BAKU, Azerbaijan, October 31. The European Bank for Reconstruction and Development (EBRD) is seeking to expand its investment operations in Turkmenistan, supporting private-sector development and infrastructure projects while attracting additional international capital and expertise to the country.
EBRD Head of Turkmenistan Eric Livny said this in an exclusive interview with Trend, outlining the Bank's priorities for expanding its operations in Turkmenistan.
"Public-private partnerships (PPPs) have become an important tool for mobilising private investment in infrastructure in many EBRD countries," he said.
According to Livny, PPP structures can help governments access private-sector expertise and financing while improving the efficiency of project delivery and operation. At the same time, he said the EBRD is not currently discussing any specific PPP projects with the Turkmen authorities.
"At this stage, our engagement is focused on identifying opportunities to support private-sector development directly, strengthening cooperation with the banking sector and advancing project preparation work in areas such as transport, sustainability and municipal infrastructure," he noted.
Looking ahead, Livny identified several areas where broader use of PPP structures could potentially support development in Turkmenistan.
"If Turkmenistan were to consider broader use of PPPs, sectors such as transport infrastructure, logistics facilities, municipal services, renewable energy and water management could potentially benefit from such an approach," he said.
Livny also stressed that successful PPP programmes require a well-developed legal and regulatory framework, transparent procurement procedures and a pipeline of commercially viable projects.
"At present, the EBRD’s priority is to deepen cooperation in areas covered by the five agreements signed during our President's visit to Turkmenistan in late July and translate those into concrete investment opportunities," Livny stressed.
He also addressed the country’s potential for investment in railway infrastructure and logistics services along the Trans-Caspian Transport Corridor, mentioning the recent visit to Turkmenistan by EBRD President Odile Renaud-Basso.
"Transport connectivity was one of the key themes of Odile Renaud-Basso visit and of her discussions with the Turkmen authorities, including His Excellency President Serdar Berdimuhamedow," he said.
According to Livny, Turkmenistan occupies a strategic position in the Caspian region, connecting Asia and Europe. He added that the country has significant potential to strengthen its role as an important transit link along the Trans-Caspian Transport Corridor.
"At this stage, discussions are focused primarily on railway infrastructure and logistics services," Livny noted.
He said the memorandum EBRD signed with the transport authorities of Turkmenistan provides a framework for exploring opportunities to modernize sections of the national railway network, improve freight handling capacity and enhance the efficiency of logistics operations.
According to him, the EBRD also sees potential beyond physical infrastructure, with customs procedures, border management and other trade facilitation measures identified as areas that can affect transport efficiency.
"Experience across the region shows that customs procedures, border management and other trade-facilitation measures often have as much impact on transport efficiency as investments in tracks, terminals and rolling stock," Livny said.
"For this reason, our cooperation will also examine opportunities to improve the "soft" infrastructure that determines how efficiently goods move across borders," he added.
Livny stressed that it is still too early to identify individual projects under the potential cooperation.
"It is still too early to identify individual projects, but we see considerable potential for investments that can strengthen regional connectivity, reduce transit times and improve the competitiveness of the Transcaspian Corridor," he said.
Livny also explained which of the five memorandums signed in July would be the first to lead to the implementation of investment and financial projects.
"The agreement we expect to have the most immediate and practical impact is the memorandum signed with the Central Bank of Turkmenistan," he said.
According to Livny, the agreement creates a framework that will allow the EBRD to resume direct financing of export-oriented private companies with their own foreign-currency revenues.
"As a result, we expect the first concrete transactions to emerge from our discussions with private businesses in sectors such as manufacturing, agribusiness, logistics and export-oriented services," Livny said.
He added that several visits by the bank’s banking teams are already planned to identify potential investment opportunities and advance project preparation.
"The second area, where we hope to move relatively quickly, is cooperation with local financial institutions," he added.
According to Livny, the EBRD is exploring partnerships with selected Turkmen banks that could support lending to small and medium-sized enterprises while introducing international banking expertise and trade-finance instruments.
Livny noted that the remaining memorandums covering transport, sustainability and urban development also remain important, although they are expected to require more extensive technical work before developing into investment projects.
"They should therefore be seen as building the pipeline for future engagement rather than generating immediate financing operations," he said.
Livny outlined direct project financing could provide a straightforward mechanism for supporting investment.
"The most straightforward approach is direct project financing, where the Bank provides long-term loans alongside sponsors and commercial lenders. The EBRD's participation can help reduce perceived risks and provide comfort to other investors considering entry into a new market," Livny said.
According to Livny, syndicated financing could further expand the pool of private capital involved in projects by allowing commercial banks and institutional investors to participate alongside the Bank.
