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Home : Regions and Countries : Regional Cooperation : Greater Mekong Subregion : Publications : Proceedings of Ministerial, Forum, and Working Group Meetings : Appendix 3 - Report of the Chairperson of the Senior Officials' Meeting to the Ministerial Meeting

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Thirteenth Ministerial Conference on Subregional Economic Cooperation Program
Twelfth Ministerial Conference on Subregional Cooperation
Appendix1
Appendix2
>> Appendix3
Appendix4
Eleventh Ministerial Conference on Subregional Economic Cooperation
Ninth Ministerial Conference on Subregional Cooperation
Eighth Ministerial Conference on Subregional Cooperation
Sixth Meeting of the Subregional Transport Forum
Seventh Meeting of the Subregional Transport Forum
Fifth Meeting of the Subregional Transport Forum
Fourth Meeting of the Subregional Transport Forum
Eleventh Meeting of the Subregional Electric Power Forum
Tenth Meeting of the Subregional Electric Power Forum
Ninth Meeting of the Subregional Electric Power Forum
Eighth Meeting of the Subregional Electric Power Forum
Seventh Meeting of the Subregional Electric Power Forum
Sixth Meeting of the Subregional Electric Power Forum
Fifth Meeting of the Subregional Electric Power Forum
Fourth Meeting of the Regional Power Trade Coordination Committee
Second Meeting of the Regional Power Trade Coordination Committee
First Focal Group Meeting of Regional Power Trade Coordination Committee
Ninth Meeting of the Experts Group on Power Interconnection and Trade
Eighth Meeting of the Experts Group on Power Interconnection and Trade
Seventh Meeting of the Experts Group on Power Interconnection and Trade
Sixth Meeting of the Experts Group on Power Interconnection and Trade
Fifth Meeting of the Experts Group on Power Interconnection and Trade
Fourth Meeting of the Experts Group on Power Interconnection and Trade
Third Meeting of the Experts Group on Power Interconnection and Trade
Second Meeting of the Experts Group on Power Interconnection and Trade
Sixth Meeting of the Subregional Telecommunications Forum
Fifth Meeting of the Subregional Telecommunications Forum
Steering Committee Meeting for the Regional Technical Assistance on the Establishment of the Backbone Telecommunications Project for the Greater Mekong Subregion - Phase 1 (RETA 5915)
Fourth Meeting of the Subregional Telecommunications Forum
Eleventh Meeting of the Working Group on Environment
Tenth Meeting of the Subregional Working Group on Environment
Ninth Meeting of the Working Group on Environment
Seventh Meeting of the Working Group on Environment
Sixth Meeting of the Working Group on Environment
Fifth Meeting of the Working Group on Environment
Fourth Meeting of the Working Group on Environment
Workshop on Drug Control Initiatives in the Greater Mekong Subregion
Sixth Meeting of the Working Group on Human Resource Development
Fourth Meeting of the Working Group on Human Resource Development
Third Meeting of the Working Group on Human Resource Development
Second Meeting of the Working Group on Human Resource Development
16th Meeting of the Working Group on the Greater Mekong Subregion Tourism Sector
15th Meeting of the Working Group on the Greater Mekong Subregion Tourism Sector
14th Meeting of the Working Group on the Greater Mekong Subregion Tourism Sector
Twelfth Meeting of the Subregional Working Group on Tourism
Eleventh Meeting of the Subregional Working Group on Tourism
Tenth Meeting of the Subregional Working Group on Tourism
Ninth Meeting of the Subregional Working Group on Tourism
Eighth Meeting of the Subregional Working Group on Tourism
Special Meeting of the Trade Facilitation Working Group
Fourth Meeting of the Trade Facilitation Working Group
Third Meeting of the Trade Facilitation Working Group
Second Meeting of the Trade Facilitation Working Group
Workshop on Customs Facilitation in the GMS
Inception Meeting of Trade Facilitation Working Group
Fourth Meeting of the Subregional Investment Working Group
Third Meeting of the Subregional Investment Working Group
Second Meeting of the Subregional Investment Working Group
GMS Mid-Term Review cum Senior Officials Meeting
Workshop on the Preinvestment Study for the Greater Mekong Subregion: East-West Economic Corridor
Quadripartite Meeting on the Chiang Rai-Kunming via Lao PDR Road Improvement Project

