The EDB stands ready to become a hub for sustainable PPP projects in the EAEU+
St. Petersburg, 15 June 2022. The Eurasian Development Bank (EDB) stands ready to become a focal point for the coordination, creation, and implementation of sustainable public-private partnership projects in the EAEU+ countries. This was stated by an EDB Management Board member, during the round table entitled PPP for Sustainable Development in the EAEU+ States hosted by the Bank.
“The Eurasian Development Bank, as a multilateral financial institution established by the EAEU member states, is ready to consolidate resources for the building of sustainable infrastructure and become a competence centre cultivating PPP projects for sustainable development in the EAEU countries,” said EDB representative.
EDB experts also believe that the market for sustainable green investment is currently in its formative stages in the EAEU countries. Developing this market would require a concerted effort by all stakeholders, including institutional and private investors, stock exchanges, and regulators.
Georgy Arzumanyan, Deputy Director of the Industrial Policy Department of the Eurasian Economic Commission, believes that the use of PPP instruments with the EDB’s financing contributes to achieving the Sustainable Development Goals (SDGs) in the EAEU.
“Each of the EAEU countries has developed its own agenda for achieving the SDGs. However, the current developments suggest that the countries would not be able to achieve these goals on their own. Therefore, regional cooperation will contribute to the achievement of the SDGs, as it will enable the use of integration tools,” said Georgy Arzumanyan.
“Now is the right time to develop common approaches. Two options are possible – the creation of a specialised institute for the examination of sustainable development projects in the EAEU, or mutual recognition by the EAEU countries of national verification results,” said Vladimir Yakunin, Head of the EDB Project Support Department.
Svetlana Maslova, Director of PPP Projects at the EDB, underlined that in PPP projects to achieve the SDGs, private investment is important not only as a means to start building infrastructure, but rather as a mechanism to ensure infrastructure resilience, climate risk mitigation and adaptation to climate change, CO₂ reduction, and adoption of more sustainable production and consumption patterns, as well as to improve people’s access to basic services and implement social agenda at the national and international levels. New approaches are needed to balance public and private partners that finance such PPP projects.
Kazakhstan has set up a legal framework for sustainable PPP projects. Kazakhstan’s PPP law enshrines the PPP principle of value for the public as well as requirements governing the social, economic, and environmental interests of the public in PPP contracts. Some PPP projects are already being structured with social and environmental requirements in mind. “Private investors are showing interest in such PPP projects,” said Samat Sagyndykov, Chairman of the Board of the Kazakhstan Centre for Public-Private Partnership.
Talgat Matayev, Director of the PPP and Concession Expert Centre in Kazakhstan also noted the need for harmonising national legislations in the EAEU+.
“We have great potential for the implementation of PPP projects precisely at the junction of our countries. The Eurasian Development Bank could play a major role here. Given the EDB’s experience in financing PPP projects, it could become a coordinator of this work,” said Talgat Matayev.
In selecting PPP projects in Armenia, the social effect is assessed along with the economic effect. Armen Simonyan, Deputy Minister of Territorial Development and Infrastructure of Armenia, told roundtable participants about the concession of the country’s national railway system to the South Caucasus Railway. Last year, the carrier’s passenger fleet was completely renewed with the help of the EDB.
The Kyrgyz Republic has initiated cross-border PPP projects. Sanzhar Mombekov, Head of the Project Development Division of the PPP Centre under the President of the Kyrgyz Republic, told about a project to build a customs and logistics centre in the At-Bashy District of the Naryn Region. The amount of funding to be mobilised is US $20 million.
Saidmurod Rahmonov from the PPP Project Implementation Centre of Tajikistan presented Tajikistan’s experience in developing PPPs and continuing the legal and institutional reform of PPPs to build sustainable infrastructure.
Kirill Polyakov, Vice Governor of St. Petersburg, said it was only natural that the round table was held in the city as St. Petersburg is a pioneering Russian region in implementing PPP practices. The EDB has made it possible to discuss how such projects might contribute to sustainable development.
Artem Volodkin, Managing Director of the National Centre for PPP, spoke about the IRIIS project evaluation system, which was included in the green and social taxonomies, and the need and readiness to scale it up.
The event was attended by Vladimir Gorchakov, Head of Sustainable Development Risk Assessment Group at ACRA; Tatiana Domeykayte, Head of the PPP Centre at the Investment Promotion Agency of the Amur Region; Anna Lukina, Director General of the Kaluga Region Centre for PPP; Elena Semenova, First Deputy Director General of the Agency for Infrastructure and Industrial Development of the Yamalo-Nenets Autonomous Okrug; Olga Potiforova, Deputy Director of the Directorate for the Development of the Transport System of St. Petersburg and the Leningrad Region; Irina Kalenchak, Head of the Main Investment Policy Department at the Ministry of Economy of Belarus; and Timur Abdullakhanov, Senior Managing Director and Head of Transport and Infrastructure at the EDB, among others.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For 15 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio mainly consists 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.
The EDB Media Centre:
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)