IKS Group of Companies

CAREC 2020: Boosting Trade, Transport and Energy in Central Asia

BAKU, AZERBAIJAN - Senior officials from the 10 member countries of the Central Asia Regional Economic Cooperation (CAREC) Program, met today in Baku, Azerbaijan, and moved towards completing a strategic framework that over the next decade will help further develop regional transport networks, boost regional trade, and help secure reliable, efficient energy. The Senior Officials� Meeting took stock of the group�s achievements since its formal establishment in 2001, and put finishing touches to CAREC 2020, the strategy that will guide the partnership for the next 10 years. It will include a five-year plan of priority regional investments in transport, trade facilitation, and energy. CAREC 2020 will be formally adopted in November 2011 when CAREC countries gather again in Baku to mark the occasion of their 10th Ministerial Conference. �This year is special as it marks the first decade of CAREC�s existence. It is a time to look back, celebrate, reflect, and�very importantly - to also look to the opportunities ahead,� said Juan Miranda, Director General of ADB�s Central and West Asia Department. �The CAREC countries are closer now than they have ever been, and CAREC 2020 will speed the process by which Central Asia reassumes its position as a pivotal crossroad for international trade and commerce.� The CAREC partnership comprises 10 countries�Afghanistan, Azerbaijan, the People�s Republic of China, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan�and six multilateral institutions: the Asian Development Bank (ADB), European Bank for Reconstruction and Development, International Monetary Fund, Islamic Development Bank, United Nations Development Programme, and World Bank. ADB has served as the CAREC Secretariat since 2001. CAREC promotes project-based cooperation in transport, energy, trade facilitation, and trade policy. To date, the regional group boasts more than $15 billion in CAREC-related investment in these sectors, including building and upgrading 3,600 km of roads and 2,000 km of railway; as well as ports and priority border crossings. CAREC has also improved energy security, efficiency and distribution throughout the region.

ADB Assistance Hits $17.51B in 2010

Of the total financing of $17.51 billion approved by ADB, $15.50 billion was for investment support, $1.68 billion was for policy-based support, and $327 million was for technical assistance. In addition, ADB's ongoing Trade Finance Program supported $2.77 billion in trade. "As the region moves beyond economic recovery to sustained growth, it must ensure that the evolving growth paradigm becomes more inclusive to benefit as many people as possible," ADB President Haruhiko Kuroda said in the report. According to an ADB study, 14 out of 20 developing Asian economies saw their Gini coefficient � a measure of inequality � increase in recent years as economic growth accelerated. The Asia and Pacific region remains home to millions of the absolute poor. The bank continued to assist its developing member countries in addressing challenges and making progress toward the Millennium Development Goals. If the region's potential is to be fulfilled, it must rebalance growth to reduce reliance on external markets, the report said. Developing Asia must promote public-private partnerships to meet infrastructure needs and to ensure development is inclusive and environmentally sustainable. ADB has introduced operational plans for specific sectors and thematic areas. In 2010, ADB approved three operational plans for climate change, sustainable transport, and education. In 2010, ADB and its Special Funds provided $13.84 billion in financing, of which $11.46 billion was for 118 loans, $243 million for 8 equity investments, $982 million for 40 grant projects, $982 million for 5 guarantees, and $176 million for 243 technical assistance projects. Cofinancing partners provided $3.67 billion, bringing the total approved financing to $17.51 billion. In 2010, ADB issued thematic bonds for the first time, raising $638 million in Water Bonds and $244 million through Clean Energy Bonds. For its local currency bond, ADB launched its inaugural CNY1.2 billion global renminbi bond in Hong Kong, China. "The historic Millennium Declaration of 2000 promised a better life for millions of poor in Asia and the Pacific. How well this promise is fulfilled depends on our steadfast efforts," Mr. Kuroda said. "ADB remains committed to working tirelessly with its developing member countries and development partners to ensure greater progress in the years ahead."

Communique: Meeting of the Heads and Senior Representatives of Multilateral Development Banks, London, 11 March 2011

We met in London for our regular consultations on the global economy and to discuss how we work on issues of common concerns.

We shared concerns and expressed our deep sympathies with people of Japan on extensive loss of lives and mass destruction due to earthquake and tsunami. Information about the unprecedented tragic event was still evolving at the time.

