Section 8. International Financial Institutions and Development Partners in Central Asia

8.1. Multilateral Development Banks

8.1.1. Asian Development Bank

The Asian Development Bank (ADB) has been providing to the Central Asia region, including in the water sector, since its first lending (to Kazakhstan) in 1998. In 2025, ADB operated under its updated Strategy 2030, focusing on climate resilience, regional connectivity, energy transition, and economic reforms.

Projects in Central Asia in 2025

Regional initiatives

Central Asian Regional Economic Cooperation (CAREC) Program. ADB continued to support CAREC as its secretariat and principal multilateral partner. Since 2001, CAREC partners and ADB have mobilized approximately $54 billion in investment, including $19 billion in ADB financing and cofinancing.

In 2025, CAREC focused on implementation of its Strategy 2030. The CAREC Senior Officials’ Meeting discussed the action plan to the Strategy, focusing on digitalization of key sectors (trade, transport, energy and climate), alignment of regional projects with national priorities, and improvement of coordination and monitoring mechanisms (Cholpon-Ata, Issyk-Kul, 17-19 June).

At the 24th CAREC Ministerial Conference, chaired by the Kyrgyz Republic, participants discussed climate resilience, disaster risk management, transport corridors, and regional digital integration. ADB announced plans to mobilize over $10 billion by 2030 for regional connectivity, clean energy, digital transformation, and inclusive infrastructure under CAREC. More than $800 million is expected to support two major hydropower projects: the Rogun HPP in Tajikistan and Kambarata-1 HPP in the Kyrgyz Republic (Bishkek, November 20).

Regional energy integration advanced through preparations for the Caspian Green Energy Corridor project involving Azerbaijan, Kazakhstan, and Uzbekistan, with AIIB participation. ADB supported a feasibility study, focusing on strengthening regional energy cooperation and promoting green energy trade among CAREC countries (Baku, April 4).

The GCF approved $250 million for ADB Glaciers to Farms Program to build resilient water and agriculture systems in glacier-dependent regions of Central Asia, the South Caucasus, and Pakistan. ADB will complement this funding with $3.25 billion over the next decade in a series of projects identified by the countries covered by the program.

National projects and programs

Kazakhstan. ADB has been supporting Kazakhstan in enhancing its transit potential, strengthening regional connectivity, and advancing its sustainability agenda. In 2025, jointly with the Ministry of Ecology and Natural Resources, ADB prepared an assessment with abatement scenarios for the energy, agriculture, and waste sectors. ADB also supported the ministry in preparing the National Waste Management Concept (2026–2030). A technical assistance project was launched to prepare for the rehabilitation of the Almaty Hydropower Plant Cascade - Kazakhstan’s oldest hydropower complex. The initiative aims to support Kazakhstan’s renewable energy and emissions reduction goals while improving the reliability of the region’s power supply.

Kyrgyzstan. In 2025, ADB approved six projects and programs for the Kyrgyz Republic totaling $245.9 million. They aim to build water resilience, reduce disaster risks, develop affordable and energy-efficient housing, promote green growth and private investment, modernize border infrastructure, improve energy efficiency in public buildings with attention to gender aspects, and strengthen the country’s financial preparedness for extreme weather events and emergencies.

Additional financing ($27 million) was allocated to the Climate Change- and Disaster-Resilient Water Resources Sector Project. The funds will support: (1) irrigation infrastructure modernization; (2) automated control systems; (3) advanced water management technologies; (4) nature-based solutions and basin planning; (5) enhanced early warning systems and hydrometeorological monitoring; and (6) stronger institutional capacity for sustainable operations.

Tajikistan. ADB confirmed plans to around 20 projects in the country during 2025–2029, covering agriculture, energy, urban development, and social services. Particular emphasis is placed on modernizing transport infrastructure and improving regional connectivity.

A $17 million grant was approved for a project to digitalize livestock farming, aimed at increasing smallholder livestock productivity, improving veterinary services and livestock records, rehabilitating pasture infrastructure, and expanding economic opportunities for rural women, including through veterinary training.

Turkmenistan. In June 2025, the $500 million National Power Grid Strengthening Project was completed and contributed to power supply reliability, regional energy connectivity, and electricity export capacity.

ADB initiated a technical assistance project “Integrated Renewable Energy Solutions to Support Green Transformation in Turkmenistan.” The project will prepare a national solar road map, generate prefeasibility studies, pilot small-scale installations for new solar capacity, and deliver skills training for government agencies and communities.

Uzbekistan. In 2025, Uzbekistan marked 30 years of the partnership with ADB. ADB’s cumulative project portfolio in the country public sector reached $14.7 billion.

ADB continued supporting renewable energy development, providing financing for solar plants (1,000 MW) and battery energy storage facilities (1,336 MWh) in Samarkand and Bukhara provinces. It also supported a 300-MW solar plant in Guzar district, Kashkadarya province, and a wind farm with battery storage in Karakalpakstan.

A $125 million loan was allocated to the Climate-Smart Water Management Improvement Project to modernize asset management, improve service quality and resilience, and strengthen the capacity of the national water utility.

Source: Asian Development Bank, ADB Annual Report 2025 (Годовой отчет АБР за 2025 г.)

8.1.2. Asian Infrastructure Investment Bank

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to support sustainable infrastructure and promote economic growth in Asia and beyond. Headquartered in Beijing, AIIB began operations in January 2016 with 57 founding Members and have since grown to 111 approved members worldwide.

Approved in September 2020 and updated in 2025 to address emerging global challenges, AIIB’s Corporate Strategy “Financing Infrastructure for Tomorrow” sets targets for 2030: doubling annual financing to $17 billion, allocating more than half of its annual investments to climate-related projects, bringing cumulative climate financing to over $50 billion, and increasing the share of projects supporting regional and cross-border connectivity to 25–30%.