Report of the Chairperson of the Senior Officials' Meeting to the Ministerial Meeting

1. The SOM was chaired by Mr. Xiaoyu Zhao, Director-General, International Department, Ministry of Finance, People's Republic of China (PRC) and co-chaired by Mr. Rajat M. Nag, Director General, Mekong Department, Asian Development Bank.

2. Mr. Xiaoyu Zhao, Director-General, International Department, Ministry of Finance of PRC welcomed the Senior Officials. He noted that the 12th GMS Ministerial Conference served as the "ribbon-cutting" meeting, it being the first ever international conference to be held at the Dali Longshan Convention Center. Mr. Zhao noted that PRC, as a member of the GMS, attaches great importance to the GMS Program. Mr. Zhao recalled the first GMS Summit of Leaders that provided strategic guidance to the GMS Programs, and noted that the SOM has been mandated to carry the Leaders' initiative forward. Mr. Zhao indicated that the GMS Program is widely hailed as a major success story and has delivered, but the challenge is to "raise the bar" to a new and higher level. Mr. Zhao noted that PRC has enjoyed pleasant and fruitful cooperation with the GMS countries characterized by mutual trust and confidence. He was pleased to note that PRC will deepen this commitment through specific proposals. He acknowledged ADB's assistance to the GMS Program. As chair and on behalf of the participants, Mr. Zhao thanked the people of Dali for their hospitality in hosting the event.

3. In his opening remarks, Mr. Nag noted the significance of the 12th Ministerial Conference, it being the first ministerial meeting held after the GMS Leaders' Summit. The GMS Governments are now faced with the challenge of recommending concrete steps to achieve the GMS vision set by the GMS Leaders. He emphasized the need to develop a clear "road map" to move the GMS regional cooperation at a faster pace than in the past. Mr. Nag encouraged the meeting to use the SOM and the working groups as platforms for information sharing and discussion of regional cooperation initiatives. Recognizing that new trends have created new demands on both national and regional institutional mechanisms under the GMS Program, Mr. Nag highlighted the need for more effective intersectoral coordination; an enhanced capacity for resource mobilization; and a stronger role in coordinating with other regional cooperation programs. Mr. Nag acknowledged the significant contribution of development partners to the development of the Mekong region and encouraged the meeting to engage them more actively in the GMS processes and mechanisms. Mr. Nag called for sustained commitment on the part of the GMS countries to implement the vision laid down by the Summit of Leaders, emphasizing that the continued viability of the GMS Program very much depends on this.

4. The Senior Officials reviewed progress made since the GMS Leaders Summit, the reports of the sector working groups and forums, and the update of the 11 GMS flagship programs. The Senior Official requested the adoption of the records of discussions of all the meetings of GMS Forums and Working Groups that have been held since the 11th Ministerial Meeting.

Overview of the GMS Program

5. The SOM reviewed recent developments in the GMS Program and requested the Ministers to note that:

  • since the Summit of Leaders, progress has been made under key initiatives formulated for the GMS program
  • important events during the year include the implementation of the Northern Economic Corridor, the implementation of the Phnom Penh Plan, and the establishment of the Working Group on Agriculture
  • ADB will consider two GMS loans --- one for PRC and another for Cambodia --- in 2003, as well as 15 technical assistance for the GMS
  • a number of planned and ongoing projects are being supported by the GMS countries themselves as well as other development partners
  • since the SOM in March 2003, five sector and sector-related meetings or workshops have been held under the GMS program, and six more meetings are scheduled to be held during the rest of the year
  • consultations were undertaken in 2003 with key development partners, including multilateral and bilateral financial institutions, private sector groups, and civil society; these helped to raise awareness on the GMS activities with a view to mobilizing support and assistance for the GMS Program
  • other awareness-raising activities included the preparation of a GMS Environmental Atlas, and improvement of the GMS web page within the ADB website

