Investment - The Times Of Central Asia

Viewing results 1 - 6 of 20

Kazakhstan Hosts Meeting of Council of Foreign Investors

Astana's Palace of Independence hosted the 36th meeting of the Foreign Investors Council. Kazakhstan's President Kassym-Jomart Tokayev and Prime Minister Olzhas Bektenov attended the event. This year's central theme was “Kazakhstan's New Investment Cycle.” The meeting discussed strategies for the new investment cycle and the development of Kazakhstan's attractiveness to investors. Citing data from the International Institute for Management Development (IMD), Tokayev emphasized that Kazakhstan has become one of the world's top 35 competitive countries. “We set ourselves a rather ambitious goal: to attract $150 billion of foreign direct investment by 2029. To realize this goal, the Investment Headquarters under the Government is endowed with expanded powers to solve emerging problems promptly,” said the president. Tokayev noted the merits of international oil companies, which have played an essential role in the country's development. “Foreign investors have invested capital and provided advanced technologies and highly skilled labor. Their investments have contributed to the growth of our energy industry: over the past 30 years, oil production has tripled. Thanks to this, Kazakhstan has become one of the five countries with the highest oil production growth rates. Speaking about the future, we set a goal to overcome the threshold of 100 million tons per year,” he said. The meeting focused on increasing investment attractiveness in the “clean energy” sector. Specific agreements were reached with world companies such as Total, Svevind, ACWA Power, and Masdar on realizing 43 GW of “green” projects in Kazakhstan. In addition, Kazakhstan has a vast potential for developing nuclear energy, so creating an international consortium to realize the NPP construction project is under consideration. Kazakhstan focuses on the work of the Astana International Financial Center to strengthen cooperation in the financial sector. Tokayev spoke of the importance of continuing the dialog between the Council members and government agencies to improve the country's investment climate and implement new initiatives and specific projects. The meeting also included Odile Renaud-Basso, President of the EBRD; Nurlan Dosymbekov, Deputy Prime Minister and Minister of National Economy; Zhang Daowei, Chairman of the Board of the Kazakh Association “Baibazarov” and the Yerstanign Investors; Nikolai Podguzov, chairman of the EDB; Andrew Deleoni, president of Alstom for Africa, the Middle East, and Central Asia; and Vadim Vorobyov, Chief Executive Officer of PJSC Lukoil. Established in 1998, the Council of Foreign Investors is a platform for foreign investors and the government of Kazakhstan to discuss strategic objectives and find solutions to improve the business climate. From the Kazakhstani side, the Council is attended by government members and heads of several national companies and development institutions. Foreign participants include representatives of major international corporations and organizations, underscoring the global interest in investing in Kazakhstan. Last year's 35th Plenary Meeting of the Foreign Investors Council was also chaired by President Tokayev. The main topic of the meeting was “Digital Transformation of the Economy.” At the time, Tokayev emphasized that digitalization is a tremendous technological breakthrough and opportunity. The growth of digitalization is already dramatically impacting economic development and changing the game's...

Construction Government Investment Projects Infrastructure Development Investment

Chinese Investors to Build New Industrial Plants and Residential Compound in Kyrgyzstan’s Naryn

On October 25, Chinese investors launched the construction of four extensive production facilities in Kyrgyzstan's Naryn region: a car assembly plant, an LED lamp manufacturing plant, a toilet paper and napkin plant, and an agricultural drone manufacturing plant. At a capsule-laying ceremony, Akylbek Japarov, Chairman of the Cabinet of Ministers of Kyrgyzstan, emphasized that this event proves that Kyrgyzstan has reached “a new, higher level of relations” with its neighbor. Chinese partners will invest $130 million in the Naryn-Shumkar car assembly plant, which will manufacture more than 20,000 cars annually and create 1,000 jobs. $10 million will be invested in the LED lamp plant, which will produce 30 million lamps per year and create about 200 jobs. Another $10 million will be invested in the toilet paper and napkin plant, which will produce 6,000 tons of paper annually and create more than 100 jobs. On the same day, Japarov attended a ceremony to begin the construction of a new residential compound, Tien Shan City, in the town of Naryn. The residential compound will consist of six 10-storey apartment blocks. The developer, a construction company from the Chinese city of Kashgar, plans to complete high-quality modern housing construction within a year. The company will also build an administration house for all government services for the local population.

