ADB’s Role in Bridging Asia and Europe

Olly NorojonoCountry Director, Azerbaijan Resident Mission

Asian Development Bank

7th Euro-Asian Road Transport Conference and Ministerial Meeting

Amman, Jordan12-13 June 2013

Regional Multilateral Development Bank

• Established in 1966

• A partnership of 67 countries

• 48 regional members

• 30 offices worldwide

Asian Development Bank

Strategic Directions

Goal• Poverty reduction in Asia and the

Pacific

Strategy 2020• Inclusive growth• Environmentally sustainable

growth• Regional integration

Partnership• AFG, AZE, PAK, PRC, KAZ, KGZ, MON, TAJ, TKM,

UZB – 10 member countries• ADB, EBRD, IMF, IsDB, UNDP, WB– 6 multilateral

institutions (MI) as partners• ADB serves as the CAREC secretariat• Development through cooperation• Strong MI collaboration, but ownership by countries

Action-oriented• Based on clear strategies and action plans• Covers both hard and soft aspects of cooperation• Key sectors: transport, trade facilitation, energy and

trade policy4

CAREC

Upgrade the 6 transport corridors

1. Europe – East Asia Corridor 2. Mediterranean – East Asia3. Russian Federation – Middle

East and South Asia

4. Russian Federation – East Asia5. East Asia – Middle East and South

Asia6. Europe – Middle East and South

Asia

Transport and Trade Facilitation: Strategic Priorities

Ensure efficient movement of goods and people: simplify and harmonize regulations that govern cross-border trade

Develop sustainable, safe, people-friendly transport and trade network

Develop competitive corridors across the CAREC region

Transport and Trade Facilitation: Strategic Priorities

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Boundaries are not necessarily

authoritative.

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Achievement

As of September 2012

Roads: 3,970 km (51%)

Railways: 3,190 km (44%)

Road: Corridor 2, 3, 5: >80% completedRail: Corridor 4 and 6: >70% completed;

Corridor 3 far behind

Investment and Source of Financing (2001-2012)

ADB

Transport: $6,1 billion (35%)

Trade facilitation: $48 million (19%)

Transport

Other MIs: $7,2 billion (42%)

Government: $3,4 billion million (20%)

Others: $539 million (3%)

Investment Plan (2020)

Transport: $22.5 billion

Trade facilitation: close to $1 billion

Non physical investments

Country-Specific TA Completed: 17

Regional TA Completed: 3

Cross border transport agreement (KGZ-TAJ)

Key IssuesIssues Measures

Inadequate border facilities and infrastructure

ADB’s TA project “Regional Improvement of Border Services (RIBS)”

Agreed approach to mitigate non-physical barriers to cross-border transport of goods and people along CAREC corridors

ADB supported Regional Technical Assistance project was approved in in 2012.

Implications of the CBTA to the private sector

Include private sector in the implementation and capacity building activities of the CBTA

Key IssuesIssues Measures

Slow progress in proposed privately financed investments

Assist in training on institutional capacity and PPP

Inadequate road maintenance Assist in training on performance based management contract for road maintenance

Need to develop capacities Assist in training at national and regional levels through the CAREC Institute program

Key IssuesIssues Measures

Stepped road sector targets place excessive burden on latter years2010-2012: 880 km/year target2013-2017: 1200 km/year target

Use the Midterm Review Stock Take as input to re-evaluate progress and targets

Differences in CAREC planning and evaluation horizons between 2017 and 2020

Use the Midterm Review Strategy Update to harmonize the planning horizon to 2020

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Thank You