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Secretary General of the PS IGC TRACECA

Rustan Jenalinov

Conference on the prospects for the development of trans-Asian and Eurasian transit transportation through Central Asia till the year 2015

(Dushanbe, Tajikistan – 23-24 October, 2007)

««ROLE OF THE IGC TRACECA IN THE ROLE OF THE IGC TRACECA IN THE DEVELOPMENT OF INTERNATIONAL TRANSITDEVELOPMENT OF INTERNATIONAL TRANSIT»»

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In May 1993 during the Brussels Conference the European Union

initiated a programme on the development of Europe – the Caucasus – Asia (TRACECA)

transport corridor

On 8 September, 1998 at the Summit in Baku the TRACECA member-states signed:

BASIC MULTILATERAL BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT TRANSPORT FOR DEVELOPMENT OF THE EUROPEOF THE EUROPE--THE CAUCASUSTHE CAUCASUS--

ASIA CORRIDOR ASIA CORRIDOR ((MLAMLA))

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INTERGOVERNMENTAL INTERGOVERNMENTAL COMMISSION TRACECACOMMISSION TRACECA

CHAIRMANCHAIRMAN

PERMANENT SECRETARIATPERMANENT SECRETARIAT((PSPS))

SECRETARY GENERAL OF SECRETARY GENERAL OF THE PS IGC TRACECATHE PS IGC TRACECA

EUROPEAN EUROPEAN COMMISSIONCOMMISSION: :

TRACECA TRACECA PROGRAMMEPROGRAMME

PS TEAMPS TEAM OF EXPERTSOF EXPERTS

TRACECA NATIONAL TRACECA NATIONAL COMMISSIONCOMMISSION

AZERBAIJAN ARMENIABULGARIA GEORGIA

KAZAKHSTANKYRGYZSTAN

MOLDOVAROMANIA

TAJIKISTANTURKEYUKRAINE

UZBEKISTAN

ПОСТОЯННЫЕПОСТОЯННЫЕПРЕДСТАВИТЕЛЬСТВАПРЕДСТАВИТЕЛЬСТВА

ПСПС МПКМПК ТРАСЕКАТРАСЕКАAZERBAIJAN ARMENIABULGARIA GEORGIA

KAZAKHSTANKYRGYZSTAN

MOLDOVAROMANIA

TAJIKISTANTURKEYUKRAINE

UZBEKISTAN

ADMINISTRATIVE ADMINISTRATIVE PERSONNELPERSONNEL

ORANIZATIONAL STRUCTURE OF THE IGC TRACECAORANIZATIONAL STRUCTURE OF THE IGC TRACECA

MLA TRACECA was signed by 12 countries:

Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan

Afghanistan, Pakistan and Iran are executing joining proceduresEgypt expressed an intention to join the Programme as an observer

Turkmenistan is the participant to the TRACECA Programme

40% falls at investment

projects

THE EUROPEAN COMMISION FINANCES TECHNICAL ASSISTANCE AND INVESTMENT PROJECTS

EUimplemented

60 projects to the amount ofmore than

121 million euro

THE PROJECTS ARE AIMED AT:

• Harmonizing legislation;• Simplification of border

crossing procedures;• Improving tariff policy;• Institutional

strengthening;• Capacity building;• Developing transport

infrastructure

PROJECTS ARE IDENTIFIED:

• In close cooperation with EC and the MLA Parties;

• approved at the Conferences of IGC TRACECA;

PROJECTS PLAY AN IMPORTANT ROLE IN:

• International trade volumes increase;

• Freight flows growth;• Creation of attractive

investment environment in the region

EU implemented 14 investment

projectsof about

50 million euro

GENERAL:1. Bukhara Cotton Export

Distribution Center - 2 mln Euro;2. Container Services between the

Caspian Ports of Baku and Turkmenbashi – 2,5 mln Euro;

3. Intermodal Terminal Equipment (Karmir Belur, Chimkent, Aktau, Bishkek) – 2,5 mln Euro;

RAIL:1. Rehabilitation of the Caucasian

Railways – 5 mln Euro;2. Supply of an Optical Cable

System for Communication and Signaling to the Railways of Armenia, Azerbaijan and Georgia-15 mln Euro;

