Eurasian Development Bank (EDB) - The Times Of Central Asia

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Finance Banking Eurasian Development Bank (EDB)

Uzbekistan Set to Join the Eurasian Development Bank in 2025

Uzbekistan is set to complete the procedures for joining the Eurasian Development Bank (EDB) by early 2025. The announcement was made during an expanded meeting of the Supreme Eurasian Economic Council (EAEC). Uzbekistan has held observer status in the Eurasian Economic Union (EAEU) since 2020, and is preparing to deepen its engagement in regional economic projects. The country is already participating in several sectoral programs between the EAEU member states. These programs focus on areas such as the digitalization of trade, cargo transportation, e-commerce development, and combating climate change. The Eurasian Development Bank was founded in 2006 by Russia and Kazakhstan. Its current members are Armenia, Belarus, Kyrgyzstan, and Tajikistan. The EDB's primary mission is to promote economic growth and strengthen integration among its member states by financing major investment projects across various sectors. As of June 30, 2024, the EDB's investment portfolio stood at USD 4.8 billion, comprising 78 projects throughout the member states. The Bank prioritizes projects with integration effects, including cross-country infrastructure development, enhanced trade and economic ties, and the creation of common markets. It also supports "green" financing initiatives to promote sustainable development and environmental safety across the region. Experts view Uzbekistan's plans to join the EDB as a strategic move to bolster its economic cooperation with neighboring countries. Membership in the Bank would provide Tashkent with access to new financial opportunities, facilitating the implementation of joint initiatives and strengthening its role in regional economic integration.

Eurasian Development Bank (EDB) Migrants Digital Technologies EAEU Digital Service

Work in the EAEU App Expands to Uzbekistan to Support Migrant Workers

The “Work in the EAEU” mobile app, developed by the Eurasian Development Bank’s (EDB) Fund for Digital Initiatives, has officially launched services for migrant workers in Uzbekistan, the EDB has announced. With this launch, the app now operates in Uzbekistan, a country that is neither a member of the Eurasian Economic Union (EAEU) - which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia - nor an EDB member state. The expansion highlights the app’s broader regional ambitions. Initially launched in June 2022, the “Work in the EAEU” app was designed to support the free movement of labor within EAEU member states. The service has since expanded to include Tajikistan in September 2024, and now Uzbekistan. Services for Migrant Workers The app provides a wide range of services tailored for individuals seeking employment in Uzbekistan. Key features include: Job search tools and the ability to apply for vacancies. Assistance in applying to government authorities for personal identification numbers or registration cards. Access to tax services, information on work permits, and visa requirements, including types of visas and IT visas. Support in finding accommodation and purchasing air or railway tickets. Comprehensive legal and regulatory information on employment in Uzbekistan. The app is intended to simplify employment processes for migrant workers and enhance their access to essential services through a single platform. Migration Trends in the Region For decades, hundreds of thousands of citizens from former Soviet republics have migrated within the region in search of better job opportunities. Central Asian countries, including Uzbekistan, have historically supplied significant numbers of labor migrants to Russia. However, recent geopolitical shifts have altered migration patterns. Following Russia’s invasion of Ukraine and the partial mobilization in September 2022, thousands of Russian citizens fled their country, with many relocating to Central Asia. This reverse migration underscores the increasing importance of tools like the “Work in the EAEU” app, which facilitates mobility and employment across borders. The launch of the “Work in the EAEU” app in Uzbekistan represents a step forward in easing cross-border employment processes in the region. As migration patterns continue to evolve, such digital initiatives will play a crucial role in supporting both labor migrants and host countries.

