Central Asia: Cooperation in Transport Sector Nigel C. Rayner, Director, ECTC ADB

The Region

The IFIs Involved since 1994, AZE, KAZ, KGZ, TAJ, TKM, UZB Lending-ADB, WB, EBRD, IsDB, Kfd, Sfd Non Lending-ADB, WB, EBRD, IsDB, EU, and UNDP ADB-Road, Rail, and Air

The State of Infrastructure Road: 66,000 km of roads, 29,000 for regional traffic Lack of maintenance, Obsolete vehicle design, high operating costs Low maintenance budgets, low fuel and road user charges. Priority: Rehabilitation of the regional road network Rail 22,100 km mainline, 5,000 double track and 4,000 electrified Track condition not good Old rolling stock and lack of spare parts Priority: Rehabilitate the regional rail network

Sector Issues Road Lack of regional network Lack of institutional arrangements Lack of unified regulations and policies Lack of regulatory framework Inadequate maintenance and funding system Ineffective processing systems Lack of flourishing private sector

Sector Issues Rail Lack of regional solidarity Monolithic and monopolistic nature of the organisations Discretionary tariff setting, with significant cross-subsidies, often discouraging use of rail freight by private shippers Obsolete and poor quality of technology Lack of well developed marketing orientation

Central Asia Regional Economic Cooperation 1st Senior Official Meeting–Aug 2001 1st Ministerial Conference – Mar 2002 Regional Preparatory Meeting – Sept 2003 2nd Ministerial Conference-Nov 2003

Output of the Second Ministerial Conference Delegations endorsed the approach and general thrust of the Transport sector note. Endorsed the following Strategic Priorities development of regional transport corridors harmonisation of the regulatory framework improving border controls focussed restructuring and modernisation marketing and tariff setting based on competition improving financing and management

Major Achievements Almaty-Astana-ADB/WB/IsDB/Sfd/Adfd Almaty-Bishkek-ADB/EBRD Bishkek-Osh-ADB North-South Corridor-WB/IsDB/Kfd Dushanbe-Kulyab-PRC-ADB/IsDB Aktau-Atyrau-ADB/EBRD Chengledy-Khodhajavlet (rail) –ADB/OPEC

Non-lending ADB, WB, EBRD, EU, UNDP, IsDB Regional Studies Feasibility Studies Institutional and Restructuring Capacity Building and Training Improving Financing and Management/Marketing

Lending-Pipeline (ADB) 10 loans- $300million (2003-2006) Dushanbe-Kyrgyz for link to Osh-Sarytash-Irkestam-$35M-TAJ,$25M-KGZ Aktau-Atyrau - $55 million Borvoe-Petropavlovsk - $40 million North-South Corridor Project(AZE)-$18 million PRC-MON -$37.5 million UZB –AFG railway link - $20 million Bekhabad-Khanebadam Rly link -$20 million

Non-Lending pipeline (ADB) 13 TAs - $6 million Kazakhstan transport sector study Uzbekistan transport sector study Regional traffic enhancement study Policy reforms in transport sector Regional road development Phase I Harmonization of Cross border initiatives for transport sector Regional railway development Phase I