MRC Navigation Programme

Transcription

1 Component Summary Mekong River Commission 18 July 2003 Second Draft Report 9M

2 CONTENTS Page CONTEXT 1 C1 - SOCIO-ECONOMIC ANALYSIS AND WATERBORNE TRANSPORT PLANNING 3 C2 - LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION 6 C3 - TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY 8 C4 - INFORMATION, PROMOTION, AND COORDINATION 10 C5 - INSTITUTIONAL DEVELOPMENT 12 ANNEX 1: NAVIGATION PROGRAMME BUDGET SUMMARY 14 ANNEX 2: SUMMARY OF NAP WORK PROGRAMMES 15 ANNEX 3: EXECUTIVE SUMMARY OF THE MRC NAVIGATION STRATEGY 15 i

3 CONTEXT FORMULATION OF THE MRC NAVIGATION PROGRAMME The Mekong Basin includes six countries China, Myanmar, Thailand, Lao PDR, Cambodia and Viet Nam the latter four being members of the Mekong River Commission (MRC). International cooperation for the development of the Mekong Basin goes back to 1957, when the Mekong Committee was founded. The Mekong River Commission was established on 5 April 1995 when the Agreement on Cooperation for the Sustainable Development of the Mekong River Basin was signed. According to the 1995 agreement MRC has the mandate to promote, support, cooperate and coordinate in the development of the full potential of sustainable benefits to all riparian States (Article 2, MRC 1995 Agreement). Between September 2002 and March 2003, MRC formulated the MRC Navigation Strategy in a highly participatory process of national and regional consultation visits and workshops. The strategy documents include a clear definition of the basic policy. A summary of the strategy and the strategy matrix is enclosed to this document as Annex 1. In order to implement the Strategy however, a detailed Navigation Implementation Programme and Action Plan is needed. Between May 2003 and September 2003, the first and second drafts of the Navigation Programme (NAP) were formulated. Because of the need for integrated participatory planning, the NAP has been prepared with a basinwide scope in close consultation with all countries, so that ownership of the components of NAP is ensured. The components presented to you here are therefore largely based on information and ideas obtained during the national consultations and workshops conducted in the period between 2 and 20 June The present volume includes detailed and comprehensive components that are formulated as stand-alone components containing activities agreed by MRCS, the National Mekong Committees and relevant national counterparts. At this stage there are overlaps between some components and in general there are too many activities for MRC and its member countries realistically to implement within the 6 year period that the final Navigation Programme will cover. Prioritisation is needed and further integration of the present 5 components will take place when the MRC member countries, other regional and national stakeholders and MRC donors have given their opinion and suggestions. The budget figures presented at this stage are therefore also well above the expected cost level for the final MRC NAP, however, the formulation team have decided to present to you a full list of expenditures for the activities that have been identified as necessary to reach the overall objective: The Overall Objective of the MRC Navigation Programme: To promote freedom of navigation and increase the international trade opportunities for the MRC member countries mutual benefit, and to assist in co-ordination and co-operation in developing effective and safe waterborne transport in a sustainable and protective manner for the waterway environment. MRC will organise a regional workshop in Phnom Penh on 3 and 4 September 2003 to discuss and prioritise the activities presented in this draft version. The final Navigation Programme will be submitted to the MRC Council in October 2003 for consideration and approval. It is envisaged that the implementation of the MRC Navigation Programme is to start in The implementation of the MRC Navigation Strategy through five strategic components will require overcoming the challenge of introducing measures and initiatives that can 1

4 foster trade and transport development in the Lower Mekong Basin related to the waterborne transport sector. Consequently, there will be needed better management capacities in the national line agencies, ports and river administrations and there will have to be taken decisive steps towards establishing close partnerships between public and private stakeholders engaged in navigation and commercial activities. It is also foreseen that a close cooperation between the four MRC countries and the four parties to the Navigation Agreement on the Upper Mekong-Lancang would be very fruitful and contribute to further integration and cooperation in the Greater Mekong Basin. The ambition of the NAP and its implementation has been developed in line with the mandate and capabilities of MRC. It is envisaged that NAP should focus on a limited number of priority activities that are highly important to enhance waterborne transport on the Mekong River and that MRC and its member countries should link to other organisations, donors and partners working on issues of importance to navigation development and thereby reach larger benefits for all parties. NAP Components The MRC Navigation Programme has been developed under the guiding principles of the MRC Navigation Strategy. And each output of the Navigation Programme is aimed at implementing the issues identified in the Navigation Strategy. For your information and reference a summary of the MRC Navigation Strategy is attached to this summary as Annex 1. The proposed NAP Components are the following 1. Socio-economic Analysis and Waterborne Transport Planning 2. Legal Framework for Cross-border Navigation 3. Safety and Environment 4. Information, Promotion and Coordination 5. Institutional Development Formatted: Bullets and Numbering 2

