<img src="https://img.day.az/2024/10/11/800×550/trend_aiib_interview_runze.jpg" class="article-image" alt="AIIB intends to develop transport infrastructure in Central Asia“/>
Source: Trend International Information Agency
The Asian Infrastructure Investment Bank (AIIB) intends to develop transport infrastructure throughout Central Asia.
As Day.Az reports, AIIB investment operations specialist Runze Yu said this in an exclusive interview with Trend.
He emphasized the importance of Central Asia and Uzbekistan in particular as a key client of the bank and outlined ongoing efforts to improve cooperation between the parties.
“We have a strong program in the road sector in this country,” said a bank spokesman, referring to the bank’s current project in the Bukhara region, which involves the construction of 78 kilometers of the A380 international highway.
He also added that the AIIB is developing a new initiative focused on local roads to ensure the benefits of development reach a wider audience.
In addition to road infrastructure, the AIIB is active in the railway sector, participating in initiatives to electrify Uzbekistan’s railways. “We are very optimistic about the trend towards electrification of mobility assets in Uzbekistan, including electric vehicles (EVS) and charging infrastructure,” he said.
AIIB’s activities extend not only to Uzbekistan, but also to Tajikistan, where the bank is building bridges to improve transport links. In Kazakhstan, the AIIB is also working on additional transport projects in the road sector.
Runze Yu emphasized the AIIB’s strong interest in participating in the electrification of mobility. “We are currently trying to engage relevant government agencies to understand the big picture, as it appears that these efforts are still largely led by the private sector rather than the government,” he explained. The Bank negotiates with key stakeholders to identify suitable projects and entry points for its participation, whether government initiatives or private sector initiatives.
In Uzbekistan, the AIIB is part of an ongoing three-year program in which the government is committing about $4 billion. However, it is estimated that between 25% and 30% of this portfolio is allocated to the transport sector. “I think we have the opportunity to increase our order book, but we also need to discuss with the government how we can systematically solve emerging problems,” said Runze Yu.
One of the major challenges is the communication barrier between stakeholders. “I keep saying we have the capacity and the knowledge, but the information doesn’t seem to be really being shared between the different stakeholders,” he said. Runze Yu believes that multilateral development banks (MDBs) can play an important role in bringing all stakeholders around the table to share information.
Since July 1 last year, the AIIB has committed to bringing its projects into line with the Paris Agreement. “All of our projects are currently being assessed for compliance with the Paris Agreement,” said Runze Yu. He expressed confidence in the bank’s compliance with these guidelines, noting that all project team leaders are well versed in the methodology used to develop, structure and evaluate projects. “I am confident that with these recommendations we are now 100% compliant with the Paris Agreement, which also drives tangible climate finance for our clients,” he said.
Runze Yu emphasized the need to go back to basics when assessing cross-border international corridors, saying: “We should always look at traffic volumes and how they are growing or decreasing.” Understanding the structure of these volumes will help the AIIB find the best solutions.
The AIIB is closely monitoring developments in relation to the Middle Corridor, concentrating its investments on key stages or bottlenecks. Engaging with governments to understand their needs is critical because, as a bank spokesman noted, “there are certainly huge opportunities ahead.”
Runze Yu expressed the bank’s optimism regarding the international consensus on combating climate change: “We are very pleased that an international consensus has been reached on the need for joint action against climate vulnerabilities and risks.” The AIIB views the upcoming COP29 as an important platform for building this consensus.
In conclusion, Runze Yu emphasized the importance of a service-oriented approach. “We must ensure that our funding goes to the investments that are most needed,” he said. However, he also noted the various challenges faced by different countries and believes that overcoming them is critical, especially at the project level.