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Regions and Countries Regional Cooperation Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Fourth Meeting of the Subregional Transport Forum (STF-4)
Fourth Meeting of the Subregional Transport Forum (STF-4)IntroductionThe Fourth Meeting of the Subregional Transport Forum (STF-4) was held in Vientiane, Lao People’s Democratic Republic (Lao PDR) on 14-15 May 1998. The Meeting was hosted and organized by the Government of Lao PDR, with the assistance of the Asian Development Bank (the Bank). The GMS countries and the Bank wish to express their sincere appreciation to the Government of Lao PDR for the hospitality, organization and assistance provided to Meeting participants and observers. The objectives of the Meeting were (i) to review the progress of implementation of subregional transport projects and activities, in particular, the Phnom Penh - Ho Chi Minh Project, the East-West Transport Corridor Project, and the Chiang Rai - Kunming Transport Project, and Cross-Border Movement of Goods and People in the GMS; (ii) to exchange views on the "second tier": subregional priority projects; and (iii) to discuss other regional initiatives in the transport sector. The Meeting agenda is attached as Appendix 1. The participants included delegations from Cambodia, the People’s Republic of China (PRC), Lao PDR, Myanmar, Thailand, and Viet Nam. Observers from the ASEAN Secretariat, the Government of France, the Government of Japan, the Mekong River Commission Secretariat, the United Nations Development Program (UNDP), the Working Group on Economic Cooperation in Cambodia, Lao PDR, and Myanmar under the ASEAN Economic Ministers-Japan Ministry of Trade and Industry, and the representative from the Working Group on Environment also attended. The list of participants and observers is attached as Appendix 2. The Meeting was co-chaired by Mr. Seune Phetsanghane, Vice Minister of Communication, Transport, Post and Construction and Mr. Günter Hecker, Manager, Transport and Communications Division, Infrastructure, Energy and Financial Sectors Department (West), ADB. Opening SessionHis Excellency, Minister Phao Bounnaphol welcomed the participants to the Meeting on behalf of the Government of Lao PDR. He cited the progress of cooperation made under the GMS Economic Cooperation Program under which several projects in seven priority areas are now in various stages of implementation. He emphasized the importance of mobilizing funds for these projects and cited efforts of the ADB in promoting the region’s investment potential. He reiterated the Lao PDR Government’s support for transport and communications projects notwithstanding funding and skilled labor constraints. He expressed appreciation for the Bank’s efforts in supporting national as well as subregional projects and expressed confidence that enhanced cooperation will lead to improvements in the quality of life of peoples in the region. In his opening remarks, Mr. Günter Hecker, Manager, Transport and Communications Division, Infrastructure, Energy and Financial Sectors Department (West), ADB thanked the Government of Lao PDR for hosting the Fourth Meeting of Subregional Transport Forum. In reviewing the status of the "first tier" priority subregional priority projects, Mr. Hecker observed that by the year 2000, these three projects—the East-West Transport Corridor Project, the Phnom Penh Ho-Chi Minh City Road Project, and the Chiang Rai-Kunming Road Improvement Project—would have entered construction stage with financial assistance from the Bank. To sustain the momentum of cooperation, he suggested that the Forum should begin discussions on the "second tier" priority projects. He noted the progress of the study on facilitation of cross-border movements and stressed the need for speeding up the work on the development of a basic framework for bilateral and multilateral cross-border agreements. Since four of the participating GMS countries are now members of ASEAN, he stressed the need for closer coordination with ASEAN and other regional initiatives. He also informed the Meeting of efforts at promoting closer linkages between activities in the transport and environment sectors. Finally, he expressed optimism that countries affected by the recent economic crisis can succeed in their efforts at recovery and encouraged the GMS countries to continue with efforts at infrastructure development to meet future requirements of economic growth. Country Presentations on Ongoing Transport Development ActivitiesCambodia H.E. Sok Mathoeung, Undersecretary of State, Ministry of Public Works and Transport of Cambodia reported that the Cambodian Government is now encouraging private sector participation