SPECA States agree on a dedicated multi-partner trust fund- Adopt a roadmap for digitalization of the Trans-Caspian Transport Corridor

Special Report

Meeting for the first time since the United Nations Special Programme for the Economies of Central Asia (SPECA) was created in 1998, the Heads of State and Government of SPECA participating States adopted the Baku Declaration on 24 Nov 2023. The declaration endorses a roadmap for the digitalization of multimodal data and document exchange along the Trans-Caspian Transport Corridor and welcomed plans to establish a dedicated SPECA Multi-Partner Trust Fund.

The Summit marked the end of SPECA Week organized by Azerbaijan as the 2023 Chair to mark the Programme’s 25th anniversary.

According to the declaration, the presidents of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and the Deputy Chairman of the Cabinet of Ministers of Turkmenistan expressed their firm determination to further deepen and promote cooperation within the SPECA framework based on common interests, goals and values.

Mikayil Jabbarov, Minister of Economy of Azerbaijan

“We live in a world that is increasingly interconnected, and economic opportunities and challenges transcend borders. The SPECA programme recognizes that reality, aiming to foster economic growth, reduce inequalities, and enhance the prosperity of the region. It places strong emphasis on cross-border cooperation, trade facilitation, and the harmonization of economic policies. Given the diversity of our region, such collaboration is indispensable for unlocking its full economic potential.”

Looking at the prospects for the SPECA region in the next 25 years, UNECE Executive Secretary Tatiana Molcean underlined its sustained economic dynamism, increasingly educated and expanding workforce, improved infrastructure and varied resource endowments.

“With such characteristics, the region can look forward to a more prosperous future, where cooperation will foster sustainable prosperity. These positive trends and opportunities call for even more regional cooperation, underpinned by a strong multilateral platform, practical tools, and strong partnerships. One such tool is the SPECA Multi-Partner Trust Fund under UN management. But beyond the Fund, it will be crucial to make SPECA a connecting platform for a wider set of partners, including the neighbouring countries, the key regional organizations and the international financial institutions,” said Ms. Molcean.

Azerbaijan will allocate 3.5 million US dollars to the SPECA Trust Fund, said President of Azerbaijan Ilham Aliyev as he addressed the Summit of the United Nations Special Program for the Economies of Central Asia (SPECA).

“We welcome the recent adoption of the UN General Assembly resolution on the 25th anniversary of SPECA. The SPECA Trust Fund was established under the auspices of the UN. Azerbaijan will allocate 3.5 million US dollars to the Trust Fund.

The economic forum, held on the sidelines of the SPECA Week in Baku, will contribute to fostering business ties between our countries. The exhibition in the Baku Expo Center vividly portrays the development in our countries.

Azerbaijan and the countries of Central Asia are bound by centuries-long historical and cultural ties. Azerbaijan and Central Asia represent a single historical, cultural and geopolitical space, with increasing strategic significance. This September, I was invited for the first time to the Summit of the Heads of Central Asian States in Dushanbe, as the guest of honor. Once again, I express my gratitude for the invitation. I consider today’s Summit as a logical follow-up to the Dushanbe meeting,” President Ilham Aliyev said.

Digitalizing the Trans-Caspian Transport Corridor

Highlighting the importance of the Trans-Caspian trade and transport corridor as one of the most efficient and sustainable links between Asia and Europe, the participants of the SPECA Week called for improvement of transport connectivity throughout the corridor by enhancing effective communications between transport companies, freight forwarders, logistics centres, and national operators.

The Roadmap for the Digitalization of Multimodal Data and Document Exchange along the Trans-Caspian Transport Corridor endorsed at the Summit will help ensure seamless, real-time data exchange across supply chains and enhancing transport efficiency using the UN digital standards and legal instruments in SPECA participating States by 2027.

It stipulates, among other things, using digital standards to ensure data interoperability across different transport modes, and implementing smart transport solutions including the eTIR international system based on the UNECE TIR Convention.

It also emphasizes participation in business-to-business (B2B) operational supply chain data exchanges, multimodal freight information interoperability, aligning port community systems with UN/CEFACT standards and the use of eCMR based on the UNECE CMR Convention.

The implementation of the roadmap will require a strong capacity-building component benefitting both the public and private sectors in the SPECA participating. SPECA Working Groups on trade, transport, and innovation will be engaged to strengthen work in support of this initiative.

A vision for a more sustainable SPECA region

The SPECA Week in Baku was also a time of reflection on the future of the SPECA region and the role the programme going forward.

One key topic for the region is energy connectivity and the shift to greener and more sustainable energy sources. “Central Asia and the broader Euro-Asian region hold significant renewable energy potential, particularly in solar and wind energy. Harnessing this potential is not just an environmental imperative but a strategic economic opportunity”, noted Dmitry Mariyasin, UNECE Deputy Executive Secretary.