Finance Hydro power Energy Eurasian Development Bank (EDB) EDB HPP Energy Infrastructure

Hydropower Development in Kyrgyzstan Gets Boost from EDB

The Eurasian Development Bank (EDB), the Ministry of Economy and Commerce, and the Ministry of Energy of Kyrgyzstan have signed a trilateral Memorandum of Cooperation for the Suusamyr-Kokomeren Hydropower Plant (HPP) Cascade Project. The memorandum outlines the EDB’s commitment to providing financial support for the preparation of project documentation, including a pre-feasibility study. The agreement focuses on developing the financial and economic model for the project, estimating capital costs, evaluating social and environmental impacts, and determining technical solutions and government support measures needed for its success. The Suusamyr-Kokomeren HPP Cascade will be located on the Kokomeren River and is expected to play a pivotal role in Kyrgyzstan’s energy sector. The cascade will consist of three hydropower plants with a combined capacity of 1,305 MW, meeting the country’s increasing electricity demands. Sanjar Bolotov, Kyrgyzstan’s Deputy Minister of Economy and Commerce, emphasized the significance of the project, commenting: “This major project will not only meet the country’s domestic electricity needs but also position Kyrgyzstan as a leading exporter of clean energy in the region.” The EDB is a multilateral development bank that includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan as member states. It is dedicated to investing in regional development initiatives across Eurasia. The Suusamyr-Kokomeren HPP Cascade is part of the EDB’s flagship investment initiative, the Central Asian Water and Energy Complex. This mega-project aims to strengthen water and energy cooperation among Central Asian countries while addressing local socio-economic challenges.

CIS Digital Technologies Finance Eurasian Development Bank (EDB) Digitalization

EDB Releases Finance for Kazakhstan’s Digital Investment Platform

Following an agreement signed by the EDB and the Investment Committee of Kazakhstan’s Ministry of Foreign Affairs and National Information Technology JSC, in July, the Eurasian Development Bank’s Fund for Digital Initiatives has allocated the first tranche for a project to establish a National Digital Investment Platform in Kazakhstan. The platform aims to provide comprehensive support to investors and investment projects by streamlining interactions between government authorities and the quasi-government sector to promote investments in Kazakhstan’s economy, and will coordinate and optimize the selection and registration of investment projects, the conclusion of investment agreements, and their monitoring. In addition, the project is expected to serve as a digital transformation model for attracting and supporting investment which can be implemented in other EDB member states: Armenia, Belarus, Kyrgyzstan, Russia, and Tajikistan. The platform which already has 755 registered investment projects, will become fully operational by 31 July 2025. Back in March, The Times of Central Asia reported Kazakhstan’s Prime Minister Olzhas Bektenov's announcement that to achieve the target of increasing the Kazakh economy to $450 billion by 2029, at least $150 billion of foreign investment was required during the interim period.

Irrigation Eurasian Development Bank (EDB) International Cooperation Water Management Water crisis IFAS

Central Asia’s Water Crisis

Over 80% of Central Asia’s available water is spent on irrigation, 40% of which is lost during delivery and directly in the fields. Over the coming years, the problem of water shortage will inevitably worsen and with the commission of the Qosh Tepa Canal in Afghanistan, will become chronic from 2028. The stark warning was issued by Evgeny Vinokurov, Eurasian Development Bank’s (EDB) Deputy Chairman of the Board and Chief Economist during the “Water, Energy and Food in Central Asia: Partnerships and Projects for Sustainable Development” session at the EDB 2024 Annual Meeting and Business Forum on 27–28 June in Almaty. The challenges of the Central Asian water and energy complex are too great to be tackled independently by the region’s countries. Historically, Central Asia’s five states have been closely linked by the region’s two largest transboundary rivers, the Amu Darya and the Syr Darya which flow into the Aral Sea basin, home to 80% of the population. Hence, the need for close a intersectoral relationship (nexus) concerning water, energy and food and deep regional cooperation for the effective use of shared water and energy resources to overcome the crisis. At the session, Askhat Orazbai, Chairman of the Executive Committee of the International Fund for Saving the Aral Sea, stressed the central role played by IFAS in building essential regional dialogue. The Fund is the only regional organization with membership of all five Central Asian states and according to its mandate, was designed to address the region’s complex water-energy nexus. For over 30 years, the Fund has been the key platform for decisions on water resources management at the highest level. Currently being reformed, the Fund’s full potential will soon be fully unlocked. The session emphasized the urgent need for increased funding to deal with challenges posed by water scarcity. Modernization of the existing irrigation infrastructure is extremely capital-intensive but budgetary funds are inadequate and private investors have shown no interest in the sector. The contribution of multilateral development banks is therefore critical and encouragingly, over recent years, most of the region’s MDBs have given special priority to water projects. The EDB's Chief Economist Vinokurov pointed out that conservation is key to solving the problem of water scarcity. Highlighting the importance of digital accounting and the introduction of effective irrigation technologies, Vinokurov suggested creating a regional cluster of irrigation equipment. Considering that the region spends from $150 million to $300 million annually on the above, the EDB plans to actively support this sector's development. Michael Detlefsen, a UNIDO representative, expressed confidence in the future formation of a regional cluster of irrigation equipment in Central Asia. Over the last two years, the region has seen increased activity from manufacturers from Turkey, China, Israel, and the United States on the organization of local assembly lines. In this regard, the UNIDO representative stressed the importance of working together with the EDB to form such a cluster.

