Investment - The Times Of Central Asia

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Eurasian Fund for Stability and Development to Fund Renovation of Tajikistan’s Roads

The Eurasian Fund for Stabilization and Development (EFSD) has announced that it will allocate funds to renovate Tajikistan's main roads. The work will involve construction of 51 anti-avalanche galleries, extending to over 5,200 meters, in vulnerable sections of Tajikistan’s highways. Established in 2009 to operate in Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan, the EFSD promotes economic and financial stability in these countries to support their sustainable development. The Times of Central Asia has previously reported that the EFSD's financing of the Rogun hydroelectric power plant is one of the main risks to Tajikistan’s budget and debt sustainability. Analysts from the fund have emphasized that “in the face of uncertainty regarding funding sources, starting in 2025, the government of Tajikistan may have additional needs for budgetary support from international financial organizations.”

Finance Industry Armed Forces Defense Investment

Tajikistan Intends To Expand Production of Armored Vehicles and Special Equipment

Tajikistan's Sipar Group plans to significantly expand the production of armored vehicles and special equipment at its plant in the city of Tursunzade. The project is being implemented with a foreign investment of $15 million, allowing the company to produce 17 types of special vehicles. The plant is already actively developing its production capacity. The enterprise assembles military and civilian vehicles using components from the United Arab Emirates. Tajikistan's Minister of Industry and New Technologies, Sherali Kabir, said that armored vehicles in Tursunzade are manufactured using Canadian technologies; therefore, they are in no way inferior to their counterparts produced in other Central Asian countries. So far, the plant has produced a limited volume of vehicles, but given the demand, it plans to increase its production capacity significantly in the coming years. The project will also create more than a hundred new jobs, which will make an important contribution to the region's economic development. The plant's products are aimed not only at the domestic market, but also with the possibility of exporting to other Central Asian countries in mind, which would allow Tajikistan to strengthen its position in the international arena in the defense industry.

Foreign Investment US Investment Financial Market

U.S. Companies Seek Export Opportunities in Uzbekistan

According to a recent report, the U.S. State Department is in regular receipt of applications from U.S. companies in search of opportunities to export their products to Uzbekistan's markets. “Our products likewise require review and certification for import into Uzbekistan, so expediting that process would help U.S. agricultural and livestock products reach Uzbek consumers. U.S. suppliers of technologies, industrial equipment, and manufactured goods are also actively bidding on public procurement opportunities and working with partners in Uzbekistan,” explained a spokesperson for the department. The USA's readiness to help Uzbekistan implement the announced reform program, including economic issues was noted. Referencing the significant improvements in the investment climate created by recent economic reforms and the potential of further reforms to attract more investment and technical expertise to Uzbekistan, the department emphasized: “Generally speaking, we welcome and encourage multilateral efforts to support regional connectivity in Central Asia and the South Caucasus westward to Europe. Such efforts create a more secure, resilient, and prosperous region.” The U.S. State Department also noted that through the regional trade activities of the U.S. Agency for International Development (USAID) in Central Asia, the US is helping to increase the competitiveness of trade, entrepreneurship, e-commerce, and the private sector. As stated in the report, “Through the Partnership for Global Infrastructure, the U.S. is currently evaluating potential areas for infrastructure investment where it could contribute project advisory technical assistance, project preparation, and financing to tangibly move forward strategic projects in the Trans-Caspian International Transport Route.”

Tailand Thailand Investment Economic Cooperation Finance

Thai Company to Build Fish-Processing Plant in Kazakhstan

The Thai company Sea Value Plc. plans to build a plant in Kazakhstan to produce canned, processed fish, and frozen semi-finished products. The project was discussed during a meeting on August 14 in Astana between the Chairman of the Investment Committee of the Ministry of Foreign Affairs of Kazakhstan, Gabidulla Ospankulov, and the President of Sea Value, Dr. Poj Aramwattananont. As reported by the company Kazakh Invest, Sea Value is currently searching for a plot of land to start the project. Local fisheries are planned to supply fish for the new production, and the finished products will be exported to Thailand and other countries. The Thai company plans to invest $6 million in the construction of the plant, which will produce 3-5 tons of fish products per day. Sea Value is Thailand's second-largest producer of canned tuna, exporting products to 150 countries. In 2023, trade turnover between Kazakhstan and Thailand increased by almost 36%, reaching $367 million.