We noted that the global economic recovery is gaining traction and welcomed overall robust growth in emerging and developing economies, supported by strong private demand. However, we are concerned that the recovery is uneven, unemployment remains high, and unsustainable patterns of growth may be re-emerging. We will continue to work with our clients to promote job-creating growth that is inclusive and sustainable.

We are concerned about the current high level of food prices, resurgence in food price volatility and inflationary pressure from rising food prices. We took note of the different national measures being taken to ensure food sufficiency but believe concerted actions at a global and regional level are needed. We will work with clients to avoid harmful policies, create safety nets and promote more resilient and productive agriculture. We agreed to develop a Joint Action Plan, emphasizing the need to reduce food price volatility and improve food and water security in coordination with the G20 process.

We stressed the importance of our work in helping to finance efforts towards climate change mitigation and adaptation. We will continue to support the UNFCCC process for establishing the Green Climate Fund (GCF) with a view to a successful and early conclusion. In the interim, the Climate Investment Funds will continue to be an important instrument for scaled-up climate action and an opportunity for learning lessons that would be of direct relevance to the GCF.

We emphasized the need to develop local capital markets to boost sources of local currency funding. We stressed the importance of tackling this issue according to individual country needs and taking account of the wider macroeconomic, regulatory and market infrastructure dimensions that have led to the under development of local markets. We will continue to support deepening of capital markets in our regions, drawing on each other�s experience.

We underscored the importance of engaging with the private sector as engines of growth and job creation. We will continue to help create and strengthen markets and work to correct market failures, to crowd-in the private sector. We agreed to work on a set of general principles that help us support sustainable market development and ensure additionality.

Finally, we also discussed the fast moving developments in North Africa and the Middle East region. We are actively assessing how we can respond to the needs of each of the countries involved. We approach this challenge in a spirit of close cooperation, drawing on lessons from other regions and on the complementary capabilities of each institution.

African Development Bank
Asian Development Bank
European Bank for Reconstruction and Development
European Investment Bank
Inter-American Development Bank
International Monetary Fund
The World Bank Group

Turkmenistan Gets First ADB Loan for Regional Rail Link

The ADB Board of Directors today approved the financing for the North-South Railway Project which will be used to fund power, signaling, and telecommunication systems on 311 km of the 934 km-long planned North-South Railway Corridor. The line will improve Turkmenistan's access to neighboring Kazakhstan, as well as Persian Gulf Countries, the Russian Federation and South Asia.

The track itself is being financed by the Government of Turkmenistan and the Islamic Development Bank and is expected to become an important part of a transcontinental transport corridor being developed under the Central Asia Regional Economic Cooperation Program, supported by ADB.

"This line will become the region's main rail route for transporting bulk goods such as oil, agricultural products and textiles, which will give regional trade a significant boost and provide new sustainable economic growth and opportunities at home," said Shakeel Khan, the ADB project officer.

Turkmenistan, which is bordered by Afghanistan, Kazakhstan, Uzbekistan and Iran, has large reserves of oil and gas and the new line is expected to cut the current distance for transporting goods from Central Asia to Persian Gulf ports by about 680 km. Along with reducing travel time and costs it will provide direct employment, support the development of small businesses, and open up opportunities for tapping coal, gold and other minerals in areas alongside the route.

As well as power and communication systems, the project will fund track maintenance and safety equipment. Support will also be given to help the Ministry of Railway Transport develop the capacity to effectively manage the project and its overall assets and finances.

The loan from ordinary capital resources will make up 75% of the total project cost of $166.7 million, with the Government of Turkmenistan funding the balance. The loan will have a 25-year term, with a five year grace period, and ADB is considering two options for the pricing of the funds. The Ministry of Railway Transport is the executing agency for the project which is expected to be completed by September 2012.

ADB President Inaugurates Rail Line Linking Afghanistan to Central Asia

"The new rail link between Mazar-e-Sharif and Hairatan will help reduce trade bottlenecks, boost commerce, and speed the flow of much-needed humanitarian assistance," Mr. Kuroda said at the opening ceremony in Hairatan.

"It represents Afghanistan's emergence as a regional crossroad for trade and commerce and � most importantly � the aspirations of Afghanistan's people to redefine their country's role in the region and in the world."