5 C1 - SOCIO-ECONOMIC ANALYSIS AND WATERBORNE TRANSPORT PLANNING Objectives The Overall Objective of the MRC Navigation Programme (NAP) is to promote freedom of navigation and increase the international trade opportunities for the MRC member countries mutual benefit, and to assist in co-ordination and co-operation in developing effective and safe waterborne transport in a sustainable and protective manner for the waterway environment. Among the immediate objectives of this NAP Component the following have been reported in the national consultation workshops: (1) Assess the socio-economic outcome of enhancing navigation on the Mekong River (2) Develop a strategic transport model to describe the impacts of waterborne transport investments and policies on the transport sector in time (3) Examine and propose cost-effective and practical ways in which cargo and passenger transport on the Mekong waterway network can be increased as a separate transport mode and as a part of the regional multimodal transport network (4) Identify and evaluate, for each of the countries, opportunities for the development of rural waterborne transport on the Mekong River (5) Recommend and elaborate the required institutional setting for monitoring the socio-economic outcome and periodic revision of the regional waterborne transport planning (6) Identify the needs for institutional strengthening, capacity building and training (7) To improve access to markets, schools, hospitals through waterborne transport in remote areas, to improve waterborne transport during floods, to increase river based employment and to reduce negative social effects of cross border navigation In general terms this component will contribute to the MRC Navigation Programme by: (1) providing socio-economic justification for the MRC navigation programme (2) identifying investment opportunities for developing waterborne transport (3) identifying sources of finance (4) formulating recommendations on institutional development (5) identifying formulate and implement pilot projects (6) developing an impact monitoring system (7) formulating recommendations on institutional development Justification Inland waterway transport is a part of a multi-modal transport system. At present, the Lower Mekong Basin waterway network is currently insufficiently used. It has a great reserve capacity. If its potential is to be developed, inland waterborne transport and maritime access must be made a part of an integrated transport system, comprising all modes. So, at the policy level, an inter-modal approach is called for. As the waterway network does not cover all the important economic regions in the LMB and in the GMS, there must be multi-modal terminals, connecting the waterway network to the road and rail networks, and where goods can efficiently be transferred between modes. Line Agencies and international organisations should foster the establishment of such 3

6 terminals. Another way to exploit more fully the transport potential of inland waterways is to increase the use of them for River-Sea traffic between Viet Nam and Cambodia. It is suggested that MRC assist in drawing up a master plan for regional intermodal waterborne transport including the required intermodel terminals to show the socioeconomic feasibility of various alternative development scenarios. As already outlined in the Navigation Strategy, four main factors influence the extent to which the Mekong River and its tributaries are used for transportation purposes: Economic and trade growth; The presence of transport mode choices and strength of competition of other modes; Physical restrictions (depth, rapids); Non-physical (institutional) barriers. Relationship to NAP and other MRC Programmes The work carried out within this component will contribute to focus attention of the MRC Navigation Programme to the areas where most benefits can be reached by investments in the sector. Within MRC socioeconomic analysis and planning is primarily of interest to the Basin Development plan (BDP) that is looking into defining priority areas for regional development and how to ensure that development in taking place in a sustainable manner with due consideration of social concerns. In a longer term perspective it is foreseen that the studies and pilot projects regarding the potentials for waterborne tourism development could feed into a future MRC Tourism Programme. Priority This component will generate a baseline analysis of the regional navigation sector ad its characteristics. Moreover, it will seek to define the development opportunities to be reached and how the navigation sector most efficiently could be integrated in the overall regional infrastructure network for the benefit of national, regional and international regional traders. Outputs Output 1 Output 2 Output 3 Output 4 Output 5 Output 6 Output 7 Output 8 Output 9 Traffic and trade scenarios Master plan for regional (intermodal) waterborne transport Masterplan regional waterborne passenger transport and tourism Masterplan for development of rural waterborne transport Evaluate the social-economic outcome of the development of both regional and rural waterborne transport Formulate recommendations for prioritised investments in the inland waterway infrastructure (waterways, fleet and ports) Identify sources of finance for the recommended investments Identify and formulate pilot projects Institutional strengthening, capacity building and training 4

7 Time frame: 6 years ( ) Costs Sharing: US$ Total project costs 4,622,000 National inputs (in-kind) 90,000 External funds required 4,622,000 Funds sought: 6,622,000 Formatted: Bullets and Numbering 5

