Regional : Central Asia Regional Economic Cooperation: Supporting Capacity Development Needs of CAREC 2020

Project Name

Central Asia Regional Economic Cooperation: Supporting Capacity Development Needs of CAREC 2020

Project Number

46140-001

Country / Economy

• Regional

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 8301-REG: Central Asia Regional Economic Cooperation: Supporting Capacity Development Needs of CAREC 2020

Source	Amount
Technical Assistance Special Fund	US$ 1.50 million
People's Republic of China Poverty Reduction and Regional Cooperation Fund	US$ 400,000.00

TA 8301-REG: Central Asia Regional Economic Cooperation: Supporting Capacity Development Needs of CAREC 2020 (Supplementary)

Source	Amount
Technical Assistance Special Fund	US$ 1.00 million
People's Republic of China Poverty Reduction and Regional Cooperation Fund	US$ 500,000.00

Strategic Agendas

• Inclusive economic growth
• Regional integration

Drivers of Change

• Governance and capacity development
• Partnerships

Sector / Subsector

• Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

• Energy / Energy sector development and institutional reform

• Health / Health system development

• Industry and trade / Industry and trade sector development

• Public sector management / Economic affairs management

• Transport / Transport policies and institutional development

Gender

Description

CAREC 2020 calls for stronger commitments by member governments to fully mainstream regional cooperation into their development strategies. The Medium-Term Priority Project List (MTPPL) is intended to put into action the operational priorities needed to achieve strategic objectives of CAREC 2020. Projects to be included in the MTPPL must be reflected in the respective member country's national development plan. The TA will help meet sector capacity development needs of member countries in implementing CAREC 2020 and hence support planning and implementation of their national development plans as well.

The TA is a continuation of ADB's firm commitment to support the CAREC program through capacity building initiatives and will complement the earlier and ongoing TAs including (i) TA 6158-REG: Capacity Building for Regional Cooperation in Central Asia (2004-2008, $950,000); (ii) TA 6409-REG: Strengthening Central Asia Regional Economic Cooperation, 2007-2012 (2007 - present, $9,750,000); and (iii) TA 6488-REG: Central Asia Regional Economic Cooperation Institute, 2009-2012 (2009 - present, $5,200,000).

The CAREC program has followed a phased approach, moving from consensus building and institutional assessments to formulation of sector strategies and action plans, and on to identification and implementation of investment projects as highlighted in CAREC 2020. Previous TAs mainly supported institutional arrangement of the CAREC program and professional development in close coordination with the CAREC program. The TA will focus on addressing member countries' specific capacity development needs to implement CAREC 2020 and achieve tangible results on the ground.

Project Rationale and Linkage to Country/Regional Strategy

Capacity building has always been one of the key elements in promoting regional cooperation under the CAREC Program.

In this regard, the CAREC Institute was established in 2007 to (i) enhance the capabilities of CAREC government officials to engage in regional cooperation processes, and improve their capacities to plan and implement regional cooperation projects, and (ii) apply new solutions and best practices based on empirical research to regional challenges and cooperative processes, and build up policy analysis capabilities in the region.

A CAREC Institute Performance Assessment Review (CIPAR) was conducted in 2010. The CIPAR confirmed the progress that the CAREC Institute made so far in achieving its objectives and made a number of interim recommendations in going forward, which were endorsed by the 9th CAREC Ministerial Conference in Cebu in 2010. For capacity building component, the CIPAR recommendations included among others more focus on areas of sector-specific interest and substantive involvement of the sector coordinating committees in the design of training program.

Furthermore, CAREC 2020 places strong emphasis on project implementation and achieving results on the ground as the CAREC program enters into its new phase of cooperation in the next decade. To this effect, the MTPPL that accompanies the CAREC 2020 will be updated every year. For projects to be included in the MTPPL, they must have a well-developed concept, supported by a concrete financing and implementation plan. Therefore, in order to successfully implement CAREC 2020 as well as the MTPPL, project and sector-related capacity of CAREC countries in the priority sectors of cooperation should be further strengthened. More specifically, this should cover, among others (i) program and project development , planning, and analysis from a regional perspective, (ii) project management and implementation, and (iii) results monitoring. This regional technical assistance is designed to strengthen focus of the CAREC Institute's capacity building initiatives to be more in line with the new requirements of CAREC 2020.

