Asian investment portfolio Бanka Иinfrastructure Иinvestments (AIIB\AIIB) in Central Asia: comparative analysis
Introduction
In a relatively short period, the Asian Infrastructure Investment Bank (AIIB\AIIB) has become one of the key international financial institutions financing the development of infrastructure, sustainable energy, transport corridors and climate adaptation projects. For the countries of Central Asia, the activities of the AIIB are of strategic importance, since the region is characterized by a high need to modernize transport, energy and utility infrastructure, as well as attract long-term investment capital.
An analysis of AIIB’s portfolio shows that the bank’s investment policy is aimed not only at the construction of infrastructure facilities, but also at supporting structural reforms, developing the private sector and increasing the resilience of economies to climate and financial risks. At the same time, the scale of financing varies significantly between the states of the region, reflecting the level of project preparation, investment climate and government priorities.
The total approved funding of the AIIB in the four Central Asian countries is approximately: ≈ US$4.47 billion.
This review is based on information about AIIB’s ongoing projects in Kyrgyzstan, Kazakhstan, Uzbekistan and Tajikistan and allows us to assess the place of the Kyrgyz Republic in the bank’s regional investment strategy.
Comparative analysis of the investment portfolio AIIB
Today, the most diversified and largest portfolio of the AIIB is formed in Uzbekistan[1]. The Bank finances projects for the construction and modernization of highways, the development of medium-sized cities, the modernization of rural infrastructure, water supply, the implementation of climate programs and the transition to a green economy. A significant part of the investment is also aimed at the development of electricity storage systems (Battery Energy Storage Systems – BESS) and the construction of renewable energy facilities.
According to the AIIB project registry, sovereign financing predominates in Uzbekistan – that is, loans where the borrower or guaranteeing party is usually the state (through the government/state structures). Non-sovereign funding is still significantly less.
Sovereign financing AIIB in Uzbekistan
| Project | Type | Sum |
| Uzbekistan: Bukhara Region Water Supply and Sewerage Phase II | Sovereign | 248.4 million USD |
| Uzbekistan: Healthcare Emergency Response Project | Sovereign | 100 million USD |
| Uzbekistan: Accelerating Uzbekistan Climate Transition for Green, Inclusive and Resilient Economic Growth (Subprogram 1) | Sovereign | 250 million USD |
| Uzbekistan: Bukhara Road Network Improvement Project (Phase 1) | Sovereign | 165.5 million USD |
| Uzbekistan: Green and Resilient Market Economy Program | Sovereign | 500 million USD |
| Uzbekistan: First Inclusive and Resilient Market Economy Development Policy Operation | Sovereign | 670 million USD |
| Uzbekistan: Rural Infrastructure Development Project | Sovereign | 82 million USD |
Total sovereign financing: ≈ USD 2,015.9 million
Non-sovereign financing of the AIIB in Uzbekistan
| Project | Type | Sum |
| Uzbekistan: CEEC Uzbekistan BESS Green Loan | Nonsovereign | 150 million USD |
| Uzbekistan: Nukus II 200MW Wind and BESS Project | Nonsovereign | 75 million USD |
Total non-sovereign financing: ≈ 225 million USD
Total AIIB financing in Uzbekistan
Total: USD 2,015.9 million + USD 225 million ≈ USD 2,240.9 million
Share in percent
Sovereign funding: ≈ 89.96%
Non-sovereign financing: ≈ 10.04%
| Type of financing | Sum | Share |
| Sovereign | ≈ 2.016 billion USD | ≈ 90% |
| Non-sovereign | ≈ 225 million USD | ≈ 10% |
| Total | ≈ 2.241 billion USD | 100% |
This concentration of resources indicates a high degree of confidence on the part of the AIIB and the country’s ability to prepare large infrastructure projects that meet international requirements.
Kazakhstan demonstrates a predominantly sovereign model of interaction with the Asian Infrastructure Investment Bank. The bulk of AIIB funding is channeled through government mechanisms and development programs, including transport infrastructure, economic reforms and the development of strategic industries.
Based on an analysis of approved AIIB projects, about 94% of Kazakhstan’s financing falls into the category of sovereign financing, while the share of non-sovereign financing is about 6%.
At the same time, Kazakhstan differs from a number of countries in the region in its higher level of attracting private capital to infrastructure projects. AIIB’s non-sovereign financing is predominantly represented by projects in the areas of sustainable energy, public-private partnerships and infrastructure, including projects with the participation of private operators.