8 C2 - LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION Objectives The immediate objective for this NAP component is: To establish an appropriate legal regime to ensure freedom of regional and international cross-border navigation on the Mekong and to ensure its implementation and sustainability Justification A major feature of the existing legal framework for the management of the Mekong river is the long-standing tradition of international arrangements and international cooperation on which it is based. Since 1926, a number of important treaties have been signed, which mark the constant willingness of the riparian states to co-operate. For more than 75 years, the Mekong has been considered to be an internationalised river. Moreover, this tradition has remained unaffected through several, sometimes profound changes in the government and constitution of the riparian states. This strong tradition of international co-operation and solidarity, often referred to as the Mekong Spirit, is in itself an invaluable asset and should serve as the very basis for the further development of an international strategy for navigation. During the preparation of the Navigation Strategy in 2002 and 2003, the following important if not fundamental deficiencies in the current legal regime of the Mekong were identified: 1) Legal uncertainty resulting from a lack of clarity in the existing individual international conventions 2) Legal uncertainty resulting from the co-existence of subsequent international conventions 3) Secondary role of navigational issues in the MRC Convention of ) Unsatisfactory definition of tasks and powers of MRC in the field of navigation 5) Direct impediments to navigation resulting from the existing treaty regime of the Mekong river 6) 'Dead letter' and 'soft law' status of a number of existing treaty provisions Therefore, the present article 9 of the MRC Convention on freedom of navigation should be elaborated into clear principles on free navigation and harmonised technical and operational rules that will bring about a liberalisation of cross-border navigation that is in line with the regime of other international rivers. These new rules should take priority over national laws. Some of the rules contained in the 1954 Paris Convention and other earlier conventions could be transcribed into the new regime. Relationship to NAP and other MRC Programmes This component has particular relations to the rules for water use that are being formulated under the Water Utilization Programme (WUP). Also there will be a common interest in transboundary Environmental Impacts Assessments and rules to be applied when doing national navigation improvement projects. The outcome of the activities carried out in this component is foreseen to have impacts on the overall infrastructure, traffic and trade development in the region, and on the comparative advantage of navigation compared to other transport modes, thus, it is likely that the Basin Development Plan will be taking a certain interest in the state of the legal framework for regional navigation. 6

9 Priority This component is of very high importance to the future development of regional navigation in the Lower Mekong basin as the current legal situation is creating uncertainty, impediments to Freedom of Navigation which hampers trade and traffic development. This is not in the interest of any of the MRC Member Countries. Outputs Output 1 Output 2 Output 3 Output 4 Output 5 Output 6 Output 7 Output 8 Output 9 Output 10 A comprehensive legal study of the current regime of navigation on the Mekong A definition of basic principles for the development of navigational uses of the Mekong A definition of roles for MRC as an international river commission in the field of navigation An updated and harmonised legal regime to guarantee freedom of navigation Conformity of national policies with international conventions Legal expertise and legal working group Legal capacity building Assisted negotiations and mediation Dialogue and co-operation with China and Myanmar Supervision and enforcement of common rules Time frame 6 years ( ) Costs Sharing US$ Total project costs 6,688,836 National inputs (in-kind) 31,500 External funds required 6,657,336 Funds sought: 6,657,336 7

10 C3 - TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY The Traffic Safety and Environmental Sustainability component contains eight different outputs covering the navigational safety and environmental issues of the MRC Navigation Programme. The MRC Navigation Programme has been developed under the guiding principles of the MRC Navigation Strategy. And each output of the Navigation Programme is aimed at implementing the issues identified in the Navigation Strategy. The needs, analysis, priorities and justifications of this component and measures to be carried out have been reviewed during the round of national consultations and workshops. Comments and suggestions from the MRC member states and other national and regional stakeholders have provided the basis for developing this second draft Navigation Programme. This draft will be reviewed and further clarified during a regional workshop to be held in September The emphasis in this phase has been placed on developing the safety and environmental objectives and activities to be included in this component and ensuring the integration with environmental and socio-economic concerns as developed in the Navigation Strategy. The immediate objectives for this NAP Component are: 1 To promote and realise the concept of environmental standards for clean river transportation, focusing on strategic prevention of environmental damage. 2 To promote sustainable and the best use of all water and water related (including adjacent land use) resources in the LMB 3 To balance the environmental consequences of projects against their economic and social significance. 4 To provide safe, reliable, efficient, and environmentally sustainable waterborne transportation systems (channels, harbours, & waterways) for movement of people and goods and tourism; 5 To propose measures for the progressive removal of non-physical obstacles to navigation and for the liberalisation of international and regional shipping on the waterways of the Mekong basin, in line with customary international river law and the conventional regime of comparable international rivers; 6 To propose measures for the progressive removal of physical obstacles to navigation duly taking into account environmental and social aspects; 7 To reduce the accidents in ports, on the vessels and on the waterways; 8

11 Outputs Output 1 Output 2 Output 3 Output 4 Output 5 Output 6 Output 7 Output 8 Aids to navigation Certifying ports, licensing vessels and crew Prevention of accidents, accident management and rescue Environmental protection and impact assessment Identify sources of finance for the recommended investments Develop procedures for public consultation on waterborne transport and environmental aspects. Identification and formulation of pilot projects Identify the needs for institutional strengthening, capacity building and training Time frame 6 years ( ) Costs Sharing US$ Total project costs 14,768,492 National inputs (in-kind) 210,840 External funds required 14,557,652 Funds sought: 14,557,652 9

