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INFORMATION AND COMMUNICATIONS TECHNOLOGY AND DISASTER RISK REDUCTION DIVISION Infrastructure Corridor Development Series Part I: In-Depth Analysis of Three Promising Infrastructure Corridors Vadim Kaptur Aida Karazhanova ASIA-PACIFIC INFORMATION SUPERHIGHWAY WORKING PAPER SERIES JUNE 2021
Disclaimer: The views expressed through the Information and Communications Technology
and Disaster Risk Reduction Working Paper Series should not be reported as representing the
views of the United Nations, but as views of the author(s). Working Papers describe research
in progress by the author(s) and are published to elicit comments for further debate. They are
issued without formal editing. The shaded areas of the map indicate ESCAP members and
associate members. The designations employed and the presentation of material on this map
do not imply the expression of any opinion whatsoever on the part of the Secretariat of the
United Nations concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries. The United Nations
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necessarily be considered as reflecting the views or carrying the endorsement of the United
Nations. Any errors are the responsibility of the authors. Mention of firm names and commercial
products does not imply the endorsement of the United Nations.
The Asia-Pacific Information Superhighway (AP-IS) Working Papers provide policy-relevant
analysis on regional trends and challenges in support of the development of the Asia-Pacific
Information Superhighway (AP-IS) and inclusive development. The findings should not be
reported as representing the views of the United Nations. The views expressed herein are those
of the authors. This working paper has been issued without formal editing, and the designations
employed and material presented do not imply the expression of any opinion whatsoever on
the part of the Secretariat of the United Nations concerning the legal status of any country,
territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or
boundaries.
Correspondence concerning this working paper should be addressed to the email:
escap-ids@un.org.
Contact:
Information and Communications Technology and Development Section
Information and Communications Technology and Disaster Risk Reduction Division
United Nations Economic and Social Commission for Asia and the Pacific
United Nations Building
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Bangkok 10200, Thailand
Email: escap-ids@un.org
Page 2 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsThe Economic and Social Commission for Asia and the Pacific (ESCAP) is the most
inclusive intergovernmental platform in the Asia-Pacific region. The Commission promotes
cooperation among its 53 member States and 9 associate members in pursuit of solutions
to sustainable development challenges. ESCAP is one of the five regional commissions of the
United Nations.
The ESCAP secretariat supports inclusive, resilient and sustainable development in the region by
generating action-oriented knowledge, and by providing technical assistance and capacity-
building services in support of national development objectives, regional agreements and
the implementation of the 2030 Agenda for Sustainable Development.
The shaded areas of the map indicate ESCAP members and associate members.1
1The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever
on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries.
Page 3 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsPlease cite this paper as: Vadim About the author: Dr. Vadim Kaptur,
Kaptur, Aida Karazhanova (2021). ESCAP Consultant and Vice Rector of the
Infrastructure Corridor Series Part 1: In- A.S. Popov Odessa National Academy of
depth Analysis of Three Promising
Telecommunications (ONAT), Ukraine and
Infrastructure Corridors. United Nations
ESCAP, IDD, July 2021. Bangkok. Ms. Aida Karazhanova, Economic Affairs
Officer of IDD, ESCAP
Available at: http://www.unescap.org/kp
June 2021
Tracking number ESCAP / 5-WP / 13
Acknowledgements
Under the guidance of Tiziana Bonapace, The ESCAP Secretariat expresses gratitude
Director, Information and Communications to the following scientific and technical
Technology and Disaster Risk Reduction consultants from A.S. Popov ONAT, Ukraine:
Division (IDD) of the United Nations Olena Kniazieva, Volodymir Baliar, Iryna
Economic and Social Commission for Asia Tymchenko, Elena Mazurkiewicz, Lubov
and the Pacific (ESCAP), the English and Terletska, Tamara Kancur and Bohdana
Russian versions of this Infrastructure Yamniuk; to Bekhzod Rakhmatov of the
Corridor Development Series were prepared Transport Division of ESCAP and to Anna
by Vadym Kaptur, ESCAP Consultant and Lobanova of Energy Division of ESCAP, who
Vice Rector of the A.S. Popov Odessa also provided substantive inputs to the
National Academy of Telecommunications documents in both languages.
(ONAT), Ukraine Aida Karazhanova,
Economic Affairs Officer of IDD, ESCAP. Representatives of ministries, government
agencies, public and private organizations,
Substantive comments were provided by operators, and nominated entities working in
Tae Hyung Kim, Chief, Information and the sectors of information and
Communications Technology and communications technology and
Development Section (IDS) of IDD and Elena telecommunications infrastructure, road and
Dyakonova of IDS, IDD. Christine Apikul rail transport, electricity, and oil and gas
reviewed and edited the English version of pipelines from Kazakhstan, Kyrgyzstan and
the series. Sakollerd Limkriangkrai of IDS, Mongolia reviewed this toolkit during a series
IDD provided administrative support and of training workshops organized in May 2021
other necessary assistance to support the and were the first group to be trained on two
development of the series. web-based toolkits – the Infrastructure
Corridor Simulator and the Partnership
Portal on Co-deployment.
