Regional Economic Policy Support Facility Regional Partnership Scheme Program Stream

• • AusAID publication records ASEAN- Australian cooperation over 30 years
• • Regional Partnerships Scheme approves new projects and prepares to support ASEAN’s Vientiane Integration Agenda • Eight new research studies endorsed for Regional Economic Policy Support Facility • Four Program Stream projects commence inception activities

  Regional Economic Policy Support Facility Regional Partnership Scheme Program Stream

  Australia and ASEAN Celebrate

  On 15 April 2004 Australia’s Minister for Foreign Affairs, the Honourable Alexander Downer MP, hosted a function at Parliament House, Canberra to celebrate the 30th anniversary of ASEAN-Australian dialogue partnership and development cooperation. It was almost 30 years to the day since Australia and ASEAN held their first dialogue partner meeting in Canberra.

  The celebration was honoured by the presence of the ASEAN Secretary- General, His Excellency Mr Ong Keng Yong. Distinguished guests included ASEAN diplomatic representatives in Canberra, six senior ASEAN journalists visiting as guests of the Australian Government, officials of the Department of Foreign Affairs and Trade, the Australian Agency for International Development (AusAID) and other Government agencies, and a number of past and present project coordinators.

  To mark the anniversary the Minister for Foreign Affairs launched a new AusAID publication tracing the history of the ASEAN-Australia development cooperation program. A summary is included in this newsletter.

  The Minister commended the program for building closer links and advancing our mutual goals over time. For example, its current focus on ASEAN economic integration and trade competitiveness supported our shared wish for regional stability and growth, and complemented very positive moves towards closer trade ties. Mr Downer praised ASEAN’s creative approach to surmounting the challenges it faced. He noted that both sides had much to offer and together we could achieve great things. The ASEAN Secretary-General heartily endorsed Mr Downer’s words. He expressed warm thanks for Australia’s support for ASEAN development during the past 30 years, which had achieved a remarkable breadth, depth and range of activities. Mr Ong said that, while there was no doubt ASEAN and Australia had been good friends for a long time, he would be happy for ASEAN countries to become even more aware of Australia and felt the future offered good prospects for this. During his visit to Australia, the Secretary-General also addressed public events in Sydney and Melbourne, where he stressed the continuing vitality of the relationship and shared ASEAN’s vision and perspectives with varied Australian audiences.

  

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newsletter

  No. 4 May 2004 In this Newsletter

  The ASEAN Secretary-General, HE Mr Ong Keng Yong, and the Australian Minister for Foreign Affairs, the Hon. Alexander Downer MP, at the 30th anniversary celebration.

New Research Projects Endorsed for Regional Economic Policy Support Facility

• Strategic Directions for ASEAN Airlines in a Globalising World.

  REPSF Coordinator & Director with consultants to the 'Liberalisation & Harmonisation of ASEAN Telecommunications' & 'Preparing for Electricity Trading in ASEAN' Projects. (left to right) Joy Abrenica, John Cunningham, Hardiv Situmeang, Brian Brogan, Michael Porter, Roy Chun Lee.

• Promoting Efficient and Competitive Intra-ASEAN Shipping Services • Harmonisation and Integration of
• An Assessment Study on the

• SME Access to Finance: Addressing Supply-side Prerequisites • Options for Establishing a Regional Research Network to Support ASEAN’s Priorities • ASEAN Telecommunications and
• Global Economic Challenges to ASEAN

  The draft study report was presented to the Special ASEAN Telecommunications and IT Senior Officials’ Meeting (TELSOM) at the ASEAN Secretariat, Jakarta on 23 April 2004.

  Their report notes that increased competition in the supply of telecommunications services in ASEAN has potential to generate great benefits in terms of quality, coverage and price. At the same time, pro-competitive regulation is required to safeguard performance and universal service, especially in poorer areas. Conforming technical standards are needed to facilitate cross-border interconnection and market integration. The researchers found wide variations in the levels of member countries’ market openness and telecommunications development. Some members’ interest to move forward is constrained by a lack of time and resources to build up their regulatory regimes. The study proposes a flexible, step-by- step process in which member countries can join at an appropriate stage, within a broad framework of ASEAN facilitation and support. The main stages are establishing the foundations of a regulatory regime, developing networks, introducing competition and defining service obligations, leading finally to full liberalisation. The framework will encourage harmonisation and capacity- building assistance from more experienced ASEAN members.

