2017 Progress ReportASIAN DEVELOPMENT BANK TECHNICAL ASSISTANCE 8836:ENHANCING CAPACITIES FOR BIMP-EAGA, IMT-GT AND GMS CONNECTIVITY

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Training Programs and Workshops

The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Greater Mekong Subregion (GMS)- B-I-G Capacity Building Program for Connectivity (B-I-G Program)- is a regional capacity development initiative for government officials to enhance capacities in developing policies, programs, and projects that support physical, institutional and people-to people connectivity in Southeast Asia and the People’s Republic of China (PRC). The B-I-G Program provides opportunities for knowledge and experience sharing, and networking between and among the three subregional programs given their unique roles as building blocks for Asian integration. It is funded by the Asian Development Bank (ADB) and the governments of the Republic of Korea and the PRC. Activities include training programs, knowledge events and internet based information repository.

About the B-I-G Program

Several activities were implemented in the B-I-G Program in 2017. Six training programs on economic corridors (2 modules, equivalent to 2 trainings), regional power market and cross-border interconnections, special economic zones (SEZs), tourism, and social protection, and a workshop on e-commerce were organized and attended by a total of 191 officials from BIMP-EAGA, IMT-GT and GMS. More than one-third of the participants were women (81, 42%) and majority at the levels of Director and above (121, 63%) as summarized in the table on PAGE 2.

Regional Training on Social Protection Systems: Social Assistance Partner: Centre for Social Protection, Institute of Development StudiesDate and Location: 16-20 January 2017, ADB Headquarters, Manila, PhilippinesNumber of Participants: 32

The five-day training was designed to provide opportunities for understanding issues and challenges in developing selective, targeted and demand-driven national social protection systems. The training focused on understanding concepts, approaches, processes and tools in design,

implementation, monitoring and evaluation of national social protection systems in general and social assistance in particular. Case studies on select social assistance instruments designed for specific target groups were featured including the Philippine experience in conditional cash transfers. The learning process provided opportunities to share experiences and discuss lessons learned using participatory methodologies. As a concrete output of the training, participants’ crafted strategies and action plans to improve implementation of their national social protection systems and social assistance programs.

Tourism Management in BIMP EAGA, IMT-GT, and GMS – Enhancing People-to- People Connectivity for Inclusive Growth Training Partner: Guilin Tourism University (GTU)Date and Location: 25-30 April 2017, GTU, Guilin, PRCNumber of Participants: 26

The tourism training enhanced knowledge and developed skills of participating government officials in design and implementation of tourism policies, programs, and projects. They applied the latest tools, frameworks and concepts in tourism planning and management to facilitate environmentally sustainable and inclusive growth. Topics covered were tourism planning and management, tourism value chain analysis, pro-poor tourism interventions, community-based tourism, public-private-community partnerships in tourism, use of information technology for tourism marketing and knowledge dissemination, and regional cooperation in tourism.

The training used a combination of methods including lectures, case studies, field visits, group discussions, and problem solving and simulation exercises to ensure that theoretical constructs were supported with practical experience in skills development. Participants underwent stakeholders and value chain analysis exercises at the field visit in the Long Ji Rice Terraces. The training emphasized the value of ‘mainstreaming’ community involvement in tourism for poverty alleviation and the need for substantial private investment and support from the government to achieve increased tourist visitations resulting to improved household incomes. Participants negotiation and facilitating partnerships skills, between and among government, private investors, and communities, were developed.

Tourism planners summarize stakeholder responses from the Long Ji field visit

Social protection practitioners at the ADB Headquarters

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2017 Training Programs and Workshops Number of Participants*

Number of Directors and

above

Number of Females

Physical Connectivity

Economic Corridor Development for Competitive and Inclusive AsiaModule 1: Economic Corridors Concepts, Characteristics and Models

27 18 12

Economic Corridor Development for Competitive and Inclusive AsiaModule 2: Drivers of Economic Corridors Development 26 17 11

Special Economic Zones (SEZs) as Catalysts for Economic Corridors, Value Chains and Production Networks 27 21 9

Regional Power Market and Cross-border Interconnections 28 21 7

Institutional Connectivity

Cross-border E-commerce: Towards Seamless Connectivity 25 14 12

People-to-people Connectivity

Social Protection: Social Assistance 32 18 15

Tourism Management in BIMP-EAGA, IMT-GT and GMS – Enhancing People-to-People Connectivity for Inclusive Growth

26 13 15

191 122 81

*does not include two (2) participants from Central Asia Regional Economic Cooperation (CAREC) and two (2) participants from South Asia Subregional Economic Cooperation (SASEC). The total number of participants trained by the B-I-G Capacity Building Program for Connectivity in 2017 is 195.