Activities in 2025

AIIB held its 10th Annual Meeting of the Board of Governors in Beijing, marking its first decade and exploring ways to expand its role in financing sustainable development. Under the theme “Connecting for Development, Collaborating for Prosperity,” the meeting introduced new initiatives in green finance, cross-border infrastructure, private capital mobilization, and the digital economy (24–26 June).

AIIB published its annual report, Asian Infrastructure Finance 2025, themed “Infrastructure for Planetary Health.” The report highlights the need for infrastructure investments that simultaneously support economic growth, strengthen climate resilience, and preserve natural capital.

Projects in Central Asia

AIIB and the Government of Kazakhstan signed a Memorandum of Understanding to develop a multiyear investment portfolio of up to $6 billion. It covers 14 projects in transport, energy, water, healthcare, and digitalization to support sustainable economic growth and regional integration.

In Uzbekistan, AIIB approved $250 million in financing for the Green and Resilient Market Economy Program. The program supports reforms to improve energy efficiency, expand renewable energy, strengthen climate regulations, and accelerate the transition to a green economy.

In April 2025, AIIB, ADB, Azerbaijan, Kazakhstan, and Uzbekistan signed a memorandum of understanding to support a feasibility study for the Caspian Green Energy Corridor project. See Asian Development Bank.

Source: Asian Infrastructure Investment Bank

8.1.3. European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) was established in 1991. It invests in projects facilitating the transition to open market, as well as the development of business activity. The EBRD work in Central Asian countries is very broad, including water supply, wastewater treatment, RES, and climate resilience.

Projects in Central Asia

Projects in Central Asia in 2025 In 2025, EBRD continued strong activity in Central Asia and Mongolia, investing approximately €1.72 billion through 120 projects. Financing focused on sustainable infrastructure, private sector, and green economy.

At the regional level, the Bank continued strengthening transport and energy connections in Central Asia, support entrepreneurship, and improve SME access to finance. During the year, it signed 31 risk-sharing agreements with regional financial institutions, helping expand private sector lending.

The Women in Business program in Central Asia and Mongolia marked its tenth anniversary in 2025. Since its launch, over 100,000 women entrepreneurs have received financial support totaling more than $365 million.

A new initiative was launched to strengthen agrifood sector resilience by addressing water, energy, and land-use nexus challenges. With funding from Germany’s International Climate Initiative, , the program will help local producers adopt low-carbon, climate-resilient technologies, supporting more efficient and environmentally sustainable food systems in the region.

In Kazakhstan, EBRD invested approximately €378 million in energy sector modernization, renewable energy, and private businesses. It continued financing projects to decarbonize the economy and improve regional transport connectivity. A loan of up to $90 million was approved for a hybrid power plant in Mangystau province, comprising a 77 MW wind power plant and a 50 MW solar power plant. With EU support, a financing package of up to €45 million was approved to modernize the Caspian Sea port of Aktau, a key hub along the Trans-Caspian Corridor and part of the EU Global Gateway initiative. The project will improve international transport routes and strengthen Kazakhstan’s role in trade between Europe and Central Asia.

In the Kyrgyz Republic new investments totaled €183 million, focusing on energy system resilience, irrigation infrastructure modernization, and improved water management. A major initiative was the Kambarata-1 HPP project, for which EBRD is considering financing of up to $1.5 billion alongside international partners.

A second financing tranche was allocated to the Kyrgyzstan Climate Resilience Water Supply Project. Together with the EU, EBRD provided €23.8 million to rehabilitate and automate a section of the Western Big Chui Canal, introducing automated water accounting and distribution systems to improve water management efficiency.

In Tajikistan, approximately €88 million was invested in energy infrastructure, water supply, and urban transport. In 2025, EBRD approved a new five-year country strategy with two priorities: (1) strengthening private sector competitiveness through better access to finance, particularly for small businesses, women, and young people, and improved governance; and (2) modernizing infrastructure through green energy investments, climate resilience, transport and digital connectivity, and better municipal services.

As part of the Green Cities program, financing continued for projects to improve urban environmental conditions and quality of life. Loans totaling over €12 million were provided to modernize water supply systems in Kulob and Yovon. With support from EIB, the Green Climate Fund, CIF, Austria, and the United Kingdom, the €196 million modernization of Qairokkum HPP was completed and allowed to increase the plant’s installed capacity from 124 MW to 174 MW.

Uzbekistan remained EBRD’s largest investment destination in the region for the sixth consecutive year, receiving over €880 million in 2025. One of the largest projects was €121 million in financing for Central Asia’s largest solar power complex, with 1 GW of generation capacity and 1,336 MWh of battery storage, developed with ACWA Power.

A sovereign loan of up to €240 million was approved to modernize 110 pumping stations across 10 regions. The project includes pump upgrades and solar power installations, expected to save 251,000 MWh of electricity annually, reduce CO₂ emissions by 117,000 tons, and introduce water-saving technologies to almost half of all irrigated areas in the country.

Source: European Bank for Reconstruction and Development

8.1.4. Eurasian Development Bank

The Eurasian Development Bank (EDB) was established in 2006 to promote economic growth, trade, and integration among its member states. In 2025, its members were Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, which officially joined in April.

The Bank’s activities in Central Asia focus on financing energy, transport, industry, digital infrastructure, water, and regional connectivity projects, prioritizing those that promote integration. The Water and Energy Complex of Central Asia is one of three priority megaprojects under the EDB Strategy 2022–2026.

Kazakhstan. In April, the EDB Fund for Digital Initiatives provided grant funding for the development of QazSu National Water Information System, supporting the water digitalization. The 311-million tenge system will comprise ten modules covering water consumption and management, satellite monitoring, groundwater and transboundary water, early warning, map services, and other areas.

