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Regions and Countries Regional Cooperation Regional Cooperation Initiatives Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Sixth Meeting of the Subregional Transport Forum (STF-6)
Sixth Meeting of the Subregional Transport Forum (STF-6)IntroductionThe Sixth Meeting (the Meeting) of the Subregional Transport Forum (the STF) was held in Vientiane, Lao People's Democratic Republic (Lao PDR) from 17 to 18 May 2001. The Meeting was hosted by the Government of Lao PDR, with the assistance of the Asian Development Bank (ADB). The countries of the Greater Mekong Subregion (GMS) and the ADB expressed their appreciation to the Government of Lao PDR for the hospitality, organization, and assistance provided to the Meeting. The objectives of the Meeting were as follows: (i) to maintain the momentum of cooperation in the transport sector in the GMS; (ii) to advance specific subregional initiatives in the transport sector; and (iii) to reinforce as well as focus the subregional consultative process. The Meeting Agenda is attached as Appendix 1. The participants of the Meeting included delegations from the Kingdom of Cambodia, the People's Republic of China (PRC), Lao PDR, Union of Myanmar, Kingdom of Thailand, and the Socialist Republic of Viet Nam, and representatives from the ADB. A representative from the Association of Southeast Asian Nations (ASEAN) Secretariat attended the Meeting as observer. The list of participants is attached as Appendix 2. The Meeting was chaired by Mr. Math Sounmala, Director General of Cabinet, Ministry of Communications, Transport, Post, and Construction (MCTPC), Lao PDR. Mr. Tadashi Kondo, Manager, Transport and Communications Division (West), ADB co-chaired the Meeting. Opening SessionHis Excellency Mr. Khamlouat Sidlakone, Deputy Minister, MCTPC, welcomed the participants of the Meeting and expressed his appreciation to the representatives of the GMS countries for their participation. He noted that the Lao Government, recognizing the importance of economic cooperation in the GMS to the socioeconomic development of Lao PDR, has fully supported and actively participated in the GMS program. Cooperation in the transport sector is complementary to the Lao Government's thrust of addressing its landlocked status. Mr. Khamlouat expressed the hope that the STF would address the many obstacles faced in the timely implementation of GMS activities. He underscored the importance of achieving progress in addressing the nonphysical barriers to the cross-border movement of goods and people in the GMS. In this regard, he welcomed the intention of Cambodia to adopt the cross-border framework agreement. He concluded by appealing to the international donor community to assist in the implementation of priority GMS transport corridor projects. In his Opening Statement, Mr. Tadashi Kondo, ADB, thanked the Government of Lao PDR for hosting the Meeting and the excellent arrangements made. He noted that the STF has achieved its purpose of serving as an advisory forum that will develop opportunities for extended cooperation in the transport sector in the GMS. It has facilitated the implementation of priority subregional transport projects by providing a venue for addressing issues related to both the hardware and software aspects of these projects. Mr. Kondo indicated that the key strategy for the transport sector under the GMS Program is to support the establishment of both physical and nonphysical linkages among the GMS countries. The medium-term (2001-2003) strategic thrusts of the GMS Program in the transport sector involve: (i) ensuring timely implementation of high-priority subregional road projects, (ii) assisting in the finalization and implementation of cross-border facilitation agreements among the GMS countries, and (iii) facilitating the transformation of GMS transport corridors to economic corridors. Finally, he underscored the importance of the development of the transport sector in reducing poverty in the GMS by providing increased access to markets and economic opportunities. In his Opening Statement, Mr. Toru Tatara, ADB provided an overview of the GMS Program, including a summary of the progress achieved so far as well as the Program's key strategic thrusts. The implementation of several priority subregional projects is either ongoing or completed, with overall investment amounting to some $2 billion. Mr. Tatara noted, however, that project implementation over the past few years has slowed down. This development can be attributed to various factors, which include the effects of the Asian financial crisis, the complex nature of subregional projects, and weak institutional capacity of implementing agencies. The GMS countries have adopted key strategic thrusts, namely: (i) opening of borders; (ii) economic corridor development; (iii) formulation of strategic environment framework; and (iv) refocusing the GMS Program for poverty reduction. To operationalize these strategic thrusts, ADB has prepared a GMS Program Assistance Plan which includes a pipeline of nine priority subregional projects amounting to about $456 million, and project preparation and advisory activities amounting to some $14 million. Country Presentations on Ongoing Transport Development ActivitiesThe