12 C4 - INFORMATION, PROMOTION, AND COORDINATION Formatted: Bullets and Numbering The Information, Promotion and Coordination Component contains 13 outputs covering these aspects of the MRC Navigation Programme. Each of these outputs is aimed at responding to needs and challenges identified in the MRC Navigation Strategy. The problem analysis, justification and priorities of this component and the suggested activities have been reviewed during the round of national consultations and workshops that took place in June 2003 in the four MRC Countries. Comments and advice from the countries are incorporated in this second draft navigation programme that will be subject to regional discussions at a regional workshop to be held in September The immediate objectives for this NAP Component are: (1) To demonstrate the advantages and potentials of water transportation and to change misguided perceptions of its dangers in order to trigger more public and private investments, and to ensure the countries commitment to effectively join efforts to increase regional trade (2) To avoid duplication of efforts and to identify co-operation mechanisms with national and regional initiatives, with the NMCs, line agencies, private sector and with the other MRC programmes (3) To explore the possibilities of the necessary co-operation with the People s Republic of China and the Union of Myanmar in the field of navigation; (4) Improving the Regional Information level and exchange through establishing a system of Regional Navigation Coordination and Services with the intention to: initiate, improve, and maintain the knowledge base on Mekong water transportation in the region, provide products and services and assist the coordination of regional navigation activities in order to support planning and operations. Outputs 10

13 The component is divided into the three Sub-Components of Information, Promotion and Coordination as follows: Sub-component 1: Output 1-1 Output 1-2 Output 1-3 Sub-component 2: Output 2-1 Output 2-2 Sub-component 3: Output 3-1 Output 3-2 Output 3-3 Information Establishment of MRC NAP Management Data Reporting System Operational Data for Mekong Navigation Mekong waterborne transport and traffic data: Cargo, passengers Promotion of regional navigation development Integration of Navigation issues in National Development Planning Organising and implementing specific promotion and information campaigns Coordination of regional navigation activities National and regional navigation forums Coordination between Upper and Lower Mekong Navigation Agreements Coordination Frameworks for Public-Private Partnerships In addition, the following have been identified as Common Outputs under the theme of Institutional development, capacity building and training which a cross-cutting theme is: Common Outputs for Institutional strengthening, Capacity Building and Training Output C-1 Output C-2 Output C-3 Navigation information and promotion training Strengthen Regional Coordination Mechanisms Capacity building on regional navigation development The following two pilot projects are suggested: Output C-4 Output C-5 Public Participation in Regional Navigation Development Mekong Navigation Development Catalogue Time frame: 6 years ( ) Costs Sharing USD Total project costs 7,231,260 National inputs (in-kind) 31,500 External funds required 7,199,760 Funds sought: 7,199,760 11

14 C5 - INSTITUTIONAL DEVELOPMENT The immediate objectives for this NAP Component are: 1) to establish the institutional structures on the regional level and to provide the necessary resources for the MRC member states to establish the management structures on the national level for implementing the NAP; 2) to facilitate, coordinate and harmonise the identification, formulation and implementation of a capacity development programme for the waterborne transport sector in the member countries. Justification The MRC Navigation Strategy provides the basis for a much stronger future involvement of MRC in regional navigation. In various national and regional workshops organized during and after the NAP strategy formulation, a high priority was given to the strengthening of institutions and capacities. Furthermore, the other components of the NAP can only be administered and implemented efficiently with the appropriated management structure in place. It is recognised that, apart from setting up an adequate management structure on the regional level, there is a need for institutional strengthening, capacity building and training of the line agencies (LA), stakeholders and beneficiaries of waterborne transport in each of the member countries. MRC may be instrumental in coordinating, streamlining and harmonising the activities. Relationship to NAP and other MRC Programmes The management structure will ensure the co-ordination of all programme components and their implementation. The component is linked with MRC s core programmes and will add value to their achievements. In particular, the component will ensure that institutional structures are in place to implement environmental objectives in navigation, as well, and to provide for close co-operation with MRC s Water Utilization Programme (WUP) and Basin Development Plan (BDP) during the implementation of the NAP. Priority In general, the institutional development is of high priority on a regional and a national level because a well functioning management structure is a prerequisite for an effective and efficient implementation of the NAP. In addition, within the framework of the Navigation Strategy, the MRC and the member states have prioritized certain objectives that the institutional development component will address. Outputs Sub-component 1: Development and Functioning of the Programme Management Structure Output 1 General preparations and coordination for the programme implementation 12

