Tariq Saeedi
Turkmenistan has invited the CIS countries to take part in the emerging and planned infrastructure projects aimed at connectivity with South Asia and beyond.
President Serdar Berdimuhamedov, in his speech at the summit of the heads of state of CIS, floated the idea. The summit was held in Moscow on 8 October 2024.
Here is the relevant portion from the speech of the president of Turkmenistan:
“In general, we are convinced that the CIS, in its economic activities, should focus on major, defining trends in global geo-economics in order to ensure its strategic involvement. The essence of these trends today is the shift of economic development to the south and southeast. The CIS is a natural space in this irreversible movement.
“One of the effective ways is the participation of the CIS in international and regional projects in the south and south-east directions from the borders of the Commonwealth. Moreover, the opportunities for this are opening up. More recently, in mid-September, Turkmenistan began the practical implementation of a new stage of construction of large infrastructure facilities. The construction of the Afghanistan part of the Turkmenistan–Afghanistan–Pakistan–India gas pipeline has started. The Afghan section of the Turkmenistan–Afghanistan–Pakistan power transmission line has been launched. The construction of the Turkmenistan–Afghanistan railway line through the territory of the neighboring state has begun.
“The participation of the Commonwealth countries in these and other similar projects is a reliable way to reach a strategic perspective, and we must fully utilize our combined resources and potential.
“This fully applies to the issue of transport connectivity, primarily in the context of the implementation of the Action Plan for Infrastructure Optimization and the Development of International Corridors passing through the territories of the CIS member States for the period up to 2030.”
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Central Asia is already engaged in creating the connectivity solutions between Central Asia and South Asia.
As mentioned in the speech of the Turkmen president at the CIS summit, Turkmenistan launched a number of projects in September 2024 at a ceremony held near the border of Afghanistan. It was jointly led by the National Leader of the Turkmen people, Chairman of the Malakhaty Khalk Gurbanguly Berdimuhamedov and Acting Chairman of the Cabinet of Ministers of Afghanistan Mullah Mohammad Hassan Akhund. The president of Turkmenistan participated through the video link.
The projects launched during the ceremony:
- The inauguration of the construction of the Serkhetabad– Herat gas pipeline, referred to as “Arkadagyň Ak ýoly”, which is the main link of the Turkmenistan–Afghanistan–Pakistan–India (TAPI) project
- The opening of a 177-meter railway bridge on the Serkhetabad–Torghundi railway (border of Turkmenistan and Afghanistan).
- The launch of the construction of the Shatlyk-1 gas compressor station at the Shatlyk field in the Mary province. The facility will be equipped with specialized equipment from the world’s leading companies – General Electric and Dresser Rand. The Şatlyk-1 will gather gas supplied from the Galkynysh, Dowletabat and Yashlar fields. The capacity of the new gas compressor station is 30 billion cubic meters of gas per year.
- The inauguration of the construction of a fiber-optic communication line along the Serkhetabad-Herat route
- The launch of the construction of a warehouse complex and a loading-unloading yard on the territory of the dry port of the Torghundi railway station. The dry port is an important object of transport and logistics infrastructure, an internal terminal directly connected by land communication with the seaport. It serves as a hub for transshipment and storage of goods on domestic routes.
- The launch of the construction of 22-km Torghundi-Sanabar railway, being the first segment of Torghundi-Herat railway.
- Opening of the Nur ul-Jihad power station in Herat province, the start of Turkmen electricity supplies from the Serkhetabad station to Nur ul-Jihad as part of the first phase of the Turkmenistan-Afghanistan-Pakistan (TAP) power transmission line project.
It is not just Turkmenistan but the whole of Central Asia that is sharply focused on connectivity with South Asia.
Prime Minister Abdulla Aripov of Uzbekistan visited Afghanistan, 17-18 August 2024. It was the highest-level visit of a foreign head of government to Afghanistan since the Taliban came to power in 2021.
According to the Uzbek and Afghan media, 12 agreements worth $1.4 billion were signed during the visit in the investment sector, and 23 agreements worth $1.1 billion were signed in the trade sector in the presence of Mullah Abdul Ghani Baradar, Economic Deputy of the Prime Minister’s Office, and Uzbekistan’s prime minister, Abdulla Nigmatovich Aripov.
