Wednesday, january 17, 2017 inside nation healthcare minister reports on new infrastructure development plan A2

A8

WEDNESDAY, JANUARY 17, 2017

EURASIA&WORLD

EBRD continues work in Central Asia, returns to Uzbekistan

By Zhazira Dyussembekova

ASTANA – The European Bank 

for Reconstruction and Develop-

ment (EBRD) continued to sup-

port the Central Asian region in 

2017 with a total investment of $1 

billion. It has also resumed opera-

tions in Uzbekistan after a seven-

year pause.

The bank is the largest institu-

tional investor in the region, with 

approximately $12.3 billion com-

mitted to a variety of projects. With 

the  new  financing  in  Uzbekistan, 

its lending in the region reached 

the  figure  last  year,  said  EBRD 

first  vice  president  Phil  Bennett, 

according to Reuters.

During his speech at Nazarbayev 

University in June, EBRD Presi-

dent Suma Chakrabarti noted Cen-

tral Asia is one of the bank’s most 

important regions.

“We now combine a private sec-

tor focus on financing and the de-

livery of development goals with 

extensive work on policy reform 

with the governments of the coun-

tries where we work. In Central 

Asia, for example, we are actively 

engaged in such reform in the are-

as of green energy, diversification, 

the investment climate and the role 

of the private sector,” he said.

Kazakhstan is one of EBRD’s 

largest countries of operation; it 

ranked second last year after Tur-

key with nearly $6.5 billion in-

vested in 236 projects throughout 

the last 20 years. According to 

the bank’s website, it has several 

priorities in the country such as 

balancing the roles of the public 

and private sectors, strengthen-

ing the banking sector and devel-

oping local capital markets. The 

bank also claims infrastructure as 

one of the most important areas. 

EBRD is also Kazakhstan’s larg-

est investor in sustainable energy, 

including renewable energy and 

energy-efficient  technologies.  As 

the bank’s work in the country has 

been widely covered, the follow-

ing concentrates on its activity in 

neighbouring countries.

Uzbekistan

With the reopening of the Tash-

kent  office  in  November,  EBRD 

has signed three loan agreements 

totalling $120 million. The larg-

est, worth $100 million, is for the 

Uzbek National Bank for Foreign 

Economic Activity for on-lending 

to small and medium-sized enter-

prises  (SMEs)  and  trade  finance. 

At the same time, agribusiness 

Agromir Juice and medical sup-

plier Mutabar Medical Standart 

will each receive approximately 

$10-million loans for expansion 

and growth. EBRD also signed a 

memorandum of understanding 

with the Uzbek Chamber of Com-

merce and Industry for joint work 

to improve competitiveness.

The bank noted its current objec-

tives in Uzbekistan are supporting 

domestic SMEs and promoting 

trade finance and cross-border co-

operation, as well as facilitating 

foreign direct investment result-

ing in technology and know-how 

transfer and improving competi-

tiveness of the local economy. 

The EBRD Board of Directors is 

expected to approve a new country 

strategy for Uzbekistan which will 

set out longer-term strategic priori-

ties, according to the bank’s press 

release.

EBRD invested $1.07 billion 

in Uzbekistan in 54 projects from 

1992-2010. Next year, the bank is 

planning 15 projects in the coun-

try.

Kyrgyzstan

EBRD announced in May that it 

is providing loan and grant financ-

ing to Manas Airport, Kyrgyzstan’s 

main air gateway, to modernise the 

terminal. Under the agreement, 

the airport operating company 

will receive a $4.7-million loan 

and $500,000 investment grant to 

address the country’s growing de-

mand for good quality airport ser-

vices and assist in installing a ven-

tilation and heating system which 

complies with international and 

energy efficiency standards, noted 

the bank’s press release. In addi-

tion, EBRD will provide technical 

assistance to improve the airport’s 

financial  management  and  opera-

tion  efficiency,  as  well  as  energy 

efficiency standards.

In December, the bank and the 

Kyrgyz Investment and Credit 

Bank (KICB) announced they are 

providing  financing  to  Kaindy-

Kant, the country’s leading sugar 

producer. The $2-million loan 

agreement will provide the compa-

ny with working capital related to 

procuring and subsequently stor-

ing, transporting and processing 

sugar beets.

