EIB commits major investment to boost sustainable development in Central Asia

(MENAFN) On Friday, the European Investment Bank (EIB) formalized four memorandums of understanding (MoUs) during the inaugural EU-Central Asia Summit, committing €365 million (around $400 million) to enhance transportation, water management, and climate resilience efforts in Kyrgyzstan, Tajikistan, and Uzbekistan.

The initiatives are anticipated to promote infrastructure expansion, safeguard the environment, and stimulate private sector growth throughout the region.

The projects are part of the EU’s Global Gateway strategy, envisioned to mobilize around €1 billion in total investment, showcasing the EU's objective of promoting sustainable and resilient infrastructure in strategic global regions. This investment aims to transform local economies by fostering integration and increasing competitiveness.

Specifically, Kyrgyzstan will receive €50 million channeled through the State Development Bank to facilitate infrastructure investments.

Tajikistan is slated to receive €100 million to bolster sustainable transport along the crucial Trans-Caspian Corridor.

Uzbekistan will benefit from €175 million allocated to water management projects, including initiatives focused on the Aral Sea, in collaboration with the French Development Agency. An additional €40 million will be directed towards supporting small-scale transport initiatives through Uzbekistan’s Microcreditbank.

In a move to further strengthen its presence in the region, the EIB also signed a Host Country Agreement to establish a regional office in Uzbekistan. Furthermore, the bank has initiated discussions with Turkmenistan regarding a framework agreement that could pave the way for future operations in the country.

“This summit underscores the European Union and Central Asia’s shared commitment to deepening our mutually beneficial cooperation,” stated EIB Vice-President Kyriacos Kakouris, who is responsible for overseeing the bank’s activities in the region.

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