The rail link is being constructed from a $165 million ADB grant and should be completed by the end of this year. It will connect Afghanistan to Uzbekistan's expansive rail network, and to regional markets in Europe and Asia. Future links are planned, which will run across the north and to other parts of the country and region, including Pakistan, Tajikistan and Turkmenistan.

Earlier on Tuesday, Mr. Kuroda met with Afghan President Hamid Karzai, Finance Minister and ADB Governor Omar Zakhilwal, ADB Alternate Governor Abdul Qadeer Fitrat and other senior government officials in the capital, Kabul. In his remarks at an official luncheon, Mr. Kuroda said the rail link is a hallmark of the eight-member Central Asia Regional Economic Cooperation Program (CAREC), which Afghanistan joined in 2005.

"Afghanistan is at the heart of CAREC, and ADB's projects in the country's road, rail and energy sectors dovetail perfectly with CAREC's vision of helping Central Asia reap the benefit of its strategic location," Mr. Kuroda said.

From 2002 to the end of last year, ADB has provided Afghanistan with approximately $2.1 billion in loans, grants, technical assistance and cofinancing. ADB's focus on infrastructure and regional cooperation is primarily demonstrated in the transport and energy sectors. Other major ADB projects in Afghanistan include portions of the North East Power System, which this time last year began bringing a regular supply of electricity into Kabul from Uzbekistan, and rehabilitation and construction of the northern portion of the country's Ring Road.

About ADB

Uzbek leader, Chinese Finance Minister meet to discuss bilateral relations

Welcoming the guest, head of our state noted in particular: "I take this opportunity to thank the President of the People's Republic of China Mr. Hu Jintao for a decision to send such a representative delegation led by You to the 43rd Annual Meeting of the Asian Development Bank in Tashkent."

"It will surely provide a corresponding impetus and weight to an international forum of such level. We in Uzbekistan highly appreciate and value the close, friendly relations established between our countries, and know well what lies behind the current growth of China's prestige and influence in world affairs, which was laid in the renowned reforms course by Deng Xiaoping," Islam Karimov added.

The constructive nature of Uzbek-Chinese summit meetings has proved particularly critical in the steady development of bilateral relations. Contacts between specialists and representatives of business circles of our nations at different levels have been constant and productive. Uzbekistan and China vigorously cooperate, in particular, in the framework of Shanghai Cooperation Organization.

The most favored nation regime in trade and economic cooperation between our countries has been practical since 1994. China has established itself as one of the major economic partners of Uzbekistan. In 2009, for instance, mutual trade turnover exceeded two billion US dollars. 223 Uzbek-Chinese joint ventures are active in our country.

During the meeting in Oqsaroy, Xie Xuren expressed his sincere gratitude to the head of our nation for the warm welcome, highly appraising the magnitude and practical effect of the Uzbek model of economy and the anti-crisis program successfully implemented in the Republic of Uzbekistan.

Uzbekistan highly values the growing cooperation with ADB � President

He cordially welcomed participants, representatives of high-profile international organizations and all guests who have arrived in the Uzbek capital.

"It is a great honor for us that the capital of our country is the first among the states of Central Asia and Caucasus that was chosen as a venue to hold this important event, and we would like to express the sincerest gratitude to the governments of the ADB member-countries that took this decision," he emphasized.

In his speech the President Islam Karimov briefly touched upon some issues which have an immediate relation to the meeting's agenda.

"The past 2009 became truly the year of serious stress test for the world economy, and practically there was not a single country which avoided the negative consequences of the global financial and economic crisis. And today, despite the assessments of the respected international analysts and experts that the most acute and rather hurting phase of the crisis is overcome, nevertheless we are facing very complex, quite painful and lasting process of economic recovery," he said.

"While analyzing the problems that emerge in the course of addressing the crisis of the world economy, we ought to pay our attention, above all, to unstable and low growth rates, outstanding high unemployment, notable deterioration of financial state of the real sector of economy and decreasing of the population's real incomes," the Uzbek leader noted.

He said the large fiscal deficits taking in some countries threatening scales and growth of a public debt may lead to a serious tension with regard to paying off these debts and possible defaults. The low level and in some cases decline of domestic demand are being observed, and this, in its turn, hinders return to stable and sustainable output growth rates.

