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GREATER MEKONG SUBREGION

REGIONAL INVESTMENT 

FRAMEWORK 

IMPLEMENTATION PLAN 

(2014–2018)

2015

Copyright © 2014, 2015

How to reach us: GMS Secretariat 

Southeast Asia Department 

Asian Development Bank 

Fax: +63 2 636 2226 

E-mail:[email protected] 

Download RIF-IP at: http://www.adb.org/countries/gms/strategy

Contents

Abbreviations.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. v

I. Introduction .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. . .. . .. 1

A. Background and Rationale . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 1

B. Scope and Timetable of the RIF-IP .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 2

II. Criteria for Determining High Priority Projects . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .. . ...     3

III. Sector Strategies and High Priority Projects. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..  . .. . ... .. 5

A. Overview. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .5

B. Transport .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .6

C. Energy . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..9

D. Agriculture . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .9

E. Environment.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . 10                

F. Human Resource Development  .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 11

G. Urban Development.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .12

H. Tourism . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .13

I. Transport and Trade Facilitation. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..14             

J. Information and Communication Technology.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .14

K. Other Multisector/Cross-Border Economic Zones .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 15

IV. Monitoring and Evaluation.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..   17

A. Scope and Objectives. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .17

B. System Characteristics.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .17

C. Milestones and Indicators . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . 17

D. Process and Progress Reports. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..18

E. Timing and Schedule . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .19

F. Institutional Arrangements. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .19

G. Conclusion . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .19

V. Resource Mobilization . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..  21

Appendixes

1. Project Status Report Template . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..23
2. Tasks of GMS Bodies by Sector  . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .24

List of Tables

Table 1: Priority Projects by Sector . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ..5

Table 2: Transport Priority Projects . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . 7

Table 3:  Energy Priority Projects    .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . 9

Table 4:  Agriculture Priority Projects .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .10

Abbreviations

     ADB                 –           Asian Development Bank

     ASEAN             –           Association of Southeast Asian Nations

     CBEZ                –          cross-border economic zone

     CEP                  –          Core Environment Program

     GMS                 –           Greater Mekong Subregion

     GMS-SF            –           GMS Strategic Framework

     HRD                 –           human resource development

     ICT                   –           information and communication technology

     IP                     –           Implementation Plan

     Lao PDR           –          Lao People’s Democratic Republic

     M&E                 –           monitoring and evaluation

     PPP                  –           public–private partnership

     PPTA                –           project preparatory technical assistance

     PRC                  –           People’s Republic of China

     RETA                –           regional technical assistance

     RIF                   –           Regional Investment Framework

     RIF-IP               –           Regional Investment Framework Implementation Plan

     TA                    –           technical assistance

     TSS                   –           Tourism Sector Strategy

     TTF                 –          transport and trade facilitation

I. Introduction

he Greater Mekong Subregion Regional Investment Framework Implementation Plan, 2014-2018 (RIF-IP) identifies a robust pipeline of 93 high priority projects from among the more than 200 projects included in the Greater Mekong Subregion Regional Investment Framework, 2013-2022(RIF). The total cost of the priority projects in the RIF-IP is estimated at US$30.4 billion, or approximately US$20 billion less than all of the projects included in the RIF 

The transport sector comprises the largest number of projects in the RIF-IP as well as the highest share of total estimated investment costs. This reflects the high priority placed on completing the remaining corridor gaps and developing full-fledged economic corridors throughout the subregion.

The 93 projects in the RIF-IP have been prioritized for their potential to attract support from development partners and the private sector. The RIF-IP sets forth the parameters for a resource mobilization campaign to address financing needs and establish a monitoring and evaluation (M&E) system to track the status of individual projects and the RIF-IP as a whole.

A. Background and Rationale

At the 19th Greater Mekong Subregion (GMS) Ministerial Conference held in Vientiane, Lao People’s Democratic Republic (Lao PDR) in December 2013, the GMS Ministers endorsed the RIF and its comprehensive pipeline of investment and technical assistance (TA) projects for the next decade of the GMS Program.^[1]The GMS Ministers agreed on the need for an effective IP for the RIF, with clear institutional responsibilities for monitoring implementation and intensive efforts to mobilize required resources.

