Turkmenistan Railways and the European Investment Bank Outline Joint Projects
A meeting in Ashgabat between the leadership of the Ministry of Railway Transport of Turkmenistan and a delegation from the European Investment Bank (EIB) marked the transition from an exchange of intentions to a detailed discussion of the technological and financial modernization of the industry.
In the administrative building of the Ministry of Railway Transport, Minister Mammet Akmammedov and Edvardas Bumsteinas, Head of the EIB Department for Asia, Central Asia, and the Pacific, discussed the relevance of the upcoming Framework Agreement between Turkmenistan and the EIB in the context of the country's plans to expand its transport and transit potential.
The document, scheduled to be signed on March 26 at the large-scale Turkmenistan-EU business forum in Ashgabat, will provide access to the bank's financial instruments, which investment in the region last year exceeded €100 billion.
In this context, the Turkmen side has outlined clear priorities: digitalization of dispatch systems, automation of cargo tracking, and bringing infrastructure into line with European standards of safety and transparency. The focus is on the Ashgabat-Dashoguz railway modernization project, for which Ashgabat is considering attracting investment and grant funds to prepare a high-quality feasibility study.
Particular emphasis was placed on the need to expand the railcar fleet and procure high-quality components for diesel locomotive repairs, which is crucial given growing freight traffic.
Edvardas Bumsteinas and Olivier Cuny, Head of the Bank's Regional Office, emphasized the EIB's readiness to act not only as a financial donor but also as a guarantor of project effectiveness. They cited the successful experience of modernizing railways in neighboring Uzbekistan, where the Bank's participation and the use of European technology made it possible to significantly reduce service costs.
EIB Senior Legal Advisor Annie-France Catoire and EU Ambassador to Turkmenistan Beata Peksa also participated in the discussion, confirming the high political status of the negotiations.
The parties agreed that the upcoming March forum will mark the starting point for a new phase of railway construction, in which preferential lending terms and European innovations will form the basis for the long-term sustainability of Turkmenistan's transport system.
