On 23rd March 2021, Islamic Development Bank (IsDB) technical team comprising representatives of Regional Hub Kazakhstan and Regional Hub Turkey, Alternative Development Finance  (ADF) Unit of the DoST and Economic and Social Infrastructure (ESI) conducted a virtual meeting to consult with members of the Technical Working Group from Uzbekistan headed by Mr. Abdulla Khashimov – Head of Transport Corridors Development Department of the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan on the Mazari-Sharif–Kabul–Peshawar Regional Railway Project.

Mr. Khashimov thanked the IsDB team for a proactive approach during the project planning and updated participants on the actions taken by the Uzbekistan Working Group in terms of strategic coordination of activities within the signed Action Plan (Project Roadmap) with their counterparts in Afghanistan and Pakistan as well as engaging other development partners in the project.

The IsDB has confirmed readiness to work closely with the concerned Member Countries and other development partners, to explore possible ways to support this strategic regional project.

In this regard, the ADF Unit made a presentation on a Financing Strategy Proposal for the Project that builds on the Regional Infrastructure Supranational Entity (RISE) model. The team articulated the case for leveraging on the RISE model which is, by design, well placed to serve as the suitable implementation and resource mobilization vehicle for this cross-border Project.

Considering the significant size of the required financing, estimated currently at US$ 4.8 billion, the RISE model would establish a dedicated independent financial vehicle as a partnership between IsDB, Uzbekistan, Afghanistan and Pakistan and relevant development partners with the objective to prepare and develop a designated portfolio of bankable projects. The RISE will attract private sector participation and provide cost-efficient long-term financing from capital markets.

It was agreed to continue technical discussions focusing on the first joint milestone – signing a MoU on application of the RISE model and organization of a side event on the Project during the IsDB Group’s Annual Meeting 2021 in Tashkent, Uzbekistan.

The Mazari-Sharif–Kabul–Peshawar Regional Railway Project, named as a “project of the century” for the region, is expected to give IsDB Member Countries in Central Asia and Afghanistan, better access to seaports in Pakistan, reduce transport and transit costs and promote regional trade. It will also revive the region’s historical role as a bridge linking Europe and Asia by offering the shortest land route for international cargo movement.