6. The Ministers were requested to consider the following:

  • the need to continue to build and support strategic partnerships among key stakeholders of the GMS Program in pursuit of the Summit Leaders vision for GMS
  • the importance of pursuing a stronger outreach and coordination with development partners, including the private sector
  • the need to accelerate "connectivity" and promote competitiveness as the GMS Program moves into its second decade amid a changing regional and global context

7. The SOM expressed appreciation for ADB's assistance in the form of loans and technical assistance for regional cooperation initiatives, which indicated ADB's continuing support and commitment to the GMS Program.

Review of Progress in Priority Sectors

8. Since the mid-term SOM in Manila in March 2003, the Senior Officials reviewed the progress of work in priority sectors and updates on key components of the flagship programs, and identified priorities for the short and medium-term. The SOM was pleased to note that PRC and Thailand are extending financial and technical assistance for priority subregional infrastructure projects in other GMS countries. This includes offers of assistance for future capacity building in both hard and soft aspects of infrastructure.

9. The following highlights of the SOM's review are presented to the Ministers. Specific interventions at the SOM are presented in the Attachment.

In transport:

10. The Ministers were requested to note:

  • significant progress in the transport sector, particularly these projects along the East-West, North-South, and Southern Economic Corridors
  • that core transport and other infrastructure developments need to take place in the three economic corridors over the next 10 years to establish the necessary linkages among the GMS countries and with other neighboring countries
  • that specific projects in ADB's tentative pipeline for the next three years to support the development of the three flagship corridors include the PRC section of the Kunming-Lashio Road Corridor, the Vietnamese section of the Kunming-Haiphong Transport Corridor (2005), and the Vietnamese section of the Southern Coastal Road Corridor (2006)

11. The Ministers may wish to further note the developments on the GMS Cross-Border Transport Agreement (GMS Agreement) as follows:

  • Myanmar will accede to the GMS Cross-Border Transport Agreement on 19 September 2003; with Myanmar's accession all countries are now signatories to the Agreement.
  • two negotiation meetings have been held so far in 2003 for Stage 1 annexes and protocol of the GMS Cross-Border Agreement, and were highly successful in terms of finalizing the Stage 1 annexes and protocols;
  • during the second negotiation meeting, the establishment of a Joint Committee on the GMS Cross-Border Agreement was proposed in accordance with Article 29 of the Agreement, draft terms of reference of which will be drafted by ADB as requested by the GMS countries;
  • Thailand will ratify the GMS Cross-Border Agreement in October 2003, which will result in the Agreement's entry into force within 2003;

12. The Ministers were requested to:

  • support the proposed investment projects for the GMS transport sector
  • endorse the updated development matrices for the three economic corridors
  • support cooperation initiatives in other transport modes, including rail, air and water transport
  • further coordination by all concerned parties on the East-West Economic Corridor
  • support the major milestones for the future work on cross-border transport facilitation, namely:

    1. negotiation, finalization, and signing of Annexes and Protocols between 2003-2005
    2. ratification by all GMS Governments of the Annexes and Protocols between 2004-2007
    3. preparation for implementation of the GMS Agreement and its Annexes and Protocols between 2003-2007
    4. full implementation of the GMS Agreement in 2007/2008

  • support the establishment of the institutional structure for the implementation of the GMS Cross-Border Agreement, including the National Transport Facilitation Committees, and the Joint Committee and its sub-committees, cognizant of the anticipated entry into force of the GMS Cross-Border Agreement by the end of 2003; and
  • expedite the implementation of the GMS Cross-Border Agreement and its annexes and protocols to maximize the benefits to be derived from subregional road infrastructure scheduled be completed in the next three years.

