Highlights:
- ADB will continue to keep strong focus on energy sector in Turkmenistan
- ADB stands ready to help Turkmenistan in elaborating the Strategy for Long-term Carbon Neutrality
- The Bank is also working on preparing a Roadmap for the low-carbon transition in Turkmenistan in power sector.
- ADB is ready to support Turkmenistan’s efforts to reduce greenhouse emissions including methane emissions.
- Sovereign investment projects that have been committed or are planned for Turkmenistan vary from $20 million to $500 million in size.
For the purpose of future engagement in Turkmenistan, the Asian Development Bank is in the process of preparing next Country Partnership Strategy. This is a strategic document, which defines how the ADB will engage with Turkmenistan for 2024-2028, told Artur Andrysiak, ADB Country Director for Turkmenistan during his presentation during the second day of the International Oil and Gas of Turkmenistan Conference (OGT 2023).
Here are some key moments from the Andrysiak’s report which covered the present and future tracks of Turkmenistan-ADB cooperation:
The Bank’s overall objective will be transforming Turkmenistan into more sustainable, climate-resilient, and competitive economy.
ADB will continue to keep strong focus on energy sector:
- Pillar 1-Supporting green transformation to a sustainable and climate-resilient economy
- Pillar 2-Strengthening economic competitiveness through diversification, and private sector and human development
- Pillar 3-Promoting structural reforms and institutional development
In the current context of global climate commitments, from ADB’s prospective all Bank’s operation will have to be aligned with the Paris Agreement. ADB will continue to projects in the natural gas sector, as the natural gas is an important transition fuel and important in reducing emissions in the region by supporting move away from the coal.
ADB will continue to support projects in the natural gas areas in midstream and downstream areas. These investments would be aligned with the Long-term Carbon Neutrality Plan.
As for ADB’s support for energy sector of Turkmenistan, Andrysiak said that ADB will continue long-term engagement in the energy sector in Turkmenistan, will focus on reducing inefficiency and accelerating low-carbon transition, will invest in energy efficiency and renewable energy, low-carbon pilot projects, and reforms through possible policy-based loans.
Investments in Turkmenistan
- Converting Open Cycle Gas Plants to high efficiency Combined Cycle Gas Turbines
- Modernizing the Power grid building on the ongoing engagement in power distribution
- Increasing the share of renewable energy by exploring the solar and wind power potential
- Supporting exports of electricity and gas, and diversification of markets
Technical Assistance in Turkmenistan
- Support for strengthening the institutions, capacity building and reforms
- Preparation of studies, strategies and roadmaps
- Support for introduction of new technologies
- Facilitation of south-south cooperation, partnerships, and knowledge exchange
- Support under the Central Asia Regional Economic Cooperation Program (CAREC) ADB
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The multilateral development banks require that when financing the projects in the country, those projects have to be aligned with the Paris Agreement. In this regard, ADB requires that the countries have a long-term strategy demonstrating how they will address their climate challenges and will move towards the carbon neutrality.
Looking for Turkmenistan, the country has NDC in place, also has National Climate Change Strategy (2022) and preparing National Adaptation Plan.
From ADB prospective, Turkmenistan still needs Strategy for Long-term Carbon Neutrality. And ADB is ready to support Turkmenistan in developing this document, provide technical assistance and expert process.
The Bank is also working on preparing a Roadmap for the low-carbon transition in Turkmenistan in power sector.
This document will provide an analysis of existing and future supply and demand projections for the power sector under different scenarios up to 2070.
Roadmap will outline steps to deliver enhanced energy efficiency measures and renewable energy expansion towards low-carbon transition in the power sector in line with Turkmenistan’s policies and commitments.
ADB is ready to support Turkmenistan’s efforts to reduce greenhouse emissions including methane emissions.
ADB stands ready to provide technical assistance and capacity building activities, support assessments and developments of strategies, support preparation of possible future investment projects including pilot projects, and provide financing for viable investment projects.
In terms of investment projects, the Bank is very flexible. ADB uses a range of financial modalities, including loans and guarantees, as well as facilitate public-private partnerships and is flexible in terms of loan size it can provide to Turkmenistan.
Sovereign investment projects that have been committed or are planned for Turkmenistan vary from $20 million to $500 million in size.
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ADB is working with Turkmenistan since 2000 and resident mission was established in 2010.
To date, ADB committed $625 million in two investment projects only (1 completed, 1 ongoing) and $11 million in technical assistance to support institutional strengthening and capacity building in energy sector as well as many other sectors.
- Completed: North-South Railway Project ($125 million)
- Ongoing: National Power Grid Strengthening Project ($500 milion)
Currently, ADB is preparing projects in such sectors as:
Finance: Building Capacity of SME Exporters
Health: Improving Nursing Quality and Capacity Project
Transport: Trans-Turkmenistan Railway Modernization Project
Energy: Renewable Energy and Energy Efficiency Project
///nCa, 26 October 2023
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