© International Road Transport Union (IRU) 2012 IRU Model Highway Initiative (MHI) TRACECA Investment Forum Brussels, 28 February 2012 TRACECA Investment

© International Road Transport Union (IRU) 2012© International Road Transport Union (IRU) 2012

IRU Model Highway Initiative (MHI)

TRACECA Investment ForumTRACECA Investment ForumBrussels, 28 February 2012Brussels, 28 February 2012

TRACECA Investment ForumTRACECA Investment ForumBrussels, 28 February 2012Brussels, 28 February 2012

Igor Rounov,Igor Rounov, IRU Under Secretary GeneralIRU Under Secretary GeneralIgor Rounov,Igor Rounov, IRU Under Secretary GeneralIRU Under Secretary General

Page Page 22 © International Road Transport Union (IRU) 2012© International Road Transport Union (IRU) 2012

This is the IRUThis is the IRU

FoundedFoundedin in 19481948

By national associations By national associations

of 8 European statesof 8 European states

BelgiumBelgium DenmarkDenmark FranceFrance NetherlandsNetherlands

NorwayNorway SwedenSweden UKUK SwitzerlandSwitzerland

2012 2012 170 170 membersmembers

inin 73 73 statesstates


IRU New Eurasian Land IRU New Eurasian Land Transport Initiative - NELTITransport Initiative - NELTI

• Launched in September Launched in September 20082008

• Commercial deliveries by Commercial deliveries by transport operators from transport operators from 12 Euro-Asian countries12 Euro-Asian countries

• 5 routes5 routes

• In cooperation with ADB In cooperation with ADB and ECOand ECO


4. Sum of unjustified levies paid4. Sum of unjustified levies paid 143 700 USD143 700 USD

NELTI: Problems are Procedural!

1. Time spent en route by all vehicles1. Time spent en route by all vehicles 5 041 days5 041 days

2. Distance covered2. Distance covered 1 560 000 km1 560 000 km

4. Sum of unjustified levies paid4. Sum of unjustified levies paid 143 700 USD143 700 USD

3. Amount of official levies paid3. Amount of official levies paid 167 200 USD167 200 USD

5. Number of stops en route5. Number of stops en route 5 917 5 917

6. Number of state border crossings6. Number of state border crossings 10641064

7. Length of downtime en route7. Length of downtime en route 1 880 days1 880 days

8. Cargo carried8. Cargo carried 4 200 tonnes4 200 tonnes

1. Time spent en route by all vehicles1. Time spent en route by all vehicles 5 041 days5 041 days

7. Length of downtime en route7. Length of downtime en route 1 880 days1 880 days

3. Amount of official levies paid3. Amount of official levies paid 167 200 USD167 200 USD40% of time lost 40% of time lost

at border at border crossings!crossings!

Bakshish at the Bakshish at the border accounts for border accounts for

30% of additional 30% of additional costs!costs!


Model Highway Initiative (MHI) based on public-private partnership


Model Highway definition

Model Highway is a chosen section of an internationally rated trunk road of 1500-2000 km

in length crossing the territories of several Eurasian countries and being of strategic

importance for interconnecting and promoting Eurasian trade by road to the major world

markets.


MHI BSRH Section


MHI Central Asian Section


MHI support by international financial institutions

Black Sea Trade and Development Bank

The World Bank

Asian Development Bank


Letters of support to MHI


Meeting of the Ministers of Transportof the BSEC Member States,

October 21, 2011

8. Assist to the implementation of transport, auxiliary and logistic infrastructure development projects in the BSEC region in cooperation with other international organizations and financial institutions and by involvement of the business community, particularly on the basis of the public-private partnership, notably by inclusion of the IRU Model Highway Initiative (MHI) into the future project of the BSRH Master Plan and cooperation in preparation of required feasibility studies.


