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.