TECHNICAL ASSISTANCE COMPLETION REPORT

Division: SERC TA No. and Name: Amount Approved: $950,000 5850 – REG: Facilitating the Cross-Border Movement of Revised Amount: n/a Goods and People in the Greater Subregion Executing Agency: Source of Funding: TA Amount Undisbursed TA Amount Utilized ADB JSF: $950,000 $12,926.39 $937,073.61 Governments: $40,000 Date Completion Date Approval Signing Fielding of Consultants Original Actual 16 July 1999 N/A 11 October 1999 February 2001 31 December 2005 Closing Date Original Actual February 2001 26 April 2006

Description: The TA aimed to assist the Greater Mekong Subregion (GMS) countries in addressing major transport-related cross-border issues, thus enhancing trade and investment and ensuring that economic returns from subregional transport projects are maximized.

Objectives and Scope: The RETA’s specific objectives were to (i) maintain the momentum of cooperation between and among the GMS countries and reinforce the subregional consultative process, (ii) promote the formulation and implementation of agreements that would allow the freer flow of goods and people, and (iii) further the development of subregional transport. These objectives were to be accomplished by: (i) assisting and Viet Nam to prepare annexes and protocols for their bilateral agreement; (ii) assisting PRC, Lao PDR, Myanmar, and to prepare and finalize a quadrilateral agreement for the then proposed Chiang-Rai-Kunming Transport Corridor Project; (iii) assisting PRC, Lao PDR, Myanmar, and Thailand to finalize the annexes and protocols to their quadrilateral agreement; (iv) assisting Lao PDR, Thailand, and Viet Nam to finalize the annexes and protocols to their trilateral agreement; and (v) preparing CBTA annexes to cover all the GMS countries.

Evaluation of Inputs: The RETA was developed as a follow-up to RETAs 5686 and 5749, which provided assistance to GMS countries in drafting, negotiating, and finalizing the GMS Cross-Border Transport Agreement (CBTA) involving Thailand, Lao PDR, and Viet Nam. To complement the achievements made under previous assistance, the RETA provided resources to support the accession of Cambodia, PRC and Myanmar to the CBTA. The RETA also assisted the GMS countries in drafting 20 annexes and protocols, which provided technical details to the CBTA. These annexes and protocols were prepared in consultation with other relevant agencies, such as the United Nations Economic and Social Commission in Asia and the Pacific, and the United Nations Economic Commission for Europe, to ensure that they were in line with the substantive provisions of relevant international conventions, such as Convention on Road Traffic, Convention on Road Signs/Signals, and Customs Convention on Road Traffic. A consulting firm was engaged to help implement the activities of the RETA. The consultants engaged provided the necessary expertise to support the different aspects of the RETA and overall their performance was very satisfactorily. The use of the same consultants as in previous RETAs helped provide the continuity to the process, and gave a comfort level to the participating countries regarding the consistency of approach adopted.

Evaluation of Outputs: The RETA successfully accomplished all the major tasks. The GMS Cross-Border Transport Agreement (CBTA) was finalized and signed by Transport Ministers of Lao PDR, Thailand, and Viet Nam in November 1999. In November 2001, Cambodia acceded to the CBTA, PRC in November 2002, and Myanmar in September 2003. The CBTA was ratified by all six countries and entered into force in December 2003. Consultations with GMS countries and international organizations were conducted to prepare the required annexes and protocols to the CBTA.

The RETA also supported the initial implementation of the CBTA through the conduct of tripartite meetings to finalize Memorandum of Understanding to implement the CBTA at five border crossing points (i) Lao Bao - Dansavanh; (ii) - ; (iii) - Savanakhet; (iv) - Tachilek; and (v) - . Initial implementation commenced at Lao Bao - Dansavanh on 31 June 2005. Initial implementation at Mukdahan – Savanakhet and Poipet – Aranyaprathet, is scheduled to commence in early 2007.

The original completion date of the RETA was extended to 31 December 2005 as a result of an expansion of the RETA’s scope to accommodate the important evolving needs of the GMS countries and to respond to their domestic approval procedure timelines in this sensitive area.

Overall Assessment and Rating: Overall, the TA is assessed to be very successful. The RETA’s objectives have been met and the envisaged outputs were achieved. It also contributed significantly to the accession of Cambodia, PRC, and Myanmar to the GMS Cross-Border Transport Agreement. The RETA fulfilled targeted objectives in providing assistance to the countries in preparing the annexes and protocols of the GMS CBTA.

Major Lessons Learned. Among the significant lessons learned are: (i) the critical importance of strong commitment of the member country governments in promoting cross-border movement of goods and people; (ii) that a strong national coordination mechanism is important where various line ministries and agencies are involved; and (iii) the overall coordinating role of ADB is very important.

Recommendations and Follow-Up Actions: It is recommended that ADB continue to provide assistance to coordinate the implementation of the CBTA, as a successful outcome will have far-reaching benefits for the GMS region.

Prepared by Yu-Shu Feng Designation Senior Regional Cooperation Economist