Economic Cooperation - The Times Of Central Asia

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EDB Conference in Almaty to Focus on Sustainable Development in Central Asia

The Eurasian Development Bank (EDB) will host its annual conference, titled “Promoting Sustainable Development in Central Asia,” on December 6 in Almaty, Kazakhstan. The EDB, an international financial institution focused on fostering economic cooperation and development across Eurasia, counts Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan among its member countries. Kazakhstan alone accounts for nearly 60% of the Bank’s investment portfolio, reflecting its pivotal role in regional development efforts. The conference will focus on the EDB’s most pressing priorities for 2024, including the urgent need for sustainable and rapid economic growth to alleviate poverty in Central Asia. Discussions will address the persistent challenges of transport connectivity, which are particularly acute for the landlocked countries of the region. Additionally, the event will explore the integrated development of the water, energy, and food nexus, which the EDB views as essential for ensuring the region’s security, peace, and sustainable development. Participants will also examine trade facilitation, investment strategies, and innovative solutions for infrastructure development. These topics are considered crucial for advancing the region’s economic prospects and improving the quality of life for its citizens. The conference will host representatives from leading international organizations, including the World Bank, the Islamic Development Bank (IsDB) and its Institute, the World Food Programme, and the UN Development Programme. Other participants include the Development Bank of Kazakhstan, the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and the UN Climate Technology Centre & Network (CTCN), alongside government officials and regional stakeholders. This annual event is expected to provide a platform for actionable discussions, fostering collaboration among key players and paving the way for sustainable economic development in Central Asia.

Foreign Investment Economic Cooperation Saudi Arabia Energy Infrastructure COP29

Saudi Arabia to Build Electricity Storage Systems in Uzbekistan

Saudi company ACWA Power has signed an agreement with Uzbekistan to construct electricity storage systems with a total capacity of 2,000 MWh. The agreement was formalized during the COP-29 climate conference in Baku, Azerbaijan. Under the agreement, ACWA Power will collaborate with Uzbekistan’s Ministry of Energy to develop energy storage systems across the country. The implementation will be based on a comprehensive analysis of the national grid’s condition. The project will begin with feasibility studies to determine the most suitable regions for phased deployment. The initiative is estimated to cost $1.1 billion and is expected to create over 1,000 jobs during its lifetime. Uzbekistan has ambitious plans to expand its energy storage capacity to 4.2 GW by 2030. The first energy storage system in the country is slated for launch in early 2025 in the Fergana region. Deputy Energy Minister Umid Mamadaminov recently noted that Uzbekistan needs to build 10 GW of backup capacity by 2030 to support the integration of renewable energy sources. He emphasized that the country’s minimum reserve should equal 50% of its solar and wind power capacity.

Nuclear Energy China Uranium Atomic Energy Nuclear power Economic Cooperation

Chinese Companies to Purchase Uranium Concentrates from Kazatomprom for $2.5 Billion

Shareholders of Kazatomprom, Kazakhstan’s national uranium producer, have approved agreements with two Chinese partners: CNNC Overseas and China National Uranium Corporation (CNUC). These agreements include a spot contract with CNNC Overseas and a long-term contract with CNUC. Under the terms of these deals, Kazatomprom plans to supply uranium concentrates to China valued at approximately KZT1.25 trillion (around $2.5 billion). While the company has not disclosed specific delivery timelines or volumes, the agreements mark a significant development in Kazakhstan-China nuclear energy cooperation. CNNC Overseas registered in Hong Kong, and CNUC, based in China, are both subsidiaries of the China National Nuclear Corporation, a state-owned entity responsible for operating nuclear power plants across China. Kazatomprom has been deepening its ties with China in the nuclear energy sector. In May 2023, a ceremony at the Fangchenggang Nuclear Power Plant marked the acceptance of fuel assemblies produced by Ulba-TVS LLP, a Kazakh-Chinese joint venture in Ust-Kamenogorsk. These assemblies, made from Kazakhstani uranium feedstock, are destined for use in Chinese nuclear power facilities.

