The Asian Development Bank (ADB) has pledged $625 million in investment projects in Turkmenistan, with one project completed and another ongoing. Additionally, the Bank is providing $11 million in technical assistance to strengthen institutions and capacity building, as announced by ADB’s Country Director for Turkmenistan, Artur Andrysiak, during his online presentation at TIF2024 in Ashgabat.
Focus on Transport: Key Projects
The completed project, the North-South Railway Project ($125 million), is a significant milestone. Currently underway is the National Power Grid Strengthening Project ($500 million).
Furthermore, ADB is developing projects in finance, healthcare, transport, and energy sectors.
In August 2024, ADB has adopted new Country Partnership Strategy for Turkmenistan for 2024-2028. The new CPS’s overall objective is to support Turkmenistan in its efforts to become a more sustainable, climate-resilient, and competitive economy.
The strong focus of CPS for 2024-2028 will be sustainable and integrated transport networks along key trade corridors with the objective to boost the efficiency, reliability, safety, and integration of domestic and international supply chains.
Railway Modernization: A Strategic Initiative
The main area of engagement will be railways.
The ADB plans to build upon its previous involvement in the North-South Railway Project and support the modernization and electrification of the railway network along the Turkmenabat-Mary-Dushak-Ashgabat-Turkmenbashi corridor.
Beyond railways, ADB’s engagement will extend to the maritime industry, roads, and regional cooperation. By improving regional connectivity through interconnected railway networks and reducing trade barriers, ADB seeks to facilitate Turkmenistan’s active participation in the Central Asia Regional Economic Cooperation (CAREC) Program.
TransTurkmenistan Railway Modernization Project
The ADB is closely collaborates with Turkmenistan Railways Agency in preparation of TransTurkmenistan Railway Modernization Project.
This project is crucial for several reasons:
- The east–west corridor linking the port city of Turkmenbashi on the Caspian Sea, the capital city of Ashgabat, the major junction at Mary, and Turkmenabat near the border with Uzbekistan, as part of the CAREC Corridors 2, 3, and 6.
- Important not only for Central Asia, but also for trans-Eurasian transit between China and Europe, Mediterranean, Middle East.
The existing railway line faces challenges such as long travel times, high operating costs, and outdated infrastructure and rolling stock. The ADB’s new projects aim to address these issues by supporting the modernization of the 1,147-km railway line between Turkmenabat, Mary, Ashgabat, and Turkmenbashi in phases.
Under the Phase 1, to be committed in 2025, the focusing will be on modernizing the 171-km section between Ashgabat and Dushak (with double tracking provided as necessary to meet the demand), financing the construction of a concrete sleeper plant, and assisting in scaling up the operational and institutional capacity of Turkmenistan Railways Agency. The very important aspect of Phase 1 and overall project is to bring new and modern technology for the railway sector.
And, Phase 2, to be committed in 2026/27, will be aimed at modernizing the Dushak–Mary section and electrification of the Ashgabat–Mary section. This would be the first electrification of trains and will contribute to the decarbonization and reduction of GHG emissions.
From ADB’s side and Turkmenistan Government side, this project is very strategic.
ADB Project Pipeline, 2024-2027 also include projects related to building capacity of SME exporters, improving nursing quality and capacity project, national power grid strengthening project (additional financing), professional education for tourism and services project, support for urban development, renewable energy and energy efficiency.