GMS Sector Activities
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A GMS Senior Officials’ Meeting was held in April 2006 at the ADB Headquarters to review the progress of the GMS Ministerial Plan of Action since the 2nd GMS Summit in Kunming in July 2005. Significant progress was noted in all nine sectors of GMS cooperation, particularly in advancing the Cross Border Transport Agreement, establishing the economic corridors, promoting power trade, implementing the Core Environment Program, strengthening agriculture and HRD cooperation, and promoting tourism, trade and investments. The Meeting agreed on the need for a “brainstorming” meeting involving GMS officials and other stakeholders in order to prepare for the 3rd GMS Summit to be held in Lao PDR in 2008.
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GMS Ministers concluded their 12th meeting on Friday, 19 September 2003, with a commitment to further opening of borders, quicker project implementation, greater participation of development partners, and more private sector investment. Read the the joint ministerial statement .
In his speech, ADB Vice President for Operations Group 1, Liqun Jin, stressed the need for improved connectivity and enhanced competitiveness. GMS ministers requested ADB to continue its leading role in the GMS program. Myanmar signed the Cross-Border Transport Agreement and thus became the sixth and final member.
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A conference entitled, "Economic Cooperation and Opportunities in the
Greater Mekong Subregion Infrastructure and Private Sector Development"
was held in Washington, DC on 26 June 2003. It was co-sponsored by the ADB and
Foreign Policy magazine. Participants included representatives from the US government,
academe, research institutions and international development institutions. ADB's
Vice President Myoung-Ho Shin and Mekong Department Director General Rajat M.
Nag were among the resource speakers. GMS's strategic importance in the economic
geography of Asia was a dominant theme at the Conference. (View
the agenda of the conference)
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Mr. Khalid Rahman, Director, Infrastructure Division, Mekong Department, ADB was the keynote speaker in the session on Infrastructure of the Conference on "Business Opportunities: Mekong Region Comes of Age" held in Bangkok, Thailand on 12 June 2003. The Conference was co-organized by The Nation, Thailand's leading English-language daily, together with CNBC and the Asia News Network, an alliance of 14 leading English-language newspapers in Asia. Read Mr. Rahman's keynote speech.
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Mr. Rajat Nag, Director General, Mekong Department, ADB, was the guest speaker at the launch by American Chamber of Commerce in Singapore (AmCham Singapore) of the GMS Sub-Committee on 4 June 2003. The GMS Sub-Committee of AmCham Singapore was established to raise awareness of investment opportunities in the GMS. The launch was attended by about 50 chief executive officers and senior managers of American business firms and organizations based in Singapore.
In his presentation, Mr. Nag gave an overview of GMS economic performance, explained the GMS Program of Economic Cooperation, and highlighted opportunities for private sector participation in it. While in Singapore, Mr. Nag also appeared on CNBC TV and met the AFP and Kyodo news agencies. Read his speech.
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The Workshop on the Development of the East-West Economic Corridor (EWEC) was held in Da Nang, Viet Nam on 16-17 December 2002. The Workshop was jointly organized by the Asian Development Bank (ADB), the Ministry of Foreign Affairs of Japan, the Ministry of Foreign Affairs of Socialist Republic of Viet Nam, Japan Bank for International Cooperation (JBIC), and Japan International Cooperation Agency (JICA). Workshop participants included delegations from the EWEC countries, namely, the Lao People's Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam, and the Workshop co-organizers. Representatives from Cambodia, Indonesia, Japan, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and private sector groups from the EWEC provinces also attended the Workshop as observers.
The Workshop served as a forum for discussion among representatives of the public and private sectors in the EWEC countries, donors, and academic institutions on EWEC development. The main theme of the Workshop was on the opportunities and challenges associated with the development of the EWEC. The ADB-assisted Preinvestment Study for the Greater Mekong Subregion (GMS): East-West Economic Corridor was presented at the Workshop.
The Preinvestment Study, which was endorsed by the 10th GMS Ministerial Conference in November 2001 in Yangon, provides the framework for cooperation on an East-West Economic corridor land route spanning almost 1,500 kilometers from Mawlamyine and Myawaddy in Myanmar; Tak, Phitsanulok, Khon Kaen, and Mukdahan in Thailand; Savannakhet in Lao PDR; to Quang Tri, Thua Thien Hue and Da Nang in Viet Nam. It analyzed five major sectors (i.e., agro-industry, infrastructure, industrial estates, trade and investment, and tourism), and identified over 70 key projects, policies and initiatives that are needed to develop the Corridor.