In energy:

13. The Ministers were requested to note the following:

  • all six GMS members have signed the IGA during the First GMS Summit of Leaders on 3 November 2002
  • the guidelines for the establishment of the Regional Power Trade Coordination Committee (RPTCC) were adopted at the eighth meeting of the EGP held in Yangon, Myanmar in October 2002
  • GMS countries have been requested to nominate a Minister responsible for the IGA and three RPTCC members each
  • Myanmar, Viet Nam and Thailand have ratified the IGA resulting in IGA's entry into force with the ratification of at least three members
  • initial findings of the Study for Options in the GMS Future Power Market were presented by the World Bank during the 9th EPF meeting in October 2002, and EGP members have been requested to assist consultants in country visits
  • in addition to the two TA projects approved by ADB to help the GMS members prepare the Regional Power Trade Operating Agreement (PTOA) taking into account the IGA and desirable forms of power trade and prepare a detailed design for a proposed Power Distribution and GMS Transmission in Cambodia, a technical assistance project on GMS Power Interconnection Phase 1 is being prepared under ADB's program for approval in 2003
  • ADB projects in the pipeline include a transmission project in Cambodia (2003), Nam Theun 2 project in Lao PDR (2004), and a power interconnection project each in Lao PDR and Viet Nam (2006)

14. The Ministers were requested to consider the following:

  • facilitate the nomination of the Minister responsible for power trade under IGA and the nomination of three (3) representatives to the RPTCC
  • facilitate the formulation of the PTOA, which will provide the guidelines for technical coordination, cross-border transmission pricing, institutional framework and other operational aspects of power trade
  • expedite the ratification/acceptance of the IGA
  • support other high-priority GMS energy projects that are included in the development matrix on "Regional Power Interconnection and Power Trade Arrangements" for possible inclusion in the ADB's indicative lending pipeline for 2007 and beyond
  • support the updated development matrix for power interconnection
  • collectively address civil society concerns in the energy sector
  • actively promote private sector involvement in the energy sector

In telecommunications:

15. The Ministers were requested to note that:

  • the progress made under ADB's regional technical assistance (RETA) on Telecommunications Sector Policy Formulation and Capacity Building, particularly the country-specific reform agenda needs to be implemented soon before moving forward with additional physical infrastructure development in the sector
  • the human resource development component of the ADB's telecommunications RETA which will be implemented by International Telecommunications Union in Bangkok from 1 November 2003 to 30 April 2004
  • a feasibility study for phase 1 telecommunications fiber optic backbone project for Cambodia and Lao PDR is proposed under another ADB RETA in 2003, with ensuing proposed investment projects in these two countries, possibly in 2005
  • future initiatives in the telecommunications sector would address the sector's reform agenda, conduct of technical issues studies and institutional strengthening initiatives, expansion in the capacity of the national trunk transmission backbone network and increased access to ICT services in provincial and remote villages, and a phase 2 of the telecommunications backbone

16. The Ministers were requested to consider the following:

  • facilitate the implementation of the country specific sector reform agenda by agencies concerned in Cambodia, Lao PDR and Viet Nam
  • prepared for the telecommunications sector under an ADB RETA to promote private participation
  • endorse the updated development matrix for the telecommunications backbone and information and communications technology flagship program, and identification of other priority telecommunications projects for inclusion in the development matrix
  • more active involvement private sector in the telecommunication sector
  • development of e-commerce in the GMS

17. The SOM noted that infrastructure extends beyond the provision of roads, power and communications; it includes border cooperation; explicit linkages of economic activities; private sector development, and policy reforms for sustained use of infrastructure.

18. The SOM noted that GMS governments, development partners, civil society, NGOs, and the private sector should be encouraged to work together to more comprehensively address issues on energy infrastructure development.

19. The SOM welcomed the offer of the PRC and Thailand to provide training for GMS telecommunications officials in the fields of fixed and mobile communications and channel signaling systems.

