BAKU, Azerbaijan, March 27. The European Investment Bank (EIB) considers the signing of a Framework Agreement with Turkmenistan a prerequisite for launching operational engagement in the country, Olivier Kueny, Head of the EIB’s Regional Representation for Central Asia, told Trend.
"Although our operations in Turkmenistan are currently limited until a Framework Agreement is signed, the recent mission to Ashgabat showed a clear shared interest in future cooperation. Projects that improve connectivity and strengthen digital infrastructure could play an important role in that partnership," he said.
Kueny explained that, despite current operational limitations in Turkmenistan, recent engagements demonstrated mutual interest and that connectivity and digital infrastructure projects could become a cornerstone of future cooperation once the necessary agreement is in place.
"When we will be able to engage operationally, the EIB would likely focus on supporting sustainable transport solutions, digital technologies and the application of strong environmental and social standards. Our aim is always to ensure that infrastructure projects not only improve connectivity but also contribute to long-term sustainable development," he said.
Kueny further emphasized that, once operational engagement becomes possible, the Bank would prioritize sustainable transport, digital technologies, and adherence to environmental and social standards, ensuring infrastructure investments contribute to long-term sustainable development.
"The EIB is also part of the TCTC Coordination Platform established by the EU and Central Asian countries. Through this platform, we work closely with multilateral partners to support cross-border transport and digitalisation initiatives that can deepen regional integration and support sustainable economic growth across Central Asia," he said.
Kueny added that the Bank participates in the Trans-Caspian Transport Corridor Coordination Platform, collaborating with international partners to advance cross-border transport and digitalisation projects aimed at strengthening regional integration and supporting economic growth in Central Asia.
"The EIB is actively exploring ways to support initiatives connected to the development and digitalisation of the Trans-Caspian Transport Corridor, particularly where they align with the EU’s Global Gateway strategy," Kueny said.
He noted that the Bank is examining potential areas of support for corridor-related initiatives, especially those aligned with the European Union’s Global Gateway framework.
"Water management is one of the most pressing challenges in Central Asia, and Turkmenistan is no exception. The region faces increasing pressure from water scarcity and environmental changes, making climate-resilient water infrastructure particularly important," Kueny said.
He highlighted that water management represents a key challenge across Central Asia, including Turkmenistan, where rising water scarcity and environmental pressures make resilient infrastructure increasingly important.
"The EIB has gained valuable experience in this area through projects such as the Aral Sea restoration efforts in Uzbekistan. There, the Bank supports initiatives to rehabilitate forests and water resources while improving sustainable irrigation systems. These projects show how targeted investments can help restore ecosystems while also supporting local communities and agriculture," he said.
Kueny pointed to the EIB’s experience in Uzbekistan, where it has supported Aral Sea restoration efforts, including ecosystem rehabilitation and improvements in irrigation systems, demonstrating how targeted investments can simultaneously support environmental recovery and local livelihoods.
"Looking ahead, we believe there could be similar opportunities for cooperation in Turkmenistan once a solid framework for collaboration is in place. In particular, we could explore projects related to clean power and water under the Team Europe Initiative on Water, Energy and Climate Change," he said.
He noted that future cooperation in Turkmenistan could include initiatives in the clean energy and water sectors under the Team Europe Initiative, once an appropriate cooperation framework is established.
"By building on lessons learned and best practices from across Central Asia, such cooperation could help address climate stress while supporting more integrated and sustainable development for the region," he said.
Kueny concluded that leveraging regional experience and best practices could help mitigate climate-related challenges while promoting more integrated and sustainable development across Central Asia.
"Turkmenistan has considerable potential when it comes to clean energy, particularly thanks to its abundant solar and wind resources. From the EIB’s perspective, this creates strong opportunities for supporting the country’s transition toward more diversified and sustainable energy systems," he said.
Kueny stressed that Turkmenistan’s significant solar and wind potential presents strong opportunities for advancing energy diversification and supporting a transition toward more sustainable energy systems.
