Regional: Enhancing Effectiveness of Subregional Programs to Advance Regional Cooperation and Integration in Southeast Asia

Energy / Electricity transmission and distribution

Finance / Infrastructure finance and investment funds

Industry and trade / Industry and trade sector development - Trade and services

Information and communication technology / ICT strategy and policy, and capacity development

Public sector management / Economic affairs management

Transport / Multimodal logistics

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

The ADB provided support since 1996 and serves as regional development advisor to BIMP-EAGA and regional development partner to IMT-GT. Summit declarations by both subregional programs highlighted ADB's valuable role in enhancing their effectiveness at strategic, sector, project(s), and institutional levels. In recent years, ADB assistance is through TA 8814 and TA 8836 expected to close in December 2018. TA 8814 achievements include: (i) Green Cities Action Plans (GCAPs) in seven cities and ASEAN green cities network; (ii) preparation of BEV 2025 and IMT-GT Tourism Strategic Framework 2017 2036; (iii) thematic studies on cross-border power interconnections, economic corridors, value chains and border area development; (vi) statistical databases developed, and (vii) capacity building and institutional strengthening for BIMP-Facilitation Center (FC) and Centre for IMT-GT Subregional Cooperation (CIMT), among others. TA 8836, also known as the BIMP-EAGA, IMT-GT and Greater Mekong Subregion (GMS) Capacity Building Program or B-I-G Program organized 17 trainings and workshops on connectivity and RCI attended by 481 middle and senior level government officials. The B-I-G Program collaborates with 17 partner institutions and promotes knowledge and experience sharing between and among the three subregions. It also tapped the technical expertise and experience of People's Republic of China (PRC) government, education and training institutions in the design and delivery of training programs where the experience of the PRC in national development and RCI highlighted. PRC value-added to the three subregions is unique given it assumes multiple roles as development partner in BIMP-EAGA, as dialogue partner in IMT-GT, and member country in GMS.

The proposed KSTA builds on achievements of previous TAs and is a continuation of ADB support in a more integrated and purposive manner. Instead of having two separate TAs, only one KSTA is proposed for greater coherence, cost-effectiveness, and better results delivery. While ADB support has been for more than a decade, changes in the development landscape, new strategic documents, demand for well-designed subregional projects, and weak institutional capacities require sustained and continuous support. Lessons and successes from TAs 8814 and 8836 incorporated in the design include: (i) strong country ownership and demand; (ii) alignment and coherence with ASEAN; (iii) need for credible subregional project pipelines and more importantly convert these into bankable projects; (iv) systematic approach to results monitoring; (v) effective institutional mechanisms especially strong subregional secretariats needed to sustain cooperation efforts; (vi) government officials need to build capacities for effective implementation of RCI initiatives; and (vii) promote linkages and synergies between and among subregions in ASEAN.

To provide value-adding support to both programs, it is critical to address challenges that hamper their effectiveness as they implement the BEV 2025, IMT-GT Vision 2036, and IMT-GT IB 2017 2021. The new strategic documents included pipeline(s) of projects with priority infrastructure projects amounting to $21.4 billion for BIMP-EAGA and $48.4 billion for IMT-GT aimed at enhancing connectivity in Southeast Asia. Effective functioning of the two subregions are hampered by: (i) weak strategic and institutional links and coordination with ASEAN; (ii) lack of well-designed RCI projects and weak results monitoring; and (iii) limited capacities of government officials to develop and implement RCI policies, programs and projects.

As reported to the BIMP-EAGA 23rd Ministerial Meeting in November 2019, the Priority Infrastructure Projects (PIPs) increased from 57 (in 2017) to 73 projects valued at $23.27 billion with 24 (33%) projects completed, 5 (7%) nearing completion and 44 (60%) in various stages of implementation.

As reported to the 25th IMT-GT Ministerial Meeting in September 2019, the total Priority Connectivity Projects (PCPs) is 37 projects valued at $48 billion with 7 (19%) projects completed, 2 (5%) projects with Phase 1 completed and other phases ongoing, 23 (63%) in various stages of implementation, and 5 (13%) projects under preparation. At the Strategic Planning Meeting in February 2020, the New Betong Airport (Yala Province, Thailand) was reported completed. Total PCPs completed for IMT-GT to date is 8 (21%) out of 37 projects.