15 Output 2 Output 3 Output 4 Output 5 Output 6 Output 7 Output 8 Output 9 Selection and Nomination of the Working Group on Navigation (NWG) and the Navigation Expert Groups (NEG) to be ready for Phase 2 Establishment and functioning of the Working Group on Navigation (NWG) Establishment and functioning of the Navigation Programme Office and Expert Groups (NEG) Strengthening of Management Capacities of National Counterparts directly related to the implementation of the Navigation Programme Establishment and functioning of industry associations Publication of MRC Navigation Management and Coordination andbook Selection and Nomination of the Sub-working Groups on Navigation (NSG) to be ready for Phase 3 Establishment and functioning of the Sub-working Groups on Navigation (NSG) Sub-Component 2: Institutional Strengthening, Capacity Building and Training Output 10 Output 12 Output 13 Facilitate and support other components. Institutional Strengthening, Capacity Building and Training Training packages and tailor made courses Time frame: 6 years ( ) Costs Sharing: US$ Total project costs 9,191,543 National inputs (in-kind) 176,400 External funds required 9,015,143 Funds sought: 9,015,143 13

16 ANNEX 1: NAVIGATION PROGRAMME BUDGET SUMMARY Component 1: Costs Sharing USD Total project costs 4,622,000 National inputs (in-kind) 90,000 External funds required 4,622,000 Funds sought: 6,622,000 Component 2: Costs Sharing USD Total project costs 6,688,836 National inputs (in-kind) 31,500 External funds required 6,657,336 Funds sought: 6,657,336 Component 3: Costs Sharing USD Total project costs 14,768,492 National inputs (in-kind) 210,840 External funds required 14,557,652 Funds sought: 14,557,652 Component 4: Costs Sharing: USD Total project costs 7,231,260 National inputs (in-kind) 31,500 External funds required 7,199,760 Funds sought: 7,199,760 Component 5: Costs Sharing: USD Total project costs 9,191,543 National inputs (in-kind) 176,400 External funds required 9,015,143 Funds sought: 9,015,143 Navigation Programme budget summary Total project costs 42,502,131 National inputs (in-kind) 540,240 External funds required 41,961,891 Funds sought: 41,961,891 14

17 ANNEX 2: SUMMARY OF NAP WORK PROGRAMMES ANNEX 3: EXECUTIVE SUMMARY OF THE MRC NAVIGATION STRATEGY Background The Mekong is a source of valuable natural resources and has extensive natural navigation potential. Waterborne Transport along the Mekong has served as one of the main modes of transportation between communities in the riparian countries since they first settled along its embankments, many centuries ago. While the riparian governments and investment banks are directing their investments in regional infrastructure towards road and rail transport, the Mekong River Commission continues to stress the importance of investing in the water-borne transport sector. The underlying reason is to attract investments and realise regional trade potential thereby creating better livelihoods for future generations living in some of the poorest countries in the world. Since the first agreement on Mekong co-operation was signed, the riparian countries have entered into various forms of agreements addressing regional navigation. In the 1995 Agreement the overall role of MRC is defined as assistance in regional coordination and policy development. Due to the recent launch of strategic basin-wide sector programmes, major developments on the national political agendas of the four MRC Member Countries and the MRC Strategic Plan ( ), it is time to update the 1994 Navigation Strategy to be fully in line with the 1995 Agreement. Article 9 of the 1995 Agreement gives MRC a specific mandate to promote and coordinate water transportation and to encourage freedom of navigation in the Lower Mekong region. A common interest in increasing international trade was the reason that the MRC signatories opted for a separate article in the 1995 Agreement on Freedom of Navigation. The updated MRC Navigation Strategy is meant to contribute to regional and national prosperity in each of the countries in the Lower Mekong Basin (LMB). The benefits could be reaped by attracting more trade and creating more environmental awareness and capacity to address this issue in a proper way. Presently, the governments and the private sector are not capable, on a national level, of realising the potential of regional and international waterborne transport. Apart from international trade another important issue is access to waterborne transport for remote areas, thereby offering communication for the rural poor and for transportation of agricultural goods to consumption centres. An improved navigable waterway system will not only provide a new foundation for economic growth and development in the LMB, but could also have a positive impact in terms of contributing to cleaner river transport and poverty alleviation. The development objective for MRC navigation development is: To promote freedom of navigation in the Lower Mekong River system; To assist in co-ordination and co-operation in developing effective and safe waterborne transport in a sustainable and protective manner for the waterway environment; and To increase international trade opportunities for the mutual benefit of the Member Countries of the MRC. 15

