Investments - The Times Of Central Asia

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Investments Tajikistan EBRD Dangara-Guliston road

EBRD and ADB Finance Upgrade of Key Road in Tajikistan

The European Bank for Reconstruction and Development (EBRD) has announced a loan to finance the upgrade and expansion of the Dangara-Guliston road in Tajikistan. Built in the 1930s as part of a major international highway, this road serves as a crucial link between the north and south of the Khatlon region, an area that produces more than 53% of Tajikistan’s agricultural output and is home to 35% of the country’s population. Financing and Project Scope The EBRD’s sovereign loan of up to €38 million will help finance improvements to a 49-kilometer section of the road, including the construction of charging infrastructure for electric vehicles. The Asian Development Bank (ADB) will provide $86.7 million (€83.5 million) in grant financing to support the project. The upgrades will convert the existing single-lane road into a dual-lane highway, significantly improving transportation efficiency and reducing cargo delivery times across the Khatlon region and beyond. Additionally, the upgraded road will feature: Improved lighting Cycle paths Pavements for pedestrians Electric Mobility and Sustainability This will be one of the first roads in Tajikistan equipped with charging stations for electric vehicles (EVs), encouraging wider EV adoption in the country. The EBRD will also provide a technical cooperation grant to develop a national electric mobility action plan, aimed at stimulating public and private investment in sustainable transportation infrastructure across Tajikistan. EBRD's Broader Investment in Tajikistan To date, the EBRD has invested over €1 billion in Tajikistan through 183 projects, supporting key sectors such as infrastructure, energy, and private enterprise development.

Kyrgyzstan Investments English Common Law

Kyrgyzstan Explores English Common Law to Boost Investment Appeal

On March 11, Adylbek Kasymaliyev, Chairman of Kyrgyzstan’s Cabinet of Ministers, met with British Ambassador Nicholas Bowler and a group of international consultants to discuss adopting English common law principles for resolving investment disputes in Kyrgyzstan. English common law is a legal system based on judicial precedents rather than codified statutes. According to the Kyrgyz government’s press service, the meeting focused on establishing an independent arbitration mechanism to handle investment and commercial disputes under English common law. This initiative aims to enhance Kyrgyzstan’s investment appeal and strengthen investor protections, key factors in attracting foreign capital for sustainable economic growth. Discussions also covered potential funding models for consulting and methodological support necessary to implement the initiative successfully. Another key topic was the possible creation of a special investment zone with a distinct legal framework designed to offer more favorable conditions for businesses and investment projects. Kasymaliyev underscored that creating a business-friendly environment and guaranteeing robust legal protections for investors are top priorities for Kyrgyzstan. He stated, “We are keen to study and apply international practices, including English law, to boost investor confidence in our legal system.” Ambassador Bowler reaffirmed the U.K.’s willingness to share its legal expertise to support Kyrgyzstan’s economic development and investment climate. The introduction of English common law principles for resolving investment disputes could improve investor confidence in Kyrgyzstan’s legal framework, ensuring greater predictability and security for foreign investments.

Seed Production Agriculture Investments

Uzbekistan to Invest $200 Million in Seed Production

Uzbekistan is expanding international cooperation in agriculture, with President Shavkat Mirziyoyev reviewing new sector development plans on March 3. The country is implementing agricultural reforms aimed at boosting efficiency through modern technologies and scientific research. Recently, Uzbek experts visited China, Italy, and Japan to study advanced farming practices, leading to new partnerships in the sector. Seed Production: A Key Priority High-quality seed production is essential for increasing crop yields. While Uzbekistan has 14 agricultural research institutes and 55 seed farms, they struggle to develop new seed varieties. As a result, many farmers rely on imported seeds, which are often more effective than local alternatives. To address this issue, Uzbekistan will establish a national seed and nursery system based on China’s agricultural model. The project, to be launched at the Agro-Service Center in Yukorichirchik district, will receive a $200 million investment. It will focus on developing improved varieties of cotton, wheat, rice, corn, grapes, and fruit. Additionally, a model farm will be created, integrating modern equipment and drone technology. Investing in Agricultural Education Developing skilled agricultural professionals is another challenge. Uzbekistan is looking to Italy’s education system as a model, particularly the University of Bologna, which trains specialists for European agriculture. This year, 200 Uzbek students will study at Bologna, Tuscia, Ferrara, and Pisa universities. The University of Tuscia will also offer 30 annual scholarships for Uzbek students. Uzbekistan is further expanding practical training opportunities abroad. Uzbek students have already completed internships in Germany and the UK, while universities in Tashkent and Fergana are establishing Japanese language centers to prepare students for study in Japan. Expanding Global Cooperation Mirziyoyev has called for stronger ties with Hungary, the Netherlands, Canada, Australia, and South Korea. In response, the Ministry of Agriculture is developing new initiatives to introduce innovative agricultural practices across the country.

