Investments - The Times Of Central Asia

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Uzbekistan Builds a Religious School in Afghanistan

TOLOnews is reporting that Uzbekistan has agreed to finance the construction of a religious school in the Afghan city of Mazar-i-Sharif. The school, which will be built on sixty acres of land and will cost $6 million, is intended for one thousand pupils. The Consul General of Uzbekistan in Mazar-i-Sharif, Furqat Nazarov, said that the school is being built at the request of the governor of Afghanistan's Balkh province. Nazarov added: “We have allocated one year for this project, and it will be completed by then.” Balkh's Deputy Governor Nurul Hadi Abu Idris commented: “This is a sign of the coordination of the Islamic Ummah. Unity among Muslims is increasing daily.” Afghan officials consider Uzbekistan's establishment of this school to be a practical step in strengthening relations between the two countries. Abdul Jalil Shaheedkhil, the head of Balkh province's education department, said: “The establishment of this school, God willing, will further strengthen relations between Afghanistan and Uzbekistan.” Zabihullah Noorani, the head of information and culture in Balkh, said: “This will be the largest school in Afghanistan, and it will improve our education sector.” The Consul General of Uzbekistan in Mazar-i-Sharif promised to strengthen ties with Afghanistan, and added that Uzbekistan would soon resume providing education and business visas for Afghan citizens. Uzbekistan and Afghanistan are developing their trade relations. This year there are opportunities to increase the volume of mutual trade to $1 billion and, soon after, to $3 billion. Uzbekistan has also finished repairing the Naibabad railway station in Afghanistan.

Interview International Cooperation Bilateral Relations Politics US Investments

U.S. Ambassador to Kazakhstan: We Never Make Kazakhstan Choose Between “Us Or Them”

In an interview with the KazTAG agency, U.S. Ambassador to Kazakhstan Daniel Rosenblum discussed relations between the U.S. and Kazakhstan. In the two years since his appointment, Rosenblum noted significant progress in developing diplomatic and economic ties between the countries. In particular, he emphasized the importance of Kazakhstani President Kassym-Jomart Tokayev's visit to New York for the C5+1 platform summit, as well as the visits of the U.S. Secretary of State to Kazakhstan and the Kazakhstani Foreign Minister to the United States. Rosenblum also highlighted key support programs initiated by the U.S. in Kazakhstan, including USAID projects to resolve commercial disputes and decentralize public administration. These initiatives help strengthen the business environment and increase foreign investors' confidence in Kazakhstan, which, he said, helps attract more investment. Economic relations between the U.S. and Kazakhstan have shown steady growth, with trade exceeding $4 billion in 2023, a 30% increase over the previous year. The U.S. remains one of the largest investors in Kazakhstan, second only to the Netherlands. In recent years, U.S. companies have shown interest in new sectors, including transportation and critical minerals. For example, Wabtec has invested in locomotive production in Kazakhstan, and Pepsi Co. has invested $160 million to build a plant to produce potato chips and other snacks in Almaty region. The ambassador also discussed democratization and human rights, noting positive developments in Kazakhstan, such as the establishment of the Constitutional Court, and the expanded role of the ombudsman institution. He emphasized that Kazakhstan has worked to improve freedom of speech, assembly, and fair elections. On security issues, the ambassador reiterated the U.S.' commitment to protecting Kazakhstan's independence and sovereignty. He emphasized the importance of joint exercises and programs to strengthen defense and law and order in Kazakhstan. Regarding sanctions against Russia, Rosenblum said that the U.S. respects President Tokayev's position of adhering to international sanctions but does not apply its sanctions against Russia. The U.S. is engaging with the Kazakh government to minimize the impact of these sanctions on the country's economy and to find alternative markets for Kazakh goods. "We know that Kazakhstan needs to maintain good relations with its neighbors. It is natural to have positive trade relations and other types of relations to ensure peace and stability. We recognize and respect that it is not only the right but probably the duty of Kazakhstan to maintain such relations. We never put Kazakhstan before "either us or them" situations; we do not have such an approach to relations. Kazakhstan pursues a multi-vector policy, and we count on being one of the right vectors," the ambassador said. U.S. policy toward Kazakhstan is unlikely to change significantly, even if a Republican president wins the next U.S. election, Rosenblum said. The basic principles of supporting sovereignty and stability in Central Asia will remain unchanged, regardless of the political administration in Washington.

