The head of the State Bank for Foreign Economic Affairs of Turkmenistan spoke about the financing of transport projects
The program for the development of transport diplomacy of Turkmenistan for 2022-2025 provides for the preparation of the Road Transport Code, the introduction of such digital solutions for multimodal transportation as the Global Transit Document into the industry, the modernization and expansion of transport infrastructure that requires adequate financial resources.
Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan Rahimberdy Dzhepbarov spoke about financing projects in the country's transport sector, speaking on Thursday at an international forum on transport and transit corridors held in Ashgabat.
Thus, due to the mobilization of state funds, the following were carried out: the construction of six international airports, a seaport and a shipyard in Turkmenbashi, roads, a railway bridge across the Amu Darya; purchase of vehicles and aircraft, oil tankers, etc. At the moment, such projects as the construction of an automobile bridge across the Garabogaz Bay, the purchase of Airbus cargo airliners are underway.
Separately, the head of the State Bank for Foreign Economic Affairs of Turkmenistan noted the ongoing construction of the Turkmenabat-Ashgabat-Turkmenbashi highway, the first part of which - Turkmenabat-Ashgabat - has already been completed. This is the first project implemented in a public-private partnership, the law on which was adopted in June 2021.
Although at the stage of formation of the PPP partnership, the state took over the financing of the project, its implementation, further operation and operational management of such a large facility for the first time were entrusted to a consortium of national private companies. As PPP forms and mechanisms improve, the state will rely more on financing from the private sector, Jepbarov added.
He also named a number of projects implemented with the participation of international financial institutions and agencies.
For example, with the financial support of the Asian Development Bank in the amount of $125 million and the Islamic Development Bank - $371 million, the Kazakhstan-Turkmenistan-Iran railway line with a length of 724 km was built.
IDB financed the purchase of three oil tankers-$42 million. The Japan International Cooperation Agency (JICA) provided a preferential loan equivalent to $40 million for the modernization of the locomotive depot in Ashgabat. The Export-Import Bank of China supported purchase of diesel locomotives and passenger cars in an amount equivalent to $95 million.
Now, at the expense of the State Bank for Foreign Economic Affairs of Turkmenistan in the amount of $80 million and with the financial support of the Abu Dhabi Development Fund - $75 million - the construction of an international airport in the town of Jebel is underway.
In December 2021, a loan agreement was signed with ING Bank, Tokyo, Japan, for $20 million in order to finance the supply of Toyota cars to Turkmenistan for the development of public urban transport. This cooperation is expected to continue, Jepbarov said.
In January 2022, agreements were signed with the IDB for $90 million and the OPEC Fund for International Development for $40 million to finance the construction of two Ro-Ro ferries and one dry cargo ship at the Balkan shipyard.
In January 2022, agreements were signed with the IDB for $90 million and the OPEC Fund for International Development for $40 million to finance the construction of two Ro-Ro ferries and one dry cargo ship at the “Balkan” shipyard.
Work is also underway to introduce the best practices of the UAE in port management and their digitalization, Jepbarov continued. In particular, the Agency for Transport and Communications under the Cabinet of Ministers is discussing with AD Ports Group (Abu Dhabi) the creation of a joint transport and logistics company with the participation of the private sector of Turkmenistan.
Speaking about current and prospective projects, Rakhimberdy Dzhepbarov noted the project of the Uzbekistan-Turkmenistan-Iran-Oman transit-transport corridor, in which other countries of the region are showing interest. The plans also include the modernization and electrification of the Turkmenabat-Ashgabat-Turkmenbashi railway, the preparation of a feasibility study for which is carried out with the direct participation of the ADB, as well as a number of others.
The Chairman of the State Bank for Economic Affairs of Turkmenistan called on private investors, international development financial institutions and other financial institutions to take an active part in financing transport projects in Turkmenistan, which, due to its geographical location, is the center of the revived Ancient Silk Road.
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