in the transport sector through the privatization of state enterprises and the implementation of build-operate-transfer (BOT) schemes in the aviation sector. At present, only one passenger transport company has remained under the jurisdiction of the Ministry of Public Works and Transport. Road network conditions were also substantially improved under various BOT arrangements. These changes have resulted in a huge increase in motor vehicle registration and a rapid growth in commercial vehicle fleets. As regards the Phnom Penh-Ho Chi Minh City Road Improvement project, the Cambodian delegation reiterated the Government’s continued support for the project activities, particularly those relating to cross-border issues. The project team that visited Cambodia in May 1998 received excellent support from high ranking officials of the Ministry of Public Works and Transport, including the facilitation of interviews with border personnel. The delegation is optimistic that the cross-border agreement between Cambodia and Viet Nam will be signed in the near future. People’s Republic of China Mr. Zhang Wen, Senior Engineer, Planning Department, Ministry of Communications, reported on the status of the road sections in PRC that are part of the Chiang Rai-Kunming Road Improvement Project. Since 1990, the Government has invested $700 million to improve the road condition from Kunming to Mohan which is part of National Route 213. By the end of 1999, it is planned that the road section from Kunming to Yuanjiang (200 km) will be upgraded to an expressway, and the section from Xiaomengyang to Jinghong (24 km) will be improved to a Class II highway. In the meantime, the Jinghong Bridge over the Lanchangjiang River has already opened to traffic. The road section from Mohei to Simao (71 km) has been upgraded to Class II highway in 1996. The road sections from Simao to Xiaomengyang (103 km) and Xiaomengyang to Mohan (190 km) will be upgraded to an expressway and Class II highway, respectively. The project preparation work for Yuanjiang to Mohei section (163 km) is being carried out smoothly and is planned for construction in 1999. Lao PDR Mr. Math Sounmala, Deputy Director of Cabinet, Ministry of Communications, Transport, Post and Construction, reported that components of subregional road projects in Lao PDR are in various stages of development. Sections involved in the Chiang Rai - Kunming Road Improvement Project had made the least progress; Route 9 under the East-West Transport Corridor Project has been able to obtain financing; and the Southern Lao PDR - Sihanoukville Road Project is proceeding well, with civil works scheduled to be completed before the turn of the century. Progress was likewise reported concerning water transport in the Upper Lancang-Mekong River. A bilateral navigation agreement with the People’s Republic of China has been signed, and meetings have been held with Thailand and Myanmar to draft a similar agreement. Railway project components in Lao PDR have been at a standstill because of funding problems. On the other hand, there have been significant developments in the air transport subsector. The Government of Lao PDR is currently negotiating with potential investors for leasing aircraft to meet increasing demand and to prepare for "Visit Laos Year 1999". Meanwhile, three airports are undergoing improvements. An air control tower and new passenger terminal at the Vientiane International Airport is being built with grant aid from Japan. An extension of the runway at Luang Prabang Airport, which has recently been opened as an international airport, is underway with assistance from Thailand. The Pakse Airport is also under improvement with assistance from ADB and OPEC. In addition to the airport improvements, several air strips are being planned to promote domestic communication, trade, investment, and tourism. Myanmar U Pe Than, Director General, Waterways Department, Ministry of Transport reported that all modes of transport in Myanmar are being developed following market-oriented lines. Private sector participation in infrastructure investment is encouraged through the privatization of state enterprises, leasing, and the implementation of BOT schemes. In addition to national transport priorities, the Government is also actively participating in regional initiatives such as the Asian Highway under the auspices of ESCAP, and the Trans Asian Railway under the ASEAN Mekong Basin Development Cooperation Program (AMBDC). With the expansion in transport infrastructure, cross-border facilitation has become increasingly important and has prompted the Government to consider accession to the seven United Nations conventions on road transport reflected in ESCAP resolution 48/11. In the