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Central Asia Regional Economic Cooperation Program
Central Asia Regional Economic Cooperation Program
DEVELOPMENT EFFECTIVENESS
REVIEW 2015
CAREC PROGRAM DEVELOPMENT EFFECTIVENESS REVIEW 2015
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Established in 2001, the Central Asia Regional Economic Cooperation (CAREC) Program is a committed partnership of 10 countries:
•Afghanistan•Azerbaijan•People’sRepublicofChina•Kazakhstan•KyrgyzRepublic•Mongolia•Pakistan•Tajikistan•Turkmenistan•Uzbekistan.
Itissupportedbysixmultilateralinstitutions:•AsianDevelopmentBank(ADB)•EuropeanBankforReconstructionandDevelopment•InternationalMonetaryFund•IslamicDevelopmentBank•UnitedNationsDevelopmentProgramme•WorldBank.
TheCARECprogramworkstocreateadynamicnetworkofmultimodaltransport corridors that open up economic opportunities and intercontinentaltrade,buildingaglobalfutureforEurasia.CARECbuildstransportinfrastructure,andmovespeople,goods,andvehiclesacrossborders faster and at less cost by modernizing customs procedures,removing bottlenecks at borders, and simplifying trade. It also worksto ensure energy security andefficiencyand topromoteenergy trade.CAREC 2020: A Strategic Framework for the Central Asia Regional Economic Cooperation Program 2011–2020 is guiding the partnership through itsseconddecadeofproject implementation,with theprimarygoalofincreasingtradeandcompetitiveness.
The CAREC Program
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CARECoperations,representedbythevolumeofloansandgrantsthatwere approved from 2001 to 2015, grew to $27.7 billion covering 166projects(Table1).
CAREC Portfolio Up to 2015
Table 1: Growth in CAREC Operations, 2006–2015
The development effectiveness review (DEfR) monitors and reports onprogressmadeeachyear towardachievingthegoalsoriginallydefinedintheCentralAsiaRegionEconomicCooperationComprehensiveActionPlanfrom2006,whichwererecastintoamorefocusedsetofobjectivesinCAREC2020.TheDEfRgauges theprogram’saccomplishmentsbyusingquantitativeindicatorsandqualitativeinformation.Italsodescribesthe challenges faced and highlights opportunities for complementaryworkamongsectors.
This brochure summarizes CAREC’s achievements from 2015 andits priorities for 2016 and beyond. The sector reports contain detailedinformationonresultsbasedonwhathasbeendone(interventions),whathasbeendelivered(outputs),howthebeneficiarieshaveusedtheoutputs(outcomes),andwhatalloftheseelementshavecontributedtotheregion(impacts).
Indicator2006
(BaselineValue) 2012 2013 2014 2015
Volumeofapprovedinvestmentprojects,cumulativesince2001 ($million) 3,153 21,980 23,283 24,610 27,730
Numberofapprovedinvestmentprojects,cumulativesince2001 41 136 147 156 166
The bulk of CAREC investments was in transport, where this reached$21.6billion(78%),followedbyenergy,whichreceived$5.6billion(20%).Tradefacilitationortradepolicyprojects,whichdonottypicallyrequiresubstantialcapitaloutlays,totaled$584million(2%).ThisdistributionisdepictedinFigure1,whilethenumberofprojectsisshowninFigure2.
Source: CAREC Program Portfolio
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Figure 1: Sectors of Engagement in CAREC Operations(cumulativevolume)
Figure 2: Sectors of Engagement in CAREC Operations (cumulativenumberofprojects)
Source: CAREC Program Portfolio
Source: CAREC Program Portfolio.
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Figure 3: Technical Assistance Activities, 2001–2015
Note: Priority areas are transport, energy, and trade. Indicative second-tier areas are communicable disease control, agriculture, disaster risk management, and climate change adaptation and mitigation, which relate to the social impacts of trade expansion and improved competitiveness. Source: CAREC Program Portfolio.
Ofthe$27.7billioninvestment,the10CARECmembercountriesfinanced$6.9billion (25.1%);ADB,$9.8billion (35.5%);WorldBank,$5.9billion(21.5%); European Bank for Reconstruction and Development, $1.6billion(5.8%);andIslamicDevelopmentBank,$1.4billion(5.0%).Otherdevelopmentpartnersprovided$1.9billion(7.0%).
Of the 166 CAREC investment projects, by the end of 2015, 69 werecompleted, with a combined value of $5.5 billion or 20% of the totalcommittedresources.Inthetransportsector,43projectswerecompletedout of 112; in energy, 16 out of 39; and in trade facilitation, 10 out of15. Three ADB-supported projects were closed in 2015. Afghanistan,Azerbaijan, Kazakhstan, and Uzbekistan together received 78% ofCARECinvestmentsoverthe15-yearperiod.
From 2001 to 2015, CAREC implemented 253 technical assistanceprojectsworth$440million(Figure3)inpriorityandsecond-tiersectors.Ofthetotalamount,CARECmembercountriesprovided23%;ADB,32%;CARECmultilateralpartners,8%;andotherdevelopmentpartners,37%.
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CAREC Results in 2015TransportandTradeFacilitation
ThegoalsoftheCARECTransportandTradeFacilitationStrategy2020(TTFS2020)arecompetitivecorridorsacrosstheCARECregion;efficientmovement of people and goods; and sustainable, safe, user-friendlytransportandtradenetworks.1
To achieve these, TTFS 2020 seeks to develop a multimodal corridornetwork comprising roads, railways, multimodal logistics hubs, andborder crossings; improve trade and border-crossing services throughcustoms reformsandmodernization,coordinatedbordermanagement,developmentofnationalsinglewindows(i.e.,thatallowtraderstosubmitinformation just once via a single portal to fulfill import- and export-related regulatory requirements), and integrated trade facilitation; andimprove operational and institutional effectiveness to support betterroad maintenance, road safety, and seamless rail connections throughimprovedpoliciesandinstitutions.
In 2015, the multimodal corridor network continued to be developedwith13transportsubsectorprojectsinprogress,consistingof2ports,2logisticscenters,3border-crossingpoints,and6relatedtocivilaviation.Throughtheseprojects
•809kilometers(km)ofexpresswaysornationalhighwayswerebuiltorimproved,bringingthecumulativeprogressto7,229km,93%ofthetotal7,800kmcorridorlengthtargetedunderTTFS2020;
•140kmofrailwayswereimproved;and•77% of the cumulative proportions of total CAREC road corridors
wereingoodcondition.2
1 The CAREC Program and ADB. 2014. CAREC Transport and Trade Facilitation Strategy 2020. http://www.adb.org/documents/carec-transport-and-trade-facilitation-strategy-2020
2 The total road corridor network will be an estimated 29,350 km by 2020. TTFS 2020 aims for at least 70% of this to be built or improved by 2020. This may overstate overall road conditions due to ongoing deterioration on some road sections that were rated to be in good condition as of 31 December 2007.