"We believe that we should agree with the opinion of many leading world experts that the excess liquidity and further pumping banking and financial sector with financial resources create conditions for an outburst of speculative capital, inflating the so-called bubbles on the stock and commodities markets and these factors may well lead to a new collapse on the financial and foreign exchange markets with all related consequences in the future," he added.

"It goes without saying that growing emission and increase of money supply bring about a potentially dangerous situation of inflation processes. We have to speak time and again that many, especially the developed countries, are carried away by protectionist measures, which first and foremost trigger significant problems for the developing countries and in general for recovery and development of the world economy," Islam Karimov said.

Uzbek President noted that the degree and depth of susceptibility of each particular country to the impact of the world crisis, above all, depends on the model of reforms being implemented, sustainability and reliability of the financial-economic and banking systems and the protective mechanisms put in them are strong.

In this respect, Islam Karimov touched upon the Uzbek model of development and reforming the economy adopted in the early years of the country's independence in 1992. "Today we have all grounds to state that during the past period, in particular, during the period of extreme impact of the crisis processes, this model has completely justified itself," he said.

The sufficient resources and a reliable margin of safety of the financial and banking system created during the past period, prudent and balanced economic policy, the measures to protect the economy against the influence of a speculative capital, unmanageable turmoil and lack of control on the world financial and stock markets, as well as the strict control over the macro-economic balance of the economy, have had a profound importance in mitigating the destructive impact of the crisis.

The timely, adequate and targeted nature of the Anti-crisis program for 2009-2012 adopted in Uzbekistan have played an enormous role in countering the crisis and neutralizing its negative consequences.

Along with rendering the needed assistance to the banking sector, the support, firstly, of the financial stability of the real economy, easing the tax burden and providing this sector, especially the export-oriented enterprises with necessary privileges and preferences, as well as the measures to reduce costs and raise profitability through modernization, technical and technological re-equipment and diversification of production, stood as the most important priorities in implementing the Anti-crisis program.

The exclusive attention being paid in the country to developing the services sector, small businesses and private entrepreneurship played a vital role in tackling the crisis and ensuring sustainability of the economy's development.

The implementation of the large-scale social, infrastructure, transport and communication projects, through which we have addressed the tasks of creating new jobs and raising the population's incomes were rather important in achieving the objectives of the Anti-crisis program.

"I would like to emphasize that the measures taken in the framework of the Anti-crisis program pursue the prospective targets that go far beyond simply countering the crisis and neutralizing its consequences," the President of Uzbekistan noted.

"We do realize that those countries which have by now already started laying the foundations and launching the long-term innovative projects aimed at deep structural changes and diversification of production will definitely benefit in the post-crisis period."

"Uzbekistan highly values the growing cooperation with the Asian Development Bank and considers it as the most important strategic partner which for over the last years has become for us a leading international financial institution both by the size of credit portfolio and in the framework of regional cooperation in Central Asia," the Uzbek President noted.

Since 1996 Uzbekistan has completed 11 projects worth over $520 million out of allocated $1.2 billion of credit resources. The country is continuing to implement other 15 projects worth over $650 million.

"We note with a great appreciation that nowadays our cooperation is considerably expanding and reaching a new level. During the ADB Annual meeting in Tashkent we have signed additional four loan agreements worth in total more than $1.15 billion, i.e. the ADB in fact has doubled its credit portfolio in our country," he added.

"Today we are fully convinced that such significant components of our cooperation as reliability and commitment to partnership, and certainly, a purposeful utilization by Uzbekistan of the provided funds shall be ensured furthermore," Islam Karimov emphasized.

The ADB could become for Uzbekistan a key partner in implementing the programs of structural reforms and diversification of the economy that are extremely important for the country, the head of our state said touching upon his vision of the priorities of Uzbekistan's cooperation with the Asian Development Bank.

"These programs are aimed at the deep processing of rich natural resources, mineral, hydrocarbon and agricultural raw materials to change the quality and increase the share of the high-technological and competitive goods in the export structure," he noted. "We mean implementation of the projects of modernization, technical and technological re-equipment of the leading branches of Uzbekistan's economy, including mining, oil and gas, chemical and textile industries".

The most important priorities of Uzbekistan's modernization strategy include development of modern transport communications system, implementation of such projects as construction of the Uzbek national highway, establishment of the inter-modal logistics center at the Navoi Airport, extensive renewal of the rolling-stock and extension of the railway network.