meantime, Myanmar has entered into a number of bilateral agreements with neighboring countries to facilitate movement in border areas. The progress of national components of GMS projects were reported in detail for all modes of transport. With respect to the road projects in particular, progress was reported in the improvements of the Tachileik - Kengtung road under the Chiang Rai - Kunming Road Improvement Project (R3). For the Kunming - Lashio Road Improvement Project (R4), the Mandalay – Lashio - Musi section has been successfully implemented under the BOT scheme. Rehabilitation work is also ongoing for the Lashio - Thipaw section of the Lashio – Loilem - Kengtung Road Improvement Project (R7). Thailand Mr. Tavepatana Tinamas, Deputy Permanent Secretary, Ministry of Transport and Communications, indicated that Thailand has launched several transport projects designed to complement the GMS initiatives. The road sections in Thailand forming part of the Bangkok - Phnom Penh - Ho Chi Minh - Vung Tau Road Project are in various stages of upgrading and widening. Route R2 under the East-West Transport Corridor Project is also undergoing improvement. Under the Chiang Rai - Kunming Road Improvement Project (R3), the Chiang Rai - Mae Sai section has been upgraded to a four-lane highway since early 1998, while the Chiang Rai - Chiang Kong section is planned for rehabilitation within the period 1997-2001. In the railway subsector, the construction of the railway route from Nong Khai to the middle of the Friendship Bridge is 80% complete; while the detailed engineering design for the Denchai - Chiang Rai route will be completed by mid-1998. As regards the water transport subsector, the Upstream Lancang/Mekong River Navigation Improvement Project has made considerable progress in preparing the text of the Draft Agreement on Commercial Navigation. New ports are being developed in Chiang Saen and Chiang Kong to provide better facilities. In the area of air transport, the Government is proceeding to construct the Second Bangkok International Airport at Nong Ngu Hao which is scheduled to be operational in 2005, and will seek private sector participation in both investment and operation of the airport. With the increasing importance of air transport in the region, Thailand proposed that the Working Group on Air Linkages should meet again in the near future. Thailand reconfirmed its full support to the ongoing study on the facilitation of cross-border movement of goods and people in the GMS and urged the early finalization of the framework agreement. Viet Nam Mr. Ly Huy Tuan, Deputy Director, Legal Department, Ministry of Transport, reported progress on activities to facilitate the cross-border movement of goods and people in the GMS. Bilateral agreements with PRC and Lao PDR have been completed and negotiations for an agreement with Cambodia are ongoing. Substantial progress was also reported on the Viet Nam segment of the Phnom Penh - Ho Chi Minh City Road Project, with the Ministry of Transport currently considering the evaluation results of the technical proposal made by consultants for supervision services. The Government of Viet Nam has also committed to upgrade Route 9 from Lao Bao to Dong Ha as part of the East-West Transport Corridor Project. Meanwhile, a feasibility study for the Red River Navigation Project was completed by ADB’s consultants in November 1997. Funding sources for the project, however, have not yet been identified. Other developments in the transport sector relate to the equitization of state-owned enterprises and the implementation of BOT projects. Several enterprises in transport, vehicle manufacturing, or road and port construction, will be equitized in 1998 and 1999. The Ministry of Transport has also been authorized to implement transport projects under BOT arrangements. Currently, there are 16 projects of this kind, of which six are proposed to be funded by domestic sources. Status of Subregional Transport ActivitiesA. East West Transport Corridor Project (RETA 5710) Mr. Thomas F. Jones, Senior Project Economist, Transport and Communications Division, Infrastructure, Energy and Financial Sectors Department (West), reported on the status of the East-West Transport Corridor project for which detailed engineering study is currently ongoing under a Bank regional technical assistance. The project components, finalized in 1995 after considering alternative routes, consists of: (i) a bridge crossing the Mekong River near Mukdahan, Thailand and Savannakhet, Lao PDR; (ii) improvements in Route 9 from Xeno to Lao Bao in Lao PDR; (iii) improvements in Route 9 from the Viet Nam-Lao PDR border to Dong Ha; (iv) improvement of Route 1 from Dong Ha to Da Nang; and (v) upgrading