Regional : Partnership with the Private Sector for Sustainable Trade Facilitation Results in the Central Asia Regional Economic Cooperation Program

Sovereign Project | 53177-001

The knowledge and support technical assistance (TA) will strengthen partnership mechanisms and working relationships between public and private stakeholders of the Central Asia Regional Economic Cooperation (CAREC) Program, with the aim of developing integrated and business-friendly transport and trade networks. The TA will continue to provide opportunities for greater private sector engagement in and contribution to effective trade facilitation in CAREC member countries, strengthen private sector institutions and capacity, and contribute to a better understanding of current logistics services and behind-the-border issues that hinder trade.

Project Details

  • Project Officer
    Karimova, Zulfia K.
    Central and West Asia Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Industry and trade
Project Name Partnership with the Private Sector for Sustainable Trade Facilitation Results in the Central Asia Regional Economic Cooperation Program
Project Number 53177-001
Country / Economy Regional
Afghanistan
Azerbaijan
Georgia
Kazakhstan
Kyrgyz Republic
Mongolia
Pakistan
China, People's Republic of
Tajikistan
Turkmenistan
Uzbekistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9832-REG: Partnership with Private Sector for Sustainable Trade Facilitation Results in CAREC
Regional Cooperation and Integration Fund US$ 750,000.00
TA 9832-REG: Partnership with the Private Sector for Sustainable Trade Facilitation Results in the Central Asia Regional Economic Cooperation Program (Supplementary)
Regional Cooperation and Integration Fund US$ 800,000.00
Operational Priorities OP2: Accelerating progress in gender equality
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Industry and trade / Trade and services

Gender Some gender elements
Description

The knowledge and support technical assistance (TA) will strengthen partnership mechanisms and working relationships between public and private stakeholders of the Central Asia Regional Economic Cooperation (CAREC) Program, with the aim of developing integrated and business-friendly transport and trade networks. The TA will continue to provide opportunities for greater private sector engagement in and contribution to effective trade facilitation in CAREC member countries, strengthen private sector institutions and capacity, and contribute to a better understanding of current logistics services and behind-the-border issues that hinder trade.

The TA is aligned with CAREC long-term strategic priorities for trade as an operational cluster, and Asian Development Bank (ADB) regional cooperation and integration operational directions for 2016-2020. It supports objectives of the CAREC Integrated Trade Agenda 2030, particularly the expansion of trade by adopting more open trade policies and building customs-to-business cooperation, and the strengthening of institutions for trade via increased public-private sector dialogue and cooperation.

Project Rationale and Linkage to Country/Regional Strategy

CAREC countries' share of global trade remains low at less than 1.0%, despite proximity to major trading partners and significant investment in connectivity infrastructure. The region still struggles with inadequate border infrastructure, topographic challenges, nonphysical trade barriers such as the lack of regional coherence in logistics and standards, and weak institutional capacity to facilitate efficient transport and trade of goods: in 2018, eight CAREC countries ranked in the bottom half of the World Bank's Logistics Performance Index. The slow uptake of modern technologies and trade-related solutions, such as national electronic single windows, hinders efficient trade flow. CAREC corridor performance measurement and monitoring (CPMM) data show that less effective transit and border procedures cause bottlenecks at border-crossing points (BCPs), that delay trade and raise costs for business throughout the region: during 2010-2018, the average road BCP crossing time increased by 47% to 12 hours, off-set only slightly by a 9.0% drop in costs to clear the BCP. An incomplete understanding of transport, logistics, and behind-the-border value-chain issues in the region further constrains effective cross-border and transit trade. Although these challenges directly impact private sector trade, CAREC countries have not yet established adequate institutional mechanisms that enable private sector experience to contribute systematically to the identification of potential solutions.

With the support of ADB and development partners, CAREC customs and trade-related agencies are developing regulatory and operational frameworks to facilitate trade and build modern customs administrations. However, effective and sustainable facilitation is only possible with the strong involvement of trade-related private sector representation in policy dialogue and operations, to share private sector experience and evaluation. Business-to-customs interaction requires a robust enabling environment to enable private sector contribution to policy and regulatory reform. As CAREC governments develop customs-to-business initiatives such as compliance programs, including authorized economic operator (AEO) programs, much stronger partnership with the private sector client base is key to sustainable implementation and success. Lack of opportunities to encourage public-private coordination in policy formulation as well as inadequate collaboration in operations has led to an environment of segmented transport and trade networks, where public and private sectors work in parallel-rather than together-to find solutions to the transport and trade challenges they all face.

