Nikolai Podguzov, Chairman of the Eurasian Development Bank’s (EDB) Management Board, delivered a presentation at the Boao Forum for Asia (BFA) that is taking place these days in Hainan Province, China. The press service of the bank reports.
The session titled Multinational Corporation (MNC) CEO Dialogue, focusing on emerging trends in MNC localization, brought together CEOs from Chinese and multinational companies.
Nikolai Podguzov presented the key messages concerning the role and prospects of cooperation with the EDB as a leading multilateral development bank in the Eurasian region and China. He emphasized that the EDB stands out as a key multilateral development bank specializing in Central Asia. The bank’s investment portfolio across its member countries has exceeded $15 billion.
Today, Central Asia is a large, dynamic and promising economic region.
Over the past 20 years, Central Asian countries’ aggregate GDP has surged more than sevenfold, averaging a growth rate of 6.2 percent annually, while developing countries grew at a rate of 5.3 percent and the global economy at 2.6 percent per year on average.
Nikolai Podguzov also highlighted the dynamic advancement of economic ties between China and EDB member countries. Trade has continued to demonstrate solid growth, reaching $314.8 billion in 2023, up 28.3 percent year-on-year.
Speaking about the development of economic relations between China and Central Asia, he noted a substantial increase in China’s direct investment in the region, soaring to $55.9 billion, as estimated by the bank, with approximately half of this investment allocated to the energy sector. Both sides adhere to the win-win principle, whereby China gains access to Central Asian resources, while the region needs foreign investment to develop its oil and gas resources.
Nikolai Podguzov expressed confidence that collaboration with multilateral development banks (MDBs), including the EDB, helps to scale up funding and facilitate joint projects, thereby contributing significantly to the Sustainable Development Goals in developing countries.
«Capital mobilization, enhanced access to capital markets, promoting funding in local currencies, pooling design expertise, conducting research projects, providing technical assistance and fostering MDB cooperation can contribute to the success of major cross-border projects, enriching economies and mitigating political risks,» he said.
For Chinese companies, effective MDB cooperation entails gaining access to significant funding for projects beyond the country, particularly in the private sector. However, this necessitates the involvement of China’s financial institutions and collaboration with regional MDBs.
In addition, within the context of carbon reforms and the development of a green economy, Chinese companies can leverage their expertise and technology to actively invest in green projects and products, cooperating with development banks to successfully implement projects and minimize risks.
As a multilateral development bank, the EDB not only invests in the region but also promotes foreign investment by fostering partnerships with other international organizations and investment entities; in this context, the bank seeks to collaborate with financial institutions in China.
