The Eurasian Development Bank initiated a multilateral conference to discuss sustainable regional cooperation. The forum in Almaty, Kazakhstan brought together representatives of global financial institutions and international organizations. The realization that no Central Asian country can develop in isolation from others has created incentives to coordinate efforts to implement major infrastructure projects of importance to the entire region. This applies not only to interstate cooperation, but also to the consolidation of financial resources from donors.
In a few decades, if nothing is done now, conditions for a “perfect storm” will develop in Central Asia. This is the superposition of several risk factors at once, such as water scarcity, lack of electricity and climate change. Therefore, achieving a water-energy balance in the region is of paramount importance. And one of the important projects in this area is the construction of a large Kambar-Ata-1 HPP, it will provide additional capacity for industrial development and allow more rational use of moisture, which is necessary to preserve irrigated land for agricultural activities, on which directly depends on food security of several countries.
Chairman of the Board of the Eurasian Development Bank (EDB) Nikolay Podguzov noted in his speech that thanks to the support of multilateral development banks, a number of projects aimed at improving the efficiency of water use are being implemented in Central Asian countries. The EDB head also drew attention to the importance of the construction of the Kambar-Ata-1 HPP, which can make a significant contribution to the achievement of water-energy balance in the region.
“The Islamic Development Bank has undertaken to improve the efficiency of water use in Kazakhstan. Also, the first joint project between EDB, UNDP and the Ministry of Water Resources has already been launched. Uzbekistan has launched a series of projects aimed at saving 15 cubic meters of water over the next five years. The government plans an eightfold increase in drip irrigation to 600,000 hectares. As a result, Uzbekistan intends to improve water use efficiency by 25%.
Kazakhstan, Kyrgyzstan and Uzbekistan signed an agreement for the construction of the Kambar-Ata-1 HPP. The World Bank is assisting this cross-border public-private project. To summarize, we can say that multilateral development banks have a great impact in helping Central Asia solve its structural problems,” Podguzov noted.
The issue of rational water use is one of the key issues for sustainable development of Central Asia. Large resources are needed to modernize irrigation networks, concreting canals and hydrosystems, creating reservoirs, introducing digital metering and drip irrigation technologies. Large programs in this direction are already being implemented in Kyrgyzstan, Kazakhstan and Uzbekistan. And this work should be carried out on a permanent basis, so that reduction of glacier area and, as a consequence, reduction of water availability in rivers would not entail a sharp reduction of crop areas and paralysis of small hydropower. The search for effective solutions, development of common approaches, coordination of actions and search for necessary resources are aimed at leveling the consequences and adapting to the consequences of the global climate challenge.
In order to achieve fundamental improvements, the EDB proposes to engage in systematic work with UN agencies, the World Bank, the Asian Development Bank, the Islamic Bank and all interested financial institutions and organizations. For this purpose, an extensive database has been created covering 11 countries of the Eurasian region, which includes 1.7 thousand projects that coincide with the global sustainable development goals.
Evgeny Vinokurov, Deputy Chairman of the Board, Chief Economist of the EDB, noted that Central Asian states need financing for energy, water supply, agriculture and social sphere. Special attention is paid to projects in local currencies, which is especially important for developing countries. The database provided by the EDB will make it possible to promptly monitor investments and improve the efficiency of their allocation.
“This tool is important for filling budget gaps and adapting regional economies to global challenges,” Vinokurov stressed.
Another important task to be solved by Central Asian countries is the diversification of logistics and the development of cross-border routes. Due to serious geopolitical transformations, the region is no longer a dead end. Occupying a strategic position at the crossroads of the main trade routes on the largest continent, Central Asia does not yet have a sufficiently developed network of roads and railroads to ensure the passage of increasing volumes of cargo traffic.
It has been said for many years that being landlocked creates additional barriers for the states of the region. To address these issues, EDB is developing a concept of transport integration, including the creation and interconnection of international freight routes. As it was noted in Almaty, the China-Kyrgyzstan-Uzbekistan railroad will also play an important role in the Eurasian transport framework being built. This will be a serious contribution to the overall development - strengthening the economies and expanding the opportunities of the countries of the region. And it is not only about cargo transit, but also a serious potential for the development of industrial production, along the lines of logistics routes and at transport interchanges. The creation of so-called dry ports will also require serious investments, and this work is already underway.
Much work needs to be done in Central Asia to ensure that the network of roads and railroads established in the region ensures the prompt passage of serious cargo traffic between different parts of the continent, both from west to east and from north to south.
Chairman of the EDB Board Nikolay Podguzov emphasized that the projects not only address regional challenges, but are also consistent with international standards of sustainable development. In addressing global challenges, it is important to take into account regional needs. Central Asia has great potential, but serious investments and concerted actions are needed to fully utilize it.
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