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CompletedNorth–SouthCorridorLinksMongoliawithTradingPartners
AnunderdevelopedroadnetworkcharacterizedtransportinMongoliain2004,confiningmovementstothenorth–southrailwaylinebetweenthe northern border with the Russian Federation at Sukhbaatarand the southern borderwith the People’s Republic ofChinanearZamyn-Uud,withaccesstointernationalmarketsonlythroughaportat Tianjin. Previous Asian Development Bank support had pavedroad sections along the north–south corridor linking Altanbulag attheRussianFederationborderwithUlaanbaatar,andextendingthecorridorsouthtotheborderwiththePeople’sRepublicofChina.TheRegionalRoadDevelopmentProjectsoughttofurtherraisetransportefficiencyandsafetyonthenorth–southcorridorbycompletingthefirst modern road between Mongolia’s economic centers and itstradingpartners,complementingtheearlierimprovement.
FormulatedinaccordancewithMongolia’sroadsectorstrategy,theprojectconstructeda427-kilometerpavedroadbetweenChoirandthe border with the People’s Republic of China near Zamyn-Uud.TheGovernmentofMongoliaalso introduced theTransitMongoliaNationalProgram,underwhichatransittrafficframeworkagreementwith the People’s Republic of China and Russian Federation wasdrafted, regulations for cross-border vehicles were established,greateraccessofMongolianvehiclestothePeople’sRepublicofChinawasnegotiated, vehicle feeswerecollected for roadmaintenance,and vehicle weight control was enforced. To enhance road safety,theproject installed safety featureson theUlaanbaatar–Altanbulagsection,conductedaroadsafetyaudit,andprocuredpatrolvehiclesequippedwithbreathanalyzersforalcoholandspeedmonitors.Todevelopthearea,fouraccessroadswerebuiltatErdene,Orgon,andSainshand,andlocallaborersweretrainedonroadconstructionandmaintenance.TechnicalassistancewasalsoprovidedtomitigatetherisksofHIV/AIDStransmissionandhumantraffickingonthecorridor.
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The project was Mongolia’s highest-priority transport project. Thepavedroadreplacedearthtracks,reducingtraveltimeby60%andvehicle operating costs by 45%. Vehicles increased by more than40% within 4 months alone. It enabled access to markets andother socioeconomic activity centers; cross-border trade throughZamyn-Uud increased from $143 million in 2007 to $1.4 billion in2013; and better connectivity increased herd numbers in the area,contributing to overall socioeconomic development. Revenue ofDornogoviProvincegrewfromMNT2billion(about$979,000)in2005toMNT34billion(about$16.6million)in2013.Atthesametime,roaddeteriorationwasminimizedbyrestrictionsonoverloadedvehicles,and the equipment procured made traffic police more capable and responsive.Theprojectalsoprovideddirectemploymentequivalentto6,000labor-months.
Source: Asian Development Bank. 2015. Completion Report: Regional Road Development Project in Mongolia.Manila.
Furthermore, the CAREC Transport Sector Work Plan 2015–2017,endorsed by CAREC member countries at the 14th Transport SectorCoordinatingCommittee(TSCC)MeetinginApril2015,detailedaspectsof TTFS 2020 implementation in the areas of road safety, road assetmanagement,transportfacilitation,andrailways.3
•Toward road safety, CAREC member countries delivered theCommitmenttoRoadSafetyatthe14thCARECMinisterialConferenceinSeptember2015,signifyingstronghigh-levelpoliticalsupportformakingCARECcorridorssafer.TheCARECRoadSafetyStrategyisnowbeingpreparedbasedonin-countryconsultationsandregionalworkshops.
•Forroadassetmanagement,adedicatedworkshopwasconductedin April 2015, where CAREC member countries reconfirmed theimportanceofhigh-levelpoliticalsupportforroadassetmanagement,andgoodpracticeonroadassetmanagementwasshared.Buildingon this meaningful exchange, the TSCC endorsed producing acompendium of good practices on road asset management. Theproduction of this compendium is now underway, together with amorespecializedknowledgeproduct thatofferspracticalguidanceto CAREC member countries on how performance-based roadmanagementcontractscanbeutilizedtosupportsoundroadassetmanagement.
3 The CAREC Program. 2015. CAREC Transport Sector Work Plan 2015–2017. http://www.carecprogram.org/uploads/events/2015/025-NFP-Meeting-Mongolia/Key-Documents/02%20Transport%20Draft%20Work%20Plan%202015_2017.pdf
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•For railways, CAREC member countries decided to develop astrategy that will serve as a blueprint for addressing challengesandmaximizingthecontributionof railwaystosustainedeconomicgrowth. Following decisions at the TSCC, the Railway WorkingGroup was formed to guide the development of this strategy. ThefirstmeetingoftheworkinggrouptookplaceinTokyoinNovember2015,which shared themain issues facing railways in theCARECregion,reviewedprogresstowarddevelopmentoftheCARECrailwaystrategy,andagreedonpriorityactionsmoving forward for the fulldevelopmentofthestrategy.
•Cross-border transport facilitation receivedasignificantboostwiththeaccessionofPakistantotheTransports Internationaux Routiers (TIR) Convention, making it the ninth CAREC member country toparticipateinthearrangement.PakistaniscurrentlypreparingitsTIRcustomstransitguaranteesystemforfulloperation.
•ThecontractingpartiesoftheQuadrilateralTrafficinTransitAgreement(QTTA)—the People’s Republic of China, Kazakhstan, KyrgyzRepublic, and Pakistan—agreed to resume operations under theQTTAduringworkshopsorganizedbyCAREC.ThecompletednewalignmentofKarakoramHighwayinPakistanreopenedthecorridorfortransitoperations.AccessionofPakistantotheTIRConventionand the expected accession of the People’s Republic of China in2016willattractadditionaltrafficvolumestothecorridor.
Trade facilitation results, which improved in 2015, are analyzed in the2015CARECCorridorPerformanceMeasurementandMonitoringAnnualReport.
•Timetakentoclearaborder-crossingpointshortenedto13.1hoursin2015from14.1hoursin2014.Thedropintraveltimebyrailwassignificant,from32.6hoursin2014to27.4hoursin2015onaverage,compared to that by road, which fell from 9.9 hours to 9.3 hours.Traindelaysweremainlyduetowaitingforreloading,whilecustomsinspectionwasthemainreasoncitedfortruckdelays.
•Cost of border-crossing clearance dropped to $161 in 2015 from$172in2014.Clearanceofroadtransportbecamecheaperby16%,from$177to$149,incontrasttocostsforrail,whichroseby40%,from$148 to$208.The formerwasdue toautomationandbordercooperation, while the latter arose from fees associated with thetransferofgoodsduetoagaugechange.
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•Speedoftravelona500kmCARECcorridorsectionrosefrom20.8kmperhourin2014to21.1kmperhourin2015.Traintravelspeedimprovedby23%from11.4kmperhourto14.0kmperhour.Trucksonlygained1.3% inspeed from22.9kmperhour to23.2kmperhour,largelyduetoborder-crossingdelays.
•Costs incurred in travelingacorridorsection ($500perkmper20-tonload)droppedforbothtransportmodesfrom$1,360in2014to$1,323 in2015.Costsby truck fell slightly from$1,359 in2014 to$1,341in2015.Costsbytrainwerereducedfrom$1,364in2014to$1,250in2015onaverage.
Border-crossing services improved under the CAREC RegionalImprovementofBorderServicesProject,with themodernizationof thenational single window in the Kyrgyz Republic and test operations ofits Tajikistan counterpart. The border-crossing point in Dusti, TajikistanwasphysicallyupgradedaspartoftheCARECCorridor3ImprovementProject,whileenhancementstofiveothersarebeingcompleted.
