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

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Irrigation

Kazakhstan to Modernize Irrigation Sector with $5.3 Million EDB Grant

Kazakhstan’s Ministry of Water Resources and Irrigation, the United Nations Development Programme (UNDP), and the Eurasian Development Bank (EDB) have launched a new joint initiative aimed at modernizing the country’s irrigation sector. Titled “Developing a Business Ecosystem for Sustainable Irrigation in Kazakhstan,” the project is supported by a $5.3 million grant from the EDB and implemented in partnership with UNDP. The agreement was signed by Minister of Water Resources and Irrigation Nurzhan Nurzhigitov, UNDP Resident Representative Katarzyna Wawiernia, and EDB Deputy Chairman Ruslan Dalenov. Boosting Climate Resilience and Water Efficiency The multi-year initiative focuses on strengthening Kazakhstan’s resilience to climate change by improving irrigation management. Key components include establishing a National Water Resources Information System, deploying forecasting and water distribution tools, creating regional centers for modern irrigation, training specialists, and promoting water-saving technologies nationwide. Nurzhigitov emphasized that the project aligns with Kazakhstan’s broader strategic goals for climate adaptation and water sector reform. “For us, participation in this project means achieving strategic goals to modernize the water sector and increase resilience to climate change. We are actively working to attract investment in the water sector, but all strategic decisions are and will be made exclusively in Kazakhstan. Transferring water resources or facilities to foreign countries has never been considered. Our goal is to modernize the water sector to protect the interests of our citizens and ensure security and sustainable development,” he stated. Expanding Water-Saving Irrigation Kazakhstan has steadily increased the use of water-efficient irrigation technologies such as drip and sprinkler systems to reduce agricultural water consumption. Since 2024, the government has raised subsidies for farmers adopting these technologies. Reimbursement rates for drilling underground water wells and installing modern systems have increased from 50% to 80%. As a result, the area equipped with water-saving irrigation expanded from 312,200 hectares in 2023 to 580,000 hectares in 2025, representing 30% of the country’s total irrigated farmland. By 2030, the government aims to extend modern irrigation systems to 1.3 million hectares, covering 70% of all irrigated land in Kazakhstan.

EDB and Tajikistan Expand Cooperation in AI and Digital Technologies

Tajikistan is accelerating the digitalization of its economy through new partnerships aimed at advancing AI and related technologies. The country’s Ministry of Industry and New Technologies has signed a memorandum of cooperation with the Eurasian Development Bank’s Digital Initiatives Fund (EDB DIF), focusing on AI and digital transformation. The agreement was formalized in Dushanbe during the AI Conf 2025 international conference. It outlines joint innovation projects, knowledge exchange, and capacity building in the field of AI. Key areas of cooperation include integrating AI into public administration, developing a multimodal large language model (LLM), and advancing initiatives in energy efficiency and cybersecurity. “An Artificial Intelligence Council has been established under the ministry to supervise major national projects,” said Dauren Rakhimzhanov, Managing Director of the EDB's Digital Initiatives Directorate. “Under the new memorandum, we will jointly develop AI technologies, exchange expertise, and expand the portfolio of digital projects in the Republic of Tajikistan.” The agreement also grants Tajikistan access to the EDB DIF’s financial and technical resources, including grant programs designed to support digital solutions with cross-border integration potential and technology sharing among member states. One of the first joint projects is the creation of the “Electronic Map of Dushanbe,” a digital platform that will underpin broader smart city development. The EDB signed a grant financing agreement for this project with the state unitary enterprise “Smart City” on September 24, 2025. Alexander Petrov, Director of the EDB Digital Initiatives Directorate, emphasized the importance of international collaboration in developing AI. “Strengthening cooperation in AI is essential, not only among EDB member states but also with global institutions,” Petrov said. “These projects facilitate knowledge exchange and contribute to building a resilient digital ecosystem.” According to Petrov, Kazakhstan, Kyrgyzstan, and other countries in the region have already shown interest in joining similar initiatives. He noted that such programs represent a step toward deeper economic integration across the Eurasian region.

Agriculture

Central Asia Loses 14 Million Tons of Crops Annually Due to Poor Storage Infrastructure

Each year, approximately 14 million tons of agricultural products are lost across Central Asia due to inadequate storage infrastructure, according to a recent analytical report from the Eurasian Development Bank (EDB). In Kyrgyzstan, Tajikistan, and Uzbekistan, so-called “dry warehouses” remain the norm. A significant share of produce is stored in facilities lacking the conditions necessary for long-term preservation. As a result, large volumes of crops spoil annually, especially during seasonal peaks. The EDB notes that Eurasian countries are entering a new logistics phase. The rapid growth of e-commerce and retail expansion is generating unprecedented demand for modern warehouse infrastructure. According to the bank’s projections, total demand for warehouse space in the region will double by 2040, surpassing 120 million square meters. Between 2020 and 2024, the region’s total warehouse space increased from 48 to 58 million square meters. Russia remains the dominant player, with around 53 million square meters of commercial and logistics space. Central Asian countries, however, continue to lag far behind. Crop losses peak during the autumn harvest and spring sales of residual stock. During these times, buffer storage and efficient transport logistics are critical. Without these, “farmers are forced to sell surpluses at the lowest price or throw them away,” EDB analysts warn. Experts identify the warehouse sector as a key driver of trade growth in Eurasia. Realizing this potential, however, will require coordinated action among governments, businesses, and international institutions. The report emphasizes the need for a unified institutional environment to enhance investment appeal and market transparency. “The region, which has long remained on the periphery of global logistics flows, is now shaping a new map of Eurasian logistics. In the coming years, the market will remain highly dynamic: more than 20 million square meters of new warehouse space is planned for commissioning, including 1.6 million square meters in Central Asian countries,” the report states. Kyrgyzstan serves as a case in point. In 2020, amid the COVID-19 pandemic, agriculture was the country’s only growing sector. Yet farmers struggled with oversupply, cabbage, in particular, had to be fed to livestock or discarded due to a lack of buyers and storage facilities. A similar situation unfolded with potatoes.