"We highly appreciate the fact that during the ADB Annual Meeting we have signed the agreement on allocating the loan worth $600 million for the purposes of construction and modernization of the Uzbek national highway," the President of Uzbekistan said.

Another direction of cooperation is support and further development of private businesses and non-state sector of the economy. If in 1991 the non-state sector made up just less than 3% of the Uzbek economy, then today its share in the GDP is over 80%, and in the certain leading branches of economy, i.e. agriculture, construction, telecommunications, retail and services, the private form of ownership equals to about 100%.

"Along with this, we see a large prospect in further expanding and enhancing the positions of the private sector of economy, in particular, in such sectors as electric energy, chemical, light, food, electro-technical and machine-building industry, in the banking and financial services, and other leading branches of the economy," the Uzbek leader noted.

Uzbekistan and ADB should develop cooperation to further reform and strengthen material resources of agriculture and related branches, he said adding: "One should not forget that in Uzbekistan more than 95% of agricultural products are cultivated on irrigated lands. Therefore introduction of the latest water-saving technologies is vitally significant given growing shortage of water resources in the region."

"In such conditions we will have to accomplish the large-scale works to radically improve and reclaim irrigated lands that suffer from massive salinization and here we see a prospective direction of cooperation with the ADB," he said.

Support of the social sector development, strengthening the modern basis of the education and healthcare systems are additional directions of possible cooperation. "The support of the country's potential of secondary, professional-technical and higher education, the sphere of healthcare, motherhood and childhood, providing them with cutting-edge equipment, computer and information-communications technology, implementation of the advanced methods of diagnostics and treatment in healthcare, - all these aspects stand as very important directions of cooperation, where we feel a huge need," Islam Karimov noted.

"We appreciate that the ADB takes an active part in developing financial and banking system of Uzbekistan, including projects of improvement of public finances, allocation of credit lines for commercial banks and non-banking credit institutions, and participating in the capital of the rapidly developing private Uzbek banks," Uzbek President said. "We are convinced that in this sphere of cooperation we have good prospects, too."

"During the uneasy period of the global financial and economic crisis the Asian Development Bank, its Board of Governors and the ADB President Mr. Kuroda demonstrated effective and well-coordinated work, which provided a timely reaction to challenges caused by the crisis, were able to elaborate and introduce the new instruments and non-trivial approaches to mitigate the consequences of the crisis," Islam Karimov underlined.

"Nowadays, the countries of Asia � the most dynamically developing region of the world which managed better than others the destructive impact of the crisis � are facing the new challenges both in the sphere of economic development, ensuring balanced economic growth and in the matters related to regional stability and security. The solution of these issues requires concerted and well-coordinated work of international organizations, financial institutions and governments," he concluded.

ADB signs $350 million loan to help Uzbekistan boost energy efficiency

Asian Development Bank (ADB) President Haruhiko Kuroda on Saturday signed a $350 million loan agreement to boost the efficiency of Uzbekistan's electricity supply through the construction of a new combined cycle gas turbine.

Mr. Kuroda signed the financing agreement with Uzbekistan Finance Minister Rustam Azimov at a ceremony on the eve of ADB's 43rd Annual Meeting in Tashkent.

The ADB financing will help fund the construction of the Talimarjan Clean Power Project, Central Asia's first 800 MW combined cycle gas turbine (CCGT) power plant. Located 440 kilometers south west of Tashkent, the new facility will increase energy efficiency and save energy through clean power generation.

Uzbekistan has the most industrialized and energy intensive economy in Central Asia. It uses four times more energy than the world average to produce one dollar of gross domestic product. This is due to aging and dilapidated energy infrastructure, low technological base and lack of investment.

The Talimarjan Clean Power Project will cost a total of $1.28 billion. The ADB loan will be complemented by co-financing of up to $300 million from the Japan International Cooperation Agency (JICA), with the remaining $630 million to be financed by the Uzbekistan government, the Fund for Reconstruction and Development of the Republic of Uzbekistan, and the country's power utility company.

"It is significant that this occasion has served to confirm the three-way partnerships among Uzbekistan, Japan and ADB," President Kuroda said at the ceremony, which was attended by Japan's ambassador to Uzbekistan, Mr. Tsutomu Hiraoka.