In environment:

20. The Ministers may wish to note that:

  • the First Experts Group Meeting and the Inception Workshop of the ADB's TA on the National Performance Assessment and Subregional Strategic Environment Framework (SEF II) were held in July and August 2003, respectively
  • the Experts Meeting on the Development of Institutional Mechanisms for Environmental Management and Sustainable Development in the GMS was held in August 2003 where potential areas of future cooperation in the environment sector were discussed and the need for capacity building at different levels was identified as a priority both at the national and subregional levels
  • as an outcome of the above meeting, a TA on Enhancement of GMS Capacity for NSDS Formulation and Institution Building at Local, National and Subregional Levels is under formulation for further review by WGE
  • other proposed projects for the environment sector include: (a) loan for Flood Management and Mitigation covering Cambodia, Lao PDR and Viet Nam; (b) technical assistance on Support for the Rationalization of the Mekong River Flood Management and Mitigation Program, and (c) GMS Flood Management and Mitigation
  • the Ninth Meeting of the Working Group on Environment will be held in November 2003 in Phuket, Thailand
  • the GMS Environmental Atlas, being prepared by ADB at the request of the GMS-WGE, is in its final review phase and is targeted to be launched in December 2003

21. The Ministers were requested to:

  • confirm the proposed projects for the GMS environment sector
  • support other high-priority GMS environment projects that are included in the development matrix for the Strategic Environment Framework, for possible inclusion in the ADB's indicative lending pipeline for 2007 and beyond
  • support the development of national and subregional institutional mechanisms and capacities for implementing the Johannesburg Plan of Implementation agreed to at the World Summit for Sustainable Development

In agriculture:

22. The Ministers were requested to note that:

  • agriculture was launched as the ninth sector of the GMS Program with the convening of the first meeting of the Working Group on Agriculture (WGA-1) in January 2003; and steps have been taken to build the momentum of cooperation in agriculture since then
  • two ADB TAs were recently approved, namely:

    • Promoting Partnerships to Accelerate Agriculture Development and Poverty Reduction in the GMS
    • Improved Community and Industrial Forestry for implementation starting in 2004

  • coordination of the activities of the WGA with those of other working groups and forums (such as trade and GMS Business Forum) is needed to achieve complementarity
  • Thailand has kindly agreed to host the next WGA meeting in early 2004

23. The Ministers were requested to.

  • support the proposed agriculture sector projects including the agricultural initiatives supported by PRC and Thailand, namely, sustainable agricultural/natural resources utilization and management, food safety and sanitary and phytosanitary standards, and community-based simple agro-processing projects
  • endorse other high-priority GMS agriculture projects that are included in the development matrix under the flagship project on strategic environment framework

24. The SOM welcomed the offer of PRC and Thailand to support several GMS priority initiatives in agriculture, in addition to those that are being assisted by ADB.

In tourism:

25. The Ministers were requested to note that:

  • there has been considerable progress on activities related to the tourism sector
  • the 14th Meeting of the Working Group on Tourism (TWG) was held in Hanoi in March 2003;
  • the Mekong Tourism Forum was also held in Hanoi in March 2003 where the subregion's tourism potential was showcased
  • GMS national tourism organizations (NTOs) have contributed in cash (US$5,000) or in-kind for the GMS Tourism Marketing Fund
  • ADB loans for the Mekong Tourism Development Project were signed between ADB and the three participating countries (Cambodia, Lao PDR and Viet Nam); the project would prepare, among others, a GMS Tourism Development Plan and a common hotel classification system for the subregion
  • ADB will soon start the groundwork for the preparation of an "initiating paper" on the concept of a GMS visa, in close consultation with agencies and ministries concerned and international organizations; meanwhile, GMS countries will exchange relevant information during the process of preparing the study for a GMS visa concept, including the consideration of a pilot program for a GMS tourist visa
  • the agenda of the TWG has been harmonized with the development matrix for the GMS Tourism Development flagship program
  • the next TWG will be held in Thailand
  • a new program on improving standards of management of natural and cultural resources for conservation and tourism is proposed to be included in the development matrix

26. The Ministers are kindly requested to consider the following:

  • endorse the revised/updated development matrix for the GMS tourism development flagship program, which was considered by TWG-14
  • facilitate close cooperation from agencies concerned in Cambodia, Lao PDR, and Viet Nam for the implementation of the ADB-assisted Mekong Tourism Development Project
  • support other priority tourism projects for inclusion in the development matrix
  • support the idea of strengthening institutional arrangements for the GMS tourism sector
  • support the participation of other development partners in the implementation of the flagship program
  • study further the GMS visa and related issues