Key findings of the Workshop include:
- The development of the EWEC will help reduce poverty in the EWEC countries. It will result in increased flows of trade and investment, development of secondary cities, regional development of remote border areas, and more efficient use of economic space including improved access of inner parts of countries to sea ports.
- The timely completion of the transport infrastructure in the EWEC is an important prerequisite to EWEC development. Governments and donor agencies concerned were urged to help expedite implementation.
- Private sector involvement, such as through the GMS Business Forum, in EWEC development was strongly encouraged. The public sector in the GMS was enjoined to create a favorable environment for private sector participation.
- Facilitation in the cross-border transport of goods and people is integral to economic corridor development. The finalization of the GMS Cross-border Agreement will help transform the East-West Transport Corridor into a full-fledged economic corridor.
- Institutional arrangements among the EWEC countries are needed to sustain EWEC development over the long term. EWEC initiatives should be incorporated in national and provincial development plans of the four Governments concerned.
The EWEC is being constructed with the assistance of many bilateral and multilateral development organizations. Key projects along the EWEC are:
- construction of the Second Mekong International Bridge
- rehabilitation of Route 9 in the Lao PDR and Viet Nam
- construction of the Hai Van tunnel
- construction of the road cum rail bridge across the Thanlwin River.
All-weather motor travel along the entire route will be possible by 2006 (see map).
The results of the Workshop were discussed at the Senior Officials' Meeting, which was held subsequently held on 18 December 2002 also in Da Nang.
For further information, kindly refer to the:
- Preinvestment Study (to order, email adbpub@adb.org)
- Connecting Nations, Linking People publication
- ADB Review (November-December 2002 issue)
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The 11th Ministerial Conference, held in Phnom Penh, Cambodia from 23-25 September, 2002, marked the 10th anniversary of the Program of Economic Cooperation in the Greater Mekong Subregion. Ministers agreed that with a strong foundation now in place for economic cooperation, and with active development partners, progress will accelerate.
H.E. Mr. Sar Kheng, Deputy Prime Minister and Co-Minister of the Interior, Royal Government of Cambodia, inaugurated the Conference by welcoming the participants. Mr. Myoung-Ho Shin, Vice President (Operations Group 1), Asian Development Bank (ADB), also made opening remarks, expressing appreciation for the fine arrangements and warm hospitality of the Royal Government, and ADB's commitment to supporting subregional economic cooperation.
The Conference was co-chaired by His Excellency Cham Prasidh, Minister of Commerce, Royal Government of Cambodia, ADB Vice President Shin. Three results were achieved:
- Provision of strategic guidance for the GMS Program;
- Strengthening participation by development partners; and
- Finalization of preparations for the upcoming GMS Summit of Leaders.
The other Ministers who participated in the Meeting were:
- H.E. Jin Liqun, Vice Minister of Finance of the People's Republic of China;
- H.E. Somphong Mongkhonvilay, Minister to the Prime Minister's Office of the Lao People's Democratic Republic;
- H.E. Brig. Gen. Lun Thi, Minister of Energy of Myanmar;
- H.E. Mr. Pitak Intrawityanunt, Deputy Prime Minister of Thailand; and
- H.E. Vo Hong Phuc, Minister of Planning and Investment of Viet Nam
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GMS Senior Officials met in ADB Headquarters on 28 January 2002 to discuss preparation for the first-ever Mekong Summit of Leaders of the six GMS States. Mr. Rajat Nag, Director General of ADB's Mekong Department, opened the Senior Officials' Meeting (SOM), and highlighted the Summit as a most fitting culminating event to celebrate the 10th year anniversary of the ADB-supported GMS Economic Cooperation Program (GMS Program). Co-chaired by H.E. Sok Chenda, Secretary General of the Council for the Development of Cambodia and Ms. Yuejiao Zhang, Deputy Director General of ADB's Mekong Department, the SOM established a Task Force to coordinate the Summit preparations, and take charge of in-country coordination. The Senior Officials also agreed that ADB will serve as the Secretariat of the Task Force. The Summit is tentatively scheduled to be held on 3 November 2002 in Phnom Penh, Cambodia.
