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Environment

Solid Waste Recycling Plant Under Construction in Bishkek

Bishkek municipality has announced progress on the construction of a solid waste recycling plant at the city’s sanitary landfill, supported by a Chinese investor. Concrete foundations are being poured, and equipment and components for the facility have begun arriving from China. Currently, over 180 Chinese workers and engineers are active at the site. On March 29, Kyrgyzstan’s Cabinet of Ministers and the Chinese investor signed an agreement for the plant’s construction. The facility will generate electricity by incinerating municipal solid waste. In its initial phase, the plant is expected to process 1,000 tons of waste daily, with plans to increase capacity to 3,000 tons per day. The project’s total investment amounts to approximately $95 million, with construction slated for completion in December 2025. Addressing a Growing Problem Solid waste disposal has long been a critical issue in Kyrgyzstan, particularly in Bishkek, the nation’s largest city. According to the 24.kg news agency, the per capita production of waste is rising. Almaz Oskonbaev, an official from the Ministry of Natural Resources, Ecology, and Technical Supervision, reported that 1.792 million tons of solid waste were collected nationwide in 2023, a significant increase from 1.177 million tons in 2019. This equates to approximately 279 kilograms of garbage per person annually. Bishkek’s sanitary landfill currently receives around 200 tons of waste daily from the city and its suburbs, according to landfill director Nurlan Jumaliev. A New Landfill to Complement Recycling Efforts In a bid to improve waste management, Bishkek inaugurated a new sanitary landfill on October 31, 2023. Supported by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), this facility complies with both national and EU environmental standards. With a storage capacity of 1.9 million cubic meters, it is expected to accommodate the city’s waste disposal needs for at least a decade. The construction of the recycling plant represents a significant step forward in addressing Bishkek’s mounting waste challenges while contributing to sustainable energy production.

Energy

Kazakhstan’s Power Grid Revamp Secures €267 Million Backing from EBRD and Canada

The European Bank for Reconstruction and Development (EBRD) has announced a €267 million financing package for the Kazakhstan Electricity Grid Operating Company (KEGOC) to enhance the reliability of the country’s power supply system. The funding comprises a €252 million EBRD loan and a €15 million concessional loan from the Government of Canada. The financial support will enable KEGOC, which oversees more than 27,800 kilometers of overhead transmission lines, to construct approximately 600 kilometers of 500 kV transmission infrastructure. This will facilitate the integration of the West Kazakhstan Power System into the country’s Unified Power System. The initiative is part of the EBRD’s broader efforts to assist Kazakhstan in implementing its long-term decarbonization strategy, aimed at achieving carbon neutrality in the power sector by 2060. It will improve the electricity supply for residents in western Kazakhstan and enable the integration of up to 12 GW of renewable energy capacity nationwide by 2030. Currently, Kazakhstan’s power grid is divided into three separate systems. While the EBRD connected the northern and southern grids in 2004, the West Kazakhstan Power System remains isolated. The project includes the construction of the 500 kV Karabatan-Ulke power line along the Atyrau-Aktobe motorway, the 500 kV Karabatan substation, and the expansion of the switchyards at the Karabatan (220 kV) and Ulke (500 kV) substations. These upgrades will strengthen domestic interconnections and enhance power supply reliability in western Kazakhstan. In addition to infrastructure improvements, the project is expected to reduce annual CO2 emissions by over 200,000 tons. It is supported by grant funding from the Government of Japan. The EBRD will also provide KEGOC with technical assistance, including piloting digital technologies within the grid, bolstering the system’s resilience to potential cyberattacks, and introducing gender-responsive training programs.

