World Bank - The Times Of Central Asia

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Environmental Initiative

Kyrgyzstan Launches $52 Million Environmental Initiative to Combat Natural Disasters

Kyrgyzstan has officially launched RESILAND CA+, a $52 million environmental initiative aimed at restoring degraded landscapes, reducing natural disaster risks, and strengthening regional cooperation in sustainable land management. Funded primarily by the World Bank, the project targets key ecological threats across several regions, including Osh, Jalal-Abad, Naryn, and Issyk-Kul, with a particular focus on the Kara-Darya River Basin, an area highly vulnerable to mudflows. According to the Kyrgyz Ministry of Emergency Situations, RESILAND CA+ seeks to mitigate the impact of mudflows, restore forests and soils, and build climate resilience across borders. Kyrgyzstan has recorded more than 900 mudflows over the past 12 years, posing a constant threat to lives and livelihoods, particularly in mountainous and riverine communities. “This project opens a new chapter in combating land degradation and climate threats in Kyrgyzstan,” said Boobek Azhikeev, Minister of Emergency Situations. “We are not just restoring landscapes, we are protecting the future of our communities”. The RESILAND CA+ program is financed through a combination of grants and credits from international development partners: $45 million in credit from the International Development Association (IDA) $5 million grant from the PROGREEN global partnership $2.4 million grant from the Korea-World Bank Partnership Facility (KWPF) Tatiana Proskuryakova, the World Bank’s Regional Director for Central Asia, stressed the broader impact of the initiative: “RESILAND CA+ is not just about the environment, it’s an investment in people’s safety, in the economy, and in international partnerships. Restoring nature helps us prevent future disasters”. Set to run through 2029, the program is part of a larger Central Asian strategy to manage transboundary landscapes and natural resources collaboratively.

World Bank

Communities in Uzbekistan and Turkmenistan Demand World Bank Investigation into Rogun HPP

The World Bank’s Inspection Panel has agreed to formally investigate the World Bank’s involvement in the Rogun Hydropower Project (HPP) in Tajikistan, following a complaint filed on behalf of communities living downstream on the Amu Darya River in Uzbekistan and Turkmenistan. The complaint, submitted by the international environmental coalition Rivers without Boundaries, raises serious concerns about the project's environmental and social impacts. The group claims the World Bank approved funding for the project based on outdated and incomplete assessments, failing to adequately consider risks to local ecosystems and communities. At the heart of the issue is the potential impact of filling the Rogun reservoir, which could reduce water flow to the Amu Darya delta by 25% or more. Experts warn this could accelerate desertification, increase soil salinity, and threaten the livelihoods and health of up to 10 million people in Uzbekistan and Turkmenistan. Particularly vulnerable are the region’s rare tugai forests, including the Tigrovaya Balka Reserve, which was inscribed on UNESCO’s World Heritage List in 2023. The dam's construction also endangers local aquatic species, such as the critically endangered Amu Darya false shovelnose sturgeon. “This investigation is a crucial step,” said Yevgeny Simonov, international coordinator of Rivers without Boundaries. “The Rogun project in its current form is a massive threat to the environment and to millions of people in Central Asia. The World Bank must adhere to its own environmental and social safeguards.” Activists also criticized the lack of public consultation in Uzbekistan and Turkmenistan, where affected communities were allegedly not informed in their native languages, Uzbek, Karakalpak, or Turkmen and where access to key documents was limited. Several complainants reportedly requested anonymity, citing fear of retaliation, which reflects the challenging environment for civic participation in the region. “People living in the lower Amu Darya basin have already suffered for decades due to poor water management and the drying of the Aral Sea. The Rogun project could be the final blow,” said Manana Kochladze of CEE Bankwatch Network. “There has been no serious dialogue with those whose lives depend on this river, which contradicts the basic principles of transparency and participation.” In 2023, environmental groups submitted proposed modifications to align the Rogun project with international standards, including cheaper and safer alternatives. However, the World Bank has yet to respond. Rivers without Boundaries alleges that the project violates multiple Bank policies, including those on environmental assessment, biodiversity protection, resource efficiency, dam safety, community engagement, and resettlement. The coalition is now urging the World Bank and other financiers to pause funding until a comprehensive, independent, and transparent investigation is completed and until meaningful steps are taken to prevent further harm to both people and nature.

