Feasibility Report on Tunnel Forming in Pakistan by ynt45324

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									  Economic Cooperation Organization
             Secretariat




ECO PROSPECTS AND CHALLENGES
 in Transport & Communication Sector




             Tehran-Iran
           September, 2002




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                       CONTENTS


   Foreword

   Transport system in ECO region
    -Overview
    -Background
    -Economic situation
   ECO objectives and goals in transport sector
    -Undaunting challenges
    -ECO strategy
   Decisions/recommendations of Ministerial Meetings
    -1st Ministerial meeting
    -2nd Ministerial meeting
    -3rd Ministerial meeting
   Review of important developments
    -1st Ministerial meeting
    -2nd Ministerial meeting
    -3rd Ministerial meeting
   Country Reports; Status and trends.
    - Afghanistan
    - Azerbaijan
    - Iran
    - Kazakhstan
    - Kyrgyzstan
    - Pakistan
    - Tajikistan
    - Turkey
    - Turkmenistan
    - Uzbekistan
   Issues at stake
   Country Profiles
   ECO in figures.
   Relevant maps


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                                  FOREWORD


        This brief publication is one of its kind ever brought out under the
supervision of the ECO Secretariat. It is undoubtedly far from perfection, which can
be further improved, both in terms of its contents and presentation. However,
incomplete information in transport development in member states has almost
restrained us to embark upon this adventure. The 10th anniversary of the expansion
of ECO from a 3-member to 10-member organization encouraged us to compile
whatever data and material we could collect from different sources and weave them
into an essay on the evolving transport system in the region.


       The product understandably requires lots of improvement, particularly in the
field of more updated data and information on development strategies in the
member states. The publication will be revised and improved in the light of the
views of the member states as well as the general reader.


        Finally, yet importantly, this publication may not have seen light without
the active support of the His Excellency Seyed Mojtaba Arastou, Secretary General
ECO and assistance of Mr. Fazli Sak, Programme Officer (Directorate of Economic
Research & Statistics) and Mr. Bijan Moshir-Vaziri, Programme Officer
(Directorate of Transport & Communications).


        Mr. Mohammad Javed, Steno-Secretary was also a great help in collecting
some basic material on the decisions of the ministerial meetings in this sector as
well as typing the major part of publication.




                                                                 Sanaullah
                                                        Deputy Secretary General
                                                    (Transport & Communications)




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                         Transport System in ECO Region

Overview

1.      Today, it is universally accepted that external factors such as economic,
trade and population trends highly influence the achievements/developments in
transport and the related infrastructure. Rapid socio-economic developments
generate a high demand for infrastructure facilities and services, while limited
infrastructure or capacity, especially in various modes of transport and
communications, may well hinder further socio-economic development.

2.      In ECO region, development of transport sector for regional cooperation
assumes greater dimension as seven out of its ten member states are landlocked
countries and remain dependent on transport for developing their economies. The
high transport costs have been negatively impacting their imports as well as making
their exports expensive. The development of transport system in ECO region,
therefore, is a sine qua non in creating supportive edifice to ensure integration of
the economies of the new member states with countries beyond ECO region. In this
spirit, ECO has been attaching top priority to the development of efficient and
seamless movement of cargo and passengers by road, air, and rail. Many useful
programmes in this regard have been chalked out, both using the indigenous
resources as well as the technical and financial support from international
organizations.

3.      In view of the realization of the significant role an efficient transport system
can play in shaping economies, the member states have been sensitive to ECO
policies and programmes. As a result, the ECO activities in this regard have been
much more than the activities in other priority sectors such as trade and energy.
Since the expansion of ECO from three to ten members, three Ministerial meetings
have taken place in this sector. The salient decisions taken at these meetings have
been included in the booklet to refresh our memories of past decisions and priorities
of the member states.

4.     ECO achievements in this sector have been modest. Nevertheless, the
Secretariat is satisfied with the results given the odds and problems facing all
modes of transport in the region. It is a matter of pride that now the member states
have started a regular run of container train on Istanbul- Tehran- Tashkent- Almaty


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route of Trans-Asian Railway main line. However, their efforts to start a similar
ECO passenger train for which a pilot run was made from 14 March 2002 to 17
March 2002 did not succeed. It is hoped that the technical problems surrounding
this important project would soon be resolved and, as planned, the train would start
running from October 2002.

5.     In view of the importance of the decisions at the previous Ministerial
meetings, the Secretariat, under the guidance of the Secretary General, is placing
due emphasis on strong follow up mechanism to monitor, on regular basis, their
implementation. A recently prepared follow up report on the implementation of the
decisions of the three Ministerial meetings on Transport and Communications has
been included in this booklet for perusal.

Background

6.      A very preliminary look at the mutations taking place at the global level
which is involved in shaping and even creating new phenomena would show that
even the big economies are seeking shelters within various economic regional
grouping and blocks such as NAFTA, SAARC, EFTA, EU, ASEAN, APEC, etc.
This situation of course is, then, a reflection of the global atmosphere where small
economic entities are finding it extremely difficult to survive in a highly
competitive atmosphere.

7.      This trend originated after the end of Second World War. However, with the
end of the cold war in late 80s geographically contiguous and culturally
homogeneous regions started evolving into groups and blocks. In this sprit, the
Regional Cooperation for Development (RCD) established by Iran, Pakistan, and
Turkey in 1964 was restructured and revived under its present name of Economic
Cooperation Organization (ECO) in 1987. ECO was fully launched in early 1991 as
an inter-governmental organization with an aim to promote regional economic
cooperation. In November 1992, the Organization gained a new momentum, when
Afghanistan, Azerbaijan, and Central Asian countries of former Soviet republics
namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan decided to
join it. The new members shared cultural and historical affinities. In the new
environment, they saw new opportunities for raising the standard of living for their
citizens.

8.     As the new members of ECO endeavoured to open up to the outside world
and transform their economies from centrally planned to market oriented ones,


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cooperation in the main pillars of economic structure e.g. transportation, trade,
energy and agriculture become pressing priority sectors of cooperation in the ECO
region.

9.       The accession of seven new countries to ECO was a significant event in the
life of the Organization. The region encompassed about 8 million sq.km comprising
one of the richest parts of the world. It is full of complementarities and potential in
terms of the opportunities offered by oil and gas, mineral resources, hydroelectric
power and human resources dynamics. To this end, various numbers of ECO
projects and programmes have been evolved since 1992 for integration of the ECO
economies into the global market place.

10.      Because of its central geopolitical location, the ECO and its members, act as
an important bridge between this region and other regions of the world. All the ten
member states of the ECO are members of the organization of Islamic Conference
(OIC). The Caucasian and Central Asian member states of ECO have many deep
economic links with Russia and with the CIS, with whom they share lines of
economic communication and population intermingling since the Soviet era and
beyond. All those countries are members of OSCE. Three ECO countries such as
Pakistan, Turkey, and Kyrgyzstan are full members of WTO. Turkey is a bridge by
itself, sitting as it does, on two continents simultaneously; it is also a member of
NATO, the EU Custom Union and an associate member of the EU. Pakistan is a
member of the SAARC, which is a group of seven member states of the South Asia.
Iran is a member of OPEC and it has a leading role in the crucial waterways of the
world.

11.     Soon, ECO will be completing its first ten years of existence. During this
short period, ECO has come a long way in pursuing its goals/objectives. The return
of normally in Afghanistan this year came as a challenge for the ECO members to
demonstrate their regional solidarity to assist one brotherly state in its
reconstruction drive. ECO is taking concrete steps to contribute towards
development and stability in Afghanistan. The member countries have shown
unswerving commitment to work together for achieving progress and prosperity in
Afghanistan as well as in the region.

Economic Situation

12.  In 1998, three quarters of Central Asian countries exports were primary
commodities (in particular, oil and gas). Major export market for majority of them


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is still the Russian Federation, which received one third of its exports. However,
lately Central Asia has started diversifying its export commodities and destinations.
New partners in trade include China, Turkey, and Eastern European countries.

13.     All the Central Asian countries remain in transition and the advantages of
new trade opportunities cannot be optimized due to bottlenecks in physical
infrastructure, institutional capacity, and regional cooperation. Nevertheless, the
past two years witnessed considerable progress in stabilizing economic growth
across the region. The Caucasian and Central Asian member states of ECO took
significant strides towards market economy, particularly in the areas of
privatization and liberalization. On the other hand, the founding members namely
Iran, Pakistan, and Turkey suffered in varying degree from the global economic
recession.

14.     The impact of globalization has been evident in the region with increasing
inter and intraregional trade. This has stimulated a demand for development of
infrastructure, creating new financing challenges, and increasing the focus of the
governments on efficiency and integration of all transport modes. In view of the
crucial importance of transport and communications for promotion of regional
economic integrations, detailed orientation of ECO in this field can be described as
follows;

ECO Objectives/Goals in Transport Sector

15.     The Izmir Treaty which provided the basis for establishment of ECO, called
for "accelerating the development of Transport and Communications infrastructures
linking the member states with each other and with the outside world." To facilitate
this, the ECO Secretariat annually plans eleven to fourteen ECO and non-ECO
events. Besides, the member states in May 1998 adopted the Transit Transport
Framework Agreement (TFA), heavily drawing on TIR convention. TTFA could
become the key driver of all activities related to the removal of non-physical
barriers, to the harmonization of operations and regulations, and the accession by
member states to international transport conventions and standards.

16.    The objectives for development of transport infrastructure in the region
were set out in the Quetta Plan of Action, adopted by the ECO Council of Ministers
in February 1993. These objectives were reinforced in the ECO's Long Term
Perspectives (Istanbul Declaration), endorsed by the 2nd ECO Summit, in July,
1993. Following this, in October 1993, the ECO Ministers of Transport and


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Communications adopted the Almaty Outline Plan for the Development of the
Transport Sector in the Eco Region. This plan was the basis for the Program of
Action for the ECO Decade of Transport and Communications, and the Program,
adopted by the 2nd Ministerial meeting on Transport and Communications
(Ashgabat, March 14, 1998) and subsequently endorsed by the 8th Meeting of the
Regional Planning Council (Tehran, April 19-21, 1998) and by the 8th meeting of
the Council of Ministers (Almaty, May 9, 1998).

Undaunting Challenges

17.     The challenges confronting ECO members in this field can best be
understood by looking at the geographical fault lines in ECO sub region. Seven out
of the 42landlocked countries in the World are located here. The shortest distance
for any of the landlocked countries to a coastal line is not less than 2000 km.

18.    The challenges are clearly beyond the ECO capacity. The railway intensive
transport system in Central Asian Republics is in real bad shape. The infrastructure
is crumbling. The situation is slightly better in other member states. The system
needs huge investment to make it work efficiently. International traffic worthy
roads are scarce with plenty of missing links in the region.

19.     Technical difficulties such as different gauges, different sizes of cargo
bogies, lack of bogie change facilities at border crossing points and absence of a
joint manufacturing and maintenance facility for rolling stock are gigantic.
Additionally, the introduction of new information technology in the region is
required to bring the transport system of the land locked developing countries to a
minimum acceptable level of efficiency. Unfortunately, the respective governments
do not have adequate financial resources to maintain or modernize rail and road
infrastructure.

ECO Strategy

20.      The methodology applied to achieve the ECO objectives in this field was
three pronged. Firstly, an attempt was made to identify the missing road and rail
links to build adequate infrastructure. Since the Secretariat had no financial means
to finance such a capital-intensive projects, member states undertook to complete
the missing links through their national budgets. It was decided that the ECO
priorities would get a prominent place in national development planning. Secondly,
through an elaborate system of expert level groups, workshops and accession to


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international agreements and treaties were pursued to harmonize rules/regulations,
build common rail tariff policy and initiate seamless passenger and container train
etc. The objective was largely to remove logistic, administrative and legal
impediments basically encountered at boarder points. Thirdly, measures were
undertaken to strengthen institutional capacity both at the Secretariat and within the
member states to benefit from technical advice from international rail and road
associations as well as UNCTAD and UNESCAP.

Decisions/Recommendations of Ministerial meetings

21.       First Ministerial meeting. Almaty (Kazakhstan)
          (25-27 October 1993)
Agreed conclusions decisions and recommendations
      -   Enable trucks to travel from one end of the region to the other in
          accordance with internationally accepted standards and by routes prescribed
          by the member states.

      -   Expand and integrate national railway networks to permit transportation
          by rail across the region.

      -   Expand air connections to provide air connection between the capitals and
          major cities of each of the ECO countries at least once a week.

      -   Develop port facilities to handle the sea-borne trade of the region.

      -   Conclude bilateral or multilateral agreements within or beyond the region
          that may be necessary to facilitate such transport including access through
          new border and custom posts that may be established.

      -   Recommended the ECO Secretariat to submit the Outline Plan to the
          Council of Ministers of ECO in the established order with the objective of
          including in the National Programs of Transport Development and
          providing own financing along with the possibilities of international
          financing. Moreover, to carry out the Plan’s activities in cooperation with
          related international organizations.




                                            9
      -   Complete designing, construction of missing links and reconstruction of
          existing parts of ECO Road Network at its own expense and with
          international financial assistance.
      -   Study border-crossing and related custom problems with the objective of
          bringing the border points in accordance with expected traffic density.

      -   Consider the possibility of acceding to International conventions on road
          and rail transport modes in relation to facilitation measures. Complete the
          preparation and signing of bilateral Inter-Governmental agreements on
          International transportation of goods and passengers.

      -   Identify financing sources and start projecting and constructing of the
          railway lines:
                 1. Kushka (Turkmenistan) – Hirat (Afghanistan) – Kandahar
                    (Afghanistan) – Chaman (Pakistan)
                 2. Serakhs (Turkmenistan) – Meshad (Iran) – Merman (Iran); 3.
                    Zahedan (Iran) – Mirjava (Iran); Meshad (Iran); Bandar
                    Turkaman (Iran) – Ghizil Atrak (Turkmenistan) – Ghazanjagh
                    (Turkmenistan). To provide shortest connections of landlocked
                    countries to Persian Gulf Ports and Ports of Karachi and Qasim
                    (Pakistan) in Arabian Sea.

22.       Second Ministerial meeting. Ashgabat (Turkmenistan)
          (14 March 1998)
Agreed conclusions decisions and recommendations
      -   Welcomed the draft Transit Transport Framework Agreement (TTFA) as
          formulated with assistance of the UNCTAD and considered during a
          conference held on 18-20 November 1997 in Ashgabat with the
          participation of the ECO member states.

      -   Recommended that to ensure timely implementation of the projects
          included in the Programme of Action for ECO Decade on Transport and
          Communications (1998-2007), the participation of the private sector in their
          implementation be encouraged and funds from international financial
          institutions be sought for specific projects of the member states on the basis
          of bilateral and multilateral arrangements.



                                           10
-   Encouraged the member states to expedite national level actions on the
    Regional Action Programme and to nominate national focal points and
    priority projects, in accordance with the ESCAP request, if they had not
    already done so.

-   Recalled para 5 of the Ashgabat Declaration issued by the ECO
    Extraordinary Summit held in Ashgabat in 1997 in which it was provided
    that in view of the urgent need for the development of ECO region’s rolling-
    stocks, close cooperation amongst the ECO member states be promoted for
    manufacturing and repairing of locomotives, passengers carriages, freight
    cars, containers and other railway equipment, using ECO countries’ own
    resources as well as preferential credits of international financial institutions
    issued under the guarantee of the governments of ECO member states and
    other financial sources.

-   Noted with appreciation the offer of the Islamic Development Bank to
    sponsor a study on restoration of capability of the railway locomotives
    belonging to the Central Asian members of ECO and to assist with the
    establishment of cooperation among all the ECO member states for
    maintenance and operation of their locomotives and rolling stock.

-   Decided that implementation of para 5 of the Ashgabat Declaration should
    be expedited and urgent measures should be taken to conduct the IDB study.
    After the results of the IDB study are available, the Secretariat will set up a
    High-Level Experts Group to examine and evaluate the recommendations
    and evolve necessary actions.

-   Decided to establish a Permanent Commission on Transport and
    Communications in Ashgabat in pursuance of para 16 of the Ashgabat
    Declaration. The member states were accordingly requested to nominate
    their representatives for the Experts Group as soon as possible and inform
    the Secretariat by the end of May 1998.

-   Directed to prepare a compendium of laws, rules and procedures governing
    road, rail and air-transport, customs rules and procedures, trade practices as
    well as the postal and telecommunications network available in the member
    countries. This information may also please be made available in a website
    on Internet. Preparation of a directory of industries and services available in



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          the member countries, specifically in the Transport and Communications
          sector.
      -   Decided to exchanging information in respect of training facilities available
          in Transport and Communication sector in the member countries.