EDB, Kazakhstan’s Ministry of Water Resources and Irrigation, and UNDP launched the project “Developing a Business Ecosystem for Sustainable Irrigation in Kazakhstan” supported by a $5.3 million EDB grant. It focuses on water management digitalization, water-saving technologies, establishing regional centers for modern irrigation, and preparation of project documentation for construction of a reservoir on the Kenderlyk River. The project will serve as a pilot for further scaling up across Central Asia.

Kyrgyzstan. EDB approved financing for a pre-feasibility study of the Suusamyr–Kokomeren HPP Cascade, with a total capacity of 1.3 GW. The study will assess capital costs, technical options, environmental and social impacts, and necessary state support measures. The project is part of EDB’s Water and Energy Complex of Central Asia megaproject and is developed jointly with ORTA ASYA Investment Holding. Their cooperation also covers development of the Kazarman HPP Cascade.

Tajikistan. In 2025, EDB focused on preparing new investment projects and providing technical assistance. In November, the Bank presented a $48 million pipeline of potential projects, including reconstruction of the Labijar–Kalai Khumb road and new industrial facilities. It also continued supporting the digital transformation of public administration through the Electronic Map of Dushanbe project and cooperation with the Tax Committee and Dushanbe Mayor’s Office.

Uzbekistan. Following the country’s accession to the EDB founding agreement, the Bank developed a macroeconomic model for analysis and forecasting of the Uzbekistan economy. The model covers GDP growth, inflation, exchange and interest rates, fiscal policy, wages, remittances, and foreign trade. In June, Uzbekistan was included for the first time in the EDB Macroeconomic Outlook 2025–2027.

Research. EDB and UNIDO launched the research “Irrigation Equipment Production in Central Asia: Industrializing the Water Sector”. The authors estimate that expanding irrigated land to 10.6 Mha by 2040 will generate demand for approximately 2 million units of equipment, with local production potential reaching $426 million annually. Recommendations include industrial clusters, support for manufacturers, water sector digitalization, and workforce training.

Together with IsDB, ICD, and the London Stock Exchange Group, EDB published the research “The Future of Islamic Finance in Central Asia”. The Bank estimates that regional Islamic banking assets could reach $6.3 billion and the sukuk market $5.6 billion by 2033, providing an additional source of long-term investment financing.

Source: Eurasian Development Bank

8.1.5. Islamic Development Bank

The Islamic Development Bank (IsDB) is a multilateral development bank established in 1975, with 57 member countries and headquarters in Jeddah, Saudi Arabia. The Bank finances infrastructure, education, healthcare, agriculture, private sector development, and other socioeconomic projects in accordance with Islamic finance principles. The Bank operates in Central Asia both directly and through IsDB Group entities, including the Islamic Solidarity Fund for Development (ISFD), Islamic Corporation for the Development of the Private Sector (ICD), International Islamic Trade Finance Corporation (ITFC), and Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Projects in Central Asia

Kazakhstan. In 2025, IsDB continued preparations for a $1.32 billion climate-resilient water infrastructure project (including $1.15 billion in Bank financing) and organized an official visit to strengthen collaboration on sustainable water management in June–July. The project includes construction of five new reservoirs, reconstruction of existing facilities, and modernization of 115 irrigation canals in seven provinces. By 2032, it is expected to provide reliable irrigation for approximately 350,000 ha, increase average yields of major crops by 20%, and reduce irrigation water losses by 25%.

Kyrgyzstan. On April 22, financing agreements were signed for three projects totaling $129.11 million: (1) $50.54 million for agriculture mechanization; (2) $60.25 million ($58.25 million from IsDB and $2 million from the Kyrgyz government) for construction of electricity transmission lines and substations in Tamga and Karakol, Issyk-Kul province; and (3) $25.25 million for the joint Smart-ED education project (IsDB, ISFD, and the Global Partnership for Education), aimed at expanding access to inclusive learning, upgrading school infrastructure, and improving quality of learning.

Tajikistan. IsDB's cooperation with Tajikistan is guided by its Country Engagement Framework for 2023–2026. In 2025, implementation continued on previously approved transport and energy projects, including reconstruction of the Guliston–Farkhor–Panj–Dusti road and support for the Rogun HPP, for which $150 million was approved.

Turkmenistan. Under the IsDB Country Partnership Strategy for Turkmenistan 2024–2027, support focuses on major infrastructure projects that improve regional connectivity and export capacity. Key projects include the Bereket–Etrek railway, TAPI gas pipeline, and telecommunications network modernization. In May, Turkmenistan and IsDB leaders reaffirmed their commitment to expanding cooperation, prioritizing energy, transport, healthcare, and sustainable development.

Uzbekistan. In 2025, Uzbekistan was the largest recipient of new IsDB commitments in Central Asia. Financing announced during the year exceeded $523 million, bringing cumulative support since the start of cooperation to over $4.96 billion. Financing agreements were signed for the Smart Education program ($220.25 million, including cofinancing) and road reconstruction ($330.8 million). Additional funding was allocated to support micro, small, and medium-sized enterprises.

Source: Islamic Development Bank

8.1.6. World Bank

For more than 30 years, the Bank has supported the efforts of Central Asian countries in improving the living standards of their people and promoting economic growth. Now, the Bank is increasingly adopting a regional approach to tackle the development challenges of Central Asian countries, through cross-border cooperation, fostering dialogue, and knowledge sharing across key sectors such as energy and water, transportation, and healthcare.

Central Asian Water and Energy Program (CAWEP). Since 2009, CAWEP – a multi-donor trust fund administered by the World Bank and supported by the European Union, Switzerland and the United Kingdom – has been supporting regional cooperation and integration for strengthening water and energy security. Its fourth phase, CAWEP-4, was launched in October 2023 and will continue until December 2028. CAWEP-4 is structured around five components: building the evidence base; strengthening regional and national institutions; facilitating regional dialogue; supporting regional and national investments; and enhancing climate resilience and operational responses. As of 30 June 2025, the total CAWEP-4 budget amounted to $24.96 million, almost twice the size of the previous phase. Of this amount, $14.09 million had been allocated to 29 projects, with disbursements reaching $8.85 million, or 63% of allocated funds.

