1. How successful is the implementation of the CAREC transport and trade facilitation strategy? What works have been done under this strategy in the region as a whole and in Tajikistan in particular?
On transport
• Under the Transport and Trade Facilitation Strategy (TTFS) 2020, priority infrastructure work focuses on the construction and upgrade of roads and rail lines along the six CAREC multimodal corridors connecting the mainly landlocked CAREC countries to wider regional and global networks. Transport is the largest sector under the CAREC Program in terms of investments. By end-2018, the sector received $25.3 billion investment, accounting for 75% of the total CAREC investment. With joint efforts from the development partners and the CAREC countries, implementation of the TTFS 2020 has been successful with impressive results achieved. These include (i) 10,462 km of road constructed or rehabilitated; and (ii) 6,028 km of rail track newly built, renovated, electrified, or signaled, as of April 2019. All the targets set in the TTFS 2020 have been surpassed.
• Progress also continues in other transport subsectors, such as road safety and road asset management, and aviation. Knowledge products on road safety engineering and road asset management have been developed and circulated to CAREC countries for knowledge dissemination. On aviation, a scoping study on “Aviation and the Role of CAREC” has been completed last year to explore a regional approach to enhance cooperation in the aviation sector.
• A new CAREC transport strategy leading to 2030 is being formulated. The new strategy will continue to advance the regional infrastructure agenda with more focus on sustainability. It will focus on developing sustainable transport connectivity within the CAREC region and with the rest of the world through deployment of effective high-quality decision-making tools, efficient transport infrastructure financing modalities, modern engineering designs and construction methods, new transport and logistics technologies, and harmonized legal and operational standards.
On trade facilitation
Trade facilitation has been another important agenda under CAREC. Overall, CAREC has been supporting its member countries’ efforts in improving trade, increasing market access through a series of measures with tangible results achieved. These include:
• Firstly, support in improving trading environment and investment climate, for WTO accession or fulfilling of WTO commitments, including facilitating the implementation of WTO Trade Facilitation Agreement. So far, eight out of the 11 CAREC members have joined WTO. Tajikistan, Kazakhstan, and Afghanistan joined in recent years. For the three non-WTO members, Azerbaijan is under negotiation for WTO accession. Uzbekistan has been actively reactivating the Working Party in WTO. Turkmenistan renewed its interest to join WTO as observer.
• Secondly, support in investing in Regional Integrated Border Services (RIBS) projects, designed to coordinate infrastructure improvements and border crossing clearance procedures in selected border crossing points. RIBS projects are being implemented in four countries – Kyrgyz Republic, Mongolia, Pakistan, and Tajikistan. A new joint-use single stop customs border crossing point between Azerbaijan and Georgia with the application of a single window facility is being considered. Scoping work for a potential RIBS project and ICT roadmap in Uzbekistan and Turkmenistan is also under discussion.
• Thirdly, progress has also been made in implementing the CAREC Common Agenda for Modernization of Sanitary and Phytosanitary (SPS) Measures for Trade, particularly the establishment of national SPS working groups to develop and implement priority reforms, and institutional and facility upgrades for agriculture trade. The Regional Upgrades of SPS Measures for Trade (RUST) project is being implemented in Mongolia to improve SPS inspection and control systems with complementary technical assistance on risk management reforms. Scoping study was also completed for a possible similar project in the Kyrgyz Republic and technical advice on SPS regulatory reforms is being provided to Pakistan, Turkmenistan, and Uzbekistan.
• Lastly, in 2018, a new CAREC Integrated Trade Agenda, or CITA 2030 in short, was formulated and endorsed at the 17th CAREC Ministerial conference on 15 November 2018 in Ashgabat, Turkmenistan. It aims to assist CAREC member countries in integrating further with global economy through three pillars: (i) trade expansion from increased market access; (ii) greater diversification; and (iii) stronger institutions for trade. A three-year rolling strategic action plan (RSAP) 2018-2020 includes proposed investment and technical assistance projects under CITA for programming at regional and country operations. A results-based approach will be used to monitor and evaluate CITA 2030’s progress and achievement in delivering results.
• Since 2001, Tajikistan has received almost $1,6 billion of investment under the CAREC Program including $830 million for improving transport connectivity, $720 million for boosting energy trade and enhancing energy security, and $40 million for improving border services for enhanced trade facilitation. With this support, over 700 kilometers of Tajikistan’s roads have been improved which helped Tajikistan strengthen trade links with regional and international markets and bring social services to the Tajik people. Last year, ADB approved a $35 million grant project to reconnect Tajikistan’s electricity system to the Central Asia Power System through interconnection with Uzbekistan. This will help Tajikistan expand its regional energy efficiency. By supporting development of a “single window” facility and improvement of key customs posts along select borders, ADB has complemented Tajikistan’s endeavors in addressing non-tariff barriers to trade. Since its accession to WTO in 2013, ADB also provided technical assistance to Tajikistan to help the country fulfill its WTO commitments in the areas of standard agency reform, investment climate improvement and building capacity for trade-related institutions.
2. Can you tell about its financing: how many grants and loans have been allocated to implement it?
CAREC investments have reached close to $34 billion since its inception in 2001 covering 196 projects. Of this, $12.5 billion has been financed by ADB, $10.8 billion by other development partners, and $7.7 billion from CAREC governments. Of these investments, transport has the biggest share, with about 74.6%, or $25.2 billion; energy accounts for 22.5%, or $7.6 billion; and trade facilitation accounts for 2.9%, or $0.9 billion.
3. How satisfied are you with the CAREC implementation?
ADB serves as the secretariat for the CAREC Program whose vision is “Good Neighbors, Good Partners, and Good Prospects” through joint efforts. Transforming ideas into action, nearly $34 billion worth of investments have been made since its initiation in 2001 supporting 196 projects to promote economic growth in the region. ADB has contributed around $12.5 billion of investments to these projects that have helped establish multimodal transportation networks; increased energy trade and security; broken down trade barriers; facilitated free movement of people and freight; and laid the groundwork for development of economic corridors.
CAREC countries recognize the importance of regional cooperation to meet national and global goals. CAREC adopted a new long-term strategy at the 16th CAREC Ministerial Conference in Dushanbe, Tajikistan in October 2017, navigating the Program to its third decade of operations. The new strategy further scales up CAREC’s mandate and diversifies the efforts to support regional economic and financial stability, and regional initiatives in the areas of tourism, agriculture and water resources, and health and education. ADB, as the CAREC Secretariat is committed to continue our support to the CAREC Program as honest broker, financier and resource mobilizer, and knowledge provider.
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