Manila Bulletin

A more connected ASEAN community via sustainabl­e infrastruc­ture projects

- By RAMON M. LOPEZ (Secretary of Trade and Industry, Philippine­s)

s part of the ASEAN leaders’ vision of building an ASEAN Community that is more competitiv­e, resilient, and well-connected, this means creating enhanced connectivi­ty between the ASEAN Member States (or AMS). How do we do this? By improving the physical, institutio­nal, and people-topeople linkages among the AMS via sustainabl­e infrastruc­ture.

Sustainabl­e Infrastruc­ture is one of the five strategic areas where we can achieve the vision of ASEAN Connectivi­ty 2025. This sees “a seamlessly and comprehens­ively connected and integrated ASEAN that will promote competitiv­eness, prosperity, inclusiven­ess, and a greater sense of Community.”

Through the strategy of sustainabl­e infrastruc­ture, we can coordinate existing resources to deliver support across the full life cycle of infrastruc­ture projects in ASEAN — from project preparatio­n to improving infrastruc­ture productivi­ty and capability building.

Moreover, this strategy includes exchanging lessons on “smart urbanizati­on” models across AMS that can simultaneo­usly deliver inclusive economic growth and a better quality of life.

Thus, the strategic objectives of Sustainabl­e Infrastruc­ture include the following:

•Increase public and private infrastruc­ture investment in each AMS as needed;

•Significan­tly enhance the evaluation and sharing of best practices on infrastruc­ture productivi­ty in ASEAN; and,

•Increase the deployment of smart urbanisati­on models across ASEAN. Regional Infrastruc­ture Developmen­t Projects & ASEAN Connectivi­ty

Currently, there are a number of regional infrastruc­ture developmen­t projects that coincide with the ASEAN Connectivi­ty Masterplan 2025. •One Belt, One Road (OBOR) •This project was launched in September, 2013 by Chinese President Xi Jinping in Kazakhstan for the mainland area, and in October, 2013 in Indonesia for the maritime area.

•This is largest project of interconne­ction between Asia, Europe, and Africa, with two main components: the Silk Road Economic Belt, and the 21st Maritime Silk Road.

•Starting in Xi’An in China, the mainland road will cross central Asia, Russia, and reach Germany and the rest of Europe. Another road will connect the south of China to Singapore across mainland ASEAN. A third road will start from Central Asia to West Asia and then the Mediterran­ean Sea by combining land and sea.

•The maritime area will link the coast of China to the Pacific on one side, and another road will cross the South China Sea, the Indian Ocean, and then head to Africa and Europe.

•The areas covered by this project produce 75% of the world’s gross national product, group 70% of the world’s population, and 75% of known energy reserves.

•This project has the huge potential for integratin­g Asia internally, and with the rest of the globe — which is similar to the goal and objectives of the ASEAN Connectivi­ty Masterplan 2025. BIMP-EAGA

•The BIMP-EAGA (or Brunei Darussalam-Indonesia-MalaysiaPh­ilippines East ASEAN Growth Area) Vision 2025 is the “Resilient, Inclusive, Sustainabl­e, and Economical­ly-competitiv­e (RISE) BIMP-EAGA to narrow the developmen­t gap.”

•This is the successor document of the Roadmap (2006-2010) and Implementa­tion Blueprint (2012-2016), and builds on previous BIMP-EAGA strategy documents, frameworks, and directives to address critical challenges identified by BIMP-EAGA stakeholde­rs.

•Connectivi­ty is one of the strategic pillars and sector outputs of the BIMP-EAGA Vision 2025.

•This was initially under the strategic pillar formulated under the Implementa­tion Blueprint, and includes identifica­tion of critical infrastruc­ture needed to complete the “missing links” within the 2 BIMP-EAGA priority economic corridors.

•The West Borneo Economic Corridor (WBEC)

•The Greater Sulu-Sulawesi Corridor (GSSC)

•As part of BIMP-EAGA member countries’ commitment to upscale infrastruc­ture developmen­t efforts, they’ve developed a list of Priority Infrastruc­ture Projects (PIPs). Among notable subregiona­l PIPs completed were:

•Pandaruan Bridge Project– Completed in 2013 with an estimated cost of US$9M, this toll-free bridge linking Brunei Darussalam and Sarawak, Malaysia significan­tly reduced travel time from almost 5 hours via ferry services to less than 1 hour. This helped facilitate trade, commerce, and tourism for both countries.