Social Projects Eurasian Development Bank (EDB) Investments

EDB to Invest in Kazakhstan’s Energy Projects and Polyethylene Plant Construction

The Eurasian Development Bank (EDB) will continue financing strategic energy, transport, and industrial projects in Kazakhstan, with a focus on digital technologies and innovation, according to Nikolai Podguzov, Chairman of the EDB Management Board. Podguzov made the announcement during a meeting with Kazakhstan's Prime Minister Olzhas Bektenov on February 26. The EDB is a multilateral development bank that supports economic and infrastructure projects in its six member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. According to Podguzov, in 2025, the EDB plans to invest in socially significant projects in Kazakhstan, including: Expansion and modernization of combined heat and power plants in the country’s central and eastern regions. Construction of a polyethylene plant. Development of the 545 MW Altyn Dala solar power plant. In 2024, the EDB allocated nearly $1.4 billion to projects in Kazakhstan, bringing its total investment in the country over the past three years to $3.6 billion. This reflects Kazakhstan’s prominent share in the EDB’s investment portfolio. Bektenov reaffirmed Kazakhstan’s interest in deepening cooperation with the EDB, particularly in the energy and utilities sectors. “The Eurasian Development Bank is an important partner for Kazakhstan. Last year, the bank’s investment in our economy grew by nearly 40%, and its loan portfolio in Kazakhstan increased to 63.4% of the bank’s total loan portfolio. We are interested in expanding our cooperation on mutually beneficial terms and unlocking new opportunities in both traditional and emerging areas,” the prime minister stated.

Investments Hydropower Asian Development Bank Rogun HPP

ADB Considers $500 Million Support for Tajikistan’s Rogun Hydropower Plant

The Asian Development Bank (ADB) will continue supporting Tajikistan’s Rogun Hydropower Plant (HPP) project in 2025, the bank’s new country manager, Ko Sakamoto, announced on February 25. Speaking to reporters, Sakamoto emphasized that Rogun HPP is a top priority for the Tajik government, highlighting its significance for Tajikistan’s energy independence, regional stability and climate change mitigation. The ADB has been invited to join a consortium of financial institutions financing the project. Tajikistan has requested $500 million in assistance, and the bank is currently reviewing the proposal. “ADB will continue to support the project and share updates as negotiations progress,” Sakamoto said. In 2024, ADB provided $220 million in assistance to Tajikistan, funding six projects across agriculture, energy, health, public administration and transport. ADB plans to approve four new projects in 2025, including an initiative on digital agriculture aimed at boosting food security. The bank is developing a five-year strategy that will align with Tajikistan’s long-term development goals. It will support glacier protection efforts, as Tajikistan leads regional climate initiatives. An international glacier conservation conference is scheduled for May in Dushanbe. As Tajikistan works toward greater energy security, Rogun remains central to its economic and environmental strategy. ADB’s continued involvement signals strong international backing for the project, which has the potential to transform Tajikistan into a key regional energy exporter. If approved, the $500 million in funding would mark a significant step toward completing one of Central Asia’s most ambitious hydropower projects.

Investments Greenfield projects Investment Trends Eurasian Development Bank (EDB) Central Asia

Central Asia Receives Half of Eurasian Investments from China, Turkey, Iran, and Gulf States

The Eurasian Development Bank (EDB) has released a new study analyzing mutual direct investment (MDI) flows across the Eurasian region. The report examines investment trends between 13 Eurasian countries - Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan - and external partners, including China, Turkey, Iran, and the Gulf states, from 2016 to the first half of 2024. Key Findings on Investment Trends According to the EDB, total MDI stock in the region reached $90.4 billion by mid-2024, reflecting a 6.4% increase from 2023. China remains the largest investor in the Eurasian region, holding an MDI stock of $58.6 billion at the end of H1 2024, accounting for 64.8% of the total. Other major investors include: Turkey - $12.3 billion (13.6%) United Arab Emirates (UAE) - $12.2 billion (13.5%) Iran - $3.2 billion (3.5%) Saudi Arabia - $2.3 billion (2.5%) Qatar - $1.6 billion (1.8%) Among these, Iran showed the highest investment growth, doubling its investments since 2016, with 90% directed toward Azerbaijan. Turkey demonstrated broad sectoral diversification, while Saudi Arabia and Qatar emerged as new investors, making their first investments in 2021 and 2024, respectively. Investment Distribution in Eurasia The largest investment recipients in the Eurasian region include: Russia - $23.5 billion (26%) Turkmenistan - $17.5 billion (12.5%) Kazakhstan - $15.5 billion (11.1%) Mongolia - $10.3 billion (7.4%) Uzbekistan - $8.8 billion (6.3%) Central Asia received 51% of all investments from China, Turkey, Iran, and the Gulf states, totaling $46.2 billion, an increase of 25% since 2022. Outbound Investment from Eurasia The report also highlights outbound investments from the Eurasian region, which totaled $49.4 billion, doubling since 2016. Turkey received 80% of these investments, with a significant portion originating from Russia. Sectoral Trends: Energy, Manufacturing, and Greenfield Investments China continues to expand its investments in energy and manufacturing, although its traditional focus on extractive industries has declined. As of mid-2024, Chinese investment in mining and resource extraction stood at $36.2 billion, comprising 61.7% of its total investments in Eurasia. Other notable sectoral trends include: Energy sector - Chinese investment grew 2.1-fold in 18 months to $4.1 billion, with 85% directed toward Uzbekistan. Manufacturing sector - Investment increased 8% to $11.8 billion, with most projects concentrated in Central Asia. The Gulf states are also expanding their investments in the region: The UAE invested $12.2 billion, with 90% of its projects in Central Asia. Saudi Arabia increased investments from $300 million in 2021 to $2.3 billion in 2024, primarily in Uzbekistan’s power sector. Qatar made its first major investment in Kazakhstan in 2024, committing $1.6 billion to the telecom sector. Rise of Greenfield Investments Greenfield projects - new businesses and infrastructure developments - remain the dominant form of MDI, totaling $57 billion, nearly double the 2016 level. These projects now account for 63% of total investments, driven by the economic growth of Central Asia and increasing investor interest in energy, manufacturing, and extractive industries.