EBRD

EBRD’s Transformative Investments in Kyrgyzstan: An Interview With Hüseyin Özhan, Managing Director for Central Asia

The European Bank for Reconstruction and Development (EBRD), established in 1991, has been working in the Kyrgyz Republic since 1992 and has invested in over 250 projects amounting to over €1 billion. TCA sat down with Hüseyin Özhan to discuss the bank’s operations in Kyrgyzstan. TCA: Could you briefly introduce the EBRD and its main objectives within Kyrgyzstan? Özhan: The European Bank for Reconstruction and Development (EBRD) is owned by 73 shareholders as well as the EU and the EIB and has been operating in Kyrgyzstan for over 30 years. During this time, we have invested in more than 250 projects, surpassing €1 billion in total investments across the country. As an international financial institution, our operations in Kyrgyzstan are guided by a country strategy jointly prepared by the EBRD and local stakeholders and approved by the Bank’s Board of Directors. This year marks a significant milestone, as we have approved a new five-year country strategy outlining our priorities in Kyrgyzstan. We focus on fostering private sector growth and enhancing competition and also invest in infrastructure and sovereign-guaranteed projects. These efforts position the EBRD as one of the most influential international players in Kyrgyzstan. TCA: You mention the bank recently approved its new five-year strategy for Kyrgyzstan; could you share what this plan entails? Özhan: Our country's strategies are built on diagnostics conducted to identify transition gaps. These strategies align with the EBRD’s Strategic and Capital Framework and the Bank’s medium-term strategy and combine elements of the reform agenda and investment needs. The new strategy for Kyrgyzstan focuses on three key priorities: private sector development and competitiveness, the green economic transition with an emphasis on decarbonization and energy efficiency, and improved connectivity across the country. These priorities align closely with Kyrgyzstan’s recent reform agenda and development goals, which aim to enhance competitiveness, attract foreign investment, boost trade, and strengthen the country’s regional relevance. Decarbonization and resource efficiency are particularly critical, as Kyrgyzstan is significantly impacted by regional water scarcity. This makes sustainable water management a central focus, with numerous projects planned to support sustainable development in this sector. Additionally, developing the private sector, particularly local businesses, is vital. The EBRD works closely with the government in this regard, not only by providing funding but also through initiatives like “risk-sharing networks” and advisory programs for small businesses. These efforts help enhance productivity, relevance, and competitiveness, ensuring that Kyrgyzstan’s private sector is well-equipped to thrive in the market. TCA: How does EBRD’s mission differ from other development banks or financial institutions in the region? Özhan: Our institution has a slightly different approach to delivering our work and fostering transition in Kyrgyzstan. Unlike some other international financial institutions (IFIs) that provide budget support, the EBRD operates on a project-by-project basis and channels most of its resources to support good private-sector initiatives. A recent example of project finance is the signing of water projects in three cities in Kyrgyzstan. These sovereign lending agreements, signed with the Ministry of Finance, aim to modernize regional water...