Page 4 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsTable of Contents
Acknowledgements .....................................................................................................................4
List of Figures .............................................................................................................................6
List of Tables ..............................................................................................................................6
Abstract .....................................................................................................................................7
1. Introduction ..................................................................................................................... 11
2. Almaty (Kazakhstan) – Cholpon-Ata (Kyrgyzstan) Corridor ....................................... 15
2.1 Transport History ................................................................................................................ 15
2.2 Geographic and Sociodemographic Characteristics of the Region ...................................... 17
................................................................................................................................................. 18
2.3 Economic Characteristics of the Region .............................................................................. 18
2.4 Characteristics of Existing Infrastructure in the Region ....................................................... 19
2.5 Challenges and Opportunities in the Construction of the Almaty–Cholpon-Ata Corridor ...... 21
3. Urzhar (Kazakhstan) – Chuguchak (China) Corridor .................................................. 24
3.1. Transport History ............................................................................................................... 24
3.2 Geographic and Sociodemographic Characteristics of the Region ...................................... 26
3.3 Economic Characteristics of the Region .............................................................................. 27
3.4 Characteristics of Existing Infrastructure in the Region ....................................................... 27
3.5 Challenges and Opportunities in the Construction of the Urzhar–Chuguchak Corridor ........ 29
4. Semey (Kazakhstan) – Rubtsovsk (Russian Federation) Corridor............................ 32
4.1 Transport History ................................................................................................................ 32
4.2 Geographic and Sociodemographic Characteristics of the Region ...................................... 34
4.3 Economic Characteristics of the Region.............................................................................. 35
4.4 Characteristics of Existing Infrastructure in the Region ....................................................... 36
4.5 Challenges and Opportunities in the Construction of the Semey–Rubtsovsk Corridor ......... 38
5. Cross-Sectoral Analysis of the Three Promising Infrastructure Corridors ............... 40
6. Analysis of Potential Partners for Infrastructure Corridor Development .................. 45
6.1 The Theoretical Basis for Forming Partnerships ................................................................. 45
6.2 The Best Options for Forming Partnerships ........................................................................ 48
Page 5 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsList of Figures
Figure 1: Area suitable for deploying the Almaty–Cholpon-Ata corridor .................................... 16
Figure 2: Area suitable for deploying the Urzhar–Chuguchak corridor ...................................... 24
Figure 3: Area suitable for deploying the Semey–Rubtsovsk corridor ....................................... 33
Figure 4: Classification of the main forms of partnership ........................................................... 45
Figure 5: Forms of partnership based on level of cooperation ................................................... 46
Figure 6: Pyramid of stakeholder influences on the development of infrastructure corridors ..... 47
Figure 7: Main forms of PPP interaction .................................................................................... 52
List of Tables
Table 1: Core indicators of tourism development in Kyrgyzstan ................................................ 17
Table 2: Opportunities and challenges in the construction of the Almaty–Cholpon-Ata corridor 21
Table 3: Opportunities and challenges in the construction of the Urzhar–Chuguchak corridor .. 29
Table 4: Opportunities and challenges in the construction of the Semey–Rubtsovsk corridor ... 38
Table 5: Analysis summary of the three promising infrastructure corridors ................................ 42
Table 6: Paired comparison matrix for the Almaty–Cholpon-Ata corridor .................................. 49
Table 7: Paired comparison matrix for the Semey–Rubtsovsk corridor ..................................... 50
Table 8: Paired comparison matrix for the Urzhar–Chuguchak corridor .................................... 51
Table 9: Motivational factors for PPPs in infrastructure corridor development ........................... 53
Table 10: Motivational factors for direct interstate agreements in infrastructure corridor
development ............................................................................................................................. 54
Table 11: Motivational factors for clustering in infrastructure corridor development ................... 56
Table 12: Motivational factors for alliances and financial and industrial groups in infrastructure
corridor development ................................................................................................................ 58
Table 13: Motivational factors for employment contracts in infrastructure corridor development60
Table 14: SWOT analysis for infrastructure corridor development............................................. 61
Page 6 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsAbstract
The Regional Economic Cooperation and In response to the needs of member States
Integration (RECI) initiative of the United and considering the complex challenges of
Nations Economic and Social Commission limited national and regional infrastructures,
for Asia and the Pacific (ESCAP) aims to the key objectives of this research are to: (1)
promote integrated markets for goods, provide in-depth cross-sectoral analysis of
services, information and capital; three potential interstate infrastructure
infrastructure connectivity; financial corridors in the target countries of the RECI
cooperation; and economic and technical project (Kazakhstan and Kyrgyzstan); (2)
cooperation through a multidimensional and provide knowledge and capacity building in
multidisciplinary approach. Promoting determining the most promising scenario for
seamless connectivity in transport, energy infrastructure corridor development; and (3)
and information and communications promote enabling environments for
technology (ICT) is a central pillar of the infrastructure corridor development in the
RECI initiative. modality of co-deployment of ICT, transport
and energy infrastructures.
As part of the RECI initiative, ESCAP is
implementing a United Nations Development An integrated infrastructure corridor
Account (DA) Project on “Addressing the approach is used as an attractive smart
Transboundary Dimensions of the 2030 solution to improve regional and
Agenda for Sustainable Development transboundary connectivity by linking
through RECI in Asia and the Pacific” from geographical territories with ICT, transport
2018 to 2021. This project aims to develop and energy components. An integrated
knowledge products such as analysis infrastructure corridor means a high-tech
reports, and build capacity of member States transportation system integrated with a wide
in promoting seamless regional connectivity range of ICTs and energy to facilitate the flow
with a focus on the co-deployment of ICT, of goods, services, knowledge and capital in
transport and energy infrastructures. a cost- and time-effective way towards
achieving the 2030 Agenda for Sustainable
Following the recommendations to national Development.
capacity building workshops for
policymakers of Kazakhstan, Kyrgyzstan, This research paper is a part of the
Mongolia, and subregional workshop for Infrastructure Corridor Development Series
countries in East and North-East Asia in that supports decision makers and
October-November 2019, this analysis report infrastructure owners in their decisions on
is aimed to enhance understanding for the development of new infrastructure
planning interstate infrastructure corridors. corridors. The Infrastructure Corridor
The scope of this report covers in-depth Development Series consists of three main
analysis of the co-deployment of ICT parts:
infrastructure along transport and energy
infrastructure corridors and support Part 1: An in-depth analysis of three
identification of key needs and the selection promising infrastructure corridors.
of the priority projects. Almaty (Kazakhstan) – Cholpon-Ata
(Kyrgyzstan)
Page 7 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsSemey (Kazakhstan) – Rubtsovsk (Russian • The main beneficiaries of infrastructure
Federation) corridor development are entities that
Urzhar (Kazakhstan) – Chuguchak (China) rely on optimal routes for freight and
passenger traffic. Businesses and
Part 2: A toolkit for determining the most residents located in corridor territories
promising scenario for infrastructure corridor also benefit economically from the
development. development of infrastructure corridors
(both for business development and for
Part 3: Calculation results for determining the personal mobility).
