44174-032: Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 2) | Asian Development Bank

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

Sovereign (Public) Project | 44174-032 Status: Active

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.

 
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
Cambodia
Lao People's Democratic Republic
Myanmar
Viet Nam
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8748-REG: Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 2)
Government of Australia US$ 3.70 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Trade and services

Transport / Multimodal logistics

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 Japans 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 were held in the Phnom Penh, Cambodia, on 4-5 May 2015; and Vientiane, Lao PDR on 11-12 May 2015.

The second round of technical discussion on the ACTS was completed in October-November 2016 as follows: 12-15 October in Vientiane; 19-22 October in Hanoi; 9-12 November in Phnom Penh; and 16-19 November in Yangon. In this discussions, the ACTS technical and functional specifications, ACTS documentation, and hardware and software requirements were presented, together with a live simulation (for Customs, other government agencies and the private sector) of the European NCTS system on which the ACTS is based. Also, technical discussion was completed in Kunming, PRC on 17 March 2016.

The gap analyses (for business processes, IT and legal systems) in CLMV and Output 1 work plans / budgets for a full range of ACTS preparation activities with Customs, OGAs and the private sector for implementation in 2016 were also completed.

A series of follow up discussions on the work plan was conducted with the CLMV countries in June July 2016, and a firm has been mobilized to implement the work plan in January 2017. A detailed implementation work plan has been finalized, taking into account the outcome of the coordination session with ASEAN Secretariat on the updates of ACTS and consultation with the private sector. The implementation would be carried out in close coordination with the ASEAN Secretariat in their on-going ACTS pilot between Singapore- Malaysia-Thailand.

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

A final 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 has been completed and submitted to the CBTA Joint Committee at their recent 5th Meeting in December 2016.

The draft was developed in consultation with the countries, and presents annotation of the current CBTA texts based on transposition of the CBTA, its Annexes and Protocols into a Word-document matrix, allowing Article-specific comments and recommendations for instrument of the Agreement in line with the agreed methodology was circulated including an executive summary and traffic light coded instruments per perceived need for revision. Deliberation on the revised text of CBTA will commence in 2018 with a view to finalise the revised text in 2020.

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

The suggested approach was to gather information, as a precursor to the tabling and subsequent development of common parameters for coordinated risk management in the GMS, linked to those of the broader ASEAN region; including the planned ACTS Authorized Transit Traders (ATT) compliance scheme as part of the ACTS. In the period to June 2015, materials were collected from Cambodia, Lao PDR and Myanmar. The planned mobilization of external resources was deferred, however, due to overlap with activities undertaken under the JFPR funded RETA 8707 Strengthening Trade Facilitation in the Greater Mekong Subregion through Partnership with the Private sector (US$ 1.5 million) project, which also has a focus on RM. As such, a decision was taken to focus SP2 activities on RM in relation to Single Stop and Single Window Inspection, especially since clear weaknesses in current RM practice emerged at the July-August 2015 SP2 border visits in Cambodia, Lao PDR, Thailand and Vietnam (see Output 4 report in annex). Weaknesses included high (up to 100%) levels of physical inspection, lack of differentiated inspection techniques, absence of line-release, and lack of frontier post feedback to update trader profiles. SSI/SWI operations manual has been developed for Dansavanh Lao Bao, which will partly address these issues. The manuals would be use as template for subsequent use elsewhere in the region.

1.4 Second Joint Customs inspection is piloted

Consultations and site visits were undertaken to review of the experiences of Lao PDR and Vietnam in implementing Single Stop Inspection as part of their coordinated border management (CBM) initiatives at the Lao Bao-Dansavanh border along the East West Economic Corridor. Support has also been provided in the conduct of joint task force meetings to discuss future SSI system in Mukdahan-Savannakhet.

The TA organized, facilitated and intermediated three Joint Task Force Meetings (held in Mukdahan and Savannakhet on 10 to 11 August, 21 to 23 September, and 9 to 11 November) between the Customs, Immigration, Quarantine, Transport and Foreign Affairs agencies of Thailand and Lao PDR to revise, develop and operationalize their (unimplemented) 2005 MOU on the Initial Implementation of the GMS CBTA at the Savannakhet - Mukdahan border crossing. It has also supported the drafting, discussion and further amendment of an addendum to the 2005 Savannakhet Mukdahan MOU together with detailed technical arrangements for Customs, Immigration and Quarantine (covering human, animal, plant and health product inspection) and consolidated revised MOU text for signature by Lao PDR and Thailand in early 2016. Furthermore, it assisted in the coordination of a meeting on the technical arrangements for health product quarantine and inspection using SSI/SWI between Thailand and Lao PDR held in Udon Thani, Thailand on 28 and 29 October 2015 and drafted an equivalent revised MOU for the border crossings at Mae Sot Myawaddy and Mae Sai Tachilek between Myanmar and Thailand, together with preparatory discussions between NTFC leaders on 4 December 2015 in anticipation of formal negotiations and historic (re-)opening of the Myanmar transport market in 2016.

