Investments - The Times Of Central Asia

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Rogun Hydropower Plant

Tajikistan Plans Over $1 Billion for Rogun Hydropower Project in 2026

The government of Tajikistan plans to allocate at least 10 billion TJS (more than $1 billion) to finance the Rogun hydropower project in 2026, Finance Minister Faiziddin Qahhorzoda said on February 13 at a press conference in Dushanbe. The statement was later released by the Ministry of Finance and reported by Asia-Plus. Qahhorzoda specified that 8.2 billion TJS has already been earmarked in the state budget for completion of the Rogun hydropower plant. He added that additional financing could be mobilized through development partners, as agreements have been signed and the required domestic procedures and partner conditions have been fulfilled. “Certain conditions had to be met by the government of Tajikistan to access these funds. All conditions have been completed, and financing under the first tranche of $350 million has begun,” the minister said, referring to grant funding from the World Bank. He added that negotiations for an additional $300 million from the institution have been concluded successfully, with the funds expected to become available by mid-year. The minister also stated that domestic procedures are being finalized to attract $150 million from the Islamic Development Bank, as well as $100 million each from the Saudi Fund for Development, the Kuwait Fund for Arab Economic Development, and the OPEC Fund for International Development. According to Qahhorzoda, the remaining step is the completion of tender procedures. In addition, all procedures have reportedly been completed to secure $500 million from the Asian Infrastructure Investment Bank, of which $270 million is expected to be disbursed in the first tranche. According to the Finance Ministry, approximately 11 billion TJS was allocated in 2025 for the completion of Rogun, including 2 billion TJS designated for servicing Eurobonds issued to support the project. Earlier, at the end of January, the Energy Ministry stated during a separate press conference that several financing agreements signed with international partners in 2024-2025 had already entered into force. Officials noted that activating these agreements required fulfilling a number of technical and procedural conditions. The Rogun hydropower plant, located 110 kilometers from Dushanbe on the Vakhsh River, is the largest energy project in Tajikistan. Construction began in 1976 but was suspended following the collapse of the Soviet Union. Work resumed after independence. Of the six planned generating units, each with a capacity of 600 MW, two are currently operational and had produced 9.9 billion kWh of electricity by the end of last year. In December 2025, President Emomali Rahmon announced that the third unit is scheduled to be commissioned in September 2027. Once all six units are operational, the plant’s total installed capacity will reach 3.78 GW, and its 335-meter dam is projected to become the tallest in the world. The total cost of construction has been estimated at $6.2 billion.

Foreign direct investment (FDI)

Foreign Capital Inflows to Tajikistan Jump by One-Third, Approaching $7 Billion

Foreign investment in Tajikistan increased sharply in 2025, rising by more than one-third compared to the previous year, as the authorities also announced new investment agreements and long-term development strategies extending to 2040. Speaking at a press conference, Sulton Rahimzoda, chairman of the State Committee for Investment and State Property Management of the Republic of Tajikistan, said that by the end of 2025, total foreign capital inflows had reached $6,925.3 million. This represents an increase of $1,798.6 million, or 35.1%, compared to 2024. In absolute terms, the economy attracted nearly $1.8 billion more in foreign investment than a year earlier. According to the committee, $3,031.0 million of the total came from post-Soviet states in 2025, accounting for 43.8% of overall foreign investment. At the same time, countries outside the former Soviet Union accounted for the majority share. Tajikistan received $3,894.3 million from these countries, or 56.2% of total inflows. Investment from this group increased by $731.3 million year over year, or 23.1%. Authorities attributed the growth in foreign capital to improvements in the regulatory framework. On the initiative of the State Committee, a new version of the Law of the Republic of Tajikistan “On Investments and Stimulation of Investment Activity,” dated May 14, 2025, No. 2173, was adopted. Additional momentum came from the International Investment Forum “Dushanbe Invest - 2025,” held on October 14-16, where more than 50 cooperation agreements worth a combined $4.1 billion were signed.