27. The SOM agreed that the GMS visa is important to further promote the subregion as a single tourist destination. Cambodia expressed the hope that by initially restricting the planned visa to certain tour groups, the efforts to establish a GMS visa could move forward. Lao PDR supported the GMS visa concept. Viet Nam indicated that it is necessary to carefully study the GMS visa scheme before a decision could be made. Thailand welcomed the proposed next steps to establish the GMS visa, and offered to host a meeting to discuss these. PRC indicated that it is currently studying the GMS visa concept.

28. The SOM reaffirmed high priority of tourism in the GMS Program. ADB reiterated that promoting the GMS as a single tourist destination is a win-win situation for all GMS countries.

In human resources development:

29. The Ministers were requested to note the progress made on ongoing GMS HRD initiatives, which are mostly supported by technical assistance from ADB:

  • under the Rollback Malaria Initiative in the GMS, field studies/situation analysis have been conducted, the results of which would be reviewed by the Project Advisory Committee
  • activities have started and training needs analyses have been completed in the five DMCs for the ICT and HIV/AIDS Preventive Education in the Cross-border Areas of the GMS, and a mid-term review of the project will be held in November 2003 to assess the progress of implementation and to discuss and formulate the concept and scope of the follow-up project
  • the project on Community Action for Preventing HIV/AIDS is fully underway with activities for strengthening communities and NGOs in HIV/AIDS responses
  • a new ADB TA was approved in support of Financing Needs for HIV/AIDs Prevention and Care in Asia and the Pacific involving collaborative work with UNAIDS for developing tools to assess financing needs and gaps in HIV/AIDS prevention and care
  • the proposed expanded scope of the WGHRD to include crosscutting concerns -- i.e., on poverty monitoring, prevention of human trafficking, NGO issues, as well as provision of advice to other GMS working groups on how to deal with these issues -- would be discussed in the 5th meeting of the WGHRD in the last quarter of 2003
  • crosscutting concerns would be addressed by projects to be financed by the Poverty Reduction Fund supported by the UK and the Netherlands Governments, namely, Preventing Trafficking in Women and Girls and Promoting Safe Migration, Unmasking Cross-border Poverty in the GMS, and Promoting NGO Support in the GMS
  • proposed ADB projects in the HRD sector include Phase II of the GMS Phnom Penh Plan, Phase II of ICT and HIV/AIDS Preventive Education in Cross-Border Areas, Communicable Disease Control in Border Areas of GMS, and ICT-Enhanced Education Partnerships for Educational Quality Improvement and Community Development
  • new approaches may be considered for future delivery of priority HRD projects such as sector wide approach, partnership model, and integrating social sectors services

30. The Ministers were requested to further note the developments in the implementation of the Phnom Penh Plan for Development Management (PPP) as follows:

  • the first electronic meeting of the PPP Steering Committee was held in May 2003; the first live meeting was held on 17 September 2003
  • a training needs analysis for the GMS has been completed with the draft final report under preparation
  • three short courses have been conducted in collaboration with the Mekong Institute (MI) and Asian Institute of Technology (AIT), namely, Role of Corporate Governance in the GMS Growth (MI), Advanced Management Program for Asia-Pacific Managers (AIT), and Policy Interventions for GMS Poverty Reduction (MI)
  • three courses are scheduled in October-November, namely,

    1. Advanced Executive Development Program in Phnom Penh
    2. Health Care Financing in Developing Countries
    3. Urban Environment Management

  • implementation details of the PPP need to be addressed taking into account issues on linking results of training needs analysis with design of courses, selection of learning institutions to conduct the courses, establishment of twinning arrangements, target trainees and selection criteria, and mobilization of additional resources
  • the meeting of the Steering Committee on 17 September 2003 agreed that there is a need for

    • networking and collaboration with premier training and educational institutions and building local capacity
    • a good balance of development management interventions from short courses to modular (medium to long-term) courses
    • initiative from GMS countries to market resource requirements from donor agencies and bilateral sources

