Munich Personal RePEc Archive East-West Economic Corridor (EWEC)Strategy and Action Plan Lord, Montague ADB, Asian Development Bank May 2009 Online at https://mpra.ub.uni-muenchen.de/41147/ MPRA Paper No. 41147, posted 09 Sep 2012 18:18 UTC East-West Economic Corridor (EWEC) Strategy and Action Plan RETA-6310 Development Study of the East-West Economic Corridor Greater Mekong Subregion Prepared by Montague Lord Presented to Asian Development Bank 6 ADB Avenue, Mandaluyong City 0401 Metro Manila The Philippines May 2009 RETA 6310: EWEC STRATEGY AND ACTION PLAN Table of Contents List of Abbreviations ................................................................................................................................. iv List of Tables, Figures and Box ................................................................................................................ vi Executive Summary ............................................................................................................................... viii Map ................................................................................................................................................ xi 1. Background and Accomplishments .............................................................................................. 1 1.1 Overview of the Corridor Area ................................................................................................. 1 1.2 First Strategy and Action Plan, 2001-2008 .............................................................................. 2 1.3 Accomplishments and Lessons ............................................................................................... 4 2. Perspective on EWEC Development .............................................................................................. 7 2.1 Introduction .............................................................................................................................. 7 2.2 Government Sector .................................................................................................................. 8 2.3 Private Sector Transport Interests ......................................................................................... 10 2.4 Private Sector Provincial Interests ......................................................................................... 14 2.5 Development Partners ........................................................................................................... 15 3. Development Vision and Goals .................................................................................................... 19 3.1 Development Challenges ....................................................................................................... 19 3.2 Vision and Goals .................................................................................................................... 22 3.3 Guiding Principles and Strategies .......................................................................................... 23 3.4 Comparison between SAP-2009 and SAP-2001 ................................................................... 24 4. Action Plan for Implementing the Strategy ................................................................................. 25 4.1 Implementing the Strategy ..................................................................................................... 25 4.2 Implementation Activities and Costing Matrix ........................................................................ 26 4.3 Financing the Plan ................................................................................................................. 28 5. Creating a Better Implementation Modality ................................................................................ 29 5.1 Existing Institutional Mechanisms .......................................................................................... 29 5.2 Coordinating Institutional Activities ........................................................................................ 30 5.3 Monitoring and Evaluation ..................................................................................................... 32 6. Promoting Sustained Private Sector-Led Growth I: The Business Environment .......................................................................................................... 33 6.1 National Context of Private Sector Corridor Development .................................................... 33 6.2 Sub-Regional Initiatives for Private Sector Development ...................................................... 37 6.3 Targeting the Corridor’s Weakest Link in Lao PDR ............................................................... 38 6.4 Proposed Private Sector Development Program for Savannakhet ....................................... 40 6.5 Proposed Strategy and Implementation Modality .................................................................. 43 7. Promoting Sustained Private Sector-Led Growth II: Trade, Investment and Tourism ................................................................................................... 45 7.1 Cross-Border Trade ............................................................................................................... 45 7.2 Investment and Special Economic Zones .............................................................................. 48 7.3 Tourism .................................................................................................................................. 52 7.4 Proposed Strategy and Implementation Modality .................................................................. 56 8. Improving Equity and Alleviating Poverty .................................................................................. 59 8.1 Poverty and Inequality ........................................................................................................... 59 8.2 Pro-Poor Policies ................................................................................................................... 60 ii RETA 6310: EWEC STRATEGY AND ACTION PLAN 8.3 Proposed Strategy and Implementation Modality .................................................................. 61 9. Ensuring Environmental Sustainability ....................................................................................... 63 9.1 EWEC Environmental Impact ................................................................................................ 63 9.2 Core Environmental Program ................................................................................................ 63 9.3 Proposed Strategy and Implementation Modality .................................................................. 63 10. Enhancing Connectivity ................................................................................................................ 65 10.1 EWEC Transport System ....................................................................................................... 65 10.2 Secondary Road Improvement Program ............................................................................... 67 10.3 Proposed Strategy and Implementation Modality .................................................................. 68 Annex A: Consultations and Workshop ................................................................................................ 71 Annex B: EWEC Transport Corridor Stocktaking ................................................................................. 81 Annex C: EWEC Economic Corridor Stocktaking ................................................................................. 89 Annex D: Value Chain Studies in EWEC Area ..................................................................................... 92 Annex E: EWEC Project Activities through 2007 ................................................................................ 100 Annex F: EWEC Photos ...................................................................................................................... 105 iii RETA 6310: EWEC STRATEGY AND ACTION PLAN List o f Ab b reviatio ns ACIA ASEAN Comprehensive Investment Agreement ADB Asian Development Bank AFTA ASEAN Free Trade Area AHTN ASEAN harmonized tariff nomenclature AIA ASEAN Investment Area AMEICC Economic and Industrial Cooperation Committee AusAID Australian Agency for International Development BCI Biodiversity Conservation Corridor Initiative BDS Business Development Service BEZ Border economic zone BOI Board of Investment BOOT Build-Own-Operate-Transfer BTC Belgian Technical Cooperation ( BUILD Unit for Industrial Linkage Development CBTA Cross-Border Transport Agreement CCI Chamber of Commerce and Industry CDTA Capacity Development Technical Assistance CEP GMS Core Environment Program CEPT Common Effective Preferential Tariff CGF Credit Guarantee Facility CIDA Canadian International Development Agency Concern Concern Worldwide Lao PDR CSF Cost Sharing Facility DTIS Diagnostic Trade Integration Study EC European Community ECF Economic Corridors Forum EOC Environment Operations Center EPZ Economic processing zone EWEC East-West Economic Corridor EWEC-2 Second East West Economic Corridor FDI Foreign direct investment FRC Forest Research Center FRETA Freight Transport Association GMS Greater Mekong Subregion GMS-BF GMS Business Forum GRP Gross regional product HS Harmonized System IDE/ERIA- Geographical Simulation Model for the Economic Research Institute for ASEAN and East IEAT Industrial