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EBRD President visits Central Asia
Arrives in Uzbekistan to reiterate support, emphasise need for reforms across region
The President of the European Bank for Reconstruction and Development, Jean Lemierre, begins a week-long trip to Uzbekistan, Kyrgyzstan and Tajikistan on Monday to underline the importance of market reforms and the need to create an attractive investment climate – both crucial for the development of the region, especially in the light of recent events.
"The Central Asian countries have been catapulted into the global spotlight, and the region must take this opportunity to open its doors by making significant reforms," said Mr Lemierre. "Market reforms and democracy go hand in hand, and this is crucial for growth. We are committed to the region, but we alone cannot make the difference – we must work as partners, and as partners we must work to attract foreign investment."
Mr Lemierre will meet with senior government officials, including heads of state, representatives from international organisations and business leaders in all three countries. He will pledge the EBRD's support for strengthening the ties between Central Asia and the world economy, and among the countries of the region itself.
In Uzbekistan, his first stop, he will discuss the country's ongoing reforms, and advocate further progress in opening up foreign trade and liberalising the exchange rate market. The EBRD has to date invested around € 570 million in 15 projects in Uzbekistan. Mr Lemierre will reaffirm the EBRD's commitment when he signs nearly € 100 million of loans in the country to upgrade freight locomotives and to provide better heating services to its people. Mr Lemierre will stress Uzbekistan's importance to regional trade.
In Kyrgyzstan, where the EBRD has invested € 175 million in 16 projects, Mr Lemierre will focus on reforms needed to strengthen the private sector, and the need to complete the privatisation of the telecommunications and power sector. Mr Lemierre will also confirm the Bank's commitment to raise donor funds to support the development of projects in Kyrgyzstan.
In Tajikistan, the EBRD has more than doubled its investments this year. Last month, the Bank signed two projects to develop critical infrastructure in the civil aviation and telecommunications industries. Mr Lemierre will outline the Bank's continuing commitment to the country, particularly in developing small and medium-sized enterprises (SMEs), which are essential for economic development. At the same time, he will emphasise the need to further develop the private sector, and the need to address corporate governance and transparency issues to make the investment climate more attractive to foreign businesses. The EBRD has to date invested around € 37 million in seven projects in Tajikistan.
The economies of Central Asia are experiencing growth, and estimates indicate this is expected to continue through 2001 and into 2002. Mr Lemierre will emphasise to the countries' authorities the need to build on this by making the region open to foreign investment. The EBRD is looking to accelerate its activities in Central Asia, particularly in areas supporting institution building, developing the countries' SMEs, modernising infrastructure and, of key importance, promoting trade financing. Outside the oil sector, the EBRD is the largest investor in the private sector in Central Asia, and the international financial institution with the largest number of projects, with investments totalling around € 1.6 billion.
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