1. ADB’s Role in Bridging Asia and Europe Olly Norojono Country Director, Azerbaijan Resident Mission Asian Development Bank 7 th Euro-Asian Road Transport Conference and Ministerial Meeting Amman, Jordan 12-13 June 2013

2. Regional Multilateral Development Bank Established in 1966 Established in 1966 A partnership of 67 countries A partnership of 67 countries 48 regional members 48 regional members 30 offices worldwide 30 offices worldwide Asian Development Bank

3. Strategic Directions Goal Poverty reduction in Asia and the Pacific Poverty reduction in Asia and the Pacific Strategy 2020 Inclusive growth Inclusive growth Environmentally sustainable growth Environmentally sustainable growth Regional integration Regional integration

4.  Partnership AFG, AZE, PAK, PRC, KAZ, KGZ, MON, TAJ, TKM, UZB – 10 member countriesAFG, AZE, PAK, PRC, KAZ, KGZ, MON, TAJ, TKM, UZB – 10 member countries ADB, EBRD, IMF, IsDB, UNDP, WB– 6 multilateral institutions (MI) as partnersADB, EBRD, IMF, IsDB, UNDP, WB– 6 multilateral institutions (MI) as partners ADB serves as the CAREC secretariatADB serves as the CAREC secretariat Development through cooperationDevelopment through cooperation Strong MI collaboration, but ownership by countriesStrong MI collaboration, but ownership by countries  Action-oriented Based on clear strategies and action plansBased on clear strategies and action plans Covers both hard and soft aspects of cooperationCovers both hard and soft aspects of cooperation Key sectors: transport, trade facilitation, energy and trade policyKey sectors: transport, trade facilitation, energy and trade policy 4 CAREC

5.  Upgrade the 6 transport corridors 1.Europe – East Asia Corridor 2.Mediterranean – East Asia 3.Russian Federation – Middle East and South Asia 4.Russian Federation – East Asia 5.East Asia – Middle East and South Asia 6.Europe – Middle East and South Asia Transport and Trade Facilitation: Strategic Priorities

6. simplify and harmonize regulations that govern cross-border trade  Ensure efficient movement of goods and people: simplify and harmonize regulations that govern cross-border trade  Develop sustainable, safe, people- friendly transport and trade network  Develop competitive corridors across the CAREC region Transport and Trade Facilitation: Strategic Priorities

7. 7 Boundaries are not necessarily authoritative.

8. 8

9. Achievement As of September 2012 Roads: 3,970 km (51%) Roads: 3,970 km (51%) Railways: 3,190 km (44%) Railways: 3,190 km (44%) Road: Corridor 2, 3, 5: >80% completed Rail: Corridor 4 and 6: >70% completed; Corridor 3 far behind

10. Investment and Source of Financing (2001-2012) ADB Transport: $6,1 billion (35%) Transport: $6,1 billion (35%) Trade facilitation: $48 million (19%) Trade facilitation: $48 million (19%)Transport Other MIs: $7,2 billion (42%) Other MIs: $7,2 billion (42%) Government: $3,4 billion million (20%) Government: $3,4 billion million (20%) Others: $539 million (3%) Others: $539 million (3%)

11. Investment Plan (2020) Transport: $22.5 billion Trade facilitation: close to $1 billion

12. Non physical investments Country-Specific TA Completed: 17 Country-Specific TA Completed: 17 Regional TA Completed: 3 Regional TA Completed: 3 Cross border transport agreement (KGZ-TAJ) Cross border transport agreement (KGZ-TAJ)

13. Key Issues IssuesMeasures Inadequate border facilities and infrastructure ADB’s TA project “Regional Improvement of Border Services (RIBS)” Agreed approach to mitigate non- physical barriers to cross-border transport of goods and people along CAREC corridors ADB supported Regional Technical Assistance project was approved in in 2012. Implications of the CBTA to the private sector Include private sector in the implementation and capacity building activities of the CBTA

14. Key Issues IssuesMeasures Slow progress in proposed privately financed investments Assist in training on institutional capacity and PPP Inadequate road maintenanceAssist in training on performance based management contract for road maintenance Need to develop capacitiesAssist in training at national and regional levels through the CAREC Institute program

15. Key Issues IssuesMeasures Stepped road sector targets place excessive burden on latter years 2010-2012: 880 km/year target 2013-2017: 1200 km/year target Use the Midterm Review Stock Take as input to re-evaluate progress and targets Differences in CAREC planning and evaluation horizons between 2017 and 2020 Use the Midterm Review Strategy Update to harmonize the planning horizon to 2020

16. 16 Thank You