China Agriculture Cotton Infrastructure Development Bilateral Cooperation Economic Cooperation Foreign Investment

Chinese Company Builds Cotton-Textile Cluster in South Kazakhstan

Xinjiang Lihua (Group) Co., Ltd., one of China’s largest companies specializing in the cultivation and deep processing of cotton, has commenced work on a cotton-textile cluster in Kazakhstan’s southern Turkestan region. The project’s progress was reviewed on November 14 during a meeting between Kanat Sharlapaev, Kazakhstan’s Minister of Industry and Construction, and representatives of the company. Located in the Turan Special Economic Zone, the joint venture involves the construction of facilities for PVC pipe manufacturing, drip irrigation systems, two cotton processing plants, a spinning mill, a weaving mill, a dyeing and finishing factory, and a garment factory. The project, with a total cost of 180 billion KZT (over $363 million), is expected to generate more than 4,000 jobs. This year, the initiative saw the installation of a drip irrigation system, cotton cultivation on 1,120 hectares, and the start of construction for the spinning mill. Minister Sharlapaev underscored the project’s significance for the development of Kazakhstan’s light industry, pledging comprehensive government support to ensure its success.

Economic Cooperation Energy Infrastructure EU Export/Import Energy Electricity supply

Uzbekistan Aims to Export 10-15 Billion kWh of Electricity to Europe by 2030

Uzbekistan plans to export 10-15 billion kWh of electricity abroad by 2030, according to Deputy Minister of Energy Umid Mamadaminov, who discussed the initiative in an interview on November 6 during the “Days of European Economy in Uzbekistan” forum. “In 2030, electricity demand is projected to be around 120-125 billion kWh. Our generation capacity will reach approximately 135 billion kWh. Once the necessary infrastructure is ready, we’ll be able to export electricity to Europe,” Mamadaminov explained. At a meeting in Astana in August, Uzbekistan outlined plans to start exporting surplus electricity to Europe by 2030. Energy Minister Jurabek Mirzamahmudov noted that if the joint project with Kazakhstan and Azerbaijan to lay a cable under the Caspian Sea is successful, Uzbekistan will be able to transmit excess energy to Europe. Mirzamahmudov said that renewable energy capacity would exceed 4 GW by the end of this year and is expected to reach over 20 GW by 2030, with 2-5 GW available for export. In the summer, Uzbekistan, Kazakhstan, and Azerbaijan agreed on a draft strategic partnership to develop and transmit green energy. The agreement includes terms for a preliminary feasibility study, which is being developed by the Italian company CESI. “We selected CESI to handle the project’s feasibility study,” Mamadaminov stated. “The study will take about a year and a half to complete, with an expected finish date by the end of 2025. Following this, construction will begin based on the study. The project requires around 2,500 km of HVDC (high-voltage direct current) cable, which will be costly—exceeding $2 billion.” Mamadaminov added that the electricity price will be market-driven but is expected to start at around 4-5 cents per kilowatt.

COP29 Economic Cooperation Green Energy Renewable energy Azerbaijan

Kazakhstan, Uzbekistan, and Azerbaijan Forge Green Energy Partnership

On November 13, on the sidelines of the COP29 summit in Baku, Azerbaijan, Kassym-Jomart Tokayev, Shavkat Mirziyoyev and Ilham Aliyev, the leaders of Kazakhstan, Uzbekistan and Azerbaijan, signed an agreement for a strategic partnership in developing and transporting green energy. Calling the signing of this agreement a historic event, Aliyev said that “it opens new opportunities for cooperation between the regions of Central Asia and the Caucasus. In fact, the integration processes, the processes related to transportation, energy, and trade between the regions of Central Asia and the Caucasus, allow us to say that these two regions are acting in a synchronized manner in many areas, including in the field of green energy development.”. The Azeri president added that constructing an electric cable under the Caspian Sea could lead to broader regional collaboration. Aliyev also highlighted Azerbaijan's ongoing plans to construct a cable from Azerbaijan along the bottom of the Black Sea to Europe. “The feasibility study for this project is nearing completion, so we will connect Central Asia, the Caucasus, Europe, the Caspian, and the Black Seas with a single energy corridor,” he stated. In his speech, Tokayev said the trilateral agreement opens new opportunities for integrating the energy systems of Kazakhstan, Uzbekistan, and Azerbaijan, as well as for creating reliable corridors to supply environmentally friendly energy to European and other markets. “Kazakhstan plays an extremely important role here as a large transit territory. The practical results of this Agreement will also contribute to developing the Middle Corridor as a ‘green bridge’ connecting our economies. Close cooperation in this key area will intensify the exchange of experience and advanced technologies between the three states and further strengthen our energy security,” Tokayev said. Mirziyoyev emphasized the environmental significance of this agreement, noting, “The energy that will be transmitted is wind and solar energy, which will help mitigate the impact on the climate. In this way, we support joint efforts to protect the climate within the framework of the Paris Agreement and achieve the Sustainable Development Goals,” he added. The three presidents also witnessed the signing of an Executive Program on cooperation in green energy development and transmission by the energy ministers of Azerbaijan, Kazakhstan, Uzbekistan, and Saudi Arabia.