Environment

Uzbekistan Launches $153 Million Forest Restoration Project with World Bank Support

Uzbekistan, in collaboration with the World Bank, has launched a major initiative to restore forests and rehabilitate degraded lands across the country. The Uzbekistan Resilient Landscapes Restoration Project (RESILAND) was officially announced during the Samarkand Climate Forum on April 5. The World Bank will provide $153 million in funding, consisting of a combination of low-interest loans and grants. This initiative forms part of a broader regional strategy aimed at combating land degradation and enhancing climate resilience throughout Central Asia. RESILAND will initially target six provinces: Samarkand, Surkhandarya, Syrdarya, Jizzakh, Namangan, and Kashkadarya. Its objectives include forest restoration, improved land management, and the creation of new jobs through afforestation and nature-based business ventures. Uzbekistan’s Minister of Ecology, Aziz Abdukhakimov, emphasized that the project will play a critical role in helping the country achieve its goal of expanding forested areas to 6.1 million hectares by 2030. “The project will also support food systems, infrastructure, and nature tourism,” he said. Currently, only 10.6% of Uzbekistan’s territory is forested. In recent years, the government has intensified efforts to increase forest cover, particularly on the desiccated seabed of the Aral Sea. Tatiana Proskuryakova, World Bank Regional Director for Central Asia, welcomed the initiative, noting, “The World Bank values the opportunity to support the government of Uzbekistan in its efforts to restore degraded lands.” As part of the project, Uzbekistan plans to rehabilitate forests on 176,000 hectares, improve pasture conditions, combat soil erosion in mountainous regions, and develop agroforestry and industrial forest sectors. An additional 5,000 hectares will be allocated for the cultivation of medicinal plants. RESILAND will also provide support for small and medium-sized enterprises, offer training for local farmers, and promote eco-tourism in protected areas. The initiative includes plans to improve the infrastructure of the Forestry Agency and to launch Uzbekistan’s first National Forest Inventory. A new partnership between the Forestry Agency and the Green University near Tashkent will further use grant funding to advance forestry education and research. The project is part of the wider RESILAND CA+ program, which encompasses similar initiatives in Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.

Migration

World Bank Report Examines Migration Trends in Central Asia

The World Bank has released a report titled The Way Forward: Supporting Successful Migration in the Europe and Central Asia Region, which analyzes migration trends and their impact on countries in the region, including Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan. Migration remains a significant issue in Europe and Central Asia, a region home to 100 million migrants, one-third of the world’s total migrant population. People move across borders in search of better job opportunities, as well as in response to changing demographics, climate change, and conflicts. This trend is expected to continue. According to the report, most migrants from Tajikistan and Kyrgyzstan head to Russia, with over 80% of migration from these countries directed there in 2023. Migration from Uzbekistan is more diverse, with 57% of Uzbek migrants residing in Russia, 15% in Kazakhstan, and 10% in Ukraine. The Economic Role of Labor Migration Labor migration plays a crucial role in the economies of Central Asian nations. In 2024, remittances accounted for: 45% of Tajikistan’s GDP 24% of Kyrgyzstan’s GDP 14% of Uzbekistan’s GDP Many households rely heavily on money sent home by migrants. The report highlights that without remittances, the poverty rate among Kyrgyz households with migrant family members would rise from 10% to 50%, while in Uzbekistan, it would increase from 9.6% to 16.8%. The total volume of remittances sent to Uzbekistan in 2024 reached a record $14.8 billion. Recommendations for Better Migration Management The report underscores the need for improved migration policies, as its full potential remains underutilized. If managed effectively, migration can help address economic and demographic challenges. The World Bank recommends several measures to enhance migration management: Developing tailored strategies for skilled and unskilled workers. Integrating labor migration into national economic planning to support growth. Implementing policies to mitigate "brain drain" and encourage skilled workers to return home. Improving migrant registration and formalizing agreements with destination countries. Providing migrants with accurate job information to ensure safer and more organized migration processes. The report concludes that with the right policies in place, migration has the potential to serve as a powerful tool for economic development in Central Asia.

