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EBRD names investment volume for Central Asia's water sector development (Exclusive)

Economy Materials 1 March 2025 08:00 (UTC +04:00)
EBRD names investment volume for Central Asia's water sector development (Exclusive)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, March 1. The European Bank for Reconstruction and Development (EBRD) is actively addressing decades of underinvestment in municipal water supply and treatment across Central Asia, with a strong focus on private-sector involvement and sustainable infrastructure development, said Huseyin Ozhan, EBRD Managing Director for Central Asia, in an interview with Trend.

"In Kazakhstan, our successful work with Vodnye Resoursy Marketing (VRM), more widely known as the Shymkent Water Company, perfectly illustrates why the EBRD is such a strong advocate of private-sector involvement in the provision of municipal services," the managing director said.

According to Ozhan, Shymkent has become a benchmark for the region due to its efficient water management. "Thanks to VRM’s efforts, Shymkent, with 1.2 million residents, became the first city in Kazakhstan to install a water meter for every consumer. User habits have changed as a result: personal daily water consumption has decreased from 456 liters 27 years ago to 150 liters now. The water savings achieved during this period will enable Shymkent to meet the needs of its population for another 20 years," he noted.

The EBRD has supported VRM since 2009, financing five projects totaling 60 million euros. "With the Bank’s financial assistance, VRM has introduced an automated network monitoring system, improved power supply at 12 pumping stations, constructed 11 electrical substations, and built a European Union standards-compliant biogas facility - the only one of its kind in Central Asia - which helps VRM meet all of its thermal energy needs. Water losses from the system have declined from 42 percent to 17 percent," Ozhan highlighted.

Beyond Kazakhstan, the EBRD is also making significant investments in water infrastructure across Uzbekistan, Tajikistan, and Kyrgyzstan. "In the region’s two largest economies, Kazakhstan and Uzbekistan, the EBRD has financed water and wastewater projects amounting to 255.8 million euros and 407 million euros, respectively. These include a sovereign loan of 96.4 million euros for the construction of a new wastewater treatment plant in the city of Aktobe, Kazakhstan - the EBRD’s largest municipal project in Central Asia to date," Ozhan said.

Tajikistan has also been a key focus of the Bank’s efforts. "Over the last 18 years, the EBRD has mobilized $102 million (99 million euros) in loans, donor grants, and technical cooperation funds for eight water infrastructure rehabilitation projects across the country. Following their completion, more than 1.7 million people in 21 municipalities now enjoy better access to clean and safe drinking water," Ozhan stated.

Similarly, in Kyrgyzstan, the EBRD has invested more than $196 million (190 million euros) in 31 water projects across 26 cities. "Many of these projects are being implemented under the Kyrgyz Water Sector Resilience Framework," the managing director added.

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