Impact

Efficient and effective implementation of priority CAREC projects

Project Outcome

Description of Outcome

Improved capacity of CAREC countries to plan, manage, and implement projects and activities that contribute to the goals of CAREC 2020

Progress Toward Outcome

The CAREC countries have reached broad agreement on the CI Work Plan for 2013-2017 after several rounds of consultations, and this was endorsed as part of the Wuhan Action Plan at the 11th MC.

The 5th General Council Meeting has endorsed CI's 2017 Work Plan which outlines the operational and non-operational activities of the Institute for 2017. During the 7th General Council meeting (Dec 2017), a two year Rolling Operational Plan was presented and conditionally approved subject to the revisions recommended by the council.

Implementation Progress

Description of Project Outputs

Development and delivery of demand-driven learning programs on CAREC-related concerns at the strategic, policy, and sectoral levels on a sustainable basis

Status of Implementation Progress (Outputs, Activities, and Issues)

Sector Coordinating Committees meetings are presently being held and are expected to flesh out the details and implementing modalities of the Work Plan activities in their respective sectors, in particular for capacity building (knowledge services) activities. For trade facilitation, various trainings have been conducted since early 2013. For trade policy, the International Monetary Fund (IMF) chairs the Trade Policy Coordinating Committee (TPCC). ADB collaborated with the World Trade Organization (WTO) in developing and delivering capacity development activities on trade policy in the second half of 2013. Details on these initiatives on trade facilitation and trade policy as well as plans for transport and energy were reported in the second half of 2013.

The TA also funded a workshop that aimed to examine the growth of global supply chains and their implications for policy development and strategies in CAREC countries.

A legal expert and an institutional expert were engaged to help in setting up the CAREC institute (CI). These consultancy assignments constitute a key component of ADB's overall support to CI within CAREC in improving capacity of the CAREC member countries.

A minor change in implementation arrangements was approved to include in the TA consultancy requirement the engagement of a results management specialist who will provide technical inputs and overall support in the preparation of CAREC's annual Development Effectiveness Review.

For this year, the TA has already supported 2 major activities:

- On 2-5 June 2015 in Tokyo Japan, the Asian Development Bank, Agence Francaise de Developpement, Asian Development Bank Institute, jointly organized the "Asia Regional Workshop on Public-Private Partnerships". The training aimed to improve the capacity of government officials to establish effective public-private partnerships (PPPs) to fulfill infrastructure demands in the Asia-Pacific region.

- The CAREC Energy Workshop on New Technologies in Tokyo, Japan on 27-29 July 2015. The experts and representatives from technology companies discussed the renewable energy and energy efficiency policies, advanced coal power plants,

smart meters and smart grids, renewable energy and battery storage, and efficient building energy management.

- Knowledge Sharing Workshop on SME Development and Economic Growth in Suzhou, PRC on 26-29 October 2015. Senior government officials from CAREC member countries attended the workshop jointly organized by CAREC and the Asian Development Bank (ADB).Senior government officials from CAREC member countries attended the workshop jointly organized by CAREC and the Asian Development Bank (ADB). The workshop focused on public sector support for small and medium-sized enterprise (SME) development, with expert presentations and sharing of best practices among participants.

- Workshop on Regional Economic Cooperation Database and Modeling, and Computable General Equilibrium Model Training in Urumqi, PRC on 2-4 Dec 2015. The course offered an introduction to the theory and practice of Regional and National Economic Assessment using Computable General Equilibrium (CGE) models. It combined theoretical and empirical material with the latest data and software resources, training participants to assess economy wide impacts and communicate their findings to effectively support evidence-based policy dialog. It enabled the participants to be familiar with state-of-the-art decision tools that can be used to assess the economic impacts of policy and external events within and across the CAREC economies.

The TA also supported the conduct of meetings among CAREC National Focal Points (NFPs) in Guangzhou, PRC (2728 January 2016) and Almaty, Kazakhstan (31 March-1 April 2016) to facilitate consensus building among CAREC countries for the CAREC Institute to become an intergovernmental organization.

A minor change in implementation arrangement was approved to include one international consultant, who will undertake the midterm review of CAREC 2020 in the TAs consultancy requirement.

A consultation meeting of the CAREC National Focal Points was held in Bangkok, Thailand in May 2016 to discuss, among others, the draft intergovernmental agreement establishing the CAREC Institute.