      -   Agreed that for undertaking consultancies, the potential available in
          member countries would be utilized to the maximum and hiring of
          consultants from the countries which are non-member of ECO be avoided as
          far as possible.

23.       Third Ministerial meeting. Islamabad (Pakistan)
          27-28 April 2000
Agreed conclusions decisions and recommendations
      -   Decided to indicate the average speed of the container and/or block trains of
          1000 km per day (24 hours) along the “East-West” and “North-South”
          Transport Corridors at national level as the target value to be achieved in
          future.

      -   Highlighted that the completion of the Bafq-Meshhad, Kerman-Zahedan,
          Bosphorus Tunnel Crossing, and other missing railway links were of vital
          importance to the ECO Region. On the other hand, the importance of
          construction of Chamman-Herat-Kushka railway link was also highlighted.

      -   Endorsed the decision of the 4th meeting of the Heads of ECO Railway
          Authorities to set up an Experts Group to study and formulate a flexible
          tariff policy for economical and efficient organization of railway
          transportation in the ECO region. However, Turkmenistan delegation
          expressed reservation regarding the above- mentioned decision.

      -   Decided to set up a committee consisting of countries, which have paid
          their initial equity shares to resolve problems of the ECO Shipping
          Company. This committee, in consultation with the ECO Secretariat and its
          Legal Adviser, will revise the Articles of Association of the said company
          in accordance with the relevant laws and regulations and make appropriate
          decisions on the new status of the company.

      -   Emphasized the importance of ratification of TTFA by all signatory
          member states at the earliest to make it operational within the year 2000 and


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    recommended to the relevant authorities in the Member States to designate
    their representatives to the Transit Transport Coordination Council
    according to Article-1 of the TOR of the TTCC by October, 2000 at the
    latest.

-   Recommended to the 1st meeting of the ECO Civil Aviation Authorities
    and Heads of National Airlines held in Karachi on 12-14 February, 2001 to
    consider:

    (a)    the expediency of further development of ECO Air project, as well
           as
    (b)    the possibility for the non-signatory Member States to join ECO Air
           or
    (c)    the possibility of introducing instead of ECO Airline an ECO Air
           Pool within the ECO region particularly among the capitals and
           major cities of the member states and among the popular tourist
           centers in the region.

-   Took note of the enormous potential for growth of postal business in the
    ECO region and the scope for more closer collaboration between the postal
    administrations of the member states to mutually exploit and avail the so far
    unexplored opportunities in postal market. With a view to ensuring the
    development of cooperation between them, it was decided that qualified
    postal officials should in future be invited from each member country to
    participate in the meetings of the Directors General of Telecommunications
    and Postal Authorities. One full session should be reserved for discussion
    on postal matters, in future meetings.

-   Noted with appreciation the signing of the Technical Assistance Grant
    Agreement between ECO and IDB concerning the Introduction of
    Multimodal Transport Operations in the ECO Region on 11 September,
    1999 and confirmed the obligations of ECO as envisaged in this Agreement
    as well as requested the relevant authorities in the member states to
    implement the ECO/IDB/ESCAP/UNCTAD Work Programme properly as
    scheduled.

-   Recommended to the member states to nominate their national
    coordinating departments to deal with the above-mentioned
    programmes/projects and corridors to facilitate smooth coordination with


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       the ECO Secretariat and furnish the particulars of their focal points to the
       Secretariat.

Review of Important ECO Decisions

Overview

24.    Three Ministerial meetings held in 1993, 1998 and 2000 took far reaching
decisions. Nevertheless, some long-term issues have run from the first to the third
Ministerial meeting without making substantive progress. The long gestation period
and heavy capital investment needed for development of an efficient transport
system are mainly responsible for this sorry state of affairs.

25.    On its own the Secretariat has been following the methodology to monitor
progressive implementations of the decisions by asking a) member states to
undertake completion of the missing links through their national budgets, b) pursue
harmonization of rules/regulations, removal of logistic, administrative and legal
impediments basically encountered at border points.

Ministerial meetings

26.     The 1st Ministerial meeting on Transport and Communication, which was
held in Kazakhstan on 25-27 October, 1993 basically focused on the identification
of a vision allowing an unimpeded movement of vehicles and railway equipment
from one end of the region to the other in accordance with the internationally
accepted standard and the rules prescribed by member states. The meeting
succeeded in defining a strategy contained in the Outline Plan contained in Quetta
Plan of Action as well as in the Istanbul Declaration. The meeting set out certain
targets and sincerely believed that given the political support and genuine need for
the six landlocked countries for access to coastal area, the goal poles would be
maintained. In this context, national governments were requested to ensure
construction of missing links with regard to road and railway tracks at their own
expense and where possible with international financial assistance.

27.    Nevertheless, the 1st Ministerial meeting set out very high targets and too
ambitious deadlines. For instance, construction of missing road and rail links were
to be completed by 2000, accession to International conventions on road and rail
transport modes in relation to facilitation measures to be carried out by 1994,
completion of multilateral convention on transit regulations and a common system


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of Customs procedures in the region in accordance with international laws and
conventions to be created by July 1994. No doubt, the high target forced a pace
which was perhaps then needed to galvanize the newly expanded ECO into a fast
track mode.

28.    In line with the decisions of the meeting missing road and rail links in ECO
region were identified and the first edition of ECO road and rail network maps was
published. The process could not continue due to non-acceptance of the said edition
on political grounds by some countries. The member states were encouraged to
resolve their differences on this matter.

29      In order to implement multilateral convention on transit regulations and
create a common system of customs procedures in the region, the Transit Transport
Framework Agreement (TTFA) was devised in consultation with UNCTAD. The
same was adopted in May 1998. A lot more efforts were taken to finalize eight
annexes covering decisions taken by various expert groups meetings under the
jurisdiction of the Transport sector.

30.      The 2nd Ministerial meeting (1998) basically called for follow-up of the
long term plans approved by the First Ministerial meeting. These included timely
implementation of all projects included in the Programme of Action for ECO
Decade on Transport and Communications (1998-2007), as well as in the Almaty
Outline Plan such as participation of private sector in Transport development
projects and construction of missing road and rail links. Most of these infrastructure
projects were undertaken by respective member states as the Secretariat was neither
mandated nor had the financial and technical capacity to carry out such capital
intensive projects. The Secretariat merely worked as a “book keeper” to monitor the
activities of the member states in this respect. Uzbekistan completed 203 km rail
line (Uchkuuduk – Nukus). Kazakhstan strengthened 305 km rail track (Aktogai-
Druzhba). Iran and Pakistan took similar work to make their railways more
efficient. A lot more was done to strengthen road system in Iran, Pakistan and
Turkey.

31.     Specifically, the Second Ministerial meeting called for a study by the
Turkish authorities to formulate recommendations for bringing ECO road network
in line with the prevalent international standards. In this regard, a mention was
made to highlight identification of locations and constructions of “minimum road
infrastructure requirements (e.g. filling stations, vehicle service workshop, motels,
capes etc). Also, a draft Directory of ECO Road Network (in English and Russian


                                         15
languages) specifying the existing and planned road infrastructures. Unfortunately
both the proposed assignments have not been carried out due to lack of interest both
on account of the relevant Turkish authorities and the ECO Secretariat. Two years
ago on the eve of the 11th RPC, the Turkish authorities were requested to indicate
the cost for undertaking the study. The matter was not pursued further. Even the
draft Directory could not be completed for the same reason.

32.     In fact, it was not a good decision for the member governments to identify
locations for filling stations, workshops, cafes, and motels, etc. This should have
been left to the private sector as market forces alone could have determined the
most suitable locations and the number of facilities needed. The governments’
interventionist measures are no longer acceptable to the private sector and mainly
for this reason no member state took interest in pursuing the study. On the other
hand, the draft Directory could have been published as it meant mere compilation
of information already available in the Planning Divisions of the member states.
Perhaps, somewhere lurked serious doubts about its end use.

33.    Another decision provided for development of rolling stock in the region
through promotion of close cooperation among member railways in the fields of
manufacturing, repairing locomotives, passenger carriages, freight cars, containers,
and other railway equipment. The proposed study was initially delayed as it got
linked up to completion of an IDB funded study on the Introduction of Multimodal
Transport Operation. Later, UNDP sponsored a pre-feasibility study on the current
status of rolling stock in member railways, their capacity for maintenance and
manufacturing and an assessment of the potential for cooperation in maintenance
and manufacturing among member railways. UNDP, due to lack of necessary
funds, declined to sponsor the 2nd phase of the study. In fact, joint manufacturing
and maintenance of rolling stock was considered pre-mature given the current state
of cooperation among member railways. Immediate technical assistance in the
following areas were recommended;

       -   Railway data exchange systems - to assist in achieving the objective of a
           common information system.

       -   Tariff and pricing – to assist member states in the development of a common
           approach to evolve competitive tariffs and fares.

       -   Passenger ticketing systems and freight way bills system.




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34.     The above recommendations did not receive any response from member
states. The subject still enjoys some priority with majority of member states.
Therefore, ECO Secretariat plans to hold a workshop on the issue in 2003, subject
to the approval of the 13th RPC.

35.     The meeting also encouraged all member states to consider speedy
accession not only to all the transport conventions listed in the UN-ESCAP
Resolution 48/11 but also to the Convention on Transit Freedom Status (Barcelona
Convention, 1921), Transit Trade Convention of Land-Locked Countries (New
York Convention, 1965) and the International Convention on Simplification and
Harmonization of Customs Procedures (Kyoto Convention, 1973). The Secretariat
circulated copies of these Conventions among the member states and on regular
basis, kept urging the member states to sign and ratify these conventions.
Considerable progress is in evidence.

36.      In line with another decision of the meeting, efforts were and continue to be
made to collect laws, rules governing the use of roads, rails customs and postal
facilities. Those available were placed on ECO Website. With regard to use of local
consultant, the Secretariat has already received a formal undertaking from UNDP
for employment of consultants from ECO member states.

37.     Also a decision was taken to promote HRD and training as part of ECO
measures to improve transport system in the ECO region. However, no specific
action was carried out by the Secretariat to implement this decision due to lack of
requests from member states. Nevertheless, ECO-UNDP Capacity building project
as well as ECO-IDB/UNESCAP/UNCTAD Multimodal Transport Study envisaged
many such opportunities.

38.     The Ministerial meeting also called for early implementation of the
IDB/UNESCAP/UNCTAD/ECO Multimodal Transport study project, initiated in
1998. The project has taken off with much difficulty. Local consultants have now
been appointed for Turkey, Azerbaijan, Pakistan, Kyrgyzstan, and Tajikistan.
Nominations from Iran, Kazakhstan, Turkmenistan, Afghanistan, and Iran are
awaited. The delay in selection of local consultants has delayed the subsequent
developments including scheduling of workshops in member states, engagement of
international consultant and release of funds by IDB for the project.




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39.    The key recommendation of the meeting was the finalization of the Transit
Transport Framework Agreement (TTFA). As directed, the endorsement of the 8th
meeting of the COM (Almaty, May 1998) was obtained for the Agreement.

40.    The 3rd Ministerial meeting, held in April 2000, took stock of many issues
discussed earlier in the 1st and 2nd Ministerial meetings on Transport and
Communications. Prominently among those included completion of rail and road
missing links, publication of a detailed directory for drivers of the road transport,
early operationalization of PCTC, circulation of ECO Road and Railway Network
Maps as well as ratification of TTFA and early implementation of
ECO/IDB/UNESCAP/UNCTAD Joint Project on Introduction of Multimodal
Transport Operations in the ECO region.

41.     In addition, the meeting set up an Experts Group to study and formulate a
flexible Tariff Policy for economic and efficient organization of railway
transportation. An Expert Group, which was set up to implement this decision,
recommended an MOU on ECO Railway Tariff Policy instead of adoption of
ECORTP. A draft MOU was circulated among member states and so far only
Kazakhstan Railway authorities has furnished its comments. There is a need for a
flexible rail tariff policy but it has to be determined on the basis of commercial
viability and easy use of concerned railways officials/operators. The task is not easy
as it involves harmonization of the existing tariff policy in six CARs with other
member sates.

42.     Any forward move on the Turkish proposal regarding introduction of ECO
Multimodal Quota for Road Transport Permits and harmonization of bilateral road
permit prices was for stalled as the proposed meeting of the concerned Working
Group was postponed at the request of Turkey in 2001. The matter was not pursued
in the 12th RPC held in March 2002.

43.     The 3rd Ministerial meeting also called for setting up of a committee to
resolve some outstanding issues of ECO Shipping Company. The said Committee
was set up in 2002 which looked into the affairs of the Company. Its report
suggested that the changes effected in the Articles of Associations were not in
violation of the original Articles of Association. Pakistan as a signatory country
which had paid (besides Iran) its due share, contests this report.

44.   Another decisions related to establishment of a Permanent Commission on
Transport and Communication. The 3rd Ministerial meeting on April 27-28, 2000


                                         18
(with Turkmenistan abstaining) approved the Terms of Reference of the
Commission. TORs were devised to provide technical advice to the Directorate
(Transport and Telecommunications). Also PCTC was expected to expedite
implementation of all transport issues as well as active ECO involvement at
planning level in Member States; eliminating non-physical barriers and resulting in
increased harmonization of national legislations and regulations in the transport
sector within the framework of Ashgabat Declaration. The expectations seem too
lofty to fit the present scenario.

45.     The establishment of this additional institution (PCTC) is likely to have
serious implications for the existing Directorate (Transport and Communications).
It seems that this aspect has not been seriously considered.

46.     Except that Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, Uzbekistan,
Turkey, and Iran have nominated their representatives to PCTC, there has not been
any active support for scheduling of the meeting of PCTC, which is essential to
operationalize PCTC. Partial hospitality by the Secretariat has failed to elicit a
favourable response to this effect. The meeting, as a result, has been postponed
thrice. The establishment of PCTC needs to be reviewed in the light of these
developments.

47.     The decision to develop an ECO Air project was reviewed at the level of
Heads of National Airlines in February 2001. A new idea emerged in its place,
which called for a Framework Agreement for enhancing cooperation among
member states. Work with regard to compilation of views of member states in this
regard is underway.

48.   The Ministerial meeting also considered the implementation of the Plan for
Development of Telecommunication in the ECO region, particularly, accession of
the members states to TAEFOS. TAEFOS now works to the mutual satisfaction of
its members which include Iran, Turkey, Turkmenistan, Kazakhstan and
Uzbekistan.

49.    The meeting also took note of the enormous potential for postal business in
the ECO region. It was perhaps an over statement as the subsequent inquiries
revealed that there was not enough business to initiate Urgent Mail Service (UMS)
among member states. Nevertheless, Kazakhstan has now offered to hold the 13th
meeting of the Directors General of Telecommunication and Postal authorities in



                                        19
October 2002. The meeting is likely to look into issues related to the development
of postal sector in the ECO region.

50.     The Ministerial meeting recommended to the Member States to nominate
their national coordinating departments to deal with the Project Working Group
(PWG) on Transport and Border Crossing Facilitation under UNESCAP/UNECE
Special Programme for the Economies of Central Asia (SPECA) and Global Rail
Corridors Task-Forces’ activities as well as ECOI/IDB/ESCAP/UNCTAD Work
Programme on the Introduction of Multimodal Transport operations in the ECO
region to facilitate smooth coordination with the ECO Secretariat and furnish the
particulars of their focal points to the Secretariat was realized. So far Azerbaijan,
Kyrgyzstan, Pakistan, Tajikistan and Turkey countries have conveyed their names
to the ECO Secretariat.

51.     The potential for cooperation matches the challenges available in Transport
sector in ECO region. A little more conversion of political will and commitment
into concrete support for agreed decisions will bring us closer to realization of our
goals in this priority sector. Also, if member states may pause as they move along
the path of consolidation of regionalism to reflect on their decisions in the light of
new experiences and priorities and also if they are willing to cast away the
unnecessary burden to refocus their energies on doable priorities, the destination
will no doubt draw nearer.

                            COUNTRY REPORTS
52.     The following paper on status and trends in the development of transport
infrastructure has been prepared in accordance with the available information for
countries of the ECO region.

Afghanistan

          War has not only devastated the existing infrastructure and deferred
maintenance in Afghanistan but also prevented new investment from taking place,
which would have raised the services above the prewar levels. In fact, it is difficult
to understate the low base from which reconstruction will begin. Major
infrastructure bottlenecks need to be removed in order to stimulate early economic
recovery and growth in Afghanistan. Immediate challenges include establishing
communications systems, removing major transport bottlenecks and re-establishing
safe emergency air traffic services.


