ADB's $7.5bn financing to shape CAREC's next phase

CAREC's Quarter-Century Investment Record

The Central Asia Regional Economic Cooperation (CAREC) Program marked its 25th anniversary on 29 September 2026, celebrating a cumulative investment of $60.2 billion as of August 2026. The programme has expanded significantly, growing from five founding nations into an 11-country partnership.

The Asian Development Bank (ADB) has been a primary contributor to this growth, providing $19.9 billion of the total cumulative investment. Ministers from CAREC countries convened in Ulaanbaatar, Mongolia, on 29 September 2026, where they adopted a declaration outlining priorities for continued regional cooperation.

ADB President Masato Kanda acknowledged the programme's success, stating that CAREC countries have "done the patient work of earning mutual confidence" over the past quarter-century.

Strategic Focus on Trade and Connectivity

The declaration adopted at the Ulaanbaatar conference specifically prioritises facilitating intra-regional trade and attracting further investment across the CAREC member states. This strategic objective will be supported by targeted improvements to border crossings and the enhancement of both electricity and digital networks throughout the region.

Currently, trade among CAREC countries represents only approximately 5% of their total trade, as reported for last year (2025), which indicates substantial scope for increasing business within the region.

To help unlock this potential, the ADB is advancing a new generation of economic corridors, designed to integrate investments in transport, energy, digital connectivity, trade, human capital, and urban development.

ADB's Financing for the Next Phase

The Asian Development Bank has committed substantial financing to support CAREC's next phase of development. The institution plans to provide over $7.5 billion in direct financing through 2030 and aims to catalyse an additional $3 billion in private sector investment.

Specific initiatives include the recently approved ADB Border Upgrades for Integration, Logistics and Development (BUILD) Facility, which will offer up to $400 million to modernise border crossings.

Complementing these infrastructure investments, proposed negotiations on a CAREC Trade and Investment Facilitation Partnership seek to establish more predictable rules for regional trade and investment. In the energy sector, a pipeline of projects is expected to reach about $1.5 billion by 2030, linked to ADB’s Pan-Asia Power Grid Initiative.

Furthermore, the ADB is exploring a proposed power link across the Caspian Sea involving Azerbaijan, Kazakhstan, and Uzbekistan to expand clean electricity trade.

These commitments build on approximately $3 billion already invested by ADB since early 2025, which accounts for about 30% of an indicative $10 billion financing envelope through 2030 announced at last year’s ministerial conference.

Economic Impact and Future Outlook

These planned investments are designed to strengthen regional connections, foster larger markets, create more employment opportunities, and promote shared prosperity across the CAREC region. Past ADB projects under CAREC have already improved over 20,000 kilometres of roads and railways, leading to shorter travel times and reduced trade costs.

The ongoing focus on digital and energy networks, alongside trade facilitation, aims to further integrate the economies and significantly increase the current 5% intra-regional trade figure.

Decision-makers in industries operating in or with Central Asia should monitor the progress of the proposed CAREC Trade and Investment Facilitation Partnership negotiations for potential changes in trade and investment regulations.

Additionally, the deployment of funds from the BUILD Facility for border upgrades will directly influence the cost and efficiency of cross-border logistics in the region over the coming years, with specific project details expected to emerge through 2030.