BAKU, Azerbaijan, June 12. The European Bank for Reconstruction and Development (EBRD) has identified projects to improve the Middle Corridor’s efficiency, said Ekaterina Miroshnik, EBRD Director and Head of Infrastructure-Eurasia Team, Trend reports via the Caspian Policy Center (CPC).
Addressing the second Caspian Connectivity Conference in London, she spoke about the potential 30 investment projects identified by EBRD’s recent study of the region.
She noted that the study identified key priority infrastructure investment needs in all five Central Asian countries to significantly improve the network, with an estimated total amount of €18.5 billion.
“None of these projects will be possible without soft measures – tariff improvements, liberalisation of the market, and private sector participation,” added Miroshnik.
Sophie Ibbotson, a World Bank Development consultant, spoke about the need for cooperation and diplomatic recognition to move the Middle Corridor’s development forward. “In almost all of the literature that you read about the Middle Corridor, the conversations people have focus on its strategic value to Europe and China, connecting the two and transporting goods between,” she said. “But for me, the real appeal of the Middle Corridor is its potential to improve intra-regional, as well as inter-regional, connectivity.”
Commenting on the challenges of fostering regional development, Ibbotson stated that, “High transport costs are one of the top factors which are limiting the growth of manufacturing in Central Asia and are putting an unnecessary restriction on economic growth.” In this regard, she added, “If we can reduce the transport costs, there are countries like Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan [that would] all become much more attractive to investors and to international buyers interested in products that could sell.”
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