                                         20
          The national road network is in poor condition. Significant numbers of
bridges and causeways are damaged or destroyed. For example, 128 km of the 227
km Torkham–Jalalabad–Kabul road (crucial both for trade and for relief shipments)
is so damaged that it takes 4 days for a truck to make a return trip between
Peshawar and Kabul, a journey that used to take less than a day. The extent to
which roads are seeded with land mines is unclear, but this is likely to be a
significant problem in the short term. Few rural villages have all-weather road
access.

        Petroleum storage facilities around major urban centers have been destroyed
and transport costs of imported fuels are inflated by the high costs of road transport.
Natural gas used to be a major export, but gas fields have ceased to operate and
wells have been capped.

       Urban infrastructure is also severely damaged or destroyed: about 40% of
roads are damaged and communications facilities are seriously underdeveloped.
Access to telecommunications is one of the lowest in the world with only 2
telephones per 1,000 people.

Roads

        For a mountainous, landlocked country like Afghanistan, roads and airports
are vital for transport, for international trade, to facilitate national integration, and
to avoid supply bottlenecks that create inflation. The road network comprises about
5,800 kilometers (km) of national roads, of which 3,100 km are primary highways
including 2,400 km roads that were originally paved. The national primary road
network largely consists of the ring road (Herat-Kandahar-Kabul-Mazar-i Sharif-
Shibergan-Maimana-Herat) and the six international links to neighboring countries.
The remaining network of 2,700 km secondary national roads and 15,000 km
provincial roads is either gravel or earthen.

        The coverage and condition details of tertiary road network consisting of
village access roads are not known, except that these roads are all unpaved. More
than two decades of conflict combined with a prolonged lack of maintenance has
resulted in damages to long sections of roads, critical structures, bridges and other
significantly high transportation costs. According to the last condition survey
undertaken in 1994, 17 percent of the network was in good condition, 35 percent in
fair condition, and the remaining 48 percent in poor condition. Based on recent



                                           21
information some sections of the network, the road conditions have deteriorated
significantly.

         The first priority is to restore normal traffic operations on the main road
network, facilitating transport movements on key import/export links and main
corridors. A second early priority is to begin construction of the missing section of
the Ring Road (Herat to Shiberghan). To break the historic isolation of minorities,
it is also critical to initiate as soon as possible work on the Central-Afghanistan
roads connecting Kabul to Hazarajat, and Hazarajat to Herat and to Mazar-e-Sharif.

        Given the weak capacity of the private sector in Afghanistan, the initial
emphasis should be on utilizing local enterprises as subcontractors to large
international contractors, thus exposing local businesses to the quality of work and
international standards required in the reconstruction of the regional highway
network. At the same time this would provide on-the-job learning while the
responsibility for quality of works remains with the international contractor.

        This would allow building of local capacity to undertake major road
rehabilitation work with low cost and at low risk, while ensuring fast
implementation.
        Poor access to villages in rural areas is a key constraint to rural
development. A tremendous potential exists for generating employment
opportunities while addressing rural isolation through a labor-based rural access
road construction program. Further studies are needed to define such a program.
One option could be the establishment of a rural access fund, initially financed by
grants, to provide for labor-intensive investments that improve accessibility at the
rural level in response to the priorities set by villagers themselves.
        Technical assistance is urgently needed to facilitate speedy implementation
and better define future years of the road program. These involve construction
supervision, defining future institutional and financing arrangements for the road
sector, supporting the local construction and consulting industry, preparing a
national highways strategy, and ensuring road safety.
Civil Aviation
        Civil aviation has always been an important transport mode because of the
size and geography of Afghanistan. An efficient air transport system will facilitate
reconstruction, especially during the period when internal security is being
stabilized. Immediate priorities for the first year include;

                                         22
       (i) installing Emergency Air Traffic Services (ATS) for both international
       and domestic air traffic, which would also generate income from over-flying
       rights;
       (ii) designing and tendering of contracts for rehabilitation of airports and
       facilities; and
       (iii) strengthening government capacity to manage the sector and regulate
       safety.

        Over the next 2.5 years emergency rehabilitation will be needed at key
airports (Kabul, Kandahar, Herat, Kunduz, Mazar-e-Sharif, and Jalalabad), as well
as reinstatement of basic communication and navigational aid facilities to enable
minimum air traffic services. However, the bulk of rehabilitation investments could
be back-loaded.

Communications

          The telecommunications sector in Afghanistan is virtually destroyed. The
nation’s network of phone lines is in the critical state of disrepair and is barely
functioning, and a limited few have access to radios. Adding together the analogue
and wireless local loop networks suggests a country teledensity on the order of 2
telephones per 1,000 (14 phones per 1,000 in Kabul, 0.6 phones per 1,000 in the
rest of the country). To bring limited geographic and population coverage
telecommunications service to a position of modern telecommunication
infrastructure is one of the key reconstruction objectives. As part of the
infrastructure reconstruction programme the GSM network was launched in
Afghanistan in April 2002 providing services for five major cities of the country.
However, constraints such as poverty of the population, severe destructions and
lack of financial resources present major challenges for telecommunications
development in Afghanistan.

        Investment in telecommunications, in both the short and long term, is likely
to be dominated by the private sector but urgent policy framework issues need to be
resolved in the short term to facilitate investment and service expansion.
International experience, even in post conflict conditions, suggests that
telecommunications investment needs minimal government expenditure. Sustained
periods of 100% annual growth in subscriber numbers can be achieved in the first
years of a competitive mobile market. A teledensity of 10 per 1,000 (a realistic
target for the next 2 years) would require private investment conservatively


                                        23
estimated at around $200 million, with competitive private investment taking the
lead.

        Establishing a regulatory and contractual environment that promotes
competition and new entrants is key to the rapid expansion of telecommunications
services. Donor support will be required mainly for technical assistance and
capacity building along the following lines:
(i) providing legal services to support the AIA in critical areas of regularizing
contracts of incumbent operators; and
(ii) supporting early work on sector reform, regulatory design, and tendering of
licenses.

         In most sectors, the magnitude of required investment will increase with the
shift from rehabilitation to system expansion and modernization. But investment is
highly sensitive to the supporting policy framework, development of delivery
capacity (private and community as well as public), and progress toward cost-
recovery.

        Examples of the transition from recovery to development for infrastructure
sectors include;

   (i)     Roads: moving to upgrading of secondary and tertiary road networks to
           reduce isolation of rural communities; continuing expansion of village
           access; continuing restoration and possible expansion of national road
           network;
   (ii)    Civil Aviation: repairing and retrofitting of terminal and supporting
           infrastructure at Kabul and key regional and smaller airports;
   (iii)   Telecommunications: expanding wireless-based services in urban and
           rural areas (target teledensity of 50 per 1,000 by year 10), primarily
           through private sector investment and delivery, but with potential for
           subsidy schemes to promote access in isolated rural areas;

                          Republic of Azerbaijan
Transport System

       Azerbaijan Republic covers and area of 86,6 th. km. Azerbaijan adjoins in
the North with Russian Federation (length of the border 390 km.), in the West with
Armenia Republic (1009 km.), in the Northwest with Georgia (480 km.), in the

                                         24
Southwest with Republic of Turkey (12 km.), and in the South with Islamic
Republic of Iran (765 km.).

      The geopolitical location of Azerbaijan makes it natural bridge between
Europe and Asia and one of the key points in the shortest transport corridors in the
Euro-Asian region.


       Main priorities in transport policy are:

       -   Accelerated integration of transport to the international transport system.
       -   Harmonization of legal transport regime with the norms of international
           transport law.
       -   Development of multimodal transport.
       -   Development of information network together with application of
           modern means of telematics to control transport process.
       -   Adoption of unified laws allowing efficient and cost-effective
           transportation of freight and passenger.

        TRACECA (Transport Corridor Europe – Caucasus – Asia) has a special
value for Azerbaijan in connection with the transportation of large volume of
freight from Europe, USA, and the states of the South – East Asia to Baku. It also
presents significant alternative for transport communication through the Russian
Federation. In connection, Azerbaijan can establish long-term stable relations on
service of transit freight traffic. It is necessary to note that some steps concerning
TRACECA corridor are already being taken under TACIS Program (Program of
Technical Cooperation with CIS Countries), which had been worked out by the
European Economical Community to render assistance for development of
harmonized and strong economical and political communication between the
European Community and new independent states.

        In 1996 Uzbekistan, Azerbaijan, Georgia, and Turkmenistan agreed on
cooperation in the field of regulation of the transit traffic between these countries
with the purpose of improved usage of the transport corridor Europe – Caucasus –
Asia through Azerbaijan. This agreement provides state guarantee for safety of
transported goods, simplification of customs procedures and reduced fares for
goods transport by 50 percent. Due to all this the volume of cargo carriage in 1997
has increased in comparison with 1996 by 2,5 times.



                                         25
       Azerbaijan also signed an agreement with Georgia, Ukraine, and Moldova
about creation of Euro–Asian transport corridor (Ilyichevsk-Poti-Tbilisi-Baku).
Azerbaijan also cherishes interest in “Silk Road” which is the natural prolongation
of Cretan corridor connecting Europe with Black Sea proceeding towards Central
Asia through Georgia-Azerbaijan-Turkmenistan-Kyrgyzstan and further through
China to the countries of South - East Asia.

        Azerbaijan is in close contact with "TACIS-TRACECA" to realize more
than 20 projects: staff training, work out model of transport laws and codes,
simplification and computerization of customs procedures, renovation of railway
and sea transport, improvement of highway conditions, forecasting of regional
traffic on multimodal transport systems etc. In 1996 within the project "Prior
Investment Research and Pilot Express-Train" it put into operation a pilot – train on
route Baku – Tbilisi – Poti and thus provided a new kind of container transport
services.

        The Baku International Marine Port has worked out the investment project
of renovated ferry crossing and development of dry-cargo part of port with a
container terminal. Under the projects of Technical Assistance financed by TACIS,
1,5 mln. ECU is allocated for feasibility study report of activities on renovation, 2,0
mln. ecu for repair and purchase of handling machinery for Baku International
Seaport and 0,7 mln. ECU for purchase of spare parts for ferries. The credit
allocating is planned in amount US $ 30 mln., including US $ 18 mln. for the ferry
terminal by European Bank for Reconstruction and Development.

       Azerbaijan is taking measures on activation and stimulation of investment
process for development of transport infrastructure.

Road transport

       There is planned renovation of motorway Baku – Alyat – Kazi - Magomed
– Kursamir – Evlakh – Gazakh – border of Georgia. TACIS has allocated 1,9
million. ECU to prepare feasibility study report. The European Bank for
Reconstruction and Development will allocate the credit in amount US $ 30 mln.
With purpose to provide efficient and regular work of transport complex of
Republic and full development of transit flow of goods, the special attention is
given to improvement of exploitation and further development of all types of
transport, its infrastructure, strengthening of material and technical base.



                                          26
Transit corridors in Azerbaijan

       The two major transport corridors cross Azerbaijan:

           -   North to the South (Russia - Azerbaijan - Iran and further to the
               countries of Middle East);
           -   West to the East (Europe - Georgia - Azerbaijan and further through
               ferry crossing by Caspian Sea to the countries of Central Asia, China
               and the Far East).

       Annually about two millions tons of freight are transported through the
North - South corridor by road and railway transport, and about three millions tons
on the West - East corridor in both directions. The countries of Central Asia and
also Uzbekistan and Kazakhstan successfully use this transport corridor.

        Besides the Europe-Caucasus-Asia corridor, country has recently activated
the work on signing an International Cooperation Agreement, which had already
been signed by Russia, Iran, India, and Kazakhstan. The creation of favourable
conditions for successful functioning of this corridor will allow improving structure
of transport costs and increasing cargo carriage from Europe to Iran – India and the
countries of the Southeast Asia.

Cooperation in the field of road transport

        For integration of road transport of Azerbaijan to the global transport
network it is necessary to improve transport policy. Now, Azerbaijan is a full-right
member of ECMT (European Conference of Ministers of Transport). Besides,
Azerbaijan is the member of many international transport organizations:
international marine organization (IMO), international organization of a civil
aviation (ICAO), international union of railroad (IUR), international union of road
transport (IRU), European Conference of Ministers of Transport. The Azerbaijan
Forwarders Association was established in Republic which furthermore became a
member of international association of forwarding agents "FIATA" on 1997.

        Azerbaijan has also acceded to six international conventions on sea
transport: Chicago convention on air transport, customs convention on the
international transport of goods under cover of TIR carnets (TIR Convention),
convention on road safety, agreements on international cargo transport (AICT),
international passenger transport (IPT), European Agreement on Main International


                                         27
Traffic Arteries (AGR), European Agreement concerning the Work of Crews of
Vehicle’s engaged in International Road Transport (AETR).


Table-1 Capacity of Transit Carriage (th.tons)

Year            Transit       Transported by
                              Railroad            Marine          Container
1995            -             -                   43              11,2
1996            -             -                   -               14,1
1997            2200          1500                1570            14,0
1998            4000          3200                3070            10,7
1999            4600          3500                3100            8,8
2000            6000          5000                5000            10.7
2001            6947          6300                6300            7,6
2002            7500          7400                7400            -
2003            7800          7550                7550            -
2004            8100          7700                7700            -
2005            8500          7800                7800            -


Problems of development of transport

       Azerbaijan has outdated carriage rolling stock of automobile transport. In
order to solve this problem the necessary investments and state assistance are
required.

        About 70 forwarder’s organizations in Azerbaijan are operating separately
without appropriate harmonized mechanism. It results in uncontrolled activity,
different negative events, and "control" of transport market of the Republic by
foreign carriers. Therefore, these forwarder’s organizations were combined under
the aegis of Forwarders’ Association.

       No road in the Republic meets the international standards. Full renovation
and construction of new highways with appropriate service infrastructure is
required.




                                       28
Table-2 Volume of container transportation in Azerbaijan (ton)

                       1995       1996        1997    1998       1999        2000
Type of transport
Railway               11161      14100    14027      10652       8845      10711
Sea                    2380          -      200          -        300          -
Total                 13541      14100    14227      10652       9145      10711

                         Islamic Republic of Iran
        Iran has a total of 5,170 kilometers (3,214 miles) of dry border with her
neighbouring countries, of which 1,740 kilometers (1,081.7 miles) with the central
Asian Republics; 1,280 kilometers (795.5 miles) with Iraq; 470 kilometers (292
miles) with Turkey, 830 kilometers (515.8 miles) with Pakistan, and 850 kilometers
(528.3 miles) with Afghanistan. Iran's water frontiers in Persian Gulf, and Gulf of
Oman are about 1,880 kilometers (1,168.4 miles). The beautiful green, rainy coastal
line of Caspian Sea in the north is about 630 kilometers (391.5 miles), therefore
Iran has about 2,500 kilometers (1,553.8 miles) of water frontier which is a great
natural blessing.

Telecommunication

        At present, the country's telecommunication network is active with 7,782
thousand telephones in operation, and by the end of the Third Development Plan,
this figure will amount to 15,000 thousands.

       The number of rural areas having access to telecommunications is 19,887,
and up to the end of the Third Development Plan will rise to 35,000, therefore; all
the rural areas of Iran with 20-families or more will have access to
telecommunication networks.

       The number of public phones in operation will increase from 75,666 at
present to 120,000 by the end of the Third Development Plan.

       The number of mobile phones in operation will increase from 450,000 at
present to 3,000,000 by the end of the Third Development Plan.




                                         29
       The expansion of the country's transferring information network is presently
in operation with 180-cities under its coverage and about 11,000 ports of X.25
which will rise to 27,000 ports in 400 cities.

Plans for development of infrastructure

       The plans include the following;
       - Implementation of the long distance inter-city optical fiber network
          countrywide, in order to substitute the optical fiber in main route of long
          distance network instead of radio system.
       - Implementation and expansion of countrywide information-transferring
          network with the acceptable speeds (28.8 kilobytes for general
          subscribers, and 64 kilobytes to 2-megabytes for the customers and
          subscribers who requested higher speeds). Manufacturing and offering
          advanced telecommunication equipment at home.

