World Bank - The Times Of Central Asia

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Ecology

New Report From World Bank Condemns Tashkent Air Quality

A new World Bank report entitled "Air Quality Assessment for Tashkent and the Roadmap for Air Quality Management Improvement in Uzbekistan" gives a frightening assessment of the air quality in the country’s capital. The report finds that ambient PM2.5 concentrations in Tashkent, which peak in winter, substantially exceed international air quality standards. The annual average concentration exceeds six times the WHO’s average yearly guideline of 5 µg/m3. In Tashkent, PM2.5 ambient air pollution has considerable health and economic costs. It can be linked to health costs equivalent to 0.7% of Uzbekistan’s gross domestic product (GDP). Most air quality-related diseases and premature deaths in Uzbekistan and worldwide are linked to PM2.5, which the World Health Organization (WHO) has identified as the pollutant with the gravest health risk. According to IQAir, Tashkent, like other Central Asian cities, frequently ranks among the world's most polluted urban areas. According to the report, the primary sources of human-caused PM2.5 pollution in Tashkent are the heating (28%), transport (16%), and industrial sectors (13%). Cross-boundary sources like windblown dust (36% PM2.5 pollution) dominate in the summer, while commercial and residential heating is the primary source of PM2.5 pollution in the winter. The report’s AQM roadmap for Uzbekistan formulates priority actions such as updating air quality standards and legislation, developing a national AQM strategy and coordination mechanism, and taking measures in the industrial, transport, and heating sectors, which are most responsible for air pollution. The AQM roadmap recommends investments in emission reduction measures. The roadmap suggests that emissions from the heating sector can be reduced by improving the quality of fuels used and the efficiency of heating appliances, implementing energy efficiency measures, and switching to cleaner heating alternatives. At a government meeting on October 9, Uzbekistan’s President Shavkat Mirziyoyev reviewed a draft master plan for the city of Tashkent until 2045. Today the population of Tashkent is more than 3 million people, and it keeps growing. Over the past ten years, the average air temperature in Tashkent has increased by 1 degree Celsius. The number of cars is rising, and traffic is becoming increasingly congested. The new master plan takes these aspects into account. It plans to increase green areas in Tashkent and its suburbs threefold to 25,000 hectares, which will increase per capita green area from the current 3 to 6 square meters. Mirziyoyev emphasized the need to turn Tashkent into a city where at least 7.5 million people can live and work.

Market economy

World Bank Allocates $800 Million to Support Uzbekistan’s Market Economy Transition

The World Bank has allocated $800 million to accelerate Uzbekistan's transition to an inclusive and stable market economy. The government’s reform program, supported by the World Bank, aims to improve Uzbekistan’s business environment, increase agriculture, railways, and energy efficiency, improve public finance management, expand social services, and enhance readiness for environmental risks. Finance provided by the World Bank through highly concessional loans, is reported to offer the government low-cost, long-term repayment options "more favorable than those available in international financial markets." The financial package aims to achieve concrete results in the social protection system, combating gender-based violence, land security for farmers, business environment, public finance management, tackling climate change, water resource management, and environmental and climate assessment. It also includes reforming climate-sensitive investment in the railway and energy sectors. Uzbekistan has received $100 million from the World Bank in May to develop social protections. On 21 June, it was announced that Uzbekistan is the first country worldwide to receive payment from the World Bank for reducing carbon emissions through a policy crediting program and to date, has been awarded a $7.5 million grant for cutting 500,000 tons of carbon emissions.

Rogun HPP

Tajikistan Raises Over a Billion Dollars More for Rogun Hydropower Plant

Tajik President Emomali Rahmon, speaking at a meeting with the constructors of the Rogun hydropower plant, said that negotiations with the World Bank for a $650 million grant -- and with the Asian Infrastructure Investment Bank for a $500 million loan -- are in their final stages. Earlier, agreements on preferential lending were signed with the Islamic Development Bank for $150 million and the Saudi Fund for Development for $100 million. In addition, Arab development funds, such as the OPEC Fund, Kuwait Fund, and Abu Dhabi Fund, have already decided to allocate an additional $100 million. Negotiations are underway with the Asian Development Bank and the European Investment Bank to attract grants and preferential loans. Rahmon noted that from 2008 to 2024, more than 42.5 billion somoni (about $3.8 billion) from the state budget and other sources were allocated to construct the hydropower plant. He emphasized that Rogun is a crucial facility that ensures the country's energy independence and economic development. According to him, 7.5 billion kilowatt-hours of electricity have been produced since the launch of the first two units in 2018. More than 17,000 workers and engineers are currently employed in the plant's construction, and their number continues to grow. Rahmon also noted the need for strict adherence to the work schedule. The installation of the next hydro unit is planned for the fall of 2026. The Rogun hydropower plant is located 110 kilometers east of Dushanbe, and is one of Central Asia's largest and most strategically important hydropower projects. Once completed, it will be the highest dam in the world, at 335 meters. Construction of the project began in 1976 but was suspended after the collapse of the USSR. Work resumed in 2016, and two turbines are producing electricity. In the future, the hydropower plant will have six turbines with a total capacity of 3,600 MW. Once completed, it will generate 17.1 TWh of electricity per year. The project also addresses water supply issues; the reservoir will irrigate 300,000 hectares of land and reduce sedimentation at the downstream Nurek HPP. Part of the energy is planned to be exported to neighboring countries.

Kambarata

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.

Energy

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.

World Bank Infrastructure Development Investments

World Bank Supports Community-Driven Development in Kyrgyzstan

On July 31, the World Bank’s Board of Executive Directors approved $27 million for Kyrgyzstan's National Community Initiatives Project (NCIP). The project aims to improve access to socioeconomic infrastructure and increase economic opportunities at a local level, focusing on women and youth. Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic, commented, “The National Community Initiatives Project builds on more than a decade of the Government’s successful community-driven development initiatives and aims to scale up, standardize, and deepen their impact. The project will also build the capacity of local governments to work effectively with communities on development priorities, ensuring a more prosperous future for all.” The project will be implemented through 2029 by Kyrgyzstan’s Community Development and Investment Agency. As part of the Village Climate-Resilient Infrastructure Investments component, the project will directly benefit rural populations in 40 Aiyl Aimaks (sub-districts), one per district across the country. Each selected sub-district will receive up to $450,000 for socioeconomic infrastructure identified through a participatory village needs assessment and decision-making process. Eligible infrastructure may include kindergartens, schools, health facilities, water supply systems, and other climate-adaptive investments such as renewable energy sources, energy-efficient street lighting, drip irrigation, and disaster preparedness. Within the Grants for Climate-Smart Local Economic Development and Livelihood Activities component, 15 competitively selected sub-districts will receive grants of $200,000 to $300,000 for local economic development. The objective is to enhance economic opportunities, enabling businesses to launch or expand while creating jobs for women, youth, and vulnerable groups. Economic sub-projects will target agricultural processing, handicrafts, eco-tourism, and green enterprises. The project will also finance comprehensive training for local self-government and communities in participatory needs assessment and planning; selection, management, and monitoring of village investments; climate change; and economic empowerment. The project will also look to engage women and youth in local planning and investment processes, ensuring their priorities for regional infrastructure and livelihood investments (such as medical facilities, schools, and kindergartens) are addressed, and providing tailored training to strengthen women’s leadership in social and economic spheres. Support will also be offered for women's entrepreneurship, the establishment of private childcare facilities, and targeted youth engagement opportunities.