Developing the infrastructure of the Middle Corridor (the Trans-Caspian route connecting China and Central Asian countries with Europe via the Caspian and Black Seas) will require nearly $28 billion in investment over the next 15 years, World Bank Regional Director for the South Caucasus Rolande Pryce said during the First Azerbaijan International Investment Forum.
According to World Bank estimates, the investment needs for the Middle Corridor's infrastructure will amount to around $28 billion over the next 15 years, and out of this, $25 billion is required for railways and $1.8 billion for the expansion and modernization of ports, Pryce was quoted as saying by the Azerbaijani agency Report.
Currently, bottlenecks arise at the points where different modes of transport intersect, Pryce said. For example, they occur when transitioning from maritime to rail transport, which limit the route's capacity, and it is these issues in particular that need to be addressed first.
Another important problem is that it is now necessary to pass through many different countries, and it is therefore extremely important to harmonize approaches in the digitalization of procedures and regulation to make the transition for corridor users as seamless as possible, she said. The World Bank is very actively involved in developing and strengthening the corridor, Pryce said.
Multilateral development banks do not have sufficient funds to fully meet existing demands, and the World Bank is increasingly refining the partnership model, attracting private capital and working with governments along these lines, she said.
