Regional: Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 2)

Sovereign Project | 44174-032

Summary

At the 16th Ministerial Conference in Hanoi, Viet Nam in August 2010, the GMS Ministers endorsed a GMS Transport and Trade Facilitation Action Program (TTF AP) for 2011-2016, viewed as essential to promoting GMS competitiveness and accelerating transformation of transport corridors into economic corridors. Given the TTF APs importance, the Ministers requested ADB to facilitate its implementation as the lead development partner for TTF. Subsequently, ADB approved the Regional Policy and Advisory Technical Assistance Cluster (C-R-PATA) on Support for Implementing the Action Plan for Transport and Trade Facilitation in the GMS on 26 November 2010 in an aggregate amount not exceeding the equivalent of $5,700,000 to be financed by the Government of Australia and administered by the ADB. Implementation of the C-R-PATA is to be undertaken in phases through 3 subprojects (SPs). SP1 was approved on 29 August 2011 and completed in 31 July 2014.

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Project Name Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 2)
Project Number 44174-032
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Industry and trade - Trade and services
Gender Equity and Mainstreaming Some gender elements
Description

At the 16th Ministerial Conference in Hanoi, Viet Nam in August 2010, the GMS Ministers endorsed a GMS Transport and Trade Facilitation Action Program (TTF AP) for 2011-2016, viewed as essential to promoting GMS competitiveness and accelerating transformation of transport corridors into economic corridors. Given the TTF APs importance, the Ministers requested ADB to facilitate its implementation as the lead development partner for TTF. Subsequently, ADB approved the Regional Policy and Advisory Technical Assistance Cluster (C-R-PATA) on Support for Implementing the Action Plan for Transport and Trade Facilitation in the GMS on 26 November 2010 in an aggregate amount not exceeding the equivalent of $5,700,000 to be financed by the Government of Australia and administered by the ADB. Implementation of the C-R-PATA is to be undertaken in phases through 3 subprojects (SPs). SP1 was approved on 29 August 2011 and completed in 31 July 2014.

Given the lessons learned under SP1 and a refined scope to support the remaining TTF issues and challenges, ADB and the Australian Government agreed to combine the SP2 and SP3. The SP2 was approved on 28 October 2014 and will cover the remaining timeframe period of 31 October 2014 through 31 December 2016. The SP2 therefore would constitute as the final phase of the Cluster TA. The refined scope of SP2 incorporates the feedback from extensive consultations with country counterparts and development partners supporting TTF initiatives

Project Rationale and Linkage to Country/Regional Strategy The GMS TTF-AP comprises a broad spectrum of initiatives in three areas: (i) transport facilitation; (ii) trade facilitation; and (iii) and capacity building and institutional reform. Based on the MTR of SP1, feedback from country-level consultations as well as the recommendations contained in GMS Sector Report on Transport and Related Services (Transport Sector Report), SP2 will address the following issues: (i) strengthening Transit Operations; (ii) Expanding Transport Rights and Traffic Rights; and (iii) Developing subregional trade logistics systems for more competitive services.
Impact More efficient land-based trade within the GMS, leading to increased volumes of subregional trade along select corridors
Project Outcome
Description of Outcome

(i) Faster, easier, cheaper, and more inclusive cross-border transport and trade;

(ii) Improved coordination between national, subregional, regional and multilateral commitments and activities, with particular focus on customs transit

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

2. Expanding transport rights and traffic rights

2.1 Mapping Completed for harmonized bilateral and trilateral transport agreements

2.2 Cross-border traffic rights expanded and routes extended

2.3 Road usage charge scheme designed

3. Developing subregional trade logistics systems for more competitive services

3.1 Private sector transport operators and logistics services supported in CLMV

1. Strengthening Transit Operations

1.1 CLMV countries are better prepared to implement a GMS Electronic Customs Transit System (eCTS)

1.2 GMS transit and inland customs clearance procedures are aligned with international best practices

1.3 Coordinated risk management and subregional Authorized Transit Traders Scheme is developed

1.4 Second Joint Customs inspection is piloted

Status of Implementation Progress (Outputs, Activities, and Issues)

1.1 CLMV countries are better prepared to implement a GMS Electronic Customs Transit System (eCTS)An introductory workshop on preparations to implement the ASEAN Customs Transit System (ACTS) with the Myanmar Department of Customs was held in Yangon on 19-20 February 2015. A detailed presentation of the ACTS was given as well as an overview gained of Customs automation as part of the planned new Myanmar Automated Cargo Clearance SYSTEM (MACCS), based on Japan's NACCS and NCIS systems, with financial support from JICA. The main output of the workshop was an agreement on a draft 2015-2016 action plan, which will be developed further to cover IT aspects (along the East-West Economic Corridor or EWEC), customs procedures and training to help Myanmar adopt the ACTS early in 2017, following completion of the North-South demonstration project between Singapore, Malaysia and Thailand.