"A useful example can be seen in neighbouring Uzbekistan, where renewable energy development has advanced rapidly over the past five years. Since the commissioning of its first solar project in 2021, Uzbekistan now operates 15 solar photovoltaic stations and five wind power plants with a total installed capacity of 5.5 GW. The country is also developing a series of Battery Energy Storage Systems (BESS) to help manage its electricity grid," he said.
Kueny referred to Uzbekistan as a regional example, noting its rapid expansion of renewable energy capacity since 2021, including multiple solar and wind plants as well as ongoing development of battery storage systems to support grid stability.
"The EIB has played an important role in this progress by financing four solar projects representing nearly 1 GW of new clean power capacity. These investments have helped increase the share of renewable energy in Uzbekistan’s energy mix and demonstrate that large-scale solar deployment in the region is both feasible and impactful," he said.
He added that the EIB has contributed to Uzbekistan’s renewable energy expansion through financing several large solar projects, helping increase the share of clean energy and proving the viability of large-scale solar deployment in the region.
"Beyond solar and wind, the Bank is also actively involved in financing large hydropower projects across the region. We are ready to share our experience in developing transmission lines and cross-border electricity infrastructure as well. This includes projects such as the Tajik-Kyrgyz CASA-1000 interconnector in Central Asia, as well as several major interconnection projects in Europe, including EuroAsia, Adriatic Link, Bay of Biscay, Celtic, NeuConnect and the Baltic Sea Grid," he said.
Kueny further noted that the Bank’s activities extend beyond solar and wind to hydropower and cross-border electricity infrastructure, highlighting its experience in financing major interconnection projects both in Central Asia and Europe.
"The new office in Tashkent is designed to cover Central Asia,
including Turkmenistan. Once the Framework Agreement with
Turkmenistan is signed, this office will be ready to support the
Bank’s activities in the country," he said.
Kueny explained that the EIB’s regional office in Tashkent is
intended to serve Central Asia broadly, including Turkmenistan, and
will be positioned to support operations once a formal agreement is
concluded.
"We have already allocated resources to work on potential projects. This means that once the agreement is in place, we will be able to begin developing a pipeline of projects in Turkmenistan quickly and in close coordination with our regional strategy," he said.
Kueny added that resources have already been set aside to prepare potential projects, enabling the Bank to move quickly toward building a project pipeline in Turkmenistan once the framework is established.
"Another important element of our approach is working closely with local EU delegations. This cooperation strengthens our presence on the ground and helps ensure that our activities remain aligned with the European Union’s priorities and values," he said.
He noted that collaboration with EU delegations is a key part of the Bank’s approach, helping reinforce its local presence and maintain alignment with EU priorities.
"Our close collaboration with the EU Delegation in Ashgabat will therefore play an important role in building effective partnerships and ensuring that future projects deliver tangible benefits for the country and the region," he said.
Kueny concluded that close coordination with the EU Delegation in Ashgabat will be essential for building partnerships and ensuring that future initiatives deliver concrete benefits for Turkmenistan and the wider region.
The European Investment Bank (EIB), founded in 1958 and headquartered in Luxembourg, is the lending institution of the European Union that provides long-term financing for infrastructure, climate, energy, transport, digitalization and other development projects in EU member states and partner countries worldwide. The bank currently cooperates with more than 160 countries and focuses on supporting sustainable development, climate action and economic connectivity.
Turkmenistan and the EIB have been developing dialogue in recent years, primarily aimed at creating a legal framework that would allow the bank to begin operations in the country. In particular, the sides are negotiating a Framework Agreement that would establish the legal basis for EIB financing of projects in Turkmenistan. Potential areas of cooperation discussed between Turkmenistan and the bank include transport infrastructure, especially projects linked to the Trans-Caspian transport corridor, as well as initiatives in renewable energy, digitalisation, water management and other sustainable development sectors.