| Project Detail |
Project Name Implementing the Central Asia Regional Economic Cooperation 2030 Strategy for Sustainable Regional Development (Phase 2)
Project Number 57292-001
Country / Economy Regional
Azerbaijan
Georgia
Kazakhstan
Kyrgyz Republic
Mongolia
Pakistan
China, Peoples Republic of
Tajikistan
Turkmenistan
Uzbekistan
The TA will continue to support the implementation of the CAREC 2030 strategy, and strengthen the role of the CAREC Program as a regional cooperation platform to help member countries respond to the regions emerging needs and priorities in an effective and collective manner. It will focus on (i) enhancing policy dialogue, knowledge exchange, and analytical work to support decision-making across CARECs operational areas and cross-cutting themes; (ii) strengthening institutional coordination and mechanisms for project identification, resource mobilization, and monitoring and evaluation of results; and (iii) supporting communication and outreach activities to raise awareness of the CAREC Program in the region and beyond.
Project Rationale and Linkage to Country/Regional Strategy
The CAREC Program has been a proactive facilitator of regionally important projects and policy initiatives critical to sustainable and inclusive economic growth in the region. Since its inception in 2001, CAREC has mobilized over $51.6 billion in investments for 280 projects, which have helped improve regional transportation networks, increase energy trade and security, facilitate free movement of people and freight, and advance the development of economic corridors. With the adoption of the CAREC 2030 Strategy in 2017, the Program significantly expanded its scope of operations into five operational clusters covering more than 10 sectors and three cross-cutting themes.
Notable progress has been achieved in implementing the CAREC 2030 strategy amid a challenging global environment. Sectoral and thematic strategies have been prepared across traditional (transport, energy, and trade) and new operational areas (tourism, health, gender, and digitalization). CAREC has also developed scoping studies to identify potential regional initiatives in other areas, such as education and skills development, water, aviation, and cross-border community collaboration, among others. The CAREC Climate Change Vision, endorsed in 2023, seeks to help countries implement their commitments under the Paris Agreement and the SDGs by promoting regional actions for energy transition, decarbonization, innovative financing solutions, and climate-resilient infrastructure and policies.
Despite the progress, economic development prospects in the region remain uncertain due to persisting and emerging challenges. First, CAREC remains among the least integrated and diversified subregions in terms of global and regional trade, especially due to non-tariff barriers, operational inefficiencies, and structural constraints. Second, ongoing geopolitical tensions and concerns about supply chain resilience continue to pose a risk to energy and food security and are prompting a reconfiguration of traditional transport and transit routes. Third, CAREC regions increased vulnerability to climate change and natural hazards threatens critical infrastructure, ecosystems, and livelihoods, particularly for the most vulnerable.
The CAREC Secretariat faces challenges in meeting the regions increasing demand for financial, technical, and knowledge support. These include (i) effectively managing the expanded scope of CAREC activities under resource constraints; (ii) developing sustainable and bankable regional project pipelines crowding in private sector investments and mobilizing financing; (iii) strengthening the role of development partners; and (iv) measuring, monitoring, and disseminating development results.
The TA will build on the work completed under TA-9556: Implementing the CAREC 2023 Strategy for Sustainable Regional Development as well as the recommendations from IEDs evaluation study on ADB support for the CAREC Program, 2011-2021. The TA is aligned with ADBs Strategy 2030 operational priorities, with a particular focus on supporting the implementation of the operational plan for Priority 7 on fostering RCI. The country partnership strategies of CAREC countries also support the implementation of the CAREC Program.
Impact
Regional cooperation and integration for advancing global commitments in the CAREC region enhanced (CAREC 2030). |
