Tag Archives: IFI

World Bank endorses Tajik hydroelectric projects

MAY 10 2014 (The Conway Bulletin) – In an interview with Tajik media outlet Asia Plus, Jorg Frieden, executive director at the World Bank in charge of its projects in Central Asia, underscored the eggshells the Bank and other international organisations must tread over when dealing with large scale energy projects in the region.

The Bank’s endorsement of hydroelectric projects, whether from a technical or financial point of view, is particularly important for Tajikistan, a country full of hydro potential, but with a track record of failing to attract foreign investment.

Dushanbe is also locked in a perennial conflict over its hydropower ambitions with downstream Uzbekistan. Uzbek President Islam Karimov has said that upstream dams in Kyrgyzstan and Tajikistan could trigger water wars if constructed.

The World Bank has already pledged $526m towards CASA-1000, a project that aims to deliver power from Kyrgyzstan and Tajikistan to electricity-deficient Afghanistan and Pakistan further south.

Mr Frieden reiterated the bank’s support for CASA-1000 while acknowledging that Uzbekistan strongly opposed it.

ENDS

(News report from Issue No. 184, published on May 14 2014)

World Bank pledges $2.5b for Kazakhstan

MAY 5 2014 (The Conway Bulletin) — The World Bank signed a framework agreement with Astana to invest a further $2.5b into small and medium sized businesses and to help reform the banking sector.

This is a strong statement of intent from the World Bank.

“We are ready to start the first project on easing the access to financing for SMEs. We are glad that our collaboration with the government has been renewed,” said a spokesperson at the World Bank’s office in Astana.

In the same week, the Asian Development Bank (ADB) also signed an agreement to join its proposed $1.6b investment with a $5.5b cash injection from Kazakhstan’s own national funds.

ADB top management described the investment as “groundbreaking” as they gathered at a summit with the government in Astana.

Their investments will be primarily focused on the development of small and medium enterprises and strengthening the non-oil sector of the economy.

Both deals are important for propelling Kazakhstan further towards its stated aim of becoming one of the world’s top 30 economies by 2050.

The world’s main financial institutions appear to believe that the Kazakh economy can achieve this, or at least can punch further above its weight.

One experienced financial professional in Almaty was more candid, however. “If the money is directed towards the development of infrastructure and the private sector, then it’s a good thing. Otherwise, it can be a waste,” he said.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 183, published on May 7 2014)

ADB boosts microfinance in rural Azerbaijan

APRIL 2 2014 (The Conway Bulletin) — Azerbaijan’s government should develop rural microfinance mechanisms to help boost its economy and wean it off its addiction to oil, the Asian Development Bank (ADB) said in an annual report.

The main body of the ADB’s report covers similar ground to other economic organsiations — that as oil prices relax and Azerbaijan’s own oil output slows, revenues to the government budget are likely to dip.

This, the ADB said, will probably reduce public spending.

And public spending, fuelled by oil revenues, has been driving Azerbaijan’s economic growth.

The government, therefore, has to look for other ways of generating economic growth, the ADB said. It praised the Central Bank’s move to curb lending to consumers and instead promote growth through loans to small and medium sized businesses.

“However, more is needed to promote lending in rural areas,” the ADB said.

Roughly 40% of Azerbaijan’s population live in rural areas but, the ADB said, growth was being stymied by excessive government activity swamping private enterprise and potential state revenues. What Azerbaijan needs to do in rural areas is build micro-finance options and extend bank branch networks.

“These steps should boost rural income and, eventually, revenue from rural areas, thereby reducing the budget’s current dependence on oil earnings,” the ADB said.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 179, published on April 9 2014)

World Bank considers loan to Uzbekistan

APRIL 1 2014 (The Conway Bulletin) — The World Bank is considering a $200m loan to Uzbekistan for the construction of a railway in the east of the country, media report. China has already agreed various loans for the Angren-Pap railway that will link the eastern Ferghana Valley area with the rest of Uzbekistan.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 178, published on April 2 2014)

EBRD issues Eurobond in Georgian lari

MARCH 17 2014 (The Conway Bulletin) — Looking to give Georgia’s currency a boost, the European Bank for Reconstruction and Development (EBRD) issued its first debt in lari. The 2-year bonds were worth 50m lari ($29m). The placement appears to follow an EBRD strategy. Last month it issued 1-year bonds worth 2b Armenian drams ($5m).

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 176, published on March 19 2014)

IMF supports Armenia

MARCH 10 2014 (The Conway Bulletin) — The IMF has approved a 38 month loan roughly equal to about $127m to support economic development in Armenia, media reported. Announcing the deal, media quoted Nemat Shafik, deputy managing director of the IMF, as saying that inflation and a large current account deficit were still a worry for Armenia.

(News report from Issue No. 175, published on March 12 2014)

ADB approves road project in Azerbaijan

FEB. 23 2014 (The Conway Bulletin) — The Asian Development Bank (ADB) plans to approve a $45m loan next month to finance the reconstruction of road and bridges along the Georgian border, Azerbaijani media reported. The ADB has been instrumental in pushing ahead plans to rebuild Azerbaijan’s Soviet-era infrastructure.

(News report from Issue No. 173, published on Feb. 26 2014)

ADB invests in Azerbaijan’s roads

FEB. 6 2014 (The Conway Bulletin) — Highlighting Azerbaijan’s poor infrastructure, the Asian Development Bank (ADB) pledged to lend $150m to build new roads. The loan is part of a multi-tranche plan by the ADB to boost the road network across the country. The total cost of the project is $625m with ADB funding $500 and the Azerbaijani government the other $125m

(News report from Issue No. 171, published on Feb. 12 2014)

EBRD issues loan for Azerbaijani project

JAN. 22 2014 (The Conway Bulletin) — The European Bank for Reconstruction and Development approved a $200m loan to Russian energy company Lukoil for the development of the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea. Lukoil holds a 10% stake in Shah Deniz. The shareholders in Shah Deniz want to extend the lifespan of the field.

(News report from Issue No. 169, published on Jan. 29 2014)

World Bank and Azerbaijan sign deal on waste management

JAN. 11 2014 (The Conway Bulletin) — The World Bank and Azerbaijan signed a $42m deal for waste management projects, media reported. Analysts have said a plan is needed to deal with a projected doubling of waste expected in Azerbaijan over the next 20 years generated by a combination of income and population growth.

(News report from Issue No. 167, published on Jan. 15 2014)