BAKU, Azerbaijan, Oct. 1
By Klavdiya Romakayeva - Trend:
Center for Economic Research and Reforms (CERR), together with Asian Development Bank (ADB), conducted an econometric analysis that will assess the impact of investment projects on infrastructure and development of Uzbekistan, Trend reports with reference to the CERR.
The leadership of the CERR with the participation of specialists from the ADB Institute, together with the Central Asia Regional Economic Cooperation Institute (CAREC) at an international online conference discussed the role of governments and new models for attracting private investment in sustainable infrastructure in Central Asia.
According to the Asian Development Bank forecasts, developing countries in Asia will need $26 trillion in infrastructure investment over the next decade to sustain growth, eradicate poverty, and tackle climate change. In particular, this includes investments in energy, transportation, telecommunications, water supply, and sanitation.
The Uzbek side was presented by Deputy Director of the Center for Economic Development, Umid Abidkhadzhaev, who made a presentation on the Center's research on “Financing infrastructure based on evidence: the experience of Uzbekistan”.
The conference participants were presented with an evidence-based approach to the development of infrastructure in Uzbekistan, the project for the construction of the Tashguzar–Boysun–Kumkurgan railway line, implemented in 2003-2007.
The aim of the CERR study was to quantify the impact of the Tashguzar–Boysun–Kumkurgan railway line, which was commissioned 13 years ago, on the profitability of enterprises and organizations.
“CERR, in cooperation with international organizations, in particular, researchers from the Institute of the ADB, represented by the senior adviser of the Japan Financial Agency, Dr. Naoyuki Yoshino, developed a strategy for empirical assessment of infrastructure projects, the results of which were presented today for a review by the international expert community”, said Umid Abidkhadzhayev.
Abidkhadjaev noted that the econometric analysis revealed the presence of positive effects in the regions where the line was built and the presence of indirect effects (spillover effect) in the neighboring regions.
The positive effects include an increase in the profits of enterprises and organizations in the Kashkadarya and Surkhandarya regions by 246 billion soums ($24 million) and 319 billion soums ($31.1 million) over 4 and 5 years, respectively.
At the same time, indirect effects for the fifth year showed an increase in the profit of enterprises in the Bukhara and Samarkand regions by 156 billion soums ($15.2 million).
Experts noted that large-scale economic reforms have been carried out in Uzbekistan over the past three years, including favorable conditions that have been created to attract foreign investment in infrastructure projects, the assessment of which can be carried out at least in 4-5 years.
The Tashguzar–Boysun–Kumkurgan railway line with a length of 223 km, commissioned in August 2007, is of strategic importance for the development of the southern regions of Uzbekistan. The road, worth $447 million, bypasses Turkmenistan and reduced the previous distance of passenger and freight traffic by 170 km, and the travel time by seven hours. The project was financed from the budget, funds of Uzbekistan Railway JSC, and a loan from the government of Japan.
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