of the port at Da Nang. The project seeks to encourage traffic and trade flows between Viet Nam, Lao PDR, and Thailand by improving transport infrastructure in the road corridor, improving facilities at border crossings, and facilitating cross-border trade. Economic internal rate of return (EIRR) for the Mekong River Bridge is estimated at 10+%, but improves to 18% when combined with Route 9 in Lao PDR. EIRR for Route 9 in Lao PDR alone is 20+%; and that for Route 1 in Viet Nam is 26%. Financing arrangements for the project are in the advanced stages. The Overseas Economic Cooperation Fund (OECF) of Japan has been requested to finance the Mekong bridge; the Bank and the Government of Japan have been requested to finance two-thirds and one-third of the Lao PDR section of Route 9, respectively; and the Government of Japan has also been approached for the financing of Da Nang Port. Route 9 in Viet Nam is being improved using Government resources, while Route 1 improvement is funded by the World Bank. The Third Meeting of the Project Steering Committee (PSC) on 11-13 May in Vientiane reached concrete agreements to pursue the project further. These included: (i) arrangements for detailed design, pre-construction activities and construction for the eastern part of Route 9 in Lao PDR (to be financed by ADB); (ii) location of the Mekong Bridge; and (iii) implementation arrangements for the Mekong Bridge. The PSC also agreed to pursue a tripartite agreement to govern border crossings along the corridor. ADB was requested to continue its involvement in the project in the areas of overall project coordination and cross-border issues. To facilitate cross-border movement along the corridor, a draft tripartite agreement between Lao PDR, Thailand, and Viet Nam is being prepared for circulation in June 1998. The agreement will cover transit, inter-state and multi-modal transport applicable to all cross-border crossings among the three countries. The agreement is expected to become effective before the commissioning of the Mekong River Bridge. Although the draft tripartite agreement will precede the framework agreement on cross-border movement of goods and people in the GMS, its provisions will be in accordance with the general provisions in the framework document. B. Phnom Penh - Ho Chi Minh City Road Project (RETA 5649) Mr. Jones, ADB, reported on the progress of the Phnom Penh - Ho Chi Minh Road Improvement Project. The Project has the objective of encouraging traffic and trade flows between Cambodia and Viet Nam through improvements in the project road and facilities at the border. It is part of the Bangkok - Phnom Penh - Ho Chi Minh City - Vung Tau Road Project. In November 1995, ADB provided technical assistance of $3.0 million for the preparation of the Phnom Penh - Ho Chi Minh City segment of the project. The technical assistance would update the feasibility study; conduct detailed engineering, including environmental and social impact analysis; and study the legal aspects of cross-border movements along the project road. In Cambodia, the project involves the reconstruction of 105 km of project road from Neak Loeung to Bavet; minor improvements of about 60 km from Phnom Penh to the Mekong River Ferry; construction supervision and contract designs; and training of Government personnel. The road section from Bangkok to the Cambodia border (Route #s 33, 304, and 319; 215 km) is in good condition; while the section from the Cambodia border to Sisophon (Route #5; 48 km) will be upgraded possibly through grant aid. The section from Sisophon to Phnom Penh (Route #5; 410 km) will be partly improved under the Bank-financed Road Network Improvement Project. In Viet Nam, the project involves the reconstruction and widening of about 80 km from Thu Duc to Moc Bai (Routes 1 and 22); construction supervision; and training of Government personnel. The Government will undertake various improvements in the road section from Ho Chi Minh City to Vung Tau (Route # 51; 85 km). The Meeting was informed that the Bank has programmed $40 million in loans for the Cambodia component (78% of total cost), and $100 million for the Viet Nam component (69% of the total cost). Results of the Bank appraisal indicated that the economic internal rate of return (EIRR) of the project in Cambodia is 22%; that in Viet Nam, 25%; for combined project, 24%; and including subregional benefits, 27%. Loan negotiations for the Project are scheduled to be held in August 1998. The two Governments have negotiated and initialed a framework agreement on cross-border facilitation. Signing of the framework agreement is a condition for loan negotiations. The loan agreement will focus on having the necessary protocols, and subsidiary