Economic Cooperation - The Times Of Central Asia

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ADB Sustainable Development Economic Cooperation Climate Change Adaptation Strategy

CAREC Ministers Approve Climate Action Plan and Launch Regional Climate Fund

At the 23rd CAREC Ministerial Conference held in Astana on November 8, member countries of the Central Asia Regional Economic Cooperation (CAREC) Program—Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan—endorsed a new Climate Change Action Plan (CCAP) and launched the CAREC Climate and Sustainability Project Preparatory Fund (CSPPF). These initiatives aim to strengthen regional collaboration on climate resilience, low-carbon growth, and sustainable development. The CAREC Program is a partnership of 11 countries and development partners that promotes sustainable development through regional cooperation, with the Asian Development Bank (ADB) hosting the CAREC Secretariat. In his address at the conference, ADB President Masatsugu Asakawa stated, “The approval of the CAREC Climate Change Action Plan and the establishment of the Climate and Sustainability Project Preparatory Fund are significant milestones in our collective efforts to address climate change. By working together, we can build resilient infrastructure, develop early warning systems, and create a greener future powered by renewable energy.” The CCAP, covering the period from 2025 to 2027, prioritizes initiatives aligned with the CAREC Climate Change Vision and focuses on four main areas to address climate challenges in the region. It aims to enhance climate risk preparedness, strengthen the water-energy-food nexus, promote low-carbon growth by reducing emissions and expanding renewable energy, and create a CAREC climate platform. The CSPPF will support CAREC countries in developing viable regional climate projects that align with their commitments under the Paris Agreement. On November 8, ADB signed fund contribution agreements with China’s Ministry of Finance and South Korea’s Ministry of Economy and Finance, generating an initial $5 million in funding for the CSPPF. Speaking at the Ministerial Conference, Kazakhstan’s Prime Minister Olzhas Bektenov highlighted the CAREC Program’s significance for Central Asia, noting that over the past 20 years, it has mobilized about $51 billion for the region, with more than $9 billion invested in Kazakhstan. During his visit to Kazakhstan, ADB’s Asakawa met with President Kassym-Jomart Tokayev to discuss ongoing cooperation and future initiatives. From 1994 to 2024, ADB financed projects in Kazakhstan valued at approximately $7 billion. Notably, ADB participated in the construction of the Western Europe–Western China highway corridor and the reconstruction of the Aktobe–Kandyagash road.

Central Asia to Develop a Unified Platform for Electricity Trade

Uzbekistan's Deputy Minister for Energy Umid Mamadaminov announced at the European Economic Days in Tashkent on November 6 that a unified platform for electricity trade is being developed in Central Asia. Mamadaminov said that Uzbekistan is developing this platform with the support of the World Bank and other partners. “Infrastructure is very important for integrating renewable energy sources such as wind and solar, and many countries face this problem. We need at least 5,000 km of power lines, including 500 kV and 200 kV high-voltage lines and substations,” Mamadaminov said. At least 2,000 km of power lines should be built in the next two years. “We have already signed contracts to install more than 2,000 MW of energy storage systems with a total capacity of more than 400 MW, as each is a two-cycle network. We will have at least 4,000 MW of basic capacity in the next two years. This helps to respond to fluctuations in solar energy production quickly,” the deputy minister said. According to Mamadaminov, automation is the main problem in integrating renewable energy sources into the electric grid because the system cannot be controlled without it. In addition, this year, reforms to modernize and regulate energy consumption, including a new plan developed by the Cabinet of Ministers, were implemented in Uzbekistan. Uzbekistan’s energy system, especially electricity generation, relies heavily on fossil fuels. However, the country aims to produce 25% of its electricity from renewable sources by 2030. Uzbekistan plans to focus on solar energy while using wind, biomass, and hydro sources to achieve this goal. The government is working to attract investors to build 8 GW of solar and wind power and increase hydroelectric capacity to 1.935 GW by 2030. Biogas production from biomass and organic waste will also be developed.