The ADB-supported CAREC Federation of Carrier and Forwarder Associations (CFCFA) seeks to increase private sector engagement in trade facilitation, enhancing cooperation between public and private trade-related entities across the region. ADB TA support to the CFCFA has provided a voice to private sector transport and trade stakeholders through participation in (i) CAREC Ministerial Conferences, Senior Officials' Meetings, and joint meetings with the CAREC Customs Cooperation Committee (CCC) to build public-private collaboration on trade facilitation reform; and (ii) business development forums. Supply chain and trade logistics trainings have strengthened operational understanding of regulators and operators, and helped the CFCFA start developing common logistics operational standards for the CAREC region to minimize the time and cost of cargo transshipment and cross-border transport. CAREC customs agencies have benefited from greater client interaction and evaluation of private sector experience at BCPs through the CPMM. Despite ADB support to the CFCFA, the organization has yet to develop into a fully independent operational entity. Assessment of previous TA support has recommended adopting a solutions-oriented approach focused on realistic shorter-term targets alongside longer-term goals to stimulate private sector engagement and effective collective action in the CFCFA.

CPMM data constitute (i) a unique measurement of trade facilitation along the CAREC transport corridors, and (ii) the basis of cross-country analyses that identify BCPs and CAREC corridor sections where time- and cost-related bottlenecks are most prevalent, and where feasibility studies for investment are most urgent. The current focus of CPMM reports on transit and border procedures informs customs officials and policy makers, as well as traders and freight forwarders, about key issues that impede fast and reliable trade in the region and that contribute to estimating potential trade gains in CAREC. Guided by CPMM data and analysis for 2010-2017, ADB has financed three BCP improvement projects in four CAREC countries. Under the proposed TA, the CPMM scope will be expanded to contribute more comprehensively to policy formulation by including more detailed analysis of behind-the-border issues such as structural reforms and standards agencies, sanitary and phytosanitary laboratory capacity, and trade facilitation regulations. Given its success in effective monitoring of national trade facilitation efforts and its evidence-based contributions to policy, the CPMM is ready to be implemented and disseminated to a wider public and private sector audience in the CAREC region. As such, a partnership will be implemented between ADB and the CAREC Institute to transfer data gathering and management of the CPMM to the CAREC Institute. Under the TA, ADB and the CAREC Institute will jointly prepare and implement a CPMM roadmap to guide this transition and to include required capacity building to the CAREC Institute.

At the Fifth Joint Meeting of the CAREC CCC and the CFCFA, CAREC customs agencies and CFCFA members requested ADB to continue support for joint activities, particularly relating to the development and application of compliance programs. Customs agencies requested ADB to facilitate collaboration with CFCFA national associations as they enhance CPMM data gathering, and to expand the CPMM mechanism to include deeper and wider analysis of behind-the-border trade-related barriers. The annual meeting of the CAREC Transport Sector Coordinating Committee expressed a desire to coordinate more closely with the CFCFA and contribute to CPMM data gathering and analysis. The CFCFA, CCC, and CAREC Transport Sector Coordinating Committee also requested ADB to develop public domain digital database systems for CPMM data dissemination.

Impact

Trade among CAREC countries and with global markets via CAREC corridors expanded and expanded trade among CAREC countries and with global markets via CAREC corridors

Linkages between public and trade-related private sector strengthened

Project Outcome
Description of Outcome

Integrated and business-friendly transport and trade public-private sector linkages enhanced

Progress Toward Outcome Development of the ADB-CI partnership roadmap has begun, with ADB and CI jointly working on all documentation. A familiarization and capacity-building workshop is scheduled in February 2020. Consultation meetings are set to outline and finalize the terms of the partnership roadmap.November 2019: CFCFA has agreed to hold an ad hoc executive board meeting to discuss and agree on a sustainable way forward for the platform.March 2020: Given the global public health situation related to COVID-19, all meetings and events for both the CFCFA and the CPMM partnership process have been postponed until the second half of 2020.
Implementation Progress
Description of Project Outputs

1. Private sector opportunities for wider-based involvement in trade facilitation developed

2. Institutional capacity of CFCFA strengthened

3. CPMM mechanism expanded and packaged for pilot replication

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

October 2019: Consultants have been engaged and Memorandums of Understanding (MOU) signed with operational partners, to ensure the smooth continuation of the CAREC Corridor Performance Measurement and Monitoring (CPMM) mechanism.