agreements to give effect to the Framework Agreement. C. Chiang Rai – Kunming Road Improvement Project (RETA 5728) Mr. Jones, ADB, reported on the status of the Chiang Rai - Kunming Road Improvement Project. A Bank regional technical assistance grant for $600,000 was approved in February 1997 to review the 1994 project feasibility study, to examine the technical, economic, and social and environmental studies already undertaken, and to prepare the project for Bank funding. For the Thailand section, the study would review the road development plans; look at alternative crossings of the Mekong River near Houei Sai and Chiang Kong; and analyze constraints to cross-border movements. For the Mekong River Crossing at Houei Sai - Chiang Kong, two possible bridge sites have been identified, at an estimated cost of $28-38 million. The Government of Thailand is currently preparing plans for upgrading the road links from Chiang Kong to Chiang Rai, as well as minor road improvements on various routings on the Thai segment of the corridor. For the Lao PDR section, the study has recommended three improvement levels for the roads with EIRRs ranging from 16% to 22%. The study will also evaluate the concession agreement entered into between the Government and a private company for developing the road segment into a toll road. The road sections in Yunnan Province (National Route #213) are being upgraded by the Provincial Government. The section from Kunming to Yuxi (88 km) is being upgraded into four lanes in 1999 at an estimated cost of $125 million; the section from Yuxi to Yuanjiang (112 km) is being upgraded into four lanes in 1999 at an estimated cost of $380 million; and the section from Yuanjiang to Mohei (163 km) is being improved into to four lanes in 1999 at an estimated cost of $638 million and for which ADB financing is being requested. The section from Mohei to Simao ( 71 km) has been recently improved and will be upgraded into a four-lane highway by 2005 at an estimated cost of $200 million; the section from Simao to Xiaomengyang (103 km) is planned for upgrading in 1999-2001 at an estimated cost of $325 million; and the section from Xiaomengyang to Mohan (190 km) is planned for upgrading in 2001-2005 at an estimated cost of $325 million. The technical and economic studies for these road segments have been determined to be well-prepared by the Yunnan Province Communication Department. Further work is required, however, for the environmental and social aspects of the project roads. Assistance for this will be provided by the Bank. D. Cross Border Movement of Goods and People in the GMS (RETA 5749) Mr. Kazuhide Usui, Programs Officer, Division III, Programs Department West, ADB, reported on the progress of the actions taken to address the issues of cross border. First, he explained a brief history of activities. The Bank approved a Technical Assistance (TA) for the Mitigation of Non-physical Barriers to Cross-Border Movement of Goods and People in the GMS in May 1996 and the Seminar on the Benefits of Acceding to International Conventions On Land Transport Facilitation was held in November 1996. Based on the results of the study and the seminar, the GMS countries agreed, at the Third Meeting of the Subregional Transport Forum in December 1996, that a two-phased approach will be taken towards the reduction of non-physical barriers to the movement of goods and people in the GMS. To achieve this objective, it was deemed necessary to familiarize all concerned national agencies, and not only those involved in transport, with issues on cross-border movements. In response to the Third Meeting, the Bank approved a Technical Assistance for Cross-Border Movement of Goods and People in 1997. Under the project, which started in January 1998, consultants visited the GMS countries to meet various agencies involved in cross-border transport, review current laws and regulations, and identify issues in need of resolution. Visits were also made to Europe-based international organizations involved in activities related to cross-border movement of goods and persons in order to learn lessons that may be applicable to the GMS. The Seminar on Land Transport Facilitation held in Bangkok from 29 April to 1 May, with assistance by ESCAP, was the first in the series of seminars to be conducted under the technical assistance to inform all concerned national officials of cross-border issues. An important component of the TA is the preparation of a draft framework agreement to serve as a model for bilateral and multilateral cross-border facilitation agreements. The final report of the TA, including the draft framework agreement, will be completed in June 1998. Mr. Usui’s presentation included highlights of the