Activities in 2025

In 2025, CAWEP-4 moved from strategic discussions towards concrete joint actions.

Modeling and analytical support. The “Water–Energy Nexus Systems Modelling” Project supported evidence-based policy and planning through the development and application of an integrated modelling framework. A pilot assessment explored alternative policy and climate scenarios, generating projections for agricultural production and hydropower generation while providing analytical inputs for related modelling activities and economic assessment.

Work continued on “Digitalization of the Water Sector in Central Asia” Project, with the objective of creating a more integrated information base and automating data collection. The “Development of Innovative Modeling Tools to Analyze Water Availability for the Water–Agriculture–Energy Nexus under the Changing Climate” Project advanced the development and application of integrated modeling tools for Tajikistan and the Kyrgyz Republic to support climate-resilient water resources planning. Technical assessments and Climate and Development Report (CCDR) analyses provided new evidence on the impacts of climate change on water availability, agriculture, energy, and the broader economy, while identifying priority adaptation measures.

The “Dam Safety and Modernization in Central Asia” Project contributed to the preparation of the first comprehensive regional dam database, assessment of sedimentation risks and development of modernization plans for hydraulic infrastructure.

In 2025, “Managing Natural Storage for Climate Adaptation: Mountains and Groundwater Storage in Central Asia” Project launched work on assessing the impacts of climate change on snow and glacier hydrology in Central Asia. Initial research and a draft assessment report highlighted accelerating glacier retreat and identified priorities for improving seasonal monitoring, hydrological forecasting, and climate adaptation.

Large investment projects. In 2025, CAWEP supported several major regional and national initiatives. The Kyrgyz Republic and Turkmenistan signed an agreement on energy cooperation at the sixth session of the Turkmen–Kyrgyz Intergovernmental Commission (25 July). In April 2025, the Datka–Sugd 500 kV transmission line between the Kyrgyz Republic and Tajikistan was commissioned under CASA-1000. In Uzbekistan, a $200 million concessional loan was approved as the first stage of a broader $940 million regional Water Efficiency and Conservation Multi-phase Program to modernize irrigation infrastructure.

In June, Tajikistan commissioned the 11 MW Sebzor HPP in the Gorno-Badakhshan Autonomous Oblast. The project was financed by the European Union and KfW, while SECO and the World Bank supported the transmission infrastructure. CAWEP contributed by financing the completion of the project's technical, environmental, and social documentation.

As part of the “Promoting Kambarata-1 Potential for Scaling Up Renewable Energy and Joint Management of Water and Energy Resources in Central Asia” Project, support was provided to ministerial consultations, climate and feasibility studies, socio-economic assessment, and development of sustainable financing mechanisms for the project.

Events. CAWEP supported: the 7th CACCC-2025, which resulted in the preparation of a draft Regional Climate Action Plan, including commitments related to renewable energy, youth engagement and coordinated regional positions ahead of COP30 (Ashgabat, 13-15 May); the second ministerial roundtable on the preparation of the Kambarata-1 HPP Project (Dubai, 26–27 May). The Program supported regional working group meetings, workshops, energy knowledge exchanges and dialogue platforms aimed at strengthening water-energy cooperation in Central Asia.

Regional dialogue and institutional development. CAWEP continued supporting the reform process of IFAS through its Regional Policy Dialogue in Support of Reforms and Strengthening of Regional Institutions activity (grant: $400,000): 14th meeting of the reform working group in Dushanbe, where countries continued discussions on Phase 3 of institutional reforms (June).

Source: World Bank, Central Asia Water and Energy Program. Annual report, July 1, 2024-June 30, 2025, Phase 4

8.2. Development Partners

8.2.1. European Union

The European Union’s engagement with the region has significantly expanded since the early 1990s. In 2019, the Council adopted a new EU Strategy on Central Asia. The new-generation bilateral Enhanced Partnership and Cooperation Agreements (EPCAs) form a cornerstone of EU engagement.

In 2025, EU relations with Central Asia entered a new phase. A milestone was the first-ever EU–Central Asia Summit (Samarkand, 4 April), where the parties elevated their relations to a strategic partnership, reaffirming their commitment to the 2019 Strategy and the 2023 Joint Roadmap for deepening ties. A €12 billion Global Gateway investment package was launched for Central Asia, covering the Trans-Caspian International Transport Route, energy, water and climate projects, digital infrastructure, and resilient critical raw materials value chains. Through these initiatives, the EU seeks to expand its economic presence, diversify Europe–Asia transport routes, and strengthen the region’s resilience to external challenges.

The European Investment Bank (EIB), the EU’s financial institution, plays a key role in implementing the EU’s regional investment agenda. In Central Asia, it provides loans for EU investment priorities, complementing European Commission grants and guarantees, including under Global Gateway.

Activities in 2025

Kazakhstan reaffirmed its position as a key EU partner in the region. Under Global Gateway, the parties signed two agreements: (1) a €200 million EIB framework loan to the Development Bank of Kazakhstan, backed by an €18 million EU guarantee, for sustainable transport and renewable energy projects, including the Trans-Caspian International Transport Route; and (2) a €3 million contract implemented with EBRD to strengthen cooperation on critical raw materials.

Kyrgyzstan continued developing relations with the EU under the new Enhanced Partnership and Cooperation Agreement signed in 2024. In 2025, priorities included transport and energy infrastructure modernization, water management, and socioeconomic reforms. The EU, EIB, Kyrgyzstan, Kazakhstan, and Uzbekistan signed memoranda of understanding totaling €900 million to support construction of Kambarata-1 HPP. The EU also supported a project to reduce climate and environmental risks in the Fergana Valley, covering Osh and Jalal-Abad provinces.

