Report on the Asian Infrastructure Investment Bank’s Role in Advancing Sustainable Development Goals in Central Asia

Introduction

The tenth annual meeting of the board of governors of the Asian Infrastructure Investment Bank (AIIB) has highlighted the bank’s significant involvement in infrastructure projects across Central Asia. This report emphasizes the alignment of AIIB’s initiatives with the United Nations Sustainable Development Goals (SDGs), focusing on economic growth, infrastructure development, clean energy, and climate action in Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan.

AIIB’s Strategic Engagement and SDG Alignment

AIIB’s collaboration with Central Asian governments is crucial in mobilizing private capital to bridge Asia’s infrastructure financing gap, estimated in trillions of dollars. The bank’s projects strongly support multiple SDGs, including:

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Key Developments and Partnerships

1. Panel Discussion with Kazakhstan’s Ministry of National Economy
   On 29 April, AIIB hosted a panel at the Astana International Financial Centre, emphasizing Kazakhstan’s strategic role. AIIB’s Chief Investment Officer, Konstantin Limitovskiy, highlighted investments exceeding $2 billion in seven major projects, including roads, renewable energy, and healthcare infrastructure. These initiatives contribute to SDG 3 (Good Health and Well-being) and SDG 13 (Climate Action), supporting Kazakhstan’s carbon neutrality goal by 2060.
2. Caspian Green Energy Corridor Project
   On 5 April, AIIB, the Asian Development Bank (ADB), and energy ministries from Uzbekistan, Kazakhstan, and Azerbaijan signed a memorandum of understanding to support a feasibility study for the Caspian Green Energy Corridor. This initiative fosters cross-border cooperation on clean energy infrastructure, directly advancing SDG 7 and SDG 17.

AIIB’s Portfolio Impact on Central Asia’s Sustainable Development

Investment Overview

Globally, AIIB has committed over $100 billion, with approximately half directed towards energy, transport, and rural transformation projects. Central Asia has attracted around $7.5 billion in loans, reflecting a focus on sustainable economic growth (SDG 8) and resilient infrastructure (SDG 9).

Country-Specific Initiatives

• Uzbekistan
  Uzbekistan leads in project volume, with investments targeting energy and rural development aligned with the “New Uzbekistan 2030” plan. Key projects include:
  • Water supply system reconstruction in Bukhara region ($248 million and $165 million)
  • Electrification of the railway between Bukhara and Khiva ($108 million)
  • Urban development projects in small cities ($100 million)
  • Renewable energy projects including wind farms and solar parks

  These efforts promote SDG 6 (Clean Water and Sanitation), SDG 7, SDG 8, and SDG 11.

• Kazakhstan
  Kazakhstan’s projects are fewer but larger in scale, focusing on strategic infrastructure such as:
  • Highway reconstruction from Aktobe to Ulgaysin ($500 million)
  • Highway between Zhezkazgan and Karagandy ($650 million)

  These projects support the Middle Corridor initiative, enhancing regional connectivity (SDG 9) and sustainable transport (SDG 11). The government’s commitment to reconstructing over 4,000 kilometers of roads with a $15 billion investment underscores the focus on sustainable infrastructure and clean energy transition (SDG 13).

• Kyrgyzstan
  AIIB supports a road project and a $50 million loan for green and sustainable transition initiatives, addressing climate resilience and water scarcity challenges. These projects contribute to SDG 6, SDG 9, and SDG 13.
• Tajikistan
  Energy sustainability is a priority, with major hydroelectric projects including:
  • Reconstruction of the Rogun Hydroelectric Power Plant ($270 million)
  • Revitalization of the Nurek Hydroelectric Power Plant ($60 million)

  These investments support SDG 7 and SDG 13 by enhancing clean energy capacity.

• Turkmenistan
  No AIIB projects are currently listed for Turkmenistan.

Conclusion

AIIB’s investment portfolio in Central Asia reflects a strategic shift from initial COVID-19 recovery loans towards sustainable, growth-oriented projects that align with the Sustainable Development Goals. The bank’s focus on clean energy, resilient infrastructure, and regional cooperation exemplifies its commitment to fostering long-term sustainable development and climate action in the region.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • Renewable energy projects such as wind farms, solar parks, hydropower dams, and green energy corridors are highlighted.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Infrastructure development projects including roads, highways, railway electrification, and urban development.
   • Focus on modernizing transport networks and improving connectivity.
3. SDG 11: Sustainable Cities and Communities
   • Urban development projects in small cities and infrastructure improvements.
4. SDG 13: Climate Action
   • Efforts towards carbon neutrality, green transition, and climate resilience.
   • Projects supporting reduction of carbon emissions and sustainable energy transitions.
5. SDG 17: Partnerships for the Goals
   • Collaborations among AIIB, Asian Development Bank, national governments, and other development banks.
   • Mobilising private capital and co-financing with institutions like the World Bank.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 Targets
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 9 Targets
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
3. SDG 11 Targets
   • Target 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory planning.
   • Target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems.
4. SDG 13 Targets
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters.
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
5. SDG 17 Targets
   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption (implied by wind farms, solar parks, hydropower projects).
   • Indicator 7.a.1: International financial flows to developing countries in support of clean energy research and development.
2. SDG 9 Indicators
   • Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road (implied by road and highway reconstruction projects).
   • Indicator 9.4.1: CO2 emission per unit of value added (implied by sustainable infrastructure and green transition projects).
3. SDG 11 Indicators
   • Indicator 11.2.1: Proportion of population that has convenient access to public transport (implied by railway electrification and urban transport projects).
   • Indicator 11.3.1: Ratio of land consumption rate to population growth rate (implied by urban development projects).
4. SDG 13 Indicators
   • Indicator 13.1.2: Number of countries with national and local disaster risk reduction strategies (implied by climate resilience and adaptation efforts).
   • Indicator 13.2.2: Total greenhouse gas emissions per year (implied by carbon neutrality goals and green energy projects).
5. SDG 17 Indicators
   • Indicator 17.3.1: Foreign direct investments, official development assistance and South-South cooperation as a proportion of total domestic budget (implied by mobilizing private capital and co-financing).
   • Indicator 17.17.1: Amount of United States dollars committed to public-private partnerships (implied by PPP hospital financing and partnerships).

4. Table of SDGs, Targets and Indicators

Source: euronews.com