      In the post sector, the development plans with priorities and infrastructure
schemes are as follows:
      - At present, 300 million pieces of mail are dispatched by the postal
          network, and by the end of the Third Development Plan it will rise to
          530 millions.
      - The number of urban postal offices from 1,500 at present will rise to
          2,500 by the end of the Second Development Plan. (This number will
          develop in Third Plan).
      - The number of rural postal offices from more than 3,500 in the Second
          Plan (including the post and telecommunication joint offices) will rise to
          10,000 by the end of the Second Development Plan. (This number will
          increase in the Third Plan).
      - The numbers of rural and urban post-boxes are 26,500 at present, which
          is predicted to rise to 33,000 during the Third Development Plan.

Priorities of post sector
       -   Redevelopment and improvement of the postal network.
       -   Expansion of the postal network.
       -   Substitution of postal services for people's referrals to the state offices.
       -   Utilizing the mechanized system for sorting and postal exchanges.
       -   Automation of post offices.
       -   Development and expansion of the post-bank.
       -   Transit of international regional mail.

                                          30
       -   Utilization of 10-digit postal system in the country.
       -   Combining the post and Telecommunication offices in rural areas.

Infrastructure schemes

       Planning for initiation of seven mechanized postal centers, postal research,
coding, and development of urban and rural postal units.

Roads and Transportation

        The length of Iran’s roads network, including free ways, highways, feeder
and rural roads, is about 166,000 kilometers. With the exception of free ways,
which were constructed through implementation of the cooperative law, the
existing road networks have been generally constructed through government
development budget. The main railroad lines in the country is about 6067
kilometers in length of which Bafq-Bandar Abbas, Mashhad-Sarakhs railroads are
some of the most important routes.

        The operational airports with programmed flights have been increased to 44
airports. One of the most important project which is currently underway in air
transportation is the construction of the Imam Khomeini (R.H) International Airport
of which the first phase has been envisaged for the relocation of 4.5 million
passengers.

       The capacity of trade ports is 36.4 million tons annually. In water transport,
the important project underway is the construction of Amir-Abad Port, which will
be built with the goal of developing the transit transportation. In water transport,
development of container transportation and the protection of marine environment
are two important measures that are to be pursued.

Priorities in the roads and transportation projects and schemes:

       -   Promoting the maintenance and safety of the country's present network
           of roads.
       -   Promoting the use of public transportation for transferring the
           passengers on the roads.
       -   Enhancement of passenger and cargo transferability by railways.




                                         31
        -   Eliminating the bottlenecks of the present railway network and
            completion as well as development of the railway tracks with private
            sector participation.
        -   Adaptation of sea and port operations in the country's trade exchanges.
        -   Promoting greater facilities for relocation of passengers through the sea.
        -   Increasing the number of international and operational airports, and
            upgrading the acceptance capacity of transiting airplanes through the
            country's corridor.
        -   Enhancing the maintenance of the country's present road network
            (highways, main roads, minor roads, rural roads), for safe keeping of the
            national capitals.
        -   Development of road networks in the framework of transportation
            demand, technical and economical justifications, through continuation
            of executive operations and completion of the roads under construction.
        -   Construction of highways with participation of the private sector.

Investment Programme

     A brief list of the investment plans in regard to infrastructure affairs during the
first six months of 1999 is presented.

Post and Telecommunications

   1.       Radio communications.
   2.       The study of frequency spectrum planning.
   3.       The substitution of postal equipment.
   4.       Construction of distribution and exchange center, post institute, and the
            headquarters.
   5.       To equip the country's postal unit.
   6.       To equip the centers administratively.

Roads and Transportation

   1.       Upgrade the level of roads in heavy traffic and change main ways to
            highways.
   2.       Building new ways in the frame word of transportation demand and in
            accordance with economical justifications.
   3.       Enhancement of safety of traffic in roads through deletion of accident-
            prone places.


                                           32
   4.      Substitution of present transport vehicles with state of the art
           technology.
   5.      Building of terminals of goods, passengers, and welfare complexes and
           by the non-governmental sector.
   6.      Establishing and implementation of Transportation Services Information
           Center for transport users.
   7.      Establishment and implementation of railways particularly Bafgh-
           Mashad and Kerman-Zahedan.
   8.      Reconstruction and building of double railway systems for the present
           networks, especially in busy routes.
   9.      Reconstruction of railway fleet.
   10.     Partnership of the private sector in developing the transportation section
           has yet to be accomplished in building and development of highways.
   11.     Preparing the country's trade ports to receive giant ships.
   12.     Encouraging merchandise owners to use container ships in marine
           transport.
   13.     Construction of Amir-Abad Port (in the northern part of the country) in
           order to facilitate the transit transport of the central Asian countries.

Table-1 Investment Programme on Roads and Transportation

Routes                             Constructed              Under construction
Ghazvin-Zanjan                      186 Km                  -
Tehran-Saveh                        112 Km                  -
Qom-Kashan                          104 Km                  -
Zanjan -Tabriz                     -                        288 Km
Kashan-Esfahan                     -                        185 Km
Tehran-Chaloos                     -                        121 Km
Bandar-Abas Bypass                 -                        32 Km
Mashad-Baghcheh                    -                        40 Km
Esfahan-Western Bypass             -                        90 Km

Table-2 Transport Industry
Total length of road:                         81112 km
Total length of railway line (no electric):   6150 km
Total length of railway line (electric) :     146 km
Total No. of railway wagon :                  18000 cars
Locomotive fleet(no in operation) :           269
Total no of port's :                          11(3 in north, 8 in south)

                                         33
Total no of port's :                                    1113 in north , 8 in south
Total berth of port's :                                 101 berths'
Type of berths' :                                       G.cargo, container, bulk cargo

Table-3 Freight Industry -Road Transport/Cargo Fleet, (1998-99)

Total number of vehicles:                                178040
Active vehicles:                                         116519
Non-active vehicles:                                     61521
Note 1 : Only vehicles with loading capacity of 3 tons and more are included
Note 2 : active vehicles are lorries and trailers with more than 10 trips per year

Table-4 Freight Industry Origin Destination Survey for domestic
haulage,(1998-99)

Total weight of goods carried /per year:                111 million tons
Domestic Bill of Lading issued:                         10335000
Total ton/km produced:                                  57472935000 ton/km
Average load per tripe:                                 10.7 tons
Average distance per trip:                              506 km
Average price of ton/km:                                86 Rials
Table-5 Imports by mode of transport: (1998-99)


Maritime shipping:                                      14960 thousand tons = 96.44%
Road transport:                                         344 thousand tons =2.26%
Rail transport:                                         198 thousand tons = 1.3%
Total import:                                           15232 thousand tons

Table-6 Domestic transport (inflow) of imports: (1998-99)


By road transport:                                      10888 thousand tons=74% of
                                                        import-inflow
By rail transport:                                      3755 thousand tons =26% of
                                                        import-inflow
Total inflow of import:                                 14693 thousand tons




                                                  34
Table-7 Import and export classified by sea/land borders: (1998-99)


Share of ports in import:                       94.4%
Share of land borders in import:                3.6%
Share of ports in export:                       86.8%


                           Republic of Kazakhstan
        The development of a transport network in Kazakhstan under the USSR was
carried on primarily to exploit rich natural resources of the Republic and the
transportation of these resources to the main industrial centers of the Union, as well as
to provide links from the Central Asia Republics and Kazakhstan to Central and
Eastern parts of Russia.

        Due to the long distances and involved to special character of the freight, the
main mode of transportation in Kazakhstan is railway, which accounts for 85 percent
of cargo and 30 percent of passenger traffic. The existing railway network (6.4 km per
1000 km2) is insufficient for the normal functioning of the economy of the state.

       There are 52.5 km of public roads per 1000 km2. Due to low level of
motorization and poor quality road pavement, there are no highways of sufficient
standard to comply with international standards. Only around 10 percent of roads can
accommodate trucks with the axle load of 10 tons. In 1992, the State Programme for
development of transport and communications in Kazakhstan up to year 2010 was
prepared. However, those measures envisaged in the Programme for 1993-1996 were
not implemented due to the economic situation.

        The level of development of telecommunications in Kazakhstan is
characterized by a constant gap between supply and demand due to long-term
insufficiency in investment in this area. There are 13.8 telephones per 100 citizens of
the Republic and in rural areas 7.3 telephones. Telephone services are mainly of low
quality. Since 1992, modernization of the network and reorganization of management
structures has been implemented. During this period modern digital systems have
been introduced in a number of regional centers. Also construction project and high
speed fiber-optical communication lines have been initiated. The number of
international lines increased from 10 to 783.


                                           35
Strategy of infrastructure development:

       The main strategic directions of transport infrastructure development are as
follows:

       -      Development of a national transportation network, which should be
              integrated with the international transportation system and provide
              Kazakhstan an outlet to tide water;

       -      Modernization of existing railways and roads, inland waterways and
              sea ports, airports and air navigation infrastructure taking into account
              the development of a rational system of international transport and
              communications between Europe and Asia and between Central Asian
              countries; OEC members;

       -      Development of manufacturing and repair capabilities for railway
              rolling stock, (freight and passenger), road transport, (trucks and
              automobiles) by conversion and reorientation of exiting production
              facilities;

       -      Development of national transport capability and integrated
              information system;

       -      Consumer oriented improvement of structure and management of
              transport, reduction of the share of transport costs in total production
              costs in order to increase the competitiveness of Kazakhstan goods on
              international markets by improved efficiency in operations.

       Main objectives in the context of development of telecommunications are as
follows:

       -      Intensive development of telecommunication network for public use
              and development of digital network, in order to integrate all services;

       -      Linkage of the national telecommunication system into the
              international network and development of country's international
              telecommunication capabilities;



                                         36
       -       Development of telecommunication industry, production, scientific
               research, and development of telecommunication services.

Support strategy for the regional infrastructure development:

        New approaches to infrastructure development are determined by the
following conditions: market reforms in the Republic which is being integrated into
the world economic system; evolvement of state sovereignty under the existing level
of infrastructure development.

        These conditions necessitate the provision of support to the development of
the region in the following areas:

       -       Rationalization of the railway network in order to reduce
               transportation costs;

       -       Construction of modern freight handling terminals and development of
               multimodal transportation systems in order to service industrial,
               commercial and trade centers;

       -       Rehabilitation of the main road routes and development of road
               transport, which should confirm to international standards;

       -       Development of transportation corridors, (including inter and intra
               regional) to facilitate external economic relations;

       -       Modernization of air navigation equipment;

       -       Development of satellite communication services and information
               networks.

Scale and priority projects of infrastructure development programme

       During 1992-1996, more than US$ 500 million has been spent for the
development of transport and communications, of which US$ 234 million has been
used for the development of telecommunications in the ten regions of the republic.

       The rest was utilized for the acquisition of rail passenger cars, buses for urban
transportation and spare parts. In 1996, credit agreements for US$ 131 million were


                                          37
additionally signed for the development of Druzhba station on Kazakhstan-China
border, for the development of Actay port on the Caspian Sea and for the purchase of
spare parts. About 90 percent of the resources have been met from foreign credits.
The remaining 10 per cent was carried out by low interest credits and by self-
financing of the enterprises.

         Electrification of the railway link Arys-Shu-Almaaty, development of
Druzhba station, construction of a passenger railway car repair works and some other
activities were carried out under self financing.

        In 1996, the State investment programme for 1996-1998 was adopted and
plans for transport development up to 2005 were prepared. These envisage dramatic
growth in infrastructure investment. Overall volume of investment during this period
will reach US$ 4.9 billion, of which US$ 2 billion were expected to be utilized before
the year 2000:

       -       railway transport development                  38 percent

       -       road transport and road infrastructure         23 percent

       -       air and water transport                        27 percent

       -       development of telecommunications              12 percent

       Foreign credits and direct foreign investments by foreign companies are
expected to constitute the main source (70 per cent) of the total inflow.

Railway transport:

       The railway development programme envisages three main activities:

       -       Modernization of the existing network and organization of multimodal
               transport;
       -       Establishment of repair works for railway rolling stock and equipment;
       -       Development of a network for rationalization of traffic flows.

         Using direct foreign and national investments from companies, in the private
sector, it is planned to develop a multimodal transport system and repair works. Direct
investment inflow is now hampered by the lack of reinvestment opportunities and the


                                          38
preparation of projects. Technical assistance, which is provided to Kazakstan by
international organizations and banks, will overcome this problem in two or three
years.

        During the period covered by the plan, 762 km of new lines will be
constructed. These railway lines will substantially reduce transportation costs thus
lowering production costs and will assist government control of its transportation
network. It will also provide for the development of resources. National and
international companies will carry out the construction of the new rail links jointly. To
this end, the Government has enacted measures, which provide privileges during the
constriction and operation of new facilities. These measures will guarantee
profitability and return on invested capital.

Motor transport:

       During the implementation of the first stage of the Programme for motor
transport development, it is envisaged to replace the obsolete vehicle fleet which does
not accord with environmental standards as well as to develop national vehicle
manufacturing factories on the basis of the existing enterprises.

        Initially the fleet of buses is being expanded and renovated using the available
credits. Additionally, the purchase of a limited number of trucks for interregional and
international transportation will take place. Vehicle manufacturing plants are being
established jointly with the main foreign firms; these plants are to produce buses for
different purposes, trolleybuses and small trucks.

        The Concept for the development of a multimodal transportation system in the
republic is being prepared with the technical assistance of the EU under the
TRACECA programme. After preparation and adoption of the Programme,
development will be supplemented by the projects, which cover automobile transport
in the multimodal transportation system. This Programme is going to be implemented
with the help of foreign companies and national private sector.


Roads:

        The situation in road transport in the republic dictates that rehabilitation of
existing roads of national significance, which are used for interregional and
international traffic must start first.


                                           39
        The length of such roads is 17.4 thousand km, 71 percent of which have light
or transitional type of pavement, 211 km are unpaved.

        It is envisaged that the following roads Tashkent - Almaty - Khorgos (Chinese
border); Almaty - Akmola; Aralsk - Actiubinsk - Uralsk will be rehabilitated first.

       Large investments for road network reconstruction in Western Kazakhstan are
planned in connection with the exploration of oil reserves as well as in relation to the
necessary to restore roads near the Caspian Sea, the water level of which continues to
rise.

        The total amount of investments in the road network should reach US$ 1,051
million by 2005; this amount will finance 70 per cent of the work, the rest of resources
will come from international sources. The question of construction of toll roads using
private investment is being studied. Rehabilitation of roads will be done
simultaneously with organization of modern road services according to the
international requirements. It will also take into account the necessity of the
development of multimodal transport.

Inland water transport:

        Reconstruction of Aktau on the Caspian Sea is the primary objective of water
transport development in Kazakstan. This port is the most important sea gateway,
which connects the republic with the rest of the world by waterway via a network of
canals to Russia. This problem is also related to rising water level in the Caspian Sea.

        The credit agreement for port reconstruction worth US$ 54 million was signed
with EBRD, an additional credit worth US$ 20 million for the reconstruction of the
protective dam and breakwater is now being negotiated. It is planned to attract foreign
investors in order to develop the fleet of "river - sea" type vessels on a leased basis.
The technical and economic feasibility study was prepared for the purchase of 10 such
vessels by the year 2000.

        The republic's river network (4 thousand km in 1980) used to provide
transportation for up to 11 million tons of various cargoes. Due to the considerable
reduction of volumes the river fleet is now in a difficult situation. A programme of
river fleet privatization is being implemented. The reconstruction of installations is
planned in order to keep them in working condition.


                                          40
Air transport:

        In air transport following is need to be done: reconstruction of the majority of
airports, purchase of new aircraft, rehabilitation of the existing aircraft repair plants
and air navigation infrastructure. In Almaty, Aktau, and Akmola it is planned to build
new or reconstruct existing international airports. Measures are being taken to provide
international flights in Kazakhstan airspace for foreign airlines; this will reduce the
length of existing air routes by up to 3000 km.

        Structural reform of civil aviation now is being carried out. A number of
private companies have been established. Airports are now separated from the national
air company "Kazakstan Aue Joly"; A state company "Kazairo navigatsiya" has been
established in order to provide air traffic control.
        The biggest airport, in Almaty is going to be managed by "Lufthansa". There
are similar offers for other airports.

        It is planned to modernize the aircraft fleet with "Boeing" aircraft. During the
next ten years, the need in investment in the development of civil aviation is estimated
at US$ 1.2 billion in foreign credits and direct investments.

Telecommunications:

       In 1996-1998 it is planned to expand existing international stations in Almaty
and Akmola and construct a third international station in Western Kazakhstan. It is
planned to change from analogue to digital systems in all regional centers.

        Existing physically obsolete systems and cables are to be substituted with
fiber-optical telecommunication lines (FOTL) in order to eliminate the imbalances
between commutation equipment and basic main line networks.

