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.

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

The TA aims to enhance regional cooperation and integration initiatives and build capacities of officials and institutions of Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Greater Mekong Subregion. The Regional Cooperation and Integration Fund approved in 2019 an additional $0.7 million to the TA. The TA has a current total funding of $2.4 million.

TA implementation has been satisfactory. Under Output 1, the respective Secretariats of the ASEAN, BIMP-EAGA, Greater Mekong Subregion (GMS) and the IMT-GT met in 2018 and discussed areas where partnerships and links amongst the 4 cooperation programs could be deepened. Under Output 2, the study to update the Special Border Economic Zones has been completed.Two other related studes are ongoing: (i) the Study on Collaborative Approaches to Special Economic Zones, and (ii) the review of the five existing IMT-GT economic corridors and assessment of the proposed sixth corridor. The TA also provides support to the Green Cities Initiative, including the preparation of Green City Action Plans.

The conduct of capacity building programs is progressing well under Output 3. Such training programs also serve as platforms for (i) policy dialogues; (ii) collaboration and subregional action planning; (iii) networking; and (iv) sharing of good practices.

In 2019, the TA organized five training programs on: economic corridors, special economic zones, project management, and regional tourism management. In addition, 4 knowledge events were also conducted:value management in projects, green cities, integrated transport and 4th Industrial Revolution. A total of 400 mid-level and senior government officials participated in these capacity-building events. These programs were concucted in close collaboration with international organizations, governments, and universities and educational institutions

The TA supported the publication of the knowledge products such as _Compilation of Sustainable Ecotourism, Agriculture and Fishing Case Studies_; the Sarawak-West Kalimantan Study and the _Green City Action Plan for Kota Kinabalu_. Videos on BIMP-EAGA and IMT-GT were developed. A video was also completed to support the launch of the Green City Action Plan for Kota Kinabalu. The TA also supported the development of a BIMP-EAGA website (https://www.bimp-eaga.asia/) that now serves as key information portal and repository of knowledge products generated on BIMP-EAGA.