Baku, Azerbaijan, May 1
By Leman Zeynalova – Trend:
The Asian Development Bank aims to contribute to increased exports in Turkmenistan, ADB Country Director in Turkmenistan, Ahmet Cevdet Denizer told Trend.
“ADB’s strategic focus remains on diversification of the export markets for the country’s vast energy resources while at the same time assisting the country in diversifying its economic base through transport infrastructure investments to improve market connectivity, and supporting private sector development, including small- and medium-sized enterprises. The latter effort is realised through a number of projects ranging from trunk railway modernization to SME finance. The aim is to contribute to increased exports by (i) transport services via reliable outbound infrastructure [neatly] fitting [in] East-West and North-South corridors, and (ii) manufactured products through greater access to finance for private sector agents engaging in higher value-added activities,” he noted.
Denizer believes that the emphasis on exports will support stability and growth in Turkmenistan. “The earning or saving of foreign exchange will naturally help alleviate foreign currency constraints that are typical in small open economies.”
He went on to add that in 2011–2018, ADB approved $625 million in total sovereign loans to Turkmenistan, which was fully committed by the government. “Since the start of operations in the country, cumulative disbursements to Turkmenistan for lending and grants financed by ordinary capital resources and special funds have amounted to $116.3 million.”
ADB began working with Turkmenistan in 2000, and has since been helping to diversify the country’s export markets and increase its regional connectivity. Given Turkmenistan’s vast energy resources and strategic location, ADB operations focus on enhancing the country’s transport and energy sectors, with infrastructure projects fostering regional cooperation. ADB has also provided expert advice to facilitate the long-term export of power to Afghanistan.
In November 2018, ADB approved the country operations business plan, 2019–2021 for Turkmenistan. The committed lending program amounts to $150 million, with another $690 million for prospective projects to develop Turkmenistan’s transport and transit potential, promote the exporting of energy, and advance private sector operations.
---
Follow the author on Twitter: @Lyaman_Zeyn