most promising scenario for infrastructure
corridor development. • Factors affecting infrastructure corridor
development include environmental
This Part One paper presents an overview of
factors (e.g., presence of protected areas
the history of transport routes which can be
the promising infrastructure corridors in the for wildlife and high-risk zones), social
region; the geographic, sociodemographic factors (e.g., labour migration and the
and economic characteristics of the region; exploitation of migrant workers), and
and the characteristics of existing political factors (e.g., domestic and
infrastructures in the region. The challenges foreign policies of the participating
and opportunities for each corridor countries).
development are analysed, and the best
options for forming partnerships are • The main risks common to all corridors
determined by using the paired comparison are the difficulties in forecasting traffic
method,. volumes, the COVID-19 pandemic and
related restrictions for border crossings
Key findings and outcomes from part one
and labour migration, and the economic
include the following:
crisis.
• The Semey–Rubtsovsk and Urzhar–
Chuguchak corridors have the greatest • The potential capacity to finance the
macroeconomic significance. The development of infrastructure corridors is
Almaty–Cholpon-Ata corridor has mainly largely unequal among the participating
regional significance, and is strategically countries. China and the Russian
important for subregional development Federation possess much wider
and cooperation with other North and opportunities and capacity to finance the
Central Asian countries, especially for development of infrastructure corridors,
economic development and tourism. compared with Kazakhstan and
Kyrgyzstan.
Page 8 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsKeywords
Broadband access: Wide bandwidth data transmission that transports multiple signals and traffic
types within access network. The medium can be coaxial cable, optical fibre, radio or twisted pair
(source: https://www.wikipedia.org).
Broadband Internet access: Internet access with a bit rate exceeding the maximum possible bit rate
for modem dial-up connection via a public telephone network. It is carried out using wired, fibre-optic
and wireless communications lines of various types (source: https://www.wikipedia.org).
Co-deployment (infrastructure): The simultaneous deployment of cable ducts and/or fibre-optic
cables during the construction of infrastructure such as new roads, highways, railways, power
transmission lines and oil/gas pipelines (source: https://www.unescap.org).
Electricity infrastructure / electrical grid: An integrated network for delivering electricity from
supplier to consumers (source: https://www.wikipedia.org).
Energy infrastructure: An organizational structure that allows large-scale transmission of energy
from supplier to consumer, as well as directs and controls energy flow. It includes, but is not limited
to, the oil and gas transportation infrastructure and the electricity transportation infrastructure (source:
https://www.designingbuildings.co.uk).
Fibre-optic communications line: A fibre-optic system consisting of passive and active elements,
designed to transmit information in the optical range (source: https://www.wikipedia.org).
ICT infrastructure: The information and communications technology (ICT) infrastructure and
systems, including software, hardware, networks and websites (source: https://www.lawinsider.com).
Infrastructure corridor: A high-tech transportation system integrated with a wide range of ICTs to
facilitate the flow of goods, services, knowledge and capital in a cost- and time-effective way towards
achieving the 2030 Agenda for Sustainable Development (source: https://www.unescap.org).
Infrastructure sharing: The sharing of real estate and fixed assets, including land, conduits, ducts,
manholes and handholes, base station sites, AC networks, trunk lines, radio links, and other resources
to avoid infrastructure duplication and reduce costs (source: author).
Internet access: The ability of individuals and organizations to connect to the Internet using computer
terminals, computers and other devices; and to access services such as email and the World Wide
Web (source: https://www.wikipedia.org).
Road transport infrastructure: The road network and associated physical infrastructure, such as
road signs, roadway lighting and petrol stations (source: https://iea-etsap.org).
Transport corridor: A linear area that is defined by one or more modes of transport, such as roads,
railways or public transport that share a common route (source: https://www.wikipedia.org).
Page 9 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsAbbreviations and Acronyms
AP-IS Asia-Pacific Information Superhighway
CICTSTI Committee on Information and Communications Technology, Science,
Technology and Innovation
CNY Chinese Yuan
ESCAP Economic and Social Commission for Asia and the Pacific
EUR Euro
GDP Gross Domestic Product
GRP Gross Regional Product
GW Gigawatt
ICT Information and Communications Technology
IDD Information and Communications Technology and Disaster Risk Reduction
Division
KGS Kyrgyzstani Som
KPI Key Performance Indicator
kV Kilovolt
kW Kilowatt
kWh Kilowatt-hour
KZT Kazakhstani Tenge
Mbps Megabit per Second
OBOR One Belt One Road
ONAT Odessa National Academy of Telecommunications
PPP Public-Private Partnership
RECI Regional Economic Cooperation and Integration
SWOT Strengths, Weaknesses, Opportunities and Threats
USD United States Dollar
Page 10 of 61
In-Depth Analysis of Three Promising Infrastructure Corridors1. Introduction
Infrastructure corridors have contributed to • Development of cross-border
enhanced economic and social ties across cooperation, exploration of new
countries and states, and promoted inter- territories and new trade markets, and
civilizational expansion and intercultural strengthening of cultural ties.
interactions. The utilization of compatible
transport technologies for integrating The process of infrastructure corridor
national and global transport systems has development requires cooperation among
enhanced international cooperation, which in participating countries in the financing,
turn has led to the further development of development of technologies, planning of
infrastructure corridors along the most logistics routes, and harmonization of
significant freight and passenger routes. customs rules and other regulations and
policies. Asian countries, including China,
An infrastructure corridor is defined as a are implementing the largest transport
high-tech transportation system integrated corridor called "One Belt One Road"
with a wide range of information and (OBOR), bringing together 125 countries and
communications technologies (ICTs) to 29 international organizations that have
facilitate the flow of goods, services, signed 173 cooperation agreements.4
knowledge and capital in a cost- and time-
effective way towards achieving the 2030 In the first four months of 2020 alone, the
Agenda for Sustainable Development.2 The foreign trade turnover between China and
tasks of forming and maintaining the countries along the OBOR reached
infrastructure corridors include the use of CNY2.76 trillion, which corresponds to an
ICTs for:3 increase of 0.9 per cent in annual terms.
