Regional: Almaty–Bishkek Economic Corridor Support

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agro-industry, marketing, and trade

Education / Technical and vocational education and training

Health / Health system development

Industry and trade / Trade and services

Information and communication technology / ICT industries and ICT-enabled services

Public sector management / Economic affairs management

Transport / Multimodal logistics

Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development

The regional knowledge and support technical assistance (TA) will pilot the implementation of the pilot cross-border economic corridor around Almaty and Bishkek within the Central Asia Regional Economic Cooperation (CAREC) program. The Almaty Bishkek Economic Corridor (ABEC) follows a multi-sector approach to create one economic space without barriers. ABEC will allow businesses to specialize more, operate at a larger scale, and achieve greater diversification and competitiveness with the purpose of exporting goods and services outside the region.

The implementation of the corridor enjoys strong political support. The two governments created the ABEC subcommittee under the Kazakhstan-Kyrgyz Republic Intergovernmental Council, which is headed by the two Prime Ministers. This TA builds on analytical and conceptual work completed under TA 8259-REG which facilitated analytical reports for ABEC covering agricultural value chains and branding, tourism, education, health, disaster-risk management, information and communications technology (ICT) applications, and connectivity. This work was carried out by a joint working group of the two governments with support from consultants and informed by study tours.

ABEC is a pilot cross-border economic corridor and a flagship of regional integration under the CAREC program. The governments of Kazakhstan and the Kyrgyz Republic, primarily represented by the respective ministries of economy and city administrations of Almaty and Bishkek, together with the Asian Development Bank (ADB) have developed the concept for creating an economic corridor through investment projects, regulatory reforms, and knowledge exchange.

The two governments envision ABEC as an integrated economic space between the cities of Almaty and Bishkek and their surroundings to integrate trade, further enhance free movement of labor and capital, and modernize infrastructure with the ultimate objective of exporting goods and services outside the region. The cross-border regional agglomeration will promote greater diversification and competitiveness, allowing businesses to specialize more, operate at a larger scale, and benefit from agglomeration benefits and other external economies. The two city regions can achieve far more together than what can be achieved by either alone.

Transformative public investments and public-private partnerships with regional impact will help integrate the market, further develop infrastructure and services for the region, and attract private investments. To achieve this, reforms are necessary to harmonize the regulatory frameworks and project preparatory analytical work will be conducted to showcase the augmented feasibility of the regional infrastructure projects. This TA will support the close cooperation between the two countries in developing a common regulatory environment, agreeing on a set of investment projects to be implemented together, and in providing regional public goods that facilitate private investments.

3c. ABEC website developed (2017 Baseline: 0)

3d. At least 1 knowledge video produced

(2017 Baseline:0)

Both completed

Integration of ABEC economic space

Implementation plan finalized

ABEC institutionalized

Four subcommittee meetings have already been organized in 2017-2019.

1a. Number of private sector projects approved under the ABEC framework increased to 1 by 2020

(2016 Baseline: 0)

1b. Number of regional public sector investment project concepts approved within the ABEC framework increased to 1 by 2020

(2016 Baseline: 0)

1c. At least 1 regulatory adjustment in cross-border agricultural value chain by 2020 (2017 Baseline: 0)

ongoing

2. Subcommittee protocol outlining the implementation plan updated and presented during meetings in in 2018 and 2019

(2017 Baseline: no protocol)

Package title: Pool of Sector Experts, Formulation of Implementation Plan, Coordination and Administration

Selection method: QCBS. All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers (2013, as amended from time to time)

Engaged by: ADB

Package title: Workshops, Conferences, and preparation of outreach media (video)

Selection method: Procurement will be in accordance with ADB's Procurement Guidelines (2015, as amended from time to time)

Engaged by: ADB