Traceca Inter-Governmental Joint Committee for Implementation of a Basic Agreement Project Inception Report March 5, 2001

Traceca Intergovernmental Joint Committee Inception Report

REPORT COVER PAGE

Project Title TRACECA – Inter-Governmental Joint Committee For Implementation of a Basic Agreement TNREG 9803_Ext

Project Number 00-0251.00

Countries Armenia, , Bulgaria, , Kazakhstan, Kyrghyzstan, Moldova, Romania, Tadjikistan, Turkey, Ukraine, Uzbekistan

Local operator EC-Consultant Name National Secretaries AXIS & ASSOCIES Address 24-26 rue du Cotentin 75015 Paris France

Tel.number (+33-1) 40 64 73 71 Fax number ( +33-1) 40 47 08 69 e-mail number [email protected] Contact person Alain LENAUD Jean Louis ROMANINI Signatures

Date of Report: March 5, 2000 Reporting Period January 25, 2001 – February 28, 2001 Author of Report: Jean Louis ROMANINI

EC Co-ordinating unit (Name) (Signature) (Date)

EC Delegation (Name) (Signature) (Date)

Tacis Bureau Daniel STROOBANTS (Task Manager) (Name) (Signature) (Date)

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LOCAL COUNTERPARTS

IGC - TRACECA

Name : Merab ADEISHVILI Chairman of IGC - TRACECA Minister of Transport of Georgia Address : Ministry of Transport Kazbegi av, Tel.number Fax number e.mail : Contact person

Signature ______

PERMANENT SECRETARIAT OF THE IGC-TRACECA

Name : Zviad KVATCHANTIRADZE Secretary General of “IGC TRACECA” Address : 37000 8/2, Aliyarbekov str.

Tel.number (99412) 982718 Fax number (99412) 982718 e.mail : [email protected] Contact person

Signature ______

PERMANENT SECRETARIAT OF THE IGC-TRACECA

Name : Ikrom NAZAROV Deputy Secretary General of “IGC TRACECA” Address : 370000, 8/2, Aliyarbekov str. BAKU

Tel.number (99412) 936485 Fax number (99412) 936485 e.mail : [email protected] Contact person

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Armenia

Name : Gagik GRIGORYAN – National Secretary Address : Ministry of Transport and Communication 375010 28, Nalbadyan str. P.O.Box 69 YEREVAN Tel.number (3741) 523862 – (3741) 561859 Fax number (3749) 606968 – (3741) 151446 e.mail : [email protected] Contact person

Signature ______

Azerbaijan

Name : Rafik ZEYNALOV – National Secretary Address : 370000, 8/2, Aliyarbekov str. BAKU

Tel.number (99412) 982718 Fax number (99412) 982718 e.mail : [email protected] Contact person

Signature ______

Bulgaria

Name : Radoslav ATANASOV – National Secretary Address : Ministry of Transport and Communication 9, Levski str 1000 SOFIA

Tel.number (3592) 9409424- (3592) 9409423 Fax number (3592) 9874942 e.mail : [email protected] Contact person

Signature ______

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Georgia

Name : Vadim TURDZELADZE – National Secretary Address : Ministry of Transport and Communication 12, Rustaveli av., TBILISI Tel.number (99532) 250563 Fax number (99532) 941765 e.mail [email protected] Contact person

Signature ______

Kazakhstan

Name : Yerzhan SULEIMENOV – National Secretary Address : Ministry of Transport and Communication 473000, 49 Abay Ave, apt. 328. ASTANA

Tel.number 7(3172) 328639 Fax number 7(3172) 328639 e-mail [email protected]; [email protected] Contact person

Signature ______

Kyrgyzstan

Name : Suleyman ZAKIROV – National Secretary Address : Ministry of Transport and Communication BISHKEK 42, Isanov str.

Tel.number Home :(966312) 650741 – work : (966312) 221263 Fax number (966312) 661968 e.mail : Contact person

Signature ______

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Moldova

Name : Veacheslav UNTILA – National Secretary Address : Ministry of Transport and Com CHISINAU 2018, 34, Stephan Sel Mare str

Tel.number (3732)-213981 ; (3739) 142130 (mob.) Fax number (3732)-213981 e-mail : [email protected] ; [email protected] Contact person

Signature ______

Romania

Name : Dan CAPATINA – National Secretary Address : Ro- 71201, BUCHAREST ROMANIA 1, Piata Victorie

Tel.number (401) 2229375 Fax number (401) 3121782 e.mail [email protected] Contact person

Signature ______

Tajikistan

Name : Solih MUMINOV- National Secretary Address : Ministry of Transport and Road Economy 80 Rudaki Ave, DUSHANBE

Tel.number (992372) 211967 – (992372) 377310 Fax number (992372) 211967 e.mail [email protected] – mtdh@tajiknet Contact person

Signature ______

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Turkey

Name : Akhmet BALCI- National Secretary Address : Mustesal Yardimcisi, Ulastirma Bakanligi, ANKARA

Tel.number (90312) 2124496 Fax number (90312) 2129797 e.mail [email protected] Contact person

Signature ______

Ukraine

Name : Yuriy TERTYSHNIK – National Secretary Address : Ministry of Transport 7/9, Schors str. KIEV

Tel. number (38044) 2681374 ; (38044) 2024112 (mob.) Fax number (38044) 2692321 e-mail [email protected] Contact person

Signature ______

Uzbekistan

Name : Sabirdzhan ABDURAKHMANOV- National Secretary Address : House of Government, Mustakillik Ave. TASHKENT

Tel. number (99871) 1398094 Fax number (99871) 1398121 e-mail Contact person

Signature ______

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TABLE OF CONTENTS

1 Project Synopsis______10 1.1 Overall Objectives______10 1.2 Specific Objectives ______10 1.3 Planned Outputs ______10 1.4 Activities ______11 1.5 Target Groups :______11

2 Analysis of Project ______12 2.1 Start situation ______12 2.1.1 Project context :______12 2.1.2 Main problems ______14 2.1.3 Situation of local counterparts______15 2.2 Differences from the Terms of Reference______16 2.2.1 Turkmenistan______16 2.2.2 Agenda of visits to National Commissions ______16 2.3 Suggestions from the Consultant______16 2.3.1 Deputy Secretary General / Senior Expert ______16 2.3.2 Finances / Sustainability ______16 2.3.3 Local experts ______16 2.3.4 Visits to National Secretaries-Commissions / short term western experts ______17 2.3.5 Improvements of the Traceca website (Traceca reports)______17

3 Project planning______18 3.1 Relation / co-ordination with other projects______18 3.1.1 Present project :______18 3.1.2 New Traceca projects ______19 3.2 Project goals and objectives ______19 3.3 Project approach______20 3.3.1 General Approach ______20 3.3.2 Meetings ______20 3.3.3 Support of the Permanent Secretariat ______21 3.3.4 Finance ______21 3.3.5 Organisation at national level ______21 3.3.6 Renovation of the Baku building______21 3.3.7 Communication and web sites______22 3.3.8 Functional tasks______22 3.4 Intended Results / Outputs______23

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3.5 Planning for the whole duration of the project ______29 3.6 Planning for the next reporting period ______30

4 ANNEX ______31

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1 Project Synopsis

Project Title: TRACECA - Intergovernmental Joint Committee for Implementation of a Basic Agreement Project Number: 00-0251.00 / TNREG 9803_Ext Countries: Armenia, Azerbaijan, Bulgaria, Georgia , Moldova, Kazakhstan, Kyrgyzstan, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan Project Starting Date: January 25, 2001 Project Duration 12 months ———————————————————————————————————————————————

