

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have launched a joint initiative titled Greening Kyrgyzstan’s Economy: Know More, Act Better, Enhance Results. The project aims to foster climate-smart agriculture through the use of geographic information system (GIS) technology, improving farmland management and bolstering food security in Kyrgyzstan. According to the EBRD, the initiative is supported by its Food and Agribusiness team and involves close cooperation with three key local aggregators: Kaindy-Kant (sugar beet processing), Kirbi (potato processing), and Dan Agro (pulses and legume processing). Together, these partners will help extend the project’s reach to more than 5,000 farmers. Harnessing GIS Technology The GIS platform will be managed by Kyrgyzstan’s State Agency for Land Resources, Cadastre, Geodesy and Cartography. It will be accessible to stakeholders across the agricultural sector, including the Ministry of Water Resources, Agriculture and Processing Industry, as well as farmers and aggregators. The system will enable users to identify sown crops, assess land-use efficiency, estimate productivity, and monitor crop rotation and sustainable water use. With additional funding from the Ministry of Digital Development, the State Agency will also develop a mobile application to improve access and facilitate the adoption of GIS tools at the grassroots level. Meanwhile, the EBRD and FAO will roll out a free e-extension application to provide advisory services to farmers. This collaboration promises substantial benefits for Kyrgyzstan, where agriculture employs nearly half the workforce and contributes approximately 12% of the national GDP. Broader Impact and Expectations The initiative is also expected to deliver environmental gains by enhancing efficiency in a sector responsible for roughly 37% of Kyrgyzstan’s greenhouse gas emissions. These efforts align with the country’s Paris Agreement target of cutting emissions by 16% by 2030. In addition to supporting environmental goals, the project is set to improve food security for Kyrgyzstan’s growing population, projected to reach 9.6 million by 2050. The data-driven approach to land management is designed to help rural communities adapt to climate change, strengthen agribusiness supply chains, and contribute to sustainable economic development. Participating aggregators stand to benefit from access to more accurate planting data, which will improve harvest forecasting and help optimize financing strategies.

Green economy

Tajikistan’s Green Deal: EBRD Launches Sustainability Pilot Projects

On April 1, the European Bank for Reconstruction and Development (EBRD) inaugurated two demonstration sites under the Tajikistan Green Economy Financing Facility (GEFF II) in the town of Bokhtar. The initiative promotes innovation in sustainable energy and agriculture, backed by funding from South Korea, Austria, and the Green Climate Fund. The total program budget is $50 million. Bringing Energy Efficiency to Life The first site, located at the MoDO Khumo branch in Bokhtar, features a hybrid solar photovoltaic system combining solar panels with energy storage. This technology ensures a stable power supply even during periods of low solar activity. Real-time data on electricity generation and consumption is displayed in the customer area, helping to raise public awareness of sustainable energy practices. The second site, at the Tanzila dekhkan farm in Vakhsh district, showcases how green technologies can boost crop yields and reduce environmental impact. The installation includes: Drip irrigation systems that save up to 70% of water; Solar panels for off-grid electricity; Biogas units using organic waste; Vertical farming in compact spaces. These solutions aim to enhance agricultural productivity and improve farmers' incomes. Strategic Development with the EBRD GEFF II also prioritizes gender equality, offering targeted support to women entrepreneurs seeking green financing for sustainable business ventures. The demonstration sites form part of the EBRD’s broader strategy to promote sustainable development across Tajikistan. Additional pilot locations are planned to showcase further environmentally friendly technologies. EBRD’s Broader Footprint in Tajikistan Established in 1991, the EBRD provides financial and technical support to nearly 40 countries for economic and structural reforms. In Tajikistan, the bank remains a key investor, having committed over €1 billion across 183 projects. Notable EBRD-supported initiatives include: Dushanbe Infrastructure Modernization - €28.45 million to improve roads and a bridge over the Varzob River; Dangara-Guliston Road Upgrade - €38 million for roadworks and infrastructure for electric vehicles; CLIMADAPT - $10 million to help farmers and businesses adopt climate-resilient technologies; Kayrakkum Hydroelectric Plant Modernization - $88 million to boost energy efficiency and support climate adaptation. These investments are helping Tajikistan build climate resilience, modernize infrastructure, and create sustainable pathways for regional development.