Eurasian Development Bank (EDB) Transport cooperation International trade Eurasian Transport Network

New Report Analyses Eurasian Transport Network

On 27 June, the Eurasian Development Bank (EDB) released a report titled “The Eurasian Transport Network”. The report introduces a new conceptual approach to future developments within the Eurasian Transport Network and outlines key projects and initiatives aimed at improving transport connectivity in Eurasia. The Eurasian Transport Network is a system of interconnected latitudinal and longitudinal international transport corridors and routes, facilitating intra- and trans-continental connectivity for Eurasian countries. It builds upon over 50,000 km of international east-west and north-south transport corridors, linking Asia, Europe, and the Middle East. The Eurasian Transport Network consists of five key international transport corridors: the Northern, Central and Southern Eurasian Corridors, TRACECA, and the International North-South Transport Corridor (INSTC), along with branch lines and regional routes. According to EDB analysts, in 2023, international freight traffic along these five corridors of the Eurasian Transport Network totaled 260 million tons, including 3.6 million 20-foot containers (TEU). Compared to 2013, the volume of international container traffic has more than tripled. The most dynamic growth has been driven by foreign trade and transit container transit with China. Since 2013, the number of container trains to and from China via the Eurasian Economic Union countries and Central Asia has increased by a factor of 200. The EDB introduced the concept of a Eurasian Transport Network in 2021, and this report presents its detailed framework. Three years ago, the EDB released a report titled “The International North–South Transport Corridor: Promoting Eurasia’s Intra- and Transcontinental Connectivity”, which estimated that connecting international transport corridors would yield a 40% increase in freight traffic. In 2024, this projection was fully confirmed by the dynamic development of the INSTC and its linkage to TRACECA. The advancement of the Eurasian Transport Network is paving the way for the establishment of a transport hub in Central Asia. The development of multimodal transport and transit corridors is the only viable solution for Central Asian countries due to the significant distances between trade partners. Establishing a transport hub will facilitate an increase in international traffic, including transit. The EDB projects that freight traffic along the three main corridors running through Central Asia will increase by 1.5 times to 95 million tons by 2030. Container traffic is expected to grow even more rapidly, by almost two-thirds, reaching 1.7 million TEU. Evgeny Vinokurov, EDB Chief Economist, underlines that “at present, transportation costs for landlocked countries are 1.4 times higher than for coastal states. Even during the time of the Silk Road, trade routes in Central Asia were predominantly latitudinal, in the east-west direction. Building new north-south transportation links is a historic opportunity for Central Asia. This is an opportunity to become the continent’s transport hub, unlock new production niches and improve conditions for foreign trade, especially with West and South Asia.” The EDB concludes that given the limited investment opportunities facing most developing countries in Eurasia, a key area of cooperation to develop transport links in Eurasia is boosting the number of projects attractive to international development banks and private investors. This includes projects implemented...