Regional: Supporting Regional Project Development for Association of Southeast Asian Nations Connectivity

Sovereign Project | 46309-001 Status: Approved

Summary

The members of the Association of Southeast Asian Nations (ASEAN) are committed toward regional economic integration through the realization of an ASEAN Economic Community (AEC) in 2015. To do so, the ASEAN leaders agreed and endorsed in 2010 the Master Plan on ASEAN Connectivity (MPAC) to promote infrastructure development and connectivity. With increasing intraregional trade and investment flows, the infrastructure stock in the region needs to keep pace. To better connect the regional market of 600 million people spread across ten different countries, an infrastructure development driven connectivity is key. In addition, regional and subregional sector analyses have confirmed the continued importance of economic corridor connectivity in the drive to realize the AEC.

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Procurement Documents

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Project Name Supporting Regional Project Development for Association of Southeast Asian Nations Connectivity
Project Number 46309-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8240-REG: Supporting Regional Project Development for Association of Southeast Asian Nations Connectivity
Technical Assistance Special Fund US$ 1.20 million
TA 8240-REG: Supporting Regional Project Development for Association of Southeast Asian Nations Connectivity (Supplementary)
Regional Cooperation and Integration Fund US$ 300,000.00
TA: Supporting Regional Project Development for Association of Southeast Asian Nations Connectivity
Canada (CIDA) US$ 4.30 million
International Enterprise Singapore US$ 4.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Infrastructure finance and investment funds - Money and capital markets

Public sector management - Economic affairs management

Gender Equity and Mainstreaming
Description

The members of the Association of Southeast Asian Nations (ASEAN) are committed toward regional economic integration through the realization of an ASEAN Economic Community (AEC) in 2015. To do so, the ASEAN leaders agreed and endorsed in 2010 the Master Plan on ASEAN Connectivity (MPAC) to promote infrastructure development and connectivity. With increasing intraregional trade and investment flows, the infrastructure stock in the region needs to keep pace. To better connect the regional market of 600 million people spread across ten different countries, an infrastructure development driven connectivity is key. In addition, regional and subregional sector analyses have confirmed the continued importance of economic corridor connectivity in the drive to realize the AEC.

The ASEAN and the Asian Development Bank (ADB) have been collaborating on various initiatives to support the implementation of MPAC. Among these initiatives is the ASEAN Infrastructure Fund (AIF) to provide financing for key infrastructure projects on connectivity. Given the high overall financing requirements (estimated to be around $60 billion per year for ASEAN) and the limited supply of financing, projects need to be prioritized based on their expected impact and viability. Even with the AIF, additional support is needed to ensure that priority projects are properly screened prior to their preparation to maximize their chances of securing private sector participation. While the MPAC has defined priority project concepts to foster connectivity, there is a need to develop a viable project pipeline and to screen projects to ascertain whether they could be financed by such new initiatives as the AIF or by private investments through the PPP modality.

Project Rationale and Linkage to Country/Regional Strategy While the ASEAN region is becoming more integrated and steady progress has been made on various facets of connectivity, significant work is required to screen projects prior to their preparation to maximize their chances of securing private sector participation. The TA will develop screening mechanisms to (i) determine the most viable projects with regional connectivity impact to be financed by ADB and the AIF, and (ii) catalyze private sector investments by developing a project structuring facility for regional PPP projects. For the PPP structuring, the targeted projects will be those included in the ADB pipeline, to be financed by ADB and the AIF.
Impact Enhanced connectivity in the ASEAN region

Project Outcome

Description of Outcome Increased investments into ASEAN connectivity from both public and private sectors.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Project screening and pipeline is formulated.

2. Project structuring facility for PPP and capital market instrument on infrastructure financing is operationalized.

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

Soon after the confinancing agreements with the governments of Singapore and Canada were signed in January and February 2014, respectively, the TA Team Leader was engaged. The inception meeting was held in Singapore on 1 April 2014. The consultant was tasked to initiate consultations with the various public-private partnership (PPP) centers in Southeast Asia and with the private sector/development partners. Three more experts were hired for the Core Team to work on project pipeline development. The first round engagement of firms as legal and financial panels of advisors to support TA implementation was completed, and the second round for additional financial advisory panel was initiated.

TA review missions were conducted to discuss with government agencies, private sector stakeholders, cofinanciers and development partners. Various consultations with counterpart agencies have been conducted throughout 2014 and Q3 2015 to explore potential PPP projects to be supported by the TA. In addition to supporting PPP, further development of projects with linkages to the ASEAN Infrastructure Fund is also being explored.

Following the video-conference held in October 2015, and as agreed between ADB and the cofinanciers, a new Core Team Leader was engaged and came on board on 5 March 2016. Among the projects identified for technical support under the TA from the scoping studies initiated in 2014 and 2015 is a transport sector project for the Philippines. The No Objection Letter was signed by Philippines Department of Finance on 25 November 2015. ADB is undertaking discussions with relevant government agencies in Indonesia, Viet Nam, and Malaysia for possible TA support on other projects. A roundtable discussion amongst ADB, cofinanciers and stakeholders is being planned sometime in Q22016.

Since December 2015, the TA project team has initiated collaboration with ADB's Office of Public-Private Partnerships to support project work on potential PPP projects.

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 advisory, technical, and administrative support services. It is estimated that 36 person-months of international consulting services and 36 person-months of national consulting services are required for the TA. The diverse skills requirements will determine if the consultants will be engaged on an individual basis or through a firm.
Procurement Computer hardware and software will be purchsed in accordance with ADB's Procurement Guidelines and in coordination with ADB's Office of Information Systems and Technology and Office of Administrative Services

Responsible Staff

Responsible ADB Officer Jin Cyhn
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SERD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines

Timetable

Concept Clearance 13 Aug 2012
Fact Finding -
MRM -
Approval 04 Dec 2012
Last Review Mission -
Last PDS Update 21 Mar 2016

TA 8240-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2012 - 04 Dec 2012 01 Jan 2016 30 Jun 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 04 Dec 2012 544,863.08

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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