Workshop on Cross-border E-commerce: Towards Seamless ConnectivityPartners: ASEAN Studies Center, Chulalongkorn University and ADB TA 8430: Regional Knowledge Sharing Initiative (RKSI)Date and Location: 16-18 May 2017, Chulalongkorn University and ADB-Thailand Resident Mission, Bangkok, ThailandNumber of Participants: 25

The workshop was attended by 25 mid-career government officials from ASEAN countries (except Singapore) and PRC working in various ministries of information and communications technology, development and planning, trade, industry and commerce, and economy and finance (includes customs). Participants learned about key trends, opportunities and challenges in digitizing trade (i.e. e-commerce, aid for trade, and ICT); concepts and tools (such as the UNCTAD B2C E-Commerce Index); and regional cooperation in e-commerce and the experience of APEC and ASEAN. Country case studies on e-commerce development in the PRC (creating an e-commerce ecosystem), Philippines (developing an e-commerce road map) and Thailand (establishing a national e-payment system) discussed. E-commerce applications in tourism and in other sectors highlighted.

The workshop aimed to enhance capacities of BIMP-EAGA, IMT-GT, and GMS officials in overcoming constraints to and identifying avenues for cross-border e-commerce development and cooperation. At the end of the workshop, participants proposed cooperation frameworks and action agenda for e-commerce at their countries and subregions.

Economic Corridor Development for Competitive and Inclusive AsiaModule 1: Economic Corridors Concepts, Characteristics and ModelsPartners: ADB, Asian Development Bank Institute (ADBI), Ministry of Foreign Affairs-Singapore Cooperation Programme and the S. Rajaratnam School of International Studies at Nanyang Technological UniversityDate and Location: 25-27 August 2017, SingaporeNumber of Participants: 27; with additional 4 from CAREC and SASEC

The training on Economic Corridor Development (ECD) for Competitive and Inclusive Asia was organized with two distinct and independent modules. The training enhanced knowledge and skills on ECD of 31 senior officials representing 9 countries from BIMP-EAGA, IMT-GT and GMS. Four officials

Participants, e-commerce practitioners and the training team at Chulalongkorn University

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planning and implementation; (ii) Melaka which is considered a model GrEEEn city ; and (iii) in the Bukit Kayu Hitam and Sadao borders to learn about TTF in the context of ECD.

At the end of Module 2, BIMP-EAGA, IMT-GT and GMS participants: (i) summarized good practices and lessons learned from the field visits; (ii) applied economic corridors concepts, frameworks and models; (iii) conducted analysis of their economic corridors using tools (e.g. SWOT and stakeholder analysis); (iv) proposed strategies and action plans (including policies, institutional mechanisms, and other operational aspects) in select economic corridors of their SCPs.

Special Economic Zones (SEZs) as Catalysts for Economic Corridors, Value Chains and Production Networks Training Partners: Asia Pacific Finance and Development Institute and RKSIDate and Location: 25-29 September 2017, Shanghai, PRCNumber of Participants: 27

The training improved awareness and enhanced the knowledge and skills of 28 participants from 10 ASEAN countries (except Singapore) and PRC. The senior level officials represented ministries of planning, trade, industry and commerce, finance, economy and foreign affairs, and from special bodies such as economic corridor development and SEZs authorities. It featured concepts and case studies in SEZ policy design, strategy development, planning, governance, and monitoring and evaluation in Asia, and highlighted PRC’s experience. Case studies on SEZs as part of economic corridors in Malaysia, PRC and Viet Nam (as bilateral projects) and in the GMS were highlighted. Field visits to Shanghai Pudong Development Zone and Shanghai Free Trade Zone featured the process of developing and managing SEZs, success factors and lessons learned.

The training format allowed participants to share SEZs experiences, and exposed them to good practices and lessons learned in SEZs in Asia and other regions such as Africa, America and Europe. Participants provided in depth analysis of their country experiences in SEZs policies design, implementation, evaluation, identified success factors and challenges, and provided key recommendations. At the end of the training participants proposed a cooperation framework and action agenda for SEZs development and proposed SEZs projects in their subregions.

from CAREC and SASEC from 4 countries attended Module 1 and funded by ADBI. Participants were from planning and socio-economic development, transport and infrastructure, trade and commerce, finance and economy, foreign affairs, and other agencies such as special bodies and border agencies related to ECD.