TheCARECCommonAgendaforSanitaryandPhytosanitaryMeasureswasadoptedtoadvancereformsandmakethesemeasuresconsistentwith international standards, and to identify priority investment needs.Modernizedsanitaryandphytosanitarymeasuresarecrucialtoensuringfood quality, thereby facilitating trade in agro-food products. A relatedinvestment for Mongolia was approved to aid implementation of thecommonagenda.
CARECmembercountriesthathaveyettoaccedetotherevisedKyotoConventionarecompletingtherequirementswithself-assessmenttools,whilecountriesthathaveaccededarepreparinggapanalysesandactionplans to improve compliance. Country workshops on the AuthorisedEconomic Operator program of the World Customs Organizationidentifiedstepstowardfullimplementation,andframeworksforcustomsinformationexchangeand readinessassessmentwerealsodeveloped.These were completed under a regional technical assistance activityonAligningCustomsTradeFacilitationMeasureswithBestPractice inCAREC.
Toprepare for theconductof time-release studiesat selectedborder-crossingpoints,customsofficialsweretrained,andnationalactionplansweredrafted.Jointcustomscontrolat twoborder-crossingpointswaspiloted, and successful factors were documented. A complementarystudytodeterminethereadinesstomovefromjointcustomscontroltocoordinatedbordermanagementwasalsocompletedundera regionaltechnical assistance activity on Coordinated Border Management forResultsinCAREC.
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Initialstepsweretakentofacilitateregionaltransit,withanimplementationplanandquestionnairescirculatedtorelevantagenciesinCARECmembercountries, and a report on transit flows, routes, and composition oftransittradeamongmembercountriesauthored.Arisk-basedguaranteemechanism is being studied that could support a CAREC regional transit system, the need for which is indicated by current arrangements thatinclude the TIR Convention and bilateral transit agreements. Theseactivitiesweredoneunder the regional technicalassistanceactivityonFacilitationofRegionalTransitTradeinCAREC.
TheCARECFederationofCarrierandForwarderAssociations (CFCFA)continued to be proactive in customs cooperation committee private–public sector initiatives. Deliberations about a CAREC regional transitsystem, and in particular the CAREC market for cargo insurance,confirmedthecriticalneedforliabilityinsurance.
Energy
Thelong-termvisionfortheregion’senergysectoristoachieveenergysecurity,integratedenergymarkets,andenergytrade-drivengrowth.TheCARECenergystrategyandworkplan,2016–2020,whichwasadoptedin2015,setsthematicprioritiestodevelopandinvestinpriorityprojects;develop sustainable energy resources; develop capacity, knowledge,anddemonstrationof technology;establish robust legalandregulatoryframeworks for private investments; and support cross-border energytrade.4
These priority areas have been translated into six elements of action:developing the East Central Asia–South Asia Regional Energy Market(E-CASAREM), promoting regional electricity trade and harmonization,managing energy–water linkages, mobilizing financing for priorityprojects,buildingcapacityandknowledgemanagement,andpromotingandprioritizingcleanenergytechnologies.
4 The CAREC Program. 2015. Strategy and Work Plan (2016–2020) for Regional Cooperation in the Energy Sector of CAREC Countries. http://www.carecprogram.org/uploads/events/2015/027-SOM-September/Key-Documents/2015-SOM-September-Energy-Strategy-Draft.pdf. This was approved at the CAREC Senior Officials’ Meeting in September 2015. It maintains the three components of the 2008 strategy, with stronger links with the work plan and focus on policy measures that are relevant to current country challenges and priorities.
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In2015, theCARECEnergySectorCoordinatingCommitteeundertookinitiativestoalignthestrategiesoftheregion’senergysectorwithglobalmegatrends, reduction in renewable energy prices, and internationalcommitmentstotakeactiononclimatechange.Keyoutcomesinclude
•establishing the need to diversify from fossil fuel dependency andconsider options to integrate renewable energy, energy efficiency,andothernewtechnologiesincountrydevelopmentplans;
•enhancingthecapacityofcommitteememberstoengageinclimatechangeandrelatedtechnologydiscussionsthroughspecifictrainingonregulation,forecasting,off-gridDCsolarsystems,andstorage;
•obtaining value-added findings from studies on climate changevulnerabilityandafinancingroadmap;and
•makingsignificantprogressonenergyprojectstoexpandtheregionalenergymarketandcontributetoeconomicdiversification.
BasedondatareceivedfromAzerbaijan,Mongolia,andUzbekistan,thecompleted projects contributed to the long-term vision of the regionalenergysectorbydelivering
•923.1kmofinstalledorupgradedtransmissionlines,•136.3megawattsofincreasedenergygenerationcapacity,•65megawattsofrehabilitatedgenerationcapacity,•429.1megavoltamperesofinstallednewsubstations,and•351.1megavoltamperesofupgradedsubstations.
InitiativestodeveloptheE-CASAREMalsoprogressed.Contractswereawarded for the Turkmenistan–Afghanistan interconnection under theTurkmenistan–Uzbekistan–Tajikistan–Afghanistan–Pakistan (TUTAP)electricity project. Progress was made on planning for a natural gaspipelineinTurkmenistan,Afghanistan,Pakistan,andIndia,forwhichADBhasservedasthesecretariatsince2003andtransactionadvisorsince2013.
The CAREC Power Sector Financing Road Map, which is underpreparation,includesanassessmentofregionalpowersectorinvestmentand development plans, legal and institutional frameworks, financingsources for power projects, and potential public–private partnershipprojects.Thelistofpriorityinvestmentsisstill,however,beingfinalized.
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Studies, training, and workshops were undertaken as part of capacitydevelopment and knowledge-sharing activities. Regional power tradedevelopmentinCentralAsiaisbeingstudiedtoevaluatepowermarketmodels, pricing rules, and tariff regulation mechanisms in the powersector and toanalyzeexistingpower sector agreements in the region,includinginfrastructureprojects,transboundarytradearrangements,andgoodpracticeforestablishingpowermarkets.
Anenergyvulnerabilitytoclimatechangestudywasalsoinitiated,whichwill help CAREC member countries understand and build resilience toenergysectorvulnerabilitiesduetoclimatechange.Usinghydrologicandeconomic models, it will consolidate a vulnerability assessment of theimpact,risks,andadaptivecapacityoftheenergysector.Theresultswillguideinvestmentsinpowersectorassetsandregionalcoordinationforeffectiveclimatechangeadaptation.
Inaddition,energy–watermodelingtrainingwasconducted,andaCentralAsiaenergy–waterknowledgedataportalandnetworkwasestablished.
Finally,aworkshopandtrainingsessionsonnewtechnologiesforenergyefficiency in Tokyo and participation in an international exhibition inKualaLumpurledtotheformulationofproposedpilotprojectsfornewtechnologyinoff-gridsolarkits,publiclighting,andelectricvehicles.
