Asian Development Bank (ADB)

CAREC

Established in 2001, the Central Asia Regional Economic Cooperation, or CAREC Program is a partnership of 11 countries (Afghanistan, Azerbaijan, People's Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan), supported by 6 multilateral institutions. As of 2016, 176 CAREC-related projects worth around $29.4 billion have been implemented in the four core areas of cooperation—transport, trade facilitation, trade policy, and energy. CAREC’s institutional framework is informal and project-oriented. In the initial years, its programs focused on building confidence and improving communications among members. Now in its second decade, CAREC is guided by the ADB Strategy 2020, which has the primary goal of enhancing participating economies’ trade and competitiveness. In October 2016, CAREC members decided to develop a new long-term strategy in response to the evolving regional and global economic and social landscapes following the conduct of the Mid-Term Review of CAREC 2020 in 2016. The institutional framework may need to be strengthened and streamlined, and sector focus may need recalibration, while the program’s overall coverage may be expanded to include areas beyond transport, energy, and trade.

The goals of the CAREC Transport and Trade Facilitation Strategy 2020 (TTFS 2020) are competitive corridors across the CAREC region; efficient movement of people and goods; and sustainable, safe, user-friendly transport and trade networks. By 2016, over 7,200 kilometers of roads had been upgraded or improved, or 93% of the target for 2020. Newly constructed or improved railways in the six designated rail corridors had surpassed the 2020 targets. At the 15th Ministerial Conference in Islamabad in October 2016, the CAREC Ministers endorsed the Road Safety and Railways Strategies for 2017-2030. Also in 2016, Pakistan and the People’s Republic of China acceded to the TIR Convention (Transports Internationaux Routiers), making all CAREC countries party to the TIR Convention.

In energy, the CAREC energy strategy and work plan, 2016–2020, which was adopted in 2015, sets thematic priorities to develop and invest in priority projects; develop sustainable energy resources; develop capacity, knowledge, and demonstration of technology; establish robust legal and regulatory frameworks for private investments; and support cross-border energy trade. Work has begun on the 500-kV transmission line between Pule Khumri and Kabul and the associated substations and will be completed by December 2018. This line is part of the Turkmenistan–Uzbekistan–Tajikistan–Afghanistan–Pakistan Interconnection Project (TUTAP) and will have a transmission capacity of 1,000 MW enabling year-round energy export. Under the Turkmenistan–Afghanistan–Pakistan Power Interconnection Project (TAP), Turkmenistan will be able to export electricity to Afghanistan and to Pakistan. In September 2016, ADB approved a regional technical assistance to pilot off-grid solar power in 5 CAREC countries: Afghanistan, Kyrgyz Republic, Mongolia, Pakistan and Tajikistan.

CAREC’s Trade Policy Strategic Action Plan 2013–2017 aims for accession to the WTO, greater trade openness with simplified trade taxes and eliminated quantitative restrictions, reducing the trade-impeding impact of technical regulations and sanitary and phytosanitary (SPS) measures, expanded trade in services, and capacity building and knowledge sharing on trade issues. Kazakhstan and Afghanistan acceded to WTO as the 162nd and 164th members in November 2015 and July 2016 respectively, which makes 9 out of 11 CAREC countries WTO members. At least nine CAREC member countries have eliminated or incorporated all import taxes and fees into tariffs, reduced average tariffs to 10% or less, eliminated or converted quantitative import restrictions into tariffs, and formally acknowledged the importance of the WTO SPS and technical barriers to trade agreements.

GMS

Founded in 1992, the GMS Economic Cooperation Program (GMS Program) is now entering its third decade. In two decades of its existence, the GMS program has established itself as a flexible, result-oriented, and project-based vehicle for furthering regional cooperation and integration. Cambodia, the PRC (Yunnan Province and Guangxi Zhuang Autonomous Region), the Lao People’s Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam make up the GMS. The latest GMS strategic framework is anchored on a corridor-development approach that focuses on widening and deepening GMS economic corridors along several important routes by developing areas along and contiguous to these corridors (ADB 2011). To implement its strategic framework, the GMS endorsed the Regional Investment Framework (RIF) for 2013–2022, a regional project pipeline of 200 projects estimated at $90 billion. To further prioritize the RIF, the RIF Implementation Plan (RIF-IP) was prepared in 2014 with a list of 90 priority projects amounting to $30 billion. In December 2016, GMS Ministers endorsed the Regional Investment Framework Implementation Plan 2020, which provides a shortlist of 107 investments and technical assistance projects estimated to cost $32.7 billion. The GMS Program continues to focus on a broad range of sector and multi-sector strategic priorities: developing the major GMS corridors as economic corridors; strengthening transport links, particularly roads and railways; developing an integrated approach to deliver sustainable, secure, and competitive energy; developing and promoting tourism using the Mekong as a single destination; promoting competitive, climate-friendly, and sustainable agriculture; enhancing environmental performance; and supporting human resource development initiatives that facilitate GMS integration while addressing any negative consequences of greater integration.

