ADB in Regional Integration: The Case of the Greater Mekong Subregion

Transcription

1 APCAC Annual Meeting Ho Chi Minh City, Viet Nam 23 March 2007 ADB in Regional Integration: The Case of the Greater Mekong Subregion Jean-Pierre Verbiest Country Director Thailand Resident Mission

2 Strategic Pillars of ADB s Medium-Term Strategy II POVERTY REDUCTION Catalyzing Investments Strengthening Inclusiveness Promoting Regional Cooperation and Integration Managing the Environment Improving Governance and Preventing Corruption 2

3 Four Pillars of ADB s Regional Cooperation and Integration Strategy Regional and Subregional Economic Cooperation Programs Cross-border Infrastructure Physical Connectivity Hardware and Software Trade and Investment Cooperation and Integration FTAs Intra-regional Investment WTO Monetary and Financial Cooperation and Integration Regional Policy Dialogue Regional Reserve Pooling Financial Market Development Exchange Rates Regional Public Goods Environment Clean Energy and Energy Efficiency Natural Disaster Responses Communicable Diseases (HIV/AIDS/Avian Flu) Governance Money Laundering Human and Drug Trafficking 3

4 Connecting Asia Through Subregional Cooperation Initiatives IMT-GT BIMP-EAGA BIMSTEC CAREC GMS SASEC SECSA IMT-GT 4 Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation Central Asia Regional Economic Cooperation Greater Mekong Subregion South Asia Subregional Economic Cooperation Subregional-Economic Cooperation in South and Central Asia Indonesia-Malaysia-Thailand Growth Triangle

5 The Greater Mekong Subregion (GMS) Myanmar Land area: 677 thou sq km Population: 54.8 M GDP per capita: US$255 Thailand Land area: 513 thou sq km Population: 65.3 M GDP per capita: US$2,727 The GMS in 2005 Land area: 2.6 M sq km Population: 316 M GDP per capita: US$1,102 People s Republic of China Land area: 633 thou sq km Population: 93.8 M GDP per capita: US$1,032 (figures for Yunnan and Guangxi only Viet Nam Land area: 332 thou sq km Population: 83.1 M GDP per capita: US$622 Lao PDR Land area: 237 thou sq km Population: 5.6 M GDP per capita: US$491 Cambodia Land area: 181 thou sq km Population: 13.8 M GDP per capita: US$393

6 The GMS Program Started in 1992 by all 6 countries Pragmatic, flexible, and results-oriented Maximizes synergies with national development efforts Promotes mutual trust and goodwill Multifaceted role of the ADB 6

7 GMS Priority Sectors Transport Telecoms Energy Environment Tourism Trade facilitation Investment Human resource development Agriculture 7

8 Institutional Structure Summit Ministerial-level Conference ADB GMS Secretariat National Coordinating Committee in Each Country Senior Officials Meeting Forums/Working Groups in Nine Sectors 8

9 The 10-Year Strategic Framework: The GMS Vision: A Mekong subregion that is more integrated, prosperous and harmonious Connectivity Competitiveness 3 Cs Community 9

10 Mid-Term Review of the GMS-SF Major Findings: A. Emphasis on Software Aspects -Improving competitiveness -Livelihood improvement -Mitigating negative externalities B. Addressing key Issues/ Challenges -Differences in development -Ownership -Private Sector -Resource Mobilization -Links with other Initiatives -Strengthening GMS institutional arrangements 10

11 GMS Connectivity Road Transport Network

12 GMS Connectivity Road Transport Network

13 GMS Connectivity Road Transport Network

14 Economic Corridors: Backbone of GMS connectivity 14

15 North-South Economic Corridor To be completely upgraded by 2006 To be completely upgraded by 2008 Upgraded; in good condition Loan approved in 2004, ongoing Recently upgraded with BOT & Gov financing To be completed in Completed in Dec Financing of 3 rd Mekong bridge still to be secured In good condition. Not constraint to traffic 15

16 NSEC: Yunnan-Lao border crossing NSEC: Hekou-Lao Cai Border Crossing 16 NSEC: Thailand Section NSEC: Yunnan-Lao border crossing

17 Xishuangbanna (PRC) Tourism Development China-ASEAN Business Parks in Nanning Kunming (PRC) Haiphong (VIE) Railway Louang Namtha Airport (LAO) Malutang (PRC) Soc Son (VIE) Transmission Line Special Border Economic Zone in Chiang Rai (THA) Lao Cai Special Economic Zone Mengyang (PRC) Tha Wung (THA) Transmission Line Red River Delta (VIE) Navigation Backbone Telecommunication Line 17

18 East West Economic Corridor Widening by 2006 / 07 Opened Mar/Apr 2004 Opened in mid 2005 Opened in Jun 2005 To be opened 2008 Opened Dec 2006 Completed in

19 EWEC: Road Section in Lao PDR (before upgrading) EWEC: Road Section in Lao PDR (after upgrading) 19

20 World Heritage Sites Oxiana Gold and Copper Mine Phase I GMS Telecoms Backbone 20

21 Mostly 4-lane highways; not a constraint to crossborder traffic. GMS Southern Economic Corridor Upgrading to be completed by 2007 with ADB and JICA assistance. Upgrading of a section in Cambodia (70 km) to be completed by 2010 with assistance from Viet Nam; Financing requested for remaining sections. Roads Upgrading to be completed by 2007 with PRC assistance. Mostly 4-lane highways; not a constraint to crossborder traffic In good condition Upgrading to be completed by 2007with Thailand, Korea, World Bank and ADB assistance. Upgrading to be completed by 2008 with ADB and Japan assistance. 21 Upgrading to be completed by 2010 with ADB assistance. Bridge over Mekong to be financed by Japan