MHI Expert Group meetings

First MHI Expert Group meeting (Yalta, Ukraine, September 14,

2011)

Second MHI Expert Group meeting

(Batumi, Georgia, October 10-11, 2011)

MHI Expert Group Meeting in MHI Expert Group Meeting in Astana (16 February 2012)Astana (16 February 2012)



MHI Expert Group Meeting in MHI Expert Group Meeting in Astana / RecommendationsAstana / Recommendations

1. 1. To support the Model Highway Initiative (MHI) developed by the IRU with the aim to To support the Model Highway Initiative (MHI) developed by the IRU with the aim to facilitate international road transport haulage operations and border crossing facilitate international road transport haulage operations and border crossing procedures, and to promote trade, transit and tourism in Central Asiaprocedures, and to promote trade, transit and tourism in Central Asia;;

2. 2. To call on international organizations, in particular, the UN Economic and Social To call on international organizations, in particular, the UN Economic and Social Commission for Asia and the Pacific (UN ESCAP), Organization for Security and Commission for Asia and the Pacific (UN ESCAP), Organization for Security and Cooperation in Europe (OSCE), TRACECA Inter-Governmental Commission, Cooperation in Europe (OSCE), TRACECA Inter-Governmental Commission, Shanghai Cooperation Organization (SCO), Eurasian Economic Community Shanghai Cooperation Organization (SCO), Eurasian Economic Community (EurAsEC), and others, to coordinate their activities in the development of the road (EurAsEC), and others, to coordinate their activities in the development of the road transport infrastructure in Central Asia with the upcoming creation of the Model transport infrastructure in Central Asia with the upcoming creation of the Model HighwayHighway;;

3. 3. To develop a pre-feasibility study on creation of Model Highway in Central Asia with To develop a pre-feasibility study on creation of Model Highway in Central Asia with participation of governments of interested states, international financial institutions participation of governments of interested states, international financial institutions and potential invest-stakeholders of the project. To organize presentation of pre-and potential invest-stakeholders of the project. To organize presentation of pre-feasibility study in the capitals of interested states in summer 2012.feasibility study in the capitals of interested states in summer 2012.


Key aspects of MHIKey aspects of MHI

1. Creation of an ancillary infrastructure;

2. Administrative reforms and implementation of best practices;

3. Creation of a multilateral investment facility


1st key aspect of MHI

Creation of Ancillary Infrastructure

Border crossing points (BCP)Border crossing points (BCP)

Access to border crossing facilitiesAccess to border crossing facilities

Warehouses and multimodal logistics centresWarehouses and multimodal logistics centres

Gasoline stationsGasoline stations

Parking lotsParking lots

MotelsMotels


2nd key aspect of MHI

Institutional Reforms

Liberalisation of international road transport

Accession to and effective implementation of international Accession to and effective implementation of international agreements and conventions on trade and road transport agreements and conventions on trade and road transport facilitationfacilitation

Implementation of anti-corruption plans


3rd key aspect of MHI

Multilateral Investment MechanismMultilateral Investment Mechanism

Allocation of funds for future stakeholdersAllocation of funds for future stakeholders

Public Private Partnership (PPP)Public Private Partnership (PPP)

Other measures (introduction of ancillary MHI Other measures (introduction of ancillary MHI infrastructure clause into long term credit lines, etc)infrastructure clause into long term credit lines, etc)

Engagement of national and local business communitiesEngagement of national and local business communities


Multilateral Cooperation and Respective Responsibilities

National Government

International Finance InstitutesInternational Finance Institutes

International Professional Organizations

Local and transnational businesses act as main contractors

Implement institutional reforms, introduce best border crossing practices and business incentives for development of ancillary structure;

Establish and operate financial mechanism;

Provide expert assessment for ancillary infrastructure, secure support of MHI at governmental level, help the coordination of business Consortium, etc.


What’s next

Selection of routes and nomination of authorized Selection of routes and nomination of authorized representativesrepresentatives1Feasibility / pre-feasibility studyFeasibility / pre-feasibility study 2Road Show and MoURoad Show and MoU 3

International investment facilityInternational investment facility 4


Joint IRU / BSEC / BSTDB Workshop on MHI

Workshop on investment, financial and technological Workshop on investment, financial and technological issues of MHI implementationissues of MHI implementation (6-8 March 2012,

Thessaloniki, Greece)

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+7-495-258 17 59

mailto:[email protected]

mailto:[email protected]


www.iru.orgwww.iru.org

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© International Road Transport Union (IRU) 2012 IRU Model Highway Initiative (MHI) TRACECA Investment Forum Brussels, 28 February 2012 TRACECA Investment