GMS delegations presented their respective country reports that provided an update of ongoing development activities in the road, rail, water transport, and air transport subsectors, particularly those included in the list of priority GMS transport projects. Presentations were made by the following participants: (i) Mr. Ung Chung Hour, Director, Land Transport Department, Ministry of Public Works and Transport and Mr. Vasim Soriya, Director of Planning, Ministry of Public Works and Transport, Cambodia; (ii) Mr. Zhang Wen, Deputy Division Chief, Comprehensive Planning Department, Ministry of Communications, PRC; (iii) Mr. Math Sounmala, Director General of Cabinet, MCTPC, Lao PDR; (iv) U Hla Myint Thein, Director, Directorate of Water Resource and Improvement of River System, Ministry of Transport, Myanmar; (v) Mr. Pichien Charoenkolakit, Director, Location and Design Bureau, Department of Highways, Ministry of Transportation and Communications, Thailand; and (vi) Mr. Pham Thanh Tung, Deputy Director, International Relations Department, Ministry of Transport, Viet Nam. A summary of the status of high-priority GMS transport initiatives is provided in Appendix 3. These subregional initiatives are as follows: (i) Bangkok-Phnom Penh-Ho Chi Minh City Road Improvement Project, (ii) Thailand-Lao PDR-Viet Nam East-West Transport Corridor, (iii) Chiang Rai-Kunming via Lao PDR Road Improvement Project, (iv) Kunming-Hanoi-Haiphong Multimodal Transport Corridor Project, (v) Mitigation of Nonphysical Barriers to the Cross-Border Movement of Goods and People in the GMS, and (vi) Upper Lancang/Mekong River Quadripartite Commercial Navigation Agreement. The Meeting noted the progress made since the Fifth Meeting of the STF held in Bangkok, Thailand in the implementation of national sections/components of other priority GMS transport projects, namely: (i) R4: Kunming-Lashio Road System Improvement Project; (ii) R6: Southern Lao PDR-Sihanoukville Road Improvement Project; (iii) R7: Lashio-Loilem-Kengtung Road Improvement Project; (iv) R10: Southern Coastal Corridor Project (Thailand-Cambodia-Viet Nam); (v) RW3: Thailand-Cambodia-Viet nam Railway Project; (vi) W1: Upper Lancang/Mekong River Navigation Improvement Project; and (vii) A6: Project to Establish New Subregional Air Routes. The Meeting noted the following highlights of the country presentations: (i) Cambodia's expression of its desire to become a party to the Trilateral Cross-Border Agreement; (ii) expression of willingness by Lao PDR, Thailand, and Viet Nam to consent to Cambodia becoming a party to the Trilateral Cross-Border Agreement; (iii) high priority accorded by Cambodia to the improvement of National Road No. 6 from Siem Reap to Poipet and the establishment of the railway link between Poipet and Sisophon that forms part of the proposed Singapore-Kunming Railway Link; (iv) high priority accorded by some GMS countries to R10: Southern Coastal Corridor Project; (v) high priority accorded by some GMS countries to the development of the Singapore-Kunming Railway Link Project; (vi) expression of willigness from PRC and Thailand to fully support the improvement of the Lao section of the Chiang Rai-Kunming Road Improvement Project once the issue concerning the public/private concession is successfully resolved; (vii) private sector participation in the development of national sections in Myanmar of priority GMS road projects; and (viii) establishment of new air linkages within the GMS. On the Singapore-Kunming Railway Link (SKRL) Project, Mr. Honorio Vitasa, Assistant Director, Bureau of Economic Cooperation, ASEAN Secretariat conveyed the request of the ASEAN land transport officials for ADB to provide technical assistance for the Project's implementation. Status of Subregional Transport ActivitiesIn his presentation, Mr. Thomas F. Jones, III, Senior Project Economist, ADB, summarized the major GMS transport projects and activities based on information obtained from ADB as well as those made available in the country reports. The status of these subregional transport initiatives is also provided in Appendix 3. The Meeting agreed on the need to develop and maintain a database system that will regularly monitor developments in priority subregional transport initiatives in the GMS. It was agreed to consider possible mechanisms by which information could be provided by the GMS focal points in the transport sector to ADB, including the use of the e-mail system provided to the countries as part of the ADB regional technical assistance to prepare the annexes and protocols. ADB will coordinate with the GMS focal points in the transport sector to identify the mechanism to implement this database monitoring system for GMS transport projects. Agreement for Facilitation of the Cross-Border Movement of Goods and PeopleMr. Bruce Winston, Mr. Kristiaan Bernauw, and Mr. John McPherson, Consultants to ADB, presented the results of their work on the preparation of annexes and protocols for the Agreement for Facilitation of the Cross-Border Movement of Goods and People. The consultants began by introducing their work during their present ADB technical assistance project, in which they have been asked to assist in the finalization of various agreements to facilitate the cross-border movement of goods and people between and among GMS countries. While the signing of the Trilateral Agreement in Vientiane in November 1999 was an important first step in this direction, its implementation requires a number of annexes and protocols, some of which are detailed and complex. Accordingly, in the period from October 1999 to August 2000, the consultants worked under the current TA to draft these implementing annexes and protocols. The consultants proceeded to introduce these annexes and protocols to the Meeting, namely:
