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MEMORANDUM OF UNDERSTANDING ON THE ASEAN POWER GRID

The Governments of the Association of Southeast Asian Nations, namely: Brunei Darussalam, the Kingdom of Cambodia,  the  Republic  of  Indonesia,  the   Lao Democratic Republic, Malaysia, the Union of Myanmar, the Republic  of the the  Republic  of Singapore,  the Kingdom of Thailand, and the Socialist Republic of Viet Nam (hereinafter referred to collectively as "ASEAN" or "Member Countries",  or individually,  as "Member

RECALLING the Agreement on ASEAN Energy Cooperation signed   in   Manila,   Philippines,   on   24th June 1986, which emphasised cooperation among the Member Countries in developing energy resources to strengthen the economic resilience of the individual Member Countries as well as the economic resilience and solidarity of ASEAN, and developing strategies to promote energy-related trade within the ASEAN region;

RECALLING also that the ASEAN Vision 2020 adopted by the ASEAN Leaders on 15th December 1997 at the Second ASEAN Informal Summit in Kuala  Lumpur,  Malaysia,  called for the establishment of electricity interconnecting arrangements within ASEAN through the ASEAN Power  Grid,  (hereinafter referred to as the "ASEAN  Power

RECOGNISING the objectives of the Forum of the Heads of ASEAN Power Utilities/Authorities (HAPUA)  to,  among others, promote the creation of regional power interconnection projects through the exchange of experience and information on planning, construction and operation of interconnected systems, the acquisition of appropriate technology    and    methodology    on    all  aspects of an interconnected and  joint   studies   on  transfer  of electrical  energy through  interconnection;

RECALLING further that the ASEAN Plan of Action for Energy  Cooperation  (APAEC)  1999-2004  adopted  at the 17th ASEAN Ministers on Energy Meeting (AMEM) held in Bangkok, Thailand on 3rd July and the ASEAN Plan of Action for Energy Cooperation  (APAEC) 2004-2009   adopted at the 22nd  AMEM  in  Makati Metro  Manila, Philippines on 9th June 2004, called for instituting policy framework and implementation modalities and facilitating the implementation of the ASEAN Interconnection Master Plan, with the view towards the early realisation of the ASEAN Power Grid;

ACKNOWLEDGING the policy goals of the ASEAN Power Grid's Roadmap for Integration approved at the 20th AMEM Meeting in Indonesia  on  5th  July  2002,  and the 2003 Final   Report  of  the  ASEAN   Interconnection  Master Plan Study (AIMS) endorsed by 21st AMEM in Langkawi, Malaysia on 3rd July 2003 to be the reference document for the implementation of the power interconnection projects in the ASEAN region;

RESPONDING to the ASEAN Leaders' strategic thrust in the Vientiane Action Programme (VAP) 2004-2010 adopted  in the Tenth ASEAN Summit in Vientiane, Lao PDR on 29th November  2004,  for  the  significant  implementation  of the ASEAN Power Grid through an established policy framework and modalities for power interconnection and trade, as well as enhanced energy infrastructure facilities in ASEAN with the commissioning of power interconnection projects;

AFFIRMING that the ASEAN Power Grid would create economic benefits and opportunities for power exchange and trade amongst the Member Countries;

MINDFUL of the need to recognise, coordinate and rationalise these efforts, plans and programmes for power interconnection and trade; 

RECOGNISING that the involvement of the governments of the Member Countries and participation of the private sector are needed to support these plans and programmes for the realisation of the ASEAN Power Grid;

HAVE AGREED AS FOLLOWS:

ARTICLE I OBJECTIVE

The Member Countries, subject to the terms of this Memorandum   of and  the   laws,   rules, regulations and national policies from time to time in force in each member country, agree to strengthen and promote a broad framework for the Member Countries to cooperate towards the development of a common ASEAN policy on power interconnection and and ultimately towards the realisation of the ASEAN Power Grid to help ensure greater regional energy security and sustainability on the basis of mutual benefit.

ARTICLE II GENERAL PROVISIONS

Member Countries shall:

Establish cooperation on a bilateral and/or multilateral basis, on the various aspects of the development of the common ASEAN policy on power interconnection and trade and the realisation of the ASEAN Power Grid;

1. Initiate studies and updates either on a bilateral or multilateral basis, to support and encourage the implementation of the power interconnection projects in ASEAN, having reference to, among others, the 2003 Final Report of the ASEAN  Interconnection  Master Plan Study;
2. Encourage cooperation and pooling of  resources  by the  governments   and/or  private   sector  for  joint  projects subject to commercial viability pertaining to the ASEAN Power Grid;
3. Subject to, and consistent with, the national laws of each Member Country, take individual and collective initiatives to study, assess, and review national and regional legal and institutional frameworks for power interconnection and concerning  cross-border  issues  relative  to the commercial and economic feasibility,  construction, operation,  and  maintenance  of the ASEAN Power as herein below agreed upon.

ARTICLE III CROSS-BORDER ISSUES

Member Countries shall conduct studies on the following:

1. Technical

Harmonisation of technical specifications for the ASEAN Power Grid, such as, but not limited to, design and construction standards, system operation and maintenance codes and guidelines, environment and measurement standards which are internationally recognised by the electricity supply industry.

2. Financing

Available modes or arrangements for the financing of the construction, operation and maintenance of the ASEAN Power Grid. In this respect, ASEAN recognise the important role that would be played by the private sector in some Member Countries.

3. Taxation and Tariff

Arrangements  for the      mutually  agreed      imposition      or exemption  from,  import,  export  or transit  fee,  duty,  tax or other government imposed fees and charges on the operation,  and  maintenance  of  the  ASEAN Power Grid.