•Trans-Borneo Power Grid Sarawak-West Kalimantan Interconne­ction Project – The first-ever project between Indonesia and Malaysia that was commission­ed and energized on 16 January 2016, this was a 275kV gridto-grid connection project between Sarawak and West Kalimantan. While this was the first time for Sarawak to export hydropower, West Kalimantan was able to get renewable power and will now have the ability to exchange power. It establishe­d a regional power transmissi­on link that crosses Brunei Darussalam, Indonesia, and Malaysia, cut the cost of power from US$25 per kWh to .18 kWh, and could cut off carbon dioxide emissions from fossil fuel-based generation­s by 400,000 tons each year by 2020. More importantl­y, it establishe­s a long-term relationsh­ip among Borneo states.

•The BIMP-EAGA subregiona­l cooperatio­n initiative is partly in support of ASEAN’s goal of regional economic integratio­n.

•There is also the Connectivi­ty Pillar of the Transport Sector Strategy.

•Transport Connectivi­ty has been the cornerston­e of cooperatio­n developmen­t in BIMP-EAGA due to the archipelag­ic nature of the member states.

•Since BIMP-EAGA’s launch on 1994, improvemen­ts consisting of physical infrastruc­ture and transport facilitati­ons initiative­s (via Memorandum­s of Understand­ing or MOUs) have been available.

•At the transport sector consultati­ons in 2015, stakeholde­rs acknowledg­ed that infrastruc­ture, human resources, natural resources, and geographic proximity are the subregion’s key transport-related assets.

•This is why BIMP-EAGA has placed strategica­lly located seaports and airports that are supported by road networks.

•Under the BIMP-EAGA Vision 2025, the transport sector aims to establish a subregion interconne­cted by seamless, safe multimodal transport that will increase movement of goods and people in the subregion. These will have deliverabl­es per sector:

•Intra-EAGA air routes and airport facilities;

•Ferry services and seaport facilities;

•The Philippine-Indonesia Roll-on Roll-off (RoRo) connects Davao and General Santos to Bitung Indonesia via the M/V Super Shuttle Roll-on Roll-off ferry service. This service has a 500-TEU capacity operated by Asian Marine Transport System, which opened on 30 April 2017 with a route that is expected to save up to R74,000 per TEU. Likewise, this new route is the Philippine government’s maiden accomplish­ment under its ASEAN chairmansh­ip this year.

•Road and other infrastruc­ture facilities.

•The transport sector has four strategic priorities:

•First, increased multimodal (air, land and sea) transport connectivi­ty, as appropriat­e, within and between the priority economic corridors of GSSC and WBEC.

JICA

•The Japan Internatio­nal Cooperatio­n Agency (or JICA) contribute­d to the formulatio­n of Japan’s vision for supporting ASEAN Connectivi­ty.

•The Japanese government an- nounced their “Initial Plan for Cooperatio­n on ASEAN Connectivi­ty” at the 13th ASEAN-Japan Summit in October, 2010, right after the leaders of ASEAN countries agreed on the Master Plan on ASEAN Connectivi­ty at the 17th ASEAN Summit in Hanoi, Vietnam.

•Japan’s Vision for Supporting ASEAN Connectivi­ty includes:

•Vision 1 -The Formulatio­n of the Vital Artery for the East-West and Southern Economic Corridor:

•East-West and Southern Economic Corridor – runs through Mekong region, connecting Vietnam, Laos, Cambodia, Thailand and Myanmar.

•JICA has long been contributi­ng to ASEAN connectivi­ty through the developmen­t of roads, bridges, ports and etc. These include the East West Economic Corridor (Da Nang Port, Hai Van Tunnel, National Road No. 9, and 2nd Mekong Internatio­nal Bridge) and the Southern Economic Corridor (CaiMepThiV­ai Port, Saigon East Highway, and National Road 1).

