A more connected ASEAN community via sustainable infrastructure projects
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.)