fbpx 55118-001: South Caucasus Gateways | Asian Development Bank

Regional: South Caucasus Gateways

Sovereign (Public) Project | 55118-001 Status: Proposed

The proposed regional knowledge and support technical assistance (TA) will facilitate the development of a regional cooperation approach to unleash the economic potential of the South Caucasus region comprising of Armenia, Azerbaijan, and Georgia in the new realm of reopening gateways agreed in the 2020 Armenia-Azerbaijan Ceasefire Agreement. The South Caucasus Regional Cooperation Approach (SCRCA) will assess the benefits of economic cooperation within and beyond the region, amidst political uncertainties. The approach will provide options to identify and optimize international and domestic gateways and provide a roadmap for the region to regain its historical significance for trade and transit especially with Central West Asia and as a bridge to Europe. Blocked historical transport routes because of divided land and closed border crossing points result in high costs for trade, reducing the competitiveness of the region's exports.

Project Details

Project Officer
Rosbach, Kristian Central and West Asia Department Request for information
Country
  • Regional
Sector
  • Transport
 
Project Name South Caucasus Gateways
Project Number 55118-001
Country Regional
Armenia
Azerbaijan
Georgia
Project Status Proposed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA: South Caucasus Gateway
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Industry and trade / Industry and trade sector development - Trade and services

Transport / Multimodal logistics - Transport policies and institutional development

Gender Equity and Mainstreaming Some gender elements
Description The proposed regional knowledge and support technical assistance (TA) will facilitate the development of a regional cooperation approach to unleash the economic potential of the South Caucasus region comprising of Armenia, Azerbaijan, and Georgia in the new realm of reopening gateways agreed in the 2020 Armenia-Azerbaijan Ceasefire Agreement. The South Caucasus Regional Cooperation Approach (SCRCA) will assess the benefits of economic cooperation within and beyond the region, amidst political uncertainties. The approach will provide options to identify and optimize international and domestic gateways and provide a roadmap for the region to regain its historical significance for trade and transit especially with Central West Asia and as a bridge to Europe. Blocked historical transport routes because of divided land and closed border crossing points result in high costs for trade, reducing the competitiveness of the region's exports. New gateways can yield considerable economic benefits for the region and hence support the political peacebuilding process.
Project Rationale and Linkage to Country/Regional Strategy Each country of the South Caucasus region claims its role as a transport hub between Asia and Europe. To realize this potential, however, the countries' cooperation among each other is a precondition. South Caucasus gateways are competing with other transport routes and only the fastest and least expensive routes will attract significant transport flows. All three countries have made significant efforts to improve soft and hard trade infrastructure including investments to reduce travel time and facilitate trade and align with international integration initiatives. The region would benefit from improved connections. The SCRCA will aim to leverage the region's investments, trade facilitation efforts, and significance in interregional transport gateways to provide transport and trade options that benefit Armenia, Azerbaijan, and Georgia. The approach will be sensitive to political realities, consider the status of existing transport infrastructure, help maximize benefits from trade agreements, support the diversification of exports through lower transport costs, and enhance value added in the region. The approach will also assess new tourism opportunities through re-opened gateways within the region and with neighboring countries.
Impact a shared vision for a South Caucasus Gateway that improves understanding and commitment of Caucasus countries for regional cooperation
Outcome Increased trade among Armenia, Azerbaijan, Georgia, and their neighbors
Outputs

Political economy assessment for South Caucasus Gateways prepared

Sector assessments for exports and regional value chains

South Caucasus Regional Cooperation Approach developed

Geographical Location Armenia - Nation-wide; Azerbaijan - Nation-wide; Georgia - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A total of 25 person-months of individual consulting services (up to 8 international consultants for 15 person-months and up to 9 national consultants for 10 person-months) will be provided using mostly lumpsum/output-based contracts.
Responsible ADB Officer Rosbach, Kristian
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 18 Jun 2021
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 24 Jun 2021

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