TradePolicy
TheCARECProgramhasadoptedanopeneconomymodelofgrowthto achieve its strategic objectives. The Trade Policy Strategic ActionPlan, 2013–2017 aims for accession to the World Trade Organization(WTO),greatertradeopennesswithsimplifiedtradetaxesandeliminatedquantitativerestrictions,reducingthetrade-impedingimpactoftechnicalregulationsandsanitaryandphytosanitarymeasures,expandedtradeinservices,andcapacitybuildingandknowledgesharingontradeissues.5
5 The CAREC Program. 2013. Trade Policy Strategic Action Plan for 2013–2017. http://www.carecprogram.org/uploads/events/2013/SOM-Oct-KAZ/002_107_212_Trade-Policy-Strategic-Action-Plan.pdf
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Indeed, at least eight CAREC member countries have eliminated orincorporated all import taxes and fees into tariffs,6 reduced averagetariffs to 10% or less, capped tariffs at 20%, eliminated or convertedquantitativeimportrestrictionsintotariffs,andformallyacknowledgedtheimportanceoftheWTOsanitaryandphytosanitaryandtechnicalbarriersto trade agreements. Five member countries eliminated all remainingdiscrepanciesbetweentaxesappliedtodomesticproductionandimports.
KazakhstanbecameamemberoftheWTOinNovember2015,whiletheKyrgyz Republic joined the Eurasian Economic Union in August 2015.Afghanistan’s WTO membership terms were approved at a specialceremony inDecember2015at theWTOTenthMinisterialConference;whileitsParliamentratifiedtheProtocolofAccessionon18June2016.ThePeople’sRepublicofChinaalsoratifiedtheWTOTradeFacilitationAgreementon4September2015.
Knowledge sharing and capacity building deepened during the TPCCmeetings as well. The World Bank presented an analysis of trade inservices in Kazakhstan, showing that the success of the country’sservicesexportsliesinitshighqualityandlowcost,andthatthequalityofhumancapital,infrastructure,andregulationsandinstitutionsarekeyto thestrengthof theseexports.ADBpresented theCommonAgendafor Modernizing Sanitary and Phytosanitary Measures. Roundtablediscussionsdealtwiththechallengesof implementingtheTradePolicyStrategicActionPlanandtheroleofdevelopmentpartners,whileseveralinternationalinstitutionsprovidedalistoftheircapacity-buildingactivitiesintheregion.
EconomicCorridorDevelopment
TheAlmaty–BishkekCorridor Initiative (ABCI)hasprogressedsincethememorandumofunderstandingwassignedbybothcityadministrationsin November 2014 to develop the economic corridor and to increaseeconomicactivityaimedatcreatingjobs,diversifyingtheeconomy,andpromoting sustainable development. Technical and economic analyseswere completed in the priority areas of education, heath, agricultureand agribusiness, tourism, and disaster risk management for corridordevelopment,useofinformationandcommunicationstechnologyacrossthesesectors,andhowthesecouldcontributetocorridordevelopment.
6 The CAREC Program. 2015. Trade Policy Sector Progress Report and Work Plan. http://www.carecprogram.org/uploads/events/2015/027-SOM-September/Reports/2015-SOM-September-Reports-TRADE-POLICY.pdf
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Two ABCI joint working group meetings were conducted in 2015. Ameeting in Bengaluru focused the scope of future work on specialeconomic zones and industrial parks, and the use of information andcommunications technologyacrossallABCIsectors.At themeeting inMadrid, participants looked at urban transformation; discussed sectorreports on education, agriculture and agribusiness, tourism, and disaster riskmanagement;andnotedtheneedtolookmoredeeplyintoinitiatingspatialplanningtechniquesintotheABCI.
CAREC Institute
ThephysicalbaseoftheCARECInstitutewasinauguratedinMarch2015in Urumqi, Xinjiang Uygur Autonomous Region, People’s Republic ofChina,andafullmanagementteamwasbroughtonboard.TheCARECInstitute provides knowledge support to CAREC member countriesand sector coordinating committees as they build up capacity towardenhancedeconomicandtradecooperationintheregion.Inconjunctionwiththelaunchingofitsphysicalbase,theinstituteco-organized,withtheADBInstitute,atrainingworkshopforgovernmentofficialsonglobalvaluechainandeconomiccorridordevelopment.Italsoconductedworkshopson its program and partnerships, small and medium-sized enterprisedevelopment and economic growth, a regional economic cooperationdatabase, and computable general equilibrium modeling. With ADB, itorganizedaworkshoponsanitaryandphytosanitarymodernization,aswellasthesecondtechnicalconsultationontheQTTA.
ContributionstoKnowledge
TheCARECProgramcontinuestogenerateknowledgethroughresearchand analyses, and provide knowledge services such as training andcapacity-building workshops, exchange of information, electronicplatforms,andothermeans.
KnowledgeGeneration:Analyses
•CAREC Development Effectiveness Review 2014 (January 2016). ThispublicationdescribesCARECoperationsandachievementsin2014inpursuitofCAREC2020,aswellasprioritiesfor2015andbeyondthatwillimprovetheprogram’seffectiveness.
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•CAREC Corridor Performance Measurement and Monitoring Annual Report (May2015).Thisreportrecordsandanalyzestimeandcostdata of actual commercial shipments from origin to destination, includingborder-crossingpointperformance.Atotalof2,784sampleswerecollectedin2015,withthesupportof12partnersin8countries(Afghanistan,People’sRepublicofChina,KyrgyzRepublic,Mongolia,Pakistan,Tajikistan,Turkmenistan,andUzbekistan).
•Climate Proofing ADB Investment in the Transport Sector: InitialExperience(January2015).Thisdocumentdemonstratesexperiencesgained in transport investments, including in Uzbekistan and InnerMongolia in the People’s Republic of China, that integrate climateresilience, and identifies opportunities to mainstream climate riskmanagementinsuchprojects.
•Together We Deliver 2014: From Knowledge and Partnerships toResults (April 2015). This document illustrates how innovation andpartnerships can solve development challenges by examining theimpactofADBprojectsonpeople’slivesinseveralcountriesincludingMongolia,Pakistan,andTajikistan.
•KazakhstanTradeReport:ImprovingtheTradePolicyFramework(June2015).Inthisdocument,theWorldBankexaminesKazakhstan’stradeperformance since 2011, the consequences of adopting the Russian WTOaccessiontariffschedule,sourcesofintermediateimports,andwhethertopursuefreetradeagreementsafterWTOaccession.
•ReformingtheFinancingSystemfortheRoadSectorinthePeople’sRepublic of China (August 2015). This report provides policyrecommendations to enhance the sustainability of road sectorfinancinganddeliveryofprogramsforordinaryroads,inrelationtothe2009FuelTaxReformthathasbeeneffectiveincentralizingrevenuecollection and enhancing the ability of the central government toinfluence roadplanningandpolicydue to itsnewroleas themainsourceoffundingforordinaryroads.
• Improving Energy Efficiency and Reducing Emissions throughIntelligentRailwayStationBuildings(September2015).Thisdocumentsupports the national carbon emission reduction plan in railwaystations in the People’s Republic of China by analyzing energy-savingmeasuresusedby international railwaybuildings,proposingfeasible energy-saving solutions for domestic railway stations, andrecommendingcarbonemission-reductionmeasuresandanactionplanbasedonmarketmechanismsthatenablesfurtherresearchandpractice.
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•From Landlocked to Linked In: The Central Asian Regional Economic Cooperation Program(September2015).ThisisthethirdeditionofthemonographthatdescribestheCARECProgramandhowitsvariousinitiativesintransport,tradefacilitation,tradepolicy,andenergyhaveaffectedthelivesofpeopleintheregion.