3. Rail Tank Wagon Cleaning Boilers in Baku-0,475 mln Euro;

4. Supply of Tank wagons to Azerbaijan Railways-1,6 mln Euro;

DIRECT INVESTMENT PROJECTS WERE FINANCED BY THE EUROPEAN UNION

RAIL FERRY:1.Design and construction ofRail Ferry Facilities in the port of Poti-3,4 mln Euro;2. Improvement of existing Rail Ferry Facilities in port of Ilychevsk -6,4 mln Euro;3. Rehabilitation of the Rail Ferry Terminal in port Aktau-2 mln Euro;

MARITIME:1.Establishment of Ferry Cargo Movement Computer System and Supply and Installation of Computers and communication Equipment for the ports of Ilychevsk and Poti-1,5 mln Euro;2. Cargo Container Handling Equipment for the ports of Baku, Turkmenbashi, Poti, Ilychevsk-5,825 mln Euro;3. Supply of Navigation Equipment to the ports of Baku,Aktau,Turkmenbashi-1,6 mln Euro;

ROAD:1. Rehabilitation of the Red Bridge and Construction of New TRACECA Bridge- 2,5 mln Euro

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THE ON-GOING 13 TAСIS PROJECTS:1. Analysis and Forecasting of Traffic Flows for the TRACECA Countries and

Interregional Transport Dialogue between the EU and NIS Countries 2. Maritime Training3. Improvement of Maritime Links between the TRACECA Countries and TENs4. Supervision over Reconstruction of the Gazi-Magomed Highway5. Training of Operational Air Transport Control Staff of South Ring States6. Regulation on the Transport of Dangerous Goods along the TRACECA

Corridor (under completion)7. Freight Forwarding Training Courses (under completion)

8. Development of Equipment Certification Centers for Transportation of Perishable Goods in Central Asia in the Frame of ATP Convention

9. Reconstruction of the Galaba-Termez Railway Line10. Navigational Channel for the Port of Turkmenbashi11. Development of Coordinated National Transport Strategies in the Central

Asian Countries12. Development, Master Planning and Feasibility Study for the Port of Aktau 13. Pre-feasibility study for the road Sari Tash-Tajik Border

FOR CENTRAL ASIAFOR CENTRAL ASIA

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THERE ARE PLANNED FOR IMPLEMENTATION8 PROJECTS MORE

1. Logistic Centres Network for All TRACECA Countries: Central Asia, Caucasus and European TRACECA

2. Strengthening of Transport Training Capacities in NIS Countries3. Rehabilitation of the Railway Line between Tbilisi and Yerevan4. Moldova Feasibility Study M-3 Road5. Ukraine Port Strategy Development and Feasibility Studies6. Development of Common Security Management System and

Cooperation in the Area of Maritime Safety and Ship Pollution Prevention for the Black Sea and the Caspian Sea

7. Training of Civil Aviation Administration and the Personnel Involved in the Air Transportation

8. Motorways of the Sea (MoS) for the Black Sea and the Caspian Sea

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GOODS TURNOVERGOODS TURNOVER IN THE TRACECA COUNTRIESIN THE TRACECA COUNTRIES

EC/PRC2004 – 175,6 billion $2005 – 209,79 billion$

TRACECA/PRC2004 – 13,96 billion$2005 – 19,64 billion $

TRACECA/EС2004 – 161,6 billion$2005 – 199,5 billion $

TRACECA Countries2005 – 27,05 billion $

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Implementation of the projects continues

In 2006 at the completion of TACIS, the EU will proceed with its support will be within the frame of:

TWO PROJECTS TO THE AMOUNT OF 14 MILLION EURO ARE PLANNED FOR IMPLEMENTATION :

EUROPEAN NEIGHBOURHOOD POLICY INITIATIVE (ENPI)

PROGRAMME FOR DEVELOPMENT AND COOPERATION

Transport Dialogue and Networks Interoperability between the EU and its Neighbouring Countries, and the Central Asian CountriesTransport Safety and Security

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Rail Ferry/Maritime

Rail/Road

PROJECTS REALIZATION IMPACTED TRAFFIC INCREASE

Setting into operation of tworailway ferry lines on theBlack and Caspian Seas

Road network projectsFor instance: construction of the bridge on the border between Georgia and Azerbaijan and the bridges in Azerbaijan

Poti–Ilychevsk–Varna – more than 4 M. t.Baku–Aktau–Baku – more than 2 M. t.

