ADB Grant to Prepare Modernization Plans for Central Asia's Cross-Border Points

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The Asian Development Bank (ADB) has approved a $2 million technical assistance grant for a feasibility study to upgrade and modernize border crossing points in Central Asia. The grant will help identify

  • basic infrastructure investment needs at the borders of six priority road corridors in Central Asia Regional Economic Cooperation (CAREC) countries, and
  • how to integrate information systems to be used by relevant government agencies to review and process documents prior to the arrival of goods at the border.

Currently, a 20-ton truck traveling 500 kilometers in Central Asia incurs around 24 hours waiting time at each border. More than 75% of the time is spent waiting for border crossing formalities. Poor physical infrastructure, the lack of inspection equipment, outdated information and communication technology, and limited logistics facilities at many crossing points have contributed to the delays.

“An efficient movement of goods and peoples in CAREC will help the countries participate more fully in the international production chain for trade-led economic growth,” said Ying Qian, ADB’s Lead Professional for Regional Cooperation. “This will integrate CAREC countries further into the global economy and lead to sustained economic growth and improved living standards regionally.”

Among the grant’s outputs will be economic and financial analyses of the proposed projects, assessments on national governance standards, project impact on poverty reduction, and an optimal financing mechanism for the projects. ADB has estimated that the investment requirements for the upgrading of the cross-border facilities and technology could reach $200 million, of which $150 million could be financed by ADB.

ADB’s Regional Cooperation and Integration Fund will finance the grant under the Regional Cooperation and Integration Financing Partnership Facility.

Founded in 1997, CAREC is a partnership of 10 countries—Afghanistan, Azerbaijan, the People’s Republic of China, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan—and six multilateral institutions—ADB, the European Bank for Reconstruction and Development, the International Monetary Fund, the Islamic Development Bank, the United Nations Development Programme and the World Bank. ADB has served as the CAREC Secretariat since 2001.

Project Link: Central Asia Regional Economic Cooperation – Transport and Trade Facilitation: Border Crossing Point Improvement and Single Window Development Project
News release: ADB Lays Groundwork for Easier Border Crossing in Central Asia