ADB to assist in the preparation of the Caspian "green energy corridor" project

The Asian Development Bank (ADB) has allocated $225,000 through a special technical assistance Fund for the implementation of the project to create a "green energy corridor" across the Caspian Sea.

According to ADB, this project involves the construction of an underwater cable connecting the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan, which will be a significant step in strengthening energy cooperation among Caspian countries.

A Memorandum of Understanding was signed by the governments of the three countries on May 2, 2024, aimed at ensuring energy security, developing sustainable energy practices, and supporting economic growth in the region. The project also plans to establish a "green corridor" through which renewable energy will be transmitted from the Caspian region to Europe via a cable in the Black Sea.

Technical assistance is provided for research and preparation of this interregional project, which will require significant investments. ADB offers technical support for the project through various measures, including assistance in forming intergovernmental working groups, creating a special purpose vehicle (SPV) or joint venture, developing a transparent and effective governance structure, legal and commercial frameworks, a detailed SPV operational plan, and providing additional consulting support to enhance the capacity of representatives from the countries to ensure high-quality technical assessments and feasibility studies.

This project will not only enhance energy cooperation in Central Asia but also contribute to the reduction of greenhouse gas emissions, supporting the goals of the Paris Agreement and the development of green energy infrastructure, ADB noted.