Investment

EBRD Finances Coffee-Processing Plant at Kazakh-Chinese Border

The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to $10 million to Empire Manufacturing Kazakhstan (EMK) to support the construction of a coffee-processing facility in the Khorgos Free Economic Zone, located on Kazakhstan’s border with China. EMK is a subsidiary of Food Empire Holdings, a global food and beverage group listed on the Singapore Exchange. The new plant will enhance the company’s regional production capacity and is expected to set a new standard for food-processing technology and hygiene in Kazakhstan and Central Asia. Once operational, the facility will export up to 50 percent of its coffee products to markets across Central Asia and the South Caucasus, where demand for Food Empire’s instant beverages is on the rise. The investment aligns with the EBRD’s broader strategy to support private sector growth in Kazakhstan. To date, the Bank has invested more than €11 billion in 335 projects across the country, with a strong emphasis on fostering entrepreneurship and innovation.

Infrastructure Development

EU and EBRD to Fund Irrigation Improvements in Kyrgyzstan

On March 17, European Commissioner for International Partnerships Jozef Síkela arrived in Kyrgyzstan, where he met with President Sadyr Japarov to discuss bilateral cooperation and sustainable development initiatives. During the meeting, Japarov emphasized the importance of strengthening trade, economic, and investment ties between Kyrgyzstan and the European Union (EU). “We highly appreciate the ongoing support of the European Union in carrying out democratic reforms and developing a stable and sustainable state in Kyrgyzstan,” Japarov stated. He also proposed expanding cooperation in areas such as green initiatives, early warning systems for natural disasters, low-carbon development, and the transition to renewable energy sources. Japarov highlighted Kyrgyzstan’s role in global environmental advocacy, recalling that the United Nations (UN) had declared 2023-2027 as the "Five Years of Action for the Development of Mountain Regions" at Kyrgyzstan’s initiative. He invited the EU to become a donor for the country’s roadmap for sustainable development in mountain regions, citing shared environmental challenges such as glacier preservation, ecosystem protection, and sustainable growth. EU and EBRD Commit to Infrastructure Development Commissioner Síkela reaffirmed the EU’s commitment to regional integration and connectivity between Central Asia and Europe, highlighting Kyrgyzstan’s renewable energy potential. “Kyrgyzstan has huge potential in the field of renewable energy, and the EU is ready to support projects that bring sustainable and long-term benefits to the region and realize this potential,” Síkela stated. Following their discussions, Japarov and Síkela oversaw the signing of a financial agreement between the Kyrgyz government, the EU, and the European Bank for Reconstruction and Development (EBRD). The agreement launches a major irrigation improvement program in Kyrgyzstan, aimed at enhancing water management and sustainability. Financial Commitments and Infrastructure Projects A financial package of up to €37.96 million will support critical irrigation infrastructure upgrades in Kyrgyzstan’s Jalalabad and Naryn regions. This funding includes: €26.93 million in an EBRD sovereign loan €1.03 million in an EBRD grant €10 million in an EU grant The investment will finance improvements to water intakes, pumping stations, main canals, and distribution networks, with the goal of reducing water losses, cutting electricity consumption, and lowering CO₂ emissions. Additionally, the EBRD and EU will fund the reconstruction and automation of a section of the Western Great Chui Canal in northern Kyrgyzstan. A separate financial package of €23.8 million has been allocated under the EBRD’s Regional Integrated Water Resources Management Framework for Kyrgyzstan and Tajikistan, approved by the EBRD’s Board of Directors in 2024. This package consists of: €15.23 million in an EBRD sovereign loan €5 million in an EBRD grant €3.6 million in an EU grant These investments are expected to modernize Kyrgyzstan’s irrigation systems, enhance water resource management, and improve agricultural sustainability. The EU and EBRD’s latest financial commitments to Kyrgyzstan’s irrigation and water management infrastructure highlight growing cooperation between Europe and Central Asia. These projects aim to increase agricultural productivity, enhance climate resilience, and promote sustainable development in the region.

