ADB to help develop economic corridor for South Caucasus

Through a new technical assistance project, the Asian Development Bank (ADB) is helping develop an economic corridor framework for the South Caucasus to leverage investment, promote trade facilitation, and assess new tourism opportunities through transport gateways between Armenia, Azerbaijan, Georgia, and beyond, Report informs referring to the ADB website.

“To support regional economic growth and recovery in the wake of the COVID-19 pandemic, the CAREC Program approved new health and digital strategies. It also launched initiatives for cross-border cooperation on water resources and a facility to enable regional infrastructure projects,” the bank said.

With land transport playing a vital role in overcoming the formidable terrain of Central and West Asia, ADB made a series of strategic investments in 2021 to help link the region’s economies and bolster trade.

Georgian Railway JSC provides an essential link connecting Central Asia and the South Caucasus to the Black Sea and Europe. In 2021, ADB committed $50 million in $500 million of green bonds issued by the state-owned enterprise to refinance its existing debt and continue supporting the modernization of the rail network, according to the ADB.

“Once completed, the network’s annual freight capacity is expected to rise from 27 million tons in 2020 to 48 million tons by 2024. It will also reduce the average time it takes for freight trains to reach Batumi Port from the Azerbaijan border by 4 hours,” the bank noted.

The CAREC program is a partnership of 11 countries (Azerbaijan, Afghanistan, China, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan) to promote economic growth and sustainable development through regional cooperation.

ADB was established in 1966 and has 67 member countries. The bank’s headquarters is located in Manila, the capital of the Philippines. Azerbaijan was accepted as a member of the ADB on December 22, 1999, the country’s share in the bank’s capital is 0.5%.

During the period of cooperation, the bank provided loans to Azerbaijan for more than $5 billion. In 2021, ADB provided a $250 million loan for budgetary support to Azerbaijan as part of its response to the COVID-19 pandemic. The loan aims to strengthen COVID-19 response mechanisms and healthcare services, expand social protection for poor and vulnerable households, and prevent job losses caused by the economic downturn.