(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 16. The Middle Corridoris important for diversification of trade and transport routes fromChina to Europe, Lyaziza Sabyrova, Regional Head, RegionalCooperation and Integration of the Asian Development Bank's (ADB)Central and West Asia Department (CWRD), said in an exclusiveinterview with Trend .
"The development of the Middle Corridor is emerging as a bigagenda among many development partners. There are so manyinternational forums, conferences, and even national gatheringsdiscussing the Middle Corridor. The Middle Corridor-which is alsoreferred to as Corridor 2 under the Central Asia Regional EconomicCooperation (CAREC) Program-offers the opportunity fordiversification of transport and transit routes from China toEurope through Central Asia and South Caucasus countries, includingAzerbaijan. Aside from the diversification of routes the MiddleCorridor is also important for Central Asian countries, includingthe Kyrgyz Republic, as a mechanism or channel through which theycan export their own products. For that, of course, such countriesneed to produce exportable goods, in turn encouraging morediversified production," she said.
Sabyrova pointed out that developing the Middle Corridor is notjust about building roads, ports, or railway links, but combininghard infrastructure with soft infrastructure to ensure that themovement of goods and people across the borders is smooth andeasy.
Sabyrova cited that Azerbaijan and Georgia are now workingtowards potential joint border crossing points.
"Actually, there are several ADB projects upgrading bordercrossing points. ADB is now looking at developing a joint bordercrossing point, where procedures for clearance from bothAzerbaijani and Georgian sides can be done once and border crossingwill be seamless. This can save a lot of time and effort fortraders and business operators traveling between Azerbaijan andGeorgia. It can be a very efficient system. We have tested thisapproach through a technical assistance introducing a joint customsmanifest between China and Mongolia.
Another good example is our work in the Almaty-Bishkek EconomicCorridor. We are working on the new border crossing point betweenKazakhstan and the Kyrgyz Republic. I wanted to emphasize that hardand soft infrastructure development must go together. Because evenwith a perfect road or border infrastructure, if the procedures arecumbersome, it may take long hours for people or cars to cross aborder, which will be inconvenient and costly," she explained.
Sabyrova also talked about the CAREC Corridor PerformanceMeasurement and Monitoring mechanism.
"It's a long-term database where we collect actual data andmeasure how long it takes and how much it costs to cross a border regularly monitor whether there are improvements for movement ofgoods along the corridors. While there are notable improvements,there are routes that remain problematic. We are working with theprivate sector a lot, and with governments also to identify how wecan address these bottlenecks.
Involving all stakeholders and country ownership along theMiddle Corridor are crucial. If five Central Asian plus SouthCaucasus countries sit down with relevant international financeinstitutions, that is a good step. In ADB, we are very ready tosupport the initiative.
The Middle Corridor is a challenging route. It's a multi-modalcorridor combining roads, railways, maritime, and ports. It remainsexpensive due to the bottlenecks I mentioned and relatively lowtraffic volumes. We need to generate economic activities and tradealong the corridor, and that entails competition policy,diversifying the economy, and facilitating the overall economicgrowth of countries along the corridor," she said.
Supporting the Kyrgyz Republic's participationin CAREC
Lyaziza Sabyrova noted that the Kyrgyz Republic is a very important member of the CAREC Program.
"The Kyrgyz Republic is the next chair of the CAREC Program for2025. For Kyrgyz Republic, regional cooperation is very important,because it's a relatively small economy with a small population. Toget access to wider regional markets, Kyrgyz Republic shouldutilize any opportunity to expand, to connect to other countries,other consumers, and to attract investments. It's very good thatthey are actively participating in the CAREC Program.
We do quite a lot for transport connectivity, with substantialinvestments in the transport sector. We also have energyinvestments. We are working closely with the government and otherdevelopment partners to understand what the needs are, including onthe mega project Kambarata-1. The project is of interest tointernational finance institutions for various reasons. First, it'sa hydro project promoting renewable energy, it will help to movetowards a greener economy, to reduce carbon emissions, Second, it'sa regional project: investing in this project will provide anelectricity market for three CAREC members, particularly,Kazakhstan, the Kyrgyz Republic, and Uzbekistan", she added.
Sabyrova pointed out that the Kyrgyz Republic activelyparticipates in trade facilitation measures to harmonize variousprocedures, including sanitary and phytosanitary measures withinthe CAREC Program.
"We're also working on agriculture and water resources, andeducation and labor skills, which are also very important for theKyrgyz Republic. We are looking forward to developing further ourconnections and links under the CAREC Program," she added.
Technical assistance to Turkmenistan
She noted that Turkmenistan is another important country forADB.
"For Turkmenistan, connectivity is very important, and thepotential for this country is huge. We are also talking abouthealth and needs in the social sector. Should the government beready or interested in working with ADB to borrow for this type ofneeds, ADB is ready to provide investments.
We are also supporting Turkmenistan in preparing for itsaccession to the World Trade Organization which is important tolink the country with the global economy. We also provided fewgrants for regional technical assistance, because they are part ofthe CAREC Program. Whenever we have any events related toagriculture, energy, transport, or trade, we always invite Turkmenofficials. Last year, ADB enabled the sharing of experiencesbetween Uzbekistan and Turkmenistan on energy issues," sheexplained.
Supporting Uzbekistan's energysustainability
She stated that ADB is now preparing a new Country PartnershipStrategy for Uzbekistan.
"We hope it will be approved this year. This is a five-yearstrategy until 2028. The strategy aligns with the governmentpriorities of Uzbekistan. It puts great focus on green transition's government is very serious about green transition, asthey understand its importance. They understand that they need tomake good investments in green transition and formulate goodpolicies. For now, the preparation of the Country PartnershipStrategy is still ongoing. But the few emerging areas where we willbe providing support for the next five years are precisely greentransition, private sector development, human capital development,and competitiveness of the private sector," she said.
Sabyrova went on to add that gas is a major product ofUzbekistan.
"We are also looking at it regionally. Because whenever we talkabout energy security, it's always a regional matter. In the past,we invested quite a lot in the energy sector of Uzbekistan. One ofthem is the Talimarjan power station project, which has beencompleted and had good results, including a reduction in carbonemissions. Uzbekistan is the second largest borrower in ADB'sCentral and West Asia Department," she concluded.
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