Main Elements Format of Presentation Introduction What is the - PowerPoint PPT Presentation

Main Elements

Format of Presentation Introduction What is the SPCA? Development Context Strategic Framework, Priorities Development Challenges How are we going to Finance and Implement SPCA? Conclusion & Next Steps Indicative Envelope Implementation Mechanism 2

Introduction Development Context Development Challenges

Central Asia Development Context High Growth Rates But Poverty reduction has not be at same pace. Falling Commodity Prices Sustaining the progress is a Key challenge for the Region 4

Development Challenges Key Development Challenges: Diversification & Competitiveness Energy Transport Agriculture Trade • Inefficient use of • Landlocked geography • Doubling of the demand for natural resources • High trade costs food (population increase) • Low density of the • Deteriorated state of population and long • Underdeveloped • Water scarcity distances between trade services the existing power economic activity centers assets/ inefficiency in • Low agricultural • Cumbersome generation, productivity • Poor quality of transport customs transmission & infrastructure and administration distribution • Vulnerability to natural services disasters • Insufficient • Dramatic reduction economies of scale • Limited transport • Land degradation in Power Trade network 5

What is the SPCA? Strategic Framework & Priority Interventions

Strategic Framework Overarching Enhanced Growth Enhanced Competitiveness Increased Trade Goal Increased Agricultural Enhanced Regional Sector Expanded Transport Trade Development production & value Energy Security Objectives Network addition Environmental Enabling Private Sector Islamic Finance Capacity Development Sustainability Environment Development 7

SPCA Priority Interventions National quality Trade Policy Irrigation Infrastructure Increased Generation infrastructure systems Development & Water Management Capacity Development Increased crop Efficient Transmission & Maintenance policies for Trade Promotion production Distribution Financing - Renewal of Increased value SMEs’ Exports Energy exchanges addition rolling stock etc. Standardization and Transit facilitation safety measures

How are we going to Implement and Finance SPCA? Implementation Mechanism Indicative Financing

Implementation Mechanism Special Meeting of CA Governors and OIC Meeting (Annually) Coordination Coordination Secretariat (CTY) Technical Committee Coordination Secretariat (CTY) Meeting Bi-annually Coordination Secretariat (CTY) Coordination Secretariat (CTY) Secretariat (CTY) National Coordinator Sectoral Sub-committees (Trade, Energy, Transport, Agriculture) Coordination Development Secretariat Partners

Financing Table 2 - Financing (2016-2020)(US$, M) Annual Total financing estimated for the • Type of Financing Total Approval Program amounts to US$ 6 billion Ordinary Capital Resources 500 2,500 Regional Concessional Allocation The concessional element of the total • (including mobilized concessional 75 375 financing will vary depending on the type of the intervention. resources) Trade Finance 250 1,250 Private Sector Financing 100 500 The Bank is assumed to earmark 15% • of the SPCA OCR to concessional Resource Mobilization/Co-financing 1,375 resources for eligible regional Total 925 6,000 activities Source: IDB Staff Projections

Conclusion

Conclusion • At the end of its effective implementation, SPCA is expected to: Result in a wider production base, increase production and value addition (Agriculture, Industrial and SMEs, Etc.) Increase trade within the Region Increase regional energy security Expand the transport network in All contributing to increase the Region Enhanced Competitiveness, Economic Growth & Cooperation

Islamic Development Bank Group Thank You • Jakarta - Indonesia 17 April 2016