Moreover, in the first four months of 2020,
• Coordination in forming and maintaining Chinese businesses invested USD4.2 billion
the transport and logistics infrastructure in 52 countries that are participating in
of the participating countries to ensure OBOR, which is 11.7 per cent more
unobstructed movement of passengers compared to the same period of 2019.5 The
and goods across national borders; OBOR is expected to form a global
• Effective interaction between various infrastructure of trade routes uniting two
types of transport; other transport corridors, namely the "Silk
• Optimization of the transportation Road Economic Belt" and "21st Century
processes and improvement of the Maritime Silk Road".
quality of logistics services;
• Reduction in the share of transport and The Silk Road Economic Belt comprises the
logistics expenses in final product cost following routes:
and, as a result, in price;
• Increasing population mobility including • From China to Europe (Baltic Sea)
tourist flows, medical tourism, and through Central Asia and the Russian
students and teaching staff mobility; and Federation;
2 Сущность и иерархия понятия международный 4 Один пояс и один путь. Available at
транспортный коридор. Available at https://ru.wikipedia.org/.
5 Страны партнёры вместе строят “Шёлковый путь
https://cyberleninka.ru/article/n/suschnost-i-ierarhiya-
ponyatiya-mezhdunarodnyy-transportnyy-koridor/viewer. здоровья”. Available at https://rg.ru/2020/05/25/odin-
3 Logistics and cargo transportation systems: Handbook for poias-odin-put-stimuliruet-razvitie-mirovoj-
students of High Schools / V. I. Apatsev, S. B. Levin, V. ekonomiki.html.
M. Nikolashin and others; Ed. V.M. Nikolashin. M .:
Publishing Center "Academy", 2003. S. 55.
Page 11 of 61
In-Depth Analysis of Three Promising Infrastructure Corridors• From China to the Persian Gulf and the • The Caspian Sea–Black Sea Corridor,
Mediterranean Sea through Central and which is expected to ensure cross-border
Western Asia; and traffic over sea, rivers, roads and rails
• From China to South-East Asia, South between Central and Northern Europe,
Asia and the Indian Ocean. the South Caucasus and Central Asia.
The 21st Century Maritime Silk Road The key challenges in developing
comprises the following routes: infrastructure corridors include the following:
• From the seaports of China through the • Harmonizing the regulatory and legal
South China Sea to the Indian Ocean framework of participating countries;
and to Europe; and • Complex procedures for joining the
• From Chinese ports across the South infrastructure corridor, preventing its
China Sea to the southern Pacific Ocean. growth.
• Different levels of technological
Another transport corridor is the Baku– readiness of participating countries (e.g.,
Tbilisi–Kars railway and the Baku–Batumi in some post-Soviet countries,
highway in the South Caucasus that infrastructure assets have depreciated by
continues in Central Asia as the Aktau– 80 per cent);
Dostyk railway and the Aktau–Khorgos • Different principles, approaches and
highway within the framework of the Western methods in the management of state
Europe–Western China road connection in infrastructural projects in participating
Kazakhstan. There is also the road countries;
infrastructure connecting the port of • The high risks involved, including: the
Turkmenbashi in Turkmenistan with risk of inadequate throughput and its
transport lines in Uzbekistan and synchronization, especially when
neighbouring countries. crossing borders; the risk of insufficient
income for participating countries or
Some potential infrastructure corridors excessive expenses due to poor planning
include the following: of incomes and expenses; the risk of
infrastructure corridor monopolization;
• International corridors for economic geopolitical risks (e.g., sanctions and
cooperation, e.g., China–Mongolia– ethnic conflicts); social risks (e.g., lack of
Russian Federation, China–Central qualified labour resources); and the risk
Asia–Western Asia, China–Indochina, of the infrastructure corridor losing its
China–Pakistan and Bangladesh–India– strategic advantage for a participating
Myanmar–China; country or for the entire chain of
• An alternative route within the East–West participants;
Railway Corridor that allows the transport • Difficulties in financing in terms of
of goods from the southern regions of allocating budget or attracting investors,
China to Europe through Kyrgyzstan, especially when the infrastructure
Uzbekistan, Turkmenistan and further corridor runs through federal lands,
through Azerbaijan. An important provinces, territories or municipalities;
component of this corridor is the Trans- • Difficulties in attracting the interests of
Caspian International Transport Route; more influential participating countries;
• The Lazurit Project6 (Afghanistan– • The need for all participating countries to
Turkmenistan–Azerbaijan–Georgia– commit to personal and anti-terrorist
Turkey) aimed at land and marine safety and security, environmental
transport development; and friendliness, energy efficiency, and
6Transport Corridors of Central Asia, “Turkmenistan 2019. Available at http://transport-
implements projects to develop transport logistics”, 9 April koridori.blogspot.com/2019/04/blog-post_29.html.
Page 12 of 61
In-Depth Analysis of Three Promising Infrastructure Corridorsmeasures to prevent smuggling and the multimodal infrastructure corridor in
trafficking; and the development processes (in
• Uncertainty of development trends in proportion to their capabilities).
global and national markets, including
tourist flows due to the COVID-19 Another promising direction for infrastructure
pandemic. corridor development is the co-deployment
and operation of the ICT, road transport and
The most promising areas for infrastructure energy7 infrastructures. The economic
corridor development include multimodal benefits and efficient use of limited resources
systems, which allow the effective integration are the main factors driving the co-
of organizational, technical, economic and deployment and operation of infrastructures.
other aspects of rail, sea, river and road However, key obstacles to the co-
transport to ensure seamless transport deployment and operation of infrastructures
management. Multimodal transportation is a is the lack of coordination between
priority for the world transport policy of our regulators of different sectors for large
time, since it enables modal interoperability infrastructure projects that are underway,
and integration at the regional, national and and the lack of intersectoral national and
international levels, and thus, enhances international government policies related to
overall systems efficiency. access and sharing of infrastructures.
