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Kazakhstan's construction sector is grappling with a significant labor shortage, with approximately 111,000 positions currently unfilled. Prime Minister Olzhas Bektenov warned at a recent government meeting that this figure is expected to double by 2030, forecasting a deficit of over 200,000 skilled workers in the industry. Bektenov highlighted that the most affected roles include plasterers, painters, welders, masons, and concrete workers - essential positions for the sector’s operations. While the construction industry ranks third among sectors facing workforce shortages, it holds a critical place in Kazakhstan’s economy. According to government forecasts, education leads in expected vacancies, with 331,000 unfilled positions projected by 2030, followed by trade at 228,000. Despite ranking behind these sectors in terms of unmet demand, construction contributes the most to Kazakhstan’s GDP among the three, accounting for 5.6% of the country’s total economic output, according to the Ministry of Industry and Construction. This looming shortage poses challenges to sustaining growth in a sector vital to the nation’s development and economic stability.
On December 6, Kyrgyzstan’s President Sadyr Japarov inaugurated a new bypass road around Uzgen, a historic city located 56 kilometers northeast of Osh, the largest city in southern Kyrgyzstan. The bypass is designed to alleviate traffic congestion in Uzgen by redirecting vehicles away from the city center. This development is expected to improve traffic flow, reduce travel times, and lower the risk of accidents on the former main route through the city. Construction of the bypass began in January 2024. The project includes two significant bridges: a 197-meter-long bridge spanning the Kara-Darya River and a 77-meter-long bridge over the Jazy River. To address the needs of residents, the project also features underground crossings for pedestrians and livestock and access roads connecting nearby villages. Speaking at the opening ceremony, Japarov emphasized that the Uzgen bypass is Kyrgyzstan’s first infrastructure project completed through a public-private partnership model. He reiterated the government’s dedication to expanding the country’s road network to enhance connectivity and boost logistics capabilities. Japarov also outlined plans for additional road projects, including a proposed 150-kilometer route linking Almaty, Kazakhstan’s largest city, to Kyrgyzstan’s Lake Issyk-Kul. This new route would significantly shorten the current travel distance, providing a faster and more efficient connection between the two destinations. While acknowledging the long-term nature of infrastructure investments, Japarov highlighted their critical importance for national and international development. He encouraged private investors, particularly domestic ones, to participate in upcoming road construction projects. If sufficient local investment is not secured, the government plans to seek foreign partnerships. In his closing remarks, Japarov likened road infrastructure to the "circulatory system" of the state, underlining its fundamental role in driving economic growth. He noted that improved roads enhance regional logistics, foster trade, and promote tourism, all of which are vital for Kyrgyzstan’s development.
Uzbekistan has successfully concluded bilateral negotiations with China regarding its accession to the World Trade Organization (WTO). Azizbek Urunov, Special Representative of the President for the WTO, announced this milestone in a LinkedIn post. “[It was a] very short but productive visit to Beijing! Yesterday, we completed bilateral negotiations on Uzbekistan’s accession to the WTO with the People’s Republic of China,” Urunov wrote. He expressed gratitude to China’s Ministry of Commerce, Deputy Minister Li Fei, Director Li Defeng, and their teams for their cooperation. “[It is] very important at [the] year-end to finish negotiations with the two biggest global trade players – the United States and China. Twenty-two countries are there, a few left!” The Times of Central Asia reported that this achievement follows Uzbekistan’s recent finalization of WTO accession negotiations with the United States, Uzbekistan’s WTO accession is a cornerstone of the country’s ongoing economic reforms, which aim to integrate its economy into the global trade system. Johanna Hill, WTO Deputy Director-General, praised Uzbekistan’s progress: “Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform in the strategic region of Central Asia, with WTO accession very high on the government’s agenda.” Hill referenced a WTO report indicating that countries implementing market reforms during WTO accession experience growth rates 1.5% higher than those without such reforms. With negotiations with major economies like the United States and China now complete, Uzbekistan is edging closer to its goal of WTO membership, a move poised to boost its global trade prospects and economic development.