Seminar on Land Transport Facilitation held in Bangkok, including the consultant’s report, the European experience, the feedback from the participants, and the recommendation of the Seminar. Noting the complexity of issues involved in the framework agreement, the Seminar on Land Transport Facilitation recommended that the Subregional Transport Forum consider the establishment of a working group to deliberate on the draft framework agreement after it has been submitted by the consultants. The Forum agreed that a working group should be established to review the draft framework agreement after it has been submitted by the project consultants. The working group will deliberate on the issues, and identify the steps required for resolving them, with the view to finalizing the draft for endorsement by the Subregional Transport Forum to the GMS Ministerial Conference. The Bank was requested to draw up the terms of reference and composition of the working group, in consultation with the GMS countries, and to convene its first meeting by 1998 in Manila, either just prior or after the 8th Ministerial Meeting. Exchange of Views on the "Second Tier" Priority Subregional ProjectsSince the "first tier" priority subregional projects are about to be implemented, the Bank proposed to review the "second tier" projects and identify those that could be prepared for implementation. These projects are: Kunming - Lashio Road (R4); Kunming - Hanoi Road (R5); Southern Lao PDR - Sihanoukville Road (R6); the Lashio - Loilem - Kengtung Road (R7); Northern Lao PDR - Northern Viet Nam Road (R8); Northeastern Cambodia - Central Viet Nam Corridor (R9); and the Coastal Road Linking Thailand, Cambodia, and Viet Nam (R10). With regard to the last project, Viet Nam will undertake further consultations within the Government and provide feedback to the Forum. In identifying the next project or set of projects to be implemented, the Bank proposed to adopt a multi-modal corridor approach that would include various transport modes within a designated corridor. Taking this suggested approach into account, the GMS countries indicated their respective priorities for subregional projects for various transport modes, from a national perspective. On this basis, it was concluded that these priorities are basically consistent with the "second tier" projects as originally ranked, with the exception of a new proposal from Lao PDR, supported by Myanmar, to extend Route 8 to Kengtung in order to provide a direct link between Lao PDR and Myanmar. The Bank will obtain more information from the two countries regarding the proposal. The Meeting agreed to propose the Kunming Transport Corridor Project as the next priority subregional project to be implemented under the Program. This would cover the Kunming - Hanoi Road Improvement Project (R5), the Yunnan Province – Viet Nam Railway Project (RW3); and the Red River Improvement Navigation Project (W3). The Bank was then requested to provide technical assistance for upgrading the related feasibility studies. On this proposal, Viet Nam will undertake further consultations within the Government and provide feedback to the Forum. Other Regional Initiatives in the Transport SectorSince four of the GMS participating countries are members of ASEAN, it was considered useful to learn about ASEAN initiatives in the transport sector. In this context, representatives from the ASEAN Secretariat and the Malaysian Government, as the lead country for the Singapore-Kunming Rail Link Project, were invited to present their activities in the transport sector. A. ASEAN Cooperation in Transport Mr. Honorio Vitasa, Assistant Director, Bureau of Economic Cooperation of the ASEAN Secretariat, presented an information paper on the current developments on ASEAN cooperation in the transport sector. He observed that there are parallel activities under the GMS Program and ASEAN on cross-border facilitation and land transport infrastructure development and welcomed close consultation and coordination in this area. An ASEAN Framework Agreement on the Facilitation of Goods in Transit has been endorsed by senior transport officials and will be signed at the Sixth ASEAN Summit in Hanoi in December 1998. Other major ASEAN initiatives include the ASEAN Framework Agreement on Multimodal Transport, which will also be signed at the Sixth ASEAN Summit, the Harmonization of Road Transport Laws, Rules, and Regulations, and the development of the ASEAN Highway Network. The Meeting thanked Mr. Vitasa for his presentation and noted that some of the ASEAN initiatives are related to activities under the GMS Program. The Meeting urged that the related activities of ASEAN and the ADB-assisted GMS Program be closely coordinated to