BAKU, Azerbaijan, September 29. The Asian Infrastructure Investment Bank (AIIB) has approved projects for Uzbekistan worth over $3 billion, making its investment portfolio the largest in Central Asia, AIIB’s Chief Investment Officer Konstantin Limitovskiy told Trend in an exclusive interview.
“On the sovereign side, our portfolio includes projects in local road rehabilitation, water supply, and urban infrastructure, designed to improve connectivity and resilience. On the private side, AIIB has financed major renewable projects in partnerships with developers like ACWA Power and Masdar under long-term power purchase agreements (PPAs),” Limitovskiy emphasized.
He discussed the recently unveiled initiative pertaining to the Karakalpakstan and Khorezm Local Roads Network Reconstruction Project.
“One of the pivotal undertakings in the transportation domain is the recently unveiled Karakalpakstan & Khorezm Local Roads Network Reconstruction Project. This initiative is structured in a multi-phase approach, and we have successfully secured funding for the initial phase. The comprehensive initiative encompasses a strategic deployment across 14 districts within the Karakalpakstan jurisdiction and 10 districts in the Khorezm region, prioritizing the development of climate-resilient transportation infrastructure, advanced drainage systems, and enhanced safety protocols,” he noted.
Subsequently, he transitioned to the second phase of the strategic operational framework.
“Simultaneously, strategic initiatives are being mobilized for the Bukhara Road Network Enhancement Project (Phase II), aimed at optimizing roughly 160 kilometers of the M37 transnational thoroughfare. This initiative encompasses contemporary pavement frameworks, advanced transportation management systems, and comprehensive technical evaluations, with a projected capital allocation of approximately $150 million. The execution strategy will unfold in sequential stages, with anticipated finalization projected within the intermediate timeframe,” the Chief Investment Officer added.
Limitovskiy also noted that at the policy level, the ‘Green and Resilient Market Economy Program of Uzbekistan’ is being prepared, with funding of up to $500 million. The program, as he noted, aims to support institutional reforms in areas such as energy efficiency, state-owned enterprise restructuring, the introduction of “green” procurement, and the development of a national carbon credit and monitoring system.
“On the energy side, AIIB is reviewing support for the CEEC Uzbekistan BESS Green Loan, an initiative of up to $150 million to finance a portfolio of utility-scale battery energy storage systems. This will enhance grid flexibility and support the integration of renewables into Uzbekistan’s electricity mix,” he emphasized.
According to him, although these initiatives are not formally considered public-private partnerships (PPPs), they mobilize significant private capital and contribute to diversifying Uzbekistan’s energy mix.
“AIIB remains open to contributing to the projects that align with the country’s development targets and the bank’s thematic priorities,” he noted.
In the context of fiscal frameworks, Limitovskiy elucidated that for public sector initiatives, extended-duration credit facilities on competitive parameters are made available, whereas for the private sector, non-sovereign debt instruments, equity infusions, and risk mitigation guarantees are proffered. The Bank also actively employs co-financing with multilateral development banks and commercial lenders to scale up projects, as well as blended financing and technical assistance to address early-stage challenges and prepare projects for financial closure.
“Depending on the complexity of a program, AIIB may use phased financing, releasing funds as key milestones are achieved, combine policy-based and investment financing instruments, or develop blended models,” the CIO concluded.
“Over the next few years, AIIB’s portfolio in Uzbekistan will continue to expand. All projects combine infrastructure delivery with institutional strengthening, aligning with the country’s national development priorities and climate transition agenda,” Limitovskiy concluded.