According to Podguzov, the projected population growth should drive economic development; however, it will also lead to significant challenges in infrastructure. “To ensure comfortable growth, breakthroughs are needed in areas such as energy efficiency, transport mobility, and water resource management,” he added.
The chairman of the EDB also noted that Central Asia is among the most vulnerable regions in the world in the context of climate change. “According to forecasts, by 2028, water shortages may increase to between 5 and 12 cubic kilometers per year,” he indicated. Outdated infrastructure, he said, leads to significant losses of water resources. The bank is actively involved in financing projects aimed at modernizing irrigation systems, implementing water-saving technologies, and digitizing water resource accounting.
Podguzov also discussed the geographical remoteness of the region, which negatively affects the economy. “Central Asia is more than 3,000 kilometers away from ocean ports, which increases trade costs by 20-40%, resulting in losses of up to 1.5% of economic growth per year,” he explained. To address this issue, it is necessary to improve transport connectivity. “Therefore, the EDB proposed a concept for creating an Eurasian transport framework that will reduce logistics costs and accelerate trade,” he added.
Speaking about transport routes, Podguzov noted: “Currently, they are primarily oriented towards east-west directions; however, north-south routes and the Trans-Afghan corridor are also of great importance, as they will open markets in South Asia and the Persian Gulf.”
He emphasized that Central Asia is one of the fastest-growing regions in the world, and the EDB expects that by 2026, the combined GDP of the five countries in the region will reach 600 billion USD. “But to achieve significant results, it is essential to first address three key challenges: demographics, transport, and water resource provision, which are closely interconnected,” Podguzov summarized.
According to UNICEF data, by 2025, the population of the region will exceed 84 million people.
This year, the Eurasian Development Bank, established in 2006 at the initiative of Russia and Kazakhstan, celebrated its 20th anniversary. The bank's headquarters is located in Almaty.
The EDB is an international financial organization engaged in investments in Eurasia with the aim of strengthening economic ties and comprehensive development of member countries, including Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Uzbekistan joined the bank in 2025.
