The Global Gateway Investors Forum for EU-Central Asia Transport Connectivity started today (29 January 2024) in Brussels.
The event brings together government officials, financing institutions, businesses and civil society from Europe, all five Central Asian countries, and beyond.
European Commission Executive Vice President Valdis Dombrovskis announced that European and international financial institutions present at the Forum will commit €10 billion in support and investments towards sustainable transport connectivity in Central Asia.
The €10 billion commitment is a mixture of ongoing and planned investments which, following extensive consultations with international partners present at the Forum, the European Commission foresees to be mobilized for sustainable transport development in Central Asia in the short term, the European Commission said in a press release.
Several major commitments were already made on the first day of the Forum, showcasing the immediate impact of this initiative. These include:
- €1.47 billion loans from the European Investment Bank (EIB) to Kazakhstan, Kyrgyzstan, Uzbekistan, and the Development Bank of Kazakhstan. These loans, facilitated by European Commission guarantees, will support various essential projects.
- €1.5 billion investment pipeline announced by the European Bank for Reconstruction and Development (EBRD) for Kazakhstan. This pipeline, focusing on transport connectivity projects in Central Asia, will be further developed and materialized in the near future.
The Investors Forum brings together high-level representatives from the European Commission, EU Member States, Central Asia as well as Caucasus countries and Türkiye. Other participants include G7 nations, financial institutions and the private sector.
The Investors’ Forum builds upon the findings of the June 2023 study on Sustainable Transport Connections between Europe and Central Asia, which was led by the European Commission and conducted by the European Bank for Reconstruction and Development (EBRD). The study identified 33 critical infrastructure needs and 7 vital actions for enhancing the efficiency and economic appeal of trans-Caspian transport networks. These findings were presented at the 2nd EU-Central Asia Economic Forum in May 2023, paving the way for concrete action.
Since the study’s release, the EU has actively pursued strategies to implement its recommendations. With “Team Europe” and numerous international partners on board, a collective €10 billion commitment has been secured. The Investors’ Forum serves as a vital platform to unlock further funding and propel the development of crucial transport networks in Central Asia.
Quotes
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People: In the spirit of collaboration and progress, the Investors’ Forum marks a pivotal step towards realising the ambitious vision of the Trans-Caspian Transport Corridor. Together, we strive to achieve a faster, more reliable connection between Europe and Central Asia, fostering stronger ties and opening new avenues for cooperation and trade. I am very pleased to see that international partners present today are committing to provide €10 billion in investments to develop sustainable transport connectivity in Central Asia, including new European Commission and European Investment Bank commitments of €1.5 billion, with more to come through the Commission’s open architecture for investment guarantees.
Margaritis Schinas, European Commission Vice-President: The Investors’ Forum is an important milestone in the EU-Central Asia partnership, bringing together public and private investors from both regions to kickstart the work on the Trans-Caspian Transport Corridor to link Europe and Central Asia in a fast, safe and sustainable way, in line with the EU Global Gateway strategy. This ambitious transport network will support economic growth, create local jobs, connect people to services, while contributing to regional integration.
High Representative/Vice-President Josep Borrell: In a world of increasing uncertainties, there is a need for closer partnerships to address global challenges. Central Asia has become a crucial partner for the EU with its vast potential notably in terms of security and connectivity, as well as energy and resource diversification. To be better prepared to face today’s challenges, both Europe and Central Asia need to strengthen their resilience and diversify their political and economic relationships. Today’s Investors Forum is an important step in that direction.
Adina Vălean, Commissioner for Transport: A modern Trans-Caspian Transport Connecting the Central Asian countries is the cornerstone of our efforts to promote increased regional economic integration and further growth in the region, as well as better connections with Europe. We have identified 33 physical infrastructure investment needs, ranging from modernising railways to increasing port capacity and fleet renewal. Today’s Investor’s Forum demonstrated the large interest from both institutional and private investors in supporting these projects. ///nCa, 29 January 2024