Transit Corridor and Common Energy Market: Experts Outline Central Asia's Economic Future
Economy
Deepening regional integration, establishing a coordinated electricity market, and accelerating the development of the Trans-Caspian route could become defining factors for the economic sovereignty of Central Asian nations amid global market fragmentation. At an international panel on regional cooperation held in Tashkent, leading policymakers and representatives of global financial institutions discussed strategic steps to transform the region's geographical location into its primary competitive advantage. The discussion brought together the heads of relevant ministries from Uzbekistan, Tajikistan, Poland, Switzerland, and Liechtenstein, alongside senior management from the World Bank and the International Finance Corporation (IFC).
Deputy Prime Minister of Uzbekistan Jamshid Kuchkarov emphasized that Tashkent is focusing on infrastructure modernization, public-private partnerships (PPP), and the reform of state-owned enterprises to boost their investment attractiveness. In turn, World Bank Vice President Antonella Bassani highlighted the significance of the Middle Corridor in linking the region with global markets. She drew attention to the energy sector, noting that currently, only 3% of the electricity generated in the region is involved in cross-border trade. To address this deficiency, the World Bank is backing a regional energy market development program valued at approximately 1 billion dollars, aimed at integrating renewable energy sources.
European partners also announced an expansion of their financial footprint. According to Poland's Deputy Finance Minister Jurand Drop, the European Investment Bank will allocate over 360 million euros, which will help mobilize around 1 billion euros for infrastructure projects, including telecommunications, digital networks, and aviation. IFC Regional Director Lisa Kaestner pointed out barriers facing private capital, stating that out of 100 companies operating along the Middle Corridor, only 10% invest directly in its infrastructure due to regulatory discrepancies. Concurrently, a rapid expansion of bilateral partnerships is being recorded. Minister of Finance of Tajikistan Faiziddin Kahhorzoda reported that in January alone, trade turnover with Uzbekistan grew by 11%, exceeding 200 million dollars, with the long-term target set at 2 billion dollars.
European partners also announced an expansion of their financial footprint. According to Poland's Deputy Finance Minister Jurand Drop, the European Investment Bank will allocate over 360 million euros, which will help mobilize around 1 billion euros for infrastructure projects, including telecommunications, digital networks, and aviation. IFC Regional Director Lisa Kaestner pointed out barriers facing private capital, stating that out of 100 companies operating along the Middle Corridor, only 10% invest directly in its infrastructure due to regulatory discrepancies. Concurrently, a rapid expansion of bilateral partnerships is being recorded. Minister of Finance of Tajikistan Faiziddin Kahhorzoda reported that in January alone, trade turnover with Uzbekistan grew by 11%, exceeding 200 million dollars, with the long-term target set at 2 billion dollars.
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