(since 2001 up to date)

in Azerbaijan – more than by 25%, In Gergia – more than by 30%(in 2005 in comparison with 2000)

Poti/Batumi–Baku – 14 -15 M. t/year(in 1995 - 400-500 thousand tons)

Railway infrastructure development

STRATEGY PILLARSOF THE IGC TRACECA :

STRATEGY OF THE INTERGOVERNMENTAL COMMISSION TRACECA FOR DEVELOPMENT OF INTERNATIONAL TRANSPORT CORRIDOR “EUROPE–THE

CAUCASUS-ASIA" FOR THE PERIOD UP TO 2015

SOUND, EFFECTIVE AND INTEGRATED MULTI-MODAL TRANSPORT SYSTEM ON THE LEVELS EU-TRACECAAND TRACECA-TRACECA

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THE MAIN PRIORITIES IN ACCORDANCE WITH THE STRATEGY OF THE IGC TRACECA FOR THE PERIOD

UP TO 2015 ARE AS FOLLOWS:

to ensure safety and security of transport through harmonization of legislation, institutional development and capacity building

improvement of transport infrastructure through identification of key bankable projects and their implementation by attracting investment from various sources and optimization of their use

THE FOLLOWING VITAL ISSUES WILL BE CONSIDERED AT THE IGC TRACECA ANNUAL MEETING

(22-23 NOVEMBER, 2007, ASTANA, KAZAKHSTAN):

• Action Plan for 2008-2009 for implementation of the TRACECA Strategy for the period up to 2015

• Amendments to clause 2, article 6 of the MLA (as regards introduction of preferential conditions and tariffs along the TRACECA corridor)

• Amendments to the Technical Annex to the MLA on Customs and Documentation Procedures (simplification and harmonization of customs procedures)

• Establishment of legal basis for multimodal (combined) transportation and freight forwarding activity

• Expediency of creation of the Investment Fund and Business Advisory Council of the IGC TRACECA (development of Public-Private Partnership)

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Goods turnover of CA countries with Russia – 10,5

milliard. EURO

Goods turnover of CA countries with China – 7,1

milliard EURO

Goods turnover of CA countries with India, Iran and Pakistan – 1,75 milliard

EURO

Goods turnover of CA countries with the EC

countries – 15,0 milliard EURO

ANALYSIS OF GOODS TURNOVER IN CENTRAL ASIAN COUNTRIES

2005 - http://ec.europa.eu/trade/issues/bilateral/regions/index_en.htm

Goods turnover among CA countries– 1,2 milliard EURO

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MAIN FACTORS TO ENSURE FURTHER DYNAMIC DEVELOPMENT OF THE TRACECA

CORRIDORGeo-strategic situation of the TRACECA countries, especially the Central Asian countries neighboured by China; Active development of the routes passing through the TRACECA countries, including construction of the lacking and new “straightening” transport links in the corridor system in the near future;Further development of container traffic along the TRACECA corridor extended towards China;Increase of container flow on the existing ferry lines Varna (Bulgaria)–Ilychevsk (Ukraine), Varna–Poti / Batumi (Georgia), Ilychevsk–Poti / Batumi and Ilychevsk – Derindje (Turkey), as well as on the perspective line Constantsa (Romania)– Samsun (Turkey)– Batumi / Poti;Growth of volumes of transcontinental freight traffic from China to the Caspian ports;Increase of crude oil transportation due to commissioning of the oil pipeline Baku-Tbilisi–Djeikhan and joining it by Kazakhstan;Construction of a grain terminal in the port of Poti, which will allow to connect other grain terminals in the port of Aktau and the recently established one in the port of Baku into a common transport chain;Taking measures to ensure all aspects of competitiveness of the TRACECA corridor by the MLA Parties with active support of EU.

TRACECA CORRIDORTRACECA CORRIDOR –– ““REVIVED SILK ROADREVIVED SILK ROAD”” waswas officially officially acknowledgedacknowledged by the leading international organizations as the natural by the leading international organizations as the natural

transit bridge connecting Europe with Asia transit bridge connecting Europe with Asia

The TRACECA experience shows that the initiatives in the field of regional integration facilitates more active participation of landlocked and transit developing countries in world economy

Thank you for attentionThank you for attention!!To obtain more detailed information on all aspects of the

TRACECA activities, please, contact us viaoffice@ps.traceca-org.org

or visit our site

www.tracecawww.traceca--org.ororg.orgg