1.1 Overall Objectives To Increase the competitiveness of the Traceca corridor by improving the co-operation between Traceca partner states. To Define, in terms of contents and timing, a Technical Assistance Programme to be financed by the European Union (EU) 1.2 Specific Objectives

Support and assistance to the Permanent Secretariat in order to make it fully operational in 2001; Support of the Secretary General and the National Secretaries for the proper functioning of National Commissions in each partner state in order to speed up and improve implementation of the MLA. Organisation of Working Groups, Annual Meeting and specific Meetings. Maintenance and up-date of the TRACECA Website Management of the Special Fund Co-ordination of the TRACECA projects between beneficiaries, Permanent Secretariat, IFIs and local partners with particular emphasis on ensuring long term continuity and sustainability. 1.3 Planned Outputs

The MLA is ratified by the 2 remaining partner states, Kazakhstan and Turkey Rules of Procedures and Statutes are adjusted Working Procedures and Reporting Procedures are finalised Elected positions of the IGC-TRACECA are filled after a vote during the Annual Meeting The office of the Permanent Secretariat Baku is fully operational and properly staffed; its staff is trained National Commissions operate in co-operation with the Permanent Secretariat Working Groups decided by the IGC are in operation and meet on a regular basis The Annual Meeting is organised Both the TRACECA and the IGC-TRACECA web sites are hosted, maintained and up-dated The webmaster is trained The TRACECA traffic forecast data base is effectively transferred to the Secretariat; its results appear on the website

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A TRACECA technical library is set up and completed in Baku The Baku office building is renovated and the Permanent Secretariat properly equipped A “Quasi” Business Plan for the next three years is designed The selection process of Traceca projects is adapted Documents for new Traceca projects are produced including i) project fiches for new project propositions, ii) terms of reference, iii) reviews of projects, dissemination materials, discussion documents, iv) agendas and support documents for working group conferences, v) bi-annual reports Financing of investment proposals (as identified by TRACECA projects) by international financial institutions and commercial partners is stimulated 1.4 Activities

General Management of the project Management of the Special Fund Reporting to the Task Manager Review and comments on all reports issued by contractors Set up of an agenda of project events and milestones Renovation of the Baku office of the Permanent Secretariat Procurement of equipment to the Permanent Secretariat Preparation and Management of the Annual Meeting (Tashkent) Preparation and Management of Working Groups decided by the IGC-TRACECA Meetings with National Secretaries, attendance of meetings of the National Commissions and visits to the local counterparts of National Commissions Meetings with contractors and their local counterparts of all Traceca projects Hosting, maintenance and up-dating of the Traceca website and the IGC-Traceca website Training of the webmaster Collection of information and documents for the Traceca technical library Day to day assistance of the Permanent Secretariat Training of the staff of the Permanent Secretariat 1.5 Target Groups :

Cabinets of Ministers, Ministries of Transport, Ministries of Foreign Relations, Trade and Transport Associations, International Organisations

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2 Analysis of Project

2.1 Start situation

2.1.1 Project context :

2.1.1.1 Extension of a previous project This project is an extension of a contract N° 99.0201 “TRACECA-Intergovernmental Joint Committee for Implementation of a Basic Agreement” which was signed on December 16, 1999. The two main objectives stressed for the extension are : • support and assistance to the Permanent Secretariat in order to make it fully operational in 2001; this includes assistance to and training of the staff of the Secretariat in Baku. • support to the set up and proper functioning of National Commissions in each member state in order to speed up and improve implementation of the MLA.

2.1.1.2 The Basic Multi Lateral Agreement :

On September 7-8, 1998, delegations of 32 countries and 13 international organisations attend in Baku for the International TRACECA Conference. During this Conference, 12 countries:

Azerbaijan Republic Republic of Moldova Republic of Armenia Romania Republic of Bulgaria Republic of Tadjikistan Georgia Turkish Republic Republic of Kazakhstan Republic of Uzbekistan Kyrghystan Republic Ukraine signed a Multi-Lateral Agreement (MLA) on International Transport in the transport corridor Europe- Caucasus-Central Asia and four supplementary technical documents on customs, road, maritime and rail transport. It must be noted that Turkmenistan was not present in Baku. However, articles 14 provides that the basic Agreement is "open for accession of any state". This provision is clearly intended to make room for Turkmenistan, once this country will have considered the benefits it can get from its participation.

Ratification of the Basic Agreement : All but 2 partners states, have ratified the MLA : • Kazakhstan, which has not ratified it yet, started the process and the Prime Minister of Kazakhstan presented the MLA to the Assembly (Majilis) on February 7, 2001; ratification is expected to take place soon • Turkey repeatedly stated that ratification was under way and we could expect the situation to be normalised by the beginning of this year; if, however, it was not so, then the IGC-TRACECA would face a problem during its Annual Meeting as Turkey might not be allowed to vote.

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2.1.1.3 The Intergovernmental Commission (IGC-TRACECA) and its related bodies

2.1.1.3.1 Intergovernmental Commission It is provided for by article 8 of the MLA. It was set up during the Tbilisi Conference (10-11 march, 2000). The Conference adopted its Rules of Procedures and the Statutes of its Permanent Secretariat on the basis of consensus; it elected its first Chairman, Mr. Merab Adeishvili, Minister of Transport and Communications of Georgia, who will preside the IGC-TRACECA until the next Annual Meeting in Tashkent. The Secretary General and the Deputy Secretary General of the Permanent Secretariat were also elected during this Conference.

2.1.1.3.2 Permanent Secretariat

Registration : The Permanent Secretariat is provided for by article 9 of the MLA. Its statutes were adopted during the Tbilisi Conference; then the Permanent Secretariat was registered in Baku as a separate body according to the laws of Azerbaijan. Office building : The Government of Azerbaijan offered to host the Secretariat in a government owned building well located in the centre of the city of Baku. The European Union granted the funds necessary for the renovation of the building : renovation of the first floor schedules for 2000 is completed; renovation of the ground floor will be completed in early 2001. Staff : Based upon job descriptions made by the Consultant in 2000, staff was hired and partly trained. Adjustments were considered necessary by the end of the year 2000.

2.1.1.3.3 National Secretaries National Secretaries have two objectives : 1. the act as representatives of the Permanent Secretariat in their respective countries (as per article 9 of the MLA, paragraph 2) 2. they “carry out” the work expected from National Commissions and more specifically “the writing of discussion papers and commentaries” and the assemble “the views of participants at meetings”, (original Terms of Reference, chapter 4.1.4) All partner states have already appointed National Secretaries in 2000 :

Azerbaijan R. Zeynalov Moldova V. Untila Armenia G. Grigoryan Romania D. Capatina Bulgaria R. Atanasov Tajikistan T. Kurbanov Georgia V. Turdzeladze Turkey A. Balci Kazakhstan Y. Suleimenov Ukraine Y. Tertishnik Kyrgyzstan S. Zakirov Uzbekistan S. Abdurakhmanov

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2.1.1.3.4 National Commissions National Commissions are referred to in the original Terms of Reference endorsed by all partner states (paragraph 4.1.4 “Organisation at National Level”) The Commissions have been set up and started meeting except in 2 states : Kazakhstan and Turkey. For Kazakhstan and Turkey this is related to ratification problems, as lists of members have been prepared but the decree appointing them is still not signed.