Hydro power Rogun HPP World Bank Industry Economy Energy Investments Finance

World Bank Considers Loan for Tajikistan’s Rogun Hydropower Plant

Tajikistan's Deputy Minister for Finance, Yusuf Majidi, has announced that the World Bank will consider financing the development of the Rogun hydroelectric power plant. According to him, the bank can allocate $650 million for this project in September this year. $250 million has been allocated as preferential loans; starting in 2025, the station's construction will be financed by other investments. Majidi specified that the construction of the hydroelectric power plant (HPP) is also financed by the Islamic Development Bank and Arab funds; according to preliminary data, this is about $550 million. When the Rogun HPP reaches full capacity, about 70% of the electricity produced will be exported to other Central Asian countries. According to the Eurasian Fund for Stabilization and Development (EFSD), financing the Rogun HPP is one of the main risks to Tajikistan’s budget and debt sustainability. The EFSD notes that a possible increase in the cost of hydropower construction could reduce funding for other critical infrastructure projects and social spending. Rogun is located 110km from Dushanbe on the Vakhsh River, and is the largest in the region. Its construction began in 1976, but it was destroyed after the collapse of the USSR. Later, Tajikistan continued work on the construction of hydroelectric power plants at its own expense and with the help of international funds and organizations, and so far, two of the six units with a capacity of 600 MW provided for in the project have been put into operation. The third is scheduled for 2025.

Finance Investments Central Asia Security Economy SCO Shanghai organization

SCO Opens Foreign Exchange Alliance for Yuan, Tenge, and Ruble

The Shanghai Cooperation Organization (SCO) has instigated an Alliance of Currency Transactions to increase the share of settlements in national currencies—the Kazakh tenge, the Russian ruble, and the Chinese yuan—in mutual trade between SCO member states. The main goal of the initiative, launched in Qingdao based on the Demonstration Zone of Regional Trade and Economic Cooperation within the framework of the SCO Capital Park, is to reduce dependence on the US dollar and the euro in international settlements and in turn, strengthen the economic independence of the organization's member countries and increase the stability of their financial systems. In addition, the Alliance will help simplify currency transactions, accelerate cross-border payments, and create a more transparent and efficient financial infrastructure between the SCO member countries. The initiative reflects the general move towards strengthening economic cooperation within the organization, including China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan, India, Pakistan, Iran, and Belarus. As previously reported, the SCO states are increasing the use of national currencies in mutual settlements. The creation of the Alliance was a step in the development of regional financial integration, and its launch underscores the growing interest of SCO countries in using their currencies in foreign economic activity.

Finance Investments EBRD Export/Import Economy Strategy Industry Critical Minerals

EBRD Supports Kazakhstan’s Critical Raw Materials Sector

The European Bank for Reconstruction and Development (EBRD) says it is making its first direct equity investment in the graphite and critical raw materials sector in Central Asia by acquiring a stake in Sarytogan Graphite Limited, an Australian Securities Exchange-listed company involved in the exploration of the Sarytogan graphite deposit in the Karaganda region of central Kazakhstan. The EBRD’s investment of AUD 5 million (€3 million), representing a 17.36% shareholding in the company, and will finance Sarytogan Graphite’s development program, including preparing a feasibility study and meeting its working capital needs. According to the EU's critical raw materials (CRM) classification, graphite is a CRM mineral with a wide range of applications. It is used for producing electric vehicle batteries, the electric power industry, and metallurgy. The Sarytogan graphite deposit is one of the largest known graphite deposits in the world, with the potential to become one of the main suppliers of natural graphite in the region and beyond. The project aligns with the EU-Kazakhstan strategic partnership on raw materials, batteries, and renewable hydrogen. According to the country's Ministry of Industry and Construction, Kazakhstan produces 19 of the 34 critical raw materials listed by the European Union. Kazakhstani manufacturers currently supply the European market with metal and chemical products, including beryllium, tantalum, titanium, phosphorus, and ammonium metavanadate. Kazakhstan is among the world’s ten largest copper producers. It has the potential to produce battery raw materials such as nickel, cobalt, manganese, and lithium, which are essential for producing electric vehicles.

Finance Investments Energy Central Asia Security Strategy Electricity supply

Kyrgyzstan and Tajikistan to Test Facilities Prior to Launch of CASA-1000

On August 9, Ministers of Energy of Kyrgyzstan and Tajikistan agreed to a plan to test overhead lines, transformers, and substations prior to launching the Central Asia-South Asia (CASA-1000) electricity transmission project, scheduled for completion by the end of 2024. The construction of a 500 kV transmission line with a length of 456 kilometers is now nearing completion in Kyrgyzstan. All of the supports have been installed and 428 km of the 456 km of the transmission line have been strung. The remaining section will be finished before the end of August 2024. The CASA-1000 project aims to connect the energy systems Kyrgyzstan and Tajikistan with those of Afghanistan and Pakistan and through the new infrastructure, transport 1,300 megawatts of surplus electricity from Central Asia to high-demand electricity markets in South Asia. With spring and summer rainfall and significant water flow from the mountains, hydropower-rich Kyrgyzstan and Tajikistan produce surplus electricity during the summer. At the same time, neighboring South Asia, Afghanistan and Pakistan experience chronic electricity shortages, especially during the summer months. By connecting the four countries through a shared electricity transmission system, Kyrgyzstan and Tajikistan can sell clean hydropower-produced surplus electricity in the summer months to Afghanistan and Pakistan.