In a Joint Ministerial Statement, the GMS Ministers articulated the following principles and directives to guide the GMS Program in implementing the RIF: 

• The RIF must be treated as a living framework; thus, the RIF and its implementation must be regularly reviewed to ensure its continued relevance and responsiveness.
• A manageable program for achieving quick and concrete results must be formulated and pursued. In this regard, the GMS Ministers directed officials to 

 — prepare an IP consisting of high priority subregional projects that can attract the participation of development partners and private investors;  

           — complement the IP with a sound M&E system;

 — formulate and conduct a broad-based resource mobilization campaign to tap new financing sources and modalities, not only from GMS members and traditional development partners, but also from the private sector; 

 — explore new opportunities in implementing the RIF and sharing knowledge, experience, and expertise; and

 — ensure that the GMS Program and the RIF support the transformation of transport corridors into economic corridors, promote sustainable and balanced development of the Mekong subregion, and facilitate subregional integration. 

B. Scope and Timeline     of the RIF-IP

The RIF-IP includes 93 high priority investment and TA projects to be implemented in 2014–2018. The criteria used to select these projects are outlined in Section II. The priority projects encompass the core sectors and areas of cooperation under the GMS Program as described in Section III. Measures for monitoring the progress of individual projects and the RIF-IP as a whole are described in Section IV. Potential financing sources and mechanisms are presented in Section V. 

II. Criteria for Determining High Priority Projects

he following set of criteria was adopted for prioritizing projects: 

• Subregional development benefits and impacts. The project has a strong subregional rationale. The expected benefits and impacts include improved connectivity and competitiveness; and strengthened approaches to health, education, and environmental issues.
• Economic and social viability. The project is likely to be economically viable and, where relevant, financially viable and/or likely to produce social benefits.
• Implementation schedule. Implementation of the project will commence by 31 December 2018. 
• Availability of financing. The project has identified financing sources, including potential funding from the Asian Development Bank (ADB), development partners, and the private sector.
• Status of preparation. Technical, social, and environmental impact assessments for the project have been initiated or completed.
• National priorities. The project is aligned with a national development plan or economic development strategy, and/or is included as a priority project in the national investment program.  

Each project was rated against all six criteria, with the ratings based on a scale of 1 to 3.²The GMS Secretariat, in coordination with the concerned ADB sector divisions, performed an initial rating of the projects in each sector or area of cooperation. These were discussed, validated or amended, and endorsed by the respective Sector Forum, Working Group, or Task Force at meetings or through consultations conducted via email. The results of the prioritization exercise are presented in Section III in the form of tables that list the highest-ranked projects by sector or area of cooperation.

²1 = does not yet satisfy criterion, 2 = partially satisfies criterion, 3 = fully satisfies criterion. 

III. Sector Strategies    and High Priority Projects

A. Overview

his section presents priority pipeline projects in the RIF-IP for the 10 sectors or areas of cooperation listed in Table 1. For each sector, the highest-ranked projects are included in the RIF-IP as flagship projects. Concerted efforts will be taken to secure financing for these projects and ensure their timely implementation. Their status will be monitored closely in accordance with the M&E system discussed in Section IV.  

Table 1: Priority Projects by Sector

The RIF-IP pipeline comprises 93 high priority projects with an initial estimated cost of US$30.4 billion, of which 61 are investment projects and 32 are TA projects. Table 1 shows the projects by sector, type (investment or TA), and estimated cost. Projects in the RIF-IP account for around 58% of the total estimated costs of the RIF. As with the RIF project pipeline, the estimated costs of transport sector projects comprise the largest share (90%) of investment projects (Figure 1). This reflects the need to fill the remaining gaps in the GMS corridor network and establish multimodal transport links. 

Figure 1: Sectoral Distribution of Investment Projects in the Implementation Plan (% of total estimated costs)

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CBEZs = cross-border economic zones, HRD = human resource development, ICT = information and communication technology, TTF = transport and trade facilitation. Source: GMS Secretariat’s illustration.

Figure 2 presents the shares of the total estimated cost of all TA projects by sector. (More details about each project included in the RIF-IP can be found on the GMS website.^[2])

B. Transport

The key thrust of the transport sector pipeline in the RIF is to complete and expand GMS transport corridors to ensure that they become true economic corridors.^[3]Along these lines, the high priority projects in the RIF-IP are aimed at

●filling the remaining gaps in the corridors, including their effective extension into Myanmar 

Figure 2: Sectoral Distribution of TA Projects in the 

Implementation Plan (% of total estimated costs)

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6%

CBEZs = cross-border economic zones, HRD = human resource development, ICT = information and communication technology, TTF = transport and trade facilitation. Source: GMS Secretariat’s illustration.

to accelerate its integration with the rest of the subregion; 

• maximizing multimodal transport linkages via roads, railways, ports, and inland water transport;
• prioritizing projects that strengthen GMS connectivity, increase trade, and promote inclusive growth; 
• giving greater attention to other important aspects of transport development such as adequate maintenance of transport assets and enhancement of road safety; and 
• improving connectivity within the subregion and expanding connectivity with other subregions, including South and Central Asia. 