The basic conceptual foundations for To address the obstacles to co-deployment,
multimodal infrastructure corridor the United Nations Economic and Social
development include the following: Commission for Asia and the Pacific
(ESCAP) secretariat is taking many
• Application of ICTs to ensure optimal significant steps to develop human capital,
interaction between system elements including the creation of useful knowledge
and convenient consumer interfaces; products and tools, such as the in-depth
• Environmental awareness and national studies on the co-deployment of ICT
responsibility of multimodal infrastructure along transport and energy
transportation participants; infrastructures in Kazakhstan and
• Adoption of an integrated approach, Kyrgyzstan. Based on these studies, a
which implies international coordination capacity building toolkit was developed that
and throughput growth over the internal provides methodologies, training packets
(domestic) and external (transboundary) and tools for planning and implementing the
lines of multimodal transportation; co-deployment.8 These knowledge products
• Stimulation of a high level of employment and tools aim to create an enabling
(social aspect) while ensuring environment for the co-deployment of ICT,
implementation of the latest transport and energy infrastructures.
technological solutions (technical
aspect); In Kazakhstan, one of the strategic directions
• Balanced development of all the for economic development is to “identify
elements of the multimodal infrastructure needs and projects for the co-deployment of
corridor to ensure the most effective ICT infrastructure along with transport and
utilization of their potential, along with energy infrastructures”. In an ESCAP
optimal business models for each meeting held with experts in Almaty,
specific element; and Kazakhstan on 24-25 October 2019,
• Systematic planning, which guarantees participants proposed to analyse the
equal involvement of all the elements of following three interstate corridors:
7 8All the resources can be found at:
More information on the strategic plans for energy sector
development is available at https://asiapacificenergy.org/ https://www.unescap.org/kp?f%5B0%5D=kp_programme_
and https://www.unescap.org/resources/policy- of_work_facet%3A284.
perspectives-2019-sustainable-energy-asia-and-pacific.
Page 13 of 61
In-Depth Analysis of Three Promising Infrastructure Corridors1. Almaty (Kazakhstan) – Cholpon-Ata economic and social benefits resulting from
(Kyrgyzstan); the development of these corridors.
2. Semey (Kazakhstan) – Rubtsovsk
(Russian Federation); and Subsequently, members of the United
3. Urzhar (Kazakhstan) – Chuguchak Nations Special Programme for the
(China). Economies of Central Asia Working Group
on Innovation and Technologies for
This proposal was supported by participants Sustainable Development, which met on 30
from multiple ESCAP events. In particular, at July 2020, requested the ESCAP secretariat
the online meeting on "E-resilience for to develop a unified information platform with
Pandemic Recovery: Intercountry automation and modelling modules to
Consultations in Preparation for the determine the compatibility and cost-
Committee on ICT, Science, Technology and effectiveness of infrastructure projects that
Innovation (CICTSTI)" that was held on 3 are suitable for ICT deployment in
July 2020, participants recommended infrastructure corridors.
research on the costs and benefits of
developing and digitalizing the above three These ideas and recommendations for
corridors. It was further recommended that research were presented at the fourth
the research include: (1) a simulation model session of the Asia-Pacific Information
designed to determine the development Superhighway Steering Committee on 11
scenario for digitalized transport corridors; August 2020, as well as at the third session
and (2) more accurate quantification of the of the CICTSTI on 19-20 August 2020.
Page 14 of 61
In-Depth Analysis of Three Promising Infrastructure Corridors2. Almaty (Kazakhstan) – Cholpon-Ata
(Kyrgyzstan) Corridor
European Bank for Reconstruction and
2.1 Transport History Development. Possible routes and
mechanisms to finance them were
The journey by road from Kazakhstan to discussed. However, negotiations and
Issyk-Kul, a major tourist destination in subsequent design activities were
Kyrgyzstan, takes seven to eight hours. The suspended due to the global economic crisis
optimal route is to take the Almaty–Bishkek in 2008.
highway (about four to five hours), and then
from the capital of Kyrgyzstan to the Another significant problem is that along the
Cholpon-Ata resort (about three to four proposed route on the border of Kazakhstan
hours). The length of the route is 454.5km and Kyrgyzstan, there was a storage of liquid
with an estimated travel time of 6 hours 35 radioactive waste from the Ak-Tuz uranium
minutes by the A-2 and A365 highways, or mine during the Soviet period. The
470km with an estimated travel time of 7 earthquake in December 1964 destroyed the
hours and 3 minutes by the A363 highway.9 dam around the storage, which resulted in
However, when taking into account the need about 680,000m3 of hazardous waste
for stops, the journey takes about eight dumped into the Kichi-Kemin River over a
hours. Considering the rather high average distance of 40km or more. The waste
temperature in summer of 32°C, the long covered the lands, gardens and orchards in
drive hampers the growth of tourism in this the form of mudflow deposits that were 5-
region. 60cm thick. The danger has not yet been
completely eliminated. The waste still
The need to build alternative roads for a partially poses a threat to the health of the
shorter route has been raised since 2007. At people living in the lower reaches of the river
that time, negotiations took place between in the Kyrgyz villages of Ilyichevskoye,
representatives of the ministries of transport Dzhany-Dzhol, Kichi-Kemin, Boroldoy,
and communications of Kazakhstan and Mikhailovka and Enbek (Kazakhstan).10
Kyrgyzstan with the involvement of the
9Routes between Almaty, Kazakhstan and Cholpon-Ata, 10Новости inform-бюро. Available at
Kyrgyzstan. Available at https://www.google.com/maps/. https://informburo.kz/stati/-masimov-proshyol-po-
radioaktivnoy-doroge-do-issyk-kulya-8832.html.
