BAKU, Azerbaijan, October 8. The European Investment Bank (EIB) is intensifying its support for Central Asia’s shift to a low-carbon economy, focusing on reliable, secure, and affordable energy, EIB Vice-President Kyriacos Kakouris told Trend in an exclusive interview.
"At the EIB, we assess energy investments in Central Asia through the lens of our energy lending policy and the European Union’s Global Gateway strategy. Our priority is to support the region’s transition to a low-carbon economy while ensuring energy remains reliable, secure, and affordable for people and businesses," Kakouris said.
EIB Global is increasingly directing its portfolio toward renewables and energy efficiency. Kakouris highlighted partnerships with Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan to finance solar, wind, and hydropower projects, modernise electricity grids, and improve energy efficiency in housing and industry.
The bank also invests in regional infrastructure that strengthens energy security. "The CASA-1000 project is a good example, enabling surplus hydropower from Kyrgyzstan and Tajikistan to be exported to neighbouring countries," Kakouris noted.
In March 2025, the EIB signed a 200 million euro loan agreement with the Development Bank of Kazakhstan (DBK) to enhance regional connectivity and energy resilience while accelerating the shift to clean energy. “This loan provides policy-driven funding to DBK for on-lending to eligible private and public final beneficiaries in Kazakhstan’s sustainable transport, renewable energy, and other climate-related sectors,” he said.
During a visit to Bishkek last year, Kakouris reaffirmed the EIB’s commitment to the Vienna Communiqué, supporting clean energy and efficient water management in Kyrgyzstan and across Central Asia.
Tangible results are already emerging. High-voltage infrastructure under CASA-1000 connecting Kyrgyzstan, Tajikistan, and Pakistan has been completed, facilitating renewable electricity trade. The EIB contributed 149 million euros to this project, backed by a European Commission guarantee.
In Uzbekistan, the bank financed three large solar photovoltaic plants with a loan exceeding $83 million, marking one of the region’s largest combined solar outputs, along with a solar plant near Samarkand.
Looking ahead, Kakouris said the EIB is exploring co-financing in critical raw materials and green hydrogen. "We plan to launch a new initiative by the end of the year to support the preparation of green hydrogen projects. Emerging markets, including those in Central Asia, will be eligible for technical assistance under this initiative," he added.
The Trans-Caspian Corridor as a strategic gateway linking Central Asia and Europe
Further speaking, Kyriacos Kakouris pointed out that the EIB views the Trans-Caspian Corridor as a vital link connecting Central Asia and Europe. "We regard the Trans-Caspian Corridor as a strategic gateway between Central Asia and Europe, enhancing resilience, diversification and economic opportunity".
According to him, the EIB has already signed memoranda of understanding totalling nearly 1.5 billion euros with Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan to co-finance sustainable transport projects. "These agreements reflect our long-term commitment to regional connectivity," he noted.
Kakouris underlined that the bank is now moving from planning to implementation. "The 200 million euro loan with the Development Bank of Kazakhstan that I mentioned will also support transport infrastructure, aligned with the EU Global Gateway. The investment will assist Kazakhstan’s national road operator KazAvtoZhol, with its road rehabilitation program, which aims to improve connectivity and infrastructure quality nationwide. This initiative is key to making progress on the Trans-Caspian Transport Corridor project," he said.
He added that at this year’s EU-Central Asia Summit, the EIB signed four additional memoranda of understanding, three of which focus on the Trans-Caspian Corridor and are backed by European Commission guarantees.
"We are actively engaging with regional authorities to identify priority projects, conduct due diligence, and define implementation timelines. Several road investments are in the pipeline, expected to improve capacity, safety and efficiency," Kakouris said.
EIB Global’s activities in Central Asia, he emphasized, are fully aligned with the European Union’s Global Gateway strategy. "We provide technical assistance and advisory services to ensure projects are bankable, sustainable, and aligned with EU standards. We often blend EU grants with EIB loans and equity to reduce financial risk and accelerate project preparation," he explained.
The VP stressed that close collaboration with local partners is essential to achieving results. "In addition to our partnership with the Development Bank of Kazakhstan, which I have mentioned several times, we are also working closely with the Kyrgyzstan State Development Bank. Earlier this year, we signed a memorandum of understanding to support key infrastructure investments," Kakouris said.
New office to serve as hub for coordinating EIB's activities across Central Asia
Kyriacos Kakouris also reminded that the EIB is preparing to open its first Regional Representation in Central Asia, marking a new milestone in the bank’s engagement with the region.
"At the EU-Central Asia Summit, we signed a host country agreement with Uzbekistan, paving the way for opening our Regional Representation in Central Asia," Kakouris said. "We expect all administrative steps to be finalised soon and the office to become operational shortly".
According to him, the decision reflects the region’s growing importance in the EU's external engagement and the EIB's commitment to being a long-term, on-the-ground partner.
The new office will serve as a regional hub for coordinating EIB Global’s activities across Central Asia. "It will deepen our engagement under Global Gateway," Kakouris noted, adding that "having staff on the ground will strengthen cooperation with both the public and private sectors".
EIB aligns its Central Asia operations under the Global Gateway strategy
VP Kakouris pointed out that the bank is expanding its efforts in Central Asia, aligning its operations with European Union policy priorities under the Global Gateway strategy.
"As the financial arm of the EU, the EIB aligns its operations with EU policy priorities. In Central Asia, these priorities are clearly defined under the Global Gateway strategy, with a strong focus on digital connectivity, sustainable transport, critical raw materials, water, energy, and climate resilience," Kakouris said.
A recent initiative in digital connectivity highlights this approach. "A recent example is our 60 million euro financial package announced in March, supporting digital access through a partnership with SES, a European satellite provider. This initiative aims to deliver broadband internet to remote rural areas across Central Asia, improving digital inclusion for millions of people," he noted.
Looking ahead, Kakouris said the bank’s strategic priorities include advancing the Trans-Caspian Transport Corridor to strengthen regional connectivity and trade links with Europe, as well as scaling up investments in renewable energy, including solar, wind, and hydropower, alongside water management and climate adaptation.
To facilitate these projects, the EIB combines its loans with EU grants, guarantees, and technical assistance. "This blended finance approach helps reduce project risk, accelerate preparation timelines, and ensure alignment with EU environmental and social standards," Kakouris explained.
He added that the bank is actively collaborating with governments, local development banks, and private sector partners across Central Asia to identify and co-finance high-impact, sustainable infrastructure projects. "Our aim is to deliver long-term benefits for people and the planet," he concluded.