ADB in Central and West Asia
ADB works with 10 developing member countries to help build resilience against economic shocks, deliver sustainable services, and promote inclusive and sustainable growth.
Economic growth varied greatly among the economies of ADB’s developing member countries (DMCs) in Central and West Asia in 2022.
Some—bolstered by spending from incoming Russian migrants, rising commodity prices, and remittances—recorded their largest economic expansion in the past decade. Afghanistan and Pakistan, meanwhile, were severely impacted by rising food and energy prices—exacerbated by the Russian invasion of Ukraine—triggering domestic inflation and curtailing consumption.
Growth in Central and West Asia is projected to slow in 2023 before increasing slightly in 2024. While the region will be lifted by economies reopening and a recovery in tourism-related sectors, the unexpected windfall some experienced in 2022 will mostly wane. Inflation will decelerate—helped by moderating global energy and food prices—but remain high.
ADB committed financial resources totaling $6 billion for Central and West Asia in 2022, comprising $4.8 billion in sovereign financing and $1.2 billion in nonsovereign investments. This supported post-pandemic green growth and increased resilience to both short- and long term challenges in the bank’s developing member countries.
ADB’s 2022 support included $2.1 billion in countercyclical support to help countries navigate the economic impacts of the Russian invasion of Ukraine. ADB also delivered a substantial emergency response for devastating floods that hit Pakistan.
Through other significant investments in the region, ADB helped improve education and health services, enhanced opportunities for women entrepreneurs, and supported climate-resilient infrastructure and the region’s clean energy transition.
ADB is providing at least $14 billion over 2022-2025 to ease the food crisis in Asia and the Pacific. Currently nearly 1.1 billion people in Asia and the Pacific lack sufficient food due to poverty and food prices, which soared to record highs in 2022.
In 2022, ADB support helped address various crises and longer-term challenges impacting poor and vulnerable communities across Central and West Asia.
In Afghanistan, a country on the brink of universal poverty, ADB committed $405 million in grants to United Nations agencies. These will help ensure supply of adequate food and sustain the delivery of essential health and education services for the Afghan people.
In Uzbekistan, ADB provided a $500 million loan to reduce the severity of socioeconomic shocks triggered by the Russian invasion of Ukraine. The financing helped the government maintain social assistance payments to more than 8.9 million vulnerable people and stabilize domestic food prices.
ADB signed a nonsovereign loan with Georgia’s TBC Bank JSC to help address a shortage of affordable housing finance in the country. The $99.7 million lari-equivalent loan—which follows a 2021 investment—will be onlent to support mortgage and home renovation financing for at least 800,000 low- and medium-income earners.
Committed
Disbursed
Cofinanced
Source: ADB Annual Report 2022
ADB placed on hold its assistance in Afghanistan effective 15 August 2021.
ADB supported financial inclusion and entrepreneurship, affordable housing loans, and improvements to maternal health services to advance gender equality in Central and West Asia in 2022.
To help increase the proportion of women-led micro, small, and medium-sized enterprises (MSMEs) in Kazakhstan, ADB provided a nonsovereign loan to microfinance organization KMF Limited Liability. The $15 million local currency equivalent loan will be onlent to MSME borrowers, including 185,000 women-led MSMEs.
Also in Kazakhstan, ADB raised 14 billion Kazakhstan tenge (about $32 million) from its second gender bond issuance in the country. The bond proceeds were used in an ongoing ADB project with Otbasy Bank to increase affordable mortgage loans to women.
To improve health outcomes for Pakistani women, ADB committed a $100 million loan for upgrading secondary hospitals in Khyber Pakhtunkhwa. Among other objectives, the project will help modernize infrastructure for women’s health and provide more medical equipment for obstetrics departments.
ADB has combined knowledge solutions with its various financing modalities to improve climate and disaster resilience and environmental sustainability in Central and West Asia.
The bank delivered a substantial emergency response to support victims of floods that raged in Pakistan from June to October 2022.
First, a $3 million Asia Pacific Disaster Response Fund grant funded emergency food supplies, tents, and other relief items. The bank then committed a further $449 million to reconstruct vital roads, restore and upgrade irrigation and drainage structures, and strengthen flood risk management. Finally, ADB provided $1.5 billion to strengthen food security, shore up employment, and enhance social protection.
ADB provided technical assistance to prepare a climate change strategy and action plan for the region. The plan will guide collaborative investment priorities aligned with the Paris Agreement and responsive to each DMC’s climate change priorities.