Page 15 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsFigure 1: Ar e a s u i t a b le fo r d e p lo y in g th e Alm a ty – C h o lp o n - A ta
c o r r id o r
The radioactive waste situation was made in 2008, the construction of the
assessed in 2009 as part of a project, and highway on the territory of Kazakhstan
four possible cross-border transport routes was 70 per cent complete. Later, Erkin
were proposed. These are in chronological Motors LLP turned out to be a rogue
order: company and by 2011 it was declared
inactive. It became public that the money
1. Almaty–Uzanagash–Bystrovka– allocated for the construction of the road
Balykchi–Cholpon-Ata (280km) – It was was spent on other projects, including the
planned that most of this new road would construction of the Western Europe–
be built by Kazakhstan. Kyrgyzstan had Western China highway and the
to construct 1.5km of highway from the development of international transit
border to Kemin and a bridge over the corridors. The official announcement on
Chu River. According to preliminary the incompletion of the project explained
calculations, this project required about that the construction of roads in the
USD5 million. permafrost zone could lead to harmful
consequences for the environment, and
2. Almaty–Cholpon-Ata through the Ile- it was also practically impossible given
Alatau National Park. This project was the technologies available in the region.
abandoned due to the possible The project was paused due to the global
environmental impact on the National economic crisis that hit the economy of
Park. Kazakhstan.
3. Almaty–Kaskelen–Kemin–Cholpon-Ata 4. Almaty–Kegen–Tyup – This project is the
(117km) – In 2006, representatives of last in the list and so far it remains the
Erkin TransService LLP (affiliated with most attractive because the route from
Erkin Motors LLP) were ready to invest Almaty to Kegen already exists, as well
USD30 million in the project.11 A permit as the road from Kegen to the Kazakh-
was obtained to construct the Chyrpykty– Kyrgyz border and further to the village of
Chon-Kemin–Kaskelen road. According
to the statements of the involved parties
11Строительство трассы Алматы – Иссык-Куль https://www.zakon.kz/4564668-stroitelstvo-trassy-almaty-
отложили до 2015 года. Available at issyk-kul.html.
Page 16 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsSary-Tologoy in the Tyup district.12 Only
a 76km segment of the Kegen–Tyup road Issyk-Kul has many sanatorium and resort
remains unfinished. facilities and attracts restaurant and hotel
businesses. However, statistical data of
tourism activities in Kyrgyzstan indicates that
2.2 Geographic and the tourism potential is not fully utilized
Sociodemographic Characteristics of (Table 1). For example, of the 1.4 million
tourists that visit Issyk-Kul, only 0.9 million
the Region
stay near Issyk-Kul.
The main challenge of the Almaty–Cholpon- In Kyrgyzstan, the number of tourism-
Ata corridor construction is the high-altitude associated businesses has been increasing
terrain (through mountain saddle and by 2.7 per cent in recent years, while the
permafrost areas), which requires special share of income from tourism in gross
equipment and technologies, and domestic product (GDP) has been increasing
significantly increases construction costs. by 4 per cent. Investments in tourism
Moreover, segments of the route may pass increased by 5 per cent, while tourism
through protected areas for wildlife, which revenues increased by 1.8 per cent. This
requires additional expertise. means investments have not brought
expected revenues. As a result, people
The starting point of the corridor is Almaty, a spend twice more money on trips abroad
large city in Kazakhstan with a population of compared to domestic tours.
1,916,822 people in 2020. It is a large
transport hub with buses, trolleybuses, fixed- In Kazakhstan, there are about 8.5 million
route taxis, railways (two railway stations: tourists annually, and the tourism business
Almaty-1 and Almaty-2), highways, three forms 9.6 per cent of GDP. The main tourist
subway lines and an airport. There are large centres are its capital city, Nur-Sultan (where
enterprises in the city, including carpet tourism is combined with business trips) and
factories, cotton mills, sewing and Almaty (with visits to the Ile-Alatau National
haberdashery factories, and heavy machine Park and the Issyk-Kul Lake for recreation).
building plants.
Generally, tourist services for both domestic
The end point of the corridor is Cholpon-Ata, and foreign tourists is much more developed
a large tourist centre of Kyrgyzstan. The in Kazakhstan than Kyrgyzstan. The strong
transport infrastructure there is represented point of tourism in Kazakhstan is its domestic
by local wheel transport, including horse- market, while in Kyrgyzstan tourism is mostly
drawn ones. There are 12,500 people living inbound (from other countries). Despite the
in the town. However, in the summer months, existence of various types of public and
the population of the city increases private transport services (railways, roads,
significantly due to the tourists heading to airports, buses and taxis) and sufficiently
Issyk-Kul from other regions of Kyrgyzstan high-quality roads of international
and from other countries (primarily from importance, the effective functioning of the
Kazakhstan and the Russian Federation). Almaty–Cholpon-Ata corridor could be
Due to the small local population, a lack of hindered by the topography of both
funding from the state budget and other countries, especially the presence of
factors, the infrastructure of the town is mountainous areas.
underdeveloped and requires significant
investments.
12 Через Кеген быстрее. Available at
https://rg.ru/2018/12/05/v-2019-m-nachnutsia-raboty-na-
trasse-mezhdu-kirgiziej-i-kazahstanom.html.
