BAKU, Azerbaijan, August 19. 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.
The EBRD also deepens bilateral ties. "We have a memorandum of understanding with the World Bank Group to enhance collaboration and respond to global challenges more effectively together," Ozhan noted.
Partnerships and flagship projects
The Bank works closely with peers to co-finance strategic projects. These partnerships have already delivered concrete results across Central Asia. With AIIB, the EBRD co-financed the first major public-private partnership (PPP) in the region’s healthcare sector - a 630-bed multidisciplinary hospital in Kazakhstan.
With the Asian Development Bank (ADB), the EBRD supported upgrades to a vital highway in Tajikistan’s Khatlon region. Collaboration with the International Finance Corporation (IFC) has also yielded a significant impact. "We co-invested in Uzbekistan’s first digital bank, TBC UZ, and supported the construction of a new airport terminal in Almaty," Ozhan said.
In Kazakhstan, the EBRD partnered with the Islamic Development Bank to co-finance the 66-kilometer BAKAD ring road around Almaty - the largest PPP project in the country and the wider Central Asian region. The same partnership also delivered a 200 MW solar power plant and a 501 MWh battery energy storage system (BESS) in Uzbekistan’s Tashkent region. Another milestone project, jointly financed by the EBRD and ADB, is the modernisation of Almaty’s Combined Heat and Power Plant 2. "This project facilitates the full replacement of coal with natural gas and will result in an immediate impact on pollution and air quality," Ozhan noted.
Climate finance and policy work
Climate finance is also a major focus. 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 - including $42 billion for adaptation - with a goal to mobilize $65 billion from the private sector.
Beyond finance, MDBs are engaging in joint policy work on issues like decarbonization, legal reform, capital market development, and privatization support. Ozhan concluded: "Through these collaborations, we are not only scaling up investment, but also strengthening institutions and creating real, lasting impact on the ground".
EBRD priorities in Kazakhstan
Last year, the EBRD more than tripled its annual investment volume in Kazakhstan, signing 25 projects worth 913 million euros. "The EBRD stands ready to continue the pace of its investment in Kazakhstan," he said.
A central focus is the Trans-Caspian International Transport Route (TITR), the so-called Middle Corridor, where Kazakhstan plays a pivotal role. "Kazakhstan should upgrade its connector roads and railways, modernise border crossings and eliminate unnecessary barriers to trade and transportation," Ozhan said. The bank is supporting state-owned and private companies providing transport and logistics services along the corridor to boost regional connectivity.
The bank’s current five-year strategy for the country, adopted in 2022, focuses on three pillars: fostering private sector competitiveness and governance; supporting the country’s green transition; and promoting economic inclusion and gender equality.
Kazakhstan’s ambitious National Infrastructure Plan (NIP) through 2029 - totaling over $81 billion in energy, transport, digital, and water infrastructure - is a key focus for EBRD support. "We are already actively contributing to this plan," Ozhan said, citing examples like the Aktobe wastewater treatment facility and a project with KEGOC to integrate West Kazakhstan’s power system into the national grid.
During the recent visit of EBRD President Odile Renaud-Basso to Kazakhstan in June 2025, the bank signed an agreement with KazAvtoZhol national road operator to finance the reconstruction of a 234 km section of road in Western Kazakhstan. "It will transform the single-carriageway category-II road into a dual-carriageway category-I road," Ozhan said, adding that the route is part of the strategic Western Europe–Western China corridor.
Looking ahead, 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 for these efforts.
Economic outlook and investment strategy
According to the EBRD’s May 2025 forecasts, Kazakhstan’s GDP is expected to grow 4.9% in 2025 and 4.5% in 2026, supported by higher oil production and fiscal stimulus. "However, weaker Chinese demand for Kazakh commodities could negatively impact growth," Ozhan cautioned.
Across the wider region, Central Asia and Mongolia are projected to grow twice as fast as the EBRD average. In 2024, the Bank invested 2.26 billion euros across 121 projects in six countries.
"Kazakhstan and Uzbekistan are well-positioned to attract foreign direct investment and maximise its value," Ozhan said, stressing the shift from hydrocarbons to investments that create lasting value through infrastructure, SMEs, supply chains, and human capital.
Green transition and water security
"Every fourth inhabitant of Central Asia lacks regular access to safe drinking water," Ozhan highlighted. The EBRD recently provided a $250 million loan to Uzbekistan to modernize irrigation pumping stations.
On energy, the EBRD supports renewable auctions, storage, and coal-to-gas transitions. Kazakhstan has already installed nearly 3 GW of renewable capacity, one-third financed by the EBRD. Uzbekistan’s first 200 MW wind project with storage is also underway.
Regional connectivity and cooperation
The Bank champions transport and logistics. "Central Asia will benefit greatly if all countries upgrade connector roads and railways, modernise border crossings, and remove unnecessary trade and transport barriers," Ozhan said.
He welcomed growing regional cooperation under the "Central Asia 2040" strategy and cited the Kambar-Ata hydropower plant as an example of joint success. "When completed, Kambar-Ata will be one of the largest hydroelectric projects in Central Asia," he noted.
EBRD’s long-term commitment
"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 said.
He emphasized the Bank’s partnership with Kazakhstan, which joined 33 years ago. "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.