18 The 8 Guiding Principles on which the navigation strategy is formulated: (i) basin-wide significance; (ii) involve upstream partners; (iii) poverty alleviation and gender issues; (iv) sustainability; (v) participatory approach; (vi) integrated action and avoidance of duplication; (vii) ecological benefits; and (viii) feasibility. The Formulation Process The formulation of the new strategy was initiated in August The Navigation Programme Unit of MRCS, assisted by Statkraft Grøner/Royal Haskoning Consultants has applied the same participatory methodology that was used for the formulation of the Flood Management and Mitigation Strategy. Public participation in all its programme activities is a process to which MRC feels itself committed. The team started collecting information and discussing the baseline conditions, needs, problems and opportunities of Mekong navigation with the NMC s, national line agencies, regional counterparts and the private sector in all four member countries. Results of the national consultation visits and studies were further discussed during national workshops. The regional consultation workshop aimed at improving the draft strategy document and receiving the opinion of the MRC countries on the proposed roles for MRC and the proposed strategic objectives. The participants also prioritised activities and considered institutional and co-ordination-related issues. Geographical Project Area The main objective of this study is the Lower Mekong Basin area (LMB), and includes the stretch of the river that passes through Thailand, Lao PDR, Cambodia and Viet Nam. Although the Mekong River system from the common border point between Myanmar/Lao PDR and Thailand (the Golden Triangle ) down to the sea is the focal point of the Mekong River Commission, the project area also covers part of the upper Mekong due to regional multi-modal transport situations, opportunities and prospects. The SWOT Analysis In order to draft the final navigation strategy and to identify the relevant roles of MRC, the outputs from the consultations, national workshops and desk study findings have been processed in a SWOT analysis. This was used to develop the navigation strategy, taking into consideration many different internal and external factors and maximising the potential of the strengths and opportunities while minimising the impact of the weaknesses and threats. This exercise has been of great help to focus the strategic activities into areas where the largest opportunities for further promotion and development of navigation are to be found. The most striking navigation characteristics identified in the SWOT can be summarised as: Legal framework for cross-border navigation The present international regime of navigation on the Mekong is not satisfactory and operates more as an impediment than an encouragement to navigation development. The co-existence of more conventions relating to navigation on the Mekong leads to legal uncertainty as to the exact legal status of the river and causes fundamental policy problems. However, the 1995 Agreement, the recent developments within MRC and the strong Mekong-spirit represent great opportunities. Harmonised rules on technical safety and environmental standards should be formulated. 16

19 Ports and waterways The Lower Mekong Basin waterway network is currently insufficiently utilised. It has a great reserve navigation capacity which should be used. An inter-modal transport approach integrating waterborne transport with other modes is called for. It is also noted that the multiple functions of inland waterways are insufficiently borne in mind. There are great opportunities to be materialized through River-Sea navigation. It is generally recognised that investment in the waterborne transport in the LMB lags behind. Fleet and operations At present, water transportation competes with other transport modes, mainly road and rail, on unequal terms. Increased participation from the private sector could be encouraged by utilising regional experience. Fleet modernisation, certification, and better safety standards are required for the development of trade amongst other things. Safety issues Allocation of resources to maintain modern standardised and accurate navigation aids should be given high priority. As the navigation aids system is not up to the desirable level of safety it does not contribute to critical environmental protection and regional competitiveness. Navigation safety depends on appropriate channel markings, accurate river maps, real-time information and inland water vessels traffic systems. Safe navigation should be one of the fundamental underpinnings of the strategy. Institutional and capacity-related issues National and regional policymakers give very little consideration to inland waterway transport in the LMB compared to the attention given to other modes of transport. Line agencies and MRC lack expertise on navigation matters especially maritime law. In addition, planning capacities within line agencies are insufficient. In order to implement a comprehensive Navigation Programme, a full institutional and well-manned structure for the Mekong River Commission should be established, with responsibilities held by the MRC Secretariat, the National Mekong Committees and at the relevant Line Agencies with links to other stakeholders in the region. Environmental issues The 1995 Agreement encourages environmental impact assessments of all investments that could have an impact on the Mekong. The existing legal frameworks for navigation do not hold any provisions for protecting the environment. There is a tendency to judge the environmental consequences of navigation projects severely. Clean navigation depends on legal and operational frameworks. Social issues There is a limited understanding of the role of navigation in the reduction of poverty. For small communities, the Mekong River and its tributaries are a lifeline to the outside world. The knock on effects of increased trade should be recognised. MRC could develop systems to address critical social issues such as navigation in the flood season, how to promote sustainable tourism and how to assess impacts from navigation projects. The MRC Navigation Strategy Four distinctive roles were proposed for the Mekong River Commission to assist the member countries in realising the immediate objectives: 17