Investments

EBRD Invested Over $100 Million in Tajikistan’s Economy in 2025

The European Bank for Reconstruction and Development (EBRD) invested nearly $103 million in Tajikistan’s economy in 2025, signing 19 agreements over the course of the year. The funding targeted key sectors including energy, transport, municipal infrastructure, and private sector development. According to the bank, 83% of its 2025 loan portfolio in Tajikistan supported sustainable infrastructure projects. Another 14% of resources were channelled through local banks to finance small and medium-sized enterprises (SMEs), women’s and youth entrepreneurship initiatives, and programs focused on climate adaptation and resource efficiency. The public sector received the majority of financing, accounting for 83% of the EBRD’s annual activity in the country. Of the total lending volume, approximately 58% was directed toward green economy development. One of the year’s largest initiatives was a financing package of up to €43 million for the state-owned power distribution company, Shabakahoi Taqsimoti Barq. The package includes an EBRD sovereign loan of up to €28 million and a €15 million grant from the European Union. These funds are being used to modernize electricity metering and billing systems across nine cities in the Khatlon and Sughd regions. Significant investment also went into road infrastructure. An EBRD sovereign loan of up to €38 million, combined with an $86.7 million grant from the Asian Development Bank, will fund the reconstruction of the Danghara-Guliston highway. The route connects the north and south of the Khatlon region, which produces over half of Tajikistan’s agricultural output and is home to more than one-third of the population. A major energy milestone was achieved in 2025 with the completion of the Kayrokkum hydropower plant’s modernization. The plant’s installed capacity increased from 126 MW to 174 MW after all six units were brought online. Serving around 500,000 people in the Sughd region, the project, initiated in 2019, was financed with $196 million arranged by the EBRD. The bank also issued three sovereign loans totaling over €12 million for water supply system upgrades in Kulyab and Yavan, and for the modernization of Dushanbe’s centralized heating system. Alongside infrastructure projects, the EBRD expanded its support for the private sector. In 2025, more than 500 small enterprises across Tajikistan received various forms of assistance from the bank.

B5+1

What the U.S. Really Wants in Central Asia: Behind the B5+1 Forums

The B5+1 business forum continued in Kyrgyzstan’s capital on February 5, as government officials, regional business leaders, and a sizable U.S. delegation met to discuss trade, investment, and regulatory barriers shaping economic ties between Central Asia and the United States. As Washington signals a more pragmatic, commercially driven approach to the region, questions persist over why U.S. investment has lagged behind political engagement and which markets are truly seen as priorities. The Times of Central Asia spoke with Dmitry Orlov, director of the Strategy: East–West analytical center, about the structural obstacles deterring American capital, the shift in U.S. policy thinking, and how Central Asian states are positioned within Washington’s evolving economic calculus. TCA: What serious U.S. capital investments in Central Asia can we talk about today? ORLOV: It is important to understand the main point. Talk of large investments, the arrival of American business, and long-term economic cooperation only makes sense in one case: if the U.S. repeals the Jackson-Vanik amendment, which was adopted back in the 1970s and extended to all former Soviet republics after the collapse of the USSR. Today, it remains a formal and, in many ways, psychological obstacle to a fully-fledged business partnership. At the same time, it is necessary to establish contacts at a business level right now. This is because if the amendment is repealed - and such statements are regularly heard in Washington - it is difficult to predict which countries in the region will receive investment flows and in what volumes. Recent international forums, including Davos, have shown that Kazakhstan and Uzbekistan are of the greatest interest to the U.S. in Central Asia. Their economies are developing more dynamically, and they can offer large-scale projects and a clear export base. The other countries in the region, Kyrgyzstan, Tajikistan, and Turkmenistan, are still perceived by investors as lower priorities. TCA: Previously, the U.S. actively promoted a political agenda in the region, including human rights and freedom of speech. Now these are rarely mentioned. Why do you think this is the case? ORLOV: The approach has become more pragmatic. The history of U.S. foreign policy shows that strategic and economic interests have always taken precedence. If a territory is attractive in terms of resources or transit routes, a format for cooperation will be found. In Europe, relatively speaking, the rule of law prevails. In Asia, the situation is different, and the Americans understand this perfectly well. Issues of ideology and human rights can move to the background if economic expediency comes first. This is especially true in Central Asia, where many issues are resolved through personal agreements and informal connections. Washington understands this. TCA: What exactly can Central Asia offer the U.S.? ORLOV: In terms of individual countries, Kazakhstan and Uzbekistan are again in the lead. They offer oil, gas, and, no less importantly, control over transit routes. There is currently a lot of discussion about rare earths and critical minerals, but their development is always long and expensive. As a result, interest in...

