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

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.