The TA organized and facilitated the discussions, process identification, and validation and document gathering for the development of the SSI/SWI Operations Manual at the Lao Bao (VIE) Dansavanh (LAO) border crossing and consultations were also conducted to validate the findings before finalizing the operation manual.

A language training course for border officials has also been conducted, in collaboration with Hue University. The language training course is expected to enhance communication between border officials of Viet Nam and Lao PDR who will need to work side by side in SSI/SWI system. 157 border officials were trained for the first round of the course. The TA also produced a Vietnamese-Lao-English phrase book for easy reference by the border officials in operating SSI/SWI.

2.1 Mapping Completed for harmonized bilateral and trilateral transport agreements

Consolidation of all the available (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 broader regional policy, such as 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

The TA facilitated countries deliberation on the review of the CBTA texts and possible early implementation of the CBTA. At the 5th CBTA Joint Committee Meeting, the Ministers agreed on the final text of the Memorandum of Understanding of the Early Harvest Implementation of the CBTA, which would be signed by ad-referendum and is expected to be enforced in 2017. The MOU would enforce a subregional transport permit among the 5 GMS Countries, with Myanmar joining implementation in 2019.

As part of enhancing Myanmar readiness to implement the subregional transport permit under the early harvest MOU, the TA facilitated discussion of the Bilateral Exchange of Traffic Rights for Cross Border Transport in the form of MOU on the IICBTA between Myanmar and Thailand on 30 31 August 2017. The bilateral MOU is expected to be finalized by November 2017. The MOU will also serve as template for subsequent negotiation between Myanmar- Lao PDR and Myanmar PRC.

The TA also provides support to countries in preparing for the implementation of the Early Harvest Implementation. Among others, printing of the GMS permit, Temporary Admission Document, as well as meeting countries when requested, such as the one held on 16 18 January 2017 in Vientiane with Lao PDR MPWT and Customs to discuss gap assessment for CBTA Early Harvest implementation.

In addition to the CBTA implementation, the TA has also facilitated the conclusion of the revision to the Thailand-Cambodia bilateral transport agreement, which was then signed by the two contracting parties in December 2016. The revised agreement increased the traffic right quota from 40 to 150.

Aside from land transport expansion of routes and increase of traffic rights for land transport, the TA supported the

development of a High-Level Framework for GMS Railways

for an Improved Cross-border Rail Transport Connectivity in the GMS. The first meeting was conducted on 3 4 May and 17 18 July 2017 to develop and deliver multilateral and bilateral railway agreements for railway network development and operation in the GMS.

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). The TA supported the development of Road User Maintenance Charge in Lao PDR which will be launched in stages, with the first stage: a pilot scheme tentatively to be launched in 2017 covering the routes under the MOU on the Early Harvest Implementation of the CBTA.

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. A pamphlet on the ADB GMS Transport and Trade Facilitation Program has also been produced and launched at the recent GMS Ministerial Conference in September 2015, Naw Pyi Taw, Myanmar.

As the MOU on Early Harvest implementation of CBTA is launched, engagement with the private sector will be more intensive, particularly in monitoring the CBTA implementation as well as supporting the private sector in maximizing benefits from the CBTA.

Geographical Location Regional
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 Sasradipoera, Kanya S.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding 17 Jun 2013 to 22 Jun 2013
MRM -
Approval 28 Oct 2014
Last Review Mission -
Last PDS Update 21 Sep 2017

TA 8748-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Oct 2014 - 28 Oct 2014 31 Dec 2016 31 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 3,700,000.00 0.00 0.00 0.00 0.00 3,700,000.00 28 Oct 2014 2,160,790.65

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Evaluation Documents See also: Independent Evaluation

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Related Publications


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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Policy and Advisory Technical Assistance 8748 06 Jan 2017 Training and Technology Transfer Ltd. (New Zealand) in Association with IOS Partners, Inc. (United States) Level 9, 111 The Terrace Wellington, Wellington 005, New Zealand Asian Development Bank 420600

Procurement Plan

None currently available.