        Major importance is attached to the development of the national link of Trans-
Asian European (FOTL), which will reach from the border with China over four
regions of the Republic to the boarder with Uzbekistan. Making this international line
operational will provide sustainable international telecommunications with all
countries of Asia and Europe.

      The line, which is under construction, will be connected with the Russian
FOTL, which connects the Far East with the European part of Russia.


                                           41
        In order to develop digital telecommunication of zonal and local telephone
systems it is planned to link the lines of zone and main networks. The cellular
communication network, which will service 18,880 customers in all regional centers
of the republic, is being developed.

       The establishment of joint ventures is developing the manufacturing of
telecommunication equipment with foreign companies on the basis of existing
production capacities and conversion.

        During the initial period the production of a limited number of
telecommunication equipment, radio spare parts, and microchips is planned; in the
future national the telecommunication industry will be developed on the basis of wide
integration with leading foreign companies and firms.


                              Kyrgyz Republic
        Total length of Kyrgyz railway is 424,6 km, covering 323,4 km in the North
and 101,2 km in the South, including 219.2 km of station tracks, 92,6 km of
approach/branch lines. The freight car fleet amounts to 2457 units and passenger
car fleet to 471 units.

        A core issue in transport strategy will be the formation of North-South
trunk-railway, towards Balykchy-Kara-Keche-Djalal-Abad direction with outlet
to China. Having connected together the existing dead-end railroads of the northern
and southern industrial areas of Kyrgyzstan into unified network, this trunk-railway
will ensure reliable interregional transport communication. The construction of
trunk railways will require considerable funds and foreign investments. After
implementation of the entire project of trunk-railroads, Kyrgyzstan will have the
following two alternative outlets to the international network of railroads:

       Torugart-Jalal-Abad-Andijan to the Turkmenistan and the Caucasus with
an outlet to Southern and Central Europe or to Iran and the Near East to the Persian
Gulf ports.

       Torugart-Balykchy-Bishkek-Lugovoye-Arys-Aktau that will allow
access via Pre-Caspian port Aktau to all basic directions from Asia to Europe and
visa versa.


                                         42
        Kyrgyzstan has already commenced the implementation of this project
starting with the construction of the first stage of the railway line Balykchy-
Kochkor-Kara-Keche. Regarding construction of Kyrgyz section of the Andizhan-
Djalal-Abad-Torugart-Kashgar railway, negotiations are underway with the
Chinese counter parts.

Table-1 Facts on Railway System of Kyrgyzstan (2001)

1. Length of main Routes (km)
                                 Double
                                  Single                                       30.050
2. Length of Auxiliary/sub Routes (km)                                         65.636
3. Total operational Length (km)
                                 Double                                              -
                                  Single                                         423.9
4. Under Construction
                                 Double                                               -
                                  Single                                              -
5. Total Personnel
                                   Male                                          3724
                                 Female                                          1165
6. Number of Wagons
                      Passenger coaches                                           421
                         Freight Wagons                                          2351
                              Containers                                         1939
7. Number of Stations                                                              27
8. Number of Border                                                                 5
interchange/stations*
(*) Border Stations; Lugovaya, Karasu, Kyzyl-Kiya, Uchkurgan, Djalal-Abad.

Road Transport:

        These days the emphasis has shifted railways modes of transport to road-
based transport system. 79 percent of the freights and more than 80 percent of
passengers are now taken care of road-based transport. The government is attaching
priority to the existing and alternative transport infrastructure. Top priority in this
regard is given to the development of infrastructure that connects Kyrgyzstan with
Kazakhstan, Uzbekistan, Tajikistan, and China.


                                              43
       Within this mode, private sector has been encouraged to take a dominant
place in carrying out major volume of transportation. As of January 2002, there
were about 264900 vehicles, including 5547 of freight vehicles, 189679 of
passenger cars, 55129 of special cars and 14545 of buses.

Table-2: Exchange of permit forms of the Ministries of transport of selected
ECO member states

No         Country                    1999       2000       2001            2002
1.         Azerbaijan                 50         30         50/-            50/-
2.         Iran                       102        100        89/38           500/-
3.         Turkey                     100        100        100/25          50/12
4.         Kazakhstan                 1000       5000       5000/4958       1000/-
           3rd countries              300        420        200/120         200/-
5.         Uzbekistan                 -          200        -               -
           3rd countries

Priority directions of motor transport development:

       -     Development of interstate motor transportation links;

       -     Integration of national motor transport into the international motor
             transportation system of freight traffic on the basis of establishment of
             national normative/standard base of industry branch according to
             international requirements;

       -     Increase of competitiveness among motor carriers;

       -     Improvement of policy and strategy of management of motor transport
             in terms of market economy;

       -     Assistance in establishment and activity of enterprises of various
             patterns of ownership in motor transport with attraction for both
             domestic and foreign investors;

       -     Establishment of conditions for development of competition in the
             market of motor transportation freight traffic and services;



                                          44
       -   Development of scientific and technical advance, equitable and mutually
           advantageous cooperation with foreign scientific and technical
           institutions;

       -   Development of research-and-development plan of motor transportation
           enterprises.

       The establishment of transit transportation systems and outlets to the global
sea-lanes are urgent issues for the Kyrgyz Republic and other Central Asian
countries.

       Expansion and development of international trade and economic relations
increasingly depends on the status and level of motor roads in the Central Asia and
neighbouring countries, particularly in mountainous areas.

        Kyrgyzstan attaches great importance to the issue of revival and formation
of the Great Silk Road routes and takes active measures on its formation. However,
international requirements must be met as the country lies within the network of the
regional Asian highway.

Transit highways:

- Irkeshtam - Sary-Tash-Osh –Bishkek                                      898 km
- Bishkek - Naryn - Torugart -                                            539 km
- Kordai (Georgiyevka) - Bishkek - Chaldovar                              110 km
- Osh - Andijan highway section                                           5 km

       Five highways of the Kyrgyz Republic are included in the ECO transport
and communications Action Program for the decade period of 1998 - 2007. Four of
them are included in the network of priority roads of the country and Kyrgyzstan
takes measures on projection, construction, and reconstruction of these highways.

       Bishkek - Osh highway is part of regional Asian highway Irkeshtam - Sary-
Tash –Osh - Bishkek - Kordai (Georgiyevka of the Republic of Kazakhstan),
provides an outlet in the south to China and in the north to Kazakhstan.

        Bishkek - Naryni- Torugart is the second highway by its importance and
significance ensuring transit across the territory of the country to the North - South
direction from China (“Torugart” frontier point) in the South, and up to the

                                         45
inhabited locality Kordai in the Republic of Kazakhstan in the North. In 1998, at
the expense of the grant of Islamic Development Bank was developed the
feasibility study of rehabilitation of this highway. The project documentation on
implementation of reconstruction works for initial pass-over sections of the road for
the amount of US $ 15 million.

        Also at the expense of the grant of Islamic Development Bank, the country
was prepared to launch the feasibility study of rehabilitation of Taraz-Talas-
Susamyr road (located in the highland valley) and included in the ECO roads
structure.

       Kordai – Bishkek - Chaldovar highway is a part of Almaty-Bishkek-
Tashkent-Ashgabat international trunk-highway. This highway will become a basis
for formation of the infrastructure of the motor transportation corridor en route in
the East - West strategic direction.

Airways:

        Civil aviation is an integral part of the unified transport system. Its special
role is defined by a possibility to provide much greater speed of passenger, freight
and mail air service on long-distances in comparison with the other modes of
transport.

       At present, the system of civil aviation includes the following air/aviation
enterprises:

       • “Manas” international airport,
       • “Kyrgyzstan aba joldoru" national air carrier,
       • “Kyrgyzaeronavigation" state enterprise.

Besides, there are 13 private airlines carrying out air service by both domestic and
international air flights to the CIS and foreign countries.

                       Islamic Republic of Pakistan
       The economic strength and social well being of a country greatly depends
upon the level of development achieved in its infrastructure of which transportation
forms an integral part. It is, therefore, important to understand the basic
transportation needs of a country, which relate to the carriage of passengers and


                                          46
freight within a local area that is extended to include inter-city, inter-provincial, and
finally international movements. This portion however, is limited to the
transportation of overland freight within Pakistan and at the border crossings,
especially related to the ECO region.

        Geographically the whole region is divided into a number of formidable
mountain ranges that act as physical barriers mainly running east to west. Despite
these intimidating divides, there are accessible corridors that allow passage of
travelers and goods. The famous “Silk Route” from China to Europe passed
through this region while a part of this lucrative trade also branched southwards
towards the Indian sub-continent. With such a rich legacy where folklore and
common legendary heroes abound, it is understandable to once again bridge the gap
that temporarily separated the region for almost 150 years.

Overland transportation and distribution:
       Except for Turkey, Iran and Pakistan the other seven ECO member
countries are land-locked. The importance of overland transportation with access to
the major sea ports of the former RCD member states for the future prosperity of
the ECO region as a whole therefore, is quite apparent. There is a concerted effort
to develop the region as a whole, especially the land locked countries, which have
rich mineral, fossil fuel and agricultural resources. All this will require an efficient
and cost effective transportation system to cater for the envisaged increase in
business opportunities. It will therefore, be necessary to touch the whole range of
opportunities that have drawn the ECO member states closer to one another during
the last decade. The whole range of overland transportation and distribution
services includes:
      Inland waterways
      Railways
      Road


Inland waterways:

       While inland waterways is an important and inexpensive means of
transportation this region unfortunately, is not blessed with such a natural
“thoroughfare”, except on the shores of the Caspian Sea, which serves a small area
connecting eastern Azerbaijan with northern Iran and western Turkmenistan. Even
though the mighty Indus traverses the complete length of Pakistan, it carries


                                           47
negligible traffic, as the unpredictable and seasonal flow of water is not conducive
to ensure its position as a serious mode of transportation.

Railways:

        The rail network in Pakistan is Broad Gauge and covers about 8,500 km of
track with 737 stations, 575 locomotives (almost all over 25 years old), over 25,000
freight wagons (mostly out-dated) and about 2,000 passenger coaches. The main
line connecting Karachi with Peshawar is almost 1,800 km and allows a top speed
of 120 km per hour for modified coaches and wagons. With the exception of about
350 km between Lahore and Lodhran where electric locomotives are used, diesel-
electric locomotives serve the rest of the network.

International Rail Connections:
       There are presently four railway stations that handle international traffic, which
are:
       a) Taftan in the province of Baluchistan lies on the Iranian border. A Standard
          Gauge connects Mirjaveh, the Iranian border town with Zahidan less 120
          km away.

       b) Chaman in Baluchistan where cargo is transferred to / from road vehicles
          for carriage between Spin Buldak, the Afghan border town and beyond, as
          there is no rail service in Afghanistan. Chaman is almost 125 km from the
          southern city of Kandahar.
       c) Landikotal in the province of NWFP (North Western Frontier Province)
          from where road vehicles carry cargo between Jalalabad, Kabul and beyond.
          The Landikotal / Torkham border crossing caters for the majority of the
          traffic under the Afghan Transit Trade Agreement
       d) Wagah in the province of the Punjab has a well-developed rail link with
          India, which also has a Broad Gauge network. The Wagah / Atari border
          crossing now is not operational since the suspension of the rail service by
          India in February 2002.




                                            48
49
        With an efficient and well-operated rail system, the movement of large volumes of
freight over long distances will be fast and cost effective compared with the same volume
moving by road. With the possibility of private investors operating freight trains, in the
near future it is expected that this commercially oriented service would attract a
substantial volume of business both from the domestic market and tonnage representing
sea-borne trade. With the need to promoting trade and cultural links within the ECO
region and the need to provide a cost effective access to international markets it is
necessary to reexamine the plan to introduce a rail system in Afghanistan.

        While Turkey and parts of Iran have a rail link with Europe this mode of
transportation is unfortunately, not available to Pakistan and the rest of the sub-continent
as there is a stretch of about 400 km that needs to be constructed between Zahidan and the
city of Kerman.

        The establishment of a railway system in Afghanistan is to be seriously
considered. The old proposal of the late 70’s is to be re-examined. The short stretch of
less than 150 km between Chaman and Kandahar may be considered as Phase I of this
major project.

       The missing rail link of about 300 km between Zahidan to Kerman in Iran is to be
considered for construction, as it would connect Pakistan and the rest of the sub-continent
with Europe. At the same time, it would provide an alternative overland route between
the ECO region and Europe.

Roads:
        The network of roads provides the greatest flexibility to the movement of
passengers and freight in a country. The optimum density of the road network is
considered to be in excess of 0.5 km. per square km. The total road network in Pakistan is
in the region of 188,000 km, which gives a density of less than 0.2 km per square km.
There is therefore, a need for further development of the road infrastructure.




                                            50
          Road Traffic between Pakistan & ECO Countries (in tonnes)
                                   Exports

                                  1999                              2000                             2001
                           National         Foreign          National         Foreign       National        Foreign
                            Flag             Flag             Flag             Flag          Flag            Flag
Afghanistan        12,148               27,200          14,000            25,029        15,000         35,314
Azerbaijan         -                    -               -                 -             -              -
Iran               3,186                25,777              5,079         33,990        16,085         78,140
Kazakhstan         -                    -               -                 -             -              -
Kyrgyzstan         -                    -               -                 -             -              -
Pakistan           -                    -               -                 -             -              -
Tajikistan         -                    -               -                 -             -              -
Turkey             -                    -               -                 -             -              -
Turkmenistan       -                    -               -                 -             -              -
Uzbekistan         -                    -               -                 -             -              -
                   15,334               52,977          19,079            59,019        31,084         113,454




                                                     Imports

                                      1999                              2000                         2001
                           National          Foreign         National         Foreign       National        Foreign
                            Flag              Flag            Flag             Flag          Flag            Flag
Afghanistan            -                -                -                -             -              -
Azerbaijan             -                -                -                -             -              -
Iran                   33,986           78,623           29,157               87,471        35,924     92,377
Kazakhstan             -                -                -                -             -              -
Kyrgyzstan             -                -                -                -             -              -
Pakistan               -                -                -                -             -              -
Tajikistan             -                -                -                -             -              -
Turkey                 -                -                -                -             -              -
Turkmenistan           -                -                -                -             -              -
Uzbekistan             -                -                -                -             -              -
                       33,986               78,623       29,157               87,471        35,924     92,377
Note: Trade between Pakistan and the Central Asian Republics were negligible by road but some traffic
moved by air.




                                                             51
Road Links:

     There are presently five international road border crossings in Pakistan, which are
listed below. It is unfortunate, that no data is available to indicate the volume of traffic in
each of these locations.

   a) Taftan / Mirjaveh on the Iranian border is an important crossing as the road
      traffic between the two countries and the limited movement to other ECO
      countries (other than Afghanistan) passes through this customs station.

   b) Chaman / Spin Baldak has traditionally been less significant of the two border
      crossings between Pakistan and Afghanistan. This could change in the future as it
      is the closest custom station located on the route from the new port of Gwadar to
      Afghanistan and beyond to the northern ECO states. The road traversing the short
      but steep Kojak pass needs to be widened to improve the flow of long vehicles
      once the envisaged traffic materializes. Quetta, the provincial capital of
      Baluchistan and the southern city of Kandahar in Afghanistan are to enhance their
      image as the two important commercial staging centres on the shortest route to
      Central Asia, provided of course, the security concerns in Afghanistan are
      satisfactorily brought under control.

   c) Landikotal / Torkham is the main border crossing between Pakistan and
      Afghanistan. This facility should continue to play an important role in the future
      trading pattern that is emerging. Cargoes originating from the provinces of Punjab
      and NWFP would move on this route together with the sea-borne traffic from
      Karachi to and the northern regions of Afghanistan and beyond to Tajikistan,
      Uzbekistan and Kyrgyzstan.

   d) Sust on the Highway between Pakistan and the Chinese province of Xingiang is
      presently involved with the movement of the limited flow of goods between the
      two countries. The all weather road through the formidable Karakoram Range is
      able to carry long vehicles despite the fact that the Kunjrab Pass is over 16,000
      feet. The road is being further improved to cater for the envisaged increase in
      traffic well into the 21 centaury. It is possible to carry freight on this route to
      Tajikistan and Kyrgyzstan lying on the eastern flank of the region comprising of
      ECO countries.




                                              52
   e) Wagah / Atari border crossing between Pakistan and India remains closed since
      February 2002 except for the small tonnage of Afghan exports, consisting of dried
      and fresh fruits to Indian.