2.1.1.4 Traceca projects : The European Commission and beneficiary states decided that future Traceca projects should be better managed with the assistance of a common body such as the IGC-TRACECA. Identification, selection, approval and co-ordination of new Traceca projects will therefore be handled in close co-operation with the IGC-TRACECA In most partner states, National Commissions are beneficiaries of all (or most) Traceca projects.

2.1.2 Main problems

2.1.2.1 Competitiveness of the Traceca route : The competitiveness of the Traceca route has been clearly established by previous projects; however fair competition or dumping practices from other routes, particularly from the Russian Railways, try to challenge this situation at all times. Quality of service and simplified procedures play a major role as freight forwarders tend to prefer longer but simpler routes (such as the north or south routes) just because it saves time and difficulties in transit. In this instance harmonisation (of rules and procedures) is the key word and the IGC-TRACECA can provide the proper framework to achieve it in close co-operation with new projects schedules to start in 2001.

2.1.2.2 Marketing of the Traceca route :

Traceca routes are used by numerous operators from numerous states; transport operators constitute a chain of service providers and none of them is powerful enough (and has the credibility) to effectively market the whole chain. Railways signed a Protocol in Baku during the December Working Group; according to this Protocol, application of 2000 tariff increases have been banned; this decision is the beginning of a co-ordinated pricing policy; it is clearly a first step towards a more effective marketing policy of the Traceca route. The IGC-TRACECA is set up to help design and support such common initiatives (as per articles 3 to 6 of the MLA).

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2.1.2.3 Selection and co-ordination of new Traceca projects The E.U. and the partner states decided that the whole process leading to the definition, selection and management of Traceca projects needed some up-dating and adaptation. In 2000, most countries decided that beneficiaries of Traceca projects would be the National Commissions. The whole process was adapted accordingly and adjustments will be implemented in 2001

2.1.2.4 Sustainability / Budget Though the matter was raised from the very beginning in 2000 (first Working Group / Baku / July 2000), no actual recommendation was ever approved on this subject. The present budget for the year 2001 is entirely based on the E.U. contribution and the E.U. let it known that its contribution for year 2002 was to be included in one of the new Traceca projects (Co(ordination). However, long term sustainability has not been clearly established so far.

2.1.3 Situation of local counterparts

2.1.3.1 National Commissions :

Functioning : They have been already set up in most states (see above); they consist mostly of high ranking officials, who are in a position to offer recommendations, discuss transit matters and make decisions regarding their own countries. Status of National Commissions : The existence of National Commissions result from the Terms of Reference only; would the IGC- TRACECA carry on for a few more years, then the status of National Commissions will have to be more clearly established

2.1.3.2 National Secretaries / status

National Secretaries are mentioned in the original Terms of Reference. In the MLA, reference is made to “representatives” of the Permanent Secretariat. The status of National Secretaries is not absolutely clear at the moment; however no practical difficulty ever resulted from this uncertainty. The Legal Working Group might wish to clarify this point.

2.1.3.3 Professional counterparts : As a rule, operators were not invited to join National Commissions. Co-operation between National Commissions and business circles in order to adapt new rules and procedures to the needs of traders and carriers is not clearly defined. Visits of the Consultant to National Commission will try to solve this problem.

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2.2 Differences from the Terms of Reference

As this is a project extension, adjustments were already made either in 2000 or in the new terms of reference and technical offer. However some minor problems still exist.

2.2.1 Turkmenistan Turkmenistan is eligible for Traceca projects and some of the new projects involve actually this country. However Turkmenistan is not signatory of the MLA yet; its participation would help solve this technical difficulty.

2.2.2 Agenda of visits to National Commissions

Meetings of National Commissions will take place between 2 Working groups in order to be more effective; this restricts the favourable period to a limited number of weeks. Besides, such visits will involve working sessions with National Secretaries as well as visits to operators and other counterparts and are expected to take about 4 days in average. As a result, the EU expert will not have enough time to visit all partner states as expected and will have to limit its involvement; part of the time allocated for this task will be wasted unless the participation of other western experts is allowed (see under 2.3.4)

2.3 Suggestions from the Consultant

At this point the Consultant wishes to make a limited list of recommendations

2.3.1 Deputy Secretary General / Senior Expert

As stated in the final report of 2000, the Consultant finds that one Secretary General would manage the Permanent Secretariat properly and that a Deputy Secretary General is not needed. Instead, the Secretariat should count a “Senior Expert”; this senior expert should not be elected, as this always implies some “political” aspects, but selected on the basis of an established professional record.

2.3.2 Finances / Sustainability

According to the Rules of Procedures and the Statutes, the IGC-TRACECA is responsible for the budget of the Permanent Secretariat. This is theoretical at present as the budget is financed solely by a contribution from the European Union. The Consultant suggests that partner states agree on a minimal contribution from their side as soon as possible; this would send a strong message that all states are actively supporting the IGC- TRACECA – even with their own money. The Consultant is willing to make a proposal for setting this contribution at a fair level compatible with the economic importance and the resources of each individual partner.

2.3.3 Local experts

In 2001, the Permanent Secretariat will be fully operational and involved directly or indirectly in all present and future Traceca projects. It should be staffed with more local experts with experience in the following fields : Road, Rail and Maritime transport. Proper financing should be actively sought in order to face this new expense.

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2.3.4 Visits to National Secretaries-Commissions / short term western experts

In order to visit more countries and to spend more time with local counterparts the Consultant suggests to appoint one or two short term experts. These experts should have an established Traceca record and be familiar with the latest developments of Traceca projects. The time allocation of western expert planned in the present contract is compatible with this proposal. This (or these) expert(s) would also be able to attend the Annual Meeting and provide a stronger support to this event.

2.3.5 Improvements of the Traceca website (Traceca reports)

The architecture of the data base on Traceca reports is rather delicate and hard to master in full; this is due to historical (and financial) reasons that prevented the data base to be completely developed in the past. the Consultant suggests to In order to make up-date as well as access to Traceca reports more effective, the Consultant suggests to develop a small multi-criteria programme; this can be implemented within the time allocation of western expert time planned in the present project.

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3 Project planning

3.1 Relation / co-ordination with other projects

3.1.1 Present project :

The coordination of 5 TA projects launched under the previous coordination team assignment was continued:

1. Intermodal Services and Training ( Final report issued February 2001 ). 2. Intergovernmental Joint Commission for the Implementation of a Multilateral Agreement ( Extension signed January 2001 / Duration : 12 months). 3. International Road Transport Transit Facilitation ( Time extension of 15 months – Completion of the project : June 2002 ). 4. Traffic Forecasting and Feasibility Studies ( End of the project : August 2001 ) 5. Caucasian Road Sector ( Starting date : November 2000 / Duration : 12 months )

In collaboration with the consultants appointed by the EC for the coordination and supervision, continued support was given to 6 ongoing direct investment projects:

1. Design and construction of Rail ferry facilities in the Port of Poti. ( Certificate of Final Acceptance has been issued February 2001 ) 2. Improvement of the existing Rail Ferry terminal and Construction Facilities at the Port of Illiychevsk. ( Completion of the project is expected March 2001 ) 3. Establishment of a Cargo Movement Computer System and Supply of Computers and Communication Equipment for the Ports of Poti and Illiychevsk. ( Last Technical Adjustments will take place in March 2001 ) 4. Container Services between the Caspian Sea Ports of Baku and Turkmenbashi. ( Preliminary Certificate of Final Acceptance has been issued September 2001 ) 5. Rehabilitation of the Rail Ferry Terminal at the Port of Aktau ( On-going project / Starting date October 2000 / Completion of the project June 2001 ) 6. Caucasus Optical Fiber Project. ( On-going project / Starting date May 2000 / Completion of the project June 2002 )

In addition, the Evaluation Committee for the Project Central Asian Road Border Crossing and Road Feasibility Study will take place on Tuesday 13 March 2001.