November 2019: The CPMM 2018 Annual Report has been published and uploaded to the ADB and CAREC websites. It was launched and disseminated at the 18th CAREC Ministerial Conference. The Russian translation is under final pre-print proofing.November 2019: The KSTA funded participation of CFCFA Chairman, and CFCFA Vice-chairman, at the 18th CAREC Ministerial Conference (Nov 2019) in Tashkent, for additional sideline consultation meetings on the future sustainability of the CFCFA.

December 2019: Consultants have been mobilized to work on a flagship publication for 2020 to assess and report on progress in trade facilitation measures in the CAREC region.

January 2020: Development of the ADB-CI partnership roadmap has begun, with ADB and CI jointly working on all documentation. A familiarization and capacity-building workshop is scheduled in February 2020. Consultation meetings are set to outline and finalize the terms of the partnership roadmap.January 2020: Preparations for the CPMM 2019 Annual Report are underway with target publication of English- and Russian-language versions by May 2020. ADB and CI will work jointly on development of the 2019 annual report. March 2020: Travel restrictions due to the COVID-19 pandemic have indefinitely delayed planned TA outputs which require face-to-face meeting: (i) ADB-CI CPMM familiarization and capacity-building workshop, and (ii) CFCFA executive board and general assembly meeting. These meetings are required to determine the next steps of TA implementation. Meanwhile, other TA outputs relevant to CFCFA are being consulted with the Executive Board for comments.

April 2020: Peer review and publication compliance of CPMM Annual report conducted.

May-June 2020: Series of online familiarization workshop and roadmap consultation conducted with CI from May-June 2020. CPMM partnership roadmap developed.

July 2020: Survey and data to support the CPMM midyear update report collected. Results are generated for review of international consultants. CPMM Annual Report 2019 published. Production of Russian version initiated.

August 2020: CPMM partnership roadmap finalized and approved. CI continue to develop CPMM briefs and disseminated to relevant country officials. The CAREC Federation of Carrier and Forwarders Associations (CFCFA) on 18 August held a virtual Executive Board meeting to agree on the specific actions to strengthen its governance structure. ADB attended as an observer.

September 2020: Production and review of the CPMM midyear update report is underway. Consultation of CPMM partnership roadmap and MOU with relevant ADB departments conducted. Created to resolve governance, financial, and leadership issues various internal CFCFA consultation and working group meeting were supported by the TA.

October 2020: The TA continued to support regular working group meetings conducted by CFCFA members in preparation of their upcoming Annual General Assembly.

November 2020: The CFCFA held AGM. Upon reaching agreement on internal issues, CFCFA also held their elections, including for the newly-introduced positions of Secretary-General and Vice-chairperson for enterprise members.

December 2020: The CPMM consultants started drafting the flagship report on Progress of Trade Facilitation in CAREC. The TA also supported the engagement of (i) Resource Mobilization Specialist, (ii) Standards Development Specialist, and (iii) CFCFA Coordinator.

January 2021: The TA supported the engagement of a web developer to create an electronic interface for the CPMM database and relevant information. The CPMM consultants began drafting the CPMM Annual report 2020.

February 2021: The TA was extended for another 7 months to utilize substantial savings due to the 2020 travel restrictions brought about by the COVID-19 pandemic and the shift to virtual meeting platforms.

March 2021: Following obtaining consensus among CFCFA members, the proposed sustainable business plan was approved. Deliberations between ADB and CFCFA are underway to negotiate terms of implementation.

April-September 2021: Under the CFCFA component, the implementation of the approved business plan is underway. The CFCFA continues to find ways to register the group in the region. The CFCFA agreed to conduct a regional business networking and development forum to collect fees and generate income to sustain CFCFA operations with the objective to replicate the model in the succeeding years. The CFCFA Secretariat, composed of the CFCFA coordinators and select officials, with the guidance of the resource mobilization specialist, have collaborated to organize and encourage member associations to commit participation in and contribution to the event. The standards development specialist conducted a survey to ascertain the commitment of CFCFA members to adopt and develop more standards on transport and logistics and determine gaps if any.

Under the CPMM component, two knowledge products are being produced: (i) the CPMM Annual Report 2020 and (ii) Progress in Trade Facilitation in CAREC Countries, a technical study that describes the development of trade facilitation through the CPMM perspective. Both knowledge products were presented in a seminar to solicit comments and feedback.

October 2021-September 2022: In a memo approved on 15 October 2021, the TA was approved for (i) an increase in the TA amount by $800,000 to be financed from the RCIF; (ii) the major change in scope and implementation arrangements of the TA, which proposed two additional TA outputs (Output 4: Knowledge management support for CPMM enhanced and Output 5: CPMM methodology and skills strengthened); and (iii) the second extension of the TA completion date by 38 months from 31 October 2021 to 31 December 2024. The TA extension resulted in a cumulative of 45 months from its original closing date of 31 March 2021 and in a cumulative TA amount of $1.55 million.