Cross-border infrastructure development has been the core of the program, with the near completion of the transport component of its three main corridors—the East-West, North-South, and Southern Economic Corridors. The reach of these corridors is also being widened through several bridges and linked secondary roads. Since 1992, almost 7,000 kilometers of road have been built and rehabilitated. The program is also preparing a new GMS Transport Sector Strategy with a component on multimodal transport, which aims to broaden its focus on the transport sector to include railways. Initiated in 1999, the landmark GMS Cross Border Transport Facilitation Agreement uses a single legal instrument for key, nonphysical measures for efficient cross-border land transport. Efforts continued to implement bilateral and trilateral road transport agreements between GMS countries. Negotiations to expand traffic rights between Cambodia and Thailand as well as bilateral transport agreements between Myanmar and Thailand are on-going. Relatedly, Single Stop Inspection (SSI) has been implemented at the Lao Bao–Dansavanh border between Viet Nam and Lao PDR along the EWEC since February 2015, reducing processing time of trucks crossing the border. Efforts are also being made to implement SSI at the Mukdahan–Savanakhet, and Myawaddy–Mae Sot border crossing points. The GMS Cross Border Transport Agreement (CBTA) and all its Annexes and Protocols have been fully ratified by all the GMS countries and entered into force in late 2015. GMS countries are now working for the issuance of GMS Road Transport Permit, which is expected for implementation in 2017 (except for Myanmar, which will fully implement it by 2019).

SASEC

The South Asia Subregional Economic Cooperation (SASEC) program was formed in 2001 when four South Asian Growth Quadrangle countries (Bangladesh, Bhutan, India, and Nepal) requested for ADB assistance in advancing their economic cooperation initiative. The initiative stemmed from the belief that regional cooperation can help address constraints of size, geography, and institutional capacity that hinder the subregion’s development. SASEC has been helping members improve cross-border connectivity and increase trade through a pragmatic, results-oriented initiative focused on transport, trade facilitation, and energy. Priority areas have included (i) improving international corridors to expand trade and commerce; (ii) modernizing customs operations, improving border facilities, and facilitating trade through transport; and (iii) improving cross-border power transmission connectivity to boost energy security and reliability in the subregion. Since 2001, 43 SASEC projects worth more than $8.8 billion have been completed or are under way. For the next decade, SASEC’s agenda will be framed within wider integration processes taking place in Asia. This implies enhancing economic linkages with East and Southeast Asia and harnessing the full potential of Asian integration.

On transport, the SASEC program is developing sections of two high-priority SAARC Corridors—Corridor 4 covering Kakarbhitta (Nepal)–Panitanki/ Phulbari (India)–Banglabandha (Bangladesh); and Corridor 8 covering Phuentsholing (Bhutan)–Jaigaon/ Changrabandha (India)–Burimari (Bangladesh). Various SASEC road connectivity projects in Bangladesh, Bhutan, Nepal, and India’s northeastern regions are improving parts of the Asian Highway Network, constructing alternate routes and developing access roads while improving land customs stations and customs systems. ADB-supported railway enhancement projects in Bangladesh are improving the international connectivity of the rail system. Improvements in border-crossing facilities such as land customs stations and dry ports in Bhutan, and land customs stations and integrated check posts in India are speeding border processing and increasing efficiency. When completed, the SASEC–Myanmar Corridor will promote South Asia-Southeast Asia connectivity. In addition to transport, SASEC’s Trade Facilitation Strategic Framework 2014–2018 is undertaking several national and subregional projects in five priority areas: (i) customs modernization and harmonization; (ii) standards and conformity assessments focusing on SPS measures; (iii) improvement of cross-border facilities; (iv) through transport facilitation; and (v) institutional capacity building. It has provided support to Bangladesh, Bhutan, the Maldives, and Nepal to undertake policy-based and regulatory reforms and streamlining processes and procedures, as well as planning the institutional arrangements toward the establishment of national single windows.