enhance program complementation. B. Singapore - Kunming Rail Link Project Dr. Prodyut Dutt, Principal Assistant Secretary, Ministry of Transport, Malaysia, gave a briefing on the feasibility study interim report for the Singapore - Kunming Rail Link Project, which is being conducted with funding support from the Malaysian Government. The project was endorsed by the Fifth ASEAN Summit in Bangkok in 1995 and forms an important part of the Trans-Asian Railway network that will connect Asia with Europe through PRC. ASEAN Member Countries have agreed to consider implementing the project on a consortium basis, with the participation of the private sector. The feasibility study interim report, which was submitted in March 1998, included engineering, railway, economic and environmental studies, and a survey of the required facilities. The study is considering three alternative routes for the Singapore - Kunming link, namely: Route 1# through Cambodia-Viet Nam; Route 2a, through Thailand-Myanmar; and Routes 3a to 3d through Lao PDR at various crossings. Based on initial traffic forecasts for the year 2000, Route 1# is likely to be the most viable. Further work is being done to refine these estimates and to complete the environmental studies. Since most of the routes being considered are part of the subregional railway projects under the GMS Program, the Meeting considered it desirable to coordinate closely with the Malaysian initiative to ensure that GMS and ASEAN efforts are complementary. The Meeting thanked Dr. Dutt for his briefing and suggested that close consultations be undertaken. Socio-Environmental Dimensions of Subregional Transport ProjectsThe representative of the Working Group on Environment (WGE), Mr. Xayaveth Vixay, Department of Environmental Quality Promotion and Development, Science, Technology and Environment Organization of Lao PDR, gave a presentation on the major socio-environment considerations associated with road projects including a discussion of the environmental findings of the Chiang Rai - Kunming Road Improvement Project. Among several socio-environment issues associated with road projects, four were singled out as being most important in the context of the proposed subregional road projects. These are: (i) the provision of compensation and resettlement to ensure that the affected people are not disadvantaged by the loss of their assets; (ii) involvement of stakeholders as early as possible in project development; (iii) inclusion of project elements that specifically support rural development and poverty alleviation programs; and (iv) the application of appropriate design and construction methods to mitigate direct impacts of forests, wetlands and coastal zones. Environmental findings in the proposed Chiang Rai - Kunming Road Improvement Project found a potential for negative environmental impact with the road at Luang Namtha Province bisecting a national biodiversity conservation area (NCBA) at Nam Ma and a newly proposed NCBA to the east. The link is important for allowing wildlife to move between the two forests that provide habitat to a number of endangered and threatened species. In Bokeo province, the road will also pass through another area of biodiversity importance. Measures to provide new settlements to affected ethnic groups is also needed especially for upland communities, to ensure that the benefits of the road are widespread. These initial findings indicate the need to consider taking a broader developmental view in the project approach to cover socioeconomic development and environmental conservation in areas out of the corridor to outlying lands and communities. The Meeting thanked Mr. Vixay for his presentation and took note of the environmental and social findings in the Chiang Rai - Kunming Road Project. The Meeting agreed to take these findings into account in further developing the project and to provide feedback to the Working Group on Environment at its next meeting. Statement of ObserversMr. Vitasa, ASEAN Secretariat, thanked the ADB and the Government of Lao PDR for the opportunity to attend the Meeting of the Subregional Forum and share information on ASEAN’s activities in the sector. He noted that ASEAN may be able to draw on the GMS activities in the formulation of the implementing protocols under the ASEAN Framework Agreement of Facilitation of Goods in Transit and suggested that the sharing of technical information and experience should continue to foster complementarity and avoid overlapping. He identified the development of transport infrastructure as another area of potential collaboration between the GMS Program and ASEAN. He requested ADB to consider possible support in the form of technical assistance or financing for