(ii) Annex 2: Registration of Vehicles in International Traffic; (iii) Annex 3: Carriage of Perishable Goods; (iv) Annex 4: Facilitation of Frontier Crossing Formalities; (v) Annex 5: Cross-Border Movement of People; (vi) Annex 6: Transit and Inland Customs Regime; (vii) Annex 7: Road Traffic Regulation and Signage; (viii) Annex 8: Temporary Importation of Motor Vehicles; (ix) Annex 9: Criteria for Licensing of Transport Operators; (x) Annex 10: Conditions of Transport; (xi) Annex 11: Road and Bridge Design and Construction Standards and Specification; (xii) Annex 12: Border Crossing and Transit Facilities and Services; (xiii) Annex 13a: Multimodal Carrier Liability Scheme; (xiv) Annex 13b: Criteria for Licensing of Multimodal Operators for Cross-Border Transport Operations; (xv) Annex 14: Container Customs Regime; (xvi) Annex 15: Commodity Classification System; (xvii) Protocol 1: Designation of Corridors, Routes, and Points of Entry and Exit (Border Crossings); (xviii) Protocol 2: Road User Charges for Transit Traffic; and (xix) Protocol 3: Frequency and Capacity of Services (Quotas) and Issuance of Permits. The consultants' presentation on each annex and protocol was followed by questions and comments. Among the topics and issues addressed in this discussion were the following:
(ii) Annex 2: appropriate distinguishing signs of vehicles in international traffic for specific countries; (iii) Annex 3: whether the annex applies only to goods and people carried by motor vehicles (or whether it might apply, e.g., to animals moving under their own motive power), the nature of the agreement and annexes and protocols as a transport facilitation agreement as opposed to a trade agreement, the relation of national law to these agreements; (iv) Annex 4: possible problems with Article 7 (second sentence) referring to primacy of the English-language version in the event of a difference in meaning between respective national languages and the need to upgrade language proficiency at the borders; (v) Annex 5: appropriate duty-free allowances (e.g., with respect to pet animals), official publication of daily SDR rates, need for involvement of different ministries, whether driving licenses need to be in the English language; (vi) Annex 6: simplification of the TIR Convention following the suggestion of the Third Subregional Transport Forum held at Kunming calling for a gradual approach to adoption of UN transport facilitation conventions, use of the word "visa" in the annex; (vii) Annex 7: possibility of extending the four-year transition period in Article 2(b); (viii) Annex 8: the requirement for a national issuing and guaranteeing organization, mandatory insurance requirement (which is addressed in Article 16 of the Trilateral Agreement itself); (ix) Annex 9: issuance of license by national (as opposed to supranational) bodies, official publication of daily SDR rates; (x) Annex 10: need to broaden the language in Article 1(a) referring to "antitrust restrictions" to "competitive distortions", possible need to allow for future amendment of Article 8(b) to index the ceiling on compensation as fixed in SDR; (xi) Annex 11: advantage of consistency with ASEAN and Asian highway standards, need for revised pavement standard parameters, need to seek opinion of the People's Republic of China; (xii) Annex 12: possibility of phasing in requirements regarding border crossing and transit facilities and services over a period of time, need to list weighing equipment for trucks under Future Equipment; (xiii) Annexes 13a and 13b: need to assure consistency with ASEAN Multimodal Transport Agreement (or to simply use the ASEAN Agreement as an alternative to this annex), need to seek opinion of the People's Republic of China; (xiv) Annex 14: none; (xv) Annex 15: none (the ASEAN Agreement on Customs calls for the Harmonized System and the People's Republic of China applies it already); (xvi) Protocol 1: need to develop a process to identify border crossings and corridors/routes, whether loading and unloading places should be specified (it was stated that this may be difficult), need to delete the word "border" in the title, possible need to split the matrix between passengers and freight and between interstate and transit transport; (xvii) Protocol 2: meaning of the word "cost", need to take fairness considerations into account, need for a solid working example for calculation of road user charges (to be provided by an ADB TA in relation to the East-West Transport Corridor); and (xviii) Protocol 3: none. While the purpose of the discussion was to provide an introductory presentation, in the process of finalizing annexes it will be necessary to decide on specifics. Discussion also proceeded on the process of reaching agreements on annexes and protocols. The