Thus, the Kazakhstan model is characterized not by the dominance of non-sovereign financing, but by a combination of large-scale public financing with separate mechanisms for attracting private investment.
Sovereign financing AIIB in Kazakhstan (Sovereign)
| AIIB project | Type of financing | Sum |
| Kazakhstan: Fiscal Governance and Financial Sector Reforms Program | Sovereign | 350 million USD |
| Kazakhstan: Reconstruction of M-32 Highway Aktobe–Karabutak–Ulgaisyn Section Project | Sovereign | 450 million USD |
| Kazakhstan: Inclusive and Sustainable Economic Growth Development Policy Operation | Sovereign | 400 million USD |
| Kazakhstan: Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development) – Phase I | Sovereign | 564 million USD |
Total sovereign financing: ≈ 1,764 million USD
Non-sovereign financing AIIB in Kazakhstan (Nonsovereign)
| AIIB project | Type of financing | Sum |
| Kazakhstan: Kokshetau PPP Hospital Project | Nonsovereign | 113.9 million USD |
| Kazakhstan: Zhambyl 1GW Wind and 300MW BESS Project | Nonsovereign | (project proposed, amount not determined – not included in the calculation) |
| Kazakhstan: Almaty Railway Bypass Project | Nonsovereign | (proposed project, 50 million USD – not included in approved funding) |
Total non-sovereign financing: ≈ 113.9 million USD
Total amount of approved financing of the AIIB in Kazakhstan
| Type of financing | Sum |
| Sovereign | 1,764 million USD |
| Non-sovereign | 113.9 million USD |
| Total | USD 1,877.9 million |
Percentage share: Sovereign: ≈ 94.0%, Non-sovereign: ≈ 6.0%
| Type of AIIB financing | Share |
| Sovereign financing | ≈ 94% |
| Non-sovereign financing | ≈ 6% |
В Tajikistan AIIB’s portfolio is still smaller in scale, but is of strategic importance. The funding is aimed at modernizing the highway to the border with Uzbekistan and participating in the construction of the Rogun hydroelectric power station. The latter project is one of the largest energy projects in the region and is seen as an important element in strengthening the energy security of Central Asia.
The main AIIB projects in Tajikistan are in the public sector:
| AIIB project | Type of financing | Sum |
| Tajikistan: Obigarm–Nurobod Road Project | Sovereign | 100 million USD |
| Tajikistan: Nurek Hydropower Rehabilitation Project | Sovereign | 60 million USD |
| Tajikistan: Dushanbe–Uzbekistan Border Road Improvement Project | Sovereign | 27.5 million USD |
| Tajikistan: Rural Water Supply and Sanitation Project | Sovereign | 15 million USD |
| Tajikistan: Rogun Hydropower Development Project – Phase 1 – (Approved Financing) | Sovereign | 270 million USD |
Total sovereign financing: ≈ 357.5 million USD
Today in the AIIB portfolio for Tajikistan there are practically no significant approved non-sovereign projects.
Total non-sovereign financing: ≈ 0 USD
Kyrgyz Republic so far has the most compact investment portfolio of the AIIB. The approved projects are concentrated in four main areas:
- support for the private and financial sector during periods of economic instability;
- development of water supply and sanitation systems;
- financing the development of small and medium-sized businesses;
- preparation of the construction project for Kambarata HPP-1.
The total amount of approved funding for existing projects is approximately US$150 million, excluding the promising project Kambarata HPP-1, the amount of financing of which has not yet been determined.
This structure indicates that the AIIB views Kyrgyzstan primarily as a country in need of strengthening financial stability, modernizing public infrastructure and supporting small businesses. At the same time, the inclusion of Kambarata HPP-1 in the project portfolio can significantly change the scale of cooperation between Kyrgyzstan and the AIIB.