Traceca traffic data base : A meeting was organised in Baku with the teams of both Consultants (AXIS and BCEOM) in presence of the General Secretary. A process has been agreed upon in order to tranfer extracts of the future data base to web sites. Further up-dating remains to be organised.

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3.1.2 New Traceca projects In accordance with the Working Group of Baku ( September 2000 ), the TRACECA program 2000 has been established and the 6 following projects ( 5 TA & 1 IP ) will be published first quarter 2001:

1.Harmonisation of Border Crossing Procedures. 2.Unified Policy on Transit Fees and Tariffs. 3.TRACECA Coordination Team. 4.Pre-feasibility Study of a New Rail Link between the Ferghana Valley, Bishkek and Kashgar in China. 5.Central Asia Railways Telecommunications. 6. Supply of Navigational Aid Equipment.

3.2 Project goals and objectives

The demise of the Co-ordination role leaves gaps in the management structure of the TRACECA programme:

- IGC Interfaces with IFI. Investment in the TRACECA corridor, even just sufficient to maintain existing infrastructure, can only be provided by the IFI. Communication with the IFI has been maintained mostly by the CT. The loss of these communication links is one of the most regrettable aspects of the demise of the co-ordination role. They have allowed very regular, full and informed discussions, in the field, on the problems faced in maintaining and developing the transport systems of the TRACECA states. Collaborative projects have been developed, requiring months of preparation. These understandings cannot be substituted by occasional encounters at conferences and visits to the banks and EC HQ.

- Interfaces between TRACECA projects and the counter-parts. The present process for the development of a project allows constant communication between the beneficiaries and the project development process, from the concept phase through to the Final Report, and even beyond. Prime responsibility for this contact lies with the CT up until the Inception Report phase, when the contracted consultant takes over. Actually the CT took prime responsibility again after the project ended, in realising any ongoing utility that the project output may have left. As examples of projects which would be extremely difficult to carry through without the co-ordination role, one may cite the Caucasus Fibre Optic Cable and Aktau Ferry Terminal.

If these gaps are acknowledged, then some remedies can be found. The tendency will be to pass everything on to the IGC. The TOR for this project are already fully loaded! Several other palliatives are:

- Orient the TRACECA programme to only carry out projects that have themes very closely linked to the TRACECA MLA and its institutional cross-border issues.

- Used Framework Contract for infrastructure feasibility studies. In addition some highly meritous IP which might be brought forward can be carried out within national TACIS programmes.

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- Adopt and amplify the role and the involvement of the Permanent Secretariat and National Secretaries in the implementation of the TRACECA projects.

- Maintain local representative staff in each TRACECA state. The role of the national secretaries for trade and transport issues, as foreseen in the IGC project is too administrative and focused on the MLA, relative to the interventions required to develop technical projects

3.3 Project approach

3.3.1 General Approach

A - Close co-operation with the Secretary General and the Deputy Secretary General : These are the key men. A good working relationship has already been established in the past. The Consultant will make all its efforts to build up this relationship.

B - Full support of National Secretariats : The IGC-TRACECA will be useful only if National Commissions produce good results and disseminate information and recommendations issued by the Permanent Secretariat. National Commissions are responsible for providing feedback to the permanent Secretariat and Working Groups. The Consultant will assist the National Secretaries during its numerous visits and by staying in touch at all times (e-mail, fax, telephone)

E - Tight liaisons with Brussels authorities managing the Traceca programme : The Consultant considers that the project will have a great influence on the relations with (and among)Traceca states; it will keep in close touch with Brussels authorities so that its actions stay in line with the consistent policy of the Traceca programme of the European Commission.

3.3.2 Meetings

3.3.2.1 Working Groups Four Working Groups are planned in 2001, one of them immediately before the Annual Meeting; the periods selected are as follows : weeks 12, 20-21, 28, 40 ,49 So far te Working Groups concern the Legal aspects and the Action Plan; more specialised Working Groups are expected to be set up particularly regarding Railways, Road and Transit operations as well as Customs. This will be organised in co-ordination with the relevant new Traceca projects.

3.3.2.2 Annual Meeting

According to the Rules of Procedures, Uzbekistan will chair the IGC-TRACECA this year; as a result the Annual Meeting will take place in Tashkent in late May/early June 2001.

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A draft agenda is being discussed with all concerned authorities; it will be adopted during the Varna Working group in late March.

3.3.3 Support of the Permanent Secretariat

3.3.3.1 auditing the staff The Consultant will regularly audit the staff of the Secretariat in order to make sure that this staff is employed according to plan and job descriptions provided earlier; results will be discussed with the General Secretary and possible adjustments recommended by the end of March 2001.

3.3.3.2 training the staff A training programme adapted to the local staff members will be set up by the Team leader in co- operation with the Secretary General; this will start in late March. Training sessions, whether in house or external, will be conducted on a regular monthly basis.

3.3.4 Finance

Special Fund : Due to administrative delays in Brussels, the contract was received by the Consultant in February only; the Consultant was granted a bank guarantee in a very short period of time; all formalities were completed in Brussels by the end of February and documents were processed by the financial department with no further delay. Money transfers from Brussels are expected to take place in March, hopefully soon enough to finance the Varna Working Group. Payments to Secretariats will be processed as soon as possible, with a two month delay though.

3.3.5 Organisation at national level

Visits to National Commissions will include attendance to their meetings, working sessions with the National Secretaries and visits to local counterparts. So far, 3 countries have been visited, as matter of urgency : Azerbaijan (seat of the Permanent Secretariat), Kazakhstan (for reviewing pending problems : signature of the Railways Protocol / Ratification ), Uzbekistan (preparation of the Annual Meeting). A visit programme will be established during the first Working Group.

3.3.6 Renovation of the Baku building

Refurbishing : work is expected to be completed by mid March in conformity with plans; in February, the building was officially “opened” by an E.U delegation and all speeches praised the quality of the renovation conducted by local contractors under the constant supervision of Mr. SHARIFOV, First Vice Prime Minister.

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3.3.7 Communication and web sites

At present the two sites (Traceca and IGC-Traceca) are hosted and operational. Up-date of the web sites : up dates will be prepared in Baku by the webmaster then transferred to the site under the supervision of the western expert on a regular basis. Traceca Reports : at present, the webmaster and the western expert are up-dating this part of the site; during the second semester, the western expert will develop and install the multi-criteria programme. Training of the webmaster : This will be organised on a quarterly basis : 10 day sessions in Baku each time; this training programme started already in February.

3.3.8 Functional tasks The specific objective of the Project is to support the IGC-TRACECA, the Permanent Secretariat and the National Commissions set up to administer and promote the Basic Agreement and its technical Annexes. Activities of the Permanent Secretariat is the key factor of the sustainability of the project. Particular attention and specific support have to be developed in order to improve efficiency and involvement of the Permanent Secretariat on the achievement of the project. In this way, assistance to the Permanent Secretariat will insure: - completion of the installation of the Permanent Secretariat. - organisation of specific training courses (management, International Conventions). - set-up of working procedures (reporting- Internal organisation). - set-up a necessary communication system between the parties.

