“Global development banks set a common strategic direction, while regional institutions provide a deeper understanding of local conditions,” the analysts noted.
Central Asia is a vivid example of how this interaction can be successful. In this region, there is an annual investment deficit of over $50 billion, while the total financing from multilateral development banks over the past five years has averaged only $10 billion per year.
“We must close this gap by increasing capital volumes and improving cooperation among multilateral banks,” emphasized Nikolai Podguzov, Chairman of the EDB Board.
“Water–Energy–Food Nexus”
Multilateral development banks can play a crucial role in creating regional consortiums or specialized centers aimed at preparing projects to coordinate large-scale initiatives. By providing long-term syndicated financing and advisory services, they can significantly enhance the resilience of implemented projects and the efficiency of resource use.
Sustainable Transport Systems
Coordinated actions by multilateral banks can contribute to the creation of economically sustainable transport corridors, as well as the development of low-carbon mobility systems and the implementation of digital infrastructure solutions. Key mechanisms include co-financing, planning integration, and streamlining cross-border procedures, including border administration and logistics innovations.
Climate and Sustainable Financing
Joint creation of green syndicated loans, issuance of social, green, and sustainable bonds (GSS+ bonds), as well as support for climate initiatives at national and regional levels allow multilateral banks to attract significant volumes of financing and align sustainable development standards and ESG approaches.
Cross-Border Infrastructure
Coordinated actions by multilateral banks play a key role in the planning, financing, and implementation of large infrastructure projects that involve multiple countries. These banks have unique capabilities to mitigate political risks and align national strategies, ensuring the financial sustainability of such projects, especially when implemented through public-private partnership mechanisms.