Given the importance of taking a multisector approach to economic corridor development, the RIF pipeline includes integrated ports development, development or improvement of cross-border facilities, and development of logistics facilities (e.g., inland container depots and coastal terminals). 

It also includes initiatives to build institutional capacities such as the creation of a Greater Mekong Railways Association, and the establishment of research laboratories for road and bridge construction.  

The RIF pipeline for transport consists of 104  projects with an estimated total cost of US$44.10 billion, of which 92 are investment projects totaling US$44.08 billion and 12 are TA projects valued at 

Table 2: Transport Priority Projects

US$15.2 million. From this list, 52 projects with an estimated cost of US$27.4 billion, consisting of 42 investment projects (US$27.37 billion) and 10 TA projects (US$7.2 million) have been selected as high priority projects in the transport sector (Table 2). 

Continued on next page

Table 2 continued.

GMS = Greater Mekong Subregion, Lao PDR = Lao People’s Democratic Republic, PRC = People’s Republic of China, PPP = public–private partnership, RIF = Regional Investment Framework, TA = technical assistance, TBD = to be determined.

Note: List of high priority investment transport projects proposed for inclusion in the GMS RIF-IP as agreed upon at the 18th Meeting of the GMS Subregional Transport Forum held on 23–24 July 2014 in Ho Chi Minh City, Viet Nam. Source: GMS Secretariat’s compilation.

C. Energy

The objective of GMS cooperation in the energy sector is to maintain an integrated approach to delivering sustainable, secure, and affordable energy in the subregion. It is grounded in the GMS Expanded Energy Road Map (2009) and the GMS Strategic Framework, 2012–2022 (GMS-SF). The road map and the GMS-SF have four major strategic objectives: (i) enhance energy access for all sectors and communities; (ii) develop and efficiently use indigenous, low carbon, and renewable resources; (iii) improve energy supply security through crossborder trade; and (iv) promote public–private partnerships (PPP) and private sector participation (e.g., small and medium-sized enterprises). 

Guided by these strategic objectives, the proposed energy sector pipeline focuses on (i) regional power integration and interconnection projects (e.g., transmission and distribution projects); (ii) regional market development projects; (iii) hydropower project development; (iv) grid development projects for economic corridor and rural development; (v) pilot plants under a PPP framework; (vi) establishment of a Regional Power 

Table 3: Energy Priority Projects

Coordination    Center to         promote           harmonized performance standards, grid codes, and market rules; (vii) preparation of coherent renewable energy and energy efficiency plans, and development of             environmentally           sustainable       electricity infrastructure; and (viii) continued support to the Subregional Energy Forum.

The RIF pipeline for energy covers 21 projects with an estimated cost of US$3.20 billion, consisting of 13 investment projects at a total of US$3.19 billion and eight TA projects valued at US$11.5 million, with the lion’s share of energy investments focused on transmission and distribution. From this list, eight projects with an estimated cost of US$1.21 billion, consisting of four investment projects (US$1.20 billion) and four TA projects (US$6.5 million), have been selected as high priority projects (Table 3). 

D. Agriculture

The broad strategy of the Core Agriculture Support Program II, 2011–2020 is to increase subregional agricultural competitiveness           and       agribusiness 

investment in GMS economic corridors. This will be facilitated through a modernized agri-food trading system that provides links to regional and global markets. The foundation of the strategy includes agricultural research and technology that emphasizes climate-friendly agricultural development, private sector involvement to ensure sustainability, and institutional mechanisms to enhance regional cooperation. 

The proposed agriculture pipeline is guided by the strategic thrusts and priorities under the Core Agriculture Support Program II, 2011–2020 and includes projects that support the new strategic directions under the GMS-SF, including 

• widening and deepening GMS economic corridors through increased agricultural competitiveness and agribusiness investment, creating agribusiness centers in or near corridor towns and rural growth clusters, and expanding cross-border trade of agri-food products; 
• strengthening multisector linkages, especially in the context of climate change mitigation and adaptation, as a broad development issue relating to bioenergy, agriculture and food security, environment, and biodiversity conservation;
• strengthening agricultural supply chains to meet the increasing demand for food, including those of the tourism industry; 
• developing capacities and generating and sharing knowledge on regional bio-safety and risk mitigation systems, and on the control of transboundary animal diseases and invasive species;
• establishment of drought and flood monitoring systems and crop outlook systems to address risks from natural disasters;
• enhancing the Agriculture Information Network Service as an e-trade platform; and
• strengthening institutional arrangements for the Secretariat of the Working Group on Agriculture.