public transport

End of the Trolleybus: Bishkek Authorities Abandon Eco-Friendly Transport Option

Bishkek authorities are phasing out trolleybuses in favor of buses, sparking criticism from residents and environmental advocates. Activists allege that municipal workers are dismantling trolleybus infrastructure, prompting lawsuits and complaints to the European Bank for Reconstruction and Development (EBRD), which funded trolleybus purchases for the city. The Shift to Electric Buses In defense of the decision, Mayor Aibek Junushaliyev argued that trolleybuses no longer meet the city’s needs, citing frequent breakdowns and their inability to operate effectively in Bishkek’s outskirts. Instead, the city plans to transition to large electric buses, with 120 units ordered from China’s Ankai Automobile Co., set to arrive in mid-2025. For now, public transport is provided by gasoline and gas-powered buses. The existing trolleybuses are being transferred to Osh, with approximately 100 slated for relocation. The Bishkek Trolleybus Department signed a contract with Ankai in 2022 to deliver the electric buses and charging infrastructure. The move is supported by funding from the Asian Development Bank (ADB), which has allocated $50 million to the project. [caption id="attachment_25888" align="aligncenter" width="1280"] Photo: Bermet Borubayeva[/caption] Activists Push Back Public opposition to the trolleybus phaseout is growing. Activist Bermet Borubayeva insists that Bishkek officials have no legal authority to transfer the trolleybuses. She highlighted that many were purchased using a $23.5 million EBRD loan ratified by Kyrgyzstan’s parliament, which stipulated that the vehicles must remain in Bishkek. “Citizens repay these loans through taxes, and without the EBRD’s consent, the municipality cannot transfer the trolleybuses elsewhere,” Borubayeva explained. She accused city officials of deliberately damaging trolleybus infrastructure. “They cut the wires in various places, rendering the system unusable. This violates both domestic and international laws,” she said. Despite these challenges, Borubayeva noted that activists have mobilized a significant resistance movement to preserve the trolleybuses. Environmental and Social Concerns Trolleybuses carried 20 million passengers last year without producing carbon emissions, making them vital to Bishkek’s eco-friendly public transportation. In a city grappling with severe air pollution, critics argue that phasing out trolleybuses exacerbates environmental problems. Borubayeva also questioned the city’s claims about ADB funding. “The mayor’s office says the electric bus project will replace the entire trolleybus fleet, but ADB documents indicate that only 20 trolleybuses are affected. Either the mayor’s office is misleading us, or the ADB is,” she asserted. According to ADB’s memorandum, the project includes a $59 million budget, with $50 million provided as a credit line and $15 million as a grant. The funds are primarily for electric bus procurement, along with infrastructure construction and consulting services. However, ADB representatives clarified to activists that the funding is for additional infrastructure, not an outright replacement of trolleybuses. Public Transportation in Crisis The dismantling of the trolleybus system has left Bishkek residents struggling with inadequate transportation. Buses have yet to fill the gap, leading to mounting public frustration. “We must address the public transportation crisis urgently,” MP Dastan Bekeshev said during a parliamentary session. “People cannot get to work or school on time. The trolleybuses need to be brought back into...

Water Management

EBRD Supports Water Infrastructure Upgrades in Northern Kyrgyzstan

The European Bank for Reconstruction and Development (EBRD) has announced a financial package of up to €17 million to upgrade water infrastructure in three cities in northern Kyrgyzstan. The funding includes a loan of up to €7.6 million and a matching grant. The funds will be used to modernize water supply networks, upgrade pumping stations, install water meters in Kemin and Shopokov, and restore wastewater treatment and sewerage systems in Talas. In addition to the financial package, the projects will receive a technical cooperation grant of up to €1.8 million. This grant will support the implementation process and the corporate development of municipal utilities in the three cities. Hüseyin Özhan, EBRD Managing Director for Central Asia, highlighted the Bank's role as a key lender to Kyrgyzstan’s water sector. “We have supported 31 water projects for the amount of more than €190 million in 26 cities across the Kyrgyz Republic to date. They are helping households and businesses to have regular access to high-quality water and wastewater services,” Özhan stated. Since beginning its operations in Kyrgyzstan in 1992, the EBRD has invested approximately €998 million across 250 projects. These initiatives primarily focus on sustainable infrastructure and private sector development, significantly improving living conditions and economic opportunities in the region.

EBRD

EBRD and EU Support Solar Power Project in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) is providing funds to construct a solar power plant in Uzbekistan’s Khorezm region. The EBRD’s financial package of up to $54.6 million (€50.5 million) will be provided to Sarimay Solar, a special-purpose company fully owned by Voltalia, an international energy producer and service provider based in France. The package will consist of a senior loan of up to $44.8 million (€41.5 million) and a special facility of €9 million, which will support Sarimay Solar during construction. The project will benefit from an unfunded guarantee covering a senior loan tranche of $7 million (€6.5 million) provided by the European Union’s European Fund for Sustainable Development Plus. The financing will help Sarimay Solar construct and operate a 100 MWac (126MWdc) greenfield solar photovoltaic plant, contributing to Uzbekistan’s aim of further decreasing its reliance on carbon-intensive thermal power generation and developing up to 25 GW of solar and wind capacity by 2030. Once operational, the plant is expected to generate up to 252 GWh of electricity yearly and reduce annual CO2 emissions by more than 141,000 tons. For the fourth year in a row, Uzbekistan has been the leading recipient of EBRD funding in Central Asia. The Bank has invested around €4.9 billion in 167 projects across the country, most of which support private entrepreneurship.