2019 CAREC Transport Sector Annual Report This publication summarizes transport sector developments in member countries of the Central Asia Regional Economic Cooperation (CAREC) Program. It highlights key achievements as of 2019 in aviation, cross-border transport and logistics, railway, roads and road asset management, and road safety as the fi ve strategic pillars of the CAREC Transport Strategy 2030. An outline of activities in 2020–2021 focusing on the fi ve strategic pillars is also presented. About the Central Asia Regional Economic Cooperation Program The 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 Pacifi c, while sustaining its eff orts 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. 2019 CAREC TRANSPORT SECTOR ANNUAL REPORT OCTOBER 2020 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org 2019 CAREC TraNSPOrt SectOR ANNUAL REPOrt OCTOBER 2020 Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2020 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 2020. ISBN 978-92-9262-383-8 (print); 978-92-9262-384-5 (electronic); 978-92-9262-385-2 (ebook) Publication Stock No. SPR200273-2 DOI: http://dx.doi.org/10.22617/SPR200273-2 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 Edith Creus. On the cover (from left to right): Cargo and passenger transport inspection at the Khorgos Customs Post in Almaty Region, Kazakhstan, bordering the People’s Republic of China; a passenger plane at the Tbilisi Airport, Georgia; and passengers waiting at the Samarkand Railway Station, Uzbekistan (photos by Andrey Terekhov, Daro Sulakauri, and Eric Sales). CONTENTS ABBREViatiONS iv 1 INTRODUCTION 1 Endorsement of the CAREC Transport Strategy 2030 in 2019 2 SHOWCASE 1 3 Major Achievements in Afghanistan in 2019 3 SHOWCASE 2 6 Major Achievements in the Railways Pillar in 2019 4 COUNTRY-SPeciFIC IMPLEMENtatiON PROGRESS 8 5 PROGRESS OF StrateGIC PILLARs In 2019 13 6 WaYS FORWARD 16 What Will Happen in 2020–2021 APPENDIXES 1. CAREC Transport Strategy 2030, Infographic 18 2. Six CAREC Corridors 19 3. CAREC Designated Railway Corridors 20 4. List of Investment Projects by Country 21 iii ABBREViatioNS ADB Asian Development Bank ADY Azerbaijan Railways Closed Joint Stock Company AIIB Asian Infrastructure Investment Bank BCP border crossing point CAREC Central Asia Regional Economic Cooperation CPMM Corridor Performance Measurement and Monitoring CTS CAREC Transport Strategy DFID Department for International Development of the United Kingdom DMC developing member country DRC Designated Railway Corridors DSCR debt service coverage ratio EBRD European Bank for Reconstruction and Development IsDB Islamic Development Bank JICA Japan International Cooperation Agency km kilometer OPEC Organization of the Petroleum Exporting Countries PBC performance-based contracting PRC People’s Republic of China QATT Quadrilateral Agreement on Traffic in Transit RAM road asset management RAMS road asset management system RIBS Regional Improvement of Border Services RSO Road Safety Observatory RWG Railway Working Group SCO Shanghai Cooperation Organization TA technical assistance TIR Convention International Transport of Goods under Cover of TIR Carnets TSCC Transport Sector Coordinating Committee TTF trade and transport facilitation TTFS Transport and Trade Facilitation Strategy iv v CHAPTER 1 INtroDUCTION Endorsement of the CAREC Transport Strategy 2030 in 2019 1. The Central Asia Regional Economic The TTFS 2020 was developed on a more integrated Cooperation (CAREC) Program is a partnership of approach to improving transport and logistics 11 developing member countries1 and development infrastructure and promoting trade and transport partners working together to promote development facilitation, by reflecting findings and lessons gained through cooperation among the countries, with the from the implementation of the TTFS. The TTFS 2020 overarching vision of “Good Neighbors, Good Partners, updated the six CAREC multimodal corridors and and Good Prospects.” recognized the importance of railway subsector in the CAREC region leading to development of the CAREC 2. The CAREC Transport Strategy (CTS) 2030 Railway Strategy 2017–2030 and the CAREC Railway was approved by all the CAREC countries in the Working Group. To facilitate the development of the 18th CAREC Ministerial Conference in Tashkent, newly defined CAREC corridors and Designated Railway Uzbekistan on 14 November 2019. The CTS 2030 is Corridors (DRCs), potential development projects and aligned with CAREC 2030: Connecting the Region for their implementation schedule were suggested by the Shared and Sustainable Development (CAREC 2030),2 CAREC countries and development partners. the new strategic framework guiding the CAREC Program until 2030. 4. During the development of the CTS 2030, the progress of CAREC transport sector achieved 3. The Transport and Trade Facilitation in 2014–2019 was assessed and was found to Strategy (TTFS) was endorsed at the sixth Ministerial have exceeded the target set in the TTFS 2020: Conference in November 2007 as the first development road infrastructure totaling 7,800 kilometers (km) strategy of transport sector in the CAREC countries for was constructed or rehabilitated by 2017; railway improving the region’s competitiveness and expanding lines of 1,800 km were to be achieved by 2020. intraregional and interregional trades in the CAREC Moreover, to sustain the quality of those region. Subsequently, the CAREC Transport and achievements, institutional and policy instruments Trade Facilitation 2020 (TTFS 2020)3 was endorsed were developed: A Railway Strategy of CAREC, at the 12th CAREC Ministerial Conference in 2013. 2017–2030;4 and A Regional Road Safety Strategy for 1 Afghanistan, Azerbaijan, the People’s Republic of China (PRC), Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. 2 ADB. 2017. CAREC 2030: Connecting the Region for Shared and Sustainable Development. Manila. http://dx.doi.org/10.22617/ TCS179132-2. 3 ADB. 2013. CAREC Transport and Trade Facilitation Strategy 2020. Manila. https://www.adb.org/sites/default/files/institutional- document/34107/files/carec-ttfs-2020.pdf. 4 ADB. 2017. Unlocking the Potential of Railways: A Railway Strategy for CAREC, 2017–2030. Manila. https://www.adb.org/documents/ railway-strategy-carec-2017-2030. 1 2 2019 CAREC Transport Sector Annual Report CAREC Countries, 2017–2030.5 In addition to those 5. The CTS 2030 reflects these achievements strategies, Compendium of Best Practices in Road Asset in line with the TTFS 2020 and lessons learned. Management6 was produced in 2018 to help the The CTS 2030 will be implemented by continuing CAREC countries introduce and strengthen road asset