Table 4: Agriculture Priority Projects

The RIF pipeline for agriculture covers 13 projects with an estimated cost of US$1.28 billion, including five investment projects totaling US$1.25 billion and eight TA projects at US$25.0 million. Among these projects, four projects with an estimated cost of US$455.0 million, consisting of two investment projects (US$450.0 million) and two TA projects (US$5.0 million), have been selected as high priority projects (Table 4). 

E. Environment

The vision of an environmentally friendly and climateresilient GMS Program is grounded in the GMS Core Environment Program, 2012–2016 (CEP Phase II) and the GMS-SF, which highlight three priority thematic issues: (i) biodiversity conservation and poverty alleviation, (ii) climate change adaptation and mitigation, and (iii) capacity development. To address these issues and enhance environmentally friendly development performances in the subregion, the GMS countries have agreed to the following components of CEP Phase II: (i) improved environmental planning systems, methods, and safeguards; (ii) improved management of transboundary biodiversity conservation landscapes for sustainable livelihoods; (iii) enhanced climate resilience and promotion of low carbon development; and (iv) strengthened institutions and sustainable financing for environmental management. 

The RIF environment pipeline focuses on three strategic outcomes: (i) meet the biodiversity conservation targets of the GMS-SF; (ii) reduce and mitigate environmental risks to the RIF portfolio; and (iii) enhance the climate resilience and sustainability of the RIF investment pipeline, thereby strengthening 

GMS economic corridors. The proposed environment pipeline has the following strategic thrusts and priorities: (i) feasibility assessments for sustainable forest management, carbon sequestration, and low carbon freight transportation; (ii) service center development for multisector planning and investment decisions; (iii) integrated management approaches (e.g., landscape, protected area, ecosystem-based, and natural resource management); (iv) ecosystem-based climate change adaptation and greenhouse gas mitigation; (v) various livelihood interventions and sustainable financing solutions; and (vi) various organizational and institutional development activities to enable effective environmental management. 

The RIF pipeline for the environment covers 13 projects with an estimated cost of US$408.6 million, of which five are investment projects totaling US$360.0 million and eight are TA projects valued at US$48.6 million. Among these, four projects with an estimated cost of US$88.6 million, consisting of two investment projects (US$80.0 million) and two 

Table 5: Environment Priority Projects 

TA projects (US$8.6 million), have been selected as high priority projects (Table 5). 

F.   Human Resource    Development

Human resource development (HRD) is critical for enhancing the productivity of the workforce in the GMS; contributing to human welfare, poverty reduction, political stability, and social cohesion; and better managing externalities resulting from the increased connectivity and mobility of people, goods, and services. HRD cooperation in the GMS covers the following subsectors: education, health, labor and migration, and social development. A Strategic Framework and Action Plan for Human Resource Development in the Greater Mekong Subregion, 2013–2017 was adopted in 2012 to address the following challenges: (i) growing pressures on education and training systems to provide human resources to sustain growth, (ii) expanding demands on health systems, (iii) increasing cross-border labor migration to exploit job opportunities and meet labor shortages within the subregion, (iv) cross-border transmission of communicable diseases and human and drug trafficking, and (v) the social impact on vulnerable populations of accelerating subregional integration.

The objectives of the HRD strategy are to (i) support HRD initiatives that directly facilitate the process of subregional cooperation and integration, and (ii) 

address cross-border HRD issues directly linked to GMS integration. Along these lines, the HRD pipeline under the RIF consists of both regional and national projects with regional dimensions, and includes proposed projects aimed at meeting the skills requirements of the GMS workforce, particularly in urban growth centers and other areas along economic corridors. The pipeline includes, among others, projects that support capacity development, particularly in technical and vocational education and training, mutual recognition of core competencies and portability of qualifications across jobs and occupations, harmonization of teacher training standards, and establishment of quality assurance mechanisms.

The RIF project pipeline also emphasizes multisector linkages in workforce skills and competency in key areas like (i) tourism and food and drug safety, (ii) the prevention and control of cross-border transmission of HIV and other communicable diseases, (iii) resilience to climate change in the health sector, and (iv) social protection for migrant workers and vulnerable populations.  

The RIF HRD pipeline consists of 15 projects with an estimated cost of US$295.7 million, of which three are investment projects (US$281.4 million) and 12 are TA projects (US$14.3 million).  Among these, two investment projects (US$ 215.4 million) and two TA projects (US$ 4.0 million) have been selected as high priority projects (Table 6). 