consultants put forward the following process as a starting point for discussion: (i) each country to establish National Working Group(s) under the leadership of the responsible ministry - all under the "National Transport Facilitation Committee" in the words of the Trilateral Agreement ("National Transit Transport Coordinating Committee" in ASEAN parlance) or any such similar arrangements; (ii) international focal point named in each country (overall and perhaps also by annex and protocol); (iii) email communication among the countries (and with ADB and its consultants) leading to clarifications and ultimately a broad consensus on specific annexes and protocols; (iv) after achievement of a broad consensus relating to a series of annexes and/or protocols, concerned National Working Group(s) under the auspices of the "Joint Committee" in the words of the Trilateral Agreement ("Transit Transport Coordinating Board" in ASEAN parlance) to finalize drafts; and (v) final approval and signature by concerned Ministers (e.g., Transport, Finance, Agriculture). The Meeting noted the state of preparedness of the GMS countries in terms of undertaking the process of reaching agreements on the annexes and protocols: (i) For Viet Nam, a technical team headed by the Deputy Minister of Transport has been established to deal with issues related to the cross-border agreement, including annexes and protocols, and to help formulate national policies to implement the agreement. The technical team will assign the national working groups. The international focal point will be the Ministry of Transport. E-mail connection has been established. (ii) For Thailand, national working groups will be established and the international focal point will be the International Affairs Division of the Ministry of Transport and Communications. E-mail connection has been established. (iii) For Myanmar, the establishment of the national transport facilitation committee is under study. The international focal point will be the Ministry of Rail Transportation. The fax number of the focal point has been provided to ADB. (iv) For Lao PDR, the national transport facilitation committee was established three years ago comprising representatives from the relevant ministries and agencies, and the private sector. A secretariat to the committee is in place. E-mail connection has been established. (v) For the PRC, the draft Quadrilateral Agreement and the draft annexes and protocols have been translated into the Chinese language. These documents will be reviewed by the relevant ministries and agencies, including Yunnan Provincial Government authorities for possible consideration. (vi) For Cambodia, the Ministry of Public Works and Transport (MPWT) has submitted the draft to the Cabinet on the establishment of National Transport Committee to be chaired by the Director General of MPWT and comprising representatives from relevant ministries and the private sector. The international focal point is MPWT. E-mail connection has been established. The Meeting agreed that further suggestions on prioritization of the draft annexes and protocols, including the process of reaching agreements thereon, could be communicated directly to ADB and copied to other members of the STF. It was suggested that a meeting among GMS transport officials be convened immediately before the next GMS Ministerial Conference to further discuss the annexes and protocols, including a comparison of the ASEAN and GMS agreements and a timetable for reaching agreements. In order to avoid the potential problems that may be created in having two sets of rules created by the GMS and ASEAN cross border agreements, the Meeting agreed on the need for close cooperation between the GMS Program and ASEAN Secretariat in the preparation/finalization of annexes and protocols. The Meeting further agreed that the ADB consultants should carefully examine the similarities and differences between the GMS and ASEAN cross-border agreements, and explore areas where there could be closer coordination/cooperation between the GMS Program and the ASEAN Secretariat in this area. Recognizing the progress achieved by the ASEAN in reaching cross-border land transport facilitation agreements, the Meeting requested Mr. Honorio Vitasa, ASEAN Secretariat, to make a presentation on the process of reaching agreements, including annexes and protocols. Mr. Vitasa briefed the Meeting on the status of cooperation programs in the facilitation of transport and development of transport infrastructure in ASEAN, and on the related outcomes of the Fourth ASEAN Informal Summit in Singapore in November 2000. The Singapore Summit placed strong emphasis on strengthening transport linkages in ASEAN through, among other things, the SKRL Project, the Bangkok-Kunming via Lao PDR Highway Project, and the Upper Lancang/Mekong River Commercial Navigation Agreement. He also informed the Meeting that the ASEAN Leaders endorsed the broad thrust of the SKRL's feasibility study and directed that the Project be moved forward. Ms. Clare Wee, Senior Counsel, Office of the General Counsel, ADB, made a presentation on the necessary next steps for Cambodia's accession to the Trilateral Agreement. The Meeting agreed on the following steps to be executed simultaneously during the 10th