Central Asia:Central Asia:

Cooperation in Transport Cooperation in Transport Sector Sector

Nigel C. Rayner, Nigel C. Rayner,

Director, ECTCDirector, ECTC

ADBADB

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The RegionThe Region

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The IFIsThe IFIs• Involved since 1994, Involved since 1994,

• AZE, KAZ, KGZ, TAJ, TKM, UZBAZE, KAZ, KGZ, TAJ, TKM, UZB

• Lending-ADB, WB, EBRD, IsDB, Kfd, Lending-ADB, WB, EBRD, IsDB, Kfd, SfdSfd

• Non Lending-ADB, WB, EBRD, IsDB, Non Lending-ADB, WB, EBRD, IsDB, EU, and UNDPEU, and UNDP

• ADB-Road, Rail, and AirADB-Road, Rail, and Air

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The State of InfrastructureThe State of Infrastructure

Road:Road:

• 66,000 km of roads, 29,000 for regional traffic66,000 km of roads, 29,000 for regional traffic

• Lack of maintenance, Obsolete vehicle design, high operating Lack of maintenance, Obsolete vehicle design, high operating costscosts

• Low maintenance budgets, low fuel and road user charges.Low maintenance budgets, low fuel and road user charges.

Priority: Rehabilitation of the regional road networkPriority: Rehabilitation of the regional road network

RailRail

• 22,100 km mainline, 5,000 double track and 4,000 electrified22,100 km mainline, 5,000 double track and 4,000 electrified

• Track condition not goodTrack condition not good

• Old rolling stock and lack of spare partsOld rolling stock and lack of spare parts

Priority: Rehabilitate the regional rail networkPriority: Rehabilitate the regional rail network

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Sector IssuesSector IssuesRoadRoad

• Lack of regional networkLack of regional network

• Lack of institutional arrangementsLack of institutional arrangements

• Lack of unified regulations and policiesLack of unified regulations and policies

• Lack of regulatory frameworkLack of regulatory framework

• Inadequate maintenance and funding systemInadequate maintenance and funding system

• Ineffective processing systemsIneffective processing systems

• Lack of flourishing private sectorLack of flourishing private sector

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Sector Issues Sector Issues RailRail Lack of regional solidarity Lack of regional solidarity

Monolithic and monopolistic nature of the Monolithic and monopolistic nature of the organisationsorganisations

Discretionary tariff setting, with significant cross-Discretionary tariff setting, with significant cross-subsidies, often discouraging use of rail freight by subsidies, often discouraging use of rail freight by private shippersprivate shippers

Obsolete and poor quality of technology Obsolete and poor quality of technology

Lack of well developed marketing orientationLack of well developed marketing orientation

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Central Asia Regional Central Asia Regional Economic Cooperation Economic Cooperation • 11stst Senior Official Meeting–Aug 2001 Senior Official Meeting–Aug 2001

• 11stst Ministerial Conference – Mar 2002 Ministerial Conference – Mar 2002

• Regional Preparatory Meeting – Sept Regional Preparatory Meeting – Sept 20032003

• 22ndnd Ministerial Conference-Nov 2003 Ministerial Conference-Nov 2003

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Output of the Second Output of the Second Ministerial ConferenceMinisterial Conference

• Delegations endorsed the approach and general Delegations endorsed the approach and general thrust of the Transport sector note.thrust of the Transport sector note.

• Endorsed the following Strategic PrioritiesEndorsed the following Strategic Priorities

development of regional transport corridorsdevelopment of regional transport corridors

harmonisation of the regulatory frameworkharmonisation of the regulatory framework

improving border controlsimproving border controls

focussed restructuring and modernisationfocussed restructuring and modernisation

marketing and tariff setting based on marketing and tariff setting based on competitioncompetition

improving financing and managementimproving financing and management

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Major AchievementsMajor Achievements• Almaty-Astana-ADB/WB/IsDB/Sfd/AdfdAlmaty-Astana-ADB/WB/IsDB/Sfd/Adfd

• Almaty-Bishkek-ADB/EBRDAlmaty-Bishkek-ADB/EBRD

• Bishkek-Osh-ADBBishkek-Osh-ADB

• North-South Corridor-WB/IsDB/KfdNorth-South Corridor-WB/IsDB/Kfd

• Dushanbe-Kulyab-PRC-ADB/IsDBDushanbe-Kulyab-PRC-ADB/IsDB

• Aktau-Atyrau-ADB/EBRDAktau-Atyrau-ADB/EBRD

• Chengledy-Khodhajavlet (rail) Chengledy-Khodhajavlet (rail) –ADB/OPEC –ADB/OPEC

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Non-lendingNon-lending• ADB, WB, EBRD, EU, UNDP, IsDBADB, WB, EBRD, EU, UNDP, IsDB

• Regional StudiesRegional Studies

• Feasibility StudiesFeasibility Studies

• Institutional and RestructuringInstitutional and Restructuring

• Capacity Building and TrainingCapacity Building and Training

• Improving Financing and Improving Financing and Management/MarketingManagement/Marketing

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Lending-Pipeline (ADB)Lending-Pipeline (ADB)• 10 loans- $300million (2003-2006)10 loans- $300million (2003-2006)

• Dushanbe-Kyrgyz for link to Osh-Sarytash-Dushanbe-Kyrgyz for link to Osh-Sarytash-Irkestam-$35M-TAJ,$25M-KGZIrkestam-$35M-TAJ,$25M-KGZ

• Aktau-Atyrau - $55 millionAktau-Atyrau - $55 million

• Borvoe-Petropavlovsk - $40 millionBorvoe-Petropavlovsk - $40 million

• North-South Corridor Project(AZE)-$18 North-South Corridor Project(AZE)-$18 millionmillion

• PRC-MON -$37.5 millionPRC-MON -$37.5 million

• UZB –AFG railway link - $20 million UZB –AFG railway link - $20 million

• Bekhabad-Khanebadam Rly link -$20 millionBekhabad-Khanebadam Rly link -$20 million

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Non-Lending pipeline Non-Lending pipeline (ADB)(ADB)

• 13 TAs - $6 million13 TAs - $6 million

• Kazakhstan transport sector studyKazakhstan transport sector study

• Uzbekistan transport sector studyUzbekistan transport sector study

• Regional traffic enhancement studyRegional traffic enhancement study

• Policy reforms in transport sectorPolicy reforms in transport sector

• Regional road development Phase IRegional road development Phase I

• Harmonization of Cross border initiatives Harmonization of Cross border initiatives for transport sectorfor transport sector

• Regional railway development Phase IRegional railway development Phase I

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