BAKU, Azerbaijan, October 2. The European Union
is working with international financial institutions and
development partners to develop an investment pipeline for
Uzbekistan’s railway, road and logistics infrastructure along the
Trans-Caspian Transport Corridor (TCTC), EU Ambassador to
Uzbekistan Toivo Klaar told Trend in an exclusive interview.
According to Klaar, railway projects are expected to receive
particular attention given the sector’s role in establishing a
high-capacity, reliable, energy-efficient and climate-friendly
transport link between Central Asia and Europe.
“In concrete terms, discussions will focus on railway
rehabilitation and modernisation, including upgrades to core rail
infrastructure, improvements at border-crossing points, and related
logistics connectivity,” Klaar said.
Road and logistics investments aimed at strengthening multimodal
connections and improving freight movement along the corridor will
also be addressed, he said.
The ambassador noted that it is too early to estimate the
overall investment volume associated with the priority project
pipeline.
“It is too early to give any indication of investment amounts –
based on today’s discussions, we will work with the IFIs to
determine the next steps with a view towards putting together a
financing package,” Klaar said.
Under the EU’s Global Gateway Strategy, the development of a
reliable and competitive TCTC is a key priority. The EU is working
with Team Europe partners, international financial institutions and
development organizations through the TCTC Coordination Platform to
identify and advance priority investments.
Klaar said the EU has three main tools for supporting priority
investments: technical assistance, blending and guarantees.
“We can mobilise technical assistance to undertake preparatory
studies such as feasibility studies and environmental and social
impact assessments, and it can also be used for institutional
support to create the right legal framework for, for example,
public-private partnership projects,” he said.
For projects financed through loans from the European Investment
Bank, the EU can provide guarantees to reduce interest rates, while
grants can support blended finance operations with the European
Bank for Reconstruction and Development, according to Klaar.
The EU also provides grants for trade facilitation, customs
efficiency and harmonization of transport regulations, which Klaar
said helps create an enabling environment for private-sector
investment.
“Recently we also created the Investment Hub, through which we
can support European private sector projects through grants, loans,
equity, guarantees and various de-risking instruments,” Klaar
said.
The comments were made in connection with the second National Conference on the Trans-Caspian
Transport Corridor that will be held on Sept 30, which brings
together government representatives, international financial
institutions, development partners and private-sector participants
to discuss investment and reform priorities for the corridor.
The conference is part of the EU-supported TCTC Coordination
Platform under the Global Gateway framework, which aims to improve
connectivity, mobilize investment and strengthen the efficiency and
competitiveness of the corridor.