New structure proposed for the permanent Secretariat :

- 1 Secretary General - 1 Senior Expert - 3 Transport Experts - 1 Office Manager - 2 Bi-lingual Secretaries - 1 Webmaster

The Functional tasks of the Permanent Secretariat are :

• Preparation of the agenda of Working Groups, conference room facilities, invitations and minutes for the annual meetings and any exceptional meetings. • Collection of views from National Commissions and preparation of discussion papers and commentaries for submission to the IGC, or to any other organisation, on behalf of the IGC. • To take appropriate action to modify or to develop Basic Agreement and annexes. • Follow-up of the competitiveness of the TRACECA corridor. • Follow-up of the TRACECA Projects linked to the MLA. • Preparation of the future TRACECA Projects. • Reporting to the relevant National bodies.

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3.4 Intended Results / Outputs

The intended results of the project appear on table 1.5 "Overall Output Performance Plan" overleaf. The Consultant wishes to stress that its main responsibility is to assist the IGC-TRACECA. Quite understandably, there is a certain confusion between the expected results of the works of the IGC- TRACECA and the expected results of the activities of the Consultant. The outputs described on the table are practical results that can be expected from the actions of the Consultant according to the Terms of Reference and adapted to the start situation. The main (non measurable) output will be to have an IGC-TRACECA effectively working and producing results such as : • recommendations on new regulations taken into consideration by state authorities, • proposals for improving the competitiveness of the Traceca route • proposals for marketing more effectively the Traceca route Comparatively, these major results depend more upon the actions of the beneficiaries than upon the activities of the Consultant however motivated its experts are.

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Traceca Intergovernmental Joint Committee Inception Report

Form 1.5 : OVERALL OUTPUT PERFORMANCE PLAN

Project title : TRACECA Intergovernmental Joint Commission Project number : TNREG9803_Ext Countries : Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Page Contract n° :00-0251.00 Kyrgyzstan, , Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan Planning period : from start to January 2002 (end) Prepared on : March, 5, 2001 EC Consultant : AXIS & associés, Paris, France

Outputs (to be described and target dates indicated) Agreed objective verifiable indicators Constraints and Assumptions

The MLA is ratified by the 2 remaining states Adoption by the Parliaments Kazakhstan : none (the process started already) Target date : Tashkent Annual Meeting (May 2001) Turkey : none expected

Rules of Procedures of the IGC-TRACECA and Statutes of the Adoption of up-dated texts by the Tashkent Annual Meeting Partner states are willing to discuss non urgent but fundamental Permanent Secretariat adjusted problems in terms of sustainability (possible matters : position of the Deputy Secretary General / senior experts / rules of attendance to Working Groups / financing and sustainability / status of National Commissions ) Target date : Tashkent Annual Meeting (May 2001)

Working Procedures and Reporting Procedures are finalised New working procedures : working procedures are agreed with Permanent Secretariat : a good working relationship is National Secretaries and the Permanent Secretariat including maintained between the Secretary General, its staff and the auditing procedures team of the Consultant New reporting procedures from National Secretaries to the National Secretaries : they accept to invest part of their time to Target date : after Varna Working Group (April 2001) Permanent Secretariat : weekly e-mail reporting / quarterly monitor information needs of all parties (their National reports institutions as well as the IGC-TRACECA)

Elected positions of the IGC-TRACECA are filled after a vote Election (on consensus) to the position of Secretary General Political inclinations do not interfere with the election during the Annual Meeting Election (on consensus) to the position of Deputy Secretary Effective candidates are selected Target date : Tashkent Annual Meeting (May 2001) General (unless this position is suppressed)

The office of the Permanent Secretariat is properly staffed (1) An appraisal of the staff is conducted showing that all staff The staff is motivated enough to adhere to the training correspond to job descriptions programme The staff is trained (2) A constant, on location, training programme is set up and Target dates : conducted in co-operation with the staff

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(1) : March / (2) : end of project

National Commissions operate effectively and co-ordinate their National Commissions organise regular meetings Local authorities should actually consider National Commission actions with the Permanent Secretariat as advisory bodies preparing discussion papers and draft Needs of transport operators and business circles are reviewed recommendations and taken into account So far, National Commissions are usually restricted to high Target date : after the first or second visits from the Consultant Meetings review problems raised by the IGC-TRACECA and government officials and are not opened to operators (except (mid 2001) adopt recommendations to be presented to Working Groups and state controlled operators) to the Annual Meeting

Working Groups decided by the IGC-TRACECA are in operation 4 Working Groups are organised (plus one immediately before National Secretaries might not have the ability and credibility to and meet on a regular basis the Annual Meeting) discuss freely pending questions without referring to their governments Working Groups are attended in full by all National Secretaries Governments might be involved in conflicting international Participants provide the requested information agreements, particularly regarding customs, Participants advertise the position of their respective states through working papers and draft recommendations

Effective recommendations are approved which up-date and Target date : permanent process complete the MLA

The Annual Meeting is organised The Annual Meeting is attended by all partner states Partner states should not consider the IGC-TRACECA only as a source for new projects and financing but also as the main Adjustments to the MLA and its technical annexes are approved advisory body leading to harmonised rules and regulations Elections are conducted Target date : May/June 2001 A list of new Traceca projects is approved

Both the TRACECA web sites are hosted, maintained and up- Access to the sites is available at all times Adjustment of the architecture of the data base (for Traceca dated projects) and can be completed Up-dates including reports on Traceca projects, major events, Target dates : hosting and maintenance : in operation articles, practical information, … are made on time up-dating : permanent process A multi-criteria search system for Traceca projects is installed multi criteria system : September 2001

The webmaster is trained : 4 training sessions are conducted in Baku Target date : permanent process the webmaster up-dates the web sites on his own from Baku (the western expert becoming more and more an adviser)

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The Traceca Traffic Forecast data base is transferred to the web Extracts from the Traceca Traffic data base appear on the web Extracts from the Traceca Traffic data base can be provided to site site the webmaster by the western consultant in charge After the end of the traffic data base project, the data base can be managed by new staff from the Permanent Secretariat as Target date : end of project well as from the partner states

A Traceca technical library is set up and completed in Baku The Tbilisi Technical Library is transferred to Baku National Secretaries provide the requested information All Traceca reports are available Target dates : Traceca reports library, end of March Information requested from National Secretaries such as List of International Conventions is translated and available in Baku. Documentary information on partner states, permanent process

The Baku Office building is renovated and the Permanent Office building : the Permanent Secretariat and the owner, the Simultaneous translation equipment is more expensive than Secretariat is properly equipped state of Azerbaijan, declare that renovation is completed in expected and the budget might not cover this investment in full conformity with the plans and the budget previously approved Target dates : office building, March 2001 Equipment : the last piece of equipment is installed (equipment equipment, May 2001 for simultaneous translation)

A “quasi” business plan for the next three year is designed The 2001 budget is approved during the Annual Meeting Partner states have not yet decided to contribute to the budget of the IGC-TRACECA The financial plan for the following 2 years is approved during the Annual Meeting The E.U. contribution is not considered sufficient to cover some expenses such as hiring local experts on a permanent basis Resources are adequate to cover the needs of the IGC- Target date : Annual Meeting in Tashkent (May 2001) TRACECA

The selection process of the Traceca projects is adapted Target date : September 2001 Documents for new Traceca projects are produced Target date : permanent process Financing of investment proposals by international financial institutions and commercial partners is stimulated Target date : permanent process

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3.5 Planning for the whole duration of the project 1.4 - OVERALL PLAN OF OPERATIONS Project title : TRACECA Intergovernmental Joint Commission Project number : TNREG9803_Ext Countries : Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, , Contract n° :00-0251.00 Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan Planning period : from start to january 2002 (end) Prepared :March 5/2001 EC Consultant : AXIS& Associés, 24-26, rue du Cotentin - 75015 - Paris Project objectives : to increase the competitiveness of the Traceca corridor by improving the co-operation between Traceca partner states / to define, in terms of contents and timing, a Technical Assistance Programme to be financed by the European Union N° MAIN ACTIVITIES Project months INPUTS PERSONNEL (in days) OTHER EC Consultant Local Local Flight Local Acco- Per Diem Expert Reps. Travel mod. 1 2 3 4 5 6 7 8 9 10 11 12 in EU in NIS E.U. N.I.S.

