The World Bank Ministry of Construction, Japan Seminar on Asian Toll Road Development in an Era of Financial Crisis Tokyo International Forum: March 9 – 11, 1999 Proceedings of the Seminar Volume I: Main Text March 1999 PADECO Co., Ltd. in association with Highway Planning Inc., and Value Management Institute, Inc. “Exchange of Knowledge” Panel Discussion on the third day of the Seminar Seminar Venue Tokyo International Forum (Photo courtesy of the Tokyo International Foundation) Proceedings of the Seminar Table of Contents Table of Contents Volume I: Main Text 1 INTRODUCTION............................................................................................................1-1 2 OPENING ADDRESS, Session 1-1 .................................................................................2-1 • Mr. Kei-ichi Inoue, Ministry of Construction, Japan .........................................2-1 3 KEYNOTE SPEECH, Session 1-2...................................................................................3-1 • Prof. Yataro Fujii, Keio University, Japan..........................................................3-1 4 MAJOR TOLL ROAD ISSUES AND LESSONS LEARNED, Session 1-3 (Text of Speech and Selected Discussion) .........................................................4-1 • Dr. Chiaki Kuranami, PADECO Co., Ltd., Japan ..............................................4-1 5. ROAD DEVELOPMENT UNDER THE CURRENT ECONOMIC SITUATION IN ASIA, Session 1-4 (Summary of Presentations and Selected Discussion) ........5-1 • Ir. Sumaryanto Widayatin, Bina Marga, Indonesia ............................................5-1 • Ms. Hanifah Hassan, Economic Planning Unit, Malaysia .................................5-3 • Engr. Augusto B. Santos, NEDA and Mr. Godofredo Z. Galano, DPWH, Philippines ..........................................5-4 • Dr. Suwat Wanisubut, NESDB, Thailand...........................................................5-6 6. TOLL ROAD EXPERIENCES IN VARIOUS COUNTRIES, Session 2-1 (Summary of Presentations and Selected Discussion) .......................................6-1 • Mr. Nazir Alli, National Roads Agency, South Africa .......................................6-1 • Prof. Alain Fayard, Lille University, France ......................................................6-2 • Mr. Miklós Murányi, State Motorway Company, Hungary ...............................6-4 • Mr. Jun-ichi Matoba, Ministry of Construction, Japan ......................................6-6 7. FINANCIAL PERSPECTIVE, Session 2-2 (Summary of Presentations and Selected Discussion) .......................................7-1 • Mr. Mitchel Stanfield, MSA Infrastructure Consultants, USA ..........................7-1 • Mr. Bertrand Marçais, Groupe EGIS, France.....................................................7-2 • Mr. Alfred Nickesen, World Bank, USA............................................................7-5 • Mr. Jose Luis Irigoyen, World Bank, USA ........................................................7-6 • Mr. Michael M. McNeill, Baker & McKenzie, Singapore.................................7-8 • Mr. Thomas A. Doud, Standard & Poor’s, Hong Kong SAR, China .................7-9 8. EXCHANGE OF KNOWLEDGE, Session 3-1 (Summary of the Panel Discussion)...................................................................8-1 • Moderated by Mr. Alfred Nickesen and Mr. Jose Luis Irigoyen, World Bank, USA..................................................8-1 9. CONCLUSION OF THE SEMINAR, Session 3-2 ..........................................................9-1 • Dr. Anthony J. Pellegrini, World Bank, USA.....................................................9-1 i Proceedings of the Seminar Table of Contents Volume II: Appendices A through F A. OFFICIAL PROGRAM OF THE SEMINAR.................................................................A-1 B. BIOGRAPHIES OF THE SPEAKERS........................................................................... B-1 C. MATERIALS PRESENTED (Papers and Slides) ........................................................... C-1 D. QUESTIONS SUBMITTED FOR PANEL DISCUSSION ............................................D-1 E. LIST OF SEMINAR REGISTRANTS AND INVITEES ............................................... E-1 F. PHOTOGRAPHS .............................................................................................................F-1 Volume III: Appendix G G. SEMINAR RESOURCE REPORT: “Review of Recent Toll Road Experience in Selected Countries” ii Volume I: Main Text Introduction 1 INTRODUCTION 1.1. A Seminar entitled “Asian Toll Road Development in an Era of Financial Crisis” was held from 9-11 March 1999 at the Tokyo International Forum in Tokyo, Japan. It was jointly sponsored by the World Bank (the Bank) and the Ministry of Construction, Japan (MOCJ), and represented one component of the ongoing Asian Toll Road Development Program, Global Toll Road Study, also jointly sponsored by the Bank and MOCJ. 1.2. Over the three days, the Seminar brought together a wide range of leaders, decision-makers, academics, and other influential people related to toll road development, totaling 340 persons from 17 countries.1 The Seminar featured 18 individual speeches and presentations, as well as a comprehensive panel discussion on the last day. Seminar speakers and panelists included MOCJ and World Bank officials, foreign government representatives, academic experts from Japan and abroad, public and private sector toll road developers and operators, and specialists in the areas of toll road finance, regulation, and legal issues. 1.3. These Seminar Proceedings comprise three volumes. Volume I contains this introductory Section and eight others, one for each of the Seminar Sessions. The Official Program of the Seminar is presented in Appendix A. Biographies for all Seminar speakers are given in Appendix B, while all of the papers and slides that were presented at the Seminar are reproduced in Appendix C. The complete list of questions submitted by Seminar attendees for the Panel Discussion is included in Appendix D, and a list of all Seminar registrants comprises Appendix E. Appendix F features photographs taken at the Seminar. Appendices A through F comprise Volume II of the Seminar Proceedings, while Volume III contains Appendix G, a report entitled “Review of Recent Toll Road Experience in Selected Countries,” which served as the Seminar Resource Report and was given to all Seminar attendees. 1.4. Day One: Tuesday 9 March 1999. The morning of the first day of the Seminar featured three brief Sessions. In the first Session, Mr. Kei-ichi Inoue, Director General of the Road Bureau, MOCJ, delivered an Opening Address. He explained that the current Asian economic crisis has brought about a need for discussion on the development of toll roads in the surrounding region, and that the Government of Japan hopes to support these efforts with this Seminar. The second Session featured a Keynote Speech by Professor Yataro Fujii of Keio University, Chairperson of the Global Toll Road Study Advisory Committee. Professor Fujii described how while each country’s experiences and needs are in many respects unique, every country may nonetheless still learn a great deal from the lessons of each other. In this spirit, he went 1 Visitors to Japan for the Seminar came from France, Germany, Hong Kong SAR, Hungary, Indonesia, Malaysia, the Philippines, Singapore, South Africa, Thailand, the United States, and Viet Nam. In addition, embassy staff attended representing China, Colombia, France, Germany, Hungary, India, Indonesia, Malaysia, Pakistan, the Philippines, South Africa, South Korea, and Thailand. 1-1 Volume I: Main Text Introduction on to describe several critical issues that have confronted Japanese toll road planners in the past, as well as those that are currently receiving great attention. Complete English translations of both Mr. Inoue’s address and Professor Fujii’s speech are presented in Sections 2 and 3 of these Proceedings, respectively. 1.5. “Major Toll Road Issues and Lessons Learned” was the topic of the third Session. Dr. Chiaki Kuranami, a Director of PADECO Co., Ltd. and Leader of the World Bank’s consultant team for the Global Toll Road Study, presented the findings of his firm’s eight-month long comprehensive worldwide review of recent toll road experience in 17 selected countries and one region. He identified several key roles for the public and private sectors in each of the countries examined, as well as indicating the extent of the impact of the Asian economic crisis on toll road development in Indonesia, Malaysia, the Philippines, and Thailand. Dr. Kuranami’s speech and the discussion that followed are summarized in Section 4 of these Proceedings. The consultant team’s findings were distributed to all Seminar attendees in the form of a Seminar Resource Report which, as mentioned above, also serves as Appendix G of these Proceedings. 1.6. The entire afternoon of the first day was devoted to presentations on Toll Road Development Under the Current Economic Situation by representatives from four rapidly developing countries in the Asia-Pacific region. Ir. Sumaryanto Widayatin, Toll Road Division Chief for Bina Marga of Indonesia, discussed the extensive toll road reform efforts that are underway currently in his country in the wake of the economic crisis. Ms. Hanifah Hassan, Director of the Privatization Section of Malaysia’s Economic Planning Unit, explained the Malaysian Government’s goals for structuring and supporting the private sector development of toll