Strategic, sector, and institutional links and coordination between subregional programs and ASEAN improved

Project development and managing for development results enhanced

Capacities of civil servants in design and implementation of RCI policies, programs, and projects enhanced

For outputs 1 and 2, studies on collaborative approaches to SEZs development in IMT-GT and BIMP-EAGA, and on the strategic relevance of the IMT-GT economic corridors are nearing completion and serve as deliverables for the forthcoming virtual ministerial meetings. The TA supports green cities initiatives and complements the ASEAN Sustainable Urbanization Strategy and the ASEAN Smart Cities Network. In BIMP-EAGA, a Green City Action Plan (GCAP) for Kota Kinabalu (Malaysia) has been completed and preparations are underway for a GCAP for General Santos City (Philippines). In IMT-GT, green transportation plans were prepared for Phuket and Krabi (Thailand), Langkawi and Penang (Malaysia), and Banda Aceh and Pekanbaru (Indonesia) and the integrative report will be a key knowledge product at the virtual ministerial meeting in November 2020.

The TA continues to provide technical assistance in the conduct of special (virtual) sector consultations in IMT-GT and cluster and working group meetings in BIMP-EAGA since May 2020. The consultations and meetings discuss the impact of COVID-19 on the sectors and recovery strategies that the subregions can take to revive economies and how the BIMP-EAGA and IMT-GT can effectively function as subsets of and building blocks to ASEAN amid COVID-19 and beyond.

For output 3, in 2019, the B-I-G Program organized five training programs on economic corridors, SEZs, project management, and tourism. The knowledge events focused on value management in projects, green cities, integrated green transport, and the fourth industrial revolution. Of the 398 participants from BIMP-EAGA, IMT-GT, and GMS, 181 (45%) were women and majority (255, 64%) were at the director level and above.

The 3rd Green Cities Forum, organized in January 2020 in Malaysia, focused on coastal cities given their vulnerability to climate change and common challenges in managing transboundary natural assets and marine resources. About 130 mayors, local chief executives, city planners, and representatives from national government agencies, private sector, academe, and international organizations attended.

To provide continuity to the B-I-G Program's capacity building activities in the wake of the COVID-19 outbreak, online (virtual) policy dialogues were conducted from June to September 2020. The Policy Actions for COVID-19 Economic Recovery (PACER) Dialogues explored measures that can help economies _bounce back_ from the COVID-19 pandemic and accelerate economic recovery.

A total of 12 PACER dialogues were implemented with the following COVID-19 related themes: economic management measures of Republic of Korea and New Zealand; tourism recovery policies; post-lockdown health interventions; bouncing back support to SMEs; safe population mobility and migrant-inclusive approaches; education technology for improved learning and work force recovery; assistance for startups to thrive in the pandemic; accelerating digital financial services and infrastructure; enhancing readiness for vaccine distribution; social protection measures for long-term resilience; and adaptive control paradigm and forecasting to reduce infection rates, allow safe reopening and options for vaccine distribution. Policy briefs were produced after each dialogue summarizing policy options and key recommendations discussed and posted in ADB's knowledge platform, DevAsia.

A total of 738 government officials and private sector representatives from ASEAN member countries, People's Republic of China, and Timor-Leste including representatives from development partners attended the PACER Dialogues. There were 566 government officials from BIMP-EAGA, IMT-GT and the GMS who attended with 231 women (41%) and majority (418, 74%) were at director level and above.

In terms of effectiveness and results delivery (outcome level) of the B-I-G Program capacity building activities, a tracer study polled participants whether they were able to apply the knowledge and skills they acquired in their workplace. From the 109 tracer study respondents, 98 (90%) confirmed that they applied what they learnt in their workplace, which is above the B-I-G Program's 70% outcome indicator target.

The respondents found networking (71) and sharing of experience (78) as most useful and relevant. They applied the following in their work: (i) knowledge on concepts and tools in RCI and connectivity (66), strategy development (65); and (ii) skills development in strategic thinking (65), working in teams (62), and communications (60).