Sovereign financing
| AIIB project | Sector | Type of financing | Sum |
| Kyrgyzstan: Kyrgyz Emergency Support for Private and Financial Sector Project | Financial sector/economic recovery | Sovereign | 50 million USD |
| Kyrgyzstan: Water Supply and Sanitation Universal Access Project | Water supply and sanitation | Sovereign | 50 million USD |
| Kyrgyzstan: Developing a Sustainable Finance Market for Micro-, Small-, or Medium-Sized Enterprises (MSMEs) Project | Financial market / SME | Sovereign | 50 million USD |
Total sovereign financing: ≈ 150 million USD
Based on approved AIIB projects in the Kyrgyz Republic There is no non-sovereign funding.Total: ≈ 0 USD
In February 2026, the potential participation of the Asian Infrastructure Investment Bank (AIIB) in the implementation of strategic infrastructure projects of the Kyrgyz Republic, including the construction of the Kambar-Ata hydroelectric power station-1 and the China-Kyrgyzstan-Uzbekistan railway, were discussed during a meeting between the President of the Kyrgyz Republic Sadyr Japarov and the President of the AIIB Zou Jiayi. At the same time, at the time of analysis, the Kambar-Ata HPP-1 project was not included in the list of approved AIIB projects, and the discussion concerned the prospects for further cooperation and the possible participation of the Bank[2].
Kambar-Ata HPP-1 represents a potential future target for AIIB participation in the Kyrgyz Republic. Unlike the already approved AIIB projects in Kyrgyzstan, where financing is completely sovereign in nature, this project is at the stage of forming an international financial structure with the participation of several development partners. Potential participation of the AIIB requires an analysis of the environmental, social and financial aspects of the project in accordance with international standards
Comparative characteristics of the portfolio AIIB
| State | AIIB’s main areas of investment | Portfolio characteristics |
| Kyrgyzstan | Water and Sanitation Infrastructure, Financial Sector, Micro, Small and Medium Enterprise (SME) Support, Energy/Hydropower | Relatively limited and emerging portfolio, primarily focused on basic infrastructure, improving economic sustainability and developing financial mechanisms for SMEs. |
| Kazakhstan | Renewable energy, transport infrastructure, railway and logistics projects, private sector | Greater focus on non-sovereign financing and private participation, especially in the energy sector and infrastructure projects. |
| Uzbekistan | Urban infrastructure, water supply, climate resilience, energy, transport and urban development | One of the most diversified portfolios in Central Asia, including infrastructure projects, climate programs and the development of urban systems. |
| Tajikistan | Hydropower, energy security, infrastructure projects (including transport) | Concentration on strategic infrastructure facilities, primarily in the energy sector, including large hydropower projects. |
Unlike Kazakhstan and Uzbekistan, where the AIIB is gradually expanding the use of non-sovereign financing mechanisms, Kyrgyzstan and Tajikistan remain completely dependent on the sovereign model for raising resources. This reflects the limited role of private capital in financing large development projects and the high role of the state as the main intermediary in interaction with international financial institutions
Analytical conclusions
The analysis allows us to draw several important conclusions.
First, the AIIB’s investment strategy in Central Asia demonstrates a shift from traditional transport infrastructure financing to integrated support for climate resilience, renewable energy and sustainable urban development. This is in line with global trends in international development finance and the priorities of the Paris Climate Agreement.
Secondly, the distribution of investment between the countries of the region remains extremely uneven. The largest amount of funding comes from Uzbekistan, which is actively implementing large-scale reforms, ensuring high project readiness and pursuing a consistent investment policy. Kazakhstan, in turn, successfully uses mechanisms to attract private capital through non-sovereign operations of the AIIB.
Thirdly, Kyrgyzstan has not yet taken full advantage of the opportunities for cooperation with the AIIB. Despite the presence of projects in the water supply, financial sector and small business support, their scale is significantly inferior to regional leaders. This may be due to the limited number of prepared investment projects, institutional restrictions and insufficient activity in promoting large infrastructure initiatives.
Thus, an analysis of the AIIB’s investment portfolio shows that Central Asia is becoming one of the priority regions of the bank’s activities. Significant opportunities are opening up for Kyrgyzstan to expand cooperation, but their implementation will require systemic government policy, high-quality project preparation and effective interaction with international financial institutions.
For the Nash Vek Foundation, this analysis also confirms the importance of public monitoring of the implementation of infrastructure projects, assessing their socio-economic efficiency and ensuring transparency in the use of international financial resources.
[1] https://www.aiib.org/en/projects/list/index.html
[2] https://24.kg/obschestvo/361765_japarov_obsudil_sglavoy_aziatskogo_banka_kambar-atu-1_ijeleznuyu_dorogu/amp/?utm_source=chatgpt.com