At the same time, EBRD indi-

cated it will be contributing to the 

reliability of power distribution in 

the country with a financing pack-

age up to $7.17 million to Vostoke-

lectro, the power distributor cover-

ing 47 percent of the nation. It will 

consist of a sovereign loan and an 

investment grant from the EBRD 

Shareholder Special Fund to sup-

port the company’s investment to 

improve energy efficiency and re-

duce energy losses. Vostokelectro 

will be able to install advanced 

metering systems, modernise and 

strengthen its low- and medium-

voltage power infrastructure and 

establish a better integration with 

renewable sources of energy.

During its years of operation, 

EBRD has invested approximately 

$770 million in various sectors of 

the Kyrgyz economy in 160 differ-

ent projects, mostly in infrastruc-

ture.

Tajikistan

EBRD’s Women in Business 

programme was launched in Ta-

jikistan last year. The bank, which 

sees economic inclusion as one of 

the attributes of a successful mod-

ern economy, has allocated $10 

million to the programme, accord-

ing to the press release. As well 

as  access  to  finance,  it  will  help 

women receive the know-how they 

need to develop their businesses 

through business advice, train-

ing courses in key entrepreneurial 

skills and a mentoring programme.

In late December, EBRD an-

nounced it is committing new 

funds to address solid waste treat-

ment issues in the country. The 

loan,  which  will  finance  priority 

municipal investments in the city 

of Kulob, will be aimed at improv-

ing and expanding its solid waste 

collection network, procuring asso-

ciated equipment and constructing 

a  new  sanitary  landfill.  The  pro-

ject is part of the Tajikistan Solid 

Waste Framework approved by the 

EBRD Board in December 2014.

A total of 114 projects are cur-

rently and/or will be implemented 

in Tajikistan, with a cumulative 

EBRD investment of $716.7 mil-

lion.

Turkmenistan

In early 2017, the bank an-

nounced $10 million in financ-

ing to Turkmenistan Coca-Cola 

Bottlers to support its expansion 

and energy efficiency improve-

ments. The funds will allow the 

company to invest in energy ef-

ficient coolers, new vehicles and 

bottling machines to improve 

production processes, boost ca-

pacity and reduce energy waste. 

As part of the project, the firm 

will train local SMEs to help 

them meet Coca-Cola standards 

and potentially become suppli-

ers.

EBRD will also provide Taze 

Ay, a family-owned meat pro-

ducer, with a loan of up to $4.5 

million in cooperation with Tai-

wan ICDF (International Coop-

eration and Development Fund), 

which will finance a third of the 

amount. The funding will help 

the company expand its daily 

production volume of halal 

products and acquire new refrig-

erator trucks, which will help 

increase sales across the country 

during the extremely hot sum-

mer.

The cumulative EBRD invest-

ment in Turkmenistan is $305 

million in 64 projects, with the 

focus on private sector and SME 

development. Ninety percent is 

targeted to support local SMEs.

Yerlan Karin

Expert weighs in on Central Asia’s top 10 

foreign policy events in 2018

By Yenlik Tlesheva 

ASTANA – The first 2018 meet-

ing of the Kazakhstan Council on 

International Relations (KCIR), 

held  Jan. 8, involved a discussion 

by experts of the top 10 significant 

events which will have important 

implications for the political and 

economic development, stabil-

ity and security of Central Asia in 

2018.

Council Chair Yerlan Karin, one 

of the nation’s leading political 

analysts, highlighted the following 

events as setting the trends in the 

region:

First, a stable foundation set in 

2017 will allow countries on av-

erage to achieve 2.7 percent eco-

nomic growth in 2018. Depending 

on specific dimensions of internal 

and external factors, the average 

growth rate per country will vary. 

A projected modest increase in oil 

prices and U.S. Federal Reserve 

decisions are among the common 

external triggers.

Second, communication among 

Central Asian states that has sig-

nificantly  increased  in  2017  may 

lead this year to the first high-level 

gathering of Central Asian lead-

ers since 2005. Although bilateral 

cooperation will remain a driving 

partnership force in the region, the 

perspective itself may signal the 

revitalisation of regional coopera-

tion.

