Countries and Regions

	Table of Contents
p. 4 of 20 BACK | NEXT I. Introduction II. Background and Rationale III. Economic and Social Trends IV. Program Review - Lessons Learned V. Strategic Directions of the GMS Program for 2001-2003 VI. Sector Properties and Proposed Program for 2001-2003 VII. ADB's Operational Program VIII. Coordination with Donor Agencies and Regional Institutions IX. Cofinancing and Catalyzing External Resources

GMS Assistance Plan

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IV. Program Review – Lessons Learned

22. An Impact Evaluation Study of the ADB’s GMS Program³ (the Study) was conducted in 1999 to assess the relevance and efficiency of the ADB’s assistance to the GMS Program and to draw important lessons. An important observation of the Study was that the GMS Program’s pragmatic and activity-based approach to cooperation, compared with the rules-based approach of other regional cooperation schemes, has proven effective in generating early and tangible results. Continued progress in priority subregional projects have contributed to the Program’s momentum through the years. There has been sustained and vigorous participation of the GMS countries in the GMS Program and its meetings, which attest to their continuing support of the Program. The Study concluded that the participating countries, on the whole, have expressed satisfaction with the GMS Program.

23. The uncertainties surrounding the relationships among the GMS countries at the inception of the GMS Program in 1992 required flexibility in the design and selection of priority projects for cooperation. It was important to maximize benefits as opportunities arose; it was also important to achieve immediate results and avoid difficult and sensitive cross-border issues. This gradual approach eventually paid off as the GMS countries became more confident in their relationships. Recent years have seen the progress of real dialogue among these countries as attested by their agreements to reduce barriers to the cross-border movement of goods and people, and a commitment to eliminate these barriers through a GMS-wide Framework Agreement by 2005.

24. While the GMS Program’s pragmatic and results-oriented approach has been beneficial, a shared vision of the long-term development of the subregion is important. This vision should be accompanied by a medium-term strategy that will link the GMS Program closely to the ongoing process of economic restructuring and reform in individual countries so that economic growth could be sustained. The medium-term strategy should address key issues such as the mobilization of financial and technical resources, integration of subregional projects with national priorities, private sector development, harmonized investment promotion strategy, environmental protection and improved coordination with other regional initiatives. Strong commitment and adequate institutional capacities on the part of the GMS governments will be required to carry out the vision and the strategy for the GMS.

25. The experience with implementation of subregional projects within the framework of the GMS having started only in 1994, is rather limited. Out of 10 loan projects under the GMS Program assisted by the ADB so far, six are national projects with subregional dimensions. The implementation of subregional infrastructure projects involving two or more countries started only in December 1998 with the groundbreaking for the Phnom Penh-Ho Chi Minh City Road Project which is financed by the ADB under two separate loans for Cambodia and Viet Nam. This was followed by the East-West Corridor Project linking Lao PDR, Thailand, and Viet Nam which was approved by ADB in December 1999.

26. The experience in the design and packaging of these two projects have taught important lessons. In both cases, delays in reaching an agreement to facilitate cross-border movement of goods and people caused a corresponding delay in project implementation. The important lesson learned from this experience is that subregional policy dialogue for maximizing the benefits of infrastructure projects should commence as early as the project preparatory stage to avoid undue delays.

27. At the project level, weak capacity in monitoring project implementation in energy projects—such as the Theun Hinboun Hydropower Project—has been observed. Both inadequate assessment of the social and environmental impacts and weak monitoring capacity of the executing agencies caused problems during implementation. As a result, negative social and environmental impacts, which had been unforeseen during the processing stage, were reported. While the executing agencies assisted by ADB prepared a comprehensive mitigation and compensation plan, the situation provided an opportunity for NGOs to criticize the projects.

28. The lessons learned from these projects urged ADB to take more proactive measures for ensuring that social and environmental issues are addressed as early as possible in the planning process, that enough resources are provided to adequately assess social and environmental impacts during project design, and that strong monitoring and evaluation of the social and environmental consequences of subregional infrastructure projects are undertaken. It also underscored the urgent need for improved consultation with stakeholders, starting from the planning and design stage of the projects. On this issue, ADB has been vigorously exploring ways of working with NGOs and local communities to involve them in detecting problems at an early stage. These key actions, especially early consideration of potential social and environmental impacts and public consultation, can oftentimes help to avoid impacts through changes in project design, rather than trying to mitigate impacts as they occur.

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