NUR-SULTAN

The Eurasian Development Bank (EDB) intends to invest up to $4 billion in Kazakhstan’s economy for the implementation of infrastructural projects in the next five years.

EDB is a regional development bank established by the Russian Federation and Kazakhstan in 2006. It has six member states located in both Asia and Europe, primarily in the former territory of the Soviet Union, including Armenia, Belarus, Kyrgyzstan, and Tajikistan.

The bank plans to assist in the implementation of projects aimed at the creation of transport corridors “North-South”, “Europe-Western China” and a single distribution network as well as the modernisation of the water and energy complex of Central Asia.

The total volume of the EDB investments in these projects is estimated at $1.2 billion.

“In general, the bank intends to invest at least $3.8 billion in the economy of Kazakhstan until 2026,” the presidential press service said.

In July, the EDB said it would focus on major cross-border investment projects and planned to invest $10.9 billion over the next five years.

Among such projects are the Europe–Western China transport and digital corridor, the EAEU+ single commodity distribution system, and the water and energy complex of Central Asia.

Over the next five years, a separate strategy for each of the member countries will be developed taking into account the macroeconomic characteristics of the region.

The EDB also plans to expand operations in Armenia, Kyrgyzstan, and Tajikistan with total investments reaching $500 million.

Building EAEU+ Single Digital Space, part of the broader effort to develop digital competencies and infrastructure, is also envisioned in the bank’s five-year strategy.

In June 2020, the EDB established the Fund for Digital Initiatives. Nearly 20 projects are currently pending the fund’s approval and the first project was the COVID-19 Free Travel mobile app for cross-country verification of travellers’ PCR test data within the Russia-led Eurasian Economic Union. Supporting green economy developments will also be among the priorities of the EDB.

In 2020, the EDB signed 18 new project agreements worth $1.3 billion. The current investment portfolio grew to $4.4 billion, a record high in the bank’s history. The bank’s net profit in 2020 amounted to $32.6 million.