Table 6: Human Resource Development Priority Projects 

G. Urban Development

The GMS-SF provides a central role for the urban sector through its emphasis on corridor development and multisector investments. Analytical work on the preparation of the RIF, which was reported during the 18th GMS Ministerial Conference in December 2012, highlighted the importance of multisector investment projects anchored around developing urban centers and urban–rural connectivity along GMS corridors. 

The proposed projects for the RIF urban pipeline are a combination of hardware (e.g., physical infrastructure) and software (e.g., strategic planning, capacity development, and decentralization) in pursuit of competitive, green, and inclusive towns and cities in the region. The RIF urban development pipeline includes projects that support the new strategic thrusts and directions under the GMS-SF, including (i) widening and deepening GMS economic corridors by improving urban–environmental infrastructure, upgrading urban roads, rehabilitating river ports, and implementing flood control measures; (ii) strengthening multisector linkages in the context of climate change with energy, agriculture, and environment sectors through multisector investments such as water supply, wastewater treatment, and solid waste management; and (iii) developing capacity and generating knowledge through such activities as strengthening institutional capacities for management of public investments and developing climate resilience. 

GMS = Greater Mekong Subregion, PRC = People’s Republic of China, Lao PDR = Lao People’s Democratic Republic, PPTA = project preparatory technical assistance. Source: GMS Secretariat’s compilation.

Table 7: Urban Development Priority Projects 

Lao PDR = Lao People’s Democratic Republic, PPTA = project preparatory technical assistance.

The RIF pipeline for urban development consists of eight projects with an estimated cost of US$588.5 million, of which three are investment projects totaling US$580.0 million and five are TA projects valued at US$8.5 million. Among these, four projects with an estimated cost of US$333.5 million, consisting of two investment projects (US$330 million) and two TA projects (US$3.5 million), have been selected as high priority projects (Table 7).

H. Tourism

To provide more focus to subregional cooperation on tourism, a GMS Tourism Sector Strategy (TSS) was endorsed by GMS tourism ministers in 2005. The primary objectives of the strategy are to “develop and promote the Mekong as a single destination, offering a diversity of good quality and high-yielding subregional products that help to distribute the benefits of tourism more widely; add to the tourism development efforts of each GMS country; and contribute to poverty reduction, gender equality and empowerment of women, and sustainable development, while minimizing any adverse impacts.”In 2011, based on the findings of a midterm review of the TSS, the GMS tourism ministers and the 4th GMS Summit endorsed a refocused TSS and road map for 2011–2015. A key feature of the refocused TSS is the link to the subregion’s Mekong River Tourism Corridor. 

The proposed tourism RIF pipeline is informed by the new strategic thrusts and priorities under the refocused TSS and the tourism sector midterm review completed in 2011. It covers projects that support the new strategic thrusts and directions under the GMS-SF, including (i) widening and deepening GMS economic corridors through the development of contiguous areas by improving tourism-related access infrastructure and last-mile tourism access infrastructure (e.g., river ports, highways, tourist service centers); (ii) strengthening multisector linkages, especially in the context of climate change as a broad development issue relating to energy, agriculture, food security, and environment by improving environmental services in cross-border tourism centers (e.g., sanitation and solid and waste water management); (iii) promoting sustainable tourism development in biodiversity conservation corridors, urban development centers, and coastal marine areas; (iv) strengthening tourism supply chains to meet the demands of the tourism industry; and (v) developing the institutional capacity of the Mekong Tourism Coordinating Office, expanding knowledge on sustainable tourism in the GMS, and promoting subregional marketing programs. 

The RIF pipeline for tourism covers 18 projects with an estimated cost of US$740.7 million, of which 10 are investment projects totaling US$733.6 million and eight are TA projects valued at US$7.1 million. Among these, six projects with an estimated cost of US$452.4 million, consisting of three investment projects (US$450 million) and three TA projects (US$2.4 million), have been selected as high priority projects (Table 8). 

Source: GMS Secretariat’s compilation.

I.    Transport and Trade  Facilitation

The GMS transport and trade facilitation (TTF) RIF pipeline is guided by the Transport and Trade Facilitation in the GMS: Issues and Proposed Program of Actions,which was endorsed by the 16th GMS Ministerial Conference in Ha Noi, Viet Nam in August 2010.^[4]The pipeline also covers projects that support the new strategic thrusts and priorities under the GMS-SF: (i) expand and streamline the exchange of traffic rights arrangements; (ii) enhance coordinated border management by simplifying, standardizing, and harmonizing customs procedures and operations in participating countries; (iii) support the drafting and revision of bilateral cross-border trade agreements; (iv) facilitate implementation of Single Window–Single Stop Inspection at checkpoints; (v) enhance the sanitary and phytosanitary regime for GMS trade through the modernization of relevant agencies; (vi) strengthen national and subregional institutions for trade facilitation through TA projects and partnerships with the private sector; (vii) develop an effective regional trade logistics strategy by strengthening the capacity for logistics for small and medium-sized enterprises along GMS corridors; and (vii) build capacity and improve the legal and regulatory framework by promoting transparency throughout the trade logistics chain.