Economy

Kyrgyzstan Economy at Risk of Stagnation, Warns World Bank

The World Bank has released a new report on the economic development of Kyrgyzstan and the broader Central Asian region. While the report acknowledges that Kyrgyzstan’s economy is growing at a steady pace, it warns that this growth is insufficient to propel the country to the next stage of development. The report, prepared in collaboration with the Kyrgyz Ministry of Economy and Commerce, outlines a three-stage approach to advancing the national economy. According to David Knight, a leading economist at the World Bank, Kyrgyzstan should prioritize investment, the adoption of new technologies, and innovation. The World Bank also recommends that the government focus on improving education, strengthening the private sector, and reforming energy policy. "Kyrgyzstan's economy is currently showing strong indicators. However, these are not enough to facilitate a transition to the next level of development. As experience shows, it is only a matter of time before economic growth slows. The key question is whether the authorities can sustain momentum," Knight said. Ivaylo Izvorski, the World Bank’s Chief Economist for Europe and Central Asia, told The Times of Central Asia that Kyrgyzstan needs targeted investments — or "point injections" — in key sectors, particularly industry and energy. "Why is it so difficult to transition from middle-income to high-income status? One reason is that countries cannot simply shift from investment-driven growth to innovation-driven growth overnight. The right technologies must first be introduced into the economy, and only then can innovation take hold," Izvorski explained. The World Bank has also raised concerns about Kyrgyzstan’s energy sector, particularly its pricing policies. Despite recent increases in electricity and heating costs, World Bank experts argue that tariffs remain artificially low and heavily subsidized, which could hinder long-term development. "If electricity costs 10 cents per unit but consumers pay only 3 cents, it leads to waste and inefficiencies. State subsidies, the monopoly of state-owned enterprises, and market distortions continue to obstruct energy sector reforms," Izvorski said. The report also highlighted the need for education reform. The World Bank advises Kyrgyz authorities to raise educational standards, particularly in higher education, to support a more skilled workforce. To achieve this, universities and vocational schools should strengthen partnerships with industrial enterprises, while university funding should be tied to institutional performance.

Kambarata

Central Asian Countries and World Bank Discuss Progress on Kambarata-1 Hydropower Project

On January 27, Tashkent hosted a roundtable discussion on advancing the construction of the Kambarata-1 Hydropower Plant (HPP), an ambitious regional initiative being jointly undertaken by Kyrgyzstan, Kazakhstan, and Uzbekistan. The project aims to enhance regional cooperation in Central Asia regarding water and energy resource management. The meeting was attended by Kyrgyzstan’s Minister of Energy Taalaibek Ibrayev, Uzbekistan’s Minister of Energy Jurabek Mirzamakhmudov, Kazakhstan’s Deputy Minister of Energy Sungat Yesimkhanov, and the World Bank Regional Director for Central Asia Tatiana Proskuryakova. The Kambarata-1 HPP, with a projected capacity of 1,860 megawatts and an average annual electricity generation of 5.6 billion kilowatt-hours, will be constructed at an estimated cost exceeding $4 billion. It is planned to be located in the upper reaches of the Naryn River in Kyrgyzstan. Upon completion, it will become the largest hydropower plant in Kyrgyzstan and is expected to address the country's chronic electricity shortages. At the meeting, ministers from the three participating countries requested the World Bank’s assistance in preparing and financing the Kambarata-1 HPP construction. Kyrgyzstan's Ibrayev described the project as "the project of the century" for Kyrgyzstan, emphasizing its potential to strengthen regional cooperation and foster long-term development across Central Asia. “Today's roundtable in Tashkent continues a series of meetings that took place in Vienna, Brussels, and Washington in 2024. These events help coordinate and accelerate the project’s implementation, as well as attract the necessary international support,” Ibrayev stated. From Kazakhstan’s side, Yesimkhanov highlighted the meeting as another step forward in strengthening regional cooperation in the water and energy sectors. He expressed confidence that the project would bolster good relations among Central Asian nations. Uzbek representative Mirzamakhmudov reiterated his country’s commitment to the project, underscoring its strategic importance for the region. "The project will bring significant benefits to all Central Asian countries by strengthening regional energy security, accelerating the transition to a green economy, and improving the use of water resources," he said. Currently, Kyrgyzstan, with the World Bank’s technical support, is revising the project’s feasibility study. This includes assessing the technical, economic, financial, environmental, and social dimensions of the Kambarata-1 HPP. World Bank Regional Director Proskuryakova reaffirmed the institution’s readiness to support the three governments in their efforts to ensure a stable energy future for the region. “We will continue to provide technical assistance in the implementation of the Kambarata-1 HPP construction project. Together with other international development partners, we are working to attract the financing necessary to implement the project,” she said. Ibrayev has previously stated that all preparatory stages of the project are scheduled for completion by May 2025. In September 2024, Kyrgyzstan’s Cabinet of Ministers and the World Bank organized a roundtable to discuss dam selection for the Kambarata-1 HPP. The Swiss engineering firm AFRY proposed several options, and Kyrgyzstan’s Ministry of Energy has confirmed that the feasibility study will be finalized based on the chosen dam design by May 2025.