EIB expands Central Asia investments with hydropower and transport

The European Investment Bank is backing the Kambar-Ata-1 hydropower plant, a project jointly developed by Kyrgyzstan, Kazakhstan, and Uzbekistan expected for completion around 2035. The bank has allocated €900 million to the three countries for this and related water management and energy grid projects.

The plant, located on Kyrgyzstan's Naryn River, is designed to regulate the river's seasonal flow, storing water from snow and glacier melt for release in dry months. This will provide a more stable flow into the Syr Darya River. The facility will be capable of generating 5.6 billion kWh of electricity annually, a major boost to regional energy security.

Water and energy projects tied to broader regional infrastructure

The Kambar-Ata-1 plant supports critical water management for the Syr Darya basin. The Naryn River merges with the Kara Darya in Uzbekistan to form the Syr Darya, which flows through Uzbekistan and Kazakhstan into the Aral Sea. This river is a major source of agricultural irrigation and drinking water for both downstream nations. EIB Vice-President Marek Mora described water management as a global public good, noting that progress in Kazakhstan contributes to managing a scarce resource.

The EIB is seeking to expand cross-border investments that meet strict environmental standards and offer benefits for both regional economies and European industry. Mora noted Europe could benefit from the Kambar-Ata-1 project. "We heard some ideas about energy or electricity interconnector between Kazakhstan under the Caspian Sea to Azerbaijan, which could then further continue to Europe," he said.

EIB prioritises green transport and autonomous mobility in Kazakhstan

Beyond hydropower, the bank is actively funding sustainable transport. It has already issued a €150 million loan to Kazakhstan's national road operator, KazAvtoZhol, to improve key routes. These include access roads to international border crossings, the Caspian route, corridors to China, the southern transit route, and important interregional highways.

A separate €200 million loan to the Development Bank of Kazakhstan targets both transport and energy. The EIB excludes any projects linked to coal or gas technologies, focusing instead on green initiatives. Mora discussed an autonomous truck project with Kazakh Transport Minister Nurlan Sauranbayev. The minister mentioned a possible future project where Kazakhstan would build special roads for autonomous trucks crossing the country, with vehicles potentially being electric and of European origin.

Financing terms reflect EIB’s strict environmental and mutual benefit criteria

EIB financing requires adherence to environmental and social standards, transparent procurement, and a clear win-win outcome. Mora stated there are two groups of conditions: the standards, and a situation that is a win for Kazakhstan and also a win for the European economy or industry. The loan to the Development Bank of Kazakhstan was later increased by €120 million through a letter of intent.

EIB strengthens presence in Uzbekistan to support regional strategy

The bank's commitment to Central Asia as a bridge between Asia and Europe is showed by the opening of a representative office in Tashkent, Uzbekistan, in June. Mora made these comments during a visit to Astana. The EIB will continue to seek projects in Central Asia that support green energy, water management, and transport infrastructure linking the region to European markets.