The RIF pipeline for TTF consists of 10 projects with an estimated cost of US$49.1 million, of which one is an investment project valued at US$31.5 million and nine are TA projects totaling US$17.6 million. Among these, five projects with an estimated cost of US$40.6 million, consisting of one investment project (US$31.5 million) and four TA projects (US$9.1 million), have been selected as high priority projects (Table 9). 

J.   Information and     Communication      Technology

The goal of GMS in the information and communication technology (ICT) sector is to improve telecommunications linkages and promote ICT applications among GMS countries. Grounded in the GMS-SF, the proposed ICT project pipeline targets lower transaction costs and enhanced competitiveness through increased access to ICT. Specifically, projects focus on (i) prioritizing and further developing ICT infrastructure; (ii) building capacity for use of advanced technologies; (iii) advancing ICT cooperation; (iv) promoting

Source: GMS Secretariat’s compilation.

ICT applications (e.g., e-commerce, e-lending, e-government); (v) channeling human resources to ensure sustainable sector development; and (vi) continuing pilot ICT project development in rural areas. 

The RIF pipeline for ICT covers nine projects with an estimated cost of US$628.5 million, of which three are investment projects totaling US$563.5 million and six are TA projects valued at US$65.0 million. Among these, two projects with an estimated cost of US$15.0 million, consisting of one investment project (US$5.0 million) and one TA project (US$10.0 million), have been selected as high priority ICT projects (Table 10). 

K. Other Multisector/

      Cross-Border     Economic Zones

The GMS-SF emphasizes corridor development and multisector investments. The pipeline for multisector initiatives consists of projects focused on the development of economic zones, particularly cross-border economic zones (CBEZs). These projects are characterized by the following features: (i) all are cross-sector or multisector; (ii) all are cross-border, involving two or more countries; (iii) all are based along GMS corridors; (iv) most are a combination of hardware and software interventions; and (v) all are financed by both public and private 

Source: GMS Secretariat’s compilation.

sector investments. The multisector and CBEZs pipeline includes projects that support new strategic thrusts and directions under the GMS-SF: (i) the widening and deepening of GMS economic corridors through development and construction of CBEZs and industrial parks; (ii) capacity development and knowledge generation and management through competitiveness-enhancing training for special economic zone operators; and (iii) business planning and research and analysis, particularly with respect to transforming transport corridors into economic corridors. 

The RIF pipeline for multisector and CBEZs consists of seven projects with an estimated cost of US$219.7 million, of which three are investment projects at US$210.0 million and four are TA projects at US$9.7 million. Among these, four projects with an estimated cost of US$214.0 million, consisting of two investment projects (US$210.0 million) and two TA projects (US$4.0 million), have been selected as high priority projects (Table 11). 

IV. Monitoring and Evaluation 

A. Scope and Objectives

he M&E system for the RIF-IP is a systematic mechanism for collecting and analyzing information on the implementation progress of proposed projects.^[5]The M&E system aims to

• regularly assess the  progress of implementing proposed RIF-IP projects as well as the overall RIF-IP;
• identify problems and recommend necessary actions as needed; 
• provide feedback to assist with updating and/or amending the RIF-IP as well as the RIF itself; and
• provide GMS countries, development partners, and other stakeholders with regular  access to status reports on individual projects and the  RIF-IP as a whole.

B. System    Characteristics

The M&E system for the RIF-IP will

• be simple and manageable,
• be accessible to GMS countries and interested stakeholders,
• take into account the capacities of existing institutions,
• include a systematic and time-bound updating schedule,
• include milestones and indicators for monitoring progress,
• include well-defined and -understood processes and institutional arrangements, and
• have adequate financial and technical support.

C. Milestones and Indicators 

The milestones and indicators for monitoring the progress of proposed RIF-IP projects will include the following, as applicable and depending on the type of projects:

• pre-feasibility study or equivalent for non-infrastructure projects (on-going; completed);
• feasibility study or equivalent for noninfrastructure projects (on-going; completed);
• financing (source identified; financing package being negotiated; agreement on financing package reached);
• approval (project submitted for approval; project approved); and
• commencement       (prior    conditions         for commencement       completed;       project implementation commenced).

