Azerbaijan included among countries with lowest investment burden for Eurasian Transport Network

The Eurasian Development Bank (EDB) has assessed the investment burden associated with the formation of the Eurasian Transport Network on the national economies of the region's states.

Alexander Zaboev, Head of the Center for Integration Studies at the EDB, made the remark at the presentation "Infrastructure of Transport Corridors in Eurasia: Development Results and Key Investment Trends," Report informs.

According to his data, when calculating the ratio of capital investment volumes in transport corridors to the nominal GDP of the states for 2025, the maximum fiscal and economic burden is recorded in Afghanistan at 63.5%. Kyrgyzstan (48%), Mongolia (33.6%), and Armenia (17.8%) are also listed among the countries with underfunded transport infrastructure.

"A very significant ratio of necessary investments in the transport sector to nominal GDP is observed in four states. What does this mean? It indicates that the transport infrastructure in these countries lacks sufficient investment. In other words, financial resources need to be attracted to develop the transport sector in these states for various reasons. For example, Afghanistan lacks the necessary funds despite a huge number of projects requiring implementation; roads need modernization, but funding for this is unavailable. In other countries, the reasons are different, such as large-scale railway construction programs that are already underway. In this regard, support from international financial institutions is certainly needed so that these projects can be completed on schedule," Zaboev emphasized.

According to the study's results, an average burden level is noted in Uzbekistan (11.6%), Kazakhstan (10.8%), Georgia (10.7%), Tajikistan (9.2%), Russia (8.5%), and Turkmenistan (7.8%). The lowest ratio of capital investments in corridor development to GDP is projected in Azerbaijan (4.5%), Iran (3.7%), and Belarus (0.4%).