Finance ADB Investment HPP

ADB Grants $71 million for Business Reforms and HPP Reconstruction in Tajikistan

As reported by the Avesta Information Agency, Minister of Finance of Tajikistan, Faiziddin Kahkhorzade, and Shani Campbell, the permanent representative of the Asian Development Bank (ADB) in the country, have signed contracts for two grants totaling $71 million. The first grant of $50 million is aimed at improving Tajikistan's business environment, including digitization, reforms to boost exports, improved infrastructure management, and increased financial transparency. Small and medium-sized enterprises will also be supported in adapting to climate change. The second grant of $21 million will replace the fourth unit at the Head HPP located near the city of Levakant (formerly Sarband) in Tajikistan's Khatlon region, which failed in 2019. As a result of the upgrade, the installed capacity of hydropower is expected to increase from 240 megawatts in 2012 to 274 megawatts by 2026. Since Tajikistan became a member of the ADB in 1998, the bank has provided more than $2.6 billion in assistance to the country, including more than $2 billion in grants. These funds were directed to the development of transport and energy infrastructure, healthcare, education, agriculture, and other important sectors of the economy.

Investment Water Management Access to Clean Water EDB

Central Asia Needs $12 Billion to Secure Drinking Water

According to the new research paper “Drinking Water Supply and Sanitation in Central Asia” released by the Eurasian Development Bank (EDB), almost 10 million people, or 14% of the population, have poor access to safe drinking water in Central Asia. Water withdrawals for drinking and domestic use increased twofold to reach 8.6 km3 between 1994 and 2020. Investment in its supply infrastructure, however, failed to match growth in consumption. It is estimated that as much as 80% of the region’s water and sanitation equipment is no longer fit for purpose. In addition, physical and commercial water losses in distribution networks can be as high as 55%. The EDB research paper highlights a clear lack of financial support for plans adopted by Central Asia to develop the sector, and forecasts a deficit of over $12 billion, or around $2 billion per year, between 2025-30. The largest shortfall is expected in Uzbekistan, estimated at $826 million per year, or almost $5 billion between 2025–30. A large shortfall is also projected for Kazakhstan at $700 million per year, or $4.2 billion from 2025–30. In Tajikistan, the shortfall will also be significant, given the size of the country’s economy, reaching $209 million per year, or more than $1.2 billion from 2025–30. To address the issue, the EDB paper outlines three solutions that could help Central Asian countries raise the required investment capital. First, the funding gap can be reduced by attracting finance from international financial institutions (IFIs), multilateral development banks, and development agencies. The water and sanitation sector in Central Asia currently accounts for only 6% of total IFI-approved sovereign funding provided to the region CA, with 147 projects valued at $4 billion (out of a total of $67.5 billion) completed from 2008–2023. Concerted efforts are required to improve the appeal of investment in the sector to attract more active involvement by IFIs. With the emergence of a new, favourable institutional environment and the arrival of private players, the potential of the corporate investment becomes significant. Secondly, to attract the much-needed finance from private investors and major players, the CA water and sanitation sector must not only modify the ownership and governance structure, but also create conditions conducive to the effective development of market relations. Regarding the above, Evgeny Vinokurov, EDB Chief Economist, stated, “The strengthening of public-private partnership institutions can be of great help. With PPPs active in the water sector, state and private structures will be able to cooperate in a more productive fashion. Expansion of the water sector services market will boost competitiveness and improve the operating efficiency of individual companies. The presence of strong PPP institutions is likely to encourage private operators to join water sector projects. The advent of private players will help the CA countries to attract investments and gain access to innovations, technologies, and experience required to modernise the sector.” Thirdly, improving the tariff system is becoming increasingly compelling. Water tariffs in the region are extremely low and could therefore be raised to improve the financial sustainability...