  Asia-Pacific School of Economics and Government, the University of the Philippines’ Society for the Advancement of Technology, and the Thailand Development Research Institute.

  Extensive negotiations have taken place and a third round is now underway. To support this process, the AADCP REPSF was asked to commission a research study to assess what has already been achieved and propose a strategic way forward. The study needed to look at ways of dealing with policy and regulatory constraints, and consider how to harmonise member countries’ standards and regulations to complement liberalisation moves. The study team was led by Dr Christopher Findlay, with researchers from the Australian National University’s

  Telecommunications are essential for free-flowing trade and therefore fundamental for ASEAN economic integration. ASEAN Economic Ministers have identified the liberalisation of telecommunications as one of the highest priorities of the ASEAN Framework Agreement on Services.

  The website is also recommended to organisations wishing to register as prospective researchers, to propose research topics or gain an overview of the Facility’s objectives and guidelines.

  On completion, study reports are submitted to the relevant ASEAN sectoral working groups for use in their policy deliberations. The executive summaries and/or full reports of several completed studies are now available in the Publications section of the REPSF website (www.aadcp-repsf.org).

  Implementation of the Vientiane Integration Agenda: A Background Paper

  Integration and Competitiveness: A Prospective Look

  Progress of ASEAN Regional Integration: The Hanoi Plan of Action towards ASEAN Vision 2020

  Besides the studies undertaken on current research needs, the ASEAN Secretariat has requested REPSF to conduct a series of strategic assessments to assist in the preparation of ASEAN’s forthcoming Vientiane Integration Agenda (VIA). The five studies that have been commissioned are:

  Expressions of interest will be called for in due course via the program website. Qualified ASEAN and Australian/New Zealand consultants and organisations interested in conducting these studies should register on the REPSF database if they have not yet done so, or may update their current entry to demonstrate relevant capabilities.

  Healthcare and IT Sectors

  Telecommunications

  IT Sectors – Towards Closer ASEAN Integration

  Customs Cargo Processing Policies and Practices in the ASEAN Region

  The Facility’s Research Priorities Committee met on 2 April 2004 and endorsed eight new projects as follows:

  The AADCP Regional Economic Support Facility (REPSF) funds research studies on topics of high priority for ASEAN economic policy-makers. The Australian Managing Contractor, Melbourne University Private Ltd, works closely with the ASEAN Secretariat (ASEC) to appoint researchers and oversee study progress.

• Regulatory Models for ASEAN
• Resource Mobilisation for the
• Monitoring and Impact Assessment Mechanisms for the VIA: A Background Paper • The Pattern of Intra-ASEAN Trade in the Priority Goods Sectors.

• Movement of Workers in ASEAN:

Report on Liberalisation of ASEAN Telecommunication Services

  Support for the priorities of ASEAN’s upcoming Vientiane Integration Agenda was an important topic for discussion when the Regional Partnerships Scheme (RPS) Joint Selection and Review Panel (JSRP) held its fourth meeting in Bali on 19 April 2004.

  Attended by ASEAN Secretariat and AusAID delegates, with representatives of the RPS Australian Managing Contractor, ACIL Australia Pty Ltd, the meeting also approved the following new partnership projects:

  Commercialising Science and Technology in ASEAN

• ASEAN Emerging and Resurging Infections: Surveillance and Response Program.
• Developing ASEAN Common Competency Standards for Tourism Professionals • Workshop for Public Prosecutors and the Judiciary on Enforcement of Intellectual Property Rights • Establishment of a Reference Laboratory for the Southeast Asian Foot and Mouth Disease Control Program (which complements Program Stream assistance to animal health surveillance)
• Computer Security Incident Response Team Capacity Building.
• Development of Regional Competency Standards for Training in Renewable Energy Two other projects were approved at an inter-sessional JSRP meeting in February:
• Market Analysis: Managing and

  Approved RPS applications cover a wide sectoral spread, as also do the project concept papers received by the RPS Coordination Unit in the ASEAN Secretariat. Preparing concept papers allows proponents to develop their ideas with assistance from the RPS team. Full details of the application process are available on the RPS website (www.aadcp.org/rps), which also provides information on current RPS activities.

  ASEAN is due to adopt the new Vientiane Integration Agenda (VIA), the successor to the current Hanoi Plan of Action (HPA), at the ASEAN Summit in November 2004. To help focus RPS proposals on the new Agenda’s priorities, the ASEAN Secretariat has offered to provide an outline of the VIA for posting on the RPS website within the next two months. Organisations currently developing RPS proposals will be directly advised about aligning these with the new Agenda.

