Alikhan Smailov, Prime Minister of Kazakhstan, holds a meeting of the EDB Council
Alikhan Smailov, Prime Minister of Kazakhstan, conducted a regular meeting of the Eurasian Development Bank’s (EDB) Council in Astana to review the Bank’s performance in 2022 and discuss its ongoing operations.
Nikolai Podguzov, Chairman of the EDB Management Board, highlighted that the EDB solidified its position as a leading development institution in Eurasia during 2022, with a significant increase in investment in its projects. The Bank’s cumulative investment portfolio reached US $13.4 billion, including US $2.5 billion in new projects – a record achievement far beyond the target for the reporting period. Consequently, the number of the Bank’s projects aimed at improving living standards in its member countries reached 273. The EDB’s net profit for 2022 was US $30.7 million, with an ROAE of 1.8%.
Alikhan Smailov commended the EDB’s performance in the previous year. Moving forward with development projects, he emphasised the importance of focusing on risk management and maintaining credit ratings.
“Investment surged by nearly US $1 billion compared to the previous year. The current investment portfolio keeps growing. We should continue to sustainably develop the Bank and finance projects in its member countries,” he stated.
Additionally, the Council was informed that the redistribution of the Bank’s charter capital among its member states was successfully implemented on 28 June 2023. As a result, a portion of Russia’s stake in the Bank’s paid-in capital was evenly distributed among the other member states, reducing its share from 66% to 44.8%, while increasing Kazakhstan’s share from 33% to 37.3%.
Furthermore, the Council received a report on the negotiations regarding Uzbekistan’s accession to the Bank.
It was highlighted that expanding membership would help the Bank to reduce potential risks and explore opportunities for launching new integration projects.
On the sidelines of the meeting, Nikolai Podguzov, Chairman of the EDB Management Board, presented the Bank’s projects in Eurasia to Council members. To develop renewable energy in Armenia, the EDB is financing a project to construct solar power plants. In Belarus, it has launched full-cycle production of Sputnik V vaccines, with 8 million doses produced in 2022. This has laid a foundation for developing a regional pharmaceutical cluster for the production of a wide range of vaccines. The US $50 million project was fully financed by the EDB. In Kazakhstan, the Bank presented a project to develop the Saryarka gas pipeline. In Kyrgyzstan, it is investing in a hydropower project to construct and operate the 100 MW Kulanak HPP. Once commissioned, the plant is expected to consolidate the country’s position in Central Asia’s electricity market, reduce energy shortages in the region, and improve energy security in the Kyrgyz Republic and overall Central Asia. Additionally, the Bank started to prepare and implement an investment project to enhance transport, logistics, and roadside infrastructure around the Verkhniy Lars border crossing, which will create a new logistics hub at the North–South route. In Tajikistan, the Bank plans to provide at least US $25 million for the development of industrial horticulture, which is expected to double the area of gardens equipped with modern automated monitoring and irrigation systems. This will make it possible for the relevant company to boost exports to EAEU countries.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia and Tajikistan. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
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