As reported by MiddleAsianNews, the European Bank for Reconstruction and Development (EBRD) invested nearly $2 billion (€1.72 billion) in 120 projects in Central Asia and Mongolia. This is one of the highest operational results for the Bank in the region in over a decade. This is one of the highest operational results for the Bank in the region in over a decade.
Uzbekistan has been the leading recipient of EBRD funding for the sixth consecutive year in 2025 (over $1 billion (€880 million)). The EBRD provided nearly $440 million (€378 million) for projects in Kazakhstan, $218 million (€188 million) in Mongolia, $212 million (€183 million) in the Kyrgyz Republic, and $100 million (€88 million) in Tajikistan.
About one-third of the EBRD's total investments were directed towards sustainable infrastructure projects, another third of the funds is intended for local banks to provide loans to small and medium-sized enterprises (SMEs), as well as to women and youth. Additionally, 15% of the loans were allocated to support the private sector related to production and services in Central Asia. These projects contributed to the inflow of foreign direct investment, with 68% of loans going to support private initiatives, and 53% of investments directed towards projects in the "green economy".
Development of Renewable Energy
In Uzbekistan, the EBRD allocated $142 million (€121 million) for the creation of the largest solar photovoltaic station in Central Asia with a combined capacity of 1 GW and an energy storage system (BESS) of 1336 MWh. This project is being implemented in partnership with ACWA Power and became the first investment by Japanese partners in Uzbekistan's renewable energy sector.
Furthermore, the EBRD organized a financing package of up to $195.5 million (€168.5 million) for the construction of a 300 MW solar power plant and a 75 MWh energy storage system in the Kashkadarya region, developed by Masdar, which specializes in renewable energy.
In Tajikistan, the modernization of six hydro units of the Kairakkum HPP has been completed, increasing the station's capacity from 126 MW to 174 MW, ensuring reliable electricity supply for 500,000 residents of the Sughd region.
Sustainable Infrastructure Development
The EBRD allocated up to $250 million (€240 million) for the modernization of 110 irrigation pumping stations in Uzbekistan, which is expected to lead to a reduction in electricity consumption by 251,000 MWh and a decrease in CO₂ emissions by more than 117,000 tons per year.
Funding of €45 million, provided by the EBRD in conjunction with the European Union, will increase the capacity of the port of Aktau, a key maritime port of Kazakhstan on the Caspian Sea, which is an important element of the Trans-Caspian Corridor.
In Tajikistan, loans from the EBRD of up to €38 million and a grant from the Asian Development Bank of $86.7 million (€83.5 million) will help modernize and expand the important road from Dangara to Gulishton, connecting the north and south of the Khatlon region, where more than 53% of the country's agricultural production is produced.
In the Kyrgyz Republic, the EBRD allocated €62 million for the construction of a new 500 kV power transmission line spanning 53 km between Kemin and Balykchy, as well as for a new substation in Balykchy.
A financing program of up to €23.8 million from the EBRD and the EU supports the reconstruction and automation of the Western Big Chui Canal, as well as the provision of up to €38 million for the modernization of critical infrastructure in the Jalalabad and Naryn regions.
The "Green Cities" program initiated by the EBRD promotes the implementation of sustainable urban development. The city of Osh in the Kyrgyz Republic plans to improve its water treatment infrastructure and transition to environmentally friendly public transport with a Bank loan of up to €14.7 million and a grant of €8.3 million.
In Mongolia, a specialized cardiology hospital will be built in Ulaanbaatar using a sovereign loan from the EBRD of $34.9 million (€33.5 million) as part of the "Green Cities" plan.
Support for Small Business and the Financial Sector
In Mongolia, nearly 74% of the EBRD's annual investments are directed to the real sector of the economy through financial partner institutions.
Among the projects is an A/B category loan of up to $147 million (€135 million) provided to XacBank under the "Youth in Business" program, which became the largest deal between the EBRD and a Mongolian bank. Khan Bank also received a loan of $20 million (€16.8 million), which became the first specialized credit fund for agribusiness in Mongolia and Central Asia; while a package of $20 million (€17.2 million) issued to Golomt Bank supported businesses led by women and youth.
In Uzbekistan, projects with partner banks accounted for nearly 39% of the EBRD's annual operations, including deals with Hamkorbank, Ipak Yuli Bank, and Universalbank totaling $125 million ($108 million) in support of SMEs and "green" investments.
In Kazakhstan, the bank "CenterCredit" received three loans totaling $60 million (€57.6 million), which will be used to support the growth of micro, small, and medium enterprises led by women or youth. KMF also received a loan of up to $25 million (€22.9 million) to support women entrepreneurs, while the microcredit fund Arnur Credit received up to $7 million (€6 million) under the "Youth in Business" program.
In 2025, the EBRD supported over 4,600 small and medium enterprises in Central Asia and Mongolia, offering consultations, training, and mentoring. Three companies from the region, including the Kazakh logistics company Jana Post and the Tajik company Oilai Barakat, joined the "Blue Ribbon" program for fast-growing SMEs.
The EBRD launched its first regional Star Venture program, bringing together startups from Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan to strengthen connections and accelerate innovation.
In 2025, the bank signed 31 risk-sharing agreements with 26 companies, creating new opportunities for local businesses.
Last year, the EBRD celebrated the tenth anniversary of the "Women in Business" program in Central Asia and Mongolia, under which more than 100,000 women entrepreneurs received support totaling around $365 million (€305 million), and over 17,000 women benefited from consultations and training.
The EBRD remains the largest institutional investor in Central Asia, having financed 1,250 projects totaling over €21 billion.
