Completion Report Project Number: 48176-001 Technical Assistance Number: 8814 July 2019 Advancing Regional Cooperation and Integration through Brunei Darussalam–Indonesia–Malaysia– Philippines East ASEAN Growth Area and Indonesia–Malaysia–Thailand Growth Triangle This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. TA Number, Country, and Name: Amount Approved: $500,000 TA 8814-REG: Advancing Regional Cooperation and Integration through the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area and Indonesia–Malaysia–Thailand Revised Amount: $1,700,000 Growth Triangle Executing Agency: Source of Funding: Amount Undisbursed: Amount Utilized: Asian Development Bank TASF-others $1,000,000 $27,041 $1,672,959 PRCF 700,000 TA Approval TA Signing Fielding of First TA Completion Date Actual: Date: Date: Consultant: Original: 30 June 2016 30 November 2018 16 December 2014 16 December 2014 29 January 2015 Account Closing Date Original: Actual: 30 June 2016 6 February 2019 Description The TA strengthens ADB’s role as regional advisor and development partner of the Brunei Darussalam–Indonesia– Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) and the Indonesia–Malaysia–Thailand Growth Triangle (IMT-GT). It provided strategic and technical support and enhanced capacities of the subregional programs in fulfilling their roles as building blocks of ASEAN and in promoting regional cooperation and integration (RCI). It is funded by ADB TASF-Others and the government of the People’s Republic of China. Expected Impact, Outcome, and Outputs The TA expected impact is for the subregions to be more integrated internally and with ASEAN. The outcome is that projects and initiatives in the two subregions’ Implementation Blueprints (IB) covering the period 2012–2016 are implemented. The TA is strategically aligned with ADB’s RCI priorities and was a direct request from the member countries’ ministers to promote subregional cooperation; to continue advancing RCI; and support their national priorities. The outputs are: (i) improved sector coordination between the subregional programs and ASEAN, (ii) regional thematic studies on cooperation and integration developed and implemented, and (iii) managing for development results enhanced. The TA modality which is policy and advisory is appropriate given ADB’s role is focused on providing strategic support and technical guidance to BIMP-EAGA and IMT-GT. The TA assisted the subregions in developing long term strategic plans aligned with their national policies. It also conducted thematic studies in transport, energy, trade facilitation, environment, tourism and economic corridors which identified policy recommendations at both subregion and country levels. The TA was deemed relevant as it helped transform BIMP-EAGA and IMT-GT into more effective subregional cooperation programs with clear strategic plans, pipelines of projects, and stronger institutional and cooperation mechanisms. Delivery of Inputs and Conduct of Activities The TA was approved on 16 December 2014 in the amount of $500,000, with ADB as the executing agency and initially scheduled for completion on 30 June 2016. The TA had two minor changes in scope to: (i) reallocate funds from Consultants and Surveys and Field Visits to Workshops, Trainings, Seminars and Conferences (23 April 2015); and (ii) additional person-months for a Regional Development Expert (16 June 2015). The TA also received supplementary financing: (i) $500,000 from TASF-Others approved on 16 December 2015; and (ii) $700,000 from People’s Republic of China Poverty Reduction and Regional Cooperation Fund (PRCF) approved on 31 August 2016. The total TA amount increased to $1,700,000. The additional financing was processed with minor changes in scope and implementation arrangements and extension of TA completion dates. The extension to November 2018 was necessary to (i) implement expanded scope of activities which required longer implementation period; (ii) allow more time to complete analytical and feasibility studies (increased from 9 to 16, as requested by the countries; and (iii) recruit additional consultants (firm and individuals) as requested by the countries to work on specific sectors. Judicious management of TA funds and collaborations with various ADB TAs and sector divisions also led to significant savings which were used to fund additional demand-driven activities. The overall performance of ADB both as the executing agency and provision of thematic studies is assessed as highly satisfactory. Progress and achievements were discussed at senior officials’ meetings (SOMs) and