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CAREC Experience and Future Challenges and Opportunities. C.C. Yu Country Director Tajikistan Resident Mission Asian Development Bank. What is CAREC?. Partnership 10 countries and 6 MIs, each with clear roles

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carec experience and future challenges and opportunities

CAREC Experience and Future Challenges and Opportunities

C.C. Yu

CountryDirector

Tajikistan Resident Mission

Asian Development Bank

what is carec
What is CAREC?

Partnership

  • 10 countries and 6 MIs, each with clear roles
  • Working together to promote regional economic development and the mutual benefits of regional cooperation
  • Strong MI collaboration, but leadership by countries
  • ADB is CAREC Secretariat

Action and results oriented

  • Based on clear strategy and action plan
  • Invest in transport, energy, and trade facilitation
  • Promote capacity development and networking
challenges in carec region
Challenges in CAREC region

Investment and trade barriers to growth and development

  • Poor legal and regulatory environment presenting high transactions costs for business and trade
  • Major gaps and decays in the transport infrastructure (roads, rails, airports)
  • Poor border facilities and cumbersome and costly trade procedures (among the highest trading costs in the world)
  • Weak management of substantial regional energy resources

.

carec 2020 focus action results
CAREC 2020: Focus, Action, Results
  • Strategic objectives
      • - Expanded trade
      • Improved competitiveness
      • Operational priorities
      • - Transport, energy, trade
      • CAREC Institute, economic corridors
    • Partnership to harness economic opportunities
    • proximity to sizable European markets
    • proximity to the buoyant markets of Asia
    • at the hub of a rapidly integrating Eurasian
    • super-continental economic space
carec key areas priorities opportunities
CAREC Key Areas: Priorities & Opportunities

Transport Program

Aims for boosting intra-regional trade by forging and implementing agreements to facilitate cross border and transit movements of goods, and through customs reform and modernization.

Aims for greater physical connectivity through infrastructure investments across CAREC road and rail networks and at border-crossing points.

Trade Facilitation Program

slide7

CAREC Key Areas continued…

Trade Policy Program

Assists member countries in taking advantage of the opportunities afforded by membership in WTO through studies and knowledge sharing on trade policy reform, and supporting capacity building initiatives.

Energy Program

Improves energy security and energy efficiency through investing in developing energy resources in the region and infrastructure for energy trade

slide8

CAREC Key Areas continued…

CAREC Institute

  • CAREC is establishing a physical base for CI to expand analytical work to better address challenges and pursue opportunities for the program
  • Provides training and of web-based information in transport, trade, and energy to help CAREC members learn from each other and share experience in regional cooperation.

Second-Tier Areas

  • - Communicable disease and control
  • Agriculture
  • Disaster risk management
  • Climate change adaptation and mitigation
carec investments and results by sector
CAREC investments and results by sector

Transport

More than $17 billion had been invested since 2001 to 85 CAREC related transport projects along the 6 corridor routes.

Corridors 1,2 and 3 have cut journey by as much as 33%

Better roads increased private and freight travel; less damage and lower costs for consumers

carec investments and results by sector1
CAREC investments and results by sector
  • Trade Facilitation
  • $247 million of CAREC-related trade facilitation projects have been and are being implemented.
    • Modest improvement in boarder crossing time based on Corridor Performance Measurement and Monitoring (CPMM) Survey
carec investments and results by sector2
CAREC investments and results by sector

Trade Policy

Structured long term approach for training and sharing of experiences for WTO accession and post-accession reforms

Ongoing accession of CAREC countries to WTO: Tajikistan on 2 March 2013, Afghanistan and Kazakhstan expected in 2013.

CAREC’s non-WTO member countries learn experiences through CAREC Institute’s capacity building efforts

carec investments and results by sector3
CAREC investments and results by sector

Energy

Mobilized around $3.37 billion since 2001 for 26 projects for expanding bilateral power trade and improving regional power network.

More than 2,300 km of transmission lines built, and bringing reliable electricity to people and businesses.

wuhan action plan investment prospects
Wuhan Action Plan (Investment Prospects)

Transport

A total of 68 priority investment projects amounting to almost $23 billion, with about $15 billion worth of funding requirement.

wuhan action plan investment prospects1
Wuhan Action Plan (Investment Prospects)
  • Trade Facilitation
  • Priority projects
    • - Regional Improvement of Border Services (RIBS) 2 - ($15.5 mln)
    • - Regional Improvement of Corridor Efficiency (RICE) – ($17 mln)
    • - Regional Upgrade of SPS Measures for Trade (RUST) – ($18 mln)
  • Regional Technical Assistance
  • - Aligning customs procedures with best practice
  • - Coordinated border management
  • - Regional investment project preparation
  • - Assistance on SPS
  • - Regional transit
  • - Regional interoperability of national SWs
  • - PPP modality for multi-modal transport