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Executive Summary EXECUTIVE SUMMARY 1. INTRODUCTION Economic Research Institute for ASEAN and East Asia (ERIA) submitted the Comprehensive Asia Development Plan (CADP) to the 5th East Asia Summit in October 2010, as a grand spatial design for infrastructure development in East Asia. The conceptual framework of the CADP, which was elaborated based on new waves of international trade theory namely the fragmentation theory and new economic geography, demonstrated how the region can pursue deepening economic integration as well as narrowing development gaps. This claim was supported by simulation analyses on the impacts of logistic enhancement to the region using the Geographical Simulation Model (GSM). CADP also provided a long list of prospective infrastructure projects which would be important to realize the policy recommendation of the CADP. During the same series of summit meetings, the 17th ASEAN Summit adopted the Master Plan on ASEAN Connectivity (MPAC) as an umbrella master plan to expedite the establishment of the ASEAN Community, during the drafting process of which ERIA also provided intellectual contribution based on the conceptual framework of the CADP. The MPAC defined three modes of connectivity, namely physical connectivity, institutional connectivity, and people-to-people connectivity, as the keys for the successful establishment of the ASEAN Community. The MPAC and the CADP share a common philosophy in the sense that both stress the importance of physical and institutional connectivity in deepening economic integration and narrowing development gaps. Although the MPAC is a plan of ASEAN, it also emphasizes the vii importance of the connectivity with neighboring countries including EAS member countries. Although the CADP successfully fulfilled its initial mission1, there still remain a number of issues to address, of the primal importance of which is the implementation of infrastructure projects and policy measures recommended in the CADP. This executive summary will summarize the current implementation status of the infrastructure projects listed in the CADP as a follow-up, and another set of prospective infrastructure projects to enhance ASEAN-India connectivity will be presented, together with key findings and policy recommendations from the second phase of an ERIA research project on the CADP. 2. IMPLEMENTATION STATUS OF INFRASTRUCTURE PROJECTS LISTED IN THE CADP Figure 1 shows current implementation status of the prospective infrastructure projects provided in the long list of the CADP. The conceptional stage means projects have only conceptual design or proposals. The feasibility study stage includes preliminary feasibility studies, bankable feasibility studies, and contract stages. The construction stage takes account of the projects under construction and the projects completed but waiting for operation. We can see more than 60% of the projects have reached at least the feasibility study stage. 1 Chairman’s Statement of the East Asia Summit (EAS), Ha Noi, 30 October 2010. “13. We commended the Economic Research Institute for ASEAN and East Asia (ERIA) for its effective contributions in enhancing regional economic integration, bridging development gaps and promoting connectivity for both ASEAN and EAS countries, including its intellectual contribution to developing the ASEAN Connectivity Master Plan. We noted the Statement of the ERIA’s 3rd Governing Board Meeting and its study identifying its future contribution to regional integration. We appreciated the completion of the Comprehensive Asia Development Plan (CADP) by ERIA in collaboration with the ADB and the ASEAN Secretariat.” viii Figures 2, 3 and 4 illustrate the current implementation status of the selected infrastructure projects in the Mekong sub-region, the Indonesia-Malaysia-Thailand Growth Triangle Plus (IMT+) sub-region, and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area Plus (BIMP+) sub-region, respectively2. Apparent positive trends in the Mekong sub-region can be seen compared with IMT+ and BIMP+, although there remains a significant missing link in the Myanmar section of the Mekong India Economic Corridor (MIEC) which needs to be connected by a number of infrastructure projects in Dawei, such as a deep sea port and a highway from Dawei to Thai border along the ASEAN Highway No.123. This issue has been further elaborated in the second phase of the CADP project and will be discussed in the next section. Figure 1: Implementation Status of the Infrastructure Projects Listed in the CADP (as of October 2011) 160 154 140 120 106 100 Conceptional Stage 80 Feasibility Study Stage 80 68 68 Construction Stage 60 54 46 Operation Stage 34 40 30 31 18 20 14 0 Top Priority Priority Normal Source: ERIA. 2 IMT+ and BIMP+ are new