Tajikistan strengthened its partnership with the EU in transport, water, and energy. In Samarkand, EIB signed a memorandum with the national government on potential allocation of €100 million for sustainable transport infrastructure, particularly sections of the Trans-Caspian International Transport Route. The EU also continued funding water, climate adaptation, and hydropower projects under the regional Team Europe initiative.

Turkmenistan stepped up cooperation with the EU to improve transport connectivity. At the first EU–Central Asia Summit, EIB and the government signed a memorandum to launch negotiations on a Framework Agreement enabling the Bank to finance projects in the country. Priorities include (1) developing the Trans-Caspian International Transport Route (Middle Corridor), (2) modernizing transport infrastructure, and (3) implementing climate projects. Meanwhile, the EU for a Green Turkmenistan program continued supporting climate policy, energy efficiency, and renewable energy. In 2025, activities with CCAC/UNEP and GIZ focused on developing a national methane emissions reduction strategy.

Uzbekistan hosted the first EU–Central Asia Summit. During the meeting, EIB signed a memorandum with Uzbekistan Water Implementation Centre on €175 million for water management and Aral Sea region restoration projects. An agreement with Microcreditbank provides €40 million in loans for SMEs in sustainable transport and logistics. A €7 million grant was provided to further implement the Agricultural Development Strategy 2020–2030, bringing total EU commitments to the sector to €20 million.

Source: ec.europa.eu

8.2.2. German Society for International Cooperation

As a globally active federal enterprise for international development cooperation, the German Society for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit – GIZ) GmbH supports the German Federal Government in implementing its development policy goals. Since the beginning of the 1990s, GIZ has been implementing programs and projects in Central Asia.

Regional Programs and Projects on Water, Environment, and Development

The German Government, in collaboration with its Central Asian partners, continues implementing the Green Central Asia (GCA) initiative to strengthen regional dialogue on climate, environment and security. In 2025, Green Central Asia (GCA), Phase II – Transboundary Dialogue on Climate, Environment, and Security in Central Asia – Bridging Borders to Enhance Regional Adaptation and Mitigation, continued supporting implementation of the Regional Climate Change Adaptation Strategy for Central Asia (RCCAS).

An Interim Virtual Secretariat was established and a matrix and an Action Plan for implementation of the Strategy were developed. Progress on the Strategy was reviewed at the fourth (Ashgabat, 14 May) and fifth (Dushanbe, 27-28 November) meetings of the Regional Working Group (RWG).

As 2025 marked the submission year for renewed Nationally Determined Contributions (NDCs), Green Central Asia provided direct and indirect support to national partners across the region. In Tajikistan, the program supported the establishment of the National Center for Implementation of the Paris Agreement and contributed to drafting key sections of the country's NDC 3.0, particularly those related to the water–energy sector.

Promoting science-based policymaking and international best practices remained a core priority. GCA strengthened cooperation between leading European research institutions and Central Asian counterparts through regional workshops on weather forecasting, drought monitoring and glacier modelling. The program also organized two joint regional scientific expeditions to the Hydrographic Party (HGP) Glacier in Tajikistan (25 July -1 August) and the Barkrak-Sredniy Glacier in Uzbekistan (8-18 August), helping revive regional scientific dialogue and identify national needs for improved glacier monitoring.

During the year, GCA organized or co-organized several RWG meetings addressing climate adaptation, mutually beneficial water–energy mechanisms, and e-waste management. In cooperation with national and development partners, the program also supported a number of national and regional events of strategic importance.

The program contributed to the 7th Central Asia Climate Change Conference (CACCC-2025), helping align regional policies with global climate goals and prepare for COP30 (Ashgabat, 13-14 May).

Green Central Asia additionally received European Union co-financing to support Turkmenistan's green transition, particularly methane reduction. An EU-funded tender for Leak Detection and Repair (LDAR) technology was completed in October 2025; equipment delivery is expected in 2026, followed by specialized training and deployment of an AI-supported monitoring system. A pilot project “Drainage Water Treatment Using Microalgae and Installation of a Solar-Powered Water Pumping System” to clean drainage water and pump it back to fields using solar-powered pumps also completed its preparatory phase, including water quality assessments, algae strain selection and a SWOT analysis.

In parallel, GIZ continued implementing the regional program "Climate-Sensitive Water Resources Management in Central Asia" (2023–2028), promoting IWRM through basin dialogues along the Amu Darya and Syr Darya, supported by scientific expertise from SIC ICWC (see details in IFAS and Other Regional Organizations in Central Asia). The program contributes to the EU Team Europe Initiative (TEI). GIZ serves as the Technical Secretariat of the TEI, coordinating working and steering group meetings with the five partner countries, organizing capacity-building activities, and implementing EU-supported activities on regional water cooperation, water quality monitoring and groundwater management. Work on an IWRM handbook and teaching materials, developed jointly by Martin Luther University and eleven Central Asian universities, is ongoing.

GIZ and the Global Green Growth Institute (GGGI) launched the regional project “Bridging the Gaps of Climate Finance in Central Asia”, funded by UK International Development. The project aims to unlock green investment opportunities in Uzbekistan and Kyrgyzstan by strengthening climate finance frameworks and supporting the development of green financial products (12 November).

Source: GIZ, GIZ Green Central Asia Program

8.2.3. Organization for Economic Co‑operation and Development

The Organization for Economic Co‑operation and Development (OECD) is a multidisciplinary, inter-governmental organization comprising 38 member countries and provides a unique forum and the analytical capacity to assist governments to compare and exchange policy experiences, and to identify and promote good practices through policy decisions and recommendations.

The OECD is working to help developed and developing countries meet the water challenge. The OECD contributes analyses to improve the information base, identifies good practices, and provides a forum for exchanging country experiences. OECD work on water focusses on the economic and financial dimensions of water management and improving governance.