In addition to the Talimarjan Clean Power Project loan, President Kuroda signed the $115 million first loan installment under a $600 million multitranche financing facility that will include reconstruction of over 220 kilometers of one of the main road corridors of the Central Asia Regional Economic Cooperation Program (CAREC). CAREC Corridor 2 connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan.

Other loans signed on Saturday covered water supply and a microfinance project to help small enterprises, mostly in rural Uzbekistan.

Meeting with ACTED in Uzbekistan

Mr. Bernard Pascal, Assistant Country Director of ACTED Uzbekistan, began the meeting with explanation of the ACTED activity in Uzbekistan. He said that the activity is divided into three components. Health promotion component is very active in Fergana valley. Other components include support to micro-finance and agriculture development in Surkhnadarya and Kashkadarya. Favorable conditions after the introduction of the microfinance law now give the opportunity for ACTED to support the creation of a local micro finance company.

Main partners of the ACTED currently are the EU and NOVIB.

ACTED wishes to expend its activities in Uzbekistan. Participants of the IKS Group supported this idea and they expressed interest in joint collaboration in this issue through the Association of Engineers component of the IKS Group.

IKS Group of Companies meets with Japan International Cooperation Agency in Uzbekistan

IKS Group of Companies met with the Japan International Cooperation Agency (JICA) in Uzbekistan. Development Cooperation issues were discussed during the meeting. Representatives of JICA in Uzbekistan noted that Human Resource and Institutional Development for Economic Development, Agricultural Reform and Rural Development, Improvement of Public Service, Improvement of Infrastructure are the main areas for JICA�s cooperation in Uzbekistan.

ADB Funds Upgrade of Key 'Silk Road' Highway in Uzbekistan

MANILA, PHILIPPINES - The Asian Development Bank (ADB) will provide Uzbekistan $75.3 million loan to upgrade a key highway that is an integral part of a regional transport corridor across Central Asia.

The move comes a month after eight countries in and around Central Asia agreed to an $18 billion strategy to improve roads, airports, railways, and ports to make the region a vital transit route for trade between Europe and Asia � a modern-day equivalent of the ancient Silk Road.

The new loan will be used to upgrade two sections of the A-380 highway, a 1,204 kilometer road that runs from the Kazakh border in Uzbekistan�s north toward Afghanistan and Turkmenistan in the south.

The first road section to be reconstructed is 40 kilometers long in Kungrad District of the Republic of Karakalpakstan. The second is 91 kilometers long in the Khazarsp District of Khorezm Province and Tortkul District of the Republic of Karakalpakstan. International competitive bidding for the civil works will be applied for the first time.

�Upgrading the road will cut travel times and reduce transport costs,� said Olly Norojono, a Transport Economist with ADB. �This highway is essential for enhancing regional integration and economic growth in Central Asia.�

Part of the loan will also be used to help the Government of Uzbekistan strengthen the operation and maintenance of the country�s road network by improving road-sector institutions, planning and budgeting, as well as the provision of road-building equipment.

Insufficient maintenance in the past has led to the deterioration of roads. While the Government has made progress in fixing the problem, the budget for maintaining primary roads hasn�t been sufficient.

The total cost of highway upgrade and strengthening the road sector capacity is $173.5 million. In addition to the $75.3 million provided by ADB, the Government is investing $98.2 million.

The strategy to invest in transport corridors in and around Central Asia was agreed at a meeting in Dushanbe on November 3 of the Central Asia Regional Economic Cooperation Program, which is sponsored by ADB. In addition to Uzbekistan, Afghanistan, Azerbaijan, People�s Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, and Tajikistan have agreed to the strategy.

Ref. http://www.adb.org/Media/Articles/2007/12353-uzbekistan-roads-projects/default.asp

ADB Extends $3M Grant to Facilitate Trade in Central Asia

MANILA, PHILIPPINES (19 December 2007) - The Asian Development Bank (ADB) is providing a $3 million grant to facilitate trade among member nations of the Central Asia Regional Economic Cooperation (CAREC) as part of efforts to promote sustained economic progress across the region.

The Integrated Trade Facilitation Support for CAREC will receive an additional $600,000 from the governments of CAREC countries to complete the funding requirement.

�The outcome of the project is greater volume of trade due to time and cost savings as a result of coordinated cross-border regulations, procedures and standards, as well as improved trade logistics,� said Ying Qian, Principal Economist of ADB�s East Asia Department.

