“Global development banks formulate strategic approaches, while regional institutions have a deep understanding of local conditions,” the experts note.
Central Asia is a vivid example of a successful combination of these approaches. The region faces an annual investment gap exceeding $50 billion. Over the past five years, the total financing from MDBs has averaged only $10 billion per year.
“It is necessary to bridge this gap by increasing capital and strengthening cooperation among multilateral development banks,” emphasized Nikolai Podguzov, Chairman of the EDB Board.
“Water–Energy–Food Nexus”
MDBs can facilitate the creation of regional consortiums and specialized centers for project preparation, ensuring coordination of large initiatives. Long-term syndicated financing, consulting services, and comprehensive financial support from development banks can enhance project resilience and optimize resource use.
Sustainable Transport Solutions
Coordinated actions by MDBs can contribute to the creation of economically viable transport corridors, the development of sustainable and low-carbon mobility systems, as well as the implementation of digital infrastructure solutions. Key mechanisms include co-financing, integrated planning, and streamlining cross-border procedures such as border administration and insurance, as well as the digitization of logistics.
Climate and Sustainable Financing
The joint organization of green syndicated loans, the issuance of social, green, and sustainable bonds (GSS+ bonds), as well as support for national and regional climate initiatives allow MDBs to attract significant volumes of financing and harmonize sustainable development standards and ESG approaches.
Cross-Border Infrastructure
Coordinated participation of MDBs is crucial for the planning, financing, and implementation of large infrastructure projects spanning multiple jurisdictions. The unique capabilities of MDBs to mitigate political risks, align national strategies, and ensure the financial sustainability of such projects are particularly relevant when implemented through public-private partnership mechanisms.