In addition to analytical work, the OECD contributes to reforming water policies, organizes stakeholder dialogues by setting up international initiatives including the Roundtable on Financing Water, the Water Governance Initiative, and the Network of Economic Regulators. The OECD facilitates the Global Commission on the Economics of Water (GCEW) which was convened by the Government of the Netherlands and launched in 2022 with the aim of redefining the way water is valued and governed for the common good.

The OECD Council Recommendation on Water can inspire water policy reforms in countries around the globe and includes high-level policy guidance on topics relevant for water resources management and the delivery of water services including managing water risks, ensuring good water governance and sustainable finance, investment and pricing for the water and water services.. Non-member countries are welcome to adhere to the Recommendation with a view to create a momentum for water policy reforms that contribute to water security and sustainable growth.

Activities in Eastern Europe, the Caucasus and Central Asia in 2025

The OECD continued working with partner countries through the GREEN Action Task Force in the EECCA region. The GREEN Action Task Force annual meeting in 2025 was held on 4-5 February 2025 in Paris, France, with an agenda that reviewed progress with implementation of the programme of work for 2025-2026 and a substantive focus on climate-resilient, low-carbon agriculture; post-disaster recoveries: lessons and ways forward; sustainable mining; and a special session on climate co-operation in Central Asia. The meeting also presented a brochure from the OECD work in the region titled Greening Eastern Europe, the Caucasus and Central Asia.

The OECD assisted the countries in EECCA in adopting a more integrated approach to water management, applying robust economic and financial analyses and developing National Policy Dialogues jointly with UNECE. Particular focus was on improving economic mechanisms, financial instruments, and policy coherence in the sector.

Work in Eastern Europe and the Caucasus was carried out within the frame of the EU-funded EU4Green Recovery East Programme which the OECD implements in partnership with international partners. This programme was launched in 2025 and in particular, OECD work will focus on reform of economic instruments, addressing pollution from mining, support for Nature-based Solutions, strengthening the use of environmental data for policy making and facilitation of National Policy Dialogues on water.

In Central Asia, work has focussed on the development of energy, water and food security nexus approach. In 2025, this work led to a new publication titled Strengthening the water-energy nexus for a climate resilient Central Asia which was authored in partnership with SIC ICWC.

In 2025, the OECD organized and supported regional events, including: (1) Regional forum “Enhancing Transboundary Cooperation for Water Sustainability and Climate Resilience in Glacier-Dependent Basins of Central Asia” organized by SIC ICWC in co-operation with UNECE, OECD, SDC, UNRCCA, World Bank, GIZ and IWMI during the International High-level Conference on Glaciers’ Preservation (Dushanbe, 29 May); (2) Fourth (Astana, 10 July) and Fifth meetings of the Regional Working Group on a Mutually Beneficial Water-Energy Mechanism (Tashkent, 5 December) organized in partnership with the Green Central Asia Initiative; проведенные совместно с программой Green Central Asia; (3) a Regional Technical Workshop on Climate Change Solutions for Companies in the Agrifood Sector co-convened by the EBRD, in partnership with FAO (Bishkek, 21 October); (4) a Regional Workshop on Scaling Up Investments in Climate Resilience in Central Asia: Exploring Effective Strategies and Tools, in partnership with the Union of Banks of the Kyrgyz Republic and GIZ within the framework of its Green Economy and Sustainable Private Sector Development Programme (Bishkek, 22–23 October).

At COP 30, the OECD announced its participation in an Italian Initiative: The Nature-Based Solutions-Innovation Accelerator, on sustainable infrastructure and climate resilience. A particular focus is placed on energy, water, urban, and transport infrastructure in Central Asia. This work will commence in 2026.

Source: Organization for Economic Co‑operation and Development

8.2.4. Organization for Security and Co-operation in Europe

The Organization for Security and Co-operation in Europe (OSCE) has a long history in supporting its Central Asian participating States in the area of regional water management, focusing on water governance and support for transboundary water management, training and capacity development, research and development of standards and legislation.

Activities in 2025

OSCE Secretariat. The Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) continued promoting sustainable water management and good water governance, fostering dialogue and the peaceful resolution of competing water-related needs. It does so in close co-ordination and complementarity with the UNECE Water Convention Secretariat, Geneva Water Hub, Turkish Water Institute (SUEN), and others.

The OCEEA continued integrating gender and youth perspectives in water governance through the project “Women, Water Management and Conflict Prevention”, which is now in its Phase III, focusing on capacity building and development for women in the water sector in Central Asia. Activities with the Women in Water Management Network in Central Asia included the organization of capacity-building and knowledge-exchange online sessions; the organization of a study tour to Switzerland and Germany on transboundary water co-operation targeted towards women water professionals from Central Asia and the South Caucasus, back-to-back with the 42nd UN-Water Meeting. Participants explored transboundary water co-operation at the UNECE Water Convention, the role of data and diplomacy with the WMO and the Geneva Water Hub. In Koblenz, they engaged with the International Commission for the Protection of the Rhine and the Federal Institute of Hydrology (Koblenz, Germany, 29 September – 4 October).

The OCEEA, in co-operation with: (1) the OSCE Conflict Prevention Centre and SUEN organized a capacity-building initiative aimed at strengthening negotiation skills in water and energy-related fragile contexts characterized by trade-offs (Istanbul, 20–24 October); (2) IUCN developed the toolkit “Data and Information Exchange in Transboundary Basins”, which provides recommendations on using digital technologies, water monitoring, and data-sharing mechanisms to strengthen transboundary cooperation and trust; (3) the Geneva Water Hub developed an e-learning course on “Data Sharing and Digitalization in the Water Sector”.

With the aim of addressing water-energy-food nexus challenges in Central Asia and managing related trade-offs and climate implications, OCEEA, hosted the final event of the “Drops of the Future” workshop series (Vienna, 25–27 February). The event’s main result was the development of a “Declaration for shaping the future approach to WEF nexus across Central Asia and beyond”. The declaration was later presented to participating States at the OSCE Economic and Environmental Committee (26 March), to the Thematic Youth Assembly Consultation on Water management, and to the Youth Assembly Session at the 2025 Rome Water Dialogue.