The project supports the implementation of the trade facilitation component of the Transport and Trade Facilitation Strategy endorsed by the sixth Ministerial Conference on CAREC in November 2007. CAREC is composed of Azerbaijan, People�s Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Uzbekistan and Afghanistan. Turkmenistan also participates in CAREC�s trade facilitation work.

Strengthened customs cooperation is the core program of the trade facilitation strategy. The project will also come up with an expanded scope of the work program to address broader issues of trade facilitation, focus on trade facilitation efforts on the CAREC transport corridors, adopt a results-based approach in monitoring time and cost savings as the key indicators of the program, and support logistics assessments and planning focusing on priority corridors and developing national and regional implementation strategies to facilitate trade.

The project will also support bilateral initiatives among CAREC countries and enhance partnership between CAREC�s participating multilateral institutions and key international agencies supporting customs reform, trade facilitation and logistics development in the region. It will also promote dialogue and cooperation with the private sector, which would help formulate and utilize trade facilitation measures, and undertake capacity building in areas of integrated trade facilitation and in broader areas related to trade and transport. The project will also produce knowledge products such as policy and strategic papers.

Trade facilitation plays a vital role for CAREC countries, especially in expanding intra- and interregional trade, which spur investments and economic growth in the long term. Trade facilitation refers to a wide range of activities such as import and export procedures, transport formalities, payments, and insurance and other financial requirements.

Despite years of reform and intensified regional cooperation efforts, the participation of Central Asian countries in international trade remains limited mainly due to the unnecessarily high costs of trade due to, among other reasons, the countries being landlocked, which makes trade and transit problematic.

At most borders, it is necessary to comply with a range of procedures in addition to customs, including animal quarantine, inspection of plants and other agricultural materials, checking of drivers� licenses, axle loads, and compliance with other road rules.

Simplification and harmonization of such procedures are integral to trade facilitation. While international agreements on standard norms can help, a key requirement is to shift policy to place more emphasis on trade facilitation rather than trade control.

Ref. http://www.adb.org/Media/Articles/2007/12346-central-asian-trades/default.asp

ADB Helps Improve Education in Uzbekistan

MANILA, PHILIPPINES - The Asian Development Bank (ADB) will provide Uzbekistan with a $30 million loan to improve education in rural areas with equipment for laboratories and other teaching and learning materials, as well as enhancing teacher training.

Uzbekistan has a solid basic education system, reaching 99% of school-age children. However, there are still major challenges to improve the quality of the education to meet international standards. To achieve this, the Government of Uzbekistan has launched a major program to upgrade the education system by 2009. Part of that initiative is to remove disparities between schools in rural areas and those in towns and cities.

About 80% of Uzbekistan�s 9,773 schools are in rural and remote areas. Many of them lack resources. Major needs include the rehabilitation of school facilities which is being taken care by the Government under the National Program for Basic Education Development, equipment for science laboratories, the update of teaching techniques and the improvement of community participation in school life.

The Government is committed to increase opportunities in rural areas by enhancing school facilities and has asked ADB for support by expanding its ongoing assistance to the country, which includes updating the curriculum, textbook development and promoting information and communication technology in education.

�ADB has a comprehensive program to support the Government of Uzbekistan in the challenging effort of improving the education system. A major issue is improving opportunities for students in rural and remote areas, where fewer funds are available. If we can do this, it will have a big impact on poverty levels,� said Ms Manuela Prina, a social sector specialist at ADB. �We will provide better opportunities not only for students to stay in school and proceed to higher education and therefore find better jobs, but also for rural communities, which will benefit from modern schools and upgraded facilities.�

As part of the new project, rural schools upgraded under the Government�s program will be equipped with laboratories and provided with teaching and learning materials, teacher training institutions and district education departments will be strengthened and community participation in school life increased.

�Although training programs for teachers have been gradually revised, the current in-service training system needs to become more flexible to adjust to specific subject-related requirements of teachers in rural schools, who work in difficult circumstances.�

�Many teachers still apply traditional teaching methods, devoting attention generally to narrow subject knowledge, requiring students to memorize and repeat notions and definitions,� Ms Prina said. �Critical thinking, problem solving, communication skills and teamwork do not receive sufficient attention.�

About 670,000 students and 63,000 teachers will benefit in the three project regions (oblasts) � Tashkent oblast, Surkhandarya and Kashkadarya. The latter two were chosen because they are among the poorest regions in the country, while Tashkent oblast was picked because of the high disparity between the urban and rural areas. The project has been designed to be completed by the end of 2011.