The TA supported a Development Evaluation Workshop held in Shanghai, PRC on August 2016. This is in line with CIs mission to enhance the quality of the CAREC Program through the generation of knowledge products and services for effective regional cooperation needed to achieve CARECs strategic goals and accelerate economic growth in the CAREC region.

An increase in TA amount ($400,000 from PRCF; $1,000,000 from TASF) was approval by the PRC government [for the PRCF counterpart] on 25 October 2016 and by ADB on 8 December 2016.

The TA supported two more workshops in the last quarter of 2016:

The Conference "Investing for the Future: Infrastructure Development in Central Asia" was held in Bishkek on 16-17 November 2017. The conference brought together policymakers from CAREC countries and experts from international organizations, universities and private sector to exchange views on the current state of infrastructure development in Central Asia.

The Conference on Agriculture Development in Central Asia:Challenges, Opportunities and Policy Options and Workshop on Cross Border Animal

Disease Control, was held on 5-7 December 2016 in Shenzhen, PRC. The Conference aimed to(i) share IFPRI research on agriculture development in four CAREC member countries (ii) share CAREC countries' experience; and (iii) initiate a policy dialogue to develop policy briefs in areas of cooperation among the CAREC countries. Similarly, the workshop on animal disease control aimed to inform policymakers about the incidence and policy actions to control outbreaks and avoid cross border spread of animal disease. Both activities set the stage for future cooperation between CAREC member countries in the critical areas of agriculture development.

For 2017, TASU has approved a TA Utilization Plan which includes cost sharing arrangements with CI on its 2017 program and institutional activities. The plan includes 2 high level forums, 10 workshops, 4 research activities and 3 institutional activities. A summary of completed activities under this plan is presented below:

High-level Forum:

1.Second Think Tank Development Forum (7-8 September 2017, Urumqi, PRC). The forum theme is 'Exploring Knowledge Solutions for Regional Cooperation and Integration and aimed at establishing a formal CAREC think tank network.

2.Strategy Formulation Consultation (8 December 2017) Forum discussed and firmed-up main elements to be included in CI Strategy. (completed without TA 8301 allocation)

Workshops:

3.Unlocking Finance for SMEs and Making it Work in Central Asia (26-27 June 2017, Tbilisi, GEO). The workshop discussed SME-friendly regulatory policy regime with focus on financing. The key outcome is the sharing of learning experiences within and outside the CAREC region.

4.Economic Corridors and Regional Hubs (Hohhot, PRC) The workshop discussed how regional hubs can serve as 'connectors' for economic cooperation policy coordination and have wider connection to global value chain. (completed without TA 8301 allocation)

5.2017 Forum on CAREC Regional Sharing: Exploring Avenues of Cooperation for Cross Border Trade Logistics and Facilitation (16-17 August 2017, Tashkent, UZB). The Workshop focused on situational analysis, gap analysis and implementation strategy for CAREC members and how the developing and least developing countries can benefit from Special and Differential treatment under the WTO Trade Facilitation Agreement. completed without TA 8301 allocation)

6.Road Safety Strategy Implementation: Challenges and Opportunities (30-31 Aug 2017, Dushanbe, TAJ). The workshop focused on various pillars of the strategy and implementation challenges as well as opportunities of cross learning from recent improvements in PRC on road safety.

7.Sustainable Water Resources Management (27-29 November 2017, Qingdao, PRC) - The workshop explored best practices around the region and beyond for introducing and sharing experiences in Agricultural Water Saving Technologies.

8.Reforms in Trade and Trade Facilitation for Emerging Economies (12-13 December 2017, Bangkok, Thailand) The workshop discussed trade and trade facilitation in the context of emerging economies and global trends.

9.Infrastructure Financing (PPP) (18-19 December 2017, Shanghai, PRC) The workshop shared knowledge and insights, including issues in PPP.

10.E-Commerce Challenge and Opportunities for CAREC Countries (21-22 December 2018, Shanghai, PRC) The workshop discussed how E-commerce is growing as a major consumption pattern, spurs spendings in growing economies and emerging markets and leads to developing a service sector as a contributor to GDP growth.

Institutional Activities:

11.IGA Effectiveness Celebration Event (07 September 2017, Urumqi, PRC). The event was held to celebrate CI's legal effectiveness as an intergovernmental organization.

For 2018, 18 program activities were planned comprising 2 high-level forums, 12 workshops and 4 research activities.