Page 17 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsTable 1: Co r e in d ic a t o r s o f to u r is m d e v e lo p m e n t in
Ky r g y z s ta n
Indicators 2018 2019
The number of registered economic entities related to tourism (thousand 111.3 114.2
units)
Among them, entities providing recreation and recovery services 12.6 13.4
(thousand units)
Tourism gross value added (KGS million) 28,720.5 30,389.5
Tourism gross value added (% of GDP) 5.0 5.2
Manufacturing of industrial products that contribute to the development 883.1 823.2
of tourism business (KGS million)
Fixed investment in tourism (KGS million) 25,757.4 27,223.0
Income received from the transportation of tourists by all types of 10,485.8 10,683.2
transport (KGS million)
Tourism retail trade turnover (KGS million) 21,843.6 23,786.0
Turnover of restaurants, bars, canteens and other enterprises for 12,333.4 13,310.7
delivering ready meals (KGS million)
Market-related services to the public (KGS million)
Travel agency services 1,794.6 1,806.6
Sanatorium and spa services 703.9 730.4
Hotel services for tourist accommodation 3,277.4 3,361.0
Export of tourism services (income from admission of foreign citizens) 453.4 613.1
(USD million)
Import of tourism services (expenses of Kyrgyzstan citizens abroad) 275.5 379.8
(USD million)
Source: National Statistical Committee of the Kyrgyz Republic. Available at http://www.stat.kg/.
2.3 Economic Characteristics of the
Region
The economic characteristics of the region • LLP Zhaikmunay (Nostrum Oil & Gas LP)
around the Almaty–Cholpon-Ata corridor are – An exploration and production oil
rather uneven. In the areas that belong to company;
Kazakhstan, there are 396 enterprises and • Karachaganak Petroleum Operating B.V.
industries that represent more than 25 per (Kazakhstan branch) – A consortium of
cent of all enterprises in the country. These companies that is jointly implementing
enterprises employ 22,500 people, and the the Karachaganak Oil Project;
average monthly nominal salary of residents • LUCOIL overseas Karachaganak B.V. –
in the region is KZT98,360 (above the The Russian OJSC LUCOIL oil and gas
national average). The profitability of company branch;
industrial production in the region is 145 per • JSC Kondensat – An enterprise for the
cent (the highest in the country).13 processing of unstable gas condensate,
and the production and sale of petroleum
This region in Kazakhstan produces oil and products;
natural gas, and specializes in the extractive • Chevron International Petroleum
industry. The largest enterprises in the region Company (Kazakhstan branch) – A
are:
Промышленная карта Казахстана: западные регионы.
13 https://vlast.kz/jekonomika/promyshlennaja_karta_kazahsta
Available at na_zapadnye_regiony-9846.html.
Page 18 of 61
In-Depth Analysis of Three Promising Infrastructure Corridorscompany that conducts exploration and 2.4 Characteristics of Existing
produces crude petroleum; and Infrastructure in the Region
• A large sausage factory.
The development of the transport, energy
Tourism in this region in Kazakhstan is
and ICT infrastructures in the region around
undeveloped. However, there are tourist
the Almaty–Cholpon-Ata corridor is unequal.
flows in the direction of Ile-Alatau National
Park and the Almaty mountain cluster.
2.4.1 Transport Infrastructure
In the areas that belong to Kyrgyzstan, the
On the Kazakhstan side, there are highways
level of development is lower compared to
between Astana and Shchuchinsk: Almaty–
Kazakhstan. The extractive industry is only 6
Nur-Sultan–Kostanay with access to
per cent of all industries, and the largest
Chelyabinsk; Almaty–Petropavlovsk with
gross income is brought by manufacturing
access to Omsk; Almaty–Semey–Pavlodar
industries that make up 40 per cent of all
with access to Omsk; Almaty–Shymkent with
industries. The production of food and
access to Tashkent; and Shymkent–Aktobe–
beverages is developing, while tourism
Uralsk with access to Samara.
generates negligible income despite the
presence of a significant number of tourist
There are two railway stations in the city of
sites around the Issyk-Kul Lake.
Almaty: Almaty-1 is a transit station on the
way from the Siberian regions of the Russian
The share of profitable enterprises in
Federation to Central Asia; and Almaty-2 is a
Kyrgyzstan is 37 per cent, while the share of
city station. There is a modern international
unprofitable enterprises is 23 per cent.14
airport and the Boraldai airport for local
Most of the losses are from enterprises in
flights on the administrative territory of
Jalal-Abad, Talas and Batken regions. The
Almaty.
Bishkek and Issyk-Kul regions bring the
greatest profits.
On the Kyrgyzstan side, there is a 570km
E010 highway going through the Tien Shan,
The standard of living between the areas in
Fergana and Chuy valleys.17 Cholpon-Ata is
Kazakhstan and Kyrgyzstan along the
adjacent to two actively developing villages
Almaty–Cholpon-Ata corridor differs
of Kara-Oy and Bosteri, and is connected
significantly. While the average wage in
with them by highways. At present, almost all
Almaty is KZT248,700 (USD600), and in the
major roads have been rehabilitated using
region, KZT150,500 (USD365),15 the
international banks loans. In high-altitude
average wage in Cholpon-Ata is KGS14,600
conditions, however, road maintenance and
(USD210), and in the country, KGS15,200
traffic safety during winter is a particular
(USD218).16
problem. Thus, in addition to road
rehabilitation work, the road maintenance
Due to significant differences in the level and
service of Kyrgyzstan that unites nine road
quality of life, the average educational level
departments is responsible for ensuring
at the final points of the route also differs,
traffic safety along the entire network of
which may result in labour migration between
roads.
the countries.
Although there are transport routes in both
Kazakhstan and Kyrgyzstan sides, road
14 16
Kaktus-Media. Available at National Statistical Committee of the Kyrgyz Republic,
https://kaktus.media/doc/399275_vse_chto_nyjno_znat_o_ “Wages”. Available at http://www.stat.kg/ru/statistics/trud-
promyshlennosti_ona_est_v_kyrgyzstane._glavnye_cifry_v i-zarabotnaya-plata/.
ideo.html. 17 Транспорт в Киргизии. Available at
15 Agency for Strategic Planning and Reforms of the https://ru.wikipedia.org/.
Republic of Kazakhstan, Bureau of National Statistics.
Available at https://stat.gov.kz/.