Future Plans:

        The government of Pakistan has emphasized the need for greater trade and
interaction within the ECO region. A number of long term steps have already been taken
with the development of the new deep-water port at Gwadar. It has sanctioned funds to
undertaking an engineering survey in Baluchistan with a view to establishing a rail link
from the new port to the existing railway track leading to Afghanistan and Iran. There is a
need to examine the possibility of developing an alternative route via the Karakoram
Highway via the China route, which would provide the right of way for this traffic. The
Government of Pakistan would have to progress this subject with the Chinese
government.

        Good air connections and modern communication links would be another
important factor to be considered for the regions’ prosperity. Easy international access
and unhindered traveling within the region would all act as a catalyst towards achieving
its objective. The will to bringing about a change for the better is however, the most
important element that would make the difference between success and lost opportunities!




                                            53
      Proposed rail links from the new port of Gwadar to the Quetta /
Taftan railway line. Baluchistan, Pakistan


                                    54
Map 2 – Iran




               55
56
Map 3 – Air Connections from Pakistan




                 57
                              Republic of Tajikistan
Road transport

       Transport sector in Tajikistan is an integral part of its economy and plays an
exceptionally important role. After independence Tajikistan has turned from a region of
inadequate roads into country of modern transport infrastructure.

        Road transport is the most popular mode, used for movement of cargo and
passengers to almost all regions in Tajikistan. However, during the period from 1991 until
2000 the number of road vehicles (except motorcars) tended to decrease which affected
the dynamics of cargo and passengers traffic and as a result the turnover in road transport
sector rapidly decreased. At present, 72,7 percent of the whole fleet of road vehicles
consists of private motorcars. Licence system serves as a basis for the motor transport
management

        Most of the road fleet is made of all-purpose trucks with an average loading
capacity. There is a strong demand for dump trucks, wagons, refrigerator vans and tank-
cars. Existing supply of trucks in the home market is inadequate. The available stock does
not comply with the commercial and technical world standards.

Motor roads

       Effective operation of road transport can be ensured with proper infrastructure,
including motor roads. Total length of the national motor roads exceeds 30000 km, 13612
km. of which are intended for general use. Motor roads density amounts to 0,095 km/km2
and 2,27 km/thousand people.

       Motor roads network controlled by the Ministry of Transport is 13624 km,
including 10157 km. with asphalted concrete pavement, 2539 km. with blacktop and
gravel pavement, 928 km. with soil pavement. The bridges have a total length up to
36567 running meters.

        Most of the roads pass through mountain areas; due to the lack of the ground,
these roads are paved close to mountain sides or along mountain rivers. They, thus,
remain permanently damaged by landslides, landslips, stone falls, floods and other natural
disasters.



                                            58
       During the last years, motor roads in Tajikistan were characterized by rapid
decrease of the pavement loading capacity. Most of them (more than 80%) were planned
and paved several years ago for the axial load up to 6-tons. The road transport fleet has
now undergone many changes. Nowadays, modern trucks and buses are with axial load
exceeding 10 tons. Their maintenance cause intensive damage to the existing roads.

       Annual maintenance control confirmed that only 20 percent of all motor roads
could be considered durable. Most of them have dangerous defects. Up to 30 percent of
road, bridges and overpasses in Tajikistan do not meet the modern load capacity
standards (average loading 30 tons), about 7 percent of them are considered to be unsafe.

Railway transport

        The railway transport is distinguished by high transportation capacity with low
transport costs, regular traffic, and large investments for construction of railways, which
can be reimbursed only with the great quantity of transport flows.

        Still the railways plays a great role in the national economy and includes three
sections: Northern in Sugd region, Central in Dushanbe region and Southern in Khatlon
region. All these sections are isolated. Connection between them can be established only
via the territories of other countries (Uzbekistan and Turkmenistan). The role of railways
in local transport infrastructure is significant, about 90 percent of external freight
forwarding is carried out by rail. During 2000, the share of rail transport amounted to
56,3 percent.

       By the end of 2000, the freight cars fleet had 2015 units, including 442 box cars,
234 goods trucks, 522 open wagons, 106 tanks, 212 isometric and 499 other types of cars.
The average working life of these cars is 32 years. Already the average age of these cars
was 23 years.

        The situation is the same with the passenger cars fleet, which included 300 units
(139 compartment cars, 117 carriages with numbered reserved seats, 10 sleeping-cars, 11
restaurant cars, 15 baggage cars, 4 special technical cars, 2 generator cars and 1 inter-
regional car). The average age of each car makes about 19.6 years.

       There are 860.5 km. of rails. Every 3-year a renewal is required, that is equal to
the annual repair of 180 km. of wooden sleepers. Every 9-year a mid-life repair is
required, that is equal to 90 km. of wooden sleepers and 45 km. concrete ties. In addition,
each 12-year period major repair has to be carried out, that is equal to 93 km. of wooden


                                            59
sleepers and 44 km. of concrete ties. Due to the lack of financial support, all required
repair works could not be carried out during the last three years.

       Locomotive fleet includes 57 diesel locomotives with the average age of 20 years;
21 of them were to be written off by January 2001. Power supply, signaling, and
communication in railway transport have been operated for a long time without any
reconstruction or repair works. Part of the equipment has become out of date. Lines of
communication (cable and air), power lines, and substations 6-10/0,4 kilovolt were
constructed more than 25 years ago. Main supply line Bekabad-Kanibadam has been
operating for more than 38 years, with an average working life up to 20 years. Existing
main communication cable at the stations of Khoshadi and Kurgan-Tube was constructed
in 1972 and has been operative for 28 years with an average working life up to 25 years.

         Foreign investments are needed for improvement of transport infrastructure in
Tajikistan. Up today feasibility studies for projects Zigar-Hostav-Shkev and Shagon-
Zigar, Kulyab-Kalay-Humb motor road have been produced. These projects will be
implemented with the loans from IDB, Kuwait Fund and other international co-financing
institutions. ADB will provide US $ 20 mln. for rehabilitation of motor road Dushanbe-
Kurgan-Tube-Dangara-Kulyab, that makes 76 percent of the total cost of the project.
ADB intends to provide Republic of Tajikistan with US $ 40,0 mln. loan for realization of
other projects.

        Construction and rehabilitation of motor roads in major directions, forming of
modern transport corridors and attraction of traffic flows will help to eliminate economic
isolation, ensure stable economic development, industrial and agricultural production,
reduce unemployment.




                                           60
Table-1 Facts on Railway System of Tajikistan (2001)


1. Length of main Routes (km)
                                    Double                                          62.4
                                     Single                                        553.8
2. Length of Auxiliary/sub Routes (km)
                                    Station                                        210.7
                                 Subsidiary                                         54.1
3. Total operational Length (km)
                                    Double                                          62.4
                                     Single                                        943.4
4. Under Construction
                                    Double                                             -
                                     Single                                            -
5. Total Personnel
                                      Male                                         5959
                                    Female                                         1586
6. Number of Wagons
                         Passenger coaches                                          280
                            Freight Wagons                                         1813
                                 Containers                                         902
7. Number of Stations                                                                36
8. Number of Border                                                                   4
interchange/stations*
(*) Border Stations; Pakhtaabad, Khoshady, Nau, Kanibadam.

                               Republic of Turkey
Transport System:
       Turkey is located between Asia and Europe serving as an intersection of trade.
Transport sector has a significant role in economy since the country is surrounded by sea
on three sides and covers an extensive area of 814,578 sq. kilometers. Transportation is
gaining even more importance now with globalization.
        Transport sector consists of land, sea, air and rail transport. There is no inland
water transport in Turkey except Lake Van ferry operation.
      Transport has been the locomotive and major contributor to economic growth,
competitiveness and employment.


                                           61
       In Turkey, railways was the main driving force of Turkey’s economic
development following the foundation of the Republic in 1923 until 1950s. The railway
network was about 4,000 route km in 1920s, and while national policies favoured railway
transportation in the first two decades, the network grew to about 7,000 km.
       After 1950s transport policy changed, giving more emphasis to highway
transportation and resulting in a rapid expansion of the national road system. The road
network expanded from 18000 km in 1920 to 63,167 km in 2001 including 1851
motorways, 31,376 km state roads, 29,940 km provincial road excluding village roads
and forest roads.
       The development of the road transport was further encouraged by three factors
during recent decades:

        •     rapid development of the domestic automotive industry after the 1970’s.
        •     an infrastructure investment program which resulted in the construction of
              1300 km of motorways in the 1980s.
        •     failure of successive Governments to adopt policies which would either
              require or allow the publicly owned railway industry effectively to respond
              to a competitive transport market structure dominated by private sector
              operators.
        The highway led the domestic freight transport with a share of 89.10% in 1999,
the ratio is 4.36% for railway, 4.76 for maritime and 0.185 for airways. 96% of the
domestic passenger transport in Turkey is by road.
Road:
        Turkish road network is 354,382 km in total. International Highway network of
Turkey, called E-Road, spreads across the country from west to east and north to south.
Infrastructure and operations are separated in road transport like in other countries.
       The government is fully responsible for the construction and maintenance of the
road infrastructure through General Directorate of Highways within Ministry of Public
Works and Housing, Highway operators are completely private.
Railways:
       During the establishment of the Turkish Republic in the 1920s, State intervention
in economic activity was widely used to foster economic development. In 1924 private
railways in Turkey was nationalized by Law but by the beginning of multi-party

                                          62
democracy in 1950s, the dominant role of government was more widely questioned.
However, the role of the State in the railways industry was not seriously challenged.
         The railways are now governed by laws and policies which are rooted in its
historical nature as a public service monopoly, rather than reflecting current economic
realities. Prices have been distorted by regulatory authorities in favour of certain classes
of passengers and shippers. The railway continues to offer services which are no longer in
demand, at prices below cost.


Table-1 Turkish rail transport system (2001) (km)
                               Non-electrified               Electrified            Total
Mainlines                        6,778                        1,479                  8,257
Doubling Mainlines                 141                          273                    414
    Total Mainlines              6,919                        1,752                  8,671
Subsidiary Lines                 1,899                          370                  2,269
     Total                       8,818                        2,122                 10,940
Source: TCDD Annual Statistics 2001


Table-2 Facts on Railway System of Turkey (2001)
1. Length of main Routes (km)
Double                                                                              414
Single                                                                              8,257
2. Length of Auxiliary/sub Routes (km)                                              2,269
3. Total operational Length (km)
Double                                                                              414
Single                                                                              10,526
4. Under Construction
Double
Single
5. Total Personnel                                                                  45,175
Male
Female
6. Number of Wagons
Passenger coaches                                                                   1,385
Freight Wagons                                                                      16,513
Containers                                                                          -
7. Number of Stations                                                               911
8. Number of Border interchange/stations*                                           6
*Border Stations; Kapikule (Bulgaria), Pityon (Greece) Meydanekbez (Syria), Nusaybin (Syria), Kapikoy
(Iran), Dogukapi (Armenia) (Closed)




                                                 63
         The number of staff employed in railway sector is more than 45.175 including
affiliated corporations which are manufacturing locomotive and rolling stock.
       For improving financial and operational performance of business units,
considerable emphasis is being placed on improving revenue yields by increasing tariffs
and service quality.

Maritime
        In Turkey, 7 big public ports comprising Derince, Bandirma, Mersin, Iskenderun,
Samsun, Haydarpasa and Izmir are operated by TCDD – Turkish State Railways, all
having connections to railway network and accept Izmir in other points have been
registered as international ports and container terminals.
Table -3: Capacities of TCDD ports


Ports                          Ship / Year              (Handling (1000 tons)
                                                General Cargo
                     Freight          Passenger Dry Bulk        Container Total


Haydarpasa           2,651              -          2,834         3,082        5,916
Derince              1,105              -          1,799           -          1,799
Samsun               1,130              -          2,189           -          2,189
Mersin               2,650              623        2,639         2,855        5,494
Iskenderun             630              -          3,224           -          3,224
Bandirma             1,037            3,240        2,636           -          2,636
Izmir                2,389            1,246        1,469         4,082        5,551

Total                11,602           5,109        16,790        10,019       26,809

Source: TCDD Annual Statistics 1999

Airways
        After the adoption of the Civil Aviation Law in 1983 by the Parliament, Turkish
air transport sector has shown a significant progress. In this period, not only the
modernization and the service standards of the Turkish Airlines (THY) which is a public
corporation (100% state owned) but also the number of the private airline operators were
increased. The biggest operator is Turkish Airlines (THY) and its shares will be sold in


                                              64
near future. There are 8 private airline operators. In parallel to these developments, the
market share of airways has improved. There is no full competition in domestic flights
since the leader air operator is Government and its investment is covered by the State in
the meantime.


Table - 4: Airports in Turkey
Type of Airports                                              No

International and domestic                                   10
Domestic and charter                                          9
Domestic                                                     16
Cargo                                                         1

TOTAL                                                        36

Source: DHMI (General Directorate of State Airports Operations)

Combined Transport

       The main combined transport market for Turkey is ISO containers. Considering
these facts, combined transport strategy for Turkey is focused on developing a
commercial combined transport business in partnership with private sector.

        There are three main potential container markets which are given below:

        •        Transit via Turkey to/from the Middle East, Central Asian Republics,
                 Black Sea Region and the Caucuses (extending northwards to Russia). The
                 source of trade may be either overland to Turkey and then transit, or an
                 alternatively via Turkish seaports as maritime cargoes and then overland
                 transit.

        •        International trade between Turkey and these same regions.

        •        Domestic flows, including to / from seaports as traffic nodes.

        With trade growth, port expansion, further development of Inland Container
Terminals and unit load train services, containerized transit trade does have more
potential.

                                                  65
Ro-Ro Transport
       In recent years, due to the problems arising in the road transport, ro-ro transport
has increased to significant level. 28% of the total export to the European countries and
6% of the total import from European countries is realized by ro-ro transport.
       There is ro-ro transport between the following lines. There are 29 ro-ro vessels in
Turkish fleet. 6 regular private ro-ro vessels are operating to CIS countries through Black
Sea.
RO / RO Line                                     Country
Cesme-Bari/Brindis/Ancona                        Italy
Cesme-Trieste                                    Italy
Kumport-Trieste                                  Italy
Tekirdag-Trieste                                 Italy
Derince-Constanta                                Romania
Derince-IIyichevsky                              Ukraine
Haydarpasa-Trieste                               Italy
Samsun-IIyichevsky                               Ukraine
Samsun-Novorossisky                              Russia
Trabzon-Sochi                                    Russia
Zonguldak-Crimia                                 Ukraine
Source: Ministry of Transport

Ferry transport
        Train ferry operation was started between the ports of Constanta and Samsun.
There are studies to identify common standards to ensure efficient ferry operation
between the ports of Samsun and Novorossisk, as well.     Mersin and Samsun ports
which are very well equipped for ferry transportation, have been included in the
international rail-ferry terminals by the AGTC Agreement.

                                   Turkmenistan
Road transport

        Public road transport sector includes 62 enterprises, located across the whole
territory of Turkmenistan, involving more than 13,5 thousand employees and 12 thousand
transport means. The Ministry of Road Transport of Turkmenistan transports each year 90
percent of all passengers and 74 percent of all goods in Turkmenistan.



                                            66
        Enterprises of the Ministry of Road Transport are involved in daily
implementation of large-scale programmes, aiming at improvement of different spheres
of national economy. Turkmenistan joined a number of conventions on inland transport,
elaborated, and signed within ECO, UN, and international organizations such as MCAT
and FIATA. These allow carrying transport operations in any country of the region, based
on simplified border-crossing procedures and provide overall transport-forwarding
services.

        Licensing and working out of legal acts, signing of bilateral and multilateral
agreements on international road connection with other countries, control of their
implementation is carried out by the Ministry of Road Transport. It ensures harmonized
development of the relevant market and protects national rights. It also ensure
establishment of a common economic area in Turkmenistan.

Sea transport

        The port was established in October 1896, 27 years after the establishment of
Krasnovodsk (Turkmenbashi). Before this port turned to be a self-dependent economic
unit, the main customer for cargo sea transport from Russia and Caucasus had been the
Caspian railway.

        Port of Kransnovodsk was founded in Muravyev bay, in the southeast of the city,
surrounded by Kubadag, Shagadam and Ufra mountains. Port improvement was carried
out along the northern coast, aiming to link both the harbors.

       To combine and regulate goods and passengers transport, Commercial Sea Port
Department was established on January 1, 1903. In 1959, the construction of a ferry
crossing was launched.