KnowledgeServices:Training
A total of 897 persons (1,832 person-days) took part in 22 CAREC-supported workshops and other knowledge-sharing events in 2015(Figure4).
Source: CAREC Program Portfolio.
KnowledgeManagement:Outreach
NewsaboutCARECwascirculatedelectronically in39weeklyupdatesthrough the CAREC e-Alert newsletter. CAREC events and projectswere also reported 342 times in various English-language periodicalscovering the region, a considerable increase from 272 times in 2014.About75mediaorganizationsproducedthereports,includingbusinessnewspaperssuchasIslamic Finance News,newsagenciessuchasASIA-Plus,ENPNewswire,ForeignAffairs.co.nz,M2PressWIRE,PakistanPressInternational,Xinhua,variousnationaldailies,andassortedregionalmediagroups.Sixteenshortvideosandthreephotographicessayswereproducedin2015,describingCARECinmembercountries,sectorwork,orspecialprojectssuchasrailroadsinAzerbaijan,CaspianSeaenergyresources,orurbanheatingoptionsintheKyrgyzRepublic.TheCARECwebsite(http://www.carecprogram.org)continuedtobetherepositoryofallinformationabouttheprogram.
Figure 4: Training Programs and Total Training Days, 2009–2015
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ResourceMobilization
Financing sources for newly approved investments in 2015 are showninFigures5and6.Uzbekistancontributed$1.1billion,orone-thirdofthetotal,forrailwaysalone.ADBandothercofinanciersprovidedsimilarvolumes of funding, the former supporting all three sectors with $674million,andthelatter’s$684milliongoingmainlytowardtransport.
TechnicalassistanceinsupportofCARECoperationsgrewby46%fromthe previous year’s total, with 10 projects equivalent to $22.6 millionapprovedin2015.Sevenwereintransport($21.6million),andoneeachin trade facilitation, energy ($0.8 million), and multisector/second tier($0.2million).
Figure 5: Loans and Grants Approved in 2015, by Financing Source
Figure 6: Loans and Grants Approved in 2015 by Sector
Source: CAREC Program Portfolio
Source: CAREC Program Portfolio.
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A summary of the priority actions in each sector to expand trade andimprovecompetitivenessfollows.
TransportandTradeFacilitation
•Continue implementing the transport sector work plan, 2015–2017andmainstreamingpriorityprojectsintonationaldevelopmentplansofCARECmembercountries.
•FullyimplementtwotechnicalassistanceprojectsthatsupportTTFS2020,KnowledgeSharingandServices inTransportandTransportFacilitation (TA8789-REG)andEnhancingRoadSafety forCARECMember Countries (TA 8804-REG). Process follow-up technical
The amount of funds mobilized annually for investments is monitoredusingthe3-yearmovingaverageinFigure7.ThisfigureenablesCARECpartnerstoanalyzetrendsrelativetofinancingopportunitiesandpriorities.The indicator tapered further in 2015, despite the expansion in annualvolumebetween2014and2015.
Figure 7: Finance Mobilization, 3-Year Moving Average
Note: Figures that appeared in previous development effectiveness reviews have been adjusted to reflect updated project information. The figure for 2006 reflects data for 2004–2006, 2012 for 2010–2012, and so on. Source: CAREC Program Portfolio.
CAREC Priorities for 2016
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20
assistance and regional investment projects, especially in roadsafety,roadassetmanagement,regionaltransitfacilitation.Continuedevelopmentofthegeographicinformationsystems(GIS)databasetotrackimplementation.
•Continue addressing key nonphysical barriers to cross-bordertransportandimplementingtheendorsedapproachtocorridor-basedtransport facilitation arrangements. Ensure that regional projects,suchas forcross-border facilities,aredeveloped inacollaborativemanner.Strengthencross-countrydialogueandcoordinationamongCAREC bodies and among stakeholders to support transportand trade facilitation. Commence implementation of the RegionalImprovementinBorderServicesprojectsinMongoliaandPakistan.
•Discuss the CAREC 2020 midterm review, and determine furthernecessaryactionstofullyimplementTTFS2020.
•Launch the Common Agenda for Sanitary and PhytosanitaryMeasures, and develop regional technical assistance projects withagriculture sector experts to supports its execution. Implementthe Mongolia Regional Upgrading of Sanitary and PhytosanitaryMeasuresforTrade(RUST)project.
•Continue implementation of three regional technical assistanceprojects on aligning customs trade facilitation measures with bestpractice, coordinated border management for results, and regional transittrade,includingcustomsguaranteemechanism.
•Expandcorridorperformancemeasurementandmonitoringtocoverrail transport; logisticsservicesprovision;andcorridorsegments inAzerbaijan, Kazakhstan, Pakistan, and Turkmenistan. Disseminatethe data analysis more broadly, and widen its use as a policy-developmentanddecision-makingtool.
•Conduct further consultations on the financing of projects, withincreasedfocusonprivatesectorparticipation,andintensifyeffortstomobilizemoreresourcesfromcofinanciers.
•FormulateanddelivertrainingworkshopstoimplementTTFS2020.Conduct capacity-building programs designed with the CARECInstituteandADBInstituteontime-releasestudies,accessiontoandcompliancewiththerevisedKyotoConvention,andriskmanagement.
Energy
• Implementtheenergyworkplan,2016–2020,andidentifynewareasinexistingelementsthatwillsupporttheachievementoftheregion’senergysectorvisionandaddressthethreatsofclimatechange.
21
• Introduce new technology areas to encourage diversificationand support energy security complemented by capacity-buildinginitiatives.
•Developandimplementprojectstoencourageregionalenergytrade.•Establish aggregated markets through the demonstration of
sustainable new technology projects and standards to supporttechnologyleapfrogging.
TradePolicy
•Deepenimplementationoftheupdatedtradepolicystrategicactionplan to ensure sufficient progress in trade liberalization, includingimprovementsintheinstitutionalenvironmentfortrade.Periodicallymonitor and report on progress made under the updated strategic actionplantoreflectactionsmadebyCARECmembercountriesinlinewiththetargetedimplementationdate.
•ContinuepromotingtheWTOAccessionKnowledgeSharingProgram.Closely collaborate with WTO’s Institute for Training and TechnicalCooperationtoensureitsactiveparticipationinCAREC’scapacity-developmentactivitiesandCARECmembercountries’participationinsuchtrainingactivities.
EconomicCorridorDevelopment
•Undertake further analytical work in logistics and trade-relatedinfrastructure, coordinatedspatialplanning forurbandevelopment,andtechnicalandvocationaleducationandtrainingfortheABCI.
•Develop the ABCI framework, which will be presented at the 15thCAREC Ministerial Conference in October 2016, to compriseinvestment and nonlending projects for economic corridordevelopment, emphasizing public and private investments andpublic–privatepartnerships.
CAREC Institute
•Conductdemand-driven learningprograms,and initiatea researchprogramwithpolicyandprogramrecommendations.
•Formulateacapacitydevelopmentprogramwithoperationaldetailsfor2017–2018.
