Over the past two years, brand-new clean energy buses have emerged as a striking sight on the streets of Tashkent, the capital of Uzbekistan. With their sleek modern design, spacious interiors, and quiet operation, these buses have won widespread acclaim from the public.
This transformation is underpinned by collaboration between financial institutions from China and Uzbekistan. Specifically, China Development Bank has partnered with National Bank for Foreign Economic Activity of Uzbekistan through relending arrangements. Carried out in two phases, this cooperation has provided crucial support for Uzbekistan to procure these China-manufactured clean energy buses.
"The new buses are equipped with accessibility features to facilitate boarding and alighting for passengers with disabilities. Additionally, all these buses have air conditioning, which is essential for a country with a continental climate like ours. In summer, temperatures in Tashkent can exceed 40 C," said Abdujamil Azizov, the head of a bus operating company in Tashkent.
Currently, the first phase of the bus procurement project, jointly supported by CDB and National Bank for Foreign Economic Activity of Uzbekistan, has been fully delivered, with a total of 1,000 units.
Building on this foundation, both parties are working together to implement the second phase of the project, which has already supported the procurement of nearly 400 natural gas buses manufactured in China for seven major cities in Uzbekistan.
On the vast Eurasian continent, the member countries of the Shanghai Cooperation Organization share a long history of exchanges, similar development tasks, and closely intertwined destinies, which have laid a solid foundation for deeper cooperation.
Against this backdrop, CDB has leveraged its strengths in medium- and long-term financing to serve as a bridge for financial cooperation. Through various methods such as project financing, joint financing, and relending, the bank has backed deeper practical cooperation in the SCO region in infrastructure, energy, small and medium enterprises, and agriculture, supporting numerous livelihood projects and contributing to building a shared SCO home.
Expand collaboration circle
Unity and cooperation have been key to the success of the SCO over the years, with the continuous deepening of regional financial cooperation being an important aspect of this success. On Oct 26, 2005, in the presence of leaders from 10 Eurasian countries, the SCO Interbank Consortium was established in Moscow, with CDB elected as the first rotating chair. The initial member banks also included financial institutions from Russia, Kazakhstan, Uzbekistan, and Tajikistan.
Since 2005, CDB has served five times as the rotating chair of the SCO Interbank Consortium, promoting policy communication, planning cooperation, project collaboration, capacity building, and mechanism development.
For example, to strengthen financial support for practical cooperation, CDB established two phases of special loans totaling 60 billion yuan ($8.38 billion) equivalent for the SCO Interbank Consortium. These loans, in collaboration with member and partner banks, support projects in infrastructure connectivity, trade and economic cooperation, industrial collaboration, SMEs, and social welfare.
In the process of deepening cooperation, the SCO Interbank Consortium has continuously grown and now comprises nine member banks: India Infrastructure Finance Company, Development Bank of Kazakhstan, CDB, Kyrgyzstan's Eldik Bank, Pakistan's Habib Bank, Russia's the State Development Corporation VEB.RF, Savings Bank of Tajikistan, National Bank for Foreign Economic Activity of Uzbekistan, and Savings Bank Belarusbank. Also, it has one partner bank, Development Bank of Mongolia.
In June, during the 21st meeting of the SCO Interbank Consortium Council, member banks signed a declaration that expressed their commitment to strengthening cooperation in areas such as infrastructure connectivity, technological innovation, industrial upgrading, green and low-carbon development, and the digital economy, aiming to deepen cultural exchanges, enhance mutual trust and consensus, and provide high-quality financial services to build a better SCO community.
Assist development of SMEs
El Plast LLC, a SME located in Osh, Kyrgyzstan, produces polyethylene and polypropylene piping and fittings. After receiving funds from CDB, relayed through Kyrgyzstan's Eldik Bank, the company imported modern production equipment from China.
Tilek Zarylbekov, head of the Osh branch of Kyrgyzstan's Eldik Bank, said that one of the bank's strategic goals is to support the development of industrial enterprises, create more local jobs and tax revenue, and promote the use of modern equipment and technology.
"Our collaboration with China Development Bank has made a positive contribution to driving economic development and improving people's well-being," he said.
Over the years, CDB has focused on high standards, sustainability, and benefiting livelihoods. Through the SCO Interbank Consortium, it has collaborated on relending in agriculture and SMEs, boosting economic development and improving livelihoods in partner countries.
Uzbekistan has a large number of SMEs, which play a crucial role in promoting job creation and economic diversification. CDB partnered with National Bank for Foreign Economic Activity of Uzbekistan on 10 relending projects, aiding over 500 SMEs in sectors such as new energy, technology, textiles, building materials, agriculture, pharmaceuticals, and services. These projects have created approximately 30,000 new jobs. Over 90 percent of these loans are under $10 million.
Tajikistan was one of the first countries to join the Belt and Road Initiative. As of the end of July, CDB has provided a total of $47.9 million and 11.31 million yuan in relending to Savings Bank of Tajikistan. This funding primarily supports SMEs and private owners in agriculture, livestock, building materials, and food processing industries.
Catalyze industrial partnership
From October Square in Minsk, the capital of Belarus, a 40-minute drive east leads to the China-Belarus Industrial Park, a key collaboration project under the BRI. At the heart of the park, the distinctive "Aurora Green" from China, representing the Zoomlion Belarus production base, has become well-known among locals.
As BRI cooperation deepens, infrastructure connectivity between China and participating countries is accelerating, offering vast opportunities for construction machinery companies. CDB supports this by aiding Chinese enterprises in international ventures. Since 2018, its Hunan branch has provided a long-term loan of $24.5 million to help establish Zoomlion's production base in Belarus.
"Funding from China Development Bank has provided us with solid support to establish ourselves in Belarus," said Yuan Xun, general manager of Zoomlion's Belarus subsidiary.
In recent years, cranes produced by Zoomlion have been used in major projects such as the Belarus International Standard Swimming Pool and the National Stadium, receiving widespread praise and recognition from clients. The Belarus production base has created around 500 local jobs, and the locally manufactured 25-metric-ton and 60-ton cranes are sold to several neighboring countries.
With financial support, more high-quality made-in-China products are entering SCO countries, contributing to their modernization efforts. In recent years, Kazakhstan's rail freight volume has increased significantly, and the existing locomotive equipment can no longer meet the demand.
CDB, along with its Chinese financial counterparts, formed a loan syndicate to support Kazakhstan's State-owned railway company in purchasing 200 locomotives from CRRC Corporation. These locomotives have been optimized based on user habits and local environmental characteristics, featuring strong power, resistance to wind and sand, and high tolerance to cold temperatures. Their economic efficiency and emission standards meet internationally advanced levels.
For the next step, CDB plans to leverage the SCO Interbank Consortium to strengthen and expand cooperation, and explore sustainable financial models. The aim is to boost financial innovation, enhance communication, and contribute to economic prosperity and well-being in the SCO region, according to the executives of CDB.
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