1 General Management of the project 18 36 260 1126 14 12 10 2 Management of the Special Fund 12 16 3 Reporting to the Task Manager 12 12 10 4 Review and comments on all reports issued by contractors 4 12 5 Setting up an agenda of project events and milestones 0 12 6 Renovation of Baku office (end) 1 6 7 Procurement of Equipment (end) 0 6 8 Preparation and management of the Annual Meeting 2 26 26 9 Preparation and management of Working Groups 4 60 60 10 Meetings / Nat. Secretaries / Nat. Commissions / counterparts 0 170 22 43 175 11 Meetings with contractors and counterparts / Traceca projects 0 44 15 44 12 Hosting, Maintenance and up-dating of the web sites 36 0 13 Training of the webmaster 0 40 4 40 14 Collection of information and documents / Technical Library 0 6 15 Day to day assistance to the Permanent Secretariat 0 48 16 Training of the staff of the Permanent Secretariat 0 24 TOTAL 89 518 260 1126 40 58 12 20 345

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3.6 Planning for the next reporting period 1.6 - PLAN OF OPERATIONS FOR THE NEXT REPORTING PERIOD Project title : TRACECA Intergovernmental Joint Commission Project number : TNREG98038_Ext Countries : Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgystan, Moldova, Contract n° :00-0251.00 Romania, Tajikistan, Turkey, Ukraine, Uzbekistan Planning period : March 1 to July 31, 2001 Prepared on : March 5, 2001 EC Consultant : AXIS & Associés Project objectives : To Increase the competitiveness of the Traceca corridor by improving the co-operation between Traceca partner states./ To Define, in terms of contents and timing, a Technical Assistance Programme to be financed by the Euro-pean Union (EU) N° MAIN ACTIVITIES TIME FRAME INPUTS Year 2001 PERSONNEL (in days) OTHER project months EC CONSULTANT Local Local flights local accom. Per Diem 2 3 4 5 6 EU NIS Expert Reps. travel EU NIS

1 General Management of the project 12 18 110 550 6 5 5 2 Management of the Special Fund 6 8 3 Reporting to the Task Manager 6 6 5 4 Review and comments on all reports issued by contractors 3 6 5 Setting up an agenda of project events and milestones 6 6 Renovation of Baku office (end) 3 5 7 Procurement of Equipment (end) 1 5 8 Preparation and management of the Annual Meeting 2 26 26 9 Preparation and management of Working Groups 3 36 30 10 Meetings / Nat. Secretaries / Nat. Commissions / counterparts 85 18 85 11 Meetings with contractors and counterparts / Traceca projects 22 8 22 12 Hosting, Maintenance and up-dating of the web sites 12 0 13 Training of the webmaster 30 30 14 Collection of information and documents / Technical Library 6 15 Day to day assistance to the Permanent Secretariat 24 16 Training of the staff of the Permanent Secretariat 12 TOTAL 48 295 110 550 6 26 5 10 193

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4 ANNEX

Opening of the Baku Permanent Secretariat / Speeches

Visits to National Secretaries :

- Azerbaijan - Kazakhstan - Uzbekistan

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Minutes of the Opening ceremony

Office of the Permanent Secretariat IGC TRACECA

(4.15pm. – 5.20pm, February 21, 2001, Baku/Azerbaijan)

Ceremony was open at 4.30pm in the Ballroom by:

Mr. A. Sharifov – Vice Prime-Minister of Azerbaijan, Chairman of the National Governmental Commission for Implementation of the TRACECA MLA in Azerbaijan

Dear Mr. President! Dear Ms. Anna Lindh! Dear Mr. Solana and Mr. Patten! Dear Ambassadors! Ladies and Gentlemen!

Mr. President, we highly appreciate you and our guest for your participation in the ceremony of the opening of office of Permanent Secretariat of IGC TRACECA in Baku.

International Baku Summit on restoration of Great Silk Route, initiated and supported by the President of Azerbaijan Republic Mr. Heydar Aliyev under the aegis of European Union was held on September 7-8, 1998. During the Conference “Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus - Asia Corridor” was discussed and adopted. Heads of 12 European and Asian countries signed this agreement. Viewing Conference’s political importance delegations from 32 countries as well as 13 international organizations participated in it. To ensure MLA effective implementation Permanent Secretariat was established. To confirm the role of Azerbaijan Republic in TRACECA program implementation it was decided to allocate PS office in Baku. Permanent Secretariat began its activity since April 2000.

Under TRACECA program founded in 1993 at the expense of European Union in member states were implemented dozens of projects. And as a result turnover of goods just in Azerbaijanian side of this corridor increased from thousands of tons in 1995 to 5,2 millions of tons in 2000. This is 15 times more than in 1995.

We highly appreciate European Union for constant assistance to TRACECA member-states including Azerbaijan. We sure that viewing great economic and political importance of the program the attention of EU as well as member-states will increase.

Participation in this inauguration ceremony of the President of Azerbaijan Republic Mr. Heydar Aliyev, high mission of European Union as well as relevant countries ambassadors demonstrates the role of Permanent Secretariat in TRACECA program implementation.

Now let me announce the PS office inauguration ceremony open. Now let me give the ground to Madam the Minister Anna Lindh.

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Mrs. Anna Lindh The Minister of Foreign Affairs of Sweden (EU-Presidency)

Good afternoon, Ladies and Gentlemen,

We are pleased to be here, in Baku. I should admit that it’s my first visit to Baku, but I’m sure, not the last one. I am happy to be at inauguration of such excellent office. I would like to thank you, Mr. President, as I am sure that the choice of such beautiful building is really your choice! I am sure, neither Commissioner nor other High Representatives have such marvelous offices and all of them will try to establish their offices here.

I think, TRACECA project is really very important one, as joint operation of transport and communication provides a real basis for cooperation and economic prosperity. The role of TRACECA projects is great for economy of the region.

So I would like to congratulate all participants of this ceremony.

Mr. Sharifov Thank you very much, Ms. Lindh. Now let me give the ground to Mr. Patten.

Mr. Chris Patten- The Member of the European Commission

Thanks to all of you. I’ be very brief, as we’ve just had two excellent speeches. I’ll stress one significant point. This is a really important project not only for Azerbaijan and its leadership, but for the whole region as well: for Central Asian Republics and Europe.

As the Minister has just said, transport and communication is a basis for economic development and cooperation.

So, I’d like to assure that we’d continue to give TRACECA high priority.

We think, the money provided was extremely well spent. And all the things were well organized in this marvelous office. I myself would like to move my own office here, so I can understand the Minister’s point.

Mr. A. Sharifov: Thank you so much. I would like to give the floor to the Secretary-General of the Permanent Secretariat IGC TRACECA, Mr. Zviad Kvatchantiradze.

