AIIB, Uzbekistan Advance Strategic Partnership with Concrete Results and Expanded Collaboration – Asian Infrastructure Investment Bank (AIIB)

 

Report on the Strategic Partnership Between Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) for Sustainable Development

Partnership Overview and Commitment to Sustainable Development Goals (SDGs)

High-level discussions between the Government of the Republic of Uzbekistan and the Asian Infrastructure Investment Bank (AIIB) have reinforced a strategic partnership aimed at achieving national development priorities in alignment with the Sustainable Development Goals (SDGs). The collaboration, framed by the 2024 Multi-Year Rolling Investment Program (MYRP), focuses on financing “Infrastructure for Tomorrow” with sustainability as a core principle. The current AIIB portfolio in Uzbekistan totals USD 3.7 billion, making it the Bank’s seventh-largest client. This investment program is strategically directed towards fostering sustainable economic growth and regional development, directly contributing to SDG 17 (Partnerships for the Goals).

Key Project Milestones and Direct Contributions to Specific SDGs

Recent milestones have operationalized the MYRP, demonstrating tangible progress towards specific SDGs through targeted infrastructure investments. These initiatives include:

1. Water Sector Program (USD 1 Billion): This multi-phased program directly addresses SDG 6 (Clean Water and Sanitation) by investing in the sustainable management and availability of water resources for communities throughout Uzbekistan.
2. Power-Transmission Modernization (USD 300 Million): This initiative supports SDG 7 (Affordable and Clean Energy) by enhancing the efficiency and reliability of the national power grid, which is crucial for integrating renewable energy sources and ensuring stable energy access.
3. Local Roads Network Reconstruction (USD 173.5 Million): This project advances SDG 9 (Industry, Innovation, and Infrastructure) and SDG 11 (Sustainable Cities and Communities) by building resilient transport infrastructure. The reconstruction of local roads in Karakalpakstan and Khorezm improves regional connectivity, enhances access to essential services, and promotes inclusive economic development.

Broader Portfolio Alignment and Future Strategic Direction

The comprehensive USD 3.7 billion portfolio extends across multiple sectors critical for sustainable development. The adaptive implementation framework of the MYRP ensures that all future initiatives will maintain strong alignment with Uzbekistan’s national development agenda and the SDGs through regular joint reviews.

• Transportation Networks: Investments contribute to SDG 9 and SDG 11 by creating resilient and accessible infrastructure.
• Renewable Energy Projects: These projects are central to achieving SDG 7 and SDG 13 (Climate Action) by expanding the share of clean energy in the national mix.
• Urban Development Initiatives: These efforts directly support SDG 11 by making cities and human settlements more inclusive, safe, resilient, and sustainable.
• Climate-Focused Financing: Policy-based financing is targeted at advancing SDG 13 by supporting national climate action plans and policies.

Both parties have agreed to expand their collaboration into new strategic areas, reinforcing their joint commitment to using infrastructure investment as a primary driver for achieving the Sustainable Development Goals.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 6: Clean Water and Sanitation

The article explicitly mentions a “USD1-billion multi-phased program in the water sector,” directly connecting the partnership’s activities to ensuring the availability and sustainable management of water.

SDG 7: Affordable and Clean Energy

The partnership includes a “USD300-million power-transmission modernization initiative” and investments in “renewable energy projects.” These initiatives are central to improving energy infrastructure and promoting clean energy sources.

SDG 9: Industry, Innovation and Infrastructure

The core focus of the AIIB and Uzbekistan partnership is on infrastructure. This is highlighted by projects like the “Karakalpakstan and Khorezm Local Roads Network Reconstruction Project” and the broader portfolio spanning “transportation networks,” which are fundamental to building resilient infrastructure and fostering sustainable industrialization.

SDG 11: Sustainable Cities and Communities

The article states that the investment portfolio includes “urban-development initiatives.” This directly relates to making cities and human settlements inclusive, safe, resilient, and sustainable.