The total value of the signed documents was $2.5 billion.
The Uzbek-Afghan business forum, coinciding with the visit, included representatives from relevant ministries and agencies, industry associations, and over 500 business leaders from both countries.
The forum also featured the “Made in Uzbekistan” exhibition, aimed at boosting mutual trade between Uzbekistan and Afghanistan to $1 billion. The exhibition showcased products from 80 major Uzbek companies across various industries, including automotive, textiles, jewelry, food, electrical engineering, mining, and pharmaceuticals.
The exhibition included B2B and G2B meetings, allowing entrepreneurs to establish new business connections and discuss practical aspects of joint projects and trade agreements.
The Preferential Trade Agreement between Uzbekistan and Afghanistan is set to take effect on 1 October 2024. The agreement includes the elimination of import duties on 14 agreed-upon types of goods, offering additional advantages to exporters.
To boost the import of agricultural products from Afghanistan, the procedure for obtaining phytosanitary permits has been simplified.
As of 1 August, the Ayritom-Hairaton border post operates 24/7.
For visitors to the International Trade Center in Termez, a 15-day visa-free regime is being introduced, along with exemption from all taxes.
Additionally, the two countries have signed an agreement on mutual promotion and protection of investments to encourage Afghan businesses to operate in Uzbekistan.
The International Trade Centre was opened on 29 August 2024 at Termez, the border town between Uzbekistan and Afghanistan. It is located on the Uzbek territory.
The sprawling complex covers an area of 36 hectares. The project cost was USD 70 million.
The centre will play an important role in the development of trade and export of industrial and consumer goods produced by entrepreneurs from Afghanistan, Pakistan and other countries.
According to experts, 1.5 million people will visit the complex annually, and the annual sales volume will amount to 1 billion 200 million dollars.
The ceremony was attended by Deputy Prime Minister of the Republic of Azerbaijan Shahin Mustafayev, Deputy Minister of Economy and Commerce of the Kyrgyz Republic Nazarbek Malayev, Deputy Minister of Trade and Integration of the Republic of Kazakhstan Kairat Toreboev and others.
The event was addressed by the Prime Minister of the Republic of Uzbekistan Abdulla Aripov and the Acting Prime Minister of Afghanistan Baradar Mullah Abdul Ghani.
Within the framework of the privileges created in the free trade zone, all citizens of foreign countries are given the opportunity to stay in the center and leave Uzbekistan for 15 days without an entry visa. A multicurrency system has been introduced: Uzbek sums, US dollars, euros, Russian rubles and yuan are in circulation here. All goods arriving on the territory of the center are placed and released without customs duties. Banks, notary offices and other public service centers have been established in the region. The complex also includes the Hilton Garden Inn hotel, the modern Akfa Medline medical complex, the Central Asia University business school, a large shopping center, a restaurant, a hostel, a large logistics center and manufacturing plants. A daily bus service has been established from Mazar-i-Sharif for those arriving from Afghanistan.
The International Trade Centre is considered an important part of the Karachi-Termez-Tashkent-Kazakhstan-Russia transport corridor and provides access to the ports of the Indian Ocean.
The large complex has created conditions for receiving, storing and processing products based on modern technologies, and quick clearance of goods according to the “Single Window” principle.
Akfa Medline Ayritom Clinic has 315 qualified doctors and other medical specialists who provide quality services in the radiology, dentistry, physiotherapy and outpatient departments.
More than 500 Afghan entrepreneurs will be able to improve their skills in trade and production at training courses organized at the Central Asia University Business School. All students will be provided with dormitory accommodation with the necessary amenities.
The shopping center will soon begin manufacturing doors and frames “Imzo” with a projected value of 4.5 million dollars. As a result of the new project, the budget will receive 150 million soums per year, which will provide employment for 25 people. The jewelry and semi-finished jewelry manufacturing enterprise “TERMEZ GOLD PRODUCTION” and the lighting equipment manufacturing enterprise “CITY-ELECTRIC GROUP” will also begin operating.