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Mr. Zviad Kvatchantiradze- The Secretary General of the Permanent Secretariat of Intergovernmental Commission TRACECA

Your Excellency Mr President Aliyev, Your Excellencies; Dear Mdm Minister Lindh, Dear High Commissioner Patten, Dear Secretary General Solana, Excellencies, Ladies and Gentlemen,

Bearing in mind the fact that we are pressed for time, please allow my greeting to be very brief and to make notes on behalf of my colleagues in other countries –members of TRACECA and myself - as first elected Secretary General of this office. I’ d like to mention only the most important topics this day, which with no doubt will have great impact on the development of the regional cooperation between TRACECA countries and the European Union. We opened the House of TRACECA, but to the great extent this is as well THE HOUSE OF EUROPE.

The selection of the city of Baku to become a venue for Permanent Secretariat was not a random choice. This city is a natural crossroads of two civilizations and this is beautifully and impressively reflected in the everyday life of this fascinating city. Apart from this, the great political support, which is rendered by Your Excellency, gave ground to the TRACECA countries to define Baku as our COMMON HOME. Allow me Mr. President to express our most sincere gratitude for your help and your personal contribution in the restoration of the Great Silk Route.

Much more time will be needed to tell about the political and economic support that was provided by the European Union to TRACECA. As a credit to this invaluable support TRACECA is one of the most successful programs of the European Union. This success has resulted in the definite projects of technical and investment assistance.

One of the named projects - Intergovernmental Commission for TRACECA Transport Corridor is to provide a support to the new regional organization of economic cooperation. We are aware that this support goes in line with the strategic interests of the EU and it is highly valued by the TRACECA countries. The aims we are targeting are certainly in harmony with the policy of the common European Home, which is led by you, dear guests.

There were times when many of our countries were rejected by the Western world. Then, we suffered all problems of Bolshevik evil. But we survived. We survived because we were destined to, we did not fall into oblivion, vanishing together with the XXth century. But we also survived due to your help, which you offered us again.

One of the significant results of this support is the Program of the EU - “TRACECA” . This program has begun to execute the idea of bringing the transport-telecommunication networks and infrastructure to conformity with the EU standards. We start with transport and roads, because as the Latin says VIA EST VITA (Road is Life). Everything starts with a road. This is very true. By the successful fulfilling of the Traceca program the member countries gradually become strategic partners of the European Union.

This huge region contains a cradle of cultures and civilizations. Each of our countries has its own way of development, but we are all united in one thing: we are joined by the tireless urge to be close to Europe, to be friends with it, and to develop a mutually beneficial cooperation.

In the presence of such high-ranking entities let me take this opportunity to express words of sincere gratitude for the rendered support and assistance to the citizens of the European Union. European taxpayers should know that their investments in the TRACECA program will bring dividend to them without fail and soon. They should know that we all are friends of the European Union and we will always keep this friendship priority. But please, don't

AXIS & Associés Page 34 Traceca Intergovernmental Joint Committee Inception Report leave us halfway. This is very important. We still need your active help very much. And this is perhaps the most important thing, which I wanted to tell you.

And now, allow me, in honor of today to present you with memorable souvenirs, which will be very easy to pack into your suitcases.

Thank you for your attention.

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Mr. Sharifov

Thank you very much Mr. Secretary General.

And now, let me ask Mr. President Aliyev to take the ground and to have a speech

H.E. Heidar Aliyev- The President of the Azerbaijan Republic

Dear Minister of Foreign Affairs of Sweden! Dear Secretary General Solana! Dear Commissioner Patten! Dear Ladies and Gentlemen!

I sincerely greet all of you in Azerbaijan and say: “Welcome to our country!” This visit of high-rank representatives of the European Commission to South Caucasus and Azerbaijan as well, shows the interest, attached to the region. Though your visit to Azerbaijan is very short, you could witness once again the importance, Azerbaijan attaches to TRACECA program. European Union is engaged in wide-range activity. First of all, I would mention further strengthening and development of relations between EU states. Moreover, it doesn’t limit to its members, but pays interest to other regions of the world. For this reason, TRACECA program, founded in 1992-93 plays a really significant role.

We highly appreciate measures, taken by EU for the sake of TRACECA program implementation. But we consider it to be the start of a greater task for this purpose, on September 1998 EU and TRACECA member-states initiated Baku International Conference on Restoration of Great Silk Route, which sighed a document and decided to establish the Permanent Secretariat in Azerbaijan. We appreciated this decision and provided the PS with one of the ancient buildings of Baku, constructed and occupied in the beginning of the 20-th century by one of the most prominent figures of Azerbaijan Gadji Zeynalabdin Tagiyev.

Azerbaijan people have always estimated values, common to all mankind and tried to integrate European values with the local ones. The internal and external states of this building, constructed 100 years ago in a real European style, confirms above-mentioned.

At present, it became fashionable to allocate offices in modern buildings, but we provided a building, constructed in a classical old way. I saw the floor in the Secretary General’s office. It looks like it was made just yesterday. Look at these thick walls. Nowadays, they count each inch and walls are very thin. As a result, they get out of order in a short period of time.

I am talking of just one piece of architecture, adopted from European architecture, though Azerbaijan is full of them. It demonstrates the interest, attached by our country to Europe and its values from ancient times.

TRACECA program is associated with the restoration of Great Silk Route.

During the conference we exactly determined that ancient Silk Route, linked Asia and Europe, East and West is actual and now. It is much shorter than other ways between East and West. Freight

AXIS & Associés Page 36 Traceca Intergovernmental Joint Committee Inception Report transportation is faster and cheaper. That is why we are sure the decisions made on Baku Summit in 1998 should be implemented.

It seems to me that recently European Union approach to TRACECA program has become a bit cool. But I don’t suppose it’s right position. I think that the visit of such High Mission to South Caucasus will bring to end this cool attitude.

I would like to say: don't hesitate to waste money for TRACECA program. You’ll compensate your expenditures two-three times as much. Now we as well as you sure that TRACECA program, Great Silk Route rehabilitation is one of the most important programs both for nowadays and XXI century in whole. The better we’ll manage overall development of this program, the faster South Caucasus, Central Asian countries integration with Europe will be possible.

Now office is established and should be used for the real work. It is not possible to work without finance. Good projects should be discussed and implemented in this building. Such projects do exist.

I would like to appreciate you once more. I hope this meeting would be very important for our desires implementation. Thank you.

Closing of the official part of the opening ceremony.

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AZERBAIJAN (visits to National Commissions / Secretaries)

Chairman Abid SHARIFOV National Secretary Rafik ZEYNALOV (confirmed by letter dated 16/02/2001) Staff No staff Office Renovated office inside the building of the Permanent Secretariat Office equipment (local) To be furnished Office equipment (EC) PC, printer, copier, fax (to be moved to this office / presently at the Railways) Telephone lines Fax line e-mail

Date 09 / 02 / 2001 Consultant J.L. ROMANINI, AXIS & associés

Persons met Rafik ZEYNALOV

Topics On the day of visit, the only topic really discussed was the possible appointment (brief summary) (confirmation) of the National Secretary. M. Zeynalov said he was ready to offer his “resignation” to Mr. SHARIFOV if his appointment did not get confirmed in the next few days and that, in the meantime, he was waiting in his Railways office.

Then the Consultant received copy of a letter to the Secretary General “extending” the appointment of Mr. Zeynalov to the “end of 2001”.

Due to the circumstances no other topic could be discussed on February 9.

