Over €18bln required for Middle Corridor's modernization, study says

Economy Materials 26 May 2023 19:30 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 26. The total investment required to significantly improve the capacity of the Trans-Caspian International Transport Route (TITR) is estimated at approximately 18.5 billion euros, Trend reports.

The so-called Middle Corridor needs these investments for the modernization of the existing railway and road network, the expansion of rolling stock, boosting ports capacity, the improvement of border crossing points, as well as multimodal logistics centers and supporting network connections in all participating countries, the joint study of the EU and the European Bank for Reconstruction and Development (EBRD) said.

Considerations of investment needs in Central Asian countries factor in their respective requirements, priorities, capacities, and specific circumstances.

As the study assessed, while non-sovereign investors may contribute to some of the funding, the range of viable investment projects remains limited at present.

This is primarily due to constraints such as constrained fiscal space, uncertain traffic volumes along identified routes, risks associated with existing international sanctions against Russia and Iran, and other limitations, the study noted.

According to the EU and the EBRD, each project will undergo a meticulous individual assessment and must meet the standard prerequisites of potential lending institutions. These requirements include comprehensive feasibility studies and in-depth evaluations encompassing integrity, technical aspects, environmental and social impact, as well as commercial and financial due diligence analyses, as deemed appropriate.

TITR starts from Southeast Asia and China, runs through Kazakhstan, the Caspian sea, Azerbaijan, Georgia and further to European countries.