D. Process and Progress Reports

The M&E system defines a synchronized process and regular schedule for monitoring the progress of implementing the RIF-IP. The system involves the preparation, in sequential order, of the following status and progress reports: 

• Project Status Reports. On a bi-annual basis, the responsible ministries or agencies, in cooperation with the GMS National Secretariats, will prepare Project Status Reports to indicate the implementation status of individual projects in the RIF-IP. (A Project Status Report template is included in Appendix 1.)
• Sector Progress Reports.The GMS Secretariat, in cooperation with the GMS National Secretariats, will consolidate the Project Status Reports for individual sectors across all GMS countries into Sector Progress Reports which, in turn, will be submitted to the relevant Working Group, Sector Forum, or Task Force for review.
• RIF-IP Progress Report.On a bi-annual basis, the GMS Secretariat, in cooperation with the GMS National Secretariats, will also consolidate the Sector Progress Reports into an overall RIF-IP Progress Report which, in turn, will be submitted to the Senior Officials Meeting for review. The RIF-IP Progress Report will also be submitted as a deliverable at the annual GMS Ministerial Conference, and any amendments to the RIF and RIF-IP will be presented to the GMS Ministers for endorsement.^[6]
• RIF-IP Review. The GMS Secretariat, in cooperation with the GMS National Secretariats, and GMS Senior Officials will prepare a review of the RIF-IP in 2018 to assess overall implementation progress. The RIF-IP Review will also serve as the midterm review of RIF implementation and form the basis for the preparation of the successor to RIF-IP covering the remainder of the RIF period (2019–2022).

Figure 3 depictsthe M&E process, starting with the preparation of Project Status Reports for individual RIF-IP projects by the responsible ministries or agencies, in cooperation with the GMS national secretariat and with the assistance of concerned ADB sector divisions as necessary.

Figure 3: Proposed M&E Process

Responsible ministries or agencies prepare Project Status 

Reportsand transmit to the GMS National Secretariats

GMS National Secretariats collate and review Project Status Reportsand transmit to the GMS Secretariat

GMS Secretariat consolidates Project Status Reportsand prepares Sector Progress Reports for individual sectors

Working Groups, Sector Forums, and Task Forces discuss 

Sector Progress Reportsfocusing on their respective sectors and identify any proposed changes or amendments

GMS Secretariat consolidates Sector Progress Reportsinto an overall RIF-IP Progress Reporton a bi-annual basis

GMS Senior Officials Meeting discusses 

RIF-IP Progress Report

GMS Ministerial Conference considers RIF-IP Progress 

Reportand any proposed amendments to the RIF and/or RIF-IP

 RIF-IP Review

GMS = Greater Mekong Subregion, RIF = Regional Investment Framework, RIF-IP = RIF Investment Plan.

Source: GMS Secretariat’s illustration.

E. Timing and ScheduleF. Institutional 

RIF-IP Progress Report_{. Drawing upon information}              Arrangements

contained in the Project Status Reports and the Sector 

Progress Reports,the GMS Secretariat will prepare The entities responsible for specific tasks in the bi-annual RIF-IP Progress Reports for consideration M&E process are shown in Table 12. (The tasks of by the Senior Officials Meeting; the report for the GMS bodies by sector are described in Appendix 2.) first semester will be prepared by August of the current year and that for the second semester by 

February of the following year. Based on the timing G. Conclusion of the annual GMS Ministerial Conference, the GMS Secretariat will prepare a RIF-IP Progress Report, 

including any proposed amendments to the RIF and              The operationalization of the RIF-IP M&E system 

RIF-IP, for endorsement by the GMS Ministers. will require close coordination and communication between all of the responsible groups described RIF-IP Review.  A review of the RIF-IP will be in this section. By tracking the RIF-IP and its conducted in 2018 to assess progress inimplementingimplementation, the GMS countries and external the RIF-IP and its contribution to the goals of the stakeholders will be better equipped to identify GMS Program embodied in the GMS-SF. The RIF- project needs and opportunities, and secure the IP Review will also be the basis for the preparation cooperation and commitment necessary to achieve of the successor to RIF-IP covering the remainder of the development objectives embodied in the the RIF period (2019–2022). GMS-SF. 

Table 12: Tasks and Responsibilities for Monitoring and Evaluation of the RIF-IP

GMS = Greater Mekong Subregion, RIF = Regional Investment Framework, RIF-IP = RIF Investment Plan.

Note: A Project Status Report template is included in Appendix 1. Source: GMS Secretariat’s compilation.