The action plan will be of significant benefit to Tajikistan, which is experiencing more than 400 climate-induced natural hazards annually. In 2022, ADB committed $30 million to help modernize weather and early warning systems—and pilot climate and disaster risk management initiatives—in Tajikistan.
ADB is helping accelerate the clean energy transition in Azerbaijan through the bank’s first major private sector renewable energy investment in the country. A $21.4 million nonsovereign loan signed with Masdar Azerbaijan Energy Limited Liability Company in 2022 will provide financing for a solar power plant capable of powering 30,406 homes each year.
In 2022, ADB’s investments focused on delivering better water and wastewater services and improving air and water quality.
In Tajikistan, ADB committed $38 million grant financing for an ongoing project working to improve quality of life and health outcomes in the capital Dushanbe. The project is rehabilitating and expanding climate-resilient water and sanitation infrastructure , and improving sewerage services.
In Uzbekistan, ADB helped establish a public–private partnership (PPP) that will improve water and air quality in Namangan, the country’s third-largest city. The $96 million project will improve water quality in the Syr Darya River and reduce greenhouse gas emissions. It is expected to provide a template for future wastewater PPPs for Uzbekistan and in other DMCs.
ADB has made significant investments across Central and West Asia to ensure food availability, shore up rural livelihoods and productivity, and foster agricultural market knowledge sharing.
The bank provided $50 million to the Kyrgyz Republic to underpin food security, stabilize prices of basic foodstuffs, and protect the livelihoods of vulnerable rural groups. At least 7,000 farmers and agribusiness enterprises will receive loans to assist in increasing food production.
In Tajikistan, ADB committed $50 million to help small-scale farmers increase food production and productivity through water- and energy-saving technologies. The financing is assisting the Government of Tajikistan to ensure supply of agricultural and food products for the country’s 9.7 million people.
To drive cross-border trade in rural produce, ADB provided technical assistance for strengthening international food safety standards in the region’s agricultural value chains. An associated report detailed the status of food safety systems in the region and provided recommendations for reforms, investment planning, and capacity development.
In 2022, ADB supported Central and West Asian DMCs through reforms to public financial management, new approaches to fiscal sustainability, and further capital market development.
In Turkmenistan, ADB delivered a training program to strengthen the capacity of government officials for financial management, and in applying environmental and social safeguards within projects.
In Armenia and Georgia, ADB provided commitments to increase fiscal resilience by building on earlier support.
In Armenia, a $100 million program will further strengthen fiscal management, improve money and securities market infrastructure, and promote capital markets. Meanwhile, in Georgia, a $104.1 million program is strengthening institutional capacity to manage fiscal risks associated with state-owned enterprises, PPPs, and the impacts of natural hazards.
In the Kyrgyz Republic, ADB committed $50 million for a program to accelerate economic diversification. Reforms under the program will promote trade competitiveness, develop the nonmineral sector, support small and medium-sized enterprises, and facilitate infrastructure PPPs.
In Pakistan, ADB signed a $300 million loan to further develop capital markets, promote private investment, and help mobilize domestic resources. The loan supports policy actions to strengthen market stability and attract investor capital.
ADB supported initiatives to improve regional health systems and enhance transit and trade corridors in Central and West Asia in 2022.
ADB published the CAREC Health Strategy 2030 to guide cooperation on health security in the region. The strategy is built around improving leadership and workforce capacities; enhancing surveillance and laboratory infrastructure; ensuring emergency demand is met; and bolstering services.
Given its crossroads location, the Kyrgyz Republic is critical to regional health security. For this reason, ADB committed $30 million in 2022 to strengthen its health infrastructure and resilience to infectious diseases through a network of public health and clinical diagnostic laboratories.
ADB also provided substantial financing to upgrade roads vital to cross-border transport and regional connectivity.
In Uzbekistan, a $273.9 million loan will reconstruct and upgrade roads forming part of CAREC Corridor 2, which connects Afghanistan, Kazakhstan, the Russian Federation, Tajikistan, and Turkmenistan. In Tajikistan, additional grant financing of $43.2 million will rehabilitate road sections linking to Asian Highway 66, a vital connection between Asian and European countries.
To help reduce persistently high road fatality and injury rates, ADB produced a report on improving road designs and upgrades, which it presented at regional forums and workshops.
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