Central Asia Set To Fast-track $121b Development Projects
Faizan Hashmi Published November 07, 2016 | 09:10 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 07th Nov, 2016 ) : The finance ministers of 11 Central Asian countries last week decided to fast-track the completion of more than $121 billion worth of projects in order to become one of the largest global economic zones.
According to a Khaleej Times report, these plans include $94 billion worth of new energy projects to meet the growing demands for electricity. When these projects come on stream, they will help boost industrial output for export to regional and international destinations.
The Asian Development Bank (ADB) commissioned a study which was presented at the Energy Investment Forum at the Islamabad ministerial conference. It says that the Carec (Central Asia Regional Economic Cooperation) countries have identified power investment needs of about $94 billion until 2023.
The financing gap that the private sector has to fill in the same period amounts to about $38 billion. The study identifies "specific opportunities for private investment in Central Asian countries." Wencai Zhang, vice-president of ADB, said: "In order to ensure a secure supply of energy, a substantial amount of investment will be needed over the next 20 to 30 years." There is an opportunity for foreign investors, including those from the UAE and Saudi Arabia, to invest in secure and high- yielding energy projects across Central Asia.
Shajhan Mirza, managing director of the Pakistan Private Power Investment board, highlighted investment opportunities offered by Pakistan's electricity sector. He said: "Our hydro potential of 60,000 megawatts and over 185 billion tonnes of coal reserves, mainly in the Thar area, offer huge opportunities to investors." Carec, established in 2001, is implementing its 20-year development plan covering 2001-2020.
It consists of 11 members: Afghanistan, Azerbaijan, China, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, Uzbekistan and Georgia. The ministerial conference was hosted by Prime Minister Nawaz Sharif.
Six multi-national institutions support the Carec, including the ADB, United Nations Development Programme, International Monetary Fund, World Bank, Jeddah-based Islamic Development Bank and European Bank for Reconstruction & Development.
The progress of several projects being implemented across the region was monitored. The key ones include: Carec Railway Development Strategy-2016, the Regional food Safety Initiative, Astana-Bishkek Corridor, mid-term review of Carec-2020, establishment of Carec Institute and Railway Strategy for Carec.
Out of the total $27.7 billion Carec investment so for, $9.9 billion or 36 per cent was financed by ADB, a senior officer of the Manila-based multinational bank told Khaleeej Times. He said other donors had invested $10.9 billion while $6.9 billion was contributed by Carec governments.
Of these investments, transport got the major share with $8 billion or 78 per cent. Zhang said: "There are huge financing requirements in Carec for transport and trade facilitation, for which 108 projects have been identified at an investment cost of $38.8 billion for the period 2012-2020.
Investment for the priority energy sector projects will be $45 billion in this period." The Carec region, including its own six corridors, is being built alongside the Central Asian countries. At the same time, the under-construction $51 billion China-Pakistan Economic Corridor (CPEC) is being completed speedily.
In a short while, the two regions will connect with the UAE and Saudi Arabia in the south, Iran in the southwest and with Turkey and Europe in the west. The key projects of Carec are slated to be completed by 2020, while under the 'Early Harvest' plan of CPEC, most projects will be ready by 2018.
The whole of CPEC is projected to be implemented by 2030. Nawaz Sharif underlined how the Carec region will "also benefit from the China Pakistan Economic Corridor and the dream of development will become a reality." He appreciated "the progress made by Carec so far" and urged "boosting this regional cooperation a lot more." "Pakistan offers all assistance to achieve Carec's efforts to reduce poverty and speed up economic and social development of the region's people," he said.
Finance Minister Ishaq Dar said the CPEC would complement the regional connectivity initiatives of Carec. "Once the six Carec corridors and mega ports, now under construction, start operating, they will provide access to global markets.
They will deliver services that will be important for national and regional competitiveness, productivity, employment, mobility and environmental sustainability. All of us should gear our national policies to achieve these targets."
Related Topics
Recent Stories
Fresh wave of rainfall in AJK continues for the second consecutive day
Babar, bowlers help Pakistan level series 2-2 against New Zealand
Attack in restive Chilean province leaves three police officers dead
PM, Saudi Royal court advisor discuss ways to boost economic ties
England clinch third successive Women's Six Nations Grand Slam
DC Bahawalnagar leads fight for fair bread prices
Sheffield Utd relegated from Premier League
02 proclaimed offenders arrested by Wah Police
Pakistan level T20I series with nine-run victory over New Zealand
Minister meets Chinese Consul General, discusses bilateral cooperation, Chinese ..
MS Children Hospital takes over charge
3 dacoits arrested, illegal weapons recovered
More Stories From Pakistan
-
International Online Symposium remembers Amanullah Khan on his 8th death anniversary
5 hours ago -
KP CM takes notice of abduction of D&S judge SW; asks IGP for safe recovery
5 hours ago -
09 arrested for betting on cock fight
5 hours ago -
PM, Saudi Royal court advisor discuss ways to boost economic ties
5 hours ago -
DC Bahawalnagar leads fight for fair bread prices
5 hours ago -
02 proclaimed offenders arrested by Wah Police
6 hours ago
-
Minister meets Chinese Consul General, discusses bilateral cooperation, Chinese security
6 hours ago -
MS Children Hospital takes over charge
6 hours ago -
3 dacoits arrested, illegal weapons recovered
6 hours ago -
Regional Cooperation Workshop on Smuggling of Migrants, Sharing Best Practices Concluded in Islamaba ..
6 hours ago -
Man’s body found from canal
6 hours ago -
Abducted child recovered in 6 days
6 hours ago