On 31 January 2022, a memo to request a minor change in implementation arrangements to support the procurement of laptop and software licenses was approved.

a)Output 1: The TA supported (i) the conduct of a gap analysis study on national and/or regional acceptance and adoption of industry-initiated standards; and (ii) the facilitation of CFCFA Annual Meeting, Executive Board Meetings, and Technical Working Group Meetings held virtually. Given the virtual meeting format, CFCFA conducted meetings among its board members at least once a month, resulting in expedited decision-making and active participation among private-sector associations.

b)Output 2: The TA supported (i) the drafting of a CFCFA manual on trade logistics practices in CAREC countries in collaboration with CFCFA members, and (ii) implementing the proposed business model for CFCFA's self-sustainability. On 26-28 October 2021, CFCFA led the organization of its First Informative and Networking Workshop for Transport and Logistic Companies in the CAREC Region, attended by 40-50 private sector participants. Following management decision in consultation with CFCFA, the TA concluded its financial assistance to CFCFA organizational and administration activities on 31 October 2021.

c)Output 3: The TA supported the continuous implementation of CPMM and the production of its knowledge products. In December 2021, the CPMM Annual Report 2020 (English and Russian) was published. A flagship report on the progress of trade facilitation in CAREC from the CPMM perspective was drafted and submitted for publication subject to EAOD and DOC review. In relation to this report, a blog and an article for Developing Asia online journal (on express trains and cross-border trade in Yallama (UZB)) and 1 video have been published and widely disseminated thru ADB sources and other social media. In parallel, the CPMM Annual Report 2021 is also drafted and subject to review.

d)Output 4: The TA supported preparations toward a call for research proposals in February-March 2022, in partnership with EAOD, to promote the use of CPMM among academics, policymakers, and international organizations. On 17 August 2022, the TA supported the conduct of a conference to share the findings of the flagship study. It will also present selected studies that employ CPMM data and demonstrate how the data can be used for policy formulation and deepen academic research. These studies are being prepared for publication.

e)Output 5: The TA supported studies examining the different aspects of CPMM methodology identified in the joint ADB-CI CPMM familiarization and capacity-building workshop. On 17 March 2022, a consultation workshop deliberated the CPMM mandate, scope, and methodology enhancements. The consultants are evaluating the comments and will draft a report resulting in an improved data collection and reporting mechanism by 2023.

Geographical Location Afghanistan - Nation-wide; Azerbaijan - Nation-wide; China - Nation-wide; Georgia - Nation-wide; Kazakhstan - Nation-wide; Kyrgyz Republic - Nation-wide; Mongolia - Nation-wide; Pakistan - Nation-wide; Tajikistan - Nation-wide; Turkmenistan - Nation-wide; Uzbekistan - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultative dialogue with various stakeholders were held during processing.
During Project Implementation To strengthen operational linkages between public and private sectors in CAREC countries, the TA is supporting joint public-private advocacy for national authorized economic operator programs that offer beneficial simplified customs processes and procedures, building strong partnerships from the start through consultative dialogue between the CAREC CCC and CFCFA platforms.
Business Opportunities
Consulting Services ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. ADB will select individual consultants to provide a total of 14.5 person-months of international consultancy, 22.5 person-months of national consultancy, and resource person inputs.
Procurement Procurement of goods and equipment is not envisaged.
Responsible ADB Officer Karimova, Zulfia K.
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 29 Apr 2019
Fact Finding 01 May 2019 to 10 May 2019
MRM -
Approval 24 Oct 2019
Last Review Mission -
Last PDS Update 30 Sep 2022

TA 9832-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Oct 2019 - 24 Oct 2019 31 Mar 2021 31 Dec 2024 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,550,000.00 0.00 0.00 0.00 0.00 0.00 1,550,000.00 17 Nov 2023 1,166,659.01

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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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications


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  • 19 Sep 2022 | Video

    Trade Facilitation in CAREC: A 10-Year CPMM Perspective

    Trade Facilitation in CAREC: A 10-year CPMM perspective identifies trade impediments in the region. Given these constraints, ADB, through the CAREC program, formulates actions to address the issues both at regional and national levels.

Tenders

Tender Title Type Status Posting Date Deadline
Methodology Review Resource Person Individual - Consulting Closed
Communications Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.