Page 19 of 61
In-Depth Analysis of Three Promising Infrastructure Corridorsconditions are generally poor in Kyrgyzstan. has carried out an inspection of power lines
In Kazakhstan, there are well-developed and transformer substations on site and
alternatives to road transportation, by air implemented several initiatives:18
(both local and international) and rail. A
common challenge for both sides is the Reconstruction of the 110kV Grigorievka
availability and safety of roads in the substation, supplying power to the Kyrchyn
mountainous regions. Thus, in the Gorge; Preparation of the 110kV reserve
development of the infrastructure corridor, it Ananyevo substation; and Day-and-night
would be necessary to ensure traffic safety duty at the 110kV Cholpon-Ata substation.
on international highways.
The energy infrastructure of Kyrgyzstan is in
2.4.2 Energy Infrastructure a state of modernization and reconstruction,
and does not guarantee a regular and
In Kazakhstan, the energy infrastructure is reliable supply of electricity to consumers at
provided by LLP AlmatyEnergoSbyt, which is a constant voltage level. In 2018, for
the legal successor of JSC Almaty Power example, the malfunction of one of the
Consolidated. According to the country’s consumer transformer substations resulted
legislation, LLP AlmatyEnergoSbyt has the in a major emergency power network
status of "last-resort" supplier in the territory shutdown in the Kyrchyn Gorge.
of the city of Almaty and the region of Almaty.
The main activity of LLP AlmatyEnergoSbyt 2.4.3 ICT infrastructure
is the purchase of electricity in the wholesale
and retail electricity markets for its In Kazakhstan, revenues from
subsequent sale in the retail electricity telecommunications services have been
market to consumers. The company increasing at an average rate of 4-5 per cent
provides services throughout the region. annually. Due to the growth of mobile
telephony, fixed telephone services are
In 2016, in the city of Almaty and the Almaty gradually losing revenues by 6 per cent
region, a large-scale programme was annually. In the region, there are 1.5 SIM
launched to develop automated systems for cards per inhabitant due to the waning trend
commercial accounting of electric energy. of using two SIM cards. This no longer
Since 2018, within the framework of the makes sense since customers are now
Digital Kazakhstan Programme and the offered integrated service packages that
World Bank’s Doing Business rating, a allow calls across the networks, and provide
system of electronic signing of power supply Internet access and other services. As a
contracts has been introduced through the result, mobile data transmission is showing
corporate website of LLP AlmatyEnergoSbyt. high growth. In Kazakhstan, more than half
Until a certain period, the price of electricity of the investments in telecommunications
for consumers was lower than the prime cost, development are in the city of Almaty (52 per
but recently, there has been both an increase cent). Investments in other regions are
in prices and a differentiation in consumption significantly lower (e.g., 22 per cent in Nur-
volumes by introducing a consumption rate Sultan and 4 per cent in South
per person, which are affecting energy Kazakhstan).19
access in Kazakhstan.
In Kyrgyzstan, the telecommunications
In Kyrgyzstan, power supply to the region is infrastructure of Cholpon-Ata is represented
mostly provided by OJSC Natsionalnaya by fixed-line communications, dominated by
Energeticheskaya Kholdingovaya the state company, OJSC Kyrgyztelecom.
Kompaniya. In recent years, the company An alternative operator is CJSC Saima
18Национальный энергохолдинг. Available at 19 Телекоммуникационная отрасль Республики
http://www.energo.gov.kg/content/page/74-investicionnye- Казахстан. Available at
proekty. https://kase.kz/files/presentations/ru/KASE_telecommunica
tions.pdf.
Page 20 of 61
In-Depth Analysis of Three Promising Infrastructure CorridorsTelecom, which focuses on the cities of in terms of Internet traffic. Overall, the ICT
Bishkek and Chui. The mobile penetration infrastructure in Kyrgyzstan requires
rate in the region is 97.5 per cent. Some non- significant development, especially in
mobile companies provide mobile Internet increasing access to the Internet and mobile
services based on Long-Term Evolution or services in regions not covered by fixed
LTE (Saima Telecom) and Worldwide telephony.
Interoperability for Microwave Access or
WiMAX (MaxLink) technologies. Their
coverage is limited to large cities such as 2.5 Challenges and Opportunities in
Bishkek, Osh, Jalalabad, Karakol and the Construction of the Almaty–
Cholpon-Ata. The target users are those who Cholpon-Ata Corridor
do not have access to fixed-line
infrastructure.
Based on the characteristics described
above, the construction of the Almaty–
Just over half of the region's population in
Cholpon-Ata corridor provides an opportunity
Kyrgyzstan regularly use the Internet. A large
to modernize the energy and ICT
share of traffic until 2015 passed through
infrastructures in Kyrgyzstan, as well as
Kazakhstan, making Kyrgyzstan almost
coordinate and harmonize the energy pricing
completely dependent on Kazakhstan for
policy in the region (in case of a significant
Internet access. However, the laying of fibre-
difference in tariff rates). A summary of the
optic cable in the southern regions of the
opportunities and issues to consider is given
country allowed Kyrgyzstan to become a
in Table 2.
transit country between China and Tajikistan
Table 2: Op p o r tu n iti e s a n d c h a lle n g e s in t h e c o n s tr u c tio n o f t h e
Alm a ty – C h o lp o n - A ta c o r r id o r
Parameters Kazakhstan Kyrgyzstan Opportunities Challenges
(KZ) (KG)
Form of Presidential Mixed Cross-country Political
government republic government cooperation instability and
development change of
geopolitical
landmarks
GDP per capita 9,139 5,471 Mutually beneficial Inconsistency of
(USD in 2019) development and investment
GDP growth due to opportunities,
the functioning of high maintenance
corridor cost for KG and
maintenance of
the required
quality level of
corridor
Average wage 483 218 Growth of wages in Limited demand
(USD) both regions from KG
Economic Domestic demand Internal and Formation of a Resource
orientation and international external demand, mutually beneficial depletion in KG
cooperation and raw material corridor by external
base residents
Dependence on Dependence on Significant Decrease in credit Lack of interest of
international external demand dependence on dependence in KG, KG creditors in
financial for oil, gas and loans from China, and increase in the corridor
Page 21 of 61
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