ISLAMABAD: Nine countries in the Central and West Asia signed a historicdeclaration on Friday that would accelerate cross-border cooperation onenergy issues and move the region a step closer to the creation of aregional energy market.
Energy ministers and leaders from Afghanistan, Azerbaijan, Georgia,Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan andUzbekistan signed the 10-point declaration at the end of the Central AsiaRegional Economic Cooperation (Carec) Energy Ministers’ Dialogue held inTashkent, said an Asian Development Bank (ADB) press statement.
The meeting marked the first time energy ministers from the Central andWest Asia came together to discuss common regional energy challenges, thestatement added.
The declaration sets the region on a faster reform path towards moreliberal energy markets with greater private sector participation andinvestment, increased power connections and exchanges between countries,and a strong commitment to tap renewable energy sources and cleantechnologies.
The group also endorsed a new Carec energy strategy for the next 10 yearsthat would provide the roadmap to meet the region’s goal of a secure energyfuture.
The meeting of ministers has come at a critical time for the region as itsenergy sector faces a number of challenges. Carec countries are rich innatural resources, but uneven distribution of these resources – compoundedby inadequate infrastructure and inefficient state-owned energy utilities –means some countries continue to face power shortages.
To keep pace with the region’s economic growth and with an increasingdemand for power, the region will need to double its current power systemcapacity by 2030.
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The capacity expansion will require sizable investments, estimated to beabout $400 billion in cumulative investments up to 2030. Regional energycooperation, modern energy markets and a significant increase in privateinvestment in the energy sector is an opportunity to overcome thesechallenges.
The declaration committed the region to policy reforms in creating a moreconducive business environment for attracting private investments acrossthe region.
Speaking on the occasion, ADB Director General for Central and West AsiaWerner Liepach said, “The region cannot achieve the level of investmentneeded without large private investments.”
“Private investments demand predictive policies, stable regulations,transparency and good governance,” he added.
