ADB to allocate $400 million for modernization of border crossings in CAREC, including Azerbaijan

The Board of Directors of the Asian Development Bank (ADB) has approved the Border Upgrading and Integration for Logistics Development (BUILD) regional program, with total financing of $400 million, Report informs, citing the ADB.

The program aims to reduce the time and cost of freight transportation along transport corridors under the Central Asia Regional Economic Cooperation (CAREC) program.

The program's long-term objectives include improving border crossing facilities and procedures, as well as increasing the efficiency of cross-border transportation and transport corridors.

The project covers 11 countries: Azerbaijan, Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Afghanistan, Georgia, Pakistan, Mongolia and China.

The ADB's total financing ceiling for the program will amount to $385 million, including concessional and ordinary loan resources, while $15 million will be provided in grants. The maximum financing for an individual project will be $50 million.

In addition, the program is expected to attract around $150 million in co-financing from development partners and specialized trust funds.

In April 2026, the ADB approved regional technical assistance to prepare priority projects and conduct their feasibility studies.

The ADB says the program is needed due to significantly increased pressure on CAREC transport corridors, including the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), as well as delays at borders.

According to CAREC monitoring data, the average time required to cross road border checkpoints in the region more than doubled between 2010 and 2024, rising from 6.3 hours to 14.1 hours. The processing time for railway freight increased from 22.1 hours to 25.5 hours over the same period.

The BUILD program will not only upgrade physical border crossing infrastructure and procure inspection equipment, but also introduce digital solutions, including single-window systems and AI-based risk management systems. It will also support the development of joint border crossings and improve coordination among government agencies.

Azerbaijan has been a member of the ADB since 1999. During this period, the bank has invested around $5.6 billion in the country, including $4.4 billion in the public sector and $1.2 billion in the private sector. The main areas of financing have been energy, with $1.7 billion, and transport, with $1.5 billion.

Under its new partnership strategy, the ADB plans to provide up to $2.5 billion in financing to Azerbaijan.

The Asian Development Bank was established in 1966 and is headquartered in Manila. The ADB has 69 member countries, including 50 countries from the Asia-Pacific region.