        Turkmenistan is one of the countries in the region with a good opportunity to
transship cargo by vessels from Turkmenbashi to Russia and Europe. In 1993, three dry
cargo ships of 3000 tons displacement were purchased "S. Niyazov", "Mahtumkuli"
and "Turkmenistan". After that operation of 5000 tons ship "Balkan" was started.

         Turkmenistan, with its reach oil and gas resources has a strong need for tanker
fleet. Turkish shipbuilding company "Bsrk Denizchilik" received an order from the
government of Turkmenistan to construct the first oil tanker of river-sea class, with
capacity up to 5000 tons. At present, this tanker actively operates along Turkmen sea
lines, transporting oil products.


                                          67
                             Republic of Uzbekistan
Railways
        The state joint-stock railway company "Uzbekistan railways" was formed in
November 7, 1994. The operational length of "Uzbekistan railways" is 3986 km, structure
of the company includes 246 stations equipped with electrical centralization of pointers
and signals, 1579 km of sites are equipped with dispatching centralization and 935 km are
automatic lock-out, 619 km are electrified.

        "Uzbekistan railways" there are 19 locomotive and wagon depots, 11 divisions of
the signal system and communication, 25 divisions of line and power supply.

   In 2001, the following projects were completed:

      The railway traffic on a site Uchkuduk -Misken by the extent of 226,4 km. was
       opened.
      The factory on repair of carriages in city Tashkent equipped by modern equipment
       and technological lines, shipped from Germany, Holland, Japan, Southern Korea,
       Poland, Finland, and England was upgraded.
      The operations on electrification of railway lines on a site Marokand-Bukhara
       were undertaken.
      The rehabilitation of path on a site Chengeldi-Samarkand was carried out.

        There are 125 enterprises in the state joint stock company, including 30
enterprises of the basic activity, 7 industrial enterprises, 20 enterprises of contract
activity, 52 enterprises of social sphere, 4 enterprises of a subsidiary agriculture and 12
others. From the total, 83 are state enterprises, 31 joint-stock companies, and 3 joint
ventures. By 2000, 42346 thousand tons of cargoes were transported with cargo turnover
15,4 billion ton/kilometer. Under the forecasts by 2005, the volume of transportation of
cargo will make about 45 million tons, cargo turnover will be 16000 million
ton/kilometer, and passenger turnover would be 2,200-million passenger kilometer. The
whole length of the railway lines will be 4400 km, including 900 km electrified.

       The turnover of cargo by railway makes more than 66 percent of the cargo
turnover of all modes of transports, except pipeline.

         Main cargoes transported by the railway are: petroleum 29,9 percent building
cargoes 26,1 percent, coal 7,3 percent, clap filament 2,4 percent, chemical and mineral
fertilizers 6,3 percent.


                                            68
Road transport
        The existing network of the basic highways of Republic of Uzbekistan becomes
the integral part of the international road network, both in Central Asia and other regions
of the World. The total length of roads makes 147 thousand km, including, highways of
general usage 44 thousand km, inter-economic roads 78,6 thousand km, street of the cities
and the regional centers 13,8 thousand km, inspection and access roads 7,4 thousand km,
other roads 3,0 thousand km. From highways of general usage, 3300 km are highways of
the international importance, 20000 km are highways of state importance, 21469 km
highways of local importance.

        The concern "Uzavtoyul" is the association uniting on a voluntary basis the state
joint-stock companies, collective enterprises and organizations, carrying out designing,
construction, reconstruction, and operation of highways and bridges. The concern
"Uzavtoyul" is the member of the International Road Federation (IRF) and member of the
World Road Association (PIARC).

List of project for transport sector development:
           Name of project                    Mode of     Cost million   Name of Bank
                                            transport          ($ US)
Modernization of the airports in            Uzbekistan          165.60              Bank of
Samarkand, Bukhara and Urgench                airways                          international
                                                                           relation of Japan
Modernization of the "Tashkent"             Uzbekistan           48.00                EBRD
airport                                       airways
Reconstruction of the Center for            Uzbekistan           18.80        Bank of KfW
technical servicing for modern aircrafts      airways                            Germany
m/by USA, EU and e.c. in Tashkent
Improvement of the passenger train and      Uzbekistan           50.47              Bank of
traffic                                       railways                         international
                                                                           relation of Japan
Rehabilitation railways                     Uzbekistan           70.00               ABRD
                                               railways
Renewal of the rolling stock (projects of   Uzbekistan           40.00               EBRD
import electric locomotives)                   railways
Develop of the passenger transportation     Uzavtotrans          29.00         World Bank
and traffic at the town, large and small
urban communities



                               ECO PRIORITY ISSUES

                                             69
 Early operationalization of ECO transit regime including TTFA and TTA

 Construction of missing road and railway links such as Kerman-Zahedan and
  Mashad-Bafq etc.

 Operationalization of container trains from Almaty to Istanbul and possible links
  to Europe.

 International passenger train from Almaty to Istanbul via Tehran.

 Trade and transport facilitation measures within the region including easy access
  to visas, reduction of transit fees and simplifying custom procedures.




                                      70
Country Profiles




     71
                          Afghanistan

Official Name             Interim Administration of Afghanistan
Head of State             President H.E Mr. Hamid KARZAI
National Day              19th August (Independence Day-1919)
Capital                   Kabul
Area                      652,090 sq.km.
Border countries          China, Iran, Pakistan, Tajikistan, Turkmenistan, Uzbekistan.
Official Language         Pashto and Dari (Afghan Persian)
Population                22,500 thsd. persons (2001)
GDP (at current prices)   11,200 mln US$ (1998)
GDP per capita            478.6 US$ (1998)
National Currency Unit    Afghani (AFA)
Exchange rate             39,000 (June 2002)
(AFA/US$)
Imports                   Total value: 450 mln US$ (2000)
                          Major Items: petroleum products, foodstuff, sugar, wheat,
                          flour, rice, cooking oil, agricultural inputs, electronics,
                          crockery, cars/motorbikes, auto parts, fabrics, cosmetics,
                          tires, tea.
Exports                   Total value: 130 mln US$ (2000)
                          Major Items: Dried fruits and nuts, carpets and rugs, wool,
                          raw cotton, hides and pelts, natural gas, precious and semi-
                          precious gems.
Natural Resources         Natural gas, petroleum, hydrocarbon, coal, copper, chrome,
                          talc, barites, sulfur, lead, zinc, iron ore, tin, salt, gold, silver,
                          lapis, uranium, rubies, rare metals.
Agricultural Products     Wheat, meat, fruits, nuts; wool, mutton, karakul pelts
Main Industries           Small-scale production of textiles, soap, furniture, shoes,
                          fertilizer, cement; hand-woven carpets; natural gas, oil, coal,
                          copper, leather, gold and silver jewelry.




                                      72
                          Azerbaijan
Official Name (local      Azerbaijan Republic (Azarbaycan Respublikasi)
form)
Head of State             President H.E Mr.Heydar ALIYEV
National Day              28th May (Establishment date-1918)
Capital                   Baku (Baki)
Area                      86,600 sq.km.
Border countries          Iran, Turkey, Russia, Georgia, Armenia.
Official Language         Azerbaijanian (Azeri)
Population                8,100 thsd. persons (2001)
GDP (at current prices)   5,716 mln US$ (2001)
GDP per capita            705.7 US$ (2001)
National Currency Unit    Manat (AZM)
Exchange rate             4,870 (June 2002)
(AZM/US$)
Imports                   Total value: 1,465 million US $ (2001)
                          Major Items: machinery and equipment, food products,
                          beverages, spirits and vinegar, tobacco, base metals,
                          vegetables, musical instruments, electrical & medical
                          equipment, mineral products, alive animals, plastic,
                          rubber, chemicals and textiles.
Exports                   Total value: 2,079 million US $ (2001)
                          Major Items: oil and gas, oilfield equipment,
                          machinery, mineral products, base metals, chemicals,
                          textile, cotton, vegetables, foodstuffs, electrical
                          equipment.
Natural Resources         Petroleum, natural gas, alumina, iron ore, nonferrous
                          metals.
Agricultural Products     Cotton, grain, sugar beet, rice, grapes, fruits,
                          vegetables, tea, tobacco; cattle, pigs, sheep, poultry,
                          goats.
Main Industries           Petroleum and natural gas, petroleum products, oilfield
                          equipment, mineral substances, metallurgy, pulp &
                          paper, wood & wood products, steel, iron ore, food-
                          stuffs & tobacco, cement; chemicals and
                          petrochemicals, textiles.


                                      73
                             Iran
Official Name       (local
                             Islamic Republic of Iran (Jomhuri-ye Eslami-ye Iran)
form)
Head of State             President H.E Hojjatoleslam Seyed Mohammad KHATAMI
National Day              11th February (Islamic Revolution of Iran-1979)
Capital                   Tehran
Area                      1,648,000 sq.km.
Border countries          Afghanistan, Armenia, Azerbaijan (Nakhichevan), Iraq,
                          Pakistan, Turkey, Turkmenistan.
Official Language         Persian (Farsi)
Population                64,900 thsd. persons (2001-2002)
GDP (at current prices)   128,194 mln US$ (2001-2002)
GDP per capita            1,975 US$ (2001-2002)
National Currency Unit    Rial (IRR)
Exchange             rate 7,916.60 (June 2002)
(IRR/US$)
Imports                      Total value: 18,138 million US$ (2001-2002)
                             Major Items: Road vehicle & machinery, base metals,
                             chemical products, iron, steel & manufactures, animal and
                             vegetable fats, chemicals & pharmaceuticals, food & live
                             animals, plastics, tobacco, and technical services.
Exports                      Total value: 23,716 million US$ (2001-2002)
                             Major Items: Petroleum, gas, and petrochemical products,
                             mineral products, food products, carpet, pistachio, caviar,
                             skin and leather, handicrafts, fresh & dried fruits, hides, iron
                             and steel, chemicals, textiles, refined copper.
Natural Resources            Petroleum, natural gas, coal, chromium, copper, iron ore,
                             lead, manganese, zinc, sulfur.
Agricultural Products        Wheat, rice, barley, potato, sugar beets, cotton, date,
                             pistachio, nuts, fresh and dried fruits, poultry, meat, dairy
                             products, wool, caviar, flowers and medicinal plants.
Main Industries              Oil and gas, steel, aluminum, copper, electric and electronic
                             equipment, cement & other building materials, metallurgy,
                             home appliances, iron, textile, rugs and carpets, tapestry,
                             miniature, ceramic, food processing (particularly sugar
                             refining & vegetable oil production), petrochemicals, and car
                             manufacturing & assemblies.


                                           74
                             Kazakhstan
Official     Name   (local Republic of Kazakhstan (Qazaqstan Respublikasy)
form)
Head of State                President H.E.        Mr.      Nursultan     Abishevich
                             NAZARBAYEV
National Day                 25th October (Republic Day-1990)
Capital                      Astana
Area                         2,724,900 sq km.
Border countries             China, Kyrgyzstan, Turkmenistan, Uzbekistan, Russia
Official Language            Kazakh, (Russian widely used in government and
                             business)
Population                   14,821 thsd. persons (2001)
GDP (at current prices)      22,391 mln US$ (2001)
GDP per capita               1,510 US $ (2001)
National Currency Unit       Tenge (KZT)
Exchange                rate 153,10 (June 2002)
(KZT/US$)
Import                       Total value: 6,363 mln US$ (2001)
                             Major Items: Machinery and parts, industrial materials,
                             oil, natural gas and consumer goods.
Export                       Total value: 8,647 mln US$ (2001)
                             Major Items: Oil, ferrous and non-ferrous metals,
                             chemicals, grain, wool, and meat.
Natural Resources            Oil and gas, coal, iron ore, manganese, chrome ore,
                             nickel, cobalt, copper, molybdenum, lead, zinc, bauxite,
                             gold, silver, aluminium, uranium, potassium, cadmium,
                             salt and construction materials.
Agricultural Products        Grain (mostly spring wheat), cotton; wool, livestock.
Main Industries              Oil, coal, manganese, chromite, lead, zinc, copper,
                             titanium, bauxite, gold, silver, phosphates, sulfur, iron
                             and steel, nonferrous metal, tractors and other
                             agricultural machinery, electric motors, construction
                             materials.

                                          75
                            Kyrgyzstan
Official Name (local        Kyrgyz Republic (Kyrgyz Respublikasy)
form)
Head of State               President H.E Mr.Askar AKAYEV
National Day                31st August (Independence Day-1991)
Capital                     Bishkek
Area                        198,500 sq km
Border countries            China, Kazakhstan, Tajikistan, Uzbekistan.
Official Language           Kyrgyz, Russian (lingua franca)
Population                  4,974 thsd. persons (2001)
GDP (at current prices)     1,525 mln US$ (2001)
GDP per capita              310.7 US$ (2001)
National Currency Unit      Som (KGS)
Exchange             rate   47.97 (June 2002)
(KGS/US$)
Import                      Total value: 467.2 mln US$ (2001)
                            Major Items: grains, mineral products, natural gas,
                            automobile fuel, bituminous coal, kerosene, cars, equipment
                            and machinery, products of chemical, vegetable, lumber,
                            textile and base metals.
Export                      Total value: 476.1 mln US$ (2001)
                            Major Items: precious metals, electric power, tobacco,
                            cotton, scrap and wastes of aluminum, chemicals, filament
                            lamps, means of land transport and spare parts, agricultural
                            products (vegetables and fruits), cement and slate, copper
                            wastes and scrap, raw leather and wool.
Natural Resources           Hydropower; gold and rare earth metals; coal, oil, natural
                            gas, nepheline, mercury, bismuth, lead, and zinc
Agricultural Products       Tobacco, cotton, potatoes, vegetables, grapes, fruits and
                            berries; sheep, goats, cattle, wool
Main Industries             Small machinery, textiles, food processing, cement, shoes,
                            sawn logs, refrigerators, furniture, electric motors, gold, rare
                            earth metals.


                                            76
                            Pakistan
Official Name (local        Islamic Republic of Pakistan (Islam-i Jamhuriya-e Pakistan)
form)
Head of State               General Pervez MUSHARRAF
National Day                23rd March (Republic Day-1956)
Capital                     Islamabad
Area                        796,095 sq. km
Border countries            Afghanistan, China, India, Iran
Official Language           English, Urdu (national language)
Population         (thsd.   139,100 (2000-2001)
persons)
GDP (at current prices)     59,416 mln US$ (2000-2001)
GDP per capita              429 US$ (2000-2001)
National Currency Unit      Rupee (PKR)
Exchange             rate   60.05 (June 2002)
(PKR/US$)
Imports                     Total value: 10,336 mln US$ (2001-2002)
                            Major Items: Industrial equipment, vehicles, iron ore, wheat,
                            tea, fertilizer, non electrical machinery, petroleum &
                            products, chemicals, edible oil, transport equipment, steel &
                            products, grains, electrical goods.
Exports                     Total value: 9,124 mln US$ (2001-2002)
                            Major Items: Cotton, sugar, textile-goods, garments &
                            hosiery, rice, leather items, carpet & rugs, sports goods,
                            fruits, handicrafts, surgical instruments and electrical
                            appliances, sea food (fisheries).
Natural Resources           Land, extensive natural gas reserves, petroleum, coal, iron
                            ore, copper, salt, limestone.
Agricultural Products       Wheat, cotton, rice, sugarcane, fruits, vegetables,
                            condiments, oil seeds, pulses, maize, barley, tobacco,
                            poultry, goats, beef, sheep, cattle, mutton.
Main Industries             Textiles, food processing, cement, fertilizer, steel, sugar,
                            electric goods, shipbuilding, beverages, construction
                            materials, clothing, paper products, shrimp.


                                           77
                          Tajikistan
Official Name (local      Republic of Tajikistan (Jumhurii Tojikiston)
form)
Head of State             President H.E. Mr. Emomali RAHMONOV
National Day              9th September (Independence Day-1991)
Capital                   Dushanbe
Area                      143,100 sq km
Border countries          Afghanistan, China, Kyrgyzstan, Uzbekistan.
Official Language         Tajik (Russian widely used in government and business)
Population                6,290 thsd. persons (2000)
GDP (at current prices)    1,035 US$ (2001)
GDP per capita            167 US$ (2001)
National Currency Unit    Somoni (SM)
Exchange rate (SM/US$)    2,704 (June 2002)
Imports                   Total value: 915 mln. US$ (2001)
                          Major Items: Alumina, natural gas, petroleum products,
                          electricity, grain, flour, machinery and equipment, foodstuffs.
Exports                   Total value: 877 mln US$ (2001)
                          Major Items: Aluminum, electricity, cotton fiber, fruits,
                          vegetable oil, textiles, precious and semi-precious stones.
Natural Resources         Aluminium, coal, oil, natural gas, iron, lead, zinc, antimony,
                          mercury, gold, silver, tin, tungsten, uranium, boron, salt,
                          carbonates, fluorite, precious and semi-precious stones.
Agricultural Products     Cotton, grain, silk, tobacco, fruits, grapes, vegetables; cattle,
                          sheep, goats.
Main Industries           Hydro-electric power, textiles, garment manufacture,
                          aluminum, zinc, lead, chemicals and fertilizers, cement,
                          vegetable oil, metal-cutting machine tools, refrigerators and
                          freezers.

