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Proposed CAREC Transport Sector Strategy Proposed CAREC Transport Sector Strategy Executive Summary For information at the 6th Ministerial Conference on Central Asia Regional Economic Cooperation 2-3 November 2007 Dushanbe, Tajikistan The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB) or its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. ABBREVIATIONS ADB Asian Development Bank ADDY Azerbaijan Devlot Demir Yollari (Azerbaijan National Railways) AFG Afghanistan AP Action Plan ATC Air Traffic Controller AusAID Australian Agency for International Development AZB Azerbaijan BOMCA Border Management Central Asia (EU and UNDP) CA Central Asia CAREC Central Asia Regional Economic Cooperation CR China Railway DFID Department for International Development (United Kingdom) EBRD European Bank for Reconstruction and Development EU European Union EURASEC Eurasian Economic Community FSU Former Soviet Union GDP gross domestic product GMS Greater Mekong Subregion GVC global value chain HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome ICAO International Civil Aviation Organization IsDB Islamic Development Bank IMF International Monetary Fund INR Iranian National Railway IOM International Organization for Migration ITS intelligent transport system JICA Japan International Cooperation Agency KAZ Kazakhstan KTZ Kazakhstan Temir Zholy KGZ Kyrgyz Republic MC Ministerial Conference (CAREC) MI multilateral institution MON Mongolia MOTC Ministry of Transport and Communications MTZ Mongolian Railway NAFTA North American Free Trade Agreement OSCE Organization for Security and Cooperation in Europe PCs participating countries PRC People’s Republic of China RF Russian Federation RFID radio frequency identification SCO the Shanghai Cooperation Organization SIDA Swedish International Development Agency SOM Senior Officials Meeting (CAREC) SPECA Special Programme for the Economies of Central Asia TAJ Tajikistan TRASECA Transport Corridor Europe-Caucasus-Central Asia TSCC Transport Sector Coordinating Committee (CAREC) TSS transport sector strategy TSSS transport sector strategy study UNAIDS Joint United Nations Programme on HIV/AIDS UNDP United Nations Development Program UN ESCAP United Nations Economic and Social Commission for Asia and the Pacific UNICEF United Nations Children’s Fund UNODC United Nations Office on Drugs and Crime USAID United States Agency for International Development USCDC United States Centers for Disease Control USD United States Dollars UZB Uzbekistan WB World Bank WCO World Customs Organization (United Nations) WHO World Health Organization WTO World Trade Organization XUAR Xinjiang Uygur Autonomous Region TABLE OF CONTENTS SECTION 1: INTRODUCTION ..................................................................................................... 1 1.1 GENESIS OF CAREC........................................................................................................ 1 1.2 OVERALL VISION ............................................................................................................. 1 1.3 THE ECONOMIC AND SOCIAL POLICY CONTEXT ......................................................... 2 SECTION 2: EXPLOITING THE OPPORTUNITIES..................................................................... 5 2.1 CONFRONTING THE TRADE AND TRANSPORT CHALLENGES ................................... 5 2.2 A BROAD WELL-FOUNDED APPROACH......................................................................... 6 SECTION 3: CAREC TRANSPORT SECTOR STRATEGY 2008-2018....................................... 7 3.1 ORIGINS AND OVERARCHING GOALS........................................................................... 7 3.2 COMPETITIVE TRANSPORT CORRIDORS..................................................................... 7 3.2.1 Focused Development ................................................................................................ 7 3.2.2 Corridor Performance Parameters .............................................................................. 7 3.2.3 Competition and Efficient Use of Funds ...................................................................... 8 3.2.4 Technology .................................................................................................................. 9 3.3 TRANSPORT ACROSS BORDERS .................................................................................. 9 3.3.1 Present CAREC Action Plan ....................................................................................... 9 3.3.2 Border Crossing Points and Procedures ..................................................................... 9 3.3.3 Harmonized Technical Regulations ........................................................................... 10 3.3.4 Institutional Coordination........................................................................................... 10 3.4 PEOPLE FRIENDLY TRANSPORT ................................................................................. 10 3.5 OUTCOMES .....................................................................................................................11 SECTION 4: ACTION PLANS .................................................................................................... 13 4.1 RATIONALE..................................................................................................................... 13 4.2 LINKAGES TO REGIONAL AND GLOBAL TRADE.......................................................... 13 4.2.1 Major Transit Directions............................................................................................. 13 4.2.2 Corridor Characteristics............................................................................................. 14 4.2.3 The Six Major CAREC Corridors............................................................................... 17 4.2.4 Project Development Rationale................................................................................. 20 4.3 SEAMLESS CROSS BORDER OPERATIONS................................................................ 22 4.3.1 Continuity with the CAREC Road Map...................................................................... 22 4.3.2 Institutional Interfaces............................................................................................... 22 4.3.3 International Conventions, Regional Agreements and Regulations .......................... 22 4.3.4 Border Crossing Point Improvements ....................................................................... 23 4.3.5 Rail Operations.......................................................................................................... 23 4.3.6 Micro-financing of Transport Equipment.................................................................... 24 4.4 AIR AND MARITIME TRANSPORT ................................................................................. 24 4.5 TECHNOLOGY AND GLOBAL LOGISTIC CHAINS ........................................................ 24 4.6 SAFEGUARDS ................................................................................................................ 25 4.7 IDENTIFICATION OF PROJECTS................................................................................... 25 SECTION 5: NEXT STEPS......................................................................................................... 27 5.1 DISCUSSION, DETAILED REFINEMENT AND DEVELOPMENT, APPROVAL............... 27 5.2 REALIZATION: THE ROLE OF GOVERNMENTS, MULTILATERAL INSTITUTIONS, AND THE PRIVATE SECTOR.......................................................................................... 27 ANNEX 1: TSS RESULTS FRAMEWORK ANNEX 2: CORRIDOR MAPS AND PROFILES 1 SECTION 1: INTRODUCTION 1. This Executive Summary provides a decennial transport sector strategy (TSS) for discussion purposes at the Central Asia Regional Economic Cooperation (CAREC) Ministers’ Conference (MC) in Dushanbe, Tajikistan on 2-3 November 2007. It follows the Draft Final Report on CAREC TSS, which was reviewed at the Transport Sector Coordinating Committee (TSCC) Consultation Meeting and the Senior Officials’ Meeting (SOM) held in Manila on 6 September 2007 and 8-9 September 2007, respectively. The Draft Final Report (i) describes the challenges facing the transport sector in the CAREC region; (ii) proposes principal transport corridors crossing the region; and (iii) provides some indication on the approach and measures to respond to the sector’s challenges. All comments, suggestions and other inputs provided by Participating Countries (PCs) have been taken into account in preparing the TSS. 2. The Executive Summary and the more detailed Main Report formulate a TSS for CAREC. An essential part of the strategy addresses problems at border crossings. In this sense, the Strategy aims at facilitating transport and trade. It leads towards much closer integration of CAREC’s trade and the transport sector initiatives. Specific measures to strengthen this union are included in the strategy. 1.1 GENESIS OF CAREC 3. It has now been a decade since the launch in 1997, of the CAREC Program –a striking example of institutional innovation. CAREC is a vibrant development partnership of a number of Central Asian (CA) Countries: Afghanistan, Azerbaijan, People’s
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