V. Resource Mobilization

he RIF-IP will require an average of about US$6.0 billion per year in financing over the next 5 years for a total of US$30.4 billion. In comparison, the total financing mobilized for the GMS Program in 1992–2013 amounted to US$16.8 billion, or an average of around US$0.8 billion per year.^[7]Thus, resource mobilization represents a major challenge to successfully implementing the RIF-IP and such efforts will have to be stepped up considerably to raise the funds needed.

The major sources of financing for GMS projects have traditionally been the participating governments, and multilateral and bilateral development institutions. However, the amount of financing available from these sources is substantially short of RIF-IP requirements. Accordingly, future efforts should not only endeavor to increase funding from these sources, but also from the private sector. While there has been some private sector financing of GMS power and transport projects to date, PPP schemes offer additional opportunities for private sector participation in GMS infrastructure projects. PPPs, particularly those involving infrastructure projects, need to be better promoted through the establishment of legal and regulatory frameworks that attract private sector investment at both the national and subregional levels. Policy reforms should foster a more conducive business environment and promote measures to mitigate the commercial and sovereign risks faced by investors.   

There is scope for raising additional resources through the development of closer links and coordination with other regional and subregional initiatives, such as the Ayeyawady–Chao Phraya–Mekong Economic Cooperation Strategy, Japan–Mekong Cooperation Program, Bay of Bengal Initiative for Mutisectoral 

Technical and Economic Cooperation, Mekong– Ganga Cooperation, and related initiatives of the Association of Southeast Asian Nations (ASEAN). Impacts can be maximized by pooling resources for similar types of activities, such as capacity building, program and project assessment, TTF policy and regulatory reforms, and environmental management. South–South cooperation in the GMS—as exemplified by the assistance of the People’s Republic of China (PRC) and Thailand for the development of infrastructure and capacity building in neighboring countries—can also be expanded. In addition, the ASEAN Infrastructure Fund has the potential to play a larger role in the development of GMS infrastructure.

Private sector investors need to tap a range of sources for project financing. For relatively small projects, traditional bank lending may be able to meet their requirements. For larger projects involving PPPs, private investors should consider (i) corporate bond issues; (ii) debt and/or equity financing from ADB’s private sector window or the World Bank’s International Finance Corporation; (iii) co-financing arrangements between commercial banks and ADB and the World Bank; (iv) funding from bilateral development agencies such as the Japan Bank for International Cooperation, which is engaged in both public and private sector lending; and (v) credits from industrial country export credit agencies, which are increasingly financing transactions without the need for government counter-guarantees. The private sector should be provided with more information on how to avail of these funding facilities. 

The GMS Program has adopted several mechanisms for mobilizing resources from development partners and the private sector, including (i) the GMS Business Forum; (ii) road shows in India, Japan, the Republic of Korea, and Europe to promote business opportunities and private sector investments in the GMS; and (iii) the Development Partners Forum. A matrix indicating the activities of development partners in various sectors and areas of GMS cooperation will be updated for posting on the GMS website. These mechanisms will need to be strengthened in terms of their efficacy and effectiveness in mobilizing resources for the RIF-IP. Direct marketing of major flagship projects to potential funders, both in the public and private sectors, should also be conducted. 

Appendixes

Appendix 1: Project Status Report Template

Date:

Country:

Sector: 

Appendix 2: Tasks of GMS Bodies by Sector

Each of the GMS Working Groups, Sector Forums, and Task Forces will be responsible for submitting Project Status Reports on the progress of projects in their sector or area of operation (Table A2.1). In addition, the responsible groups are responsible for compiling Project Status Reports for individual projects into consolidated Sector Progress Reports.

Table A2.1: Tasks of GMS Bodies by Sector

                                               Sector                                                                    Responsible Body

                         Transport                                                                 Subregional Transport Forum

                         Energy                                                                      Subregional Energy Forum

                         Agriculture                                                               Working Group on Agriculture

                         Environment                                                            Working Group on Environment

                         Human Resource Development                              Working Group on Human Resource Dev.

                         Urban Development                                               Urban Development Task Force

                         Tourism                                                                   Tourism Working Group

                         Transport and Trade Facilitation                             Economic Corridors Forum¹

                          Information and Communication Technology       Subregional Telecommunications Forum

                         Multisector or CBEZs                                               Economic Corridors Forum¹

CBEZs = cross-border economic zones, GMS = Greater Mekong Subregion.

¹Or another body that will be designated to directly coordinate activities in these areas of cooperation (e.g., Joint Committee for the Cross-Border Transport Agreement). Source: GMS Secretariat’s compilation.

24     |  Greater Mekong Subregion Regional Investment Framework Implementation Plan (2014–2018)