International investment Investment Oligarchs Economy Finance

Warren Buffett’s Companies Expand Investment in Uzbekistan

Uz500, a wealth advisory and private sector development organization focused on Uzbekistan, Eurasia, and the wider Global South, is to analyse direct foreign investments in Uzbekistan, starting with billionaire Warren Buffett. Since 1965, Buffett has transformed Berkshire Hathaway into a trillion-dollar company, primarily investing in American businesses. Currently, Berkshire owns stakes in eight non-US companies, including five major Japanese firms and China's BYD. Notably, half of these companies have expanded their presence in Uzbekistan, launching major energy, infrastructure, and manufacturing projects. Last month, the Sumitomo Corporation announced its agreement to acquire a 49% stake in several renewable energy assets in Uzbekistan from ACWA Power, a company listed in Saudi Arabia. Through this ACWA-Sumitomo partnership, they aim to develop 2.5 GW of renewable energy (solar and wind) and 968 MW of battery storage capacity in Uzbekistan, with a total investment of $4.2 billion. In August 2024, an international consortium of TAQA Water Solutions, Marubeni, and SUEZ signed a $1 billion joint development agreement with the Government of Uzbekistan to build the CIS region’s largest wastewater treatment facility in Tashkent. Meanwhile, Mitsubishi’s advanced power equipment is responsible for 90% of Uzbekistan’s large-scale gas-fired generation, including Navoi 1, 2, and 3 and the $2.5 billion Sirdarya 1 and 2 combined-cycle gas turbine (CCGT) power projects. The first EVs were produced at the BYD Uzbekistan JV plant in June 2024. While the world’s largest EV maker announced or started building its plants in Thailand, Brazil, Turkey, and Hungary, BYD Uzbekistan became BYD’s first operational overseas plant. Uz500 predicts that Japanese companies Itochu and Mitsui, part of Berkshire Hathaway’s portfolio, will follow their peers and invest in Uzbekistan, the region's fastest-growing economy. Their investments could include acquiring renewable energy or infrastructure assets from ACWA Power or Masdar or forming joint ventures to develop uranium and mineral resources. Mitsubishi, Sumitomo, and Marubeni are also expected to increase their investments through more projects and acquisitions. As a result, Berkshire’s indirect investment in Uzbekistan (already worth several hundred million dollars) is likely to grow significantly in the coming years.

Waste Recycling Investment Environment Green economy

Kazakhstan Recycles 24% of Waste It Produces

Deputy Minister of Ecology and Natural Resources Zhomart Aliyev said at the VIII Eurasian Business Forum "Green Energy & Waste Recycling" in Astana on October 3 that in 2023, 4.1 million tons of municipal waste were produced across Kazakhstan, and only 24% of that volume was recycled. According to Aliyev, unauthorized landfills remain a big problem. A total of 4,868 such landfills have been identified, and only 32% of them have been recycled. As of 2023, only 624 out of Kazakhstan's 3,016 solid waste landfills met all the environmental requirements. The government has approved 94 investment projects to construct waste processing plants in Kazakhstan, which is expected to increase the country’s municipal waste processing from 1 million to 2.2 million tons annually. The government has also approved a resolution on preferential financing for the construction of waste sorting and recycling plants and a plan to modernize existing solid waste landfills. The government has also drafted a Concept for the Development of Environmental Culture for 2024-2029, which aims to raise public awareness of proper waste management.

