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CENTRAL ASIA REGIONAL ECONOMIC COOPERATION CORRIDOR PERFORMANCE MEASUREMENT and MONITORING: a Forward-Looking Retrospective

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CENTRAL ASIA REGIONAL ECONOMIC COOPERATION CORRIDOR PERFORMANCE MEASUREMENT and MONITORING: a Forward-Looking Retrospective CENTRAL ASIA REGIONAL ECONOMIC COOPERATION CORRIDOR PERFORMANCE MEASUREMENT AND MONITORING: A Forward-Looking Retrospective ASIAN DEVELOPMENT BANK CENTRAL ASIA REGIONAL ECONOMIC COOPERATION CORRIDOR PERFORMANCE MEASUREMENT AND MONITORING A Forward-Looking Retrospective ASIAN DEVELOPMENT BANK © 2014 Asian Development Bank All rights reserved. Published in 2014. Printed in the Philippines. ISBN 978-92-9254-689-2 (Print), 978-92-9254-690-8 (e-ISBN) Publication Stock No. RPT146534-2 Cataloging-in-Publication Data Asian Development Bank. Central Asia Regional Economic Cooperation Corridor Performance Measurement and Monitoring: A Forward-Looking Retrospective. Mandaluyong City, Philippines: Asian Development Bank, 2014. 1. Regional cooperation and integration.2. Central Asia.3. Corridor performance measurement and monitoring.4. Transport and trade facilitation. I. Asian Development Bank. 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. 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. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express written consent of ADB. Note: In this report, “$” refers to US dollars. Asian Development Bank This report was prepared by Prof. Mark Goh of the National 6 ADB Avenue, Mandaluyong City University of Singapore, Max Ee Khong Kie, and Julius 1550 Metro Manila, Philippines Santos, together with the CAREC Institute, under the Asian Tel +63 2 632 4444 Development Bank (ADB) regional technical assistance Fax +63 2 636 2444 project Central Asia Regional Economic Cooperation www.adb.org (CAREC): Working with the Private Sector in Trade Facilitation (R-PATA 7353). ADB initiated corridor performance For orders, please contact: measurement and monitoring (CPMM) to document progress Public Information Center in implementing the CAREC Transport and Trade Facilitation Fax +63 2 636 2584 Strategy. [email protected] Printed on recycled paper Contents Tables, Figures, and Boxes iv Foreword vi Executive Summary viii Abbreviations xi 1 Introduction 1 2 ADB and the CAREC Program 4 Asian Development Bank 4 Central Asia Regional Economic Cooperation 4 The CAREC Corridors 7 Chapter Summary 13 3 Corridor Performance Measurement and Monitoring Methodology 14 Monitoring Corridor Performance: Key Challenges in the CAREC Region 14 Developing a Methodology for the CAREC Program 16 The CPMM Methodology 20 Key Stakeholders in CPMM 38 Chapter Summary 41 4 CPMM: The First 5 Years 43 CPMM Features and Advantages 43 Investment Decision-Making and Impact Assessment 44 Understanding and Improving Cross-Border Trade 45 CPMM for the Private Sector 49 Transportation Infrastructure 50 Soft Infrastructure and Policy Reforms 50 Lessons Learned 51 5 Evaluation and Next Steps 54 How Is CPMM Doing on Corridor Performance? 54 Recommendations for CPMM 55 Concluding Observations and Next Steps 57 Appendixes 1Profiles of CAREC Corridors 60 2 Internationally Accepted Tools for Measuring Performance and Monitoring Transport and Trade Facilitation Programs 72 3CPMM Trade Facilitation Indicators 93 4Data Collected under CPMM 96 References 101 iii Tables, Figures, and Boxes Tables 1 Economic Corridor Development Potential of the CAREC Corridors 10 2 Key Events in the Development of CPMM 18 3 CPMM-Standardized Names of Border Crossing Points 31 4 CPMM Semiannual Year-on-Year Analysis 32 5 Summary of the Roles and Responsibilities of Key CPMM Stakeholders 39 6 Average Transit Duration on CAREC-Rehabilitated Roads 46 7 Trade Facilitation Indicators, 2010–2012 48 A2.1 Indicators in the World Bank Doing Business Report 73 A2.2 Indicators in the World Bank Logistics Performance Index 75 A2.3 Indicators in TRAX 78 A2.4 Structure and Composition of the Enabling Trade Index 80 A2.5 APEC Performance Clusters and Choke Points under SCFAP 88 A2.6 Summary of International Tools 90 Figures 1 Institutional Framework of the CAREC Program 5 2 The CAREC Corridors 9 3 Road Traffic Density along CAREC Corridors 11 4 Rail Traffic Density along CAREC Corridors 12 5 The Evolution of CPMM 18 6 The Stages of CPMM 21 7 CPMM Data Collection Form 23 8 CPMM Time/Cost–Distance Template: Individual Worksheet 25 9 CPMM Time/Cost–Distance Template: Summary Worksheet 26 10 The CPMM Dashboard 27 11 Filtering CPMM Data 28 12 Standardizing CPMM Data 29 13 Speed Reliability Plot 34 