Recycling

Kyrgyzstan to Launch Program for Recycled Resources Market

Kyrgyzstan’s Ministry of Natural Resources, Ecology, and Technical Supervision, supported by the Russian-Kyrgyz Development Fund (RKDF) and the Eurasian Development Bank (EDB), has signed a trilateral agreement to develop a national program for establishing a recycled resources market. The agreement was formalized in Bishkek. According to the ministry, the initiative aims to support the creation of a modern waste management system based on green economy principles and more efficient use of raw materials. The RKDF and EDB will provide financing and expert support for drafting the program. The forthcoming plan will include pilot projects integrating recycled materials into economic activity, improvements to recycling infrastructure and supply chains, and incentives to encourage businesses to increase the use of secondary raw materials. Minister of Natural Resources Meder Mashiev emphasized that building a recycled resources market is key to transitioning toward a circular economy. He added that international support would help integrate secondary materials into production and unlock new business opportunities. RKDF Chairman Artem Novikov noted that the final program would serve as a tool to stimulate recycling, attract investment, and bolster the country’s climate resilience efforts. The agreement underscores Kyrgyzstan’s growing cooperation with international financial institutions in the field of environmental development.

Economy

Investment in Kyrgyzstan’s Economy Rises by 20 Percent

In the first eight months of 2025, several sectors of Kyrgyzstan’s economy experienced substantial growth, particularly in finance, manufacturing, hospitality, and food services. According to the National Statistical Committee of Kyrgyzstan, domestic investment surged most notably in the hospitality and food service sectors, which saw a 170 percent increase. The manufacturing sector reported a 110 percent rise, driven largely by state funding for new industrial facilities. Officials emphasized that the primary sources of investment were allocations from the state budget and enterprises’ internal funds. “The implementation of government investment programs is creating conditions for accelerating growth in sectors such as construction, transport, energy, and irrigation,” the Ministry of Finance of Kyrgyzstan stated. Foreign investment was concentrated in financial intermediation and insurance, particularly in Bishkek. Between January and July 2025, nearly $94 million was invested in this sector, an 80 percent increase. Finance and insurance accounted for 40 percent of all foreign investment received by Kyrgyzstan during this period. The Eurasian Development Bank (EDB) also released its analysis of investment trends in Kyrgyzstan. According to EDB analysts, the country achieved double-digit economic growth this year, largely due to increased investment in industry, transport, and construction. Kyrgyzstan’s GDP expanded by 11.5 percent between January and July 2025. “Investment growth is driven both by domestic resources and external financing, including foreign direct investment. This demonstrates the region’s strong adaptability to the new realities of the global economy,” said EDB Chief Economist Evgeny Vinokurov.

Hydropower

EDB to Fund Feasibility Study for Kyrgyz Hydropower Cascade

On September 18, the Eurasian Development Bank (EDB) and Orta Asya Investment Holding signed an agreement to develop a feasibility study for the Suusamyr-Kokomeren hydropower plant cascade project in Kyrgyzstan. The study will be financed by the EDB, a multilateral development bank headquartered in Almaty that invests across its member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. This agreement builds on earlier investment deals between Kyrgyzstan and Central Asian Investment Holding, a subsidiary of Turkey’s İhlas Holding, to develop both the Kokomeren and Kazarman cascades. With a combined capacity of 2,217 MW, these agreements were signed on August 11 by Kyrgyz Energy Minister Taalaibek Ibraev and Ahmet Mücahid Ören, Chairman of İhlas Holding’s Board of Directors. These projects are considered strategically important for both Kyrgyzstan and the broader Central Asian region, with planned investments exceeding $6 billion. Once completed, they are expected to increase Kyrgyzstan’s electricity generation capacity by more than 50%, meeting rising domestic demand and enabling future electricity exports. The Kokomeren River cascade will include three hydroelectric plants with a combined capacity of 1,305 MW: Karakol HPP - 33 MW Kokomeren-1 HPP - 360 MW Kokomeren-2 HPP - 912 MW Under the terms of the agreements, Central Asian Investment Holding will operate the plants for 20 years, with Kyrgyzstan guaranteeing the purchase of the electricity generated. İhlas Holding, through its subsidiary, is also developing a 250 MW natural gas-fired combined heat and power plant (CHPP-2) in Bishkek. Scheduled for commissioning in 2028, CHPP-2 is expected to enhance the capital’s heating and electricity supply while reducing reliance on the aging coal-fired Thermal Power Plant, currently the city’s primary energy source. The parallel development of hydropower and cleaner thermal energy projects is seen as central to Kyrgyzstan’s energy transition, offering both economic benefits and improved environmental outcomes.