31. The Ministers were requested to consider the following:

  • support the proposed projects for the GMS HRD sector, noting the need to mobilize resources to support this endeavor
  • endorse other high-priority HRD projects that are included in the development matrix "Developing Human Resources and Skills Competencies" for possible inclusion in the ADB's indicative lending pipeline for 2007 and beyond
  • support the updated development matrix for HRD
  • support other priority HRD projects for inclusion in the development matrix for HRD;
  • endorse the proposed expansion of the WGHRD to include cross-cutting concerns such as poverty, human trafficking, and NGO-related concerns, as well as on proposed approaches for future HRD project delivery
  • support PPP implementation arrangements, and related enhancements
  • intensify cooperation in the application of information communications technology in preventive health education and educational systems improvement

32. The SOM welcomed the kind offer of PRC, Thailand and Viet Nam to provide capacity building programs, e.g., joint research and development, development of GMS networks for training centers, in support of HRD initiatives.

33. The SOM also welcomed PRC's proposal for a GMS cooperation initiative to prevent and combat the spread of epidemic diseases, including malaria and hepatitis B, in the post-SARS period, that would include the provision of necessary facilities and technical know-how.

In trade:

34. The Ministers were requested to note that:

  • steady progress has been made towards implementing single-stop customs inspection (SSCI) in the four pilot sites
  • the implementation of SSCI in the pilot sites needs to be accelerated; in particular the legal and institutional impediments must be resolved
  • the GMS National Coordinators may wish to take the lead in the required internal consultations to address these legal and institutional impediments
  • work on the development and maintenance of cross-border trade and investment data is progressing under ADB's assistance. An interim report was completed in February 2003 and plans for producing the database in CD format are underway
  • the subsequent work on cross-border trade and investment, the database should include harmonization of cross-border trade and investment information, including a compilation of the trade and investment regulations in the GMS
  • the next TFWG meeting would indicate the specific areas of cooperation in trade facilitation in the context of recent development in the region

35. The Ministers were requested to consider the following:

  • support other high priority GMS trade facilitation projects that are included in the development matrix for cross-border trade and investment facilitation
  • endorse the convening of the third TFWG meeting in late 2003 in order to discuss the elements of an action plan on trade and investment facilitation embodied in the Joint Summit Declaration
  • PRC's proposal to improve the effectiveness of customs cooperation by establishing a special sub-committee at the level of the heads of national customs agencies

36. PRC proposed to strengthen cooperation in trade facilitation through the development of a comprehensive customs strategy as well as the establishment of a special subgroup on customs. PRC also encouraged more opportunities for public-private sector dialogue, and suggested that more focus be given to promoting cross-border investments. Thailand noted that the Interim Report on ADB-funded Cross-border Trade and Investment Information System Study has been completed and requested that, based on that report, trade and investment data base should now be harmonized among the GMS countries, including compilation of trade and investment regulations. Lao PDR and Cambodia called for an accelerated implementation of the single-stop customs inspection procedures. In addition, Cambodia suggested that a compilation of customs procedures should be undertaken as this would be useful for the private sector.

In investment:

37. The Ministers were requested to note that:

  • the GMS BF has made progress in rationalizing its organizational structure, its work program, and financing streams
  • the GMS BF has formulated its work plan with the following ongoing activities:

    • training and assistance to SMEs on quality control
    • products and services such as SME on-line yellow pages
    • the upgrading of the GMS BF website and investment opportunities promotion in the GMS

  • new thrusts, focus and planned activities will be discussed during the forthcoming Subregional Investment Working Group (SIWG) to be held in early December 2003 or in early 2004
  • the GMS Program was featured in various events that served to promote awareness of the subregion and its investment and business potential
  • projects in the development matrix will be considered by the SIWG for possible inclusion in work program

38. The Ministers were requested to consider the following:

  • evaluate PRC's proposal for the establishment of a Mineral Prospecting Risk Fund, which will be further considered at a later SOM when countries have had the time to fully review the proposal.

