The EDB invites multilateral institutions to combine efforts to implement cross-border PPP projects in Central Asia at the New Development Bank’s annual meeting
Shanghai, 31 May 2023. Speaking at the New Development Bank’s (NDB) 8th Annual Meeting held these days in Shanghai, Nikolai Podguzov, Chairman of the Eurasian Development Bank’s (EDB) Management Board invited his colleagues from multilateral financial institutions to combine their efforts, including those related to the joint cross-border public-private partnership (PPP) projects in Central Asia.
“None of the financial organisations, even a large one, will not undertake to finance on its own a hydropower plant costing US $5 billion or a transport corridor costing US $3 billion. Development institutions should jointly mobilise financial resources for projects like these,” Nikolai Podguzov emphasised.
He noted that expansion of intercountry and regional trade and economic ties makes the development of the transboundary infrastructure more and more important. For a number of cases, the optimal solution would be cross-border PPP projects.
“It is hard work. These projects are long-term, capital intensive and require active international cooperation. As far as we know, there have been only 18 cross-border PPP projects completed in the world — those were mainly for the transport sector as well as for the water and energy complex and telecommunications. To ensure successful development of the transboundary infrastructure and effective management of the cross-border PPP in Eurasia, the EDB has developed guidelines based on the advanced international practice for cross-border projects. Our bank is ready to discuss and structure such projects in cooperation with other development institutions,” chairman of the EDB’s Management Board said.
The first candidate projects to be implemented in this format can be the initiatives in the water and energy complex of Central Asia. So far, this region has been one of the poorest performers in the world in terms of water use efficiency – US $2.5 per cubic meter on average, which is seven times less than the world’s average.
“I would like to use this platform to bring attention to the synergy potential of the cooperation between multilateral development banks. This is what our member countries want. Our bank proposes to focus on the three kea areas for partnership: joint financing for investment initiatives; technical assistance for projects at the early stages of their implementation; joint research to find and establish opportunities for development,” Nikolai Podguzov said.
The introduction of modern irrigation technology and modernisation of irrigation systems in Central Asia, together with the construction of hydropower facilities, will increase the water use efficiency by 40% and improve the security of the agricultural sector.
“I think that at present, a window of opportunities is open in Central Asia. This region is seeing more active bilateral cooperation now. Kyrgyzstan, Uzbekistan and Kazakhstan currently consider jointly constructing the Kambarata hydropower plant 1. We hope to participate in this project,” the EDB’s chairman noted.
He highlighted the EDB’s considerable expertise in working in Central Asia and experience in technical assistance. The EDB is open to new ideas and proposals aimed at mobilising resources to ensure growth and development of both individual countries and projects and the region as a whole.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 17 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries. 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 adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
Aigerim Akhanova, +7 701 328 38 98 (Almaty)