OSCE Programme Office in Astana (POiA). POiA continued to advance water management through two key areas of intervention: strategic planning for river basin councils and facilitation of transboundary water governance.

Support was provided to one session of the Tobol-Torgay Basin Council (26 мая), complemented by two training seminars for basin council members. The Office in partnership with (1) the Information and Analytical Center for Water Resources of the Ministry of Water Resources and Irrigation drafted a framework of geoinformation system for the IWRM Master Plan of Kazakhstan; organized a round table “Joint initiatives for the new Water Code: implementation, practices, and prospects” (Astana, 29 September); (2) IWAC, UNECE and SIC ICWC co-organized a week-long seminar for representatives from all basin inspections to clarify the provisions of Kazakhstan's new Water Code (Astana, since 6 October).

OSCE Programme Office in Bishkek (POiB). The POiB together with the POiA continued supporting the Chu-Talas Water Commission through joint water quality monitoring, data exchange, and coordination of pollution prevention measures. At the 13th meeting of the Working Group on Environmental Protection, the results of these activities were presented and the Commission’s 2026 work plan was approved (Almaty, 5 December).

At the request of the Service for Water Resources, the POiB supported the organization of the 7th Meeting of the Joint Kyrgyz-Uzbek Water Commission. During the meeting, the parties reviewed progress on previously agreed decisions and addressed issues including the joint use of small transboundary watercourses in Fergana Valley, approval of water intake limits, measures to improve water management practices, and the operation and safety of interstate water infrastructure.

OSCE Programme Office in Dushanbe (POiD). In 2025, the POiD supported Tajikistan in strengthening sustainable water management, in alignment with Tajikistan’s Water Sector Reform Program (2016–2025) and the National Water Strategy 2040. The key focus areas included strengthening water governance, enhancing water infrastructure and laws, strengthening institutional capacity and promoting women’s leadership and youth engagement in the water sector.

The OSCE POiD assisted in drafting a new Law of the Republic of Tajikistan on Irrigation and Land Reclamation, supported the development of a procedure for setting tariffs for water supply and drainage services and of standard operating procedures for wastewater quality control .

The OSCE POiD contributed to development of technical needs assessments and investment-ready proposals for the rehabilitation and automation of major water intake facilities along the Panj River, which were submitted to national authorities for potential inclusion in the Public Investment Programme and for consideration by international financial institutions.

The office supported organization of the: 13th meeting of the Tajikistan National Committee on Irrigation and Drainage, to discuss evidence-based approaches to current water management challenges (4 December); meetings of the Kofarnihon (25 April) and Panj River Basin Councils, and of the Inter-institutional Working Group on Tailings Safety and the Prevention of Accidental Water Pollution (15 August). The OSCE POiD also conducted targeted awareness-raising activities on the water-related provisions of the newly established Tajikistan–Kyrgyzstan border agreement, including training sessions for representatives of regional water management organizations from Tajikistan (17 October).

Capacity-building activities included a training-of-trainers program for Steering Committee members of the Syr Darya River Basin Women’s Forum (20–22 November); training for young water professionals on IWRM, transboundary cooperation, and national water legislation (16–18 May); and strategic planning courses for specialists of the Agency for Land Reclamation and Irrigation (29 November–1 December). A Student Council on Water and Climate Issues was established at the Tajik Agrarian University.

OSCE Project Co-ordinator in Uzbekistan (PCU). In 2025 PCU continued its efforts to monitor pollutants in the Syrdarya River Basin and to conduct biodiversity expeditions in the Aral Sea region, while conducting field surveys and laboratory analyses of water and sediment samples, with further assessment of pollution and radiation levels in the environment.

In co-operation with the IFAS Agency, the PCU organized two scientific field missions to the Aral Sea region. The fieldwork focused on monitoring water levels and salinity, assessing vegetation conditions, GPS mapping, and the collection and preliminary analysis of biodiversity data. Modern monitoring methodologies were applied, including bioindication – an effective tool for assessing environmental quality based on the response of living organisms (June, October).

Source: Organization for Security and Co-operation in Europe

8.2.5. Swiss Confederation (SDC and SECO)

Switzerland is concluding its Cooperation Programme for Central Asia (2022–2025), maintaining its focus on water management, infrastructure development, and climate change adaptation. The programme includes regional initiatives and projects in Kyrgyzstan, Tajikistan, and Uzbekistan, promoting sustainable development, stability, and public safety.

Building on earlier initiatives, the Programme promotes sustainable river basin management, supports water sector reforms, and advances IWRM at national and transboundary levels. It also aims to strengthen communities’ climate resilience and improve access to reliable water supply and sanitation services.

Regional cooperation. Switzerland remains actively engaged in advocating for regional cooperation around Water and Energy in Central Asia through its flagship initiative, Blue Peace Central Asia (BPCA), promoting hydro-diplomacy, regional institutional capacity and evidence-based dialogue. In 2025, the First Meeting of the Tajik–Kyrgyz Joint Water Commission (Dushanbe, 6 October) took place and dialogue platforms in the Amu Darya and Syr Darya river basins continued to be supported. These efforts aim to leverage technology and digitalization, alongside improved governance frameworks, to enhance data sharing and transboundary water management

The Smart and Precise Prognostic Hydrology for Innovative Risk Management and Resource Use Efficiency in Central Asia (SAPPHIRE) project enables an exchange platform for all Hydromets in the region. The project modernizes operational hydrology workflows in Central Asia Hydromet organisations, streamlines data management and processing steps, improves quality of forecasts of river discharge and builds capacity and interagency regional cooperation. Through digitalization and the integration of machine learning methods, SAPPHIRE has enhanced forecasts in 526 basins in Central Asia. SAPPHIRE is directly linked to the Swiss Cryospheric Observation and Modelling for improved Adaptation in Central Asia (CROMO-ADAPT) project. CROMO-ADAPT strengthens glacier, snow and permafrost monitoring, develops user-oriented climate services, and supports the planning of adaptation measures to increase resilience to climate change.