Silk Road South Korea Diplomacy International Cooperation Foreign Trade Economic Cooperation International Relations

Central Asia and South Korea Seek to Expand Cooperation

The 17th Central Asia–Republic of Korea Cooperation Forum, which took place in Seoul on November 4, addressed key areas of partnership between Central Asian countries and South Korea in sectors such as transport and logistics, energy, critical minerals, digital transformation, environmental issues, and tourism. Speaking at the forum, Kazakhstan’s Minister of Foreign Affairs, Murat Nurtleu, emphasized the importance of transport connectivity for the region’s sustainable economic growth. Kazakhstan is developing the Trans-Caspian International Transport Route to ensure safe and efficient cargo transportation from Asia to Europe. The Kazakh minister invited Korean companies to participate in major projects to expand the route’s capacity to 10 million tons of cargo annually. Addressing energy cooperation, Nurtleu highlighted Kazakhstan’s abundant natural resources, including rare earth metals and uranium. The Kazakh Foreign Minister expressed hope that Korean companies would join projects for resource extraction and processing and participate in a consortium to construct a nuclear power plant in Kazakhstan. Nurtleu stated, "Central Asian countries and the Republic of Korea are natural partners connected by a shared history, Altai heritage, and traditional trade relations dating back to the Silk Road era. The Republic of Korea is increasingly vital in the economic and technological development of the entire Central Asian region.” At the forum, Kyrgyzstan’s First Deputy Minister of Foreign Affairs, Asein Isaev, highlighted the growing role of South Korea as a high-tech nation interested in strengthening supply chains for energy resources and rare earth metals and developing transport and logistics routes with Kyrgyzstan and other Central Asian countries. As part of the forum, South Korea's President Yoon Suk Yeol met with the heads of Central Asian delegations and pointed out Korea’s interest in strengthening relations with Central Asian countries through the K-Silk Road initiative. This strategic program supports Korean infrastructure development in Central Asia in exchange for improved access to the region’s raw materials and critical minerals. During his visit to Kazakhstan in June, Yoon Suk Yeol emphasized the importance of strengthening the strategic partnership between Kazakhstan and South Korea to supply critical minerals.

Kazakhstan and France – Key Take-Aways From Tokayev’s Trip to Paris

As The Times of Central Asia has reported, President Kassym-Jomart Tokayev paid a state visit to Paris, during which he met with his French counterpart and held fruitful talks with representatives of major European companies. After the bilateral talks, Tokayev and French President Emmanuel Macron issued a joint statement. “This visit is significant for us. France is a close and reliable partner of Kazakhstan in the European Union. For 34 years, our relations have acquired a strategic character. Astana and Paris have established a political dialog based on mutual understanding at all levels. Ties in trade and economic, investment, cultural, and humanitarian spheres have been strengthened; a clear legal framework has been formed. Interaction within the framework of international organizations has expanded. I am confident that our partnership, based on unshakable friendship and mutual support, will be successful in the future,” Tokayev said. Both parties stated that they consider it necessary to develop trade and economic cooperation. “Last year, the two countries' trade turnover amounted to $4.2 billion. And this year, we reached this figure in 9 months. France ranks sixth in terms of investment in our country. French companies, including Alstom, Total Energies, Air Liquide, Orano, Vicat, Danone, and Lactalis, have invested heavily in Kazakhstan, reaching about $19.5 billion. Cooperation in the oil and gas, mining, industrial, construction, aviation, engineering, and health care sectors is being strengthened,” the Kazakh president said. In addition, Tokayev met in Paris with a potential supplier of nuclear technology for the construction of nuclear power plants, the CEO of Électricité de France (EDF), Luc Remona. According to the official website of the President of Kazakhstan, Akorda, “The French company is on the short list of potential suppliers of nuclear technology for constructing nuclear power plants. The country is considering the establishment of an international consortium as one of the potential models for the realization of this crucial project.” President Tokayev also participated in an investment roundtable attended by the heads of France's largest companies. “We are pleased to be one of France's main trade, economic, and investment partners in Central Asia. Kazakhstan now accounts for more than 80% of France's trade with the region. This year, bilateral trade volume has increased by 45%,” Tokayev said. The President also outlined promising areas of economic ties for the two countries. “Energy has always been a key sector of our cooperation. Astana is a major supplier of oil and uranium to the European Union and is ready to support France's energy sovereignty further. We expect an intensified presence of French industry in Kazakhstan, with which we associate the introduction of advanced technologies in our production sphere. Given that our country is the largest uranium producer in the world, and France has extensive experience in the nuclear industry, we could cooperate in civilian nuclear energy,” Tokayev stated. Tokayev emphasized that massive international companies are interested in implementing large-scale wind, solar, and hydropower projects in Kazakhstan. For example, Total Energies plans to invest $1.1 billion in a one-gigawatt wind...