14 Hypothesis Testing: Analysis of TIR Carnets along CAREC Corridors 35 15 Hypothesis Testing: Impact of Customs Union on Border Crossing in Central Asia 36 16 CAREC CPMM Annual Reports 38 17 The CPMM Workflow 40 A1.1 Central Asia Regional Economic Cooperation (CAREC) Corridor 1 61 A1.2 Central Asia Regional Economic Cooperation (CAREC) Corridor 2 63 A1.3 Central Asia Regional Economic Cooperation (CAREC) Corridor 3 65 A1.4 Central Asia Regional Economic Cooperation (CAREC) Corridor 4 67 A1.5 Central Asia Regional Economic Cooperation (CAREC) Corridor 5 69 A1.6 Central Asia Regional Economic Cooperation (CAREC) Corridor 6 71 A2 Methodology of the World Bank Trade and Transport Facilitation Assessment (Flowchart) 84 iv Tables, Figures, and Boxesv Boxes 1 The CAREC Corridors 7 2 Time/Cost–Distance Methodology 17 3 Anecdotal Evidence—Border Crossing Points and Bottlenecks 33 4 Techical Note on Hypothesis Testing 37 A2 Corridor Project Cycle, the World Bank 85 Foreword The Central Asia Regional Economic Cooperation Program (CAREC) Program is a committed partnership of 10 countries, working together with a support of six multilateral institutions to promote development through regional cooperation. The participating countries have together chosen the CAREC Program as their means of confronting and overcoming their common problems. To maximize its effectiveness,these countries have, since the program’s establishment in 2001, consistently focused their joint efforts on four priority areas: energy, trade policy, transport, and trade facilitation. Through sector committees and other convening mechanisms, the program serves to build confidence among the participating countries, sustaining dialogue even when other issues and factors threaten to create an impasse. As their confidence in one another—and in their joint efforts—grew over the years, CAREC member countries recognized that their geographic situation presented both challenges and opportunities. The CAREC Transport and Trade Facilitation Strategy for 2008–2017 (TTFS), adopted in 2007, and its Implementation Action Plan, adopted in 2008, provided structure and focus (not least in the form of the CAREC corridors) for two of the four priority areas covered by the CAREC Program. Its two objectives, which drive the program’s overall strategy, are to expand trade and to improve the region’s competitiveness. By working to reduce transport costs regionally and to make distant markets more accessible, the CAREC Program has been supporting the coalescence of isolated landlocked countries into a land-linked regional economy generating benefits for all. To document the progress toward achieving these objectives, improve focus, and inform the development of solutions to common challenges, the TTFS introduced corridor performance measurement and monitoring (CPMM). CPMM data are provided by private sector transport associations, and the analyses of the data help policy makers and practitioners better understand the underlying causes that hinder CAREC corridor performance. The methodology, which is based on internationally accepted tools for monitoring and measuring the performance of transport movements and trade flows, is described fully in this publication. It is a valuable process-based measurement tool that can aid policy reform efforts,particularly by identifying viable, cost-effective ways to circumvent or mitigate impediments to the movement of goods and people along CAREC corridors and throughout the region. CPMM has been conducted now for 5 years, and has become more than just a tool for evaluating corridor performance: it now influences investment decision making, supports project evaluation, assesses the impact of policy implementation, and aids shippers in selecting routes and managing inventories. This publication examines CPMM, traces its evolution, and suggests ways to increase the value of CPMM and the analysis it supports. It also explores how CPMM can be expanded to capture additional information to enrich the monitoring and implementation of the refined TTFS (TTFS 2020), which was adopted in vi Forewordvii 2013 to account for changes in the CAREC Program (expanded membership, new strategic framework) that had taken place since the original strategy (ADB 2014) was implemented. TTFS 2020, which covers 2014–2020, provides continuity in the development of the corridor infrastructure while shifting the focus toward improving the quality of logistics service and increasing the level of connectivity. For infrastructure, there is a new emphasis on rail for long-distance freight movements.
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