Investments

Kazakhstan Plans to Attract More Than $60 Billion in Investments in 2026

Kazakhstan aims to attract $62.7 billion in total investment in 2026, including $25.5 billion in foreign capital. The figures were announced during a government meeting on investment strategy chaired by Prime Minister Olzhas Bektenov. According to Bektenov, state authorities have been tasked with increasing the inflow of high-quality investments and ensuring the launch of projects with high added value. In line with this strategic goal, Kazakhstan’s Investment Policy Concept has been updated and extended to 2030. By the end of 2025, investment in fixed capital had reached $45 billion. In 2026, the government plans to implement 475 investment projects worth approximately $32 billion, creating over 1,100 permanent jobs. For comparison, 273 projects valued at $5 billion were launched in 2025. The government is shifting to a proactive investment model focused on sector-specific targeting and the development of a pre-approved portfolio of investment proposals. Major projects underway include the CHN Corporation’s $4 billion coal chemical complex in the Karaganda region, Fufeng Group’s $800 million corn deep processing plant, Shandong Yuwang Industrial’s $250 million soybean processing facility, and additional investments from Roca Group and UBM Group. Investor protection remains a top priority. The investment ombudsman role has been transferred to the Prosecutor General. In addition, the former investment committee has been restructured into the Committee for the Protection of Investors’ Rights. According to the Prosecutor General’s Office; these reforms have led to a 30% reduction in legal disputes involving investors. Despite this progress, Bektenov emphasized that excessive bureaucracy and delays in local procedures continue to hinder investment, resulting in direct economic losses. As previously reported by The Times of Central Asia, Kazakhstan was named as one of the leading investment destinations in the Eurasian region, alongside Uzbekistan.

Tourism

The Potential and Problems of Tourism in Kazakhstan

Kazakhstan boasts unique natural landscapes that could attract international visitors, and significantly enrich the country's economy. Each year, the government allocates increasing funds to support tourism. However, services and infrastructure in many tourist destinations still remain well below international standards. Undeniable Improvements According to Talgat Gazizov, Chairman of the Board of the national company Kazakh Tourism, more than 1,100 tours to Kazakhstan are currently available on 18 major online platforms across Europe and Asia – a threefold increase compared to 2023. This reflects growing interest among international tour operators. As previously reported by The Times of Central Asia, authorities are also weighing up the possibility of opening casinos in designated tourist zones, accessible exclusively to foreign citizens. In 2025, Kazakhstan invested nearly $2.5 billion in the development of its tourism sector, a 32% year-on-year increase. The number of tourists staying in accommodation facilities rose by 12%, surpassing 10 million. Kazakhstan also improved its position in the World Economic Forum’s global tourism index, climbing from 66th to 52nd place. The stated goal is to break into the top 50. Currently, 328 tourism investment projects are underway. Notable among them are the Oi-Karagai mountain resort, Hilton and Mandarin Oriental hotel complexes, the Zhibek Zholy entertainment complex, and the Keruen Inn roadside service chain. These projects are expected to create around 10,000 permanent jobs. A Comprehensive Development Plan for the Almaty Mountain Cluster includes expanding ski resorts and integrating them into a unified system. The celebrated Shymbulak ski base and Medeu high-altitude skating rink, both located near Almaty, are among the country’s most distinctive attractions. The plan envisions 30 new cable cars and 161 kilometers of ski slopes, aiming to boost annual tourist numbers from 1.8 million to 5 million. Authorities note that, globally, ski tourists spend seven times more than beach tourists. The Shchuchinsk-Borovskaya (Burabai) resort area is also a development priority. Infrastructure expansion around Lakes Katarkol, Maloye and Bolshoye Chebachye, and Zhukei is intended to ease pressure on Lakes Shchuchye and Borovoye. The number of inbound tourists to Burabai is projected to reach 94,000 by the end of 2029, with 32,500 people employed in the local tourism industry. In western Kazakhstan, development is planned along the Mangistau Peninsula, including Teply beach and Kendirli resorts on the Caspian Sea. Efforts are also underway to improve access to the striking rock formations of Bozhyr and Tamsha, which rival world-famous geological landmarks. Services and Infrastructure Lag Behind Despite progress, serious shortcomings persist, chief among them underdeveloped services. The lack of public toilets in tourist zones and along highways has been repeatedly highlighted. Government data shows that many resort areas in the Akmola, Karaganda, and Pavlodar regions, as well as in the Abai and Zhetysu regions, lack reliable water supply and central sewage systems. The use of well water remains a pressing concern. In the Abai region, some recreation centers are situated dangerously close to water sources. Lake Alakol, a popular summer destination, requires urgent shoreline reinforcement. Similar dredging work is also necessary in Caspian...