SDG 17: Partnerships for the Goals

The entire article describes a strategic partnership between a national government (Uzbekistan) and a multilateral development bank (AIIB). This collaboration, including the “Multi-Year Rolling Investment Program (MYRP)” and a total portfolio of “USD3.7 billion,” exemplifies the global partnership needed to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 6: Clean Water and Sanitation

1. Target 6.1: Achieve universal and equitable access to safe and affordable drinking water for all. The large-scale investment in the water sector is a foundational step towards improving water infrastructure to meet this goal.
2. Target 6.a: Expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programmes. The AIIB’s USD1-billion program is a direct example of this cooperation.

SDG 7: Affordable and Clean Energy

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The mention of “renewable energy projects” in the portfolio directly supports this target.
2. Target 7.b: Expand infrastructure and upgrade technology for supplying modern and sustainable energy services. The “power-transmission modernization initiative” is a clear action towards achieving this target.

SDG 9: Industry, Innovation and Infrastructure

1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. The “Local Roads Network Reconstruction Project” and investments in “transportation networks” are prime examples of efforts to meet this target.

SDG 11: Sustainable Cities and Communities

1. Target 11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all. The road network reconstruction and urban development initiatives contribute to improving transportation within and between communities.

SDG 17: Partnerships for the Goals

1. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. The AIIB’s USD3.7 billion portfolio in Uzbekistan is a direct mobilization of financial resources for infrastructure development.
2. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The high-level talks and the “Multi-Year Rolling Investment Program (MYRP)” between the Government of Uzbekistan and AIIB are a model of an effective public-public partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention official UN SDG indicators, but it provides several quantitative and qualitative indicators that can be used to measure the progress and commitment of the described initiatives.

Implied Indicators:

• Financial Commitment for Water Sector (Relates to SDG 6): The “USD1-billion multi-phased program in the water sector” serves as a financial indicator of the scale of investment aimed at improving water infrastructure.
• Financial Commitment for Energy Sector (Relates to SDG 7): The “USD300-million power-transmission modernization initiative” is a specific financial indicator for progress in upgrading energy infrastructure.
• Financial Commitment for Transport Infrastructure (Relates to SDG 9): The “USD173.5-million multi-phased program” for the “Karakalpakstan and Khorezm Local Roads Network Reconstruction Project,” with a first tranche of “USD71.1 million,” provides a concrete, measurable financial indicator for infrastructure development.
• Total Portfolio Size (Relates to SDG 17): The total AIIB portfolio in Uzbekistan, valued at “USD3.7 billion,” acts as a high-level indicator of the financial scale of the partnership for sustainable development.
• Strategic Framework Agreement (Relates to SDG 17): The establishment and operationalization of the “Multi-Year Rolling Investment Program (MYRP)” is a qualitative indicator of a long-term, structured partnership and commitment to national development goals.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

SDGs	Targets	Indicators (as implied in the article)
SDG 6: Clean Water and Sanitation	6.a: Expand international cooperation and capacity-building support.	Financial commitment of a USD1-billion multi-phased program in the water sector.
SDG 7: Affordable and Clean Energy	7.b: Expand infrastructure and upgrade technology for supplying modern and sustainable energy services.	Financial commitment of a USD300-million power-transmission modernization initiative.
SDG 9: Industry, Innovation and Infrastructure	9.1: Develop quality, reliable, sustainable and resilient infrastructure.	Financial commitment of a USD173.5-million program for the Local Roads Network Reconstruction Project.
SDG 11: Sustainable Cities and Communities	11.2: Provide access to safe, affordable, accessible and sustainable transport systems for all.	Inclusion of “urban-development initiatives” and road reconstruction projects in the investment portfolio.
SDG 17: Partnerships for the Goals	17.3: Mobilize additional financial resources for developing countries.	Total AIIB investment portfolio in Uzbekistan valued at USD3.7 billion.

Source: aiib.org