Module 1 tackled: (i) regional integration trends and perspectives in Asia; (ii) economic corridor concepts, characteristics and models; (iii) economic corridors as part of global value chains and production networks; (iv) ECD case studies on the GMS, South Asia, Central Asia (focus on the Almaty Bishkek Corridor) and the PRC’s Belt Road Initiative; and (v) ECD approaches of the five subregional cooperation programs (SCPs).

Innovative learning methods were used in the group discussions and exercises. The training format allowed participants to share ECD experience, and exposed them to good practices and lessons learned of the SCPs. At the end of Module 1, participants proposed strategies and action plans (including policies, institutional mechanisms, and other operational aspects) for ECD in their respective SCPs.

Module 2: Drivers of Economic Corridors Development Partners: Center for IMT-GT Subregional Cooperation, Malaysia and National Economic and Social Development Board (Thailand)Date and Location: 26 August to 1 September 2017, Malaysia (Johor, Melaka, Putrajaya, Hang Tuah Jaya, Bukit Kayu Hitam and Penang) and Thailand (Sadao)Number of Participants: 26

Module 2 focused on three drivers of economic corridors: (i) transport and trade facilitation (TTF); (ii) special economic zones (SEZs including border economic zones, SBEZs); and (iii) sustainable, livable and competitive cities. The learning process provided opportunities to share experiences, and acquire first-hand and direct exposure to transboundary situations in select sections (and subsections) of the IMT-GT economic corridors.

Module 2 also featured good practices and lessons from Malaysia’s national corridor development where economic (growth) corridors are strategically located to provide access to key business centers and neighboring economies, with clear sector and geographic focus, and with institutional mechanisms in place. Case studies on ECD in the Iskandar, Eastern and Northern regions were featured as well as on green cities development in Melaka and in Songkla. Field visits were conducted in: (i) Iskandar to feature best practices in ECD

Good practices and lessons on economic corridors across subregional programs discussed

Policy makers and development planners with the training team at the Asia Pacific Finance and Development Institute

The B-I-G Program is actively seeking partner institutions that can contribute to the program in a variety of ways, e.g. financial support, provision of facilities, academic support, joint program offerings, and knowledge sharing. The B-I-G Program partnered with seventeen (17) institutions representing international organizations, government, universities and ADB projects as listed below.

In 2017, the B-I-G Program expanded its network of knowledge partners and organized a training on social protection in partnership with the Centre for Social Protection at the Institute of Development Studies in the UK and the SEZs training with the Asia-Pacific and Finance Development Institute, PRC. Government partners were also more active in 2017 providing continued support for the economic corridors and SEZs training. The B-I-G Program will continue expanding its network of knowledge partners in 2018. Technical contributions of knowledge partner institutions are defined depending on expertise, interest and commitment.

Knowledge Partners

Multilateral and International Organizations (4)

Asian Development Bank Institute, Japan

Center for IMT-GT Subregional Cooperation, Malaysia

CAREC Institute, PRC

ASEAN Korea Center, Republic of Korea

Government (5)

Ministry of Commerce, PRC

Ministry of Finance, PRC

Ministry of Foreign Affairs-Singapore Cooperation Programme, Singapore

China Association of Development Zones, PRC

National Economic and Social Development Board, Thailand

Academe (6)

ASEAN Studies Center, Chulalongkorn University, Thailand

Guilin Tourism University, PRC

S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore

Centre for Social Protection, Institute of Development Studies, United Kingdom

Asia Pacific Finance and Development Institute, PRC

Prince Songkla University, Thailand

ADB Project (1)

ADB TA 8430: Regional Knowledge Sharing Initiative (RKSI)

Private Sector (1)

POSCO Group University, Republic of Korea

Regional Power Market and Cross-border Interconnections Training Partner: ASEAN Korea Center (AKC)Date and Location: 12-17 November 2017, Seoul, Republic of KoreaNumber of Participants: 28

The training featured concepts and theory of how power market functions and steps to formulate a competitive power market. Practical examples (case studies) of power markets operational in the world were discussed such as the Pennsylvania, Jersey and Maryland (PJM) Power Pool, West and South Africa Power Pools (WAPP and SAPP), Central America Interconnection System (SIEPAC), Nordic Electricity Exchange (NORD Pool), and the Wholesale Electricity Spot Market (WESM) in the Philippines, among others; and latest status and challenges of the ASEAN Power Grid and cross border interconnections (e.g. the Lao-Thailand-Malaysia-Singapore Power Integration Project and Trans Borneo Power Grid Sarawak-West Kalimantan Interconnection Project) in BIMP-EAGA, IMT-GT and GMS.

