The Asian Development Bank (ADB) is supporting Turkmenistan in establishing a robust strategic framework for public-private partnerships (PPPs), aiming to diversify foreign direct investment (FDI) inflows beyond the dominant oil and gas sector. This initiative was highlighted by Senior Private Sector Development Specialist Dmitry Kabrelyan during his presentation at the international investment forum “Investment to the Future of Turkmenistan 2026” (IFT 2026), held in Ashgabat on March 18, 2026.
Turkmenistan has achieved notable success in attracting FDI to its hydrocarbons industry through traditional investment channels. However, Kabrelyan emphasized significant untapped potential in non-hydrocarbon sectors and services.
The country’s recently enacted PPP Law presents a key opportunity to channel foreign capital via structured PPP contracts. These contract-based arrangements are expected to introduce international standards in project finance, enhance investor confidence, and further stimulate FDI by demonstrating transparent and reliable mechanisms.
Why PPPs Matter for Turkmenistan’s FDI and Economic Growth
Developing PPPs offers multiple strategic advantages:
Promise of Quick PPP Development. Turkmenistan is now developing its PPP framework, and confidence is given by the success trend in the region of contract-based PPPs developed to boost FDIs.
Regulatory and Institutional Development. Implementing PPPs requires a strong regulatory framework and institutional capacity, which will lead to broader improvements in governance and financial regulation.
Access to International Expertise and Technology. PPPs will allow Turkmenistan to attract international companies with specialized knowledge and advanced technology, fostering a modern and competitive economy further boosting FDIs and technology transfer.
Diversification of the Economy. By supporting sectors beyond hydrocarbons, PPPs can help diversify Turkmenistan’s economy. This diversification aligns with the goals of many foreign investors seeking varied investment opportunities.
ADB’s Technical Assistance and Capacity Building
ADB has actively supported these efforts through targeted technical assistance (TA). In 2023, a grant aided the advancement of private sector participation and the creation of a PPP roadmap.
An additional TA grant, approved in 2025 and totaling $475,000 from ADB, facilitated a comprehensive review of the PPP Law and related regulations, culminating in a high-level implementation roadmap.
ADB has also provided ongoing capacity-building support to the newly established PPP Unit within the Ministry of Finance and Economy. Training programs have reached representatives across various government agencies and ministries, equipping them with the skills needed to manage PPP initiatives effectively.
Initial consultations with the government identified several promising areas where PPPs could improve public service delivery through innovation rather than solely addressing funding gaps.
Moving Toward Pilot Projects: The Next Critical Phase
The focus of the ADB’s support is now shifting from theoretical framework-building to the identification of practical pilot projects. A joint roundtable co-hosted by the ADB and the EBRD marked a significant step in this direction.
The discussion brought together government agencies and development partners around a practical agenda: current status of the PPP framework, relevant international case studies for PPP projects and coordination of development partner support.
The agreed next step involves support government agencies and ministries to determine areas where PPP transactions could be considered and move toward conceptualization of selected pilot PPP projects.
By leveraging ADB’s expertise and international best practices, Turkmenistan is positioning itself to demonstrate investment readiness on the global stage. These PPP advancements align with broader goals of economic diversification, private sector growth, and integration into competitive international markets, as outlined in ADB’s ongoing partnership strategy with the country. ///nCa, 19 March 2026