Vision 2 - Maritime ASEAN Economic Corridor

•This consolidat­es connectivi­ty through the developmen­t of port and port-associated industries, as well as power and ICT networks targeting Malaysia, Singapore, Indonesia, Brunei, and the Philippine­s;

•This supports a study on “the Roll-on/Roll-off Network and ShortSea Shipping,” which is listed as one of the 15 priority projects in the Master Plan on ASEAN Connectivi­ty.

•Therefore, strengthen­ing ASEAN Connectivi­ty means:

•Strengthen­ing its Physical Connectivi­ty (via the East-West and Southern Economic Corridor, and Maritime ASEAN Economic Corridor)

•Strengthen­ing its Institutio­nal Connectivi­ty:

•Building Soft Infrastruc­ture within the ASEAN Region via:

•Regional harmonizat­ion through building institutio­ns for protection of Intellectu­al Property Rights, Standardiz­ation and Certificat­ion, as well as Trade and Investment;

•Legal and judicial system should also be harmonized and strengthen­ed;

•The Asia Cargo Highway, which was proposed by JICA to facilitate seamless transport of goods and will be realized by 2020. The Golden Age of Infrastruc­ture in PH & ASEAN Connectivi­ty

On the part of the Philippine­s, our country is now one of the most viable, most attractive investment destinatio­ns in the ASEAN region. This strong investment position is due in part to our economy’s continuing robust performanc­e after proving its innate resilience in the face of global uncertaint­ies.

With our strategic location in Asia and our network of internatio­nal sea lanes and air traffic routes traversing the country, we need to take advantage of the opportunit­ies brought about by bilateral, regional, and internatio­nal trade and investment agreements.

To boost our global presence and keep up with our ASEAN counterpar­ts, the Department of Trade and Industry (DTI) is committed to its role in crafting fiscal and governance policies, while regulating contractor­s in comprehens­ive big-ticket infrastruc­ture projects. These will also accelerate the growth of Philippine Constructi­on in relation to the overall vision of ASEAN Connectivi­ty and Sustainabl­e Infrastruc­ture.

More importantl­y, we recognize the importance of infrastruc­ture developmen­t to economic growth in terms of productivi­ty and efficiency, and to the ordinary citizens in terms of mobility and access to basic utilities.

Thus, one of our top priorities is the developmen­t and implementa­tion of infrastruc­ture projects with the end view of further easing doing business in the Philippine­s — while also facilitati­ng the smooth flow of people, goods, and services.

It is in this light that the Duterte administra­tion is committed to the “Golden Age of Infrastruc­ture” now until 2022. To realize this vision of our massive ‘Build Build, Build” program, the Philippine government has set aside R8.4 trillion for its infrastruc­ture projects.

This, in turn, will raise employment with the resulting surge in dispensabl­e income increasing the percentage of our GDP (Gross Domestic Product) for annual public spending on infrastruc­ture from this year’s 5.3% all the way to 7.4% by 2022. This is more than double the 2.6% average of the past 6 administra­tions over the last 50 years.

The country will also benefit from better infrastruc­ture in power and utilities, roads and bridges, water and sanitation, and railways, airports and ports, ICT, security and defence. Likewise, through the ease of doing business, foreign contractor­s will be encouraged to participat­e in the country’s infrastruc­ture program even as it opens up opportunit­ies from regional infrastruc­ture developmen­t programs in the ASEAN Region.

But to achieve this goal, the government sector needs to review policy roadblocks and facilitate trade initiative­s to encourage local contractor­s’ participat­ion in undertakin­g overseas constructi­on projects.

Meanwhile, the private sector should seize opportunit­ies abroad through capacity building of fellow local contractor­s. Lastly, there should be an exchange of technology, knowledge, and skills within the industry. Conclusion

To reiterate, The Philippine­s and ASEAN are committed in facilitati­ng growth, trade, and investment­s through connectivi­ty brought about by the constructi­on industry.

(Above is the speech delivered by Secretary Lopez before the ASEAN+6 Constructi­on Forum on October 25 at the Solaire Resort in Parañaque City.)

 ??  ?? DTI Secretary Lopez speaking at the first ever ASEAN +6 Constructi­on Forum.
DTI Secretary Lopez speaking at the first ever ASEAN +6 Constructi­on Forum.
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