Decisions / Follow up - Request definite appointment of a National Secretary (done in the meantime

- Request proper installation of the National Secretary (tel/ fax / e-mail / etc…)

- Brief the new National Secretary and, possibly, take part in a meeting of the National Commission (as participation of Azerbaijan in the Working Groups has not been satisfactory in 2000)

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KAZAKHSTAN (visits to National Commissions / Secretaries)

Chairman To be appointed after ratification National Secretary Yerzhan SULEIMENOV Staff No staff Office Small office (20 sq.m.) shared with one colleague in the Ministry of Transport Office equipment (local) One desk, one cabinet and 2 chairs for the National Secretary Office equipment (EC) PC, printer, copier, fax Telephone lines 7 (3172) 32 86 39 (tel/fax) Fax line 7 (3172) 32 86 39 (tel/fax) e-mail [email protected] / [email protected]

Date 12-13 / 02 / 2001 Consultant J.L. ROMANINI, AXIS & associés

Persons met Vadim P. ZVERKOV, Vice Minister of Transport Nurzhan T. BAYDAULETOV, Director of Railways Transport Department Yerzhan SULEIMENOV + visit at the Railways of Kazakhstan ( Eugene MIKHAILOV, Head of Marketing)

Topics Meeting with the Vice Minister Zverkov (brief summary) 1) Kazakhstan and the Rules of the IGC-TRACECA :

• The Prime Minister has just presented the ratification to the Parliament (February 7) it is a matter of (short) time (a few weeks) • Railways Protocol on tariffs signed in Baku; it is a misunderstanding; the Railways of Kazakhstan will sign the protocol very shortly

2) Traceca line : • Kazakhstan is very interested in the development of the Traceca line (through Aktau) and it is willing to participate in technical, managerial and marketing improvements • Kazakhstan will propose new projects in Varna

3) Tashkent Annual Meeting : the Vice Minister is considering to attend the Annual Meeting

4) Russian request to participate as an observer : not provided for by the Rules of Procedures

Meeting at the Railways :

1) Railways Protocol : not signing in Baku was a misunderstanding; the protocol will be signed shortly

2) Reductions on MTT tariffs (ex “SARAKS like” rebates) :

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• so far, Traceca transit traffic has been very limited or non existent; there was no reason to maintain the 50% rebate negotiated during the “Intermodal Services” project • as soon as the ferry Baku-Aktau operates, the Railways will request anew the application of a 50% reduction on Aktau/Beineou from the “Commission on the Elaboration of Specific Tariffs” (it convenes once or twice a week – so no time will be wasted); a reduction of 35% is also planned for Aktau/Chengeldy

3) Turkmenbashi – Aktau : the Railways wish to make Aktau port competitive with Turkmenbashi

Meeting with the National Secretary alone

All other current topics : draft agenda for Varna, documents to provide, new communication policy, amendments to the Rules of Procedures and to the statutes, financing of the IGC-TRACECA and participation of the partner states, etc …..

Decisions / Follow up - send a letter to the General Secretariat confirming the signature of the Baku Railways Protocol (YS) - send a letter tot he General Secretariat to explain RW position on transit tariffs : 50% discount on Aktau/Baineou as soon as the Baku-Aktau ferry is running (YS)

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UZBEKISTAN (visits to National Commissions / Secretaries)

Chairman Rovshan ZAHIDOV (Head of RWs) National Secretary Sabirjan ABDURAKHMANOV (Deputy Chairman) Deputy Chairman Hasan ISLAMKHOJAYEV, Deputy Minister External Economic Relations (MVS) Staff Dinara AYAPOVA, bi-lingual secretary (Russian / French) Office Big nice room of about 60 sq.m. in the Railways Headquarters Office equipment (local) Chairs, tables, conference table (8 persons), cabinets, … Office equipment (EC) PC, printer, fax, copier Telephone lines 133 72 74 , 59 67 78 , 133 71 51 (fax/tel) area code : 998 71 Fax line 133 71 51 e-mail [email protected]

Date of visit 15-16 / 02 / 2001

Persons met Sabirjan ABDURAKHMANOV with staff (+ Irina PETRUNINA)

The planned meeting of the National Commission had to be cancelled due to the arrival of a Kazakh delegation on Transport matters led by the Minister of Transport of Kazakhstan

Topics 1) Tashkent Annual Meeting : (brief summary) • Date : probably around May 25 (to be confirmed next week) • Level of participation : Heads of delegations, not Presidents or Prime Ministers, according to the present Uzbek position • Budget : no problem unless we have to invite Presidents • Elections of the Secretary General and Deputy Secretary General : yes it is planned during the meeting

2) Debate : • Future Rules : Deputy Secretary General to be replaced by one or several experts (why not) • Finance : partner states should contribute to the budget as a matter of principle (nominal amounts) in order to be ready to sustain the IGC- TRACECA with more money when the EU is not funding it any longer : OK, let us discuss this proposal • Traceca documents and Traceca visa : why not ? but let us start with “TRACECA” stamps first

3) Varna Working Group : • draft agenda (please add “Traceca Visa”) • new projects (is it possible to present projects proposed earlier and not yet selected) • agenda of the Tashkent Conference (it must be definitely approved in Varna)

4) Russia : participation to the IGC-TRACECA as “observer” is not provided for

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by the Rules of Procedure

5) Comments on the position of Kazakhstan : ratification / new RW tariff policy

Decisions / Follow up - send the draft agenda of the Tashkent Conference ASAP (JLR) - advise definite date for the Tashkent Annual Meeting (S. ABDURAKHMANOV)

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UKRAINE (visits to National Commissions / Secretaries)

Chairman Mr YEKHANOUROV First Vice Prime Minister National Secretary Mr TERTYSHNIK Staff Office Nice room of about 15 sq.m. in the Ministry of Transport Office equipment (local) Chairs, tables, desk…. Office equipment (EC) PC, printer, fax, copier Telephone lines 268 13 74 (fax/tel) area code : 38 044 Fax line 268 13 74 e-mail [email protected]

Date of visit 24-25-26 / 02 / 2001

Persons met Mr Kostouchenko ( Minister of Transport ) Mr Lehenkiy ( Head of Department of Transport Policy ) Mr Tertyshnik ( National Secretary ) Mrs Madvedeva ( Petra co-ordination ) Mr Strebko ( Director of Illiychesk Port ) Mr Tokman ( Coordinator Illiychesk Project ) Mr Kurlyand ( Director of Uk-Ferry )

Topics 6) Illiychesk Ferry terminal (brief summary) • Completion of the project ( Railway connection ) The Ministry of Transport confirm the completion of the project by the end of March 2001.

7) Debate : Maritime Agreement signed on January 24th , 2001, between 4 ports ( Poti, Batumi, Illiyechesk & Varna ), 3 Railway department ( Georgia, Ukraine & Bulgaria ) and 2 Ferry Shipping Company ( Uk-Ferry and Bulgarian Shipping Cie). Presentation of this protocol will be done during the next Working Group of Varna by Mr Tertychnyk.

8) Varna Working Group : • draft agenda • new projects (is it possible to present projects proposed earlier and not yet selected) • agenda of the Tashkent Conference (it must be definitely approved in Varna)

9) Future co-ordination office in Odessa : The Minister of Transport has proposed to host the future co-ordination office in the BLASCO Building in Odessa. Location and condition of the building are exceptional. EC has to confirm the request as soon as possible.

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10) Transport Conference : Ukrainian Government will organise a Transport Conference ( September/October 2001 ) in Kiev or Odessa. The Minister of Transport proposed to involved strongly the TRACECA programme in the Conference goals.

Decisions / Follow up - Presentation of the Maritime Agreement during the next WG. - Confirm the request for the future co-ordination office of Odessa. - Definition of the TRACECA Participation in the Transport Conference

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