Progress is being made in fostering regional cooperation and sustainable management of water and energy resources in Central Asia. The Swiss-supported Central Asia Water and Energy Program (CAWEP) trust fund serves as a key instrument for supporting regional initiatives and dialogue on key infrastructure projects Kambarata-1.

The new initiative on Regional Groundwater Management has started and is building on the Governance of Groundwater Resources in Transboundary Aquifers (GGRETA) project.

National level. In the Kyrgyz Republic Switzerland has concluded the implementation of the National Water Resources Management Program (NWRMP), which contributed to the process of the new water code elaboration and adoption in 2025, advancement of the basin approach and development of water management information system. Complementary to NWRMP, Switzerland supports the Water Use Permits Project. Switzerland supported the Water Services and Sanitation Universal Access Program. The program will enhance the universal and sustainable access to water and sanitation in the Kyrgyz Republic benefiting 450,000 people in 126 rural villages and small towns in Chui, Issyk-Kul, and Osh provinces. Urban and rural resilience was strengthened through innovative initiatives such as agro-insurance schemes, local risk mapping, and best practices in resilient urban development. Furthermore, the energy sector saw significant progress through annual tariff adjustments, a key conditionality of the Kyrgyz Electricity Sector Modernization and Sustainability (KEMS) project.

In Tajikistan Switzerland supported reforms in the Syr Darya River Basin, the integration of basin planning into regional development, and implementation of the National Water Strategy 2040. The Swiss CA Program 2022–2025 provided 130,000 people with resilient, safe drinking water and 400,000 with enhanced sanitation and hygiene services. Water fee collection increased to 92% in urban areas and 82% in rural areas. The constructed disaster resilient Sebzor, Khorog, and Pamir-I 110 kV substations financed by Switzerland strengthened the energy infrastructure of GBAO. Additionally, the Masterplan Plan for Khorog city has been endorsed, accuracy of hydrometeorological forecasts was improved to 90%, and climate adaptation and disaster risk reduction measures were extended.

Uzbekistan has significantly advanced its water sector reforms by fully integrating IWRM principles into its national governance. The nation officially adopted the new Water Code establishing a definitive regulatory and strategic framework for the future. This progress is complemented by the formal adoption of the Water Sector Gender Concept and its corresponding Action Plan. Institutional capacity has been further bolstered by the operationalization of the Drinking Water Operations (DWO) Unit within the Ministry of Construction and Housing and Communal Services (MCHCS).

In the Zarafshan River Basin, the development of the TaqSim model has provided a flexible water allocation solution specifically designed for data-scarce environments and complex multi-stakeholder systems, while the establishment of the Zarafshan River Basin Council is now actively underway.

Uzbekistan has officially established the Inter-Institutional Working Group (IIWG) as a high-level governance mechanism for water pollution prevention and tailings safety. The IIWG has fostered a robust multi-stakeholder policy dialogue, marking a decisive step forward in the implementation of the Industrial Accidents Convention. In 2025, the IIWG convened for its third meeting (26 October).

Source: Swiss Agency for Development and Cooperation

8.3. Other Development Partners

In 2025, the French Development Agency (AFD) focused on water security, climate change adaptation, and sustainable infrastructure. The agency allocated €1.35 million to develop a Master Plan for Sustainable Water Management for Lake Balkhash Basin in Kazakhstan, in cooperation with the French Geological Survey (BRGM) and Kazakh specialists. The plan, scheduled for completion by the end of 2026, includes a comprehensive water resources assessment, digital monitoring, and improved basin management. The Executive Committee of IFAS received a €2 million grant for two projects under ASBP-4 in Kazakhstan and Uzbekistan: (1) “Correction of Hydromodule Zoning in the Syrdarya River Basin Using Remote Sensing and Satellite Mapping Technologies to Improve Agricultural Water Demand Estimates and Irrigation Scheduling for Crops Cultivated in the Region” (see IFAS and Other Regional Organizations in Central Asia); and (2) “Water and Education: Fostering a Culture of Responsible Water Use and Conservation of Water Resources among Youth in Kazakhstan and Uzbekistan” (jointly with UNICEF). In Uzbekistan, implementation continued of the “Energy and Climate” policy support program (€150 million from AFD and $200 million from ADB), including technical assistance on tariff policy, gender mainstreaming, and long-term low-carbon planning.

The Japan International Cooperation Agency (JICA) continued its long-term programs in Central Asia, prioritizing water, energy, agriculture, and human capital development. In 2025, Uzbekistan continued implementing the Amu-Bukhara Irrigation System Rehabilitation Project (since 2015, approximately $100 million) and the SATREPS program, aimed at developing new technologies to monitor and control efficient water use, combat soil salinization, and improve land productivity in the Aral Sea region. In Tajikistan, work continued on improving agricultural extension services through the SHEP approach (market-oriented horticulture). In Kyrgyzstan, grants were allocated to establish and equip a training center in Bishkek for specialists in power grid operation and maintenance, including renewable energy systems, and to reconstruct a bridge over the Naryn River to improve transport connectivity.

In 2025, the Korea International Cooperation Agency (KOICA) focused on water management digitalization, climate-resilient agriculture, and institutional capacity building. In Uzbekistan, post-project support for the ICT-based IWRM Project was completed, restoring the real-time water monitoring system. In Tajikistan, an agreement was signed to invest $18.5 million in modernizing irrigation systems and horticultural infrastructure. In Kyrgyzstan, a four-year, $10 million project was launched to develop a national air quality management plan and establish emission reduction measures in Bishkek.