BAKU, Azerbaijan, August 26. The Asian Development Bank (ADB) has approved the Border Upgrades for Integration, Logistics and Development (BUILD) project involving Azerbaijan, aimed at improving the efficiency of cross-border transport and reducing trade time and costs in the CAREC region.
According to the ADB, the project’s total financing package includes a $320 million loan from the bank’s ordinary capital resources and $65 million in concessional financing. An additional $15 million grant will be provided under concessional financing.
The project covers Azerbaijan, Afghanistan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, China, Tajikistan, Turkmenistan and Uzbekistan.
“The main objective of the project is to reduce the time and cost of trade along the CAREC transport network. The initiative will improve infrastructure and procedures at border crossing points, while enhancing the efficiency of cross-border transport and transport corridors.
“Modernizing border crossing points is aligned with the bank’s strategy for regional cooperation and integration and is aimed at improving the efficiency of transport connectivity, trade and logistics among CAREC countries,” the bank said.
The ADB said the project is needed in part because of longer border-crossing times. According to the bank, the average time required to cross railway border points in the CAREC network increased from 22.1 hours in 2010 to 25.5 hours in 2024, while average costs rose from $160 to $223.
At road border-crossing points, the average processing time more than doubled, from 6.3 hours in 2010 to 14.1 hours in 2024, according to the ADB.
The bank also noted growing demand for CAREC transport corridors.
“In particular, external factors in recent years have contributed to increased movement of goods between East Asia and Europe, raising the importance of CAREC corridors in global supply chains. Of particular importance is CAREC Corridor 2, which largely overlaps with the Middle Corridor route,” the ADB said.
The implementation of the BUILD project is expected to improve the efficiency of border infrastructure, reduce delays in cargo movements and lower trade and transport costs across the region.