Similar activities will be held in the other 3 countries which are planned as follows: (i) 4- 5 May 2015, Phnom Penh, Cambodia; (ii) 7- 8 May 2015, Hanoi, Vietnam; (iii) 11- 12 May 2015, Vientiane, Lao PDR.

1.2 GMS transit and inland customs clearance procedures are aligned with international best practices

Work will be undertaken to table draft amendments to the 1999 GMS Cross Border Transport Facilitation Agreement (CBTA) to align the transit arrangements under the CBTA with those of the ACTS, commitments made under the WTO Trade Facilitation Agreement (TFA), and current international best practice. The CLMV have been involved in these discussions.

1.3 Coordinated risk management and subregional Authorized Transit Traders Scheme is developed

The project is currently mapping relevant Development Partners-funded activities in relation to risk management (RM) and has collected information on CLMV's relevant planned IT System and compliance program. These will be taken into consideration in the development of a subregional approach to RM including the planned Authorised Transit Traders (ATT) system as part of the ACTS, with RM one of the subjects discussed under Output 1.

1.4 Second Joint Customs inspection is piloted

Support will be given in the review of the experiences of Lao PDR and Vietnam in implementing Single Stop Inspection as part of their co-ordinated border management (CBM) initiatives at the Lao Bao-Dansavanh border along the East West Economic Corridor. Subsequently, support will also be given to Myanmar, Thailand, Cambodia and Vietnam to develop a CBM demonstration project at the (i) Moc Bai Bavet; (ii) Mukdahan-Savanakhet; and (iii) Myawaddy-Maesot border crossing along the Southern GMS Corridor, with the first in a series of joint meetings and site visits tentatively scheduled for May 2015.

2.1 Mapping Completed for harmonized bilateral and trilateral transport agreements

Consolidation of all the (draft) transport agreements has been completed. Mapping of these agreements are currently being undertaken with a view to develop a common template to promote a more coordinated subregional approach to transport sector liberalization. In the case of tripartite or plurilateral agreements, they should also, necessarily, align with ASEAN arrangements for transit transport.

The template would serve as reference in deliberating new transport agreements and/or review existing agreements.

2.2 Cross-border traffic rights expanded and routes extended

A request has been received to facilitate the conclusion of traffic rights agreements between Myanmar and all three of its geographical neighbors, i.e. Thailand, Lao PDR and PRC.

The TA will also be looking at supporting the deliberation of the trilateral Thailand-Lao PDR- PRC transport agreements as well as the revision to Cambodia-Thailand Transport agreement to increase the number of quota.

The proposed agreements are currently under legal and technical review.

2.3 Road usage charge scheme designed

Lao PDR has an extensive road network and as a transit country faces road maintenance charges many times higher than those of its ASEAN neighbors (as a percentage of both population and GDP). Consultation with the relevant government officials in Lao PDR has been conducted in the development of the road usage charge scheme for Lao PDR. The relevant experts will be mobilized to review the current situation in Lao PDR, identify international best practices, complete some basic financial modelling, draft recommendations and organize the national workshop

3.1 Private sector transport operators and logistics services supported in CLMV

Support will be offered to CLMV as required to help the country develop its respective national transport and logistics strategy (complementary to work being undertaken by the World Bank and/or other relevant DPs) as well as to private sector operators looking to develop their cross border operations and prepare for the ACTS, including matters related to permits, guarantees and insurance.

As a related activity, ADB in close collaboration with the Australian Government Department of Foreign Affairs and Trade, organized the Second GMS TTF DP meeting on 12-13 March 2015 in Bangkok, Thailand. The Meeting was attended by representatives from the ASEAN Secretariat, European Union (EU), USAID, Japan International Cooperation Agency (JICA) Myanmar and Lao PDR, the World Bank (WB), UNESCAP and World Customs Organization Asia Pacific Regional Office for Capacity Building (WCO ROCB/AP). The DPs exchanged information on the progress of support to TTF. DPs also exchanged views on the possible development of a common monitoring and evaluation tools used for TTF support. The meeting also discussed the draft GMS TTF Partnership Program which DPs agreed to update regularly.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A group of individual consultants (and firms as appropriate) will provide the advisory, technical, and administrative support services. It is estimated that it will require a total of 81 person-months of international consultants and 82 person-months of national consulting services. Detailed consultant terms of reference will be developed in the course of implementation.
Procurement Some office, telecommunication and transport equipment will be procured.
Responsible ADB Officer Kanya S. Sasradipoera
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SERD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance -
Fact Finding 17 Jun 2013 to 22 Jun 2013
MRM -
Approval 28 Oct 2014
Last Review Mission -
Last PDS Update 30 Mar 2015

TA 8748-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Oct 2014 - 28 Oct 2014 31 Dec 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 0.00 0.00 0.00 0.00 0.00 28 Oct 2014 194,088.82

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