  The meeting also reviewed the RPS regionality criteria to bring these into line with ASEAN’s Bali Concord II, which focuses on building an ASEAN community. Monitoring and evaluation will be strengthened through monitoring visits to ASEAN member countries by the RPS management team, and by continuing development of measures to relate project outcomes to broader ASEAN goals of greater and deeper economic integration.

  Regional Partnerships Scheme Prepares to Support ASEAN’s Vientiane Integration Agenda

Enhancing Energy Policy Planning in Cambodia, Laos and Myanmar

  Efficient energy usage has long been an ASEAN priority and a continuing focus of ASEAN-Australian scientific and technical cooperation. An AAECP Phase

  III project building regional capacity in energy sector modelling and policy analysis is coming to conclusion now. An important objective for AADCP is extending past project achievements to ASEAN’s newest members. Whereas Vietnam participated in the Phase III Energy Project, Cambodia, Laos and Myanmar (CLM) were observers. Their interest in the project technology led to a new AADCP activity to help them develop their own energy sector modelling capacity. It will assist CLM decision-makers to identify least-cost options for meeting the demands for energy services and also to join in cross-regional energy policy initiatives. The Energy Policy and Systems Analysis Project for CLM Countries is implemented by SMEC International Pty Ltd and Intelligent Energy Systems Pty Ltd, in cooperation with the ASEAN Center for Energy, Cambodia’s Ministry of Industry, Mines and Energy, Myanmar’s Ministry of Energy and the Ministry of Industry and Handicrafts, Laos.

  Each partner country has formed a National Coordinating Committee (NCC) and a National Project Team (NPT). NCCs consist of senior policy makers from energy and related sectors who oversight project activities. NPTs are made up of energy sector professionals who research and analyse policy issues and options, disseminate information and facilitate policy debate.

  The NPTs have been provided with computer hardware, ANSWER/MARKAL modelling software and GAMS/MINOS modelling and optimisation software. Basic training in MARKAL for representatives of the three NPTs was held in Phnom Penh in November 2003. Follow-up training then took place, with a database and working MARKAL model established for each country. As part of the project’s First Regional Policy Study, participants are now preparing to take part in technical exchanges, to enhance their awareness of common energy issues and their skills in policy analysis. The project is expected to conclude with the production of a National Policy Issues Report in January 2005.

  National Project Team attending an EPSAP-CLM follow-up training session.

Au

Strengthening Animal Health Management and Biosecurity

  The first Program Stream tender round is now complete, with Australian Implementing Partners (AIPs) appointed for four projects as follows:

  First Four Program Stream Projects Commence Inception Stage

  Reliable animal health surveillance is crucial for ASEAN’s food security. It is also a prerequisite for expanding livestock exports, both within the region and worldwide. Farmers stand to gain from increased market access, as well as from reduced stock losses due to timely disease control. When diseases like Avian Flu ‘cross over’ as threats to human health, the need for surveillance is clear.

• Legal Infrastructure for E-commerce in ASEAN - Galexia Consulting and Baker McKenzie;
• Enhancing Skills Recognition Systems in ASEAN -

  usAID

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  Australian Expert Group in Industry Studies (AEGIS), University of Western Sydney, with Asia Policy Research – Solutions for Asia’s Development, Thailand, and TAFE Global, NSW;

• Quality Assurance Systems for ASEAN Fruit and

  Vegetables – RMIT International Pty Ltd with the Victorian Department of Primary Industries and the Queensland Department of Primary Industries and Fisheries;

  The AIPs are now commencing inception activities in the field. These include meeting with relevant ASEAN Secretariat and Sectoral Working Group personnel, to identify the project leaders from each partner country and establish the Project Coordinating Group. Next steps are to plan a forward schedule of project activities and, where necessary, update the project design in the light of current developments.

  Meanwhile, the appointment of AIPs for three new Program Stream projects is well in train. It is expected that tenders will close in late May 2004, assessment will be completed by the end of June and the projects will commence by mid-August. The second group of activities includes:

• Strengthening ASEAN Standards and Conformity Assessment Project • Enhanced Customs Capacity Building in ASEAN Project • Strengthening Animal Health Management and Biosecurity in ASEAN Project.