concepts extended from the original IMT-GT and BIMP-EAGA concepts. See the CADP report for details. ix Figure 2: Selected Infrastructure Projects in the Mekong Sub-region Trade Zone at Myawadi NamTheun 2 and NamNgum2 HydropowerPlant Hanoi Route No.8: Kawkareik -Mawlamyine -Thaton Ports: Lach Huyen NoiBaiAirport terminal2 Yangon port: Quay cranes Expansion of Cat BiAirport Thilawa port improvement Rail link from Hanoi: Hai Phong, Noibai, Lang Hoa Lac Hanoi Hoa Lachigh tech park, Vietnamspace center ICTinfrastructure enhancement North-SouthHighSpeedRailway(toHCMC) Upgrading Daweiairport Vientiane Savarnnakhet airport improvement Daweideep sea port SEZin Savarnnakhet Myawadi Khon Kaen Highway: Kanchanaburi-Dawei Yangon EWEC Savannakhet BorderTradingZoneinDansavanh SEZ/FTZ in Dawei Mawlamyine Multimodal logistic park in Dawei Da Nang Da Nang airport: Passengerterminal Bangalore Bangkok Da Nang port improvement MIEC Dawei Chennai SKRL: PP – Loc Ninh – HCMC Phnom Penh Cross-borderfacilityat Bavet-MocBai Pharma & biotech city in Ayutthaya IT& ITES part in PhthumThaniCDZ Ho Chi Minh Ho Chi Minh City (HCMC) Sihanoukville Bypass and express ways around HCMC Chennai Bangkok CaiMep–ThiVaiport: development, improvement ChennnaiPort-Ennore Port accesssway MRT network Rail link: HCMC – Vung Tau, HCMC –My Tho Outerring road in Chennai: Phase2 Suvarnnabumi airport: Phase 2 development Software technologypark, petro-chemicalcomplex Ennore IndustrialParkand SEZ LaemChabangport: Phase2 development Transmission line: Can Tho – HCMC Highwaymanagementimprovement Powerplants in O Mon Expressway: Chennai-Bangalore High speed railway: Chennai-Bangalore SKRL: Poipet-Sisophon(48km) Mekong bridge in NeakLoung (NR1) Poipet IndustrialEstate PhnomPenh port rehabilitation Koh Kong IndustrialEstate Reconstruction of NR3: PhnomPenh-Kampot Expressway: PhnomPenh-Sihanoukville Legend Enhancement of port security, improvement of Sihanoukville airport upgrade ProjectProgress Status port maintenance, port related procedures, port managementand operation. Sihanoukville port expansion ：Conceptional Stage ：Feasibility Study Stage ：Construction Stage ：Operation Stage ： Industrial Agglomeration Source: ERIA. Figure 3: Selected Infrastructure Projects in the IMT+ Sub-region Bangkok Phuket Port improvement Pakbara NewCargo Port Phuket Songkhla Songkhla Port: Dredging channelandimprovement Kuala Lumpur Ulee Port improvement Banda Ache Penang KLIA capacity enhancement MafahayatiPort improvement LRTexpansion in KL Medan Medan–BinjaiTollRoad 7 Kuala Lumpur Enhancement of vesseltraffic systemin Malacca Strait Belawan Port improvement Development of integratedsecurity systemin Malacca Strait NewMedan Airport Dumai Medan – Kualanamu – Tebing TinggiTollRoad Singapore DumaiPort expansion Pekanbaru Pekanbaru – Kandis– DumaiTollRoad Palembang Port: Dedging channel Palembang – Indralaja Toll Road Palembang Legend ProjectProgress Status Tegineneng– Babatan TollRoad ：Conceptional Stage Bandar Lampung ：Feasibility Study Stage Jakarta ：Construction Stage BanderLampung – BakahuniHighway ：Operation Stage ： Industrial Agglomeration Source: ERIA. x Figure 4: Selected Infrastructure Projects in the BIMP+ Sub-region Manila Manila port expansion, Subicport 1st and 2nd LRTline extension Metro Manila C6 Expressway NAIA Expressway and MIAA’sinternationalcargo terminal Manila Cavite-LagunaNorth SouthHighway Clark dry port development Port improvement and expansion:Davao,GeneralSantos, Zamboanga Cebu Bypass around GeneralSantos, Koronadal, Palo, andTuguegarao Enhancement of port security, improvement of port maintenance, Davao port related procedure andport management andoperation Muara port containerterminal Kota Kinabalu General Santos Bandar Sri Begawan Bitung Port: Expansion ofterminal Borneo Economic Corridor Upgrade of Trans-SulawesiRoad / Western SulawesiIEDC Balikpapan Port: Newcontainerterminal Makassarport containerterminal Manado/Bitung Pontianak Port: Dredging channelandexpansion Kuching Jayapura Port: Expansion ofmulti-purpose terminal Coalrailway: Palaci-Bangkuang Balikpapan Kalimantan IEDC Pontianak Jayapura Jakarta Banjarmasin Jakarta Jakarta New Port Makassar Railway connection to Soekarno HattaAirport Semarang Jakarta MRT Surabaya Legend Intelligent TrafficSystemin Jabotabek Watersupply improvement ProjectProgress Status ：Conceptional Stage Java high speed railway ：Feasibility Study Stage Tanjung Emas Port: Deep waterterminal Surabaya ：Construction Stage GreaterSurabayaMetropolitanPort Eastern Indonesiageothermalpowerplants ： Tanjung Perak port:Newterminaland accessroad Operation Stage Tanjung Perak port:powerplant repowering ： Industrial Agglomeration Surabaya MRT Source: ERIA. 3. ASEAN-INDIA CONNECTIVITY Although the CADP successfully fulfilled its initial mission,
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