Investments

EBRD and ADB Finance Upgrade of Key Road in Tajikistan

The European Bank for Reconstruction and Development (EBRD) has announced a loan to finance the upgrade and expansion of the Dangara-Guliston road in Tajikistan. Built in the 1930s as part of a major international highway, this road serves as a crucial link between the north and south of the Khatlon region, an area that produces more than 53% of Tajikistan’s agricultural output and is home to 35% of the country’s population. Financing and Project Scope The EBRD’s sovereign loan of up to €38 million will help finance improvements to a 49-kilometer section of the road, including the construction of charging infrastructure for electric vehicles. The Asian Development Bank (ADB) will provide $86.7 million (€83.5 million) in grant financing to support the project. The upgrades will convert the existing single-lane road into a dual-lane highway, significantly improving transportation efficiency and reducing cargo delivery times across the Khatlon region and beyond. Additionally, the upgraded road will feature: Improved lighting Cycle paths Pavements for pedestrians Electric Mobility and Sustainability This will be one of the first roads in Tajikistan equipped with charging stations for electric vehicles (EVs), encouraging wider EV adoption in the country. The EBRD will also provide a technical cooperation grant to develop a national electric mobility action plan, aimed at stimulating public and private investment in sustainable transportation infrastructure across Tajikistan. EBRD's Broader Investment in Tajikistan To date, the EBRD has invested over €1 billion in Tajikistan through 183 projects, supporting key sectors such as infrastructure, energy, and private enterprise development.

Infrastructure Projects

Securing Central Asia’s Future: EBRD’s Regional Head on the Fight for Water Sustainability

Every fourth inhabitant of Central Asia, home to more than 83 million people, does not have regular access to safe drinking water. The region spans more than four million square kilometers, and over 15% of its territory is covered by the Karakum and Kyzylkum deserts, as well as waterless places such as the Ustyurt Plateau (similar in size to the United Kingdom), which stretches across Kazakhstan, Uzbekistan, and Turkmenistan. The extreme heat common to Central Asia in summer makes water a precious resource. To make matters worse, irresponsible human activity, particularly wasteful water use for irrigation, has led to one of the most devastating ecological catastrophes globally. The Aral Sea, where up to 60,000 tonnes of fish were caught annually only 30 years ago, has practically ceased to exist. Most of Central Asia’s freshwater intake relies on glacial melts affected by global warming. The World Resources Institute forecast in its 2023 Aqueduct Water Risk Atlas that an additional one billion people globally will live with extremely high water stress by 2050. This will disrupt economies and agricultural production. Most Central Asian countries will be severely affected. While the European Bank for Reconstruction and Development (EBRD) cannot reverse the global warming process or tackle its impacts alone, it can certainly contribute to climate change mitigation efforts, securing better water access, and promoting its rational use. There is frequently no water supply or water treatment infrastructure in rural areas of the regions where it invests. Most municipal water supply and treatment utilities across Central Asia have not seen much investment or refurbishment over the last 30 years. The EBRD has been working to address this issue, and many of its investment projects are already impacting people’s lives. [caption id="attachment_29070" align="aligncenter" width="1600"] Image: EBRD[/caption] In Kazakhstan, the Bank’s work with Vodnye Resoursy Marketing (VRM)/Shymkent water company, the country’s only privately owned municipal water utility, perfectly illustrates why the EBRD is such a strong advocate of private-sector involvement in the provision of municipal services. Over many years, we have enjoyed excellent cooperation with this company, which has translated into high-quality water supply services for more than 1.2 million residents of Shymkent. It has become a benchmark for the region for its effective and efficient operations. Thanks to VRM’s efforts, with 1.2 million residents, Shymkent became the first city in Kazakhstan to install a water meter for every consumer. User habits have changed: personal daily water consumption has decreased from 456 liters 27 years ago to 150 liters. The water savings achieved during this period will enable Shymkent to meet the needs of its population for another 20 years. The EBRD started working with VRM in 2009 and has financed five projects totaling €60 million. With the Bank’s financial assistance, VRM has introduced an automated network monitoring system, improved power supply at twelve pumping stations, constructed eleven electrical substations, and built a European Union standards-compliant biogas facility (the only one of its kind in Central Asia), which helps VRM to meet all of its thermal...