A panel discussion organized by the Asian Infrastructure Investment Bank (AIIB) and Kazakhstan's Ministry of National Economy highlighted the critical need to engage private capital for bridging Asia's massive infrastructure funding gap. The event, held at the Astana International Financial Centre, brought together experts from development banks, investment firms, and government agencies. They discussed strategies to enhance regional connectivity, promote sustainable development, and achieve carbon neutrality by 2060 through innovative financial instruments and public-private partnerships.

Kazakhstan has outlined an ambitious national vision for infrastructure development, with a focus on diversifying funding sources and fostering international collaboration. Representatives emphasized the importance of integrating green energy initiatives, modernizing transportation networks, and establishing regulatory frameworks that encourage private sector participation. These efforts aim to transform Kazakhstan into a leading trade hub while ensuring environmental sustainability and long-term economic growth.

Promoting Sustainable Infrastructure Through Public-Private Partnerships

The session underscored Kazakhstan's strategic importance within AIIB's portfolio, with over $2 billion invested in seven major projects. These investments have enhanced community connections, provided renewable energy, and improved healthcare services. By aligning with Kazakhstan's goal of achieving carbon neutrality by 2060, AIIB supports significant wind farm developments and landmark PPP initiatives such as the country's first hospital under its PPP law. Railway bypass projects and other infrastructure enhancements further aim to remove trade barriers and expand access to essential services.

Konstantin Limitovskiy, AIIB's chief investment officer, stressed the significance of mobilizing both public and private capital for transformative and sustainable projects. He invited stakeholders to the AIIB's upcoming annual meeting in Beijing this June. Vice Minister of Transport Talgat Lastayev outlined Kazakhstan's commitment to creating a modern transport network, supported by state development programs extending through 2030. With over 4,000 kilometers of roads planned for reconstruction and construction, costing more than $15 billion, sustainable infrastructure development and clean energy transition remain key priorities. Priority transport corridor projects include the Karagandy-Zhezkazgan and Aktobe-Karabutak-Ulgaisyn routes, with updates on co-financing agreements with international organizations.

Innovative Financing Strategies for Long-Term Growth

Evgeniya Bogdanova, CEO of the Astana Financial Services Authority (AFSA), emphasized that engaging private capital requires robust regulatory frameworks, risk mitigation tools, and financial instruments aligned with investor goals. AFSA is expanding the financial environment for sustainable products and ESG instruments, recognizing the indispensable role of multilateral development banks like AIIB in bridging public needs with private sector execution. Asim Rana, AIIB’s manager for financial institutions and funds clients, detailed strategies to mobilize private capital through partnerships with financial intermediaries, on-lending facilities, and innovative securities markets in Asia.

Akzhol Urazalin, deputy director of the International Economic Cooperation Department at the Ministry of National Economy, noted steady economic growth driven by agriculture, transportation, and manufacturing. Kazakhstan's national infrastructure plan spans 2029, valued at approximately $80 billion across various sectors, with around 90% expected from off-budget sources. Challenges persist in long-term financing and legal mechanisms for PPPs, prompting calls for flexible risk-sharing models and green financial instruments. Zamira Sundetova, SkyBridge Invest CEO, offered insights into asset management contributions to long-term infrastructure development, emphasizing sustainability, financial resilience, and environmental impact as crucial criteria. Wang Xianming, senior executive officer at China Construction Bank's Astana branch, highlighted the bank's $1 billion investment since 2019, focusing on gas, solar, and wind infrastructure. CCB serves as a financing supporter, risk manager, and ecosystem builder, advocating for greater collaboration among financial institutions to develop diversified financing systems.