The energy sector development experience of Korea, the proposed North East Asia power grid as well as clean and smart energy were featured. Participants demonstrated great interest in the sessions on Korea’s application of smart and clean energy given countries are looking at ways to diversify the energy sector and adopt cutting edge technology. A field visit to the Korea South-East Power Co., Ltd. (KOEN) Yeongheung Power Plant was conducted to showcase its unique features since the plant was a combination of solar, coal, wind, small hydro and energy batteries.

At the end of the training, participants undertook an integration exercise to apply knowledge learned supplemented with their working experiences, and reflect on current situation of their countries, subregions and ASEAN. Participants analyzed reasons for slow progress and proposed solutions and concrete steps at strategic, operational, institutional and project levels to move regional interconnectivity ahead. The participants demonstrated support for regional power interconnection and cooperation.

Participants with officials from ADB and AKC, resource persons, and the training team

Participants at the KOEN Yeongheung Power Plant

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2017 Training Programs and WorkshopsOverall rating(1.00 lowest and

5.00 highest)

Quality of training

(objectives attained)

Knowledge obtained and

skills developed

Physical Connectivity

Economic Corridor Development for Competitive and Inclusive AsiaModule 1: Economic Corridors Concepts, Characteristics and Models

4.54 4.65 4.58

Economic Corridor Development for Competitive and Inclusive AsiaModule 2: Drivers of Economic Corridors Development 4.53 4.69 4.81

Special Economic Zones (SEZs) as Catalysts for Economic Corridors, Value Chains and Production Networks

4.36 4.59 4.63

Regional Power Market and Cross-border Interconnections 4.35 4.54 4.39

Institutional Connectivity

Cross-border E-commerce: Towards Seamless Connectivity 4.52 4.63 4.54

People-to-people Connectivity

Social Protection: Social Assistance 4.52 4.56 4.63

Tourism Management in BIMP-EAGA, IMT-GT and GMS – Enhancing People-to-People Connectivity for Inclusive Growth 4.49 4.46 4.85

The B-I-G Program set up an effective performance monitoring and evaluation system. Comprehensive methodologies are used to measure inputs for trainings such as evaluation forms, mid-program assessment, needs and baseline assessments (to compare knowledge and skills levels before and after training), meetings with training teams, and lead experts and knowledge partners’ reports.

The 2017 training programs and workshop were of high quality as evidenced by the ratings in terms of overall quality and effectiveness, attainment of intended objectives, and knowledge obtained and skills developed summarized in the table below. The overall evaluation ratings are between 4.35-4.54 (with no ratings below 4.00 on a scale of 1.00 as lowest to 5.00 as highest).

Participants, lead experts and teaching faculty, training team, and knowledge partners also provided positive feedback on the content and delivery of the training programs and the workshop. Participants acknowledged relevance of topics discussed and articulated that they will apply what they learned in their workplaces. The government officials requested continued capacity development on connectivity and regional cooperation themes given no other institutions are offering similar customized and demand-based trainings.

Performance Monitoring and Evaluation System They also value the unique knowledge and experience sharing opportunities and networking.

At the output level, pre- and post- tests have been administered in select training programs to assess knowledge acquired and skills developed of the participating BIMP-EAGA, IMT-GT and GMS civil servants. Overall, officials have increased scores from pre to posts tests. The evaluations of these training programs also support the overall high quality and participants learning.

While the pre- and post-tests are used as a tool in measuring knowledge acquired, it has inherent constraints. The B-I-G Program also uses other complementary instruments and tools to assess qualitative results of learning such as: (i) use of participatory learning methodologies for skills development; (ii) networking and cross learning; (iii) fostering team work and collaboration in the multi-country exercises; (iv) integration exercises where participants work in multi-country teams to apply what they learned in the BIMP-EAGA, IMT-GT and GMS context; and (v) strategies and action plans development.

At the impact level, in 2018 the B-I-G Program will be implementing a tracer study using a survey instrument to assess the application of the knowledge acquired and skills developed in the training programs and workshop of participating BIMP-EAGA, IMT-GT and GMS government officials in their workplaces.