  More information about the AIP selection process, ongoing Program Stream activities and the third group of projects which will go to tender at a later stage can be found on the program website (www.aadcp.org/ps).

  The ASEAN Working Group on Livestock (ASWGL) takes a leading role in regional animal health management and biosecurity. Amongst its important achievements is a regional framework for monitoring Foot and Mouth Disease. ASWGL has proposed a Program Stream project promoting international best practice in risk assessment, disease surveillance and development of a coordinated animal health information system, with particular support for the needs of newer ASEAN members, Cambodia, Laos, Myanmar and Vietnam. This project will continue a long tradition of ASEAN-Australian cooperation in animal health. Tendering is underway to select an Australian Implementing Partner (AIP) to work in conjunction with the ASWGL, livestock health authorities in ASEAN member countries and the ASEAN Secretariat. The project’s risk analysis component will deal with assessing and managing risks involved in the importation of livestock and livestock products. Surveillance will cover systematic investigation to assist control programs or verify that areas are disease-free. Intensive training will be offered to practitioners from ASEAN countries’ livestock agencies, who will also undertake field- based practical exercises mentored through an internet-based learning facility. The proposed regional information system will draw on the existing Animal Health and Production Information System for ASEAN (AHPISA). The project will explore with ASEAN stakeholders what this database can reasonably achieve, what information it should contain and how it should be managed in the long term. Nominations will be sought for country coordinators as well as a designated system administrator from the agreed ASEAN host agency. The key challenges for this activity are harmonisation of data reporting standards and ensuring sustainable inputs. If these are successfully met, the database holds great potential both for boosting livestock trade and improving animal health region-wide.

• Quality Assurance and Safety of ASEAN Fish and Fishery Products Handling, Processing and Packaging – Australian Marine Science and Technology Ltd (AMSAT) with the Australian Maritime College and the Southeast Asian Fisheries Development Centre (SEAFDEC).

  Controlling livestock diseases improves farmers' income and access to markets (Photo courtesy of ACIL Australia Pty Ltd)

  On 17 February 2004, the AIPs attended a briefing at the Melbourne office of the Program Stream’s Australian Managing Contractor, ACIL Australia Pty Ltd. This session was useful for clarifying coordination and management arrangements, the AIPs’ reporting responsibilities and other issues for successful project implementation. A new AusAID publication entitled

  ASEAN and Australia: 30 years of development cooperation traces the

  evolution of the cooperation program. It pays tribute to the program’s achievements during its four phases briefly described below.

  In 1974 Australia became ASEAN’s first dialogue partner. ASEAN was then a young regional grouping, formed in 1967. The ASEAN-Australia Economic Cooperation Program (AAECP) was established as a framework for technical assistance and capacity- building, to provide practical support for ASEAN’s development. From the start, activities were implemented through ASEAN sectoral working groups and committees, so that they encouraged intra-regional collaboration as well as building ASEAN-Australian ties. Some Phase I networks and initiatives, like the ASEAN Food Journal, are still in effect today. The program also had flexibility to respond to emerging needs. AAECP Phase I initially concentrated on aspects of food science and agriculture. Later it widened into many social and scientific fields. In 1985, for example, 25 separate activities were under way, thus greatly diversifying ASEAN-Australian connections.

  In the light of expanding ASEAN- Australian trade, the program was re-focused on six larger projects aimed at fostering mutual benefits and commercial opportunities. The projects covered trade and investment promotion, science and technology transfer and post-harvest agriculture, with emphasis on the commercialisation of project outcomes.

  A shared commitment to environmental sustainability gave rise to new activities in biotechnology, marine science and energy conservation. The program continued to build strong working linkages between scientists and officials within ASEAN as well as between ASEAN and Australian project partners.

  The program was revised at this stage to build on earlier successes while increasing its relevance to ASEAN-Australian economic objectives. It included a Projects Stream made up of six large projects, in fields of ASEAN development priority and complementary Australian expertise.

  The ASEAN Secretariat took on a coordinating role which is now a major feature of program management. There was also a Linkages Stream, the forerunner of the present Regional Partnerships Scheme, to which ASEAN and Australian partners could apply for ‘start-up’ funding for joint projects. The scheme supported innovative business ventures with associated social benefits, such as better water supplies and use of renewable energy resources. Reviewing the program’s achievements, ASEAN and Australia agreed that it still had great potential for advancing their mutual goals. It was decided to pursue a further phase to support ASEAN’s far- sighted integration agenda, help expand its access to global markets and assist the newer ASEAN members, Cambodia, Laos, Myanmar and Vietnam (CLMV) to participate in regional initiatives.

