Tagged: ADB

China’s Latest Piece of the New Silk Road

By Alexandros Petersen

First published in Eurasia Daily Monitor January 10, 2013.

While the concept of a “New Silk Road” of trade, transport and telecommunications connections across Eurasia was formally endorsed by the US State Department, it is Beijing and Chinese companies that have taken the lead in realizing the immense infrastructure projects that will tie the mega-continent together. The latest is the completion of a second railway link between China and Kazakhstan at the burgeoning Khorgos crossing point and Special Economic Zone. This nearly 600-kilometer section is part of a larger project that connects China’s eastern port of Lianyungang with Kazakhstan’s rail system and points west toward Russia and the Caspian region. Chinese officials refer to it as part of the New Eurasian Land Bridge from China’s ports to Western European ports such as Rotterdam (Global Times, December 22, 2012).

Plans call for the railway to handle 20 million tons of freight by 2020, increasing to 30 million by 2030. The 292-km Chinese portion of the project was built for less than $1 billion—relatively inexpensive by global standards. Khorgos is already the key border crossing for the Central Asia–China natural gas pipeline from Turkmenistan and a new highway network under construction. According to Kazakhstan’s Minister for Transport and Communications Askar Zhumagaliyev, 800 km of this Western Europe–Western China highway will be completed in 2013, with much of the route running alongside the just-completed railway (Tengrinews, December 20, 2012). Continue reading

TAPI Pipeline: Bigger is not better

By Alexandros Petersen

First published in Foreign Policy’s AfPak Channel June 12, 2012

Last month saw a major step forward for the proposed TAPI natural gas pipeline. Regarded as a perennial pipe dream by many energy analysts, many critics of the Turkmenistan-Afghanistan-Pakistan-India project were silenced by the signing of a gas sales and purchase agreement between Turkmengaz, Inter State Gas Systems of Pakistan and the Gas Authority of India (GAIL). With the backing of the Asian Development Bank (ADB), the deal set important specifics, including payment and transit terms. But the ambitious project still faces daunting hurdles before it can become reality. Continue reading