Ref. http://www.adb.org/Media/Articles/2007/12320-uzbekistani-educational-projects/default.asp

ADB's New Country Director for Tajikistan Takes Office in Dushanbe

As Country Director of the Tajikistan Resident Mission (TJRM), Mr. Ojiro will be responsible for delivering ADB�s development assistance program to Tajikistan, totaling nearly $190 million over the next three years, as provided in the Tajikistan Country Operations Business Plan for 2008-2010. He will also oversee the implementation of ADB�s current investment portfolio in Tajikistan, consisting of 14 investment projects totaling around $292 million, two of which are delegated to TJRM for implementation. Mr. Ojiro will also continue to work with the government and development partners for improved regional economic cooperation in Central Asia.
�I am very excited and consider myself to be highly fortunate to be working in such a dynamic country as Tajikistan. I look forward to my assignment here,� said Mr. Ojiro.
Mr. Ojiro joined ADB in 1992, and has served in various capacities. Prior to joining TJRM, he worked as a principal transport economist at ADB Headquarters in Manila. Mr. Ojiro has 18 years of professional experience in country programming work and processing and implementing transport projects in Asia. This includes formulation of the Country Partnership Strategies for China, Mongolia and the Kyrgyz Republic; processing 10 ADB loans for highways and roads in China, Mongolia and the Kyrgyz Republic; developing road sector policies and strategies for these three countries; and carrying out economic and sector analysis for roads, railways, ports and civil aviation in 13 countries.
Mr. Ojiro holds a Bachelor�s degree in business/economics from Sophia University, Japan, and a Master�s in project management, University of Manchester Institute of Science and Technology, U.K.
Tajikistan joined ADB in 1998. ADB has provided assistance to Tajikistan�s economy, mainly in rural development and agriculture, transport, energy and social sectors. As of Nov. 15, 2007, Tajikistan has received $352.5 million in loans, $33.0 million in technical assistance and $39.5 million in grants.

Ref. http://www.adb.org/Media/Articles/2007/12308-tajikistan-directors-appointments/default.asp

ADB President Calls for Fundamental Change in Water Management in Asia and Pacific

BEPPU, JAPAN - Asian Development Bank (ADB) President Haruhiko Kuroda today called on all countries in the Asia and Pacific region to make a fundamental change in the way they manage water to build a sustainable future.

�We need to change the way we think about water � change to a broader perspective that considers all facets of economic and social development,� said Mr. Kuroda in his address to the first Asia-Pacific Water Summit.

ADB regards better water management as a crucial challenge for the Asia and Pacific region, where more than 600 million people lack access to safe drinking water and 2 billion people have inadequate, or are without, sanitation facilities.

Energy, food, environment and industrial policies are all intimately linked to water. Policies in all these areas will similarly be influenced by external forces like demographic transitions, advances in technology and communication, globalization and free trade.

�All of these factors must be considered holistically in order to build a sustainable future toward and beyond Millennium Development Goals,� Mr. Kuroda said.

Calling for strong political will and practical, forward-looking actions, Mr. Kuroda stressed the need to move water higher up on the local, national, regional and international policy agendas.

He noted that most of the region�s water problems are solvable through more appropriate planning and management. Specific solutions will vary according to each country�s particular circumstances. However, Mr. Kuroda said, some fundamentals can apply across the board: reliable, accessible data on water; related social, economic and environmental factors; strong partnerships among governments, the private sector, civil society and others; water quality management; and capacity building for new skills, new approaches and new mindsets.

ADB is committed to helping its developing member countries address their water challenges with the vision of water for all in the Asia and Pacific region. ADB expects to sharply increase its investments in the water sector through its Water Financing Program, which directs funds, reforms and capacity development programs at rural communities, cities and river basins. As part of ADB�s contribution to the Summit, ADB published the Asia Water Development Outlook on November 29 � a report that assesses the region�s current and future water problems and proposes the policy measures that can help solve them.

Reference: http://www.adb.org/Media/Articles/2007/12306-asian-water-managements/default.asp