In July 2018, the first forum, Third CAREC Think Tanks Development Forum, was held with this year's theme 'Building Knowledge Corridors along the Silk Road . Held in Bishkek, over 100 participants from development partner organizations, think tanks, business sector, and universities from CAREC member countries attended the forum. Participants exchanged knowledge and research on contemporary development challenges facing the CAREC region.

Implementation of capacity-building activities through knowledge-sharing workshops also continued in 2018. As of September 2018, five (5) workshops have been completed:

1. Horticultural Value Chains: Opportunities and Challenges (7-9 March 2018; Antalya, Turkey). This workshop focused on the review and improvement of the value chains structure both in terms of intra-CAREC trade in horticultural products as well as connecting with global value chains.

2. Achieving Energy Security in Asia: Role of Renewable Energy (12-13 March 2018; Baku, Azerbaijan). This workshop discussed the role of renewable energy in promoting energy security in Central Asia and ways to improve understanding of various policies, regulatory, technical and financial aspects of renewable energy deployment, including key challenges and opportunities for increasing uptake of renewable energy in the region.

3. Ease of Doing Business: Taxation and Contract Enforcement in CAREC Region (18-20 July 2018; Urumqi, PRC). This workshop focused on regional countries taxation structure and contractual regimes to enable inflow and outflow of FDI. (completed without TA 8301 allocation)

4. CAREC Corridor Performance Measurement and Monitoring (CPMM), Time Release Study, and Behind-the-Border Indicators (25-26 July 2018; Baku, Azerbaijan). A total of 24 participants from CPMM partner associations and research institutions have participated in the workshop to contribute to the design and development of the proposed behind-the-border data collection methodology

5. Inception Forum and Training on 2008 System of National Accounts. This workshop aimed to promote the capacity building of CAREC member countries on data collection, collation and presentation of national accounts.

In June 2018, inception workshops were conducted to start the formulation of 2 research studies being undertaken jointly in collaboration with ADBI and CI.

1. Leveraging SME Finance through Value Chains in the CAREC Landlocked Economies. This research study took stock of the challenges faced by the SMEs in the CAREC-landlocked economies in terms of their access to finance.

2. Measuring Impacts and Financing Infrastructure in CAREC Countries. This research identified some of the key (regulatory, institutional and implementation) challenges and issues faced by the private sector to participate in infrastructure project

Geographical Location

Regional

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Conceptualization and formulation of the TA is based on the work of CAREC Institute Performance Assessment Review carried out in 2010, various sector and subregional workshops undertaken in 2011, as well as the recommendations received from last year's senior officials' meetings and the 10th Ministerial Conference. This two-year long consultation process included extensive discussions with government officials in all relevant ministries of the member countries, participants of the past capacity building initiatives, development partners, and other stakeholders in nongovernmental organizations. Most planned activiites under the TA will be further discussed and endorsed by the forthcoming senior officials' meetings and ministerial conferences.

During Project Implementation

The TA will be monitored primarily by the various CAREC bodies and the CAREC Unit. Evaluation of the TA's outputs will be done through periodic Performance Review of the CAREC Institute with the assistance of the CAREC National Focal Points in all member countries.

The TA implementation will also be reviewed during the formulation of the rolling TA Utilization Plan initiated in 2017 and the annual Rolling Operational Plan.

Business Opportunities

Consulting Services

About 25 person-months of international and 15 person-months of national consultant inputs will be required to provide advisory and technical services under the TA. The consultants and resource persons will be specialists in the areas of transport, energy, trade facilitation, financial and economic analysis, and other fields related to implementation of CAREC 2020. As the TA will involve different activities consisting mostly of straightforward assignments, consultants and resource persons will be selected and engaged by ADB as individuals based on their qualifications and experience in accordance with ADB's Guidelines on the Use of Consultants.

Procurement

Workshops, conferences, or seminars will be held during TA implementation. All procurement of goods and other services under the TA will be made in accordance with ADB's Procurement Guidelines.

Contact

Responsible ADB Officer

Sabyrova, Lyaziza G.

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Regional Cooperation and Integration Unit, CWRD (CWRC)

Executing Agencies

Asian Development Bank

Timetable

Concept Clearance

10 Apr 2012

Fact Finding

03 Jun 2012 to 08 Jun 2012

MRM

-

Approval

17 Dec 2012

Last Review Mission

-

Last PDS Update

27 Sep 2018

Funding

TA 8301-REG