ADB to further enhance regional connectivity in Central Asia

FRANKFURT: The Central Asia Regional Economic Cooperation (CAREC) programme, under umbrella of the Asian Development Bank (ADB) has undertaken $1 billion projects in Pakistan since its inception, mainly in road infrastructure with the purpose to enhance regional connectivity.

Since 2001, almost $28 billion of CAREC-related investments have upgraded key regional links, modernised trade infrastructure and systems, and boosted energy supply and cooperation in the region.

Sean O’Sullivan, ADB’s Director General for Central West Asia Department, told reporters on the sidelines of the 49th annual meeting of the ADB that the CAREC initiative was meant to construct economic corridors, and $22 billion were meant only for the transport and road sector.

The ADB had helped Islamabad to construct road network from Faisalabad to Multan. Now the ADB is planning to focus on the Pakistan Railways (PR) under which the PR will be restructured to make it economically viable.

The CAREC partnership works to create a network of multimodal transport corridors that open up economic opportunities and intercontinental trade, building a global future for Eurasia. CAREC builds transport infrastructure, and moves people and goods across borders faster and at less cost by modernising customs procedures, removing bottlenecks at borders, and simplifying trade.

It also works to ensure energy security and efficiency, and to promote energy trade.

CAREC 2020: A Strategic Framework for the Central Asia Regional Economic Cooperation Programme 2011–2020 guides the partnership through its second decade of project implementation, with the primary goal of increasing trade and competitiveness. 

Under the initiative of CAREC, Central Asia is on the move as rapidly rebuilding the ancient transport and trade routes that once connected Euro-Asia; the region is poised to recapture its place as a centre of trade and commerce. Rich in natural resources, surrounded by opportunity at the heart of Eurasia, and committed to regional cooperation, the CAREC countries are preparing for a new phase of growth and prosperity.  The region's ability to capitalise on its unique geographical position and connection to the global markets would be a defining feature of its future development. 

The potential is vast. Trade among all the major sub-regions of the Eurasian continent has more than doubled since 1995.

This growing integration creates real demand for more efficient and reliable transport connections that move people and their businesses around the region faster and cheaper.

According to available latest data till end 2014, of the total investment of $24 billion, the 10 CAREC member countries financed $5.4 billion (22.2 percent), Asian Development Bank (ADB) $9.2 billion (37.3 percent), World Bank $5.8 billion (23.5 percent), European Bank for Reconstruction and Development $1.6 billion (6.3 percent), and Islamic Development Bank $1.4 billion (5.6 percent). Other development partners provided $1.2 billion (5.1 percent).