"We can also support projects through syndicated financing structures, whereby part of an EBRD-financed loan is subsequently shared with commercial banks and institutional investors. This allows larger volumes of private capital to participate in projects than would otherwise be possible," he said.
Livny also identified equity investments, trade-finance instruments, guarantees and risk-sharing arrangements among the tools that could be used to support investors.
"In addition, the EBRD can support investors through equity investments, trade-finance instruments, guarantees and risk-sharing arrangements where appropriate. Technical cooperation is often equally important. By helping projects meet international environmental, governance and operational standards, we can increase their attractiveness to foreign investors and facilitate access to international financing," Livny said.
Livny said the EBRD’s role would ultimately go beyond providing its own funding.
"Ultimately, our objective is not simply to provide EBRD funding but to act as a catalyst that helps attract additional international capital and expertise to the country," he said.
Turning to the private sector, Livny said improving access to finance for privately owned MSMEs is among the key objectives of the EBRD’s planned engagement with Turkmenistan’s financial sector.
"Improving access to finance for privately owned micro, small and medium-sized enterprises is one of the key objectives of our planned engagement with the financial sector," Livny said.
According to Livny, a first step could be establishing partnerships with selected local banks that have a meaningful presence in the SME segment.
"Through these partnerships, the EBRD could provide dedicated credit lines targeted at export-oriented businesses and other private enterprises with strong growth potential," he said.
Livny noted that access to finance is not always the only challenge for private companies.
"We would therefore seek to complement financing with advisory support to help companies strengthen management systems, improve productivity, obtain international certifications and prepare for expansion into export markets. Combining finance with advisory services is one of the EBRD's most effective tools for supporting SME development," Livny said.
The EBRD also sees significant scope for expanding the use of trade-finance instruments, including guarantees and letters of credit.
"We also see significant scope to expand the use of modern trade-finance instruments, including guarantees and letters of credit. These products can help businesses manage commercial risks, reduce working-capital constraints and build relationships with international suppliers and buyers," Livny said.
In the longer term, Livny said the EBRD aims to contribute to the development of a more commercially oriented financial sector.
"Our longer-term objective is to contribute to building a more commercially oriented financial sector capable of serving the evolving needs of Turkmenistan’s fast-growing private businesses," Livny said.
"The new Country Strategy is still under preparation, but the broad direction of our engagement is already clear," Livny said.
According to him, the priority is to expand support for the private sector.
"Over the past decade, Turkmenistan has seen the emergence of a number of competitive private companies in agriculture, manufacturing, logistics and services. We would like to support this process through direct financing, partnerships with local banks and advisory services that help companies grow, innovate and expand into export markets," Livny noted.
He said that the second priority is improving connectivity.
"Turkmenistan's geographic position gives it significant potential as a bridge between Central Asia, the Caspian region, the South Caucasus, the Middle East and South Asia. Investments in transport infrastructure, logistics and trade facilitation can help unlock this potential while strengthening regional integration," Livny said.
The bank's third priority is sustainability and the efficient use of resources, he added.
"This includes work on energy efficiency, emissions reduction, renewable energy opportunities and sustainable urban infrastructure, particularly in areas such as water and waste management," Livny said.
He noted that, to scale up the bank’s operations, its immediate objective is to build a meaningful pipeline of private-sector transactions.
"If the framework agreed during the EBRD President's visit is implemented, and a strong portfolio of bankable projects emerges, we would expect the scale of our activity in Turkmenistan to increase progressively over the coming years," Livny said.
He added that the bank's long-term success would be measured by its contribution to economic diversification, competitiveness and international integration, driven by a more dynamic private sector.
He also outlined the conditions by which the bank’s long-term success would be measured.
"The ultimate measure of success will be our ability to support a more diversified, competitive and internationally integrated economy led by an increasingly dynamic private sector," Livny said.
For reference, the European Bank for Reconstruction and Development (EBRD) has been working with Turkmenistan since 1992. Its engagement has focused on private-sector development, cooperation with financial institutions and support for private companies through financing and advisory services. The bank has also identified sectors such as transport, logistics, agribusiness, industry and commerce as areas with potential for further private-sector investment.
According to the EBRD, the bank has financed 87 projects in Turkmenistan, with cumulative investment reaching €322 million.
In July 2026, EBRD President Odile Renaud-Basso visited Turkmenistan, during which the sides signed five memorandums of understanding covering strategic cooperation for 2027-2032, the banking sector, sustainable energy, environmental protection and water resources, transport corridors, and Ashgabat’s participation in the EBRD Green Cities programme. The documents are intended to provide a framework for further cooperation.