projects in the ASEAN highway network, and the Singapore - Kunming Rail Link Project, as well as for activities that are part of program priorities under the proposed Hanoi Plan of Action, which is the first of a series of implementation plans for the ASEAN Vision 2020. Dr. Nguyen Duc Lien, Senior Project Officer, Mekong River Commission Secretariat, cited various collaborative activities between the ADB and the MRC Secretariat under the GMS Program. The MRC Secretariat has acted as coordinating agency for the East-West Transport Corridor Project and the Xe Kong/Xe San and Nam Ngum River Basin Studies. He cited the following activities of the MRC Secretariat that complement those under the GMS Program, namely: (i) a Navigation Strategy Study; (ii) the feasibility study of the Bassac entrance; and (iii) two new ferries with a capacity of 300 tons each and three rehabilitated ones for Cambodia, with financial assistance from the Government of Denmark. He thanked ADB and the Lao PDR Government for providing the MRC Secretariat with the opportunity to participate in the Meeting. Ms. Elizabeth Kilmarx, Environmental Programme Officer, United Nations Development Program (UNDP) thanked ADB and the Government of Lao PDR for the invitation to attend the Meeting. Although UNDP has moved out of the infrastructure sector, she expressed appreciation for the opportunity provided by the Meeting to acquire information about activities under the GMS Program. She encouraged coordination between the environment and transport forums in order to develop transport in a socially and environmentally sound manner. Other MattersMr. Hecker explained that the Bank has proposed a new format for collecting information that will capture, in a more systematic manner, the status of national components of subregional projects. This new format was proposed to accompany the country presentations made during the Meeting. Mr. Hecker requested the cooperation of the GMS countries in observing this format and welcomed further suggestions for its improvement. The GMS countries may contact the GMS Unit at ADB for any questions that they may have regarding the format. Date and Venue of the Next MeetingThe Thai delegation offered to host the next meeting of the STF to be held in Thailand, in the first quarter of 1999. This offer was highly appreciated by the Meeting and accepted with thanks. Closing StatementsMr. Kazu Sakai, Head of the GMS Unit, ADB noted that the Fourth Meeting of the Subregional Transport Forum has achieved its objectives. He cited the significant progress made in bringing the three "first tier" priority projects closer to implementation. He also noted that the work on cross-border facilitation is proceeding well and that the establishment on the working group to discuss the report of the consultant on the framework agreement will be an important step towards resolving the issues. The identification of the Kunming Corridor, covering various transport modes, is another important accomplishment of the Meeting. Finally, the Meeting was able to provide a good starting point for cooperation between the GMS Program and ASEAN both in the physical and non-physical aspects of infrastructure development. On behalf of the Bank, Mr. Sakai thanked all the country delegations for their participation in the Forum, the representatives from ASEAN Secretariat and the Government of Malaysia for sharing information on activities related to the GMS initiative; and the observers for their interest in the GMS Program. He also thanked the Government of Lao PDR for the hospitality and excellent arrangements made for the Meeting, and Thailand for offering to host the next meeting of the Forum. On behalf of H.E. Minister Phao Bounnaphol, H.E. Vice Minister Seune thanked all the participants for their hard work and contribution to the Meeting. He also thanked the representatives from the ASEAN Secretariat and the Malaysian Government for sharing information on ASEAN initiatives in the transport sector, as well as the observers from bilateral and multilateral agencies for their continuing interest in the GMS Program. Although significant achievements have been made under the Program, Mr. Seune reminded the Meeting of the many challenges that remain. These include resource mobilization, cross-border impediments, integrated and synchronized planning for infrastructure, and human resource capability. He expressed hope that with the goodwill and friendship among the participating countries, the momentum of the GMS Program could be sustained. Mr. Günter Hecker also thanked all the participants of the Meeting for their cooperation and contributions to make the Meeting a success.
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