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A Rod Map for Shymkent–Tashkent–Khujand Economic Corridor

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A Rod Map for Shymkent–Tashkent–Khujand Economic Corridor A Road Map for Shymkent–Tashkent–Khujand Economic Corridor Development Economic corridor development (ECD) is pursued by developing member countries of the Asian Development Bank to spur economic growth. In Central Asia, ECD is being piloted as potential is immense but remains largely untapped. This publication provides a road map for developing the Shymkent–Tashkent–Khujand Economic Corridor (STKEC) connecting Kazakhstan, Tajikistan, and Uzbekistan. It proposes specific action plans for six intertwined thematic areas. An institutional framework to operationalize the STKEC development is also presented, along with possible investment projects in bordering cities and oblasts of the three countries. About the Central Asia Regional Economic Cooperation Program The Central Asia Regional Economic Cooperation (CAREC) Program is a partnership of 11 member countries and development partners working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction. It is guided by the overarching vision of “Good Neighbors, Good Partners, and Good Prospects.” CAREC countries include: Afghanistan, Azerbaijan, the People’s Republic of China, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while A ROAD MAP FOR sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. SHYMKENT–TASHKENT– KHUJAND ECONOMIC CORRIDOR DEVELOPMENT JANUARY 2021 CAREC Secretariat www.carecprogram.org ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org A ROAD MAP FOR SHYMKENT–TASHKENT– KHUJAND ECONOMIC CORRIDOR DEVELOPMENT JANUARY 2021 Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2021 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2021. ISBN 978-92-9262-677-8 (print), 978-92-9262-678-5 (electronic); 978-92-9262-679-2 (ebook) Publication Stock No. TCS210013-2 DOI: http://dx.doi.org/10.22617/TCS210013-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this publication, “$” refers to United States dollars. ADB recognizes “China” as the People’s Republic of China. Cover design by Principe Nicdao. On the cover: Features representing main sectors and areas (transport connectivity, agriculture value chain, sanitary and phytosanitary measures, tourism) for the Shymkent-Tashkent-Khujand Economic Corridor development (photos from the ADB Photo Library). Contents Tables, Figures, and Boxes iv Acknowledgments vi Abbreviations viii 1 Introduction 1 2 International Experience in Developing Transnational Economic Corridors 3 2.1 Greater Mekong Subregion Economic Corridors 4 2.2 Almaty–Bishkek Economic Corridor 5 2.3 Maputo Development Corridor 6 2.4 Oresund Region 6 2.5 Cascadia Innovation Corridor 7 2.6 Challenges in Developing Transnational Economic Corridors 8 2.7 Lessons for Shymkent–Tashkent–Khujand Economic Corridor Development 9 3 Geographic Focus of Shymkent–Tashkent–Khujand Economic Corridor Development 10 4 Thematic Focus Areas 18 4.1 Improvement of Road and Railway Transport Connectivity 18 4.2 Modernization of Border Crossing Points and Border Management 25 4.3 Development of Horticulture Value Chains 32 4.4 Modernization of Sanitary and Phytosanitary Measures and Development 36 of Food Quality Certification Services 4.5 Development of Regional Tourism 42 4.6 Development of Special Economic Zones and Industrial Zones 54 5 Expected Results 61 6 Implementation Arrangements 65 Appendix: Possible Projects 67 iii Tables, Figures, and Boxes Tables 1 Population of STKEC Region, as of end of 2018 12 2 Growth Rates of Real Gross Regional Product of Cities and Oblasts in STKEC Region, 2014–2018 13 3 Nominal Gross Regional Product and Density of Economic Activity in STKEC Region, 2018 13 4 Intraregional Merchandise Trade in the STKEC Region, 2015 and 2018 15 5 Load Limits for Selected Types of Truck Axles in Kazakhstan and Uzbekistan, as of 1 January 2020 21 6 Border Crossing Points between Turkestan and Tashkent Oblasts 25 7 Border Crossing Points between Tashkent and Sugd Oblasts 25 8 Border Agencies in STKEC Countries 29 9 Net Imports of Selected Horticulture Products by the People’s Republic of China, Germany, 33 Russian Federation, and United Arab Emirates, 2018 10 Yield of Selected Crops in Kazakhstan, Tajikistan, Uzbekistan, 34 and Comparator Countries, 2018 11 STKEC Countries—International Visitor Arrivals by Country of Origin, 2014–2018 42 12 STKEC Countries—Top 10 Origin Countries of International Visitor Arrivals, 2018 43 13 Visa Entry Requirements in STKEC for Top 10 Inbound Countries, 2019 45 14 Tourist Satisfaction Review of Shymkent, Tashkent, and Khujand Cities, 2019 46 15 Major Tourist Attractions and Tourism Products in the STKEC Region 48 16 Multicountry Tour Programs Offered from Europe to STKEC Countries 49 17 Planned and Proposed Actions to Develop Regional Tourism 53 18 Performance of Selected Special Economic Zones in Kazakhstan: Selected Indicators, 2016 57 19 Performance of Free Economic Zones in Tajikistan: Selected Indicators, 2019 57 20 Population of STKEC Region, 2018, 2025, and 2030 (by end of the year) 61 21 Average Cost and Average Time Needed for Clearing Selected STKEC Border Crossing Points 62 for Freight Traffic, 2019, 2025, and 2030 22 Intraregional Merchandise Trade in STKEC Region, 2018, 2025, and 2030 62 23 Shymkent and Tashkent Cities and Turkestan and Tashkent Oblasts—International Visitor Arrivals, 63 2018, 2025, and 2030 24 Average Annual Growth Rate of Gross Regional Product of Shymkent and Tashkent Cities 63 and Turkestan, Tashkent, and Sugd Oblasts, Selected Periods 25 Share of Selected Sectors in Gross Regional Product of Shymkent and Tashkent Cities 64 and Turkestan, Tashkent, and Sugd Oblasts, 2018, 2025, and 2030 B.1 Tajikistan: Exports, Imports, and Transit Trade through Border Crossing Points between Sugd 26 and Tashkent Oblasts, 2018 B.2 Movement of People through Border Crossing Points between Sugd and Tashkent Oblasts, 2018 26 B.3 Tajikistan: Movement of Goods, Vehicles, and People through Road Border Crossing Points 27 between Sugd and Tashkent Oblasts, 2006–2009 iv Tables, Figures, and Boxes v Figures 1 Greater Mekong Subregion Economic Corridors 4 2 Almaty–Bishkek Economic Corridor 5 3 Geographic Focus of STKEC Development 10 4 STKEC Region and the Central Asia Regional Economic Cooperation Corridors 11 5 Composition of Gross Regional Product of Shymkent and Tashkent Cities and Turkestan, Tashkent, 14 and Sugd Oblasts, 2018 6 Composition of Cross-Border Trade within STKEC Region, 2018 15 7 Share of Bekabad–Nau Railway in Value of Sugd Oblast’s Merchandise Exports and Imports, 2018 23 8 Special Economic Zones in the STKEC Region 55 9 Institutional Setup for STKEC Development 65 Boxes 1 Importance of the Border Crossing Points between Sugd and Tashkent Oblasts for Tajikistan 26 2 Joint Customs Control at Border Crossing Points between the People’s Republic of China 30 and Mongolia 3 The World Trade Organization Sanitary and Phytosanitary Measures Agreement 37 4 Greater Mekong Subregion Tourism Marketing Strategy and Action Plan, 2015–2020 44 5 ASEAN Community-Based Tourism Standard 47 6 European Association of Mountain Areas (Euromontana) 50 7 Classic Baltic Group Tour: Lithuania, Latvia, and Estonia
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