Pacific Islands

Endorsed by Pacific Islands Forum Leaders at their 46th forum in July 2014, the Framework for Pacific Regionalism is the subregion’s current master strategy for strengthening cooperation and integration between the states and territories of the broader Pacific subregion. The framework replaced the 2005 Pacific Plan for Strengthening Regional Cooperation and Integration. The new framework supports focused political conversations and settlements that address key strategic issues, including shared sovereignty, pooling resources and delegating decision-making. Instead of a list of priorities, the framework outlines a clear process through which Pacific priorities will be identified and implemented.

After successfully raising fishing license revenues with the establishment of a regional vessel day scheme, Pacific governments are now considering further regional cooperation initiatives to increase economic returns from fisheries while ensuring sustainable resource management. The Parties to the Nauru Agreement’s vessel day scheme involves a subgroup of Pacific economies—including Kiribati, the Marshall Islands, the Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Solomon Islands, and Tuvalu. The vessel day scheme is one of the most successful examples of regional cooperation in the Pacific. It aims to safeguard sustainability and maximize revenues from the sale of fishing licenses to foreign fleets that work the vast exclusive economic zones of Pacific DMCs. It establishes a maximum number of total days for fishing in the waters of agreement members, allocated to each country based on historical fishing in their economic zones. Countries can either sell their vessel days to fishing fleets, subject to a minimum benchmark fee, or trade days with other members. Since full implementation in 2012, the scheme has generated a substantial increase in incomes from the extensive fisheries resources of its members. During the Pacific Islands Forum in September 2015, leaders endorsed the Regional Roadmap for Sustainable Pacific Fisheries, setting a 5-year window for further increasing economic returns from fisheries through regional cooperation.

A project for Papua New Guinea considers the following: (i) providing border facilities; (ii) supporting the effort to draft investment policy legislation; (iii) preparing a telecommunication strategy; (iv) establishing a one-stop service office of the Border Development Authority (BDA) to promote trade, investment, and tourism in the border town of Vanimo in the western province; (v) supporting efforts to improve PNG’s human capital base in the areas of trade and investment promotion, business entrepreneurship and administration, information technology, and Indonesian language proficiency; and (vi) supporting improved human development in terms of health and education in five border villages. The ADB project was launched in 2010 and will be completed in 2018. Construction of staff housing for border facilities is almost complete, and an investment policy and telecommunication strategy is being formulated. Under the project, the BDA is also providing direct cash transfers to needy households in the project area to improve local conditions in the areas of safe motherhood, at risk children, power supply, sanitation, and HIV/AIDS prevention.

BIMP-EAGA

As the Regional Development Advisor for the Brunei Darussalam–Indonesia–Malaysia–The Philippines—East ASEAN Growth Area (BIMP-EAGA), ADB provides assistance at the strategic, operational, and administrative levels. ADB helps implement the roadmap through technical and financial support, and is closely involved in BIMP-EAGA working groups, clusters, and other subregional mechanisms. ADB provided technical assistance in 2010 amounting to $1.5 million to support BIMP-EAGA’s efforts to harmonize customs, immigration, quarantine, and security (CIQS) rules, regulations, and procedures in its major ports and land border crossings. In addition, ADB has completed a study on Land Transport Facilitation that provides recommendations for improving the implementation of BIMP-EAGA land transport MOUs in the areas of insurance, transit, authorized economic operators, and common permits to cross borders. There is also an ongoing study on the Investment Guide to Value Chains in BIMP-EAGA’s Economic Corridors. In delivering its capacity enhancements, ADB is working closely with countries’ agencies as well as international technical bodies including the WCO, IMO, and other development partners. Enhanced knowledge and skills of local officials on facilitating and securing trade based on applicable international standards on customs, immigration, agricultural and health quarantine and port security has been contributing to better coordination among border agencies and regular interaction and collaboration with private sector stakeholders. Lessons learned and best practices in ADB’s support for BIMP-EAGA has also been shared with similar subregional cooperation initiatives under ASEAN, particularly in the Indonesia–Malaysia–Thailand–Growth Triangle (IMT-GT). On transport connectivity, 12 priority infrastructure projects with a total estimated cost of over $1 billion have been identified in the Implementation Blueprint. The pipeline of the second generation priority infrastructure projects is being prepared for inclusion in the BIMP-EAGA Vision 2025, which is being drafted for endorsement at the next Leaders’ Summit.

For more information:

https://aric.adb.org/pdf/aeir/AEIR2016_5_subregional-cooperation-initiatives.pdf

https://www.adb.org/countries/subregional-programs/bimp-eaga

https://www.adb.org/countries/subregional-programs/carec

http://www.carecprogram.org/

https://www.adb.org/countries/subregional-programs/sasec

https://www.adb.org/countries/gms/main