20 1. Develop and Implement Article 9, Freedom Of Navigation The most important and evident role is the responsibility that the Member States assigned to MRC in the 1995 Agreement: to increase regional trade and commerce by opening up borders for cross-border water transportation, or socalled Navigation without Frontiers. The member countries respect MRCS for its neutrality, objectivity and technical excellence. This provides an excellent base for MRC to prepare an operational, legal and technical framework to ensure that the principles of Art. 9. will become reality. 2. Provide Technical Products and Services Acting as a repository for transportation data and information for the basin, MRC is currently developing an integrated database for the basin as a whole and the provision of technically excellent analytical services in relation to navigation, to the member countries. Provision of river level and low water forecasts to the member countries. This activity has already commenced and will be enhanced by the telemeter network of water level (and rainfall) stations and the start of the Flood Management and Mitigation Centre. 3. Strengthen Institutions and Capacity Facilitating capacity building and technology transfer to the member countries in relation to regional navigation. MRC could develop common standard training programmes to be delivered to line agencies in the member countries, including the transfer of technology/know how. Moreover, a highly regarded and stronger institutional structure for the Navigation Programme Unit at the MRC Secretariat, the National Mekong Committees and the Line Agencies will be necessary to implement the Strategy Implementation Programme. 4. Promote and Co-ordinate There are an increasing number of regional projects on water transportation. As a result this sector is gaining in importance and the impact of external investments should be better guaranteed. Presently there is little overall coordination among these different players in the regional infrastructure sector, and duplication has already occurred. Therefore a major task for the MRCS regarding navigation will be to change the perceptions of politicians, donors, national planning agencies and administrations, civil society partners working in the social and environmental sectors and of the public in general. Raised awareness and better understanding of the importance of waterborne transport is a prerequisite for regional navigation development. 18

21 Five Strategic Objectives proposed activities 1 1. Legal Objective Establish an appropriate legal foundation and navigation regime for International Mekong Navigation; and Ensure its implementation and sustainability. Proposed activities according to the roles: Conduct a comprehensive legal study of navigational aspects of Mekong regime de lege lata and de lege ferenda, including the Bassac issue; Develop Article 9 (1995 MRC Agreement) into a clearer foundation for detailed operational, legal and technical navigation agreements; Prepare draft framework agreements for maritime and inland navigation and assist negotiations between Member States: draft frameworks for the stretch between Luang Prabang and the Khone Falls, a maritime framework between the sea and Phnom Penh, and IWT framework between Cambodia and Viet Nam; Facilitate negotiations between Member States and actively mediate; Supervise harmonisation and enforcement of common rules. Develop a comprehensive legal database (including applicable national and international legislations relating to navigation, tariffs of dues and taxes etc.) and make it accessible. Co-operate with ASEAN in this respect; Develop legal expertise within MRC in order to assist Member States; Establish permanent regional advisory board or working group on legal matters relating to navigation (similar to the TAB on Fisheries); Assist Member Countries in establishing efficient supervision systems; and Facilitate and encourage dialogue and co-operation with China and Myanmar on water transport. 2. Trade, Transport and Safety Objective non-physical improvements Develop and improve navigation conditions to increase international trade opportunities for the Countries' mutual benefit; Provide better operations, facilities and capacity to increase safe and efficient Mekong navigation as a separate mode of transport and as part of the regional multi-modal transport network; Feasible removal of relevant non-physical barriers to cross-border navigation; Provide the knowledge base and services to support planning and operations on non-physical aspects; and Reduce accidents in ports, on vessels, and on waterways. Proposed activities according to the roles: Improve and finalise the harmonisation of aids to the Navigation System along the mainstream and tributaries used for international transportation (Cambodia- Vietnam); Formulate standard rules and regulations for international navigation in the LMB; Formalities and charging systems with regionally/internationally accepted rules and standards; Regional harmonisation of systems for data collection, use and dissemination; 1 It is important to note that not all of these proposed activities will be incorporated into the MRC Navigation Strategy Implementation Programme. A process of careful screening, based on priorities and working principles, will be carried out in collaboration with our stakeholders in order to select the relevant activities for the programme components. 19

22 Develop a regional transport planning model, covering domestic and international trade, to identify the optimal use of water transportation within the multi-modal transport system (e.g. BDP); Establish a Regional Data Management Centre and River Information System (a RIS is to provide the knowledge base to support planning and policy formulation, and to provide daily services on a regional level for safe and efficient passage by inland and sea-going vessels on the Mekong River System); Establish an appropriate organisational and institutional structure within MRC and between the MRC Secretariat, the National Mekong Committees and the related Line Agencies to implement the Navigation Programme; and Establish a standardised basis for navigation training among the four MRC Member States. 3. Trade, Transport and Safety Objectives physical improvements Provide better facilities, infrastructure and capacity to increase safe and efficient Mekong navigation as a separate transport mode and as part of the regional multi-modal transport network; Feasible and environmentally sound removal of relevant physical barriers to cross-border navigation; and Provide the knowledge base and services to support planning and operations on physical aspects. Proposed activities according to the roles: Demonstration (pilot) project for gradual introduction of night navigation (for the time being, this will be limited to the stretch of the mainstream from the Mekong Delta up to Phnom-Penh); Demonstration (pilot) project: installation of aids to navigation along selected basin-wide stretches: a) on the UPPER MEKONG (only for inland water transportation) in the Lao PDR and Thailand between Luang Prabang and Vientiane; b) In the MEKONG DELTA (for maritime and inland water transportation): Mekong River from Phnom Penh (Cambodia) to the Vam Nao Pass (Viet Nam), (as per adjusted ESCAP/MRC standardisation of navigation aids). Digitise the Hydrographic Atlas of the Mekong River; Develop contingency plans to deal with emergencies and accidents in waterways and river ports; and Develop a knowledge base on river training works issues, including river morphology and riverbank stability, and propose protection measures. 4. Environmental Objective To balance the environmental consequences of projects against their economic and social significance; To ensure that the ecological health of the river, which is the basis for food security and livelihoods, is not compromised by navigation developments; To promote sustainable, sound and equitable use of all water and water-related resources in the LMB; and To promote the concept of clean river transportation, focusing on strategic prevention of environmental damage from waterway infrastructures/works or from shipping or port accidents, rather than remedying or combating the impacts. 20