CAREC PROGRAM DEVELOPMENT EFFECTIVENESS REVIEW 2015
22
Str
ateg
ic O
bje
ctiv
esE
xpan
ded
Tra
de
and
Imp
rove
d C
om
pet
itiv
enes
s
Reg
iona
l Im
pac
tIn
vest
men
tsr
each
eda
cum
ulat
ive
tota
lof$
27.7
bill
ion,
an
incr
ease
of1
2.7%
ove
rth
e20
14t
otal
.The
num
ber
of
pro
ject
sgr
ewt
o16
6,o
r6%
mor
eth
anin
201
4.T
hese
and
oth
erin
terv
entio
nsc
ontr
ibut
edt
oth
est
rate
gic
obje
ctiv
es,
whi
cha
rea
sses
sed
thr
ough
evi
den
ceo
nfiv
ein
dic
ator
sat
the
reg
iona
llev
el.I
ntra
reg
iona
l tra
de
as a
pro
por
tion
of
tota
lCA
RE
Ct
rad
ero
set
o7.
92%
(201
5)fr
om6
.49%
(201
4)p
rimar
ilyd
uet
oa
dro
pin
exp
orts
and
imp
orts
to
the
wor
ld
in2
015,
alth
ough
tra
de
acro
ssC
AR
EC
mem
ber
cou
ntrie
sre
mai
ned
mor
eor
less
at
the
sam
ele
vels
com
par
edt
oea
rlier
yea
rs.T
rad
e o
pen
ness
or
trad
eas
ap
rop
ortio
nof
gro
ssd
omes
ticp
rod
uct
(GD
P),
dec
lined
to
60.6
%in
201
4fr
om6
6.7%
in2
013.
Lo
gis
tics
Per
form
ance
Ind
ex,w
hich
ass
esse
ssi
xd
imen
sion
s(e
ffici
ency
ofc
usto
ms,
qua
lity
of
tran
spor
tin
fras
truc
ture
,eas
eof
arr
angi
ngc
omp
etiti
vely
pric
edin
tern
atio
nals
hip
men
ts,l
ogis
tics
com
pet
ence
,ab
ility
to
tra
cka
ndt
race
con
sign
men
ts,a
ndt
imel
ines
sof
shi
pm
ents
)eve
ry2
yea
rs,w
asr
educ
edt
o2.
39(2
016)
from
2.4
3(2
014)
on
asc
ale
of1
–5(d
oes
not
incl
ude
Aze
rbai
jan)
.Fo
reig
n d
irec
t in
vest
men
tsa
sa
per
cent
age
ofG
DP
fluc
tuat
ed
dow
nwar
d,s
ettli
nga
t3.
6%in
201
4.
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Sec
tor
Out
com
esC
omp
etiti
vec
orrid
ors
esta
blis
hed
acr
oss
CA
RE
Cr
egio
n.
By
2020
,int
rare
gion
al
trad
eva
lue
shou
ld
incr
ease
five
tim
eso
ver
the
2005
bas
elin
eof
$8
.0b
illio
n.In
201
5,t
he
figur
ew
as$
20.4
bill
ion.
By
2020
,sp
eed
with
d
elay
to
trav
el5
00
kilo
met
ers
(km
)on
aC
AR
EC
cor
ridor
sec
tion
shou
ldin
crea
seb
y30
%
to3
0.0
kmp
erh
our
Effi
cien
tm
ovem
ent
of p
eop
le a
nd g
ood
s fa
cilit
ated
thr
ough
C
AR
EC
cor
ridor
s.
Tim
eta
ken
toc
lear
a
bor
der
cro
ssin
g:1
3.1
hour
sin
201
5(1
4.1
hour
sin
201
4).
Cos
ts t
o cl
ear
bor
der
cr
ossi
ng:$
161
in2
015
($17
2in
201
4).
Sp
eed
oft
rave
lon
a50
0km
CA
RE
Cc
orrid
or
sect
ion:
21.
1km
per
Sus
tain
able
,saf
e,a
nd
user
-frie
ndly
tra
nsp
ort
and
tra
de
netw
orks
d
evel
oped
int
he
CA
RE
Cr
egio
n.
CA
RE
C m
emb
er
coun
trie
s si
gned
the
C
omm
itmen
t to
Roa
d
Saf
ety.
AC
AR
EC
Roa
dS
afet
yS
trat
egy
isb
eing
p
rep
ared
,with
tar
gets
th
atw
illb
eac
hiev
edb
y20
20.
Effe
cts
ofu
neve
nd
istr
ibut
ion
ofe
nerg
yre
sour
ces
amon
g C
AR
EC
mem
ber
co
untr
ies
over
com
e.
Wor
kto
dev
elop
the
E
ast-
Cen
tral
Asi
a-S
outh
A
sia
Reg
iona
lEne
rgy
Mar
ket
cont
inue
d.
Exi
stin
gen
ergy
in
terr
elat
ions
hip
s op
timiz
ed.
Ana
lysi
sto
pro
mot
ep
ower
tra
de
Trad
ean
db
usin
ess
envi
ronm
ent
imp
rove
d.
As
of2
015,
am
ajor
ity
of C
AR
EC
mem
ber
co
untr
ies
had
red
uced
ta
riffs
, and
elim
inat
ed
ort
ariff
edq
uant
itativ
ere
stric
tions
and
m
isce
llane
ous
taxe
son
im
por
ts.
CA
RE
C R
esul
ts F
ram
ewo
rk, J
anua
ry–D
ecem
ber
201
5
23
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Sec
tor
Out
com
esov
ert
he2
010
bas
elin
eof
23.
5km
per
hou
r.In
20
15,t
hefi
gure
was
21
.9k
mp
erh
our.
hour
in2
015
(20.
8km
p
erh
our
in2
014)
.
Cos
tso
ftra
velin
ga
corr
idor
sec
tion
(per
50
0km
,per
20-
ton
load
):$1
,323
in2
015
($1,
360
in2
014)
.
Cos
tsb
ytr
uck:
$1,
359
in2
014
($1,
341
in
2015
).
Cos
tsb
ytr
ain:
$1,
250
in2
015
($1,
364
in2
014)
on
ave
rage
.
was
und
erta
ken.
Sec
tor
Out
put
sM
ultim
odal
cor
ridor
ne
twor
kd
evel
oped
.
Exp
ress
way
sor
na
tiona
lhig
hway
sb
uilt
orim
pro
ved
ann
ually
:80
9km
in2
015
(1,4
50
kmin
201
4).
Cum
ulat
ive
pro
por
tion
of t
otal
CA
RE
C
corr
idor
s in
goo
d
cond
ition
:77%
in2
015
(74%
in2
014)
.
Trad
ean
db
ord
er-
cros
sing
ser
vice
sim
pro
ved
.
Nat
iona
lsin
gle
win
dow
in
the
Kyr
gyz
Rep
ublic
w
asm
oder
nize
da
nd
was
pilo
ted
inT
ajik
ista
n.
Ab
ord
er-c
ross
ing
poi
ntin
Taj
ikis
tan
was
im
pro
ved
as
par
tof
th
e C
AR
EC
Cor
ridor
3
Imp
rove
men
tP
roje
ct.
Op
erat
iona
l an
d in
stitu
tiona
l ef
fect
iven
ess
enha
nced
.
Pak
ista
nac
ced
ed
to t
he T
rans
por
ts
Inte
rnat
iona
ux R
outie
rs
(TIR
)Con
vent
ion,
and
is
pre
par
ing
its c
usto
ms
tran
sit
guar
ante
e sy
stem
.