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The internet based information repository and website is fully functional since April 2017. It serves as a platform for information dissemination and knowledge exchanges between and among the government officials trained and knowledge partners of the B-I-G Program. The online platform aims to promote and provide information about the B-I-G Program along with details about past, on-going, and upcoming activities. The use of internet through web presence is being capitalized in promoting activities of the B-I-G Program intended for its stakeholders. The information repository and website also have a discussion room and provides access to the training materials and related sites for the training content, and a database of government officials as well as knowledge partners.

Information Repository

The B-I-G Program has a total budget of US$1.5 million with financial support from the ADB (US$0.25 million from the Technical Assistance Special Fund and US$0.50 million from the Regional Cooperation and Integration Fund), the Republic of Korea e-Asia and Knowledge Partnership Fund ($0.5 million) and People’s Republic of China Regional Cooperation and Poverty Reduction Fund ($0.25 million). A resource mobilization strategy is being implemented to explore co-financing and/or in-kind contributions from non-recipient countries (e.g. Singapore), participating middle-income countries, and institutional capacity development partners (i.e. universities, education, research and training institutions).

Resource Mobilization and Financing

As part of the B-I-G Program governance and reporting mechanisms, updates and progress of activities are reported at Senior Officials Meetings (SOMs) of BIMP-EAGA, IMT-GT and GMS conducted in 2017. Overall strategic guidance, potential knowledge partners, evaluation results, and demand-based training needs related to connectivity are typically discussed at the SOMs. Regular progress reports are also provided to the member governments, development partners and knowledge partners.

The BIMP-EAGA, IMT-GT and GMS countries greatly appreciate the support of ADB and the governments of the Republic of Korea and the People’s Republic of China through the B-I-G Program in enhancing civil servants’ capacities to advance physical, institutional and people-to-people connectivity within the subregions and ASEAN.

Governance and Reporting Mechanisms

Established in 1994, the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) aims to accelerate the socioeconomic development of less-developed, marginalized, and geographically remote areas in these four countries as part of a broader goal to narrow the development gaps, not only among ASEAN Member States, but also within them. BIMP-EAGA covers the entire sultanate of Brunei Darussalam; the provinces of

Kalimantan, Sulawesi, Maluku and Papua of Indonesia; the states of Sabah and Sarawak and the federal territory of Labuan in Malaysia; and Mindanao and the province of Palawan in the Philippines. The subregion covers a land area of 1.6 million square kilometers with an estimated population of 80 million.

The Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) is a subregional cooperation initiative formed in 1993 by the governments of Indonesia, Malaysia, and Thailand to accelerate economic transformation in less developed provinces. The private sector has played and will continue to play a key role in promoting economic cooperation in

IMT-GT. The IMT-GT has grown in geographic scope and activities to encompass about 81 million people. It is now composed of 14 provinces in southern Thailand, 8 states of Peninsular Malaysia, and the 10 provinces of Sumatra in Indonesia.

The Greater Mekong Subregion (GMS) Economic Cooperation Program was established in 1992 among countries that share the Mekong River—Cambodia, People’s Republic of China (specifically Yunnan Province and Guangxi Zhuang Autonomous Region), Lao People’s Democratic Republic (PDR), Myanmar, Thailand, and Viet Nam. The GMS Program has focused on promoting connectivity as a means of accelerating trade and investment, consequently stimulating economic growth, and ultimately helping to reduce poverty. The areas of cooperation include agriculture, energy, environment, human resource development, investment, telecommunications, tourism, transport infrastructure, and transport and trade facilitation.

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For more information, please contact:

Regional Cooperation and Operations Coordination DivisionSoutheast Asia DepartmentAsian Development Bank

Alfredo Perdiguero Gary KrishnanDirector Country Specialistaperdiguero@adb.org gkrishnan@adb.org

Pamela Asis-Layugan Jordana Queddeng-CosmeTeam Leader and Training Specialist Program Analystpasis.consultant@adb.org jqueddeng.consultant@adb.org

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel (632) 632-6452 Fax (632) 636-2226 www.bigconnectivity.org

B-I-G Capacity Building Program for Connectivity Achievements(2015-2017)

* Includes Afghanistan (1); Azerbaijan (2); Bangladesh (1); India (2); Kazakhstan (1); Kyrgyz Republic (3); Mongolia (1); Nepal (2); Pakistan (2); South Korea (1); Sri Lanka (2); Tajikistan (2); Turkmenistan (1); and, Uzbekistan (2)