Trans-GTR Transport Corridors: Financing Infrastructure Development

Priority Sector: Transport

Project Location: China, Republic of Korea, Mongolia, Russia

Timeframe: January-June 2014

Estimated Budget: USD 12,000

Sources of Funding: GTI and GIZ

Project Status: completed in June 2014

Background & Rationale

The development of international transport corridors is currently viewed as a best practice for pursuing regional cooperative activities to enhance seamless transportation within a region. These corridors act as a vehicle for countries to establish efficient intermodal transport and develop the logistics industry, providing opportunities to maintain the region’s competitiveness and increase the benefits of regional trade.

In 2010, at the Inaugural meeting of the GTI Transport Board, member governments adopted the GTI Transport Cooperation Program to map out the cooperative activities towards development of efficient regional transport system. Six transport corridors in NEA were identified as key for the regional connectivity (Figure 1) and the Integrated Transport Infrastructure and Cross-Border Facilitation Study for the Trans-GTR Transport Corridors (GTI Transport Corridor Study) was initiated to identify main infrastructure and non-physical bottlenecks for passenger and freight movement.

GTI Transport Corridor Study recommended list of “soft” measures and infrastructural projects for operationalization of the six corridors in the form of Regional Transport Strategy and Action Plan. Implementation of the Strategy and Action Plan will require both policy efforts, coordination in transport planning and investments in infrastructure. Infrastructure investments being massive money allocation require thorough analysis and planning.

The proposed study aims at extending the GTI Transport Corridor Study efforts by summarizing financial schemes available for member countries in the region and advising the appropriate options for the projects in the Action Plan.

Objective(s) 

The objective of the study “Trans-GTR Transport Corridors: Financing Infrastructure Development” is to ensure feasibility of the Regional Transport Strategy and Action Plan (Figure 1) through providing summary of possible options for financing infrastructure development available in accordance with national legislations and existing regional practices.

Expected Outputs & Activities

Expected project output is a report containing:

-         summary of financing forms for transport infrastructure construction projects currently used in GTI member countries: service, management or lease contracts, concessions, build-operate-transfer and similar structures, etc.

-         summary of financing forms, promoted by, possible or allowed under current legislation of member countries in provinces within the GTR, relevant to the projects, listed under the Regional Transport Strategy and Action Plan;

-         suggestions for financial options suitable for the cross-border transport investments;

-         suggestions on financial options for each of the projects under the Action Plan.