EU promises to allocate €10 billion for transportation development in Central Asia

Business news correspondent
According to the EBRD, Central Asian countries need to raise €18.5 billion for their transport infrastructure / Collage by, photo editor: Arthur Aleskerov

The European Union is set to invest approximately €10 billion into the development of transportation in Central Asia, according to the Delegation of the EU to Tajikistan.

«The EU announced the overall commitment to invest €10 billion in sustainable transport connectivity in Central Asia as a combined contribution from international partners. The European Commission under the EU Global Gateway strategy is preparing a regional transport program in support of the Trans-Caspian International Route (TITR),» the delegation said in a statement.

In January 2024, the Investors Forum on Sustainable Transport Connectivity between Europe and Central Asia was held in Brussels where representatives of the public and private sector, investors and financial institutions gathered together to discuss a wide range of transport issues.

At the time, all five Central Asia states expressed their political commitments to enhance transport corridors and therefore enhance and reinforce regional connectivity. In April-May 2024, Henrik Hololei, Hors Class Adviser of the Directorate General for International Partnerships of the European Commission visited Central Asian states to conduct a series of bilateral meetings and explore how to transform the political action into tangible investments.

The TITR stretches through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, Turkey and European countries.

According to the EBRD, Central Asian states need €18.5 billion to implement 33 infrastructural projects, with Kazakhstan accounting for €5.5 billion worth of 13 projects. Once all these projects are implemented, the potential of the TITR will increase from the current six million tons to 26 million tons by 2040.

On May 29, Kazakhstan ratified the TITR development agreement signed with China. Under this agreement, cargo flow through the route will increase to 10 million tons by 2027. China will facilitate the implementation of various projects related to the construction of pipeline and port infrastructure

As Kursiv wrote earlier, Kazakhstan Railways and Chinese Lianyungang Port have agreed to build a new $96.4 million container hub in Aktau.

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