  Planning for the new six year, A$45 million program, renamed the ASEAN-Australia Development Cooperation Program (AADCP), began in 1999. Developed after extensive consultation, this program addresses priorities and challenges of great importance to both partners, including the expansion of economic links, trade facilitation, economic progress and regional security.

  Activities are designed to help realise ASEAN’s integration and competitiveness objectives, to assist in reducing poverty through economic growth and good governance, and give effect to the partners’ strong interest to work together for regional stability and prosperity.

  AADCP’s components - the Program Stream, the Regional Partnerships Scheme and the research-focused Regional Economic Policy Support Facility - are described in other sections of this newsletter. The progress of all three components augurs well for the continued vitality and benefits of ASEAN- Australian cooperation.

  A History of ASEAN-Australia Development Cooperation aadcp newsletter

  The trial of an Australian-designed wind-powered energy system in Sarawak, Malaysia, as part of the Remote Area Power Supply Project, AAECP Phase III.

The current cooperation program

Phase II: 1989-1994

Phase 1: 1974-1989

Phase III: 1994-2004

• 26th – Workshop to discuss options for harmonised legal infrastructure for e-commerce in ASEAN, under PS
• 14th June – 30th July Technical exchanges for Cambodia, Laos and Myanmar (CLM) participants at ASEAN
• 23rd – 25th Presentation of report on review of national, regional and international laws and standards by AMSAT to ASEAN Working Group on Coastal and Marine Environment, under RPS Project Capacity Building for the

• 2nd AADCP Joint Planning Committee Meeting, Australia (TBC)
• ASEAN Workshop on Hazards and Controls in Seafood Processing, under PS Project Quality Assurance of ASEAN
• Commencement of series of 1 week national training courses across ASEAN Member Countries, under RPS
• AADCP Stakeholder Workshop, Jakarta (TBC)
• Program Stream – 1st Program Coordination Committee meeting, Jakarta (TBC)
• Regional consultative workshop for RPS Project Development of the ASEAN Strategic Plan of Action on Water

  Program Stream Dr Greg Gibbons Program Director The ASEAN Secretariat, Second Floor

  70A Jl. Sisingamangaraja Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 739-8234 Email m.balamiento@aseansec.org Sarah Hamilton Project Manager ACIL Australia Pty Ltd 854 Glenferrie Road Hawthorn Vic 3122 AUSTRALIA Tel. +61 3 9819 2877 Fax +61 3 9819 4216 Email: sarah.hamilton@acil.com.au

  RPS Maria Eloida Cruz Balamiento Project Coordinator

The ASEAN Secretariat, Second Floor

  70A Jl. Sisingamangaraja Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 722-9028 Email: john@aseansec.org Steven Watkins Project Manager Melbourne University Private Ltd 442 Auburn Road Hawthorn VIC 3122 AUSTRALIA Tel. +61 3 9810 3186 Fax. +61 3 9810 3100 Email: s.watkins@muprivate.edu.au

  REPSF John Cunningham Facility Coordinator The ASEAN Secretariat, Ground Floor

  Resources Management, hosted by CSIRO and ASEAN Secretariat (TBC)

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newsletter events contacts

  September 2004

  Collaboration for Combatting Terrorism, hosted by The Distillery August 2004

  Project Basic Course for Senior Officials in the Theory of Counter Terrorism Recognition and Multilateral

  Fish and Fishery Products Handling, Processing and Packaging, hosted by AMSAT, Jakarta

  Implementation of the ASEAN Water Quality Guidelines Criteria July 2004

  Centre of Energy, under RPS Project Energy Policy and Systems Analysis Project for CLM Countries

  June 2004

  Project Legal Infrastructure for E-Commerce, hosted by Galexia Consulting and Baker & McKenzie, Singapore

  May 2004

  70A Jl. Sisingamangaraja Jakarta 12110 INDONESIA Tel. (62-21) 724-3372, 726-2991 Fax (62-21) 7278-7252 Email greg.gibbons@aseansec.org Susan Majid Program Manager ACIL Australia Pty Ltd 854 Glenferrie Road Hawthorn Vic 3122 AUSTRALIA Tel. +61 3 9819 2877 Fax +61 3 9819 4216 Email: susan.majid@acil.com.au