Regional : Reinvigorating Regional Cooperation in South Caucasus and Central Asia Amid External Shocks

Sovereign Project | 57061-001

The regional knowledge and support technical assistance (TA) will enable the economies of Caucasus and Central Asia (CCA) to assess the demand for new forms and directions of regional cooperation in light of the implications of the Russian invasion of Ukraine and conflicts in the region by (i) systematically collecting additional information on the related socioeconomic developments, (ii) analyzing regional trade flows, and (iii) reviewing alternative transit options. All three TA outputs will include policy recommendations for the Asian Development Bank (ADB) and the CCA governments, as well as the production of policy briefs and other publications or reports that will be accessible online.

Project Details

  • Project Officer
    Mogilevskii, Roman
    Central and West Asia Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Public sector management
Project Name
Reinvigorating Regional Cooperation in South Caucasus and Central Asia Amid External Shocks
Project Number
57061-001
Country / Economy
  • Regional
  • Azerbaijan
  • Georgia
  • Kazakhstan
  • Kyrgyz Republic
  • Tajikistan
  • Turkmenistan
  • Uzbekistan
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 10121-REG: Reinvigorating Regional Cooperation in South Caucasus and Central Asia amidst external shocks
Source Amount
Technical Assistance Special Fund US$ 350,000.00
Operational Priorities
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Industry and trade / Industry and trade sector development

  • Public sector management / Economic affairs management

Gender
Some gender elements
Description
The regional knowledge and support technical assistance (TA) will enable the economies of Caucasus and Central Asia (CCA) to assess the demand for new forms and directions of regional cooperation in light of the implications of the Russian invasion of Ukraine and conflicts in the region by (i) systematically collecting additional information on the related socioeconomic developments, (ii) analyzing regional trade flows, and (iii) reviewing alternative transit options. All three TA outputs will include policy recommendations for the Asian Development Bank (ADB) and the CCA governments, as well as the production of policy briefs and other publications or reports that will be accessible online.
Project Rationale and Linkage to Country/Regional Strategy

Spillovers of recent shocks on the region. The Russian invasion of Ukraine and regional conflicts in 2022, produced multiple political, economic, and social spillovers on the CCA economies. The implications for CCA include high inflation, supply chain disruptions, reorientation of trade flows, the emergence or increase of re-exports to the Russian Federation, changing patterns in labor, and other international migration. Some of these spillovers had positive effects on the CCA economies, e.g., large-scale re-exports of goods to the Russian Federation; inflow of Russian migrants and associated growth in exports of travel, hotel, rental, financial, and other services to this economy; and relocation of businesses from the Russian Federation to many economies in the CCA. Contrary to initial expectations, most countries of the region appeared to become net beneficiaries of these changes, demonstrating good economic growth rates in 2022. However, many negative effects (e.g., supply chain disruptions, higher trade costs, high inflation, and damage to the investment climate from a general level of uncertainty and increased risk perceptions) are likely to be lasting, while some positive effects (inflow of skilled Russian migrants and their capital, and part of re-exports) may be fading away. The CCA economies may face many social and economic development challenges in the long term.

The response to these challenges would imply finding new trade partners and investment sources, reducing trade costs, restructuring value chains, and accommodating many other actions by the governments, societies, and companies in the region. Most CCA countries are members of the CAREC program, which serves as a flexible and effective platform for regional cooperation in the region. Strengthening and reinvigorating regional cooperation under CAREC will be crucial in the new context (para. 3). Based on this, CAREC and other regional stakeholders may then review and adjust the existing and added channels of cooperation to meet the new challenges.

Scarce and fragmented data on the shock impacts. The new context requires the systematic collection of additional information on any developments related to the Russian invasion of Ukraine that are not sufficiently reflected in official statistics and existing studies and which receive only fragmented coverage in the media. The impacts of the Russian invasion of Ukraine include, but are not limited to, changes in (i) the population's welfare attributable to this crisis (consumer prices; wages and employment in the domestic labor market; gender, regional, and other inequalities; labor and other migration patterns; and remittances); (ii) production, trade, and transit systems (supply chain disruptions; new supply chain development; creation, diversion, and destruction of exports and imports of goods and services, including tourism and financial ones; changes in the product and partner compositions of trade; emergence or increase of re-exports to the Russian Federation; exploration and development of new transit routes; relocation of businesses to and from the region); (iii) the regime of and compliance with sanctions, and anti-money laundering review and reporting duties; (iv) financial systems (currency exchange arrangements; demand for banking services; acceptance and/or issuance of different types of banking cards; currency composition of trade and other international financial flows); (v) governments' economic and social policy responses to the crisis (trade, fiscal, monetary, labor market, and other policies); and (vi) incentives for or barriers and adjustments to the ongoing and planned regional cooperation and integration initiatives. Many of these changes are still ongoing, which makes it necessary to track them continually starting as soon as possible to ensure that the policy advice based on available evidence remains relevant.

The TA is aligned with ADB's Strategy 2030 and its seven operational priorities (OP1OP7), specifically OP6 on strengthening governance and institutional capacity, and OP7 on fostering regional cooperation and integration. It is also aligned with the Central Asia Regional Economic Cooperation (CAREC) 2030 strategy and its operational clusters 2 (trade, tourism, and economic corridor) and 3 (infrastructure and economic connectivity). The TA will bring regional benefits to CCA countries through the joint management of new challenges inflicted by the Russian invasion of Ukraine and conflicts in the region, and by invigorating regional cooperation to maintain sustainable trade and growth in CCA.

Impact

Economic resilience of the CCA economies enhanced.

Project Outcome

Description of Outcome

Socioeconomic, trade, and transit policy response options of the CCA governments expanded and strengthened

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Data on the socioeconomic impact on CCA economies of the Russian invasion of Ukraine and of regional conflicts systematically collected and analyzed

Regional trade flow analysis conducted and effects of trade reorientation and/or supply chain disruption quantified

Existing and alternative transit options for the regional economies assessed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Azerbaijan - Nation-wide; Georgia - Nation-wide; Kazakhstan - Nation-wide; Kyrgyz Republic - 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
During Project Implementation

Business Opportunities

Consulting Services
Consultants will be recruited both from national and international sources. ADB will recruit a firm using the simplified consultants' qualification system. ADB will engage the consultants and carry out procurement following the ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions.
Procurement
Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.

Contact

Responsible ADB Officer
Mogilevskii, Roman
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
21 Apr 2023
Fact Finding
-
MRM
-
Approval
29 Jun 2023
Last Review Mission
-
Last PDS Update
22 Sep 2023

Funding

TA 10121-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2023 - 29 Jun 2023 31 Dec 2024 - -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
350,000.00 0.00 0.00 0.00 0.00 0.00 350,000.00
Cumulative Disbursements
Date Amount
27 Nov 2023 122,862.96

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


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

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Economist Individual - Consulting Closed
Infrastructure Development Specialist Individual - Consulting Closed
Principal Investigator Firm - Consulting Closed
Study Coordinator Firm - Consulting Closed
Transport Specialist Individual - Consulting Closed
Transport Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.