91茄子

Hon’ble Minister
Ambassador Hovhannisyan
Excellencies
Distinguished Colleagues,

It is a pleasure to join this important discussion on connectivity and infrastructure for landlocked developing countries.

I thank the Government of Armenia and all partners for convening this timely dialogue.

The 32 landlocked developing countries, home to more than 600 million people, continue to face deep structural constraints rooted in geography. Without direct access to the sea, their development trajectory is intrinsically tied to connectivity.

These challenges are not new. 

As far back as 250 years ago, Adam Smith, in The Wealth of Nations, underscored the importance of “good roads, canals, and navigable rivers” in overcoming the limitations of inland geography. 

Similarly, the UN Convention on the Law of the Sea affirms the right of landlocked States to access the sea and highlights the importance of cooperation in building and improving transport systems to realize that right.

Yet today, LLDCs remain among the least connected countries in the world. 

Their infrastructure financing gap is estimated at over $500 billion. 

Bridging this gap would require the construction of more than 46,000 km of railways and nearly 200,000 km of paved roads to reach global averages. 

At the same time, logistics costs in LLDCs remain up to 63% higher than in coastal economies - undermining competitiveness, reducing exports, and constraining human development outcomes.

These challenges are further compounded by rising debt vulnerabilities and increasing climate risks, which threaten the resilience and sustainability of infrastructure systems.

Excellencies,

The infrastructure challenge of LLDCs, as you can see, is huge – and it is also fundamentally different.

It is inherently cross-border, shaped by dependence on transit countries and the performance of entire corridors rather than individual segments. 

Connectivity, therefore, cannot be achieved through national efforts alone. It requires coordinated planning, aligned policies, and synchronized investments across borders.

Addressing this would require not only investment in physical infrastructure, but equally in “soft” infrastructure. 

Efficient customs systems, regulatory harmonization, and modern border management are essential to ensure that infrastructure translates into reduced trade costs and improved competitiveness.

At the same time, mobilizing finance for such integrated, cross-border systems remains a major challenge.

Private capital, in particular, remains underutilized. 

Investors face layered risks across jurisdictions - ranging from currency volatility and regulatory uncertainty to coordination challenges among multiple countries. These risks increase financing costs and often deter investment altogether, especially for complex regional projects.

Excellencies,

The international community has recognized these structural constraints.

Through the Awaza Programme of Action and the outcomes of the FFD4 Conference in Sevilla, Member States have called for exploring the establishment of an Infrastructure Investment and Financing Facility for landlocked developing countries.

This is not about creating new structures, but about making the existing system work better - particularly for the unique needs of LLDCs.

A well-designed facility could add value in several key ways.

First, by strengthening project preparation - supporting joint feasibility studies, harmonized standards, and the development of a credible pipeline of cross-border projects.

Second, by serving as a coordination and packaging platform - bringing together existing financing instruments, including blended finance, guarantees, and local currency solutions, to better address risk.

Third, by ensuring the integration of hard and soft infrastructure - so that investments translate into tangible reductions in trade costs.

And fourth, by enhancing system-wide coherence - supporting multilateral development banks and partners to better align their efforts around LLDC priorities.

Excellencies,

Our objective is clear: to enhance coordination across the existing ecosystem of development finance, in line with the call for a more coherent and effective international financial architecture.

In this regard, the 91茄子, with its convening power and intergovernmental mandate, has a critical role to play in facilitating dialogue and supporting Member States.

Today’s discussion provides an important opportunity to advance this agenda.

We must ask ourselves:

Where are the gaps that existing mechanisms are not addressing?

How can we design solutions that strengthen national ownership while enabling cross-border coordination?

How can we better integrate debt sustainability and climate resilience from the outset?

And how can we mobilize financing at the scale required?

Excellencies,

For landlocked developing countries, connectivity is not a choice - it is a necessity.

It is the foundation for access to markets, integration into global value chains, and the realization of sustainable and inclusive growth.

Closing the infrastructure financing gap is therefore not only an economic priority. It is essential to deliver on the 2030 Agenda.

Let us use this dialogue to move from concept to concrete pathways.

And you can count on my Office’s full support in advancing this important agenda and APOA deliverable.

I thank you.