 4. Regulatory and Legal Frameworks

Harmonisation of regulatory and legal frameworks within ASEAN to hasten the implementation of bilateral or cross- border power interconnection and trade.

5. Electric PowerTrade

Institutional and contractual arrangements for power trade. These arrangements shall take into account the different levels of development or maturity of the electricity supply industry in individual Member Countries.

6. Third PartyAccess

Arrangement for third party access for power interconnection and trade in accordance with such internationally accepted standards in the electricity supply  industry and formulation  of a transmission pricing framework within ASEAN.

ARTICLE IV

PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

1. The protection of intellectual property rights shall be enforced in conformity with the  respective  national  laws, rules and regulations of the Member Countries and  with other international agreements signed by the Member Countries.
2. The use of the name, logo and/or official emblem of any of the Member Countries  on any document and/or paper is prohibited without the prior written  approval  of the relevant Member Country/Countries.
3. Notwithstanding  anything   in  paragraph  1 the intellectual property rights in respect of technological development, products and  services  development, carried out:

- Jointly by the Member Countries or research results obtained through the joint activity effort of the Member Countries, shall be jointly owned by the Member Countries concerned in accordance with the terms to be mutually agreed upon; and

- Solely and separately by the Member Country or the research results obtained through the sole and separate effort of the Member Country, shall be owned by the Member Country concerned.

ARTICLE V INSTITUTIONAL ARRANGEMENTS

1. The Heads of ASEAN Power Utilities/Authorities (HAPUA) Council, being responsible for the effective implementation of the ASEAN Power Grid, shall initiate the formation of an ASEAN Power Grid Consultative Committee to be composed of representatives from  Member Countries and the HAPUA Member Utilities. This ASEAN Power Grid Consultative Committee shall facilitate and assist the HAPUA Council in the implementation of this Memorandum of Understanding.
2. The HAPUA Council shall submit periodic reports on the implementation of this Memorandum of Understanding to the ASEAN Ministers on Energy Meeting (AMEM), through the ASEAN Senior Officials Meeting on Energy (SOME).

ARTICLE VI CONFIDENTIALITY

All Member Countries shall observe the confidentiality of documents,  information  or  data  received  pursuant  to  the implementation of this Memorandum of Understanding. This obligation shall be observed by Member Countries during the period of validity of this Memorandum of Understanding and after  the expiry or  termination of  this Memorandum of unless otherwise agreed by all Member Countries.

ARTICLE VII SETTLEMENT OF DISPUTES

Any claim or dispute between two (2) or more of the Member Countries, arising out of the interpretation  or implementation of this Memorandum of Understanding will be settled amicably by consultations or negotiations between  the Member Countries involved in the claim or dispute.

ARTICLE VIII SUSPENSION

Each Member Country reserves the right, for reasons of national national   interest,   public  order or  public health, to suspend, temporarily, either in whole or in part, the implementation of this Memorandum of Understanding. A Member Country shall give notice of its intention to suspend the said implementation of this Memorandum  of Understanding by giving written notice to the Secretary General of ASEAN, who shall immediately notify all other Member Countries. Such suspension shall take effect immediately after notification has been given to the other Member Countries.

ARTICLE  IX

RELATION TO OTHER AGREEMENTS

1. Agreements with Non-ASEAN Member Countries

This Memorandum of Understanding shall not restrict any Member Country from  having  similar agreements with  non-ASEAN Member Countries provided that such agreements do not create and/or impose obligations upon a Member Country that is not a party to such agreements, and that such agreements shall not impair and/or prevent a Member Country who is a party to such agreements from fulfilling its obligations under this Memorandum of Understanding.

1. Other ExistingAgreements

The Member Countries hereby undertake that they shall continue to respect their rights and obligations under any other similar to which they are  also  parties, on power interconnection and electric power trading existing prior to this Memorandum of Understanding.

ARTICLE X FINALPROVISIONS

1. This Memorandum  of Understanding  shall  be  deposited with the Secretary- General of ASEAN who shall promptly furnish a certified true copy to  each  Member Country.
2. This Memorandum of Understanding is subject to ratification or acceptance by all the Member Countries. The Instrument of Ratification or Acceptance shall be deposited with the Secretary-General of ASEAN who shall promptly inform each Member Country of such deposit.
3. This Memorandum of Understanding shall enter into force upon the deposit of Instruments of Ratification or Acceptance by all the Member Countries with the Secretary- General of ASEAN.
4. This Memorandum of Understanding shall remain in force for a period of fifteen (15) years, unless terminated earlier by agreement of all the Member Countries. The expiry or termination of this Memorandum of Understanding  shall be  without  prejudice  to  the  rights  and  obligations  of  the Member Countries arising from this Memorandum of Understanding prior to the effective date of expiry or termination of this Memorandum of Understanding.
5. A Member Country may at anytime give notice of its intention to withdraw from this Memorandum of Understanding, by giving written notice to the Secretary - General of ASEAN, who shall immediately notify all other Member Countries. Such withdrawal shall take effect six (6) months from the date of the said notice.
6. This Memorandum of Understanding may be extended beyond its period of as stipulated  in paragraph 4 of this Article, with the agreement of all Member Countries.
7. Any Member Country may propose any amendment to the provisions of this Memorandum of Understanding. Such amendment shall be effected by written consent of all the Member Countries. Any amendment to this Memorandum of Understanding shall be without prejudice to the rights and obligations of the Member Countries, prior to the effective date of such amendment.

IN WITNESS WHEREOF, the undersigned, being duly authorised by their respective governments, have signed this Memorandum of Understanding on the ASEAN Power Grid.

DONE at Singapore on this Twenty-Third day of August in the Year Two Thousand and Seven, in a single original copy in the English Language.

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