Almaty, 31 March 2025 - The Eurasian Development Bank (EDB) and the United Nations Industrial Development Organization (UNIDO) have released a joint publication, “Irrigation Equipment Production in Central Asia: Industrializing the Water Sector”, emphasizing the growing need for sustainable water management and the localization of irrigation equipment production across the region.

Analyzing the growing challenges of water scarcity, outdated irrigation infrastructure, and the effects of climate change, the publication outlines the increasing demand for modern irrigation solutions. By 2040, the region's irrigated land is expected to grow to 10.6 million hectares, driving a demand for advanced irrigation technologies and creating an opportunity for local production worth up to $426 million annually. The publication proposes the establishment of a local irrigation equipment production through cluster development, which could prove an effective means of leveraging the region's growing potential.

“Together with our colleagues from UNIDO, we anticipate that the demand for irrigation equipment could more than double by 2030. The annual market for new technology will amount to 114 million per year, while drip irrigation will account for $220 million. Localizing the production of irrigation equipment in Central Asia will help retain these investments within the local economy. In addition to production, this initiative will drive the development of precision irrigation technologies, digital tools for water resource management, engineering and technical laboratories, and centers for sharing best practices in water resources and irrigation”, stated Nikolai Podguzov, Chairman of the Management Board of the Eurasian Development Bank.

The publication highlights key strategies for achieving industrialization in the irrigation sector, including through establishing a regional cluster for manufacturing and servicing modern equipment, implementing favorable regulatory and cluster policies, and developing critical infrastructure. With regards to cluster development, the publication dives deeper and proposes three stages of creating an irrigation equipment production cluster by building critical mass of enterprises, strengthening cluster policy and enhancing cluster formation to increase synergies within cluster.

“By integrating modern irrigation systems and precision technologies, the cluster initiative will not only enhance water-use efficiency but also contribute to achieving the wider Sustainable Development Goals… UNIDO is very glad to work together with the Eurasian Development Bank, sharing our expertise in cluster development to better advance sustainable industrial development. This joint publication paves the way towards the establishment of a game-changing irrigation equipment manufacturing and service cluster in Central Asia”, noted Gerd Müller, Director General of UNIDO.

The study calls for collaborative efforts among governments, international organizations, and private sector stakeholders to implement investment and policy measures that will enable the region to transition from reliance on imports to a self-sustaining irrigation equipment production hub.

The full joint EDB-UNIDO publication is available here: 

Irrigation Equipment Production in Central Asia: Industrializing the Water Sector

Additional information:

The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB’s cumulative portfolio comprised 305 projects with a total investment of US $16.5 billion. The Bank’s portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The EDB adheres to the UN Sustainable Development Goals and ESG principles in its operations.

United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations with a unique mandate to promote, dynamize and accelerate industrial development.   The mandate of the organization is reflected in Sustainable Development Goal (SDG) 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”, but UNIDO’s activities contribute to all the SDGs. UNIDO provides support to its 173 Member States through four mandated functions: technical cooperation; action-oriented research and policy-advisory services; normative standards-related activities; and fostering partnerships for knowledge and technology transfer. In 2025, the Organization is implementing a portfolio of 697 projects with a total value of $1,674 million. UNIDO’s work is concentrated on three focus areas: ending hunger, stopping climate breakdown; and supporting sustainable sup ply chains.

For further information, please contact:

The EDB Media Centre: +7 (727) 244 40 44, ext. 6147, (pressa@eabr.org), www.eabr.org

Fabio Russo, Chief of MSME Development and Job Creation Unit

Giorgi Todua, Associate Industrial Development Expert, MSME Development and Job Creation Unit