Almaty: In a world facing increasingly complex development challenges, multilateral development banks (MDBs) are joining forces to strengthen their collective impact, said EBRD Managing Director for Central Asia and Mongolia Huseyin Ozhan in an exclusive interview with Trend. "In 2024, ten MDBs, including the EBRD, announced joint steps to work more effectively as a system and increase the impact and scale of their work to tackle urgent development challenges," he told Trend. The collaboration was formalized under a G20-endorsed roadmap for MDB reform, aimed at addressing regional issues, creating jobs, and advancing the SDGs.
According to Trend News Agency, the EBRD is deepening bilateral ties and has a memorandum of understanding with the World Bank Group to enhance collaboration and respond to global challenges more effectively. The Bank works closely with peers to co-finance strategic projects in Central Asia. With the AIIB, the EBRD co-financed a 630-bed multidisciplinary hospital in Kazakhstan, marking the region's first major public-private partnership in the healthcare sector. Furthermore, the EBRD and ADB supported highway upgrades in Tajikistan's Khatlon region, and partnered with IFC on projects like Uzbekistan's first digital bank, TBC UZ, and the construction of a new airport terminal in Almaty.
In Kazakhstan, the EBRD and the Islamic Development Bank co-financed the 66-kilometer BAKAD ring road around Almaty, the largest PPP project in the country and Central Asia. Additionally, they delivered a 200 MW solar power plant and a 501 MWh battery energy storage system in Uzbekistan's Tashkent region. A significant project, modernizing Almaty's Combined Heat and Power Plant 2, was jointly financed by the EBRD and ADB to replace coal with natural gas, improving air quality and reducing pollution.
Climate finance is a major focus for the EBRD. At COP29 in Baku, MDBs issued a joint statement outlining financial commitments to support ambitious climate goals. According to Ozhan, MDBs estimate their annual collective climate financing for low- and middle-income countries will reach $120 billion by 2030, with a goal to mobilize $65 billion from the private sector. Beyond finance, MDBs are engaging in joint policy work on decarbonization, legal reform, capital market development, and privatization support.
Last year, the EBRD significantly increased its annual investment volume in Kazakhstan, signing 25 projects worth 913 million euros. The bank's current five-year strategy for Kazakhstan focuses on fostering private sector competitiveness and governance, supporting the green transition, and promoting economic inclusion and gender equality. A central focus is the Trans-Caspian International Transport Route, where Kazakhstan plays a pivotal role. The EBRD supports modernizing infrastructure and removing trade barriers to enhance regional connectivity.
The EBRD is committed to investing at least 2 billion euros over the next five years to modernize energy and utility infrastructure in Kazakhstan and mobilize further financing. According to the EBRD's May 2025 forecasts, Kazakhstan's GDP is expected to grow 4.9% in 2025 and 4.5% in 2026. Across Central Asia and Mongolia, growth is projected to be twice as fast as the EBRD average. "Kazakhstan and Uzbekistan are well-positioned to attract foreign direct investment and maximize its value," Ozhan stated.
Highlighting water security challenges, Ozhan noted that every fourth inhabitant of Central Asia lacks regular access to safe drinking water. The EBRD recently provided a $250 million loan to Uzbekistan for modernizing irrigation pumping stations. On energy, the EBRD supports renewable auctions and transitions from coal to gas, with significant renewable projects underway in Kazakhstan and Uzbekistan.
The EBRD is also focused on enhancing regional connectivity and cooperation. "Central Asia will benefit greatly if all countries upgrade connector roads and railways, modernize border crossings, and remove unnecessary trade and transport barriers," Ozhan said. He praised the "Central Asia 2040" strategy and cited the Kambar-Ata hydropower plant as a successful example of regional cooperation.
"Generally speaking, institutions like the EBRD work well in times of crisis. Where other investors are holding back in times of uncertainties, we step up to support economies," Ozhan emphasized. He highlighted the EBRD's long-standing partnership with Kazakhstan, a relationship spanning 33 years. "Today, more than ever, you need long-term reliable partners, which can support your most ambitious plans both financially and intellectually. I'd like to think that the EBRD is offering just that," he concluded.