Participants of the SPECA Week have also discussed a range of issues related to environmental sustainability, the water and energy nexus and the effects of climate change on the region. Such topics as the need for stronger cooperation on transboundary waters, the challenges of migration driven by climate change and the importance of city-level cooperation were discussed. Among the specific proposals made during the Week was creating a Forum of Cities within SPECA.

Gender equality was a special emphasis of discussions during the week: participants stressed the need to accelerate gender equality and the economic empowerment of women as a means of transformation within the SPECA region.

For the region to realise its full potential, the equal participation of women in regional economies, workforces and at decision making tables must be achieved. Ambitions of transformation will be more likely to succeed, if gender equality is a central feature of that transformation, noted Ms. Sadagat Gahramanova, Chair of the SPECA Working Group on Gender and the Sustainable Development Goals.

The huge untapped potential for economic development, rich natural resources and important transport corridors existing in the SPECA region, and emphasizing the strong political will, should be jointly utilized to promote regional cooperation, the security and well-being of their peoples, as well as to further connect the SPECA region with European and Asian markets.

The declaration also noted the following:

“- Welcoming the outcome of the Ministerial Meeting of the SPECA member states held on April 17, 2023 in Geneva, Switzerland, reflected in the Joint Ministerial Statement on the main theme of the Azerbaijan Chairmanship for 2023 – “Transforming the SPECA region into a connectivity hub with global outreach”, and the follow-up work carried out so far,

– Appreciating the consistent and active efforts of the Azerbaijan Chairmanship of SPECA in 2023 to transform SPECA into a more effective and efficient regional cooperation platform in Central Asia and beyond, based on the collective efforts, interests and responsibilities of the participating States and supported by the relevant United Nations regional commissions,

– Expressing sincere gratitude to the United Nations Economic Commission for Europe (UNECE) and the Economic and Social Commission for Asia and the Pacific (ESCAP) and their respective Executive Secretaries for the consistent support provided to the SPECA member countries since the inception of the Program,

It is hereby agreed that:

1. Declare the intention to strengthen the role of SPECA as a platform for economic cooperation and continuous dialogue with the aim of exploring ways to harness the opportunities of regional integration in solidarity and to formulate common responses to emerging common challenges, in particular by promoting interaction in priority areas such as connectivity, trade, transport and logistics, digital transformation and innovation, industry, energy, water management, environment, green transition and other areas of mutual interest.

2. Express in this regard determination to fully support the ongoing process of institutionalization of SPECA and the establishment of the necessary mechanisms that will enhance ownership, ensure regular dialogue, consistency and effective coordination of activities within SPECA, and facilitate the implementation of decisions taken by the Heads of State of the SPECA member countries.

3. To emphasize that digitalization and green transformation of transit routes, as well as trade and transport facilitation and energy connectivity, including green energy within the Trans-Caspian East-West Middle Corridor, represent an immediate priority area of cooperation, and for this purpose decided to adopt the Roadmap for Digitalization of Multimodal Data Exchange and Documents on the Trans-Caspian International Transport Route.

4. Reaffirm the political willingness to provide SPECA with an appropriate financial mechanism to support the implementation of the adopted decisions and in this regard welcome the establishment of the SPECA Multipartner Trust Fund (MTF) under the auspices of the United Nations, which will support practical cooperation, and in this regard invite international partners to contribute to the SPECA MTF.

5. Emphasize the importance of the Trans-Caspian East-West Middle Corridor as one of the most efficient and sustainable links between SPECA member countries and various regions in Asia and Europe and beyond and encourage countries to make greater use of the corridor’s potential for intercontinental transport operations and encourage the relevant authorities of SPECA member countries to focus on improving transport connectivity along the corridor by enhancing the efficiency of communication between transport companies,

6. Welcome the adoption of the United Nations General Assembly resolution on the 25th anniversary of SPECA and encourage United Nations member states, United Nations regional commissions and specialized agencies to continue to support the efforts of SPECA member countries.

7. Welcome the participation of international partners in the Baku Summit and emphasize the importance of continuing close cooperation that reflects a common desire to support the sustainable and steady economic development of the SPECA region for a greener and safer future.

8. Mandate respective ministries to jointly coordinate the implementation of this Declaration with UNECE, UNESCAP and other relevant international institutions.

9. To express sincere gratitude to His Excellency President Ilham Aliyev and the Government of the Republic of Azerbaijan for the excellent organization of the first SPECA Heads of State and Government Meeting with the participation of international partners in Baku, as well as other events organized in Azerbaijan during SPECA days on November 20-24, 2023″.

The United Nations Special Programme for the Economies of Central Asia (SPECA) was launched in 1998 to strengthen subregional cooperation in Central Asia and facilitate its integration into the world economy. The SPECA participating States are Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. UNECE and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) jointly provide overall support and coordination to the programme on the principle of annual rotation