BAKU, Azerbaijan, October 4. We are within themeans of creating of a brand new nation technique, which, as soon as ready and accredited, can be a public doc, Andi Aranitasi,the newly appointed Head of the European Bank for Reconstructionand Development (EBRD) workplace in Uzbekistan advised Trend in an unique interview.
“Following the reengagement with the nation in late 2017, the EBRD accredited its 5-year nation technique in 2018. It recognized the next operational and strategic priorities for our work in Uzbekistan,” he stated.
According to Aranitasi, these priorities included the enhancement of competitiveness by strengthening the function of the non-public sector’s function within the financial system, and likewise the promotion of
inexperienced vitality and useful resource options throughout sectors. The help for elevated regional and worldwide cooperation and integration has additionally been one of many pillars of the Bank’s cooperation with Uzbekistan.
“The EBRD technique for Uzbekistan acknowledged the necessity to strengthen the nation’s path to reform, increase the function of civil society, present larger freedom to mass media and promote ladies’s
entrepreneurship. Our Bank continued engaged on the development of the funding local weather in Uzbekistan by facilitating the exercise of the Foreign Investors’ Council, which is serving as a platform for dialogue between overseas traders and the authorities fostering reforms,” he stated.
Aranitasi additionally added that the EBRD has additionally been offering help for Uzbekistan’s inexperienced transition. The Bank’s funding is contributing to a long-term decarbonization plan that the EBRD and the federal government of Uzbekistan collectively developed and which goals to obtain a carbon impartial energy sector by 2050.
Further talking, the official famous that, in 2023, the EBRD has already organized the $205 million monetary bundle for the development of three greenfield solar energy crops with complete put in capability of almost 900 MW in Uzbekistan.
“Once commissioned, the three initiatives are anticipated to generate as much as 2,200 GWh of electrical energy, offering energy to over 1 million houses in Uzbekistan, and lowering annual CO2 emissions by as much as 1.2 million tons,” he stated.
According to Aranitasi, the EBRD, the operations of which turned totally aligned with the Paris Agreement, is offering help for Uzbekistan’s inexperienced transition.
“Last yr we financed main renewable vitality initiatives corresponding to 1 GW wind energy crops within the Bukhara area (largest renewable funding for the Bank throughout all its economies) and a 500 MW
greenfield wind energy plant within the Navoi area of Uzbekistan,” he famous.
The Bank has additionally financed the development of a 100 MW wind energy plant (WPP) in Karakalpakstan by offering a mortgage to a serious worldwide developer ACWA Power, Aranitasi stated, stating that this challenge is a key milestone for the EBRD’s cooperation in Uzbekistan, because it was tendered as a part of the EBRD supported 2 GW wind public sale program within the nation.
“Uzbekistan may be very formidable in its inexperienced vitality transition and we’re delighted to see that Uzbekistan lately elevated its renewable vitality era goal from 12 GW all the best way as much as 25
GW by 2030. The EBRD stays a devoted associate to Uzbekistan in its renewable vitality initiatives and proceed to help sustainable financial development,” he stated.
With regard to cooperation between Uzbekistan and the Bank in the transport sector, Aranitasi acknowledged that the EBRD can be supporting the rehabilitation of the nationwide street community of the nation, significantly within the Khorezm area, in addition to the enlargement of logistic hubs along with non-public sector companions.
“The EBRD is facilitating the enhancement of public-private partnership setting through help for the Tashkent-Samarkand street growth. Our Bank can be planning to help the Electric Vehicle Charging Infrastructure Strategy as a part of the post-signing technical help below Khorezm regional roads
challenge. We are additionally exploring potential cooperation with the Uzbek Railways on the reforms agenda, electrification and the railcar fleet upgrades,” he stated.
The official identified that Uzbekistan is actively creating transport hyperlinks with all of its neighbors, however as a landlocked nation, it must depend on transit routes by different international locations to current itself as viable transit choice.
“Uzbekistan is at present pursuing multimodal transportation (street and rail) from China, by Kyrgyzstan by street, then onwards by the Trans-Afghan route or by Turkmenistan and Iran by street. Other choices embrace using Middle Corridor or the Turkmen port of Turkmenbashi,” he stated.
In this regard, Uzbekistan Railways, the nation’s primary freight provider, should be reformed to enhance effectivity, the official stated, noting that important funding can be required to electrify sections of railway within the Fergana Valley, between the key cities of Bukhara and Khiva and elsewhere. The similar goes for
the rehabilitation of roads throughout the nation. In parallel, Uzbekistan ought to modernize its rolling inventory and enhance its customs providers to make sure clean transit and transport.
At the identical time, as Aranitasi identified, the route by Kazakhstan to its ports on the Caspian Sea appears to be most secure choice for cargo travelling by Uzbekistan.
“However, there are a number of inefficiencies at border crossing factors between the 2 international locations and bottlenecks within the ports of Aktau and Kuryk. What is extra, the Caspian Sea will not be at all times navigable, so the Uzbek authorities are eager to discover alternate options,” he defined.
Aranitasi additional elaborated on the Bank’s help for monetary sector of Uzbekistan, noting that the general potential for the growth of this discipline in Central Asia may be very excessive.
“This is especially related for Uzbekistan given the scale of its inhabitants and somewhat low penetration of banking providers. The Bank is supporting the banking sector in addition to non-banking monetary establishments corresponding to insurance coverage, leasing firms and microfinanciers of Central Asia in a number of methods, together with the help of commerce and provision of funding for use to enhance entry to finance for micro, small and medium-sized enterprises and fairness investments in native banks and non-bank establishments,” he defined.
According to Aranitasi, particular efforts are put in place to help the inexperienced, inclusive and digital path of associate monetary establishments by specifically designed applications together with Women in Business and Youth in Business.
“They promote ladies entrepreneurship and create work alternatives for younger businessmen. The most up-to-date program is focusing on digitalization of women-led/woman-owned companies,” the
official stated.
Green agenda is equally necessary for the EBRD, Aranitasi famous, including that the Bank’s Green Economy Financing Facility (GEFF) Uzbekistan Framework will not be solely encouraging inexperienced financing however additionally serving to the Central Bank of Uzbekistan and partner-banks to construct their local weather threat mitigation capability consistent with the Paris Agreement the necessities.
Secondly, the EBRD is implementing capability constructing advisory initiatives aimed toward sharing greatest practices in banking sector of the Central Asia with the native monetary establishments, the EBRD head of workplace stated.
Further talking, Aranitasi famous that the EBRD partner-banks take part in regional and worldwide coaching and networking occasions.
“This helps them keep in contact with the latest international business traits and change views and experiences. We proceed selling environmental, social and governance (ESG) requirements and good company local weather governance (CCG) amongst monetary establishments within the area. They will develop and implement pointers and rules to help the area’s transition to a low-carbon and climate-resilient financial system,” he defined.
Aranitasi identified that the EBRD helps monetary establishments in adopting a strategic method to addressing ESG and climate-related dangers, in addition to to reinforce CCG. The Bank at present has 11 monetary companions in Uzbekistan and actively interact with them in inexperienced and inclusive lending in addition to in help of interregional and worldwide commerce.
Source: Business Land
