The Asian Development Bank (ADB) has approved a regional financing mechanism of $400 million for the modernization of border crossing points in countries of the Central Asia Regional Economic Cooperation (CAREC) program.
The BUILD mechanism (Border Upgrades for Integration, Logistics, and Development) is aimed at supporting projects to update border infrastructure, develop transport corridors, and improve the movement of goods and people between countries in the region, the bank explains in its press release.
“Borders are not just checkpoints. They are gateways to job creation, regional market development, and expanded opportunities for income generation,” said Lea Gutierrez, ADB’s Vice President for Central and West Asia.
According to her, through the BUILD mechanism, the bank will help CAREC countries create more modern and interconnected border crossings, reduce trade inefficiencies, and strengthen economic ties between states in the region.
The ADB notes that despite growing trade and transport infrastructure development in recent years, border crossing points remain one of the main constraints for CAREC economic corridors. The reasons cited include increased trade volumes, insufficient capacity, outdated management systems, and the need for further digitalization of procedures.
These problems lead to additional costs for carriers, businesses, and passengers, and also create risks related to illicit trade, environmental issues, and public safety.
The BUILD mechanism funds will be directed toward modernizing road and railway border crossing points, implementing digital solutions, installing modern control and inspection equipment, and improving border management procedures.
Additionally, the program provides for support of transport and logistics reforms, development of institutional capacity, and expanded private sector participation.
The ADB expects that the mechanism will also create new opportunities for micro, small, and medium-sized enterprises, particularly in agriculture, tourism, and transport services, helping them participate more actively in regional trade.
The CAREC program includes Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, China, Tajikistan, Turkmenistan, and Uzbekistan. Program participants, together with international partners, are working on developing regional trade, sustainable infrastructure, and economic cooperation.
The ADB serves as the secretariat of CAREC and is one of the largest multilateral development banks supporting projects of sustainable growth and infrastructure development in the Asia-Pacific region.