ministerial meetings (MMs) of BIMP-EAGA and IMT-GT. ADB also participates in the annual strategic planning of the subregions to ensure demand-driven support. Interdepartmental coordination and partnerships with ADB departments such as Sustainable Development and Climate Change Department, Economics Research and Regional Cooperation Department, and Department of Communications were both effective and extensive covering knowledge products, action plans and strategic documents produced, and events organized. ADB sector divisions collaborated and staff supervised studies and participated in various events such as working group meetings, workshops and conferences. The ADB resident missions provided support to TA implementation especially for in-country activities. Consultants (individuals and firms) and resource persons were hired to implement TA activities especially those requiring specialized expertise and RCI experience. Firms were recruited through consultant’s qualification selection (CQS) method. The consultants’ recruitment procedures were suitable, and performance satisfactory. The TA originally planned to engage 13.5 person-months of international and 21 person-months of national consulting services for a total of 34.5 person-months. With additional financing, expanded activities, extension, and specialized expertise required, the actual consulting services engaged increased to 120 person-months (53 person-months of international and 67 person-months of national consulting services). The activities were conducted based on the design and monitoring framework (DMF). Activities implemented to achieve outputs were: For output 1, the TA supported: (i) workshop on ASEAN, BIMP-EAGA, and IMT-GT Land Transport Facilitation which led to common approaches and enhanced coordination in implementing ASEAN land transport facilitation agreements; (ii) Green Cities Conferences in 2017 and in 2018, which helped established an ASEAN cities network and highlighted financing opportunities in sustainable urban development; (iii) preparation of the BIMP-EAGA Vision 2025 (BEV 2025) long term strategy aligned with ASEAN 2025; (iv) preparation of the IMT-GT Tourism Strategic Framework 2017–2036 and Action Plan 2017–2021 guided by the ASEAN tourism strategy; and (v) ASEAN Secretariat, Centre for IMT-GT Subregional Cooperation (CIMT), BIMP-Facilitation Center (BIMP-FC), and GMS Secretariat Consultative Meeting which identified concrete mechanisms for cooperation at strategic, sectoral, and institutional levels. For output 2, the TA delivered thematic and feasibility studies, reports, and actions plans for BIMP-EAGA on: (i) power enclaves in the islands of Borneo and Mindanao; (ii) Sabah–Palawan interconnection; (iii) Tawau Port in Malaysia as hub; (iv) trade and investment opportunities of corridor value chains; (v) business perceptions on investment climate in the economic corridors; (vi) diagnostics and assessment of customs, immigration, quarantine and security in select border points; (vi) land transport facilitation; (vii) climate change vulnerability assessment and risk mitigation; (viii) Sabah–North Kalimantan and Sarawak–West Kalimantan border areas development including pre-feasibility assessment of the land link between Indonesia and Malaysia; (ix) Mantanani Island as model and pilot marine ecotourism project; and (x) Green City Action Plans (GCAPs) for BIMP-EAGA cities namely Kendari, Indonesia and Kota Kinabalu, Malaysia. For IMT-GT, also under output 2, the TA supported CIMT to deliver thematic and feasibility studies, and action plans on: (i) GCAPs for Songkhla and Hat Yai in Thailand, Medan and Batam for Indonesia, and Melaka in Malaysia; and (ii) Special Border Economic Zones along the Thai-Malaysian border and Kedah–Perlis–Songkhla special economic zone. Under output 2, thematic studies are intended to serve as basis for new projects and pilot initiatives. The GCAP in Melaka, led to development of a public-private partnerships (PPP) street lighting improvement project, an urban public transport master plan and solar projects. The projects are being considered for financing and have led to green projects being replicated in other IMT-GT areas namely in Penang and Langkawi in Malaysia, in Krabi and Phuket in Thailand, and in Sabang in Indonesia. The IMT-GT and BIMP-EAGA Green Cities Initiative brochures and statistical booklets were also printed. All knowledge products were printed and widely disseminated at the BIMP-EAGA and IMT-GT SOMs, MMs, Summits, and other events such as trainings, workshops and conferences. These are also available