ASEAN Connectivity and Public‒Private Partnerships H.E. Amb. Latsamy Keomany Chair, ASEAN Connectivity Coordinating Committee 2016 G20-IIWG Event: Strengthening Global Infrastructure Connectivity Forum Singapore, 27 April 2016

ASEAN as Investors’ Destination, 2014 ASEAN’s Growth Rate 4.6% Merchandise Trade US$ 2.53 trillion Land Area 4.44 million km2 Population 625 million FDI US$ 136 billion GDP at current prices 2.57 trillion Source : ASEANStats, 2014

Where are we now in connecting the region?

Physical Connectivity ASEAN Highway Network (AHN) Upgrade ‘Below Class III’ sections Complete missing links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Singapore-Kunming Rail Link (SKRL) Construct missing links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ASEAN Power Grid Implement the Melaka-Pekan Baru Interconnection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Implement the West Kalimantan-Sarawak Interconnection Maritime Transport Conduct feasibility study on the establishment of an ASEAN Roll-on/Roll-off (RO-RO) Network and Short-Sea Shipping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Establish efficient and reliable shipping routes (including RoRo) connecting mainland and archipelagic Southeast Asia Enhance the performance and capacity of the 47 designated ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Challenges in Implementing MPAC 2010 Financing large infrastructure requirements Capacity for project development, operations and management Coordinating delivery of MPAC

ASEAN Infrastructure Financing Needs UNCTAD (2015) McKinsey Global (2014) Goldman Sachs (2013) Bhattacharyay et al. (2012) ADB-ADBI (2009) Annual Est. (US$B) 110 196 69 100 60 Sectors covered Power, transport, telecoms, WSS Power, transport Power, transport, telecom, WSS Period covered 2015-25 2014-30 2013-30 2010-30 2010-20 AMS Covered All ASEAN Member States Only IND, MAL, PHI and THA All except BRU and SIN Source: ASEAN Secretariat, McKinsey Global Institute, UNCTAD

Current ASEAN Efforts on PPP ASEAN PPP Program with World Bank ASEAN PPP Guidelines with ERIA ASEAN Principles for PPP Frameworks with OECD ASEAN Infrastructure Fund with ADB ASEAN Risk Mitigation Instruments with OECD ASEAN PPP Networking Forum

ASEAN World Bank PPP Programme 10 Project Briefs 8 Project Roadmaps Sources: MPAC and ASEAN initiatives Country PPP initiatives ERIA Study Draft Long List: 40 pjts SHORT LIST: 10 projects Universe List: 258 projects Long List: 29 projects SM1 Pass/Fail test for Red Flags 3 main criteria: Strategic Relevance Level of project development Project feasibility SM2 Ranking: Quantification 2 main criteria: Strategic Fit Project Readiness and PPP Enabling Environment

Potential ASEAN PPP Projects Project Name (Country) ASEAN Relevance 1 Bien Hoa–Vung Tau Expressway (VIE) Connects to deep sea ports & industrial zones 2 Central Luzon Link Expressway (PHI) Lowering logistics costs: better access to market 3 Kanchanaburi–Phu Nam Ron Motorway (THA) Connects Dawei port to Thailand; GMS corridor 4 Laos Road No. 3 (ASEAN Highway No. 3) Transit route between Laos, Thailand, China 5 Makassar Port (IND) ASEAN 47 port, largest port in Sulawesi, Sea Toll plan 6 Manado–Bitung Toll Road (IND) Connecting Sulawesi’s 2 major economic centres 7 North Luzon Expressway East (PHI) Decongesting Metro Manila 8 Trans-Sumatra Toll Road (IND) Intra-Sumatran connectivity; link to Java; ASEAN highway

Moving Forward: ASEAN Connectivity 2025 Sustainable Infrastructure Digital Innovation Seamless Logistics Regulatory Excellence People Mobility ASEAN Connectivity 2025

Thank you