Meanwhile, on the sidelines of the inauguration ceremony, Mullah Abdul Ghani Baradar also met with the Deputy Prime Minister of Azerbaijan. Baradar welcomed the opening of that country’s embassy in Kabul and urged Azerbaijan’s private sector to invest in Afghanistan.
The Deputy Prime Minister of Azerbaijan also emphasized that his country is ready to reactivate the Lapis Lazuli route to expand its trade relations with Afghanistan and increase the level of imports.
The Lapis Lazuli Corridor, mentioned by the deputy prime minister of Azerbaijan runs through Afghanistan, Turkmenistan, Caspian, Azerbaijan, Georgia and culminates in Türkiye. This is one of the connectivity options between Europe and South Asia.
The three other corridors serving similar purposes:
- China–Kyrgyzstan–Uzbekistan–Turkmenistan–Iran–Türkiye
- China–Tajikistan–Uzbekistan–Turkmenistan–Iran
- China–Kazakhstan–Turkmenistan–Iran–Persian Gulf
The first meeting of the railway administrations of the participating countries of the multimodal transport corridor Uzbekistan – Turkmenistan – Iran – Türkiye was held in Istanbul a few weeks ago.
In July 2023, the railway agencies of Afghanistan, Pakistan and Uzbekistan held the final stage of negotiations on the Trans-Afghan railway line.
The Trans-Afghan Railway line is a large-scale project that will open up new prospects for transport cooperation and development in the region. It will allow to establish a direct rail links between Uzbekistan and Pakistan through the territory of Afghanistan, providing more efficient trade and logistics, the agency notes.
The length of the Trans–Afghan Railway on the Termez – Mazar–I–Sharif – Kabul – Peshawar route will be 774 km. Earlier, Uzbek news outlets reported that 1,212 additional facilities (including 336 bridges and 5 tunnels), 785 km of power lines and 790 km of communication lines are planned to be built along the line.
Simultaneously, the the multimodal corridor “Belarus – Russia – Kazakhstan – Uzbekistan – Afghanistan – Pakistan – ports of the Indian Ocean” is taking shape.
In September 2024, Pakistan officially joined the Memorandum of Understanding on the creation and development of the Belarus–Russia–Kazakhstan–Uzbekistan –Afghanistan–Pakistan – Indian Ocean Ports International Transport Corridor.
The Minister of Communications of Pakistan signed this Memorandum, emphasizing the importance and significance of this project for the development of trade and economic relations and cargo transportation in the region.
The ITC BRKUAP initiative was launched in November 2023 by the Ministers of Transport of Russia, Kazakhstan, and Uzbekistan.
The first meeting of the working group on corridor development took place in April 2024 in Termez, where Belarus joined the memorandum and Afghanistan and Pakistan announced their domestic procedures for joining. A roadmap outlining specific plans for cargo transportation, digitalization, and customs optimization was also signed.
It must be noted that nCa proposed this idea in February 2023. We argued that the diktat of geography makes Central Asia and Pakistan inseparable. We suggested that connectivity options should be considered under the theme of CAPS – Central-Asia-Pakistan-Seas.
Meanwhile, Turkmenistan is poised to become the first Central Asian nation to access Gwadar port as part of the China-Pakistan Economic Corridor (CPEC). According to the media reports in September 2024, an agreement between Pakistan and Turkmenistan is expected to be signed soon.
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The connectivity initiatives between Central Asia and South Asia are already in motion in various formats.
The countries taking part in this are Turkmenistan, Uzbekistan, Kazakhstan, Afghanistan, Azerbaijan, Iran, Türkiye, Russia, Belarus, and Pakistan.
Not far behind are Tajikistan and Kyrgyzstan. Tajikistan is preparing to bring its railway line to the border of Afghanistan. This would possibly be segment related to TAT Rail (Turkmenistan-Afghanistan-Tajikistan Railway Line)
Kyrgyzstan is speedily working on the creation of the China-Kyrgyzstan-Uzbekistan railway line. This will facilitate linking with all of the other connectivity solutions in the region.
China, of course, is part of these efforts under its BRI.
The invitation of the president of Turkmenistan from the CIS platform sends two messages: 1. We need to do more (and soon) to tap the connectivity potential to its fullest; and 2. All of us stand to benefit from this. /// nCa, 10 October 2024