                                           78
                          Turkey
Official Name (local      Republic of Turkey (Turkiye Cumhuriyeti)
form)
Head of State             President H.E Mr. Ahmet Necdet SEZER
National Day              29th October (Republic Day-1923)
Capital                   Ankara
Area                      783,577 sq.km
Border countries          Georgia, Armenia, Azerbaijan, Bulgaria, Greece, Iran, Iraq,
                          Syria
Official Language         Turkish
Population                68,036 thsd. persons (2001)
GDP (at current prices)   148,340 mln US$ (2001)
GDP per capita            2,180 US$ (2001)
National Currency Unit    Turkish Lira (TRL)
Exchange rate
                          1,569,143 (June 2002)
(TRL/US$)
Import                    Total value: 41,399 mln US$ (2001)
                          Major items: Mineral fuels-oils, gas, boilers, machinery and
                          mechanical equipment, vehicles and parts, organic chemicals,
                          plastic and products, cotton yarn and fabrics, pharmaceutical
                          products, optical parts and accessories, paper and paperboard,
                          iron and steel products, aircraft and parts, tanning or dyeing
                          extracts.
Exports                   Total value: 31,334 mln US$ (2001)
                          Major items: textiles, cotton yarn & fabrics, iron and steel
                          products, electrical machinery and equipment, vehicles and
                          parts, edible fruits, nuts, vegetables, salt, sulphur, earths and
                          stone, plastic and rubber products, tobacco, glass and
                          glassware, ceramics.
Natural Resources         Coal, antimony, mercury, sulfur, lignite, crude petroleum,
                          iron, chrome, copper, boron, minerals, magnasite, lead-zinc.
Agricultural Products     Grain (wheat and barley), tobacco, cotton, dry beans,
                          potatoes, vegetables, tea, fruits (nuts, citrus, grapes, apples,
                          olives), sugar beets, pulses, livestock.

                                          79
                          Turkmenistan
Official Name             Turkmenistan
Head of State             President H.E. Mr. Saparmurat Atayevich NIYAZOV
National Day              27th October (Independence Day-1991)
Capital                   Ashgabat
Area                      488,100 sq. km
Border countries          Kazakhstan, Uzbekistan, Iran, Afghanistan
Official Language         Turkmen, Russian (lingua franca)
                          Russian is widely used in government and business
Population                5,479 thsd. persons (2001)
GDP (at current prices)   4,600 mln. US$ (2001)
GDP per capita            968 US $ (2001)
National Currency Unit    Manat (TMM)
Exchange rate             5,200 (June 2002)
(TMM/US$)
Import                    Total value: 2,105 mln US$ (2001)
                          Major Items: Machinery and parts, grains, food and
                          beverages, plastics, wheat, flour, textiles.
Exports                   Total value: 2,560 mln US$ (2001)
                          Major Items: natural gas, oil, cotton, petroleum products,
                          chemicals, processed foods, minerals, sulfur, textiles,
                          electricity, and hand-made carpets.
Natural Resources         Oil, natural gas, coal, precious non-ferrous and rare metals,
                          celestine, sulfur, bentonite and kaolin clays, iodine, bromine,
                          potassium and common salts, marble onyx, various
                          construction materials, fresh subsoil, mineral waters.
Agricultural Products     Cotton, grains, fodder crops, melons, livestock.
Main Industries           Natural gas, oil, petroleum products, textiles, food processing,
                          machine building, production of construction materials,
                          carpet weaving.




                                          80
                           Uzbekistan
Official Name       (local Republic of Uzbekistan (Uzbekiston Respublikasi)
form)
Head of State              President H.E. Mr. Islam Abduganievich KARIMOV
National Day               1st September (Independence Day-1991)
Capital                    Tashkent (Toshkent)
Area                       447,400 sq. km
Border countries           Afghanistan,      Kazakhstan,     Kyrgyzstan,       Tajikistan,
                           Turkmenistan
Official Language          Uzbek, Russian (lingua franca)
Population                 25,116 thsd. persons (2001)
GDP (at current prices)    7,088 million US$ (2001)
GDP per capita             282.2 US$ (2001)
National Currency Unit     Sum (UZS)
Exchange              rate 750.04/ 757.04 (Official)/1080.0 (Market) (June 2002)
(UZS/US$)
Import                     Total value: 3,137 mln US $ (2001)
                           Major Items: Minerals and chemicals, grains, rubber, plastic,
                           machinery and equipment, energy products, textile,
                           pharmacological products, perfume, cosmetics and
                           detergents, ferrous & non-ferrous metals, foodstuffs.
Exports                    Total value: 3,265 mln US$ (2001)
                           Major Items: Cotton, gold, natural gas, fertilizers, silk,
                           mineral and chemical goods, energy products, ferrous and
                           non-ferrous metals, textiles, food products, equipment and
                           mechanical devices, electrical machines and equipment, gears
                           and apparatus, automobiles.
Natural Resources          Natural gas, petroleum, coal, gold, uranium, silver, copper,
                           lead, zinc, tungsten, molybdenum, aluminum, wolfram,
                           rhenium, marble, granite and gabbro, phosphorites, salts
Agricultural Products      Cotton, grain, potatoes, vegetables, melons, fruits, silkworm
                           cocoons, astrakhans, hides, leather, wool, grapes, cattle, and
                           poultry.
Main Industries            Electric power, fuel, natural gas, ferrous & non-ferrous metals,
                           chemical and petrochemical, machine-building, forest, wood
                           processing and paper, construction materials, textiles, food
                           processing, aviation and automobile, metallurgy.


                                           81
                         ECO IN FIGURES / MAIN STATISTICS
Table-1 Landlocked ECO Member States exports to International Markets
                                                      (1998-Million US$)
Countries       Industrial                                Middle      ECO         Total      Total      Transit
                Countries    Asia    Russia*    Europe    East        Countries   transit    Trade(2)   Rate
                                                          +                       trade(1)   **         (1/2)
                                                          others                                        (%)
Azerbaijan        62.6        2.8               215.2       7.8       169.4       457.8      700.3      65.4

Kazakhstan      1265.1       569.7              522.2     114         255.3       2726.3     5,403.80   50.5

Kyrgyzstan      221.5        21.3    83.8        38.7          1.1     20.2       386.4        513.4    75.3

Tajikistan      121.4        15.8    53.7       35.3           0.8     39.8       266.8        575.1    46.4

Turkmenistan    127.7         28.1   39.5        52.8          4.3    215.6       468        575.30     81.3

Uzbekistan      576          357.4   471.7      303.5         103.2    81.5       1893.3     2447.30    77.4

Total           2374.3       995.1   648.7      1167.7    231.2       781.6       6198.6     10,215     60.7

Share of exports going through transit operations (%)                 60.7


Source: IMF Trade Statistics (2000)
(*) excluding trade with neighbouring countries.
(**) Including neighbouring countries.




                                                         82
Table 2: Transport Volume in the ECO Region

                            1999                        2000                       2001
               Export*        No. of      Export*         No. of      Exports*      No. of
                              Trucks                      Trucks                    Trucks

Afghanistan

Azerbaijan     727,513        40,417      733,156         40,740      526.079       635,850


Iran                                      1,820,068       101,115     1,130,833     62,724


Kazakhstan     562,890        31,272      834,131         46,341      315,436       17,524


Kyrgyzstan     1,581,961      87,887      1,185,687       65,872      1,145,281     63,627


Pakistan       68,312         3,795       78,098          4,339       144,459       8,026


Tajikistan     2,942          163         13,643          758         3298          183


Turkey         493,109        27,395      560,325         31,129


Turkmenistan


Uzbekistan     162,591        9,033       272,015         15,112      258,069       14,337


Total ECO      3,599,318      199,962     5,497,123       305,395     3,523,455     195,746


Other          35,019,492     1,945,527   16,295,204      905,289     13,353,651    741,870
Countries***

General        38,618,810     2,145,489   20,977,509      1,165,417   16,877,106    937,616
Total




                                                   83
Table-3 International Border Crossing Points of ECO Countries

               International
               Border Crossing
               Points
Afghanistan    (1) Pakistan
               (2) Iran
               (3) Tajikistan
               (4) Uzbekistan
               (5) Turkmenistan
Azerbaijan     (1) Georgia            Gazakh, Belokanik
               (2) Russia             Kuba
               (3) Iran               Astara, Kanlihk, Kyahlvae, Julfa
               (4) Turkey             Cedorek
Iran           (1) Afghanistan        Dogharoun
               (2) Armenia            Nordouwz
               (3) Azerbaijan         Astara, Bilehsavar, Jolfa
               (4) Iraq               Khosravi
               (5) Pakistan           Mirjaveh
               (6) Turkey             Bazargan, Sero
               (7) Turkmenistan       Bajgiran, Sarackhs, Lotfabad, Pol
Kazakhstan     (1) Kyrgyzstan         Georgevka, Merke, Kemin
               (2) Turkmenistan       Bekdash
               (3) Uzbekistan         Stephoe, Kopaya, Akjibit
               (4) Russia             Pogodaevo, Troizk, Chistoe, Karapoga,
                                      Zelezinka, Lokot, Kotyaevka, Ozernoe,
                                      Tashanta
               (5) China              Khorgos, Maikapchagai, Bakhty, Druzhba
Kyrgyzstan     (1) Kazakhstan         Georgievka, Chaldovar, Kegan
               (2) Uzbekistan         Osh, Karasu, Kizibl-Kiya
               (3) Tajikistan         Isfand, Sari-Tash, Karamik
               (4) China              Torugart, Irkeshtam




                                          84
Table-3 International Border Crossing Points of ECO Countries (continued)

                   International
                   Border Crossing
                   Points
Pakistan           (1) Afghanistan         Torkham, Chamman
                   (2) China               Khunjerab
                   (3) India               Wagha
                   (4) Iran                Taftan
Tajikistan         (1) Kyrgyzstan          Sulokta, Murgab, Dzhirgital
                   (2) Uzbekistan          Tursan-Zabe, Penjikent, Ura-Tube,
                                           Bekabad, Bulok, Kanibadam
                   (3) Afghanistan         Ishkashim, Aivadzh
                   (4) China               Kulma Pass
Turkey             (1) Iran                Gurbulak, Esendere
                   (2) Georgia             Sarp, Turkgozu, Aktas
                   (3) Azerbaijan          Dilucu
                   (4) Iraq                Habur
                   (5) Syria               Yayladag, Cilvegozu, Oncupinar,
                                           Cobanbeyli, Akcakale
                   (6) Bulgaria            Kapikule, Aziziye
                   (7) Armenia             Dogukapi (closed)
                   (8) Greece
Turkmenistan       (1) Kazakhstan          Bekdash
                   (2) Uzbekistan          Kunya-urgench, Mangit, Togta, Tezen-
                                           bazar, Takhiatash, Farap, Gazojak, Kelif,
                                           Tallymerjen
                   (3) Iran                Gandan, Artyk, Gudriolum, Saragt
                   (4) Afghanistan         Gushgy
Uzbekistan         (1) Kazakhstan          Chernyavka, Kugayaz, Oqzts
                   (2) Kyrgyzstan          Khodzhaabad, Aim, Fergana
                   (3) Tajikistan          Khavast, Taylak, Uzun, Bekhabad, Kirovo,
                                            Pungan
                   (4) Turkmenistan        Khodzeili, Tokhitash, Mangit, Gurlen,
                                           Kshahkupir, Alat Khzarasp,
                                           Tarimardzhan, Bordir
                   (5) Afghanistan         Khairaton
Source:    UNESCAP, Transport, Communications, Tourism and Infrastructure Development (TCTID)
           Division.


                                               85
ECO in Figures




      86
Table 4 Status of ECO countries accession or being party to International conventions listed in UNESCAP
                                  resolution 48/11 as at 12 April 2002


                      Convention    Convention       Custom’s          Custom’s      Convention   International   Convention
                      on road       on road          convention        convention    on           convention on   on the
                      traffic       signs and        on                on            contraries   the             contract for
                      1968          signals          international.    Temporary.    1972         harmonization   the
     Country                        1968             transport of      Importation                of frontier     International
                                                     goods under       of                         control of      carriage of
                                                     TIR carnet        commercial                 goods.          goods by
                                                     1975              road                                       road (CMR)
                                                                       vehicle                                    1956
                                                                       1956
     Afghanistan                                          (x)              (x)
     Iran                 (x)           (x)               (x)                                                         (*)
     Kazakhstan           (*)           (*)               (*)                                                         (*)
     Kyrgyzstan                                           (*)              (*)          (*)                           (*)
     Pakistan              x             x
     Tajikistan           (*)           (*)               (*)                                                         (*)
     Turkey                                               (x)                           (x)                           (*)
     Turkmenistan         (*)           (*)               (*)                                                         (*)
     Uzbekistan           (*)           (*)               (*)              (*)          (*)                           (*)

     Notes: (x) Party / acceded
           (*) Acceded after the adoption of 48/11
           Source: UNESCAP / 250 report




                                                                      87
               Table 5 Existing visa fee structure for Nationals of ECO Member States




  Name of
country                                     Islamic Republic of Pakistan


For member
states
              Single entry Double         Multiple
                           entry         entry)
Afghanistan   Gratis       Gratis        Gratis
Tajikistan,   US$10        US$40         US$40
Turkmenistan,
Uzbekistan,
Kazakhstan,
Kyrgyzstan
and
Azerbaijan
Islamic       Rls150,000   Rls320,000    Rls320,000
Republic of   (Rs.940)     (Rs.2000)     (Rs.2000)
Iran
Republic of   Rs.283       Rs.566        Rs.498
Turkey



                                                  88
                            Turkmenistan (In US$ dollars)
                 10 days     20 days    1 month         3 months                  6months                 1 year
                 single      single
Islamic          20          30         Single Multiple Single Multiple           Single    Multiple      Single    Multiple

Republic of                             40     60       100    140                190       260           370       500
Pakistan
Islamic          20           30           40        60       100        140      190       260           370       500
Republic of
Iran
Republic of      16           24           32        48       80         112      152       208           296       400
Turkey
Afghanistan      20           40           60        60       140        140      260       260           500       500
Republic of      40           50           60        60       140        140      260       260           500       500
Uzbekistan

                               Republic of Tajikistan (In US$)
                 7 days       14 days     1          2        3            6 months                    1 year
                                          month      months   months
Afghanistan,                  Single      Single     Single   Single       Single     Multiple         Single      Multiple
Iran, Pakistan   40           50          60         70       80           120        180              240         300
and Turkey
Turkmenistan     10 (10 days) 15 (20      20         -        50 Single    95         130              185         250
                              days)       Single              70
                                          30                  multiple
                                          multiple
Uzbekistan       -            -           4          -        -            -          10               -           20
Azerbaijan,      No visa      No visa      No        No       No           No         No visa          No          No visa
Kazakhstan &                              visa       visa     visa         visa                        visa
Kyrgyzstan
                                                     89
                                    Republic of Uzbekistan (In US$)

                  7days     15 days     1           3 months             6 months               1 year
                                        month
Afghanistan,                                     Single   Multiple   Single   Multiple   Single    Multiple
Iran, Pakistan,      40        50         60       80      150        120      150        160       250
Turkey
Kazakhstan         Gratis    Gratis     Gratis   Gratis    Gratis    Gratis    Gratis    Gratis     Gratis
Azerbaijan          -do-      -do-       -do-     -do-      -do-      -do-      -do-      -do-       -do-
Kyrgyzstan,           4         4          4       10        10        15        15        25         25
Tajikistan
Turkmenistan         51        61         71      91        161       131       161       171        261




                                                   90
                              Relevant Maps

Map 1 – Central Asia




       The four road / rail border crossings together with the northern border
crossing at Sust into China are marked in the above map.

       The proposed rail link between Chaman to Kandahar is also marked on the
map.




                                     91

								
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