A new integrator
This year, the Eurasian Development Bank, established at the initiative of Kazakhstan and Russia, marks its anniversary: the establishment agreement was signed by the two countries on January 12, 2006, and by June the bank had already begun operations, opening its headquarters in Almaty. In 2009-2010, Armenia, Tajikistan, and Belarus joined the bank; in 2011, Kyrgyzstan; and in 2025, Uzbekistan.
Over two decades, the bank has become one of the key drivers of economic integration and sustainable growth in the Eurasian space and has significantly expanded its operations: today, the EDB is the leader in non-sovereign financing in the Eurasian region (40% of multilateral development banks' investments).
Additional support is provided in the implementation of public-private partnership projects, as well as in digital development and technical assistance. The Digital Initiatives Fund was launched in 2020, and its first project was the development of the "Travel without COVID-19" app; today it is developing AI infrastructure and government digital platforms. The Technical Assistance Fund was established back in 2008-this entity supports the preparation of investment initiatives, advancing integration processes, conducting analytical research, as well as the development of the region's PPP ecosystem.
Investment impact
By the end of December 2025, the EDB's cumulative portfolio included 326 projects with a total investment volume of $19.6 bn, and including co-financing mobilized from partners for the projects, $63.5 bn.
Nikolai Podguzov on the bank's investments:
For every dollar we invested, we attracted more than two additional dollars in investment. Projects already launched add more than $14 bn annually to the GDP of the member states' economies, and more than 44,000 jobs have been created within them. The most intensive growth in the bank's investments came during the implementation of the current five-year strategy-$9.2 bn, meaning that over these five years we have invested in the development of the member states almost as much as in the previous 15 years, and we are determined to exceed this strategy's target indicators.
The largest share of investments went to transport and logistics infrastructure, the energy sector, industry, and financial sector development. For example, in Kazakhstan, completed projects include the construction of the Big Almaty Ring Road (BAKAD) (investment volume: $135 mln), the construction of Turkestan Airport ($132 mln), and the modernization of Almaty Airport ($36 mln). In terms of investment size, the largest projects are the reconstruction of Almaty CHPP-3, increasing the plant's capacity to 500 MW (investment size: $411 mln), and investments in the construction of a polyethylene production plant ($400 mln).
In Belarus, the bank is implementing a private-sector project to expand oilseed processing production and a major logistics project. In Russia, it financed transport infrastructure and industrial projects, such as the construction of a hydrogen peroxide production plant.
In Kyrgyzstan, the bank's landmark projects include the construction of the Kant Cement Plant ($61.2 mln) and the 100 MW Kulanak HPP ($44 mln); in Armenia, investments in dairy and meat production with the Yeremyan Projects group of companies ($38.9 mln). In Uzbekistan, the bank has already invested in industry and recently announced a joint project with Uzum. In Tajikistan, projects are being implemented in food production, road reconstruction, small business support, and digital projects.
Transport, energy and partnerships
All EDB projects are aimed at promoting the sustainable growth of the market economies of the member states, while the bank identifies three priority areas: the development of transport and logistics, the modernization of the water sector and the energy sector, and the strengthening of partnerships with international development institutions.
The first area includes two megaprojects being implemented under the bank's current five-year strategy: the Eurasian Transport Framework-a project aimed at creating and modernizing a network of transport corridors linking Asia, Europe, and the Middle East (this definition covers all types of transport infrastructure: roads and bridges, the railway network, border crossings, and related infrastructure); and the Eurasian Goods Distribution Network-a project aimed at creating a logistics system that expands warehousing capacity in the member states, as well as developing expertise in this area.
It is expected that, as a result of the projects' implementation, the region's trade with markets outside the region will grow by 34% by 2031, while the bank's analysts note that Kazakhstan and Uzbekistan are already becoming key hubs of Eurasian logistics and distribution, strengthening the region's role as a connecting link between China and Europe, Russia and South Asia and the Middle East, as well as the markets of the South Caucasus and the Caspian basin.
The second area is represented by the Water-Energy Complex of Central Asia megaproject. As part of the project, the bank is cooperating with the Ministry of Water Resources of Kazakhstan and the United Nations Development Programme to build a business ecosystem for sustainable irrigation and is conducting research in this area. In addition, in Kyrgyzstan the bank is financing the construction of the Kulanak HPP and, together with UN ESCAP, is developing cross-border energy.
According to EDB expert estimates, 10 mln people in the Eurasian region lack access to clean drinking water, while outdated systems lead to losses of up to 55% of total water volume. At the same time, energy consumption may grow by 40% by 2030-the region's economy is characterized by high energy and water consumption, especially in agriculture and industry.
In addition, the bank is studying the role of the multilateral development bank (MDB) system in the global economy. The financing gap for the Sustainable Development Goals (SDGs) is estimated at $4 trn annually, while the combined investments of MDBs amount to only about $180 bn per year, and the share of their assets in global GDP has declined from 1.9% to 1.7% over the past 25 years. To bridge the gap, it is necessary to at least double the capital of multilateral development banks and to expand cooperation aimed at channelling private capital into project work.
More than $22 trn in private assets has been accumulated worldwide, but these funds have not yet reached projects in developing countries. The main barrier is the mismatch between risk level and yield: private capital goes where the risk is justified by profit.
EDB Head Nikolai Podguzov:
Development projects are often low-margin. If we can ensure that risks decline and yields rise, capital will come.
The issue is also being actively discussed on the G20 agenda: the grouping has a working group dedicated to strengthening the role of development banks, and its participants have already approved a multi-year roadmap for MDB reform. The EDB has also submitted its proposals: a report on options for increasing the equity capital of regional and subregional MDBs also lists new ways to increase capital, through the rechanneling of Special Drawing Rights and the issuance of perpetual debt instruments.
Growth for the long term
Today, Central Asia is one of the fastest-growing regions in the world. Over the past 25 years, GDP here has grown by an average of 6% per year, above the global pace. In 2025, growth accelerated to 6.9%, the best result since 2012. According to the bank's forecast, this year the combined economy of the region's five countries could reach $600 bn, while the population of Central Asia could increase to 96 mln people by 2040.
Rapid growth also requires expanded financing: last year, the bank opened an office in Abu Dhabi, which will help attract investors from Gulf countries to projects in Central Asian countries. The EDB also obtained a licence to operate in Abu Dhabi's financial market and has already placed debut bonds in dirhams on the exchanges of Kazakhstan and the UAE (the two issues totaled 385 mln UAE dirhams, or about $104 mln).
An increase in investments in the region is also planned for the new five-year period of 2027-2031. For example, the bank expects to attract investments through Islamic finance. To this end, with the support of the Islamic Development Bank, a special Islamic finance window has been created at the EDB. The methodology has already been completed, and the first $5 mln transaction has been carried out. In addition, in 2026 a dedicated development fund will be launched with Gulf investors at Abu Dhabi Global Market (ADGM). Investors will gain access to projects in RES, mining, oil refining, and the creation of irrigation infrastructure. The EDB will share the investment risks.
In particular, the bank can become a bridge between Central Asia and the Gulf countries, ensuring cross-regional investment flows and supporting investment diversification. The bank sees the key feature of this approach as cooperation instead of competition: large institutions often lack a local presence, whereas the EDB has expertise, a deep understanding of what its shareholder-state governments need, and navigates local risks better. "The EDB is ready to play this role-joint investments deliver more value than going it alone, and private capital is essential for a multifold increase in investment," Nikolai Podguzov concludes