Alstom to Supply 117 Locomotives to Kazakhstan

Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), Electric Locomotive Assembly Plant, and France’s Alstom have agreed to supply 117 freight electric locomotives by 2028 and establish service centers for them. The document was signed at Paris's November 4 Kazakhstan-France Business Council meeting. These powerful electric locomotives, capable of hauling freight trains weighing up to 9,000 tons, will replace the outdated VL-80 locomotives of the 1980 model. The new locomotives' advantages include lower cost, more economical power consumption, high reliability, and lower maintenance costs. The French bank Société Générale will provide preferential financing for the purchase of the locomotives. Kazakhstan's railways play a strategic role in its economy. The country is a key transit hub for rail cargo transportation along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects China and Europe. Today, more than 50% of freight in Kazakhstan is transported by rail. Kazakhstan Temir Zholy, the country’s national railway company, reported transporting more than 122 million tons of cargo from January to June 2024.

American Chamber of Commerce in Kyrgyzstan: Future Development and Investment Climate

As Central Asia continues to become a regional hub for trade and innovation, The Times of Central Asia spoke with Altynai Asanova, the Executive Director of the American Chamber of Commerce in the Kyrgyz Republic, to discuss the investment climate in Kyrgyzstan, economic trends, and future development. TCA: I see that your background is primarily in hotel management and sales; how did you transition from this role to your current position? “My background includes 18 years in the hotel business. Ten years at Hyatt, starting in food and beverage and ending in the hotel sales department; then, I worked at the Orion Hotel for the pre-opening and opening stage for about three years. After this, I was hired by Sheraton, one of the Marriott chain hotels, to work on the pre-opening and opening stage for two years. I was still involved with the business audience and wanted to continue working with the stakeholders and companies who know me.” TCA: How would you describe the hospitality industry in Kyrgyzstan? Is it mainly in Bishkek or other regions? “It is developing; before, it was only the Hyatt. Now, there are three or four chain hotels in Bishkek. It is good that there are more players in the market. It is developing day by day. The development is mainly in Bishkek, but we have good perspectives for Issyk Kul as long as the roads and infrastructure are completed. The chain hotels are also becoming interested in Issyk Kul. The good thing is that enough businessmen understand and accept the market challenges in Issyk Kul. They know it will not be financially stable at launch since the busy season is only about 50 days. But if the hotels provide full service and comfort, people will travel there for the full season.” TCA: Stepping away from hospitality, what did American investment in Kyrgyzstan look like ten years ago?” “Before, there was an American base in Kyrgyzstan. During that time, the hospitality business was amazing. The rates were high considering the charter flights and pilots who needed a place to stay. Now, these rooms are listed at the lowest rates. At that time, the Hyatt was the only five-star hotel in Bishkek, so all the American guests were staying at the Hyatt. The investment climate dropped after the U.S.-Kyrgyzstan agreement ended. There is opportunity, but it goes slowly.” TCA: Since then, what has changed in the business climate? “Business-wise, if we look from the angle of the association, we do not have any purely American business; we have franchise members: KFC, Hyatt, Sheraton, and some banks. It would be nice to have purely American [businesses] here.” TCA: Who are the current major investors in the Kyrgyz market? And is competition relevant to win contracts with local companies? “China, Russia, Kazakhstan, the Netherlands, and Turkey are the main investors. Before making any contracts or tenders, we need to understand the possibilities of our market, ‘Is our country ready to accept this level of business?’ The first question...