EDB proposes 8 investment areas for Eurasian region

The Eurasian Development Bank (EDB) is proposing eight areas for strengthening the contribution of multilateral development banks (MDBs) to the development of countries in the Eurasian region, Nikolai Podguzov, chairman of the EDB Management Board, said during a media seminar titled "Inside the MDBs: How Development Banks Work," Report informs.

"It is necessary to shift the focus of financing from sovereign to non-sovereign projects, which will reduce the burden on budgets and increase flexibility. It is also important to increase investment in manufacturing and agriculture to stimulate rapid growth, employment, and human capital development. Another promising area is investment in traditional low-carbon energy, including nuclear power and the transition from coal to gas," he said.

He also noted that MDBs need to invest in water security, as water is the most undervalued basic resource in the world.

"Furthermore, we should invest in cross-border transport infrastructure, where MDBs are ideal anchor investors attracting private capital. It's important to increase financing in local currencies-this is desired by member countries, and it contributes to the development of local financial markets and the reduction of currency risks. Another promising area is data center infrastructure. Just as MDBs helped build telecommunications companies 20 years ago, today they can facilitate the creation of artificial intelligence infrastructure. Finally, closer cooperation between MDBs is necessary to improve overall efficiency," added Podguzov.

The head of the EDB noted that although MDBs rarely interact with each other, their collaboration is becoming critical: "No international financial institution can independently finance the construction of large, capital-intensive infrastructure projects. To meet the growing needs of developing economies, MDBs must be more dynamic, make decisions faster, collaborate more actively, and invest in new development projects."