Kyrgyzstan’s airlines may soon achieve a significant milestone by being removed from the European Union’s Air Safety List, which currently bans them from operating flights to Europe. Kyrgyz President Sadyr Japarov made this announcement on November 27 during a meeting in Berlin with Johan Pelissier, the head of Airbus Europe, where they discussed the future of Kyrgyzstan’s aviation sector. Japarov emphasized the government’s concerted efforts to enhance aviation safety, implement international standards, and modernize infrastructure. He expressed optimism that these measures have significantly improved the likelihood of lifting restrictions on Kyrgyz airlines. As part of these developments, Japarov highlighted the government’s support for the national carrier, Asman Airlines. Under an initial agreement with Airbus, the airline plans to lease two A320 or A321 aircraft to establish direct routes to Europe, including destinations such as Paris, Berlin, and London. This initiative marks a critical step toward integrating Kyrgyzstan into the global aviation network. Looking ahead, Kyrgyzstan aims to expand its fleet and deepen cooperation with Airbus, fostering stronger connections with the international aviation community. At the conclusion of the meeting, Japarov extended an invitation to Pelissier to visit Kyrgyzstan for further discussions with local aviation representatives. Background: A Longstanding Ban Kyrgyz airlines was added to the EU’s Air Safety List in 2006 after failing to meet international safety standards. This decision, based on assessments that the country’s legal framework did not adequately ensure flight safety, has prohibited Kyrgyz airlines from flying to EU destinations for over 18 years. The ban has had a profound impact on the aviation sector, limiting its operational scope and market reach. Efforts to address these shortcomings represent a turning point, with the potential removal from the blacklist signaling a new chapter for Kyrgyz aviation. If successful, this move could open up significant opportunities for growth and international collaboration.
Construction has started on a Kyrgyz-Chinese mineral fertilizer plant in the Nookat district of southern Kyrgyzstan's Osh region. On November 25, equipment worth $15 million arrived from China to advance the project. The $260 million investment agreement for the plant was signed in May 2023 between Kyrgyzstan's Ministry of Agriculture and China’s Hebei Bai Dou Jia LLC during President Sadyr Japarov’s visit to China. The project will be executed in phases, with the first phase set for completion by 2025. This initial phase aims to produce 100,000 tons of fertilizer annually. Future phases include plans for an agricultural machinery assembly plant and expanding production capacity to 500,000 tons per year. Once fully operational, the facility is expected to generate around 2,000 jobs. The plant is a strategic move to reduce Kyrgyzstan’s dependency on imported mineral fertilizers. Currently, the country imports most of its 286,000-ton annual demand from Uzbekistan and Russia. The new facility is poised to meet and exceed domestic needs, boosting agricultural productivity and supporting the country’s economy.
Kazakhstan has announced plans to purchase electricity from Tajikistan’s Rogun hydropower plant (HPP), a major facility currently under construction. According to a draft agreement published on Tajikistan's official legal information portal, the cooperation between the two countries is set to last for 20 years, with an option to extend for an additional 10 years. The price for the electricity is set at $0.034 per kilowatt-hour (excluding VAT), plus a transit surcharge determined by the seller’s costs. Payments are to be made within 35 days for each supply period. The supply will only occur during scheduled shortages and will be integrated into KEGOC’s national grid. Rogun HPP will handle transportation to the border, while the Settlement and Financial Center for Renewable Energy Support LLP will oversee control on the Kazakh side. Any disputes arising from the agreement will be resolved through the Singapore International Arbitration Center. Electricity agreements with Kazakhstan and Uzbekistan are a critical component for securing international financing for the Rogun HPP’s construction. Project costs have risen to $6.4 billion, according to recent estimates. To cover these costs, the Tajik government is negotiating semi-concessional loans worth $1.73 billion, $850 million in grants, and $390 million in concessional loans. The remainder will come from the government budget and revenues generated by the plant. This year, the Tajik government allocated 5 billion somoni (approximately $460 million) for the Rogun project, with 2.8 billion somoni coming from the state budget and 2.2 billion somoni from investment projects. By the end of September 2024, 4.3 billion somoni (about $395 million) had already been spent on construction. Once completed, Rogun HPP will become the largest hydropower facility in Central Asia, boasting a capacity of 3,600 MW and capable of producing up to 17 billion kWh of electricity annually. This output represents 65–85% of Tajikistan’s total electricity production. The plant will house six units of 600 MW each, with full commissioning expected by 2029. Currently, two units are operating at low capacity, having been commissioned in 2018 and 2019. The project serves as a landmark achievement for Tajikistan’s energy sector and a key driver of regional energy cooperation, promoting economic stability and resource-sharing throughout Central Asia.
