ASTANA – The European Bank for Reconstruction and Development (EBRD) has deepened its cooperation with Kazakhstan and its Central Asian neighbors through new investment initiatives aimed at enhancing regional energy independence, green transition, and trade connectivity. In an interview with The Astana Times, EBRD Vice President Matteo Patrone discussed the bank’s growing role in advancing projects that link sustainable energy development with stronger regional integration.

EBRD Vice President Matteo Patrone. Photo credit: The Astana Times/ Fatima Kemelova

The bank recently signed a memorandum of cooperation with Kazakhstan to expand investment in renewable energy, hydropower, and power grid modernization, including the ambitious Kambarata-1 hydropower project and port infrastructure upgrades in Aktau in western Kazakhstan.

Kambarata-1: a catalyst for energy and water security

Patrone described Kambarata-1, one of Central Asia’s largest renewable energy projects, as a transformative initiative for the region. 

“It represents significant advantages for energy security, the creation of fertile land, and positive impacts on local supply chains. It is also crucial for regional cooperation among Central Asian countries,” he said.

Located on the Naryn River in the Kyrgyz Republic, Kambarata-1 will feature four turbines with a combined capacity of 1,860 megawatts and is expected to generate around 5.6 billion kilowatt-hours of electricity annually. Beyond energy generation, the project will help regulate water flows among Kazakhstan, the Kyrgyz Republic, and Uzbekistan, addressing one of the region’s most pressing issues: equitable water management.

EBRD Vice President Matteo Patrone with Aiman Nakispekova, The Astana Times journalist during the interview.  Photo credit: The Astana Times/ Fatima Kemelova

“In Brussels, at the Global Gateway forum, we signed three memoranda of understanding with the ministers of energy of Kazakhstan, the Kyrgyz Republic, and Uzbekistan. The agreements will pave the way for accelerated project preparation and the launch of its implementation phase,” Patrone said.

The bank has expressed interest in exploring financing of up to $500 million for each of the three countries, with the overall project expected to reach six billion euros (US$6.5 billion).

“We are confident that Kambarata-1 will be an example of how regional cooperation can enhance the region’s energy and water security,” said Patrone.

Patrone noted several advantages for Kazakhstan, which owns one-third of the trilateral joint venture.

“Together with the other two countries, Kazakhstan will be responsible for better coordination and regulation of water and energy supply. The project will give a serious boost to the development of renewable energy and agriculture. Both are of strategic importance for the growing economy and population of the country,” he said.

He added that local companies could play a significant role in construction and related services, generating local value and job opportunities.

Global Gateway and EU partnership

The Kambarata-1 initiative was one of the flagship projects highlighted at the Global Gateway Forum in Brussels, where the European Union outlined its strategy for boosting connectivity and sustainable growth beyond Europe.

“The Global Gateway is the EU’s initiative aimed at boosting smart, clean, and secure connections in digital, energy, and transport sectors. It brings together the European Union, EU member states, and European development finance institutions to mobilize up to 400 billion euros [US$4.6 billion] in public and private investments from 2021 to 2027,” said Patrone.

He noted that European Commission President Ursula von der Leyen officially launched the Global Gateway Investment Hub, a one-stop platform connecting project proposals from partner governments, investors, and financial institutions.

“President von der Leyen described the Global Gateway as a values-based alternative to infrastructural competition, emphasizing that the EU wants to build links rather than dependencies with partner countries. She stressed strategic sectors such as energy, transport, digital connectivity, health, education, and also singled out critical raw materials and resilience as priorities in Europe’s external partnerships,” said Patrone. 

At the forum, the European Commission and World Bank Group announced a strengthened partnership featuring 18 new projects across Africa, Latin America, and Asia, alongside a 618 million euros (US$716 million) Team Europe package to scale up renewable energy in Africa.

Upgrading the Aktau port to power the Trans-Caspian Corridor

In addition to its energy initiatives, the EBRD and the EU have pledged 45 million euros (US$52 million) to modernize cargo-handling facilities at Kazakhstan’s port of Aktau, a key hub on the Caspian Sea and a vital part of the Trans-Caspian International Transport Route (TITR).

“The port of Aktau was identified as a key element of the Trans-Caspian Corridor by an EBRD-led, EU-funded study on sustainable transport connections between Europe and Central Asia,” Patrone said. The study recommended digitalizing transport documents, enhancing the public-private partnership environment, facilitating trade, fostering market liberalization, and improving tariff-setting mechanisms to lower costs and boost efficiency,” said Patrone.

Cargo traffic through the TITR has increased sharply, from around 20,000 twenty-foot equivalent units (TEUs) in 2022 to 58,000 TEUs in 2024.

“The funds will finance the extension of two berths and the acquisition of weather-resilient ship-to-shore cranes to expand the handling capacity for container cargo. These enhancements will allow the port to double its container handling capacity and to operate two fully dedicated container berths, each with separate trans-shipment lines. Handling time per container is expected to decrease from the current average of four minutes to just two and a half,” Patrone said.

Future outlook

He emphasized that both projects – the Kambarata-1 hydropower plant and the Aktau port expansion – will enhance connectivity, energy access, and local economic opportunities.

“Kambarata-1 will allow the three countries to reduce imports of electricity and fossil fuels commonly used in Central Asia to generate electricity. This will help to improve their energy security and may eventually bring down the cost of local goods and services,” said Patrone.

“The improved and expanded cargo handling capacities in Aktau will secure better regional and inter-regional connectivity. More international and regional freight companies will choose the Trans-Caspian route, which will stimulate further growth of transportation and logistics infrastructure. In its turn, this will help to create more jobs and improve tax revenues,” he said. 

Looking ahead to the Kazakhstan Global Investment Roundtable in Astana on Oct. 31, Patrone said the EBRD’s agenda includes supporting the government’s infrastructure and investment plans across energy, logistics, healthcare, and irrigation, as well as providing financing and technical assistance to small and medium-sized enterprises.

“The energy transition requires not only public-sector investment in projects like Kambarata-1 but also private-sector cooperation. Around 25% of Kazakhstan’s new renewable energy capacity has already been financed by the EBRD, and we intend to continue playing a key role,” said Patrone.

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