39. The SOM acknowledged the participation of private sector representatives to the 12th Ministerial Conference. The private sector representative from Thailand suggested that the GMS countries organize an investors' forum to promote the subregion by highlighting the regional comparative advantage of the GMS. He reported that the interests of the private sector are more specific and they therefore would prefer concrete recommendations on their role or participation in the GMS Program. Thailand also suggested that private sector meetings be held back-to-back with the working groups and forums. It was also suggested that the private sector, through the GMS BF, formulate an action plan for each of the sectors of cooperation in the GMS. Thailand suggested that GMS BF meeting should be organized back-to-back with SOM and Ministerial Meeting, and the GMS BF Chairperson would report the results of the GMS BF operation to the Ministerial Meeting.

GMS Regional Cooperation Strategy and Program

40. The SOM also discussed ADB's proposed GMS Regional Cooperation Strategy and Program (RCSP), particularly the strategic issues that will be addressed by the document; and proposals to enhance the GMS institutional framework. The major points discussed were as follows:

  • the GMS RCSP is ADB's roadmap designed to guide operations in the GMS commitment with the GMS Strategic Framework endorsed by the first GMS Summit
  • formulation of the RCSP will be through a consultative and partnership process between ADB, GMS Governments, development partners and the civil society
  • a key feature of the RCSP is to catalyze new financing for priority investments in the region
  • the RCSP is relevant to the GMS countries as it would have important implications for successful resource mobilization in support of regional cooperation and development, and it would provide the framework for closer coordination among participating countries
  • the RCSP is intended to complement and amplify ADB's individual country programs by addressing key development challenges and opportunities from a regional perspective
  • RCSP is geared primarily to reduce poverty in the GMS by focusing on the regional dimensions of four strategic thrusts

    1. pro-poor sustainable economic growth
    2. human development
    3. private sector development
    4. environmental and natural resource management

  • the RCSP would be discussed by the SOM prior to its finalization
  • the RCSP formulation and subsequent consideration by the ADB Board is expected to be completed in the first quarter of 2004

41. The Ministers were requested to:

  • endorsed RCSP's strategic thrusts
  • facilitate the consultative and partnership process for the RCSP formulation

Looking Ahead: Enhancing the GMS Institutional Frameworks

42. The Ministers were requested to note that:

  • there is a need to strengthen coordination and cooperation in order to address more complex issues in a rapidly changing environment
  • as requested by SOM, ADB agreed to consider providing additional support in the capacity building of the national institutions involved in the GMS Program

43. Given the expanded scope of the GMS Program, the SOM discussed the present institutional arrangements under the GMS Program and identified ways in which it could be made more effective.

In this regard, the Ministers were requested to consider the following:

  • the Ministerial Meeting should focus on strategic and policy issues
  • SOM's role should be strengthened
  • SOMs should meet at least twice a year and more frequently as required
  • the linkages between the working groups and SOM should be further strengthened
  • national coordinating mechanisms for the GMS Program should be further improved
  • the meetings of working groups and forums should be synchronized with the meetings of the SOM

44. At the Concluding Session, the SOM welcomed Lao PDR's offer to host the 13th Ministerial Conference in 2004, and PRC's offer to host the Second GMS Summit in 2005.

45. In closing, the SOM Chair noted that the meeting has met the challenge of "raising the bar" and has brought regional cooperation to a new level. The SOM chair outlined the achievements of the meeting as follows:

  • it was agreed that considerable progress has been achieved since the GMS Summit of Leaders, both by the GMS Governments and by ADB, the principal development partner in the GMS
  • SOM was able to note areas of progress, identify areas requiring follow-ups, and provide strategic directions for the future
  • deliberations on the GMS regional cooperation and strategy program or RCSP has given the SOM the opportunity to confront the set of complex development challenges that can be meaningfully addressed through regional cooperation
  • the discussion on the needed improvements in the GMS institutional framework is a concrete manifestation of SOM's resolve to strive to be very effective and relevant to the complex requirements of regional cooperation


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