Description

The Central Asia Regional Economic Cooperation (CAREC) Transport and Trade Facilitation Strategy developed with Asian Development Bank (ADB) technical assistance (TA) and endorsed by CAREC countries in 2007 aims to support CAREC s goal of development through cooperation by upgrading, through construction and rehabilitation, key corridors across the region and simplifying and harmonizing the regulations that govern cross-border trade in the region. The TA will contribute to expanded trade among CAREC countries and between CAREC countries and the rest of the world. The outcome of the TA will be the endorsement and adoption of the updated CAREC Transport and Trade Facilitation Strategy by the CAREC countries.

Project Rationale and Linkage to Country/Regional Strategy

Central Asia is landlocked and therefore high transport costs constitute a major constraint to its development. Meanwhile, Central Asia has a potential to become important transit routes connecting East Asia and Europe, as well as South Asia and the Russian Federation. The CAREC Program aims to promote development in the CAREC countries by strengthening their economic links through cooperation. As transport is a priority sector under CAREC, the Asian Development Bank (ADB) helped develop the CAREC Transport and Trade Facilitation Strategy (the Strategy) in 2008 under the regional technical assistance. The Strategy has the goal of developing an efficient regional transport network for optimal integration of the region internally and with the rest of the world. The Strategy identified six corridors and was to be implemented over a period of ten years till 2017. The Strategy requires a midterm review during 2012-2013, which will refine the Strategy, if necessary, for effective implementation during the remaining period. The 10th Ministerial Conference on CAREC, held in Baku, Azerbaijan on 5-6 November 2011, called for the midterm review of the Strategy. It is proposed that a regional technical assistance (TA) grant from ADB be extended to finance the midterm review of the Strategy. Significant progress has been made on implementing the Strategy. As of the end of 2011, 79% of the total 8,640 kilometers of the CAREC corridors built or improved, which exceeded the 2011 targets. This has greatly contributed to increased traffic (including transit traffic) and trade flows in the CAREC region, as well as between CAREC and neighboring regions. Despite the important progress, a number of development issues in the transport sector remain to be addressed. These issues are (i) connectivity, (ii) sustainability, (iii) road safety, and (iv) delays in cross-border movements.

Impact

Expanded trade among CAREC countries, and between CAREC countries and the rest of the world.

Project Outcome

Updated CAREC Transport and Trade Facilitation Strategy endorsed and updated by the CAREC countries.

Implementation Progress

Comprehensive stock-take report on the implementation of the CAREC Transport and Trade Facilitation Strategy, 2008-2012 Updated CAREC Transport and Trade Facilitation Strategy

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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