The
Qua
dril
ater
alT
raffi
cin
Tra
nsit
Agr
eem
ent
amon
g fo
ur C
AR
EC
Targ
eted
leve
lso
fd
omes
tica
ndc
ross
-b
ord
ere
nerg
yp
roje
cts
reac
hed
by
2020
.
Dat
afr
omt
hree
CA
RE
C
mem
ber
cou
ntrie
s sh
owt
hat
923.
1km
of
tran
smis
sion
line
sw
ere
inst
alle
do
rup
grad
ed;
136.
3m
egaw
atts
of
ener
gyg
ener
atio
nca
pac
ityin
crea
sed
,65
meg
awat
tso
fge
nera
tion
cap
acity
Ther
ear
ese
ven
Wor
ld
Trad
eO
rgan
izat
ion
(WTO
)mem
ber
san
d
two
obse
rver
s.
Five
CA
RE
Cm
emb
er
coun
trie
s el
imin
ated
d
iscr
epan
cies
bet
wee
nta
xes
ond
omes
tic
good
san
dim
por
ts.
Eig
ht C
AR
EC
mem
ber
co
untr
ies
elim
inat
ed
or in
corp
orat
ed im
por
t ta
xes
and
fees
.
CAREC PROGRAM DEVELOPMENT EFFECTIVENESS REVIEW 2015
24
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Sec
tor
Out
put
sR
ailw
ays
bui
ltan
nual
ly:
0km
in2
015
(1,0
36k
m
in2
014)
.
Rai
lway
sim
pro
ved
an
nual
ly:1
40k
min
20
15(3
17k
min
201
4).
mem
ber
cou
ntrie
s (P
eop
le’s
Rep
ublic
of
Chi
na,K
azak
hsta
n,
Kyr
gyz
Rep
ublic
,and
P
akis
tan)
res
umed
op
erat
ions
.
The
CA
RE
CR
ailw
ay
Str
ateg
y20
30is
bei
ng
pre
par
ed.
Aw
orks
hop
on
road
as
set
man
agem
ent
was
hel
d,a
nda
co
mp
end
ium
of g
ood
p
ract
ices
pro
duc
ed.
A g
eogr
aphi
c in
form
atio
nsy
stem
s(G
IS)d
atab
ase
on
inve
stm
ent
pro
ject
sis
in
pro
gres
s.
wer
ere
hab
ilita
ted
,42
9.1
meg
avol
tam
per
eso
fnew
su
bst
atio
nsw
ere
inst
alle
d,a
nd3
51.1
m
egav
olt
amp
eres
of
sub
stat
ions
wer
eup
grad
ed.
The
Cen
tral
Asi
a–S
outh
A
sia
Reg
iona
lEne
rgy
Mar
ket
cont
inue
d.
The
use
ofc
lean
te
chno
logy
ene
rgy
incr
ease
d.
Eig
ht C
AR
EC
mem
ber
co
untr
ies
red
uced
av
erag
eta
riffs
to
10%
.
Eig
ht C
AR
EC
mem
ber
co
untr
ies
cap
ped
tar
iffs
at2
0%.
Nin
eC
AR
EC
mem
ber
co
untr
ies
elim
inat
ed
ort
ariff
edq
uant
itativ
eim
por
tre
stric
tions
.
Ten
CA
RE
C
mem
ber
cou
ntrie
s ac
know
led
ged
th
e im
por
tanc
e of
W
TOs
anita
rya
nd
phy
tosa
nita
rys
tand
ard
san
d t
echn
ical
bar
riers
to
trad
eag
reem
ents
.
Ten
CA
RE
Cm
emb
er
coun
trie
s p
artic
ipat
ed
in t
rain
ing
and
te
chni
cal a
ssis
tanc
e fo
r ac
cess
ion,
com
plia
nce,
an
d a
lignm
ent
of
cust
oms
pro
ced
ures
w
itht
her
evis
edK
yoto
C
onve
ntio
n.
25
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Sec
tor
Inve
stm
ents
an
d
Inte
rven
tio
ns
Fort
y-th
ree
pro
ject
sfo
rro
ads
and
rai
lway
san
d
10 fo
r tr
ade
faci
litat
ion
wer
eco
mp
lete
d,a
nd6
9p
roje
cts
for
road
san
d
railw
ays
and
5fo
rtr
ade
faci
litat
ion
are
ongo
ing.
Thirt
een
othe
rtr
ansp
ort
sub
sect
orp
roje
cts
are
inp
rogr
ess:
tw
op
orts
,tw
olo
gist
ics
cent
ers,
th
ree
bor
der
-cro
ssin
gp
oint
s,a
nds
ixr
elat
ed
toc
ivil
avia
tion.
Kno
wle
dge
Sha
ring
and
Ser
vice
sin
Tr
ansp
ort
and
Tra
nsp
ort
Faci
litat
ion
(TA
87
89-R
EG
),w
hich
is
dev
elop
ing
the
CA
RE
C
Rai
lway
Str
ateg
y20
30,e
xcha
ngin
gkn
owle
dge
on
road
as
set
man
agem
ent,
an
dd
evel
opin
ga
GIS
d
atab
ase
onin
vest
men
tp
roje
cts.
Enh
anci
ngR
oad
Saf
ety
for
CA
RE
CM
emb
er
Cou
ntrie
s(T
A8
804-
RE
G)w
illd
evel
opt
he
CA
RE
Cr
oad
saf
ety
stra
tegy
,str
engt
hen
road
man
agem
ent
cap
aciti
es, a
nd
inte
grat
ero
ads
afet
yev
alua
tion
inC
AR
EC
ro
adp
roje
cts.
Faci
litat
ing
Cro
ss-
Bor
der
Tra
nsp
ort
in
the
CA
RE
CR
egio
n(T
A
8147
-RE
G)w
asr
ecen
tly
com
ple
ted
, sup
por
ting
the
Reg
iona
l
The
CA
RE
CC
omm
on
Age
nda
for
San
itary
and
P
hyto
sani
tary
Mea
sure
sw
asa
dop
ted
.
The
Reg
iona
lWor
ksho
p
onS
trat
egic
Initi
ativ
es
for
Trad
eFa
cilit
atio
nof
the
Wor
ldC
usto
ms
Org
aniz
atio
nd
iscu
ssed
th
e im
ple
men
tatio
n of
the
WTO
Tra
de
Faci
litat
ion
Agr
eem
ent
and
its
syne
rgy
with
th
ere
vise
dK
yoto
C
onve
ntio
n.
The
CA
RE
CF
eder
atio
nof
Car
rier
and
Fo
rwar
der
Ass
ocia
tions
(C
FCFA
)del
iber
ated
on
a r
egio
nal t
rans
it sy
stem
and
the
CA
RE
C
mar
ket
for
carg
oin
sura
nce.
Six
teen
ene
rgy
pro
ject
sw
ere
com
ple
ted
,with
23
pro
ject
son
goin
g.
Ana
lyse
san
d
dat
abas
es in
clud
e th
eR
egio
nalP
ower
Tr
ade
Dev
elop
men
tin
C
entr
al A
sia,
to
help
p
rom
ote
pow
ert
rad
e;
Ene
rgy
Vuln
erab
ility
to
Clim
ate
Cha
nge,
to
bui
ld r
esili
ence
to
vul
nera
bili
ties
thro
ugh
coor
din
ated
ad
apta
tion
pol
icie
s;
Cen
tral
Asi
aen
ergy
-w
ater
kno
wle
dge
dat
ap
orta
land
net
wor
k;a
nd
tech
nica
l ass
ista
nce
tod
evel
opt
heC
AR
EC
P
ower
Sec
tor
Fina
ncin
gR
oad
Map
.