The SOM stressed the importance of achieving concrete progress in various GMS Program initiatives prior to the GMS Summit, including the forging of a GMS-wide cross-border facilitation agreement, signing of the inter-governmental agreement on power trade, and finalization of financing and implementation arrangements for the North-South Corridor. The SOM also agreed that the Donors' Coordination will discuss improved coordination and resource mobilization, while the 11th Ministerial Conference will assess the substantive progress of key GMS Program initiatives. The SOM agreed to schedule these two events in September 2002.
The SOM also discussed the Summit format, drawing from the ASEAN and APEC experience, and recognizing the need for a special role for ADB as a major supporter of the GMS Program. The Senior Officials agreed to conduct further internal consultations on the Summit format.
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At the threshold of its tenth year, the GMS Program underwent a thorough review by senior GMS officials of the six participating countries in a meeting held last 23-24 May 2001 in Bangkok, Thailand. The GMS Mid-Term Review cum Senior Officials Meeting (MTR-SOM) took stock of present progress and identified key operational issues to be able to accelerate the implementation of major projects and initiatives. The Meeting was intended to lay the groundwork for the Tenth GMS Ministerial Meeting which is being planned for the third quarter of this year.
The GMS countries affirmed the need for a more concerted effort in addressing the most pressing challenges currently faced by the Program. These are: (i) to facilitate greater subregional integration by around 2006 by completing the implementation of key transport corridors and the region-wide cross-border facilitation agreement; power transmission interconnection to pave the way for regional power market; and a telecommunications backbone network; (ii) the need for better risk management to attract private sector financing for public sector projects in the GMS; (iii) improvements in the existing GMS institutional mechanism to cope with new roles and demands of regional cooperation; (iv) a strategic approach to the mitigation of social and environmental consequences of subregional infrastructure development; and (v) better coordination with key agencies involved in the GMS.
In order to cope with these challenges, and to promote the long-term sustainability of the GMS Program, the countries agreed that on the need for a long-term strategic framework for the GMS to guide future cooperation initiatives, together with appropriate institutional mechanisms to help achieve the specific goals at the Program and sector levels. Once the long-term strategic framework has been formulated and adopted, this could serve as the basis for preparing the GMS regional public investment program.
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The Workshop on the Preinvestment Study for the Greater Mekong Subregion: East-West Economic Corridor (EWEC) was held in Bangkok, Thailand from 13 to 14 March 2001. The Workshop was hosted by the the Office of the National Economic and Social Development Board (NESDB), in cooperation with the Asian Development Bank (the "ADB"). The objectives of the Workshop were to discuss the key findings of the Study, and establish priorities among the various proposed initiatives of the Study. The outcomes of the Workshop will serve as inputs to the planned GMS Midterm Review Meeting as well as the 10th GMS Ministerial Conference to be held sometime in 2001. The participants of the Workshop included delegations from the People's Republic of China (the PRC), Lao People's Democratic Republic (Lao PDR), Union of Myanmar, Kingdom of Thailand, and Socialist Republic of Viet Nam.
The Workshop concluded that 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. While benefits differ from one EWEC country to another, they exist for all.
In the area of physical infrastructure, there is need to expand and further improve existing facilities, many times through an expanded role of the private sector. More importantly, physical infrastructure should be seen as a "total" package that also considers the "new economy" and the impact on the final user, rather than focus on factor costs. This will also lead to the empowerment of small- and medium-sized enterprises. In trade and investment, the emphasis is on improving information systems and improving cooperation in customs in the border areas. In tourism, there was recognition of the tremendous potential of the EWEC. Marketing and packaging of the EWEC's tourism resources provide an opportunity for cooperative action. In the area of industrial estates development, there is a need for careful planning that takes into consideration the impact on the environment and agriculture, as well as rational use of scarce resources. Agriculture is recognized as a key to reducing poverty in the EWEC. The extensive linkages of agro-industry, in terms of geography and with other sectors, need to be highlighted.
Financing is a major constraint to the realization of the EWEC vision both from donor agencies and the private sector. Fiscal constraints in the EWEC countries compound this problem. More than this, however, there are other constraints/issues in the "soft" areas, such as operationalization of cross-border agreements, institutional arrangements, and operations and maintenance of physical infrastructure.
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