EIB Global, the European Union’s bank for long-term investments outside the EU, has signed memorandums of understanding for project co-financing with Kazakhstan, the Kyrgyz Republic, Uzbekistan, and the Development Bank of Kazakhstan for a total of €1.47 billion, the EU Delegation to Uzbekistan reports.
This significant commitment was announced at the EU-Central Asia Investors Forum held in Brussels on 29 January 2024.
The EIB’s co-financing, provided under favorable terms, will serve as a catalyst for mobilizing additional capital, aiming to reach a total of €3 billion in support for sustainable transport projects across the region.
This initiative aligns with the EU’s priorities outlined in the EU-Central Asia Roadmap and contributes to the goals of the Global Gateway strategy, both of which emphasize infrastructure development and economic modernization within and beyond the European Union.
EIB Vice-President Teresa Czerwińska said: “EIB investment will improve people’s quality of life and strengthen economic growth and employment opportunities. It will help to bring people closer together and foster social and gender equality. Transport is the backbone of the modern economy, facilitating personal mobility and enabling goods, capital and services to be exchanged between the countries of the region. In addition, investing in sustainable transport is key to addressing climate impact and enhancing the resilience of transport networks.
European Commission Executive Vice President Valdis Dombrovskis stated: “Today’s Memoranda of Understanding represent an opportunity for both the EU and Central Asian countries. We are committed to strengthening our trade relations in a way that benefits both regions. Today’s €10billion overall commitment by international partners will help to develop connectivity, boost trade exchanges and sustainable transport projects, and take this partnership to the next level.”
Minister of Transport of the Republic of Kazakhstan Marat Karabayev stated: “Given the relevance of inland corridors between Europe and Asia, we need to implement a number of infrastructural projects to make freight transportation efficient. This memorandum of understanding will serve to drive the implementation of major interregional cooperation initiatives.”
Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic Bakyt Torobaev added: “The Memorandum signed today is an important element of our cooperation aimed at strengthening interregional transport connectivity. I express confidence that through joint efforts, we will soon launch significant and large-scale projects that will make an additional contribution to the development of our country’s transport infrastructure. I would like to emphasize that the Kyrgyz Republic holds one of the most advantageous geographical position on trade routes and has great potential for connecting the East and the West, as well as the North and the South, and is ready to serve as a transit hub.”
Minister of Transport of the Republic of Uzbekistan Ilkhom Makhkamov said: “This agreement marks a new era of progress for Uzbekistan and our neighbors. As we sign a MOU, we are paving the way for transformative progress in the transport sector. This collaboration is our shared commitment to enhance the sustainable transport connections between Europe and Central Asia. Through this partnership, we are investing not only into our infrastructure but also in the prosperity and well-being of our people. Together, we will create bridges that will carry us towards shared goals of development and sustainable future for all”.
Deputy Chairman of the Management Board of the Development Bank of Kazakhstan (DBK) Botagoz Abisheva noted: “Within the framework of cooperation with the EIB, an agreement has been achieved for the potential provision of a facility to DBK for a total amount of up to €320 million. These funds are designed to support projects across diverse sectors of the economy, with a focus on developing sustainable transport infrastructure connecting Europe and Central Asia. This cooperation is intended to enhance trade relations between the two regions.”
About the European Investment Bank
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States.
EIB Global is the EIB Group’s specialized arm dedicated to operations outside the European Union, and a key partner of the EU’s Global Gateway strategy. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society.
Since the start of EIB operations in Central Asia in 2011, the EU bank has signed loans amounting to €1.1 billion to date in Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, supporting multiple infrastructure and economic sectors such as energy efficiency, renewable energy, water management and improved access to finance for small businesses. ///nCa, 30 January 2024