Third, given the strategic rela-

tionships between Russia and the 

Central Asian states in security, 

politics and economy, campaign 

rhetoric and statements rather 

than the Russian election out-

come will be important in that it 

will shape, expressly or by impli-

cation, Moscow’s further actions 

in the region.

Fourth, the return of Central 

Asian militants from Syria in-

creases the terrorist threat in the 

region. Approximately 5,000 for-

eign  fighters  from  Central  Asia 

have fought in Syria and Iraq, with 

about 500 having already returned 

home. This trend will intensify as 

the situation in Syria and Iraq con-

tinues to change. The involvement 

of Central Asian natives in terrorist 

activities abroad will have serious 

security implications in Central 

Asia. In 2017, they committed sev-

eral terroristic attacks on foreign 

soil, including Russia. This fact, 

along with sleeper cells of extrem-

ists already existing in the region, 

adds up to security vulnerabilities 

in the region and the world, thus 

keeping the fight against terrorism 

on the region’s agenda.

Fifth, in 2017, the world has 

seen a worsening of the political 

and military situation in Afghani-

stan, reaching the highest human 

toll since 2001. The Taliban de 

facto controls 11 percent of the 

country’s territory, claiming its au-

thority over 29 percent. The devel-

opments in Syria lead to the acti-

vation of ISIL/ISIS in that country, 

which has already claimed to be 

the perpetuator of terrorist attacks 

committed last month in Kabul 

and other Afghan locations/sites. 

In light of such events, the world 

might see a new U.S. strategy in 

Afghanistan.

Sixth, Central Asia will be mov-

ing towards more digitalisation, as 

relevant state programmes in Ka-

zakhstan and Kyrgyzstan were an-

nounced earlier.

Seventh, the Central Asian 

population exceeded 70 million in 

2017, marking a turning point in 

the demographic structure of the 

region. According to UN data on 

aging, some countries in Central 

Asia are experiencing the growth 

of life expectancy. The age struc-

ture of the Kyrgyz and Uzbek pop-

ulations changed last year, as the 

proportion of people aged 65 and 

over has grown significantly. This 

is associated with increasing life 

expectancy and a declining mor-

tality rate. At the same time, the 

younger age groups will continue 

growing and by 2018 their share 

is expected to be 30 percent. As a 

result, the demographic changes in 

the region will be another of the 

year’s important developments.

After its latest enlargement in 

2017, the Shanghai Cooperation 

Organisation (SCO) leaders’ sum-

mit will bring together eight coun-

tries and 40 percent of the world’s 

population for a meeting in China, 

making it an essential occasion and 

No. 8 of the top 10 events. Con-

sidering China’s foreign policy 

efforts in recent years, this event 

may serve as a new platform for 

China to advocate its initiatives.

Ninth, in January 2018 Kazakh-

stan is tasked with the UN Secu-

rity Council (UNSC) presidency 

with a programme focusing on 

Central Asia. The country seeks 

to advance cooperation issues and 

be the region’s voice at the venue. 

This historic event for Kazakh 

foreign policy, along with non-

permanent UNSC membership for 

2017-2018, is expected to enhance 

the country’s diplomatic mediation 

capacity.

Last but not least, 2018 might 

be a year for increased water secu-

rity awareness in the region. This 

year marks the 20th anniversary 

of the establishment of the Inter-

national Fund for Saving the Aral 

Sea. Signing of the the agreement 

on the status of the Caspian Sea, as 

well as launching the Rogun Dam 

Project, are expected this year.

KCIR was set up in early 2017 as 

a non-profit think tank specialising 

in Kazakhstan’s foreign policy and 

international affairs. Headquar-

tered in Astana, it aims to consoli-

date local experts in international 

affairs and serve as a resource for 

its members, government officials, 

journalists and others to help them 

better understand the world and 

the foreign policy choices fac-

ing Kazakhstan and Central Asia 

countries. The members include 

elected officials, cabinet ministers, 

Parliament members and leading 

foreign policy experts.

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