Power generation Hydro power Energy Kambarata Investment World Bank

A Model of Cooperation: Kyrgyzstan Selecting Dam Type for Kambarata-1 Hydropower Plant

On September 4, in Bishkek, Kyrgyzstan’s Cabinet of Ministers and the World Bank organized a roundtable on dam type selection for the country’s flagship Kambarata-1 Hydropower Plant (HPP). As the Kyrgyz Ministry of Energy reported, Swiss engineering company AFRY presented possible dam types for the flagship energy project at the meeting. A feasibility study will be prepared by May 2025 based on the type of dam chosen. According to Maksudjon Safarov, Senior Energy Specialist with the World Bank, the institution is financing comprehensive preparations for the Kambarata-1 HPP's construction. “The Swiss company AFRY is preparing the project’s feasibility study, with world-class experts involved in the work to ensure that the project is efficient, environmentally friendly, and sustainable," Safarov stated. The Kambarata-1 HPP will be situated in the upper reaches of the Naryn River in Kyrgyzstan. Its installed capacity will be 1,860 megawatts, with an average annual generation of 5.6 billion kilowatt-hours of electricity. The preliminary construction cost for the project is more than $4 billion. At the roundtable, Deputy Chairman of the Kyrgyz Cabinet of Ministers, Bakyt Torobayev, emphasized that time is critical in developing the Kambarata-1 HPP. “As part of the construction, trilateral agreements were signed between the Ministries of Energy of the Kyrgyz Republic, the Republic of Kazakhstan, and the Republic of Uzbekistan. This is a unique case when three countries in the region come to a common understanding and support for the project. We are confident that joint work will create a high-quality project to provide Central Asia with clean and renewable energy, improve water and energy resources, and strengthen regional cooperation." Kyrgyz Energy Minister Taalaibek Ibrayev noted significant progress in the ongoing preparations. “To date, several important works have already been completed. On August 30, the construction of a 1,388-meter transport tunnel was completed. Work is underway to build 15 km of concrete roads. We are working to provide electricity [for the future construction site], with 80% of overhead transmission lines now complete. Completion of a 110 kv power transmission line and a substation is scheduled for the end of 2024. Construction of a bridge across the Naryn River is underway, and at the same time, a workers' camp is being built. All work is going according to plan, and we are confident that all preparatory stages will be completed by next May,” the Minister stated. To support the project, a Donor Coordination Committee for constructing Kambarata-1 HPP was established at the Kyrgyz Republic International Energy Investment Forum, held in Vienna on June 10, 2024. The Committee comprises major international financial institutions and development partners, including the World Bank, the OPEC Fund, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development.

Russia Economy Automobile Industry Investment Economic Cooperation Tatarstan

Turkmenistan and Tatarstan Discuss Trade and Debt Issues

On August 27, at a meeting of the Turkmenistan-Tatarstan joint working group on trade-economic, scientific-technical, and cultural cooperation in Kazan (Republic of Tatarstan, Russian Federation), it was announced that Turkmenistan and Tatarstan's 's trade turnover has increased by 13.4%, amounting to $52.3 million, largely due to the import of products to Turkmenistan. However, the Turkmen Minister of Finance and Economy, Serdar Joraev, stated that this is still two times lower than 2019's numbers. Deputy Prime Minister and Minister of Industry and Trade of Tatarstan, Oleg Korobchenko confirmed the overall decline in trade turnover, with both parties calling for a joint solution. During the meeting, the participants discussed Turkmenistan's debt, which arose due to problems with inter-bank settlements. Whilst both parties stated that this issue is under control and being resolved with the participation of the Central Banks of Turkmenistan and Russia, the total amount of debt remains unreported. Tatarstan companies in the fields of mechanical engineering and oil refining supply equipment and goods in Turkmenistan. In 2020, 852 Kamaz trucks, the second high-speed A145E marine motor ship, and more than $8 million worth of medicines and medical supplies were delivered to Turkmenistan from Tatarstan.