23 Proposed activities according to the roles: Regional harmonisation of standards such as: Ship Registration and Inspection, Carriage of Petroleum Products and Dangerous Goods etc. (see also strategic objective 2); Support inclusion of important environmental issues in international navigation agreements, particularly with regard to river training works, carriage of dangerous cargo and petroleum products, cross-border pollution, ship construction and ship sewage specifications and requirements - following best practice and international regulations; Assess and monitor, together with other relevant and directly related partners, environmental impacts from increased navigation; Collect, examine and distribute environmental data relevant for navigation and the potential impact from increased IWT (including river training works); Contribute to improved EIA procedures for navigation related developments among the member countries; Develop contingency plans to deal with emergencies and accidents on waterways and in river ports; Contribute to, and include, relevant environmental issues in navigation training (training of staff in ports, ships or among the relevant authorities); Create increased awareness of environmental issues associated with navigation, both negative and positive, amongst decision makers and stakeholders; and Make reports, studies and impact assessments available for the public and defined target groups on national and regional levels and present the conclusions. 5. Social Objective To improve access to markets, schools and hospitals through water transportation in remote areas; Improve water transportation during floods; Increase river-based employment; and Reduce negative social effects of cross-border navigation. Proposed activities according to the roles: Support the development of a framework for increased cross-border waterrelated tourism; Implement guidelines for incorporation of social issues in major navigation projects or studies; Carry out Social Impact Assessments of major navigation improvement projects; Prepare a baseline for social impacts from river-based tourism in the member countries; Prepare guidelines for assessment and necessary actions to be taken for increased river-based trade; and Prepare a systematic approach for the utilisation of boats and ships during flooding and emergency situations. 21

24 Overview of Proposed Activities: the Navigation Strategy Matrix These five immediate objectives combined with the four overall MRC roles have resulted in twenty possible fields of intervention as shown in the overview table below this section. The total number of activities according to fields of intervention will be taken into consideration for the detailed programme phase. The navigation strategy reflects that MRC is seeking to promote safe and environmentally friendly navigation in the Mekong region. Based on the results of the national and regional workshops, the ranking of importance for MRC involvement was defined as shown in the matrix for the MRC Strategy on Navigation. The relative priority of MRC involvement in Navigation by strategic roles and categories of measures, is given in this table. All proposed activities have been collected in the matrix to be found in Annex 1 of the MRC Navigation Strategy Document. MRC ROLES Provide Products and Service OBJECTIVES Art. 9, Freedom of Navigation Strengthen Institutions and Capacity Promote and Co-ordinate Legal Objectives Trade, Safety Non - Physical Trade, Safety Physical Environmental Objectives Social Objectives High Priority Medium Priority Low Priority From Strategy to Implementation Programme The MRC Navigation Strategy now provides the basis for the preparation of an MRC Navigation Strategy Implementation Programme, including a detailed Action Plan and bankable programme components. The programme formulation team (MRCS experts and consultants), with active involvement in, and consultation with, the National Mekong Committees, relevant line agencies, and other stakeholders, will define the programme components to implement the strategy. National and Regional Expert Consultation Meetings with all stakeholders in the member countries will be needed to ensure ownership of programmes locally. The objective of the meetings is to discuss and obtain feedback from national authorities, institutes, donor agencies and the private sector etc. The output of these meetings should elaborate on the plan for investment priorities, training requirements and short and medium to long term development of water transportation. The consultation meetings will allow the collection of information required to finalise the programme and action plan, in which the feedback and opinions of local authorities and institutes etc. will have been duly taken into account. 22

25 Due to the complexity of the legal issues found during the formulation of the navigation strategy, it is foreseen that extra effort will be necessary in order to adequately and comprehensively address these issues. After reviewing the programme of components and activities, the action plan and the bankable programme will be finalised and presented to the MRC Council in late October/ early November