The Asian Development Bank (ADB) has approved the regional financial mechanism BUILD amounting to $400 million. The goal of this mechanism is to upgrade border checkpoints, reduce transport and logistics costs, and improve the movement of people and goods within the Central Asia Regional Economic Cooperation (CAREC).
The financing provided through the BUILD program will be directed towards priority investments in border infrastructure, strengthening connectivity, and enhancing competitiveness among CAREC member countries.
The Importance of Border Crossings
Leah Gutierrez, Director General of ADB for Central and West Asia, emphasized that borders are not merely checkpoints but gateways for job creation, regional market development, and expanding income opportunities.
Gutierrez added that thanks to the BUILD mechanism, CAREC countries will be able to create more modern, faster, and better-connected border crossings. This is expected to help eliminate inefficiencies, bring economies closer together, expand cross-border markets, and develop economic corridors.
The modernization efforts are aimed at resolving current bottlenecks at border crossings along CAREC transport corridors. These issues include slowed movement due to trade restrictions, infrastructural barriers, capacity limits, and outdated border management procedures.
According to ADB estimates, existing border restrictions lead to economic losses and create difficulties for carriers, traders, and passengers, while simultaneously increasing risks related to human trafficking, environmental degradation, and public health threats.
The funds allocated under the BUILD mechanism will be directed to priority projects at both railway and road border crossings in CAREC countries. Planned measures include the construction of modern infrastructure, the implementation of digital systems, and the installation of high-tech equipment for inspection and control.
Furthermore, the initiative provides for the optimization and harmonization of border control procedures to reduce crossing time and associated costs. The mechanism also supports strengthening institutional capacity, reforms in the transport and logistics sectors, and stimulates private sector participation.
The BUILD initiative aims to create opportunities for private investment while supporting micro, small, and medium-sized enterprises in areas such as agriculture, tourism, and transport services, allowing them to participate more effectively in regional trade.
The CAREC program includes countries such as Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, China, Tajikistan, Turkmenistan, Uzbekistan, and Uzbekistan. Program members cooperate with development partners to promote sustainable growth through regional interaction, with the ADB serving as the CAREC Secretariat.
The Asian Development Bank, established in 1966, belongs to 69 members, 50 of which are located in the Asia-Pacific region.