GMS Ministerial Conference scheduled in August 2000: (i) Signing of the Amendment; and (ii) Signing of the Instrument of Accession by Cambodia (four original copies). The proposed Amendment mentioned in item (i) above will cover, among other things, opening the Trilateral Agreement for accession by any country in the GMS, and separating the process of signing, ratification, and entry into force of the agreement from the process of signing, ratification, and entry into force of the Annexes and Protocols. It was agreed that each participating country would complete the necessary internal preparations, if necessary, to facilitate the signing of the Amendment during the 10th GMS Ministerial Conference scheduled in August 2000. The Chairperson underscored the need for these internal preparations. It was further agreed that the ratification/acceptance process necessary to enable the agreement to enter into force would be, thereafter, undertaken by each country. The Meeting agreed that ADB should officially send the draft Amendment and the Instrument for Cambodia's accession to the GMS Governments for the latter's consideration. A modification of the draft Amendment was made and agreed upon by the Meeting in order to address the concerns raised by the PRC delegation as regards the proposed amendment in the title of the Trilateral Agreement. Exchange of Views on Other Priority Subregional Transport ActivitiesMr. Myo Thant, Senior Regional Cooperation Economist, Programs Department (West), Division III, ADB made a presentation on the outcome of the Preinvestment Study for the East-West Economic Corridor (EWEC). The vision for the development of the EWEC is to stimulate the growth of participating areas and raise their incomes. This will be achieved through a dynamic process that facilitates the efficient exploitation of underlying complementarities and developing a range of competitive advantages that will enhance overall competitiveness. EWEC development will be facilitated once transport infrastructure improvements are put in place. Developments will occur across the entire Corridor, but will concentrate on the borders and enclaves. The potential benefits of economic corridor development include: (i) promoting economic growth; (ii) facilitating regional development; (iii) utilizing economic space efficiently; and (iv) utilizing historical road. Economic activity is expected to be clustered in "nodes" or geographically-specified areas. The presentation discussed the implications of the Corridor on the transport sector. Road, rail, air, and port requirements were discussed. The presentation also discussed the following policy issues: (i) the need for planning; (ii) allocation of costs and benefits; (iii) adequate operation and maintenance funds; and (iv) private sector management and ownership of transport facilities. Complementary progress on customs and immigration services was needed and the telecommunications industry also needs to be developed. The Cambodian delegation expressed concern that the EWEC development, and the GMS Program, in general, did not appear to benefit the Cambodians. In particular, they expressed concern regarding the cost-benefit sharing of subregional projects. The delegation also noted the need to ensure uniformity of road standards among participating countries in a subregional project. Finally, the delegation proposed that ADB strengthen coordination and communication between and among ADB and the GMS countries. Work Program and Next StepsThe Meeting agreed on the need to expedite the implementation of the following high priority subregional transport initiatives: (i) Chiang Rai-Kunming via Lao PDR Road Improvement Project; (ii) Kunming-Hanoi-Haiphong Multimodal Transport Corridor Project; (iii) Upper Lancang/Mekong River Commercial Navigation Agreement; and (iv) Southern Coastal Corridor Project. The following are the next steps involved in these three high-priority initiatives:
(i) Chiang Rai-Kunming via Lao PDR Road Improvement Project: (ii) Kunming-Hanoi-Haiphong Multimodal Transport Corridor Project (iii) Upper Lancang/Mekong River Commercial Navigation Agreement (iv) Southern Coastal Corridor Project The Thai delegation reconfirmed the request made by the Ninth GMS Ministerial Conference for assistance from ADB in implementing developments associated with the Upper Lancang/Mekong River Commercial Navigation Agreement. These developments include installation of navigation aids, procurement of patrol and rescue boats, ports and other related facilities, and human resource development. The Thai delegation further noted that these navigation channel improvements might result in serious environmental, social, and resettlement problems. For this reason, the Thai delegation requested assistance from ADB in the conduct of comprehensive enviromental, social, and resettlement evaluation for these proposed developments. AcknowledgementsThe GMS countries and the ADB expressed their sincere thanks and appreciation to the Government of Lao PDR, in particular, the Ministry of Communications, Transport, Post, and Construction, for the warm hospitality, excellent arrangements, and tremendous assistance provided to the Sixth Meeting of the Subregional Transport Forum.
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