22 Phnom Penh to Bavet Border Crossing: Bavet-Moc Bai 22 Bavet Checkpoint now

23 23 Economic Infrastructure

24 New GMS Transport Sector Strategy ( ) Towards seamless transport services on a fully connected and integrated GMS network TSSS Focus and Coverage Meets increase in demand Increases efficiency/ quality of: transport, logistics services and facilities, and infrastructure management Covers all modes and recommends harmonizing procedures TSSS Action Plan TA and Investment Projects Regular Update of Investment Program and Transport Model

25 New TSSS Northern Corridor Western Corridor GMS Transport Sector Strategy Original TSSS North-South Corridor (E) Northeastern Corridor Southern Corridor Ext North-South Corridor (C) North-South Corridor (W) East-West Corridor Southern Corridor (N) Southern Corridor (S) 25

26 Improving Competitiveness Transport and trade facilitation Regional power interconnection and trade Telecommunications Backbone Promotion of the GMS as a single tourist destination Expansion of cross-border agricultural trade Building capacity for development management 26

27 The GMS Cross-Border Transport Agreement (CBTA) Multilateral instrument ratified by all GMS countries Includes references to existing international conventions Covers key aspects of cross-border transport facilitation Applies to selected and mutually agreed upon routes and points of entry and exit 27

28 Cross-Border Transport Facilitation in the GMS Coverage Facilitation of Frontier-Crossing Formalities Exchange of Traffic Rights Components Framework Agreement Annexes and Protocols (A&P) MOUs for Pilot Implementation 28

29 CBTA: Routes and Border Crossings 29

30 Key Issues in CBTA Implementation Capacity building at national and border levels Establishment of required border infrastructure Development of ICT/MIS for efficient border management Passage of new legislation to establish various transport facilitation regimes Continue to strengthen goodwill and trust among GMS countries 30

31 Developing the GMS Power Market: the Benefits Through power trade, GMS countries will be able to: Reduce investments in power reserves to meet peak demand Achieve more reliable supply Reduce operating costs Reduced greenhouse gas emission and pollutants Increase consumer access to the cheapest power sources available 31

32 Developing the GMS Power Market: Two-Pronged Approach 1. Providing the Policy and Institutional Framework to promote opportunities for extended cooperation in power trade 2. Developing the Grid Interconnection Infrastructure through a building block approach allowing cross-border dispatch of power Undertaken through: Regional Power Trade Coordination Committee (RPTCC) 32

33 Building the GMS Power Market: Where are we now? - Priority Studies on track (performance standards, transmission regulation) - Training Program ready to commence - Agreements on Master Plan, Database/ Website, PPA Good Practices - Road Map for Power Trade - Power Trade Operating Agreement (document for signing at the 3 rd GMS Summit) 33

34 GMS Energy Sector Strategy Original strategy covered the period 1995 to 2005 ADB-financed TA approved in January 2006 The TA will Define a vision for GMS energy cooperation Develop a strategy to meet energy challenges to 2020 All energy sectors covered, including renewables Energy efficiency specifically addressed Identify priority investment projects public/private Enhance regional energy security Schedule Inception May 2006 Implementation May 2006 December

35 Developing Telecommunications Installation of the GMS Telecoms Backbone Construction of the Information Superhighway Network (ISN) Promotion of ICT for Development 35

36 Way forward in GMS Telecommunications Cooperation Formulating Strategy and Plan of Action Addressing Organizational Issues Clarifying Role of Development Partners Strengthening Capacity Building 36

37 Phnom Penh Plan for Development Management Driving Change in the GMS: LEADERSHIP IN DEVELOPMENT PPP Learning Programs PPP Fellowship Program PPP Learning Resource Center PPP Journal and Newsletter PPP Website Institutional Development New Activities: - Research Program - Distinguished Speaker Series - Development Management Dialogue - Alumni Gatherings - Impact Assessment

38 GMS Business Forum: Its Role in Building Subregional Trade & Investment Composition: Representatives of Chambers of Commerce and Industry Recent Accomplishments: Organized fee-based Conferences Set-up Ad Hoc Committee on Public-Private Partnerships along the EWEC Participated in Conferences addressing key GMS Issues Future Directions: Expansion of Board of Directors Holding of Trade and Investment Conference Dual Track Approach 38

39 Building a GMS Community: The GMS Core Environment Program 1 ECONOMIC CORRIDORS 6 PERFORMANCE MEASUREMENT 2 PRIORITY SECTORS CORE ENVIRONMENT PROGRAM 5 REGIONAL INSTITUTIONAL DEVELOPMENT 3 BIODIVERSITY CONSERVATION 4 FINANCING MECHANISMS 39

40 Building a Community Core environment program Flood management and mitigation Communicable disease control Promotion of safe migration and prevention of trafficking of girls and women Establishment of complementary subregional initiatives (e.g., ACMECS, Development Triangle) 40

41 Summary Excellent progress in GMS since 1992 More could be achieved with increased resources and strategic, long-term alliances with development partners 41