Economic Research Institute for ASEAN and East Asia (ERIA) Mekong-India Economic Corridor Development Concept Paper 2009 Mekong-India Economic Corridor Concept Paper Contents 1. Background .......................................................................................................................................... 5 2. The Mekong-India Economic Corridor .............................................................................................. 5 3. Corridor Alignment and Influence Zone ............................................................................................ 6 4. Vision for MIEC .................................................................................................................................... 7 5. MIEC Goals ........................................................................................................................................... 7 6. MIEC Objectives................................................................................................................................... 7 7. Components of MIEC .......................................................................................................................... 8 7.1 Growth Poles ................................................................................................................................ 9 7.2 Growth Nodes .............................................................................................................................. 9 7.3 Transport Linkages .................................................................................................................... 13 7.4 Support Infrastructure ................................................................................................................ 18 8. Proposed Initiatives for Growth Poles ............................................................................................ 19 9. Proposed Initiatives for Growth Nodes ........................................................................................... 21 10. Proposed Projects for Key Transport Linkages ............................................................................. 33 10.1 Road Linkages ........................................................................................................................... 33 10.2 Railway Linkages ....................................................................................................................... 34 10.3 Ports ........................................................................................................................................... 34 10.4 Airports ....................................................................................................................................... 36 10.5 Multi-Modal Logistics Park ......................................................................................................... 36 11. Proposed Projects Regarding Support Infrastructure ................................................................... 39 11.1 Education and Skill Development .............................................................................................. 39 11.2 Health ......................................................................................................................................... 40 11.3 Power ......................................................................................................................................... 40 12. Projects Identified in Corridor .......................................................................................................... 42 13. Impact of Corridor ............................................................................................................................. 45 12.1 Impact on GDP and Employment............................................................................................... 45 12.2 Impact on Trade ......................................................................................................................... 46 14. Financing Mechanism for MIEC ....................................................................................................... 46 14.1 ASEAN Infrastructure Fund (AIF) ............................................................................................... 49 14.2 Role of Fund Management Company ........................................................................................ 50 14.3 Credit Enhancement .................................................................................................................. 51 14.4 Institutional and Implementation Framework ............................................................................. 51 14.5 Structured Project Development Approach ................................................................................ 53 14.6 Role of Project Management Consultant(s) ............................................................................... 54 15. Suggested MIEC Action Plan ........................................................................................................... 54 1 Mekong-India Economic Corridor Concept Paper 15.1 Short-term Action Plan ............................................................................................................... 55 15.2 Medium-term Action Plan ........................................................................................................... 55 ANNEXURE 1 – ERIA POLICY BRIEF NO. 1 ........................................................................................... 58 ANNEXURE 2 – LIST OF PROJECTS ...................................................................................................... 62 ANNEXURE 3 – DEVELOPMENT OF THAILAND’S SOUTHERN SEABOARD .................................... 69 2 Mekong-India Economic Corridor Concept Paper List of Abbreviations ADB Asian Development Bank AIF ASEAN Infrastructure Fund CDZ Comprehensive Development Zone CECA Comprehensive Economic Co-operation Agreement CFS Container Freight Station DMIC Delhi-Mumbai Industrial Corridor EAIC East Asia Industrial Corridor ERIA Economic Research Institute ASEAN and East Asia FMC Fund Management Company FTA Free Trade Agreement EWEC East West Economic Corridor GER Gross Enrollment Rate GMS Greater Mekong Subregion HRD Human Resource Development ICD Inland Container Depot ICPs Integrated Check posts JETRO Japan External Trade Organization JICA Japan International Cooperation Agency JODC Japan Overseas Development Cooperation MIEC Mekong India Economic Corridor MMLP Multi Modal Logistics Park NEDP National Economic Development Plan NESDB National Economic and Social Development Board PDF Project Development Fund PIF Project Implementation Fund PIFC Project Implementation Fund Committee PMC Project Management Consultant PPP Public Private Partnership SDDA Single Dedicated Development Agency SEZ Special Economic Zone SRT State Railways of Thailand SSBD Southern Seaboard Development Project 3 Mekong-India Economic Corridor Concept Paper List of Tables Table 1: Distance Comparison between India and MIEC Countries (with and without MIEC) .................... 6 Table 2: Identified Growth Poles in MIEC region ......................................................................................... 9 Table 3: Identified Growth Nodes in MIEC region ..................................................................................... 10 Table 4: Key Projects for Development/Improvement of Road Linkages .................................................. 33 Table 5: Key Projects for Development/Improvement of Railway Linkages .............................................. 34 Table 6: Proposed Key Port Projects ......................................................................................................... 35 Table 7: Key Airport Projects for MIEC ...................................................................................................... 36 Table 8: Proposed Key Multi-Modal Logistics Parks at Key Locations ...................................................... 36 Table 9: Categorization of Projects Identified for Development in MIEC ................................................... 43 Table 10: Impact on Trade ......................................................................................................................... 46 Table 11: Classification of Projects based on Capital-Return Relationship ............................................... 47 Table 12: Sources of Funding .................................................................................................................... 48 Table 13: Summary of Project Costs ......................................................................................................... 56 List of Figures Figure 1: Link between Components, Initiatives & Projects and Exemplary Exhibition of Initiatives & Projects ........................................................................................................................................................ 8 Figure 2: Impact of MIEC on Mekong/Malay Regional Economy .............................................................. 46 Figure 3: Proposed Implementation Framework ........................................................................................ 53 Figure 4: Typical Project Development Approach ..................................................................................... 53 Figure 5: Suggested Work Plan for Development of MIEC ......................................................................