Cap
acity
bui
ldin
gan
d t
rain
ing
on
new
tec
hnol
ogie
s,
ener
gyfo
reca
stin
g,
regu
latio
n,a
ndo
ff-gr
id
elec
trifi
catio
nki
tsw
ere
imp
lem
ente
d.
Kno
wle
dge
sha
ring
thro
ugh
trai
ning
in
clud
edS
tren
gthe
ning
Ta
jikis
tan’
sTr
ade
and
In
vest
men
tR
egim
e(T
A8
380-
TAJ)
,and
p
rod
uced
pol
icy
rese
arch
and
ana
lysi
sof
org
aniz
atio
nal
refo
rms
of t
he
Tajik
ista
nS
tand
ard
sA
genc
y(T
ajik
stan
dar
t),
exec
utiv
etr
aini
ngo
nq
ualit
yin
fras
truc
ture
re
form
s, a
nd a
n in
tern
atio
nal t
rad
e an
d
inve
stm
ent
conf
eren
ce.
Kno
wle
dge
sha
ring
dur
ing
Trad
eP
olic
yC
oord
inat
ing
Com
mitt
ee m
eetin
gs
incl
uded
ana
lysi
sof
tra
de
ins
ervi
ces
inK
azak
hsta
n,t
he
CA
RE
C C
omm
on
Age
nda
for
San
itary
an
dP
hyto
sani
tary
M
easu
res,
and
ch
alle
nges
face
d in
im
ple
men
ting
the
stra
tegi
cac
tion
pla
n.
CAREC PROGRAM DEVELOPMENT EFFECTIVENESS REVIEW 2015
26
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Sec
tor
Inve
stm
ents
an
d
Inte
rven
tio
ns
Imp
rove
men
tof
Bor
der
S
ervi
ces
pro
ject
int
he
Kyr
gyz
Rep
ublic
and
Ta
jikis
tan.
Alig
ning
Cus
tom
s Tr
ade
Faci
litat
ion
Mea
sure
sw
ithB
est
Pra
ctic
e(T
A8
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G),
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rdin
ated
B
ord
erM
anag
emen
tfo
rR
esul
ts(T
A8
584-
RE
G),
and
Fac
ilita
tion
ofR
egio
nalT
rans
it(T
A
8586
-RE
G)a
rea
lso
ongo
ing.
27
Tran
spo
rt a
nd T
rad
e Fa
cilit
atio
nE
nerg
yTr
ade
Po
licy
Imp
lem
enti
ng
Bo
die
sTh
eC
AR
EC
Tra
nsp
ort
Sec
tor
Coo
rdin
atin
gC
omm
ittee
and
C
usto
ms
Coo
per
atio
n C
omm
ittee
join
tly
imp
lem
ent
the
CA
RE
C
Tran
spor
tan
dT
rad
eFa
cilit
atio
nS
trat
egy
2020
,whi
chp
riorit
izes
m
ultim
odal
cor
ridor
ne
twor
kd
evel
opm
ent,
tr
ade
and
bor
der
-cr
ossi
ngim
pro
vem
ents
,an
d o
per
atio
nal
and
inst
itutio
nal
stre
ngth
enin
g.T
he
tran
spor
tse
ctor
wor
kp
lan,
201
5–20
17
tran
slat
ed t
his
into
a
pro
gram
tha
t fo
cuse
s on
roa
ds
afet
y,r
oad
as
set
man
agem
ent,
ra
ilway
s,a
ndt
rans
por
tfa
cilit
atio
n.
Act
iviti
esa
re
imp
lem
ente
d t
hrou
gh
coop
erat
ion
amon
g C
AR
EC
mem
ber
co
untr
ies,
the
CA
RE
C
Sec
reta
riat,
and
d
evel
opm
ent
par
tner
s.
CA
RE
C m
emb
er
coun
trie
s ar
e en
gage
d
thro
ugh
natio
nal f
ocal
p
oint
s.T
heC
usto
ms
Coo
per
atio
n C
omm
ittee
is
com
pos
ed o
f hea
ds
of c
usto
ms
auth
oriti
es
of C
AR
EC
mem
ber
co
untr
ies.
The
Ene
rgy
Sec
tor
Coo
rdin
atin
g C
omm
ittee
imp
lem
ents
th
een
ergy
wor
kp
lan,
20
16–2
020,
whi
ch
has
six
elem
ents
:d
evel
opt
heE
ast
Cen
tral
Asi
a–S
outh
A
sia
regi
onal
ene
rgy
mar
ket
(E-C
AS
AR
EM
),p
rom
ote
regi
onal
el
ectr
icity
tra
de
and
ha
rmon
izat
ion,
man
age
ener
gy–w
ater
link
ages
,m
obili
zefi
nanc
ing
for
prio
rity
pro
ject
s,
cap
acity
dev
elop
men
tan
dk
now
led
ge
man
agem
ent,
an
d p
rom
ote
and
p
riorit
ize
clea
nen
ergy
te
chno
logi
es.
The
Trad
eP
olic
yC
oord
inat
ing
Com
mitt
eeo
vers
ees
the
activ
ities
und
er
the
trad
ep
olic
yst
rate
gic
actio
n p
lan,
20
13–2
017,
whi
cha
ims
for
acce
ssio
nto
WTO
,gr
eate
r tr
ade
open
ness
w
iths
imp
lifie
dt
rad
eta
xes
and
elim
inat
ed
qua
ntita
tive
rest
rictio
ns,
red
ucin
gth
etr
ade-
imp
edin
g im
pac
t of
te
chni
cal r
egul
atio
ns
and
san
itary
and
p
hyto
sani
tary
m
easu
res,
exp
and
ed
trad
ein
ser
vice
s,a
nd
cap
acity
bui
ldin
gan
d
know
led
ges
harin
gon
tr
ade
issu
es.
CAREC Secretariatwww.carecprogram.org
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.org
Central Asia Regional Economic Cooperation ProgramDevelopment Effectiveness Review 2015
This Central Asia Regional Economic Cooperation (CAREC) Program DevelopmentEffectiveness Review is the sixth annual consolidated picture of progress made bycountry and multilateral institution partners of CAREC toward economic developmentthrough regional cooperation. It measures the performance of CAREC projectsand initiatives in transport, trade, and energy during 2015; highlights achievements;identifies areas for improvement; and proposes actions to meet emerging challengesand assist in strategic decision making.
About the Central Asia Regional Economic Cooperation Program
The CAREC Program is a practical, project-based, and results-oriented partnershipthat promotes and facilitates regional cooperation in transport, trade, energy, andother key sectors of mutual interest. CAREC has 10 member countries: Afghanistan,Azerbaijan, the People’s Republic of China, Kazakhstan, the Kyrgyz Republic, Mongolia,Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Six multilateral institutionssupport CAREC’s work: the Asian Development Bank (ADB), the European Bankfor Reconstruction and Development, the International Monetary Fund, the IslamicDevelopment Bank, the United Nations Development Programme, and the WorldBank. ADB serves as the CAREC Secretariat.