REGIONAL ECONOMIC INTEGRATION THROUGH IMPROVED MEKONG NAVIGATION 4 TH WWF MEXICO, MARCH 2006

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1 REGIONAL ECONOMIC INTEGRATION THROUGH IMPROVED MEKONG NAVIGATION 4 TH WWF MEXICO, MARCH 2006

2 CONTENTS 1. General situation on Mekong Navigation - Opportunities and problems for cross- border trade 2. MRC Navigation Strategy and Programme - Trade Facilitation Role of Mekong River Commission

3 Mekong River Commission According to the 1995 Agreement, MRC s role is to promote Cooperation in all fields of sustainable development, utilisation, management and conservation of water and related resources of the Basin.

4 IWT (Inland Water Transportation)

5 Maritime Transport

6 The governments and private sector realize the advantages of waterborne transport: cheap because of its large cargo carrying capacity relieves road congestion and maintenance boosts tourism low energy consuming mode of transport Component C3 - FCM

7 Importance of inland waterway transport for the local communities

8 other aspects to be considered: the potential of the tourism industry

9 Thai export to China: 1996: USD 550 million 2003: USD 5.7 billion Thai import from China: 1996: USD 1.3 billion 2003: USD 6 billion Between million tons of cargo are transported per year in the Mekong Delta of Viet Nam

10 CHALLENGES Physical and non-physical impediments for regional trade Lack of awareness of potential and possibilities No regional transport planning Poor regional navigation agreements no frameworks Only training in Viet Nam

11 Currently there are: no rules of the road no regulations for carriage of dangerous goods no proper facilities no contingency plans no means to combat oil pollution no insurance requirements

12 1995 MRC Agreement Article 9: Freedom of Navigation

13 In collaboration with our stakeholders through consultation visits, national workshops, and the regional workshop MRC Navigation Strategy

14 NAVIGATION STRATEGY AND PROGRAMME C1 C2 SOCIO-ECONOMIC ANALYSIS AND WATERBORNE TRANSPORT PLANNING LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION C3 C4 TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY INFORMATION, PROMOTION AND COORDINATION C5 INSTITUTIONAL DEVELOPMENT

15 Development Objective of the MRC Navigation Strategy To facilitate coordination and cooperation in developing sustainable, effective and safe waterborne transport in a protective manner for the waterway environment To increase the international trade opportunities for the mutual benefit of the MRC Member Countries

16 C1 C2 SOCIO-ECONOMIC ANALYSIS AND TRANSPORT PLANNING LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION C3 C4 TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY INFORMATION, PROMOTION AND COORDINATION C5 INSTITUTIONAL DEVELOPMENT

17 Budget : Component 1 4,230,000 Component 2 1,631,000 Component 3 6,770,000 Component 4 3,982,000 Component 5 5,955,000 TOTAL 22,568,000

18 Chong Kneas Port Development (ADB) Key issues (1): Master Plan for Navigation in Cambodia (CNMC- Belgium) Under-utilization of navigation for - domestic trade - cross-border trade (incl. Tourism) Isolation of remote riverine communities and importance of Country Craft Bassac Feasibility Study for Navigation (World Bank) Mekong River Navigation Study (VNMC - Belgium) C1: SOCIO-ECONOMIC ANALYSIS AND TRANSPORT PLANNING Budget: USD 4,230,000 Time Frame:

19 This first component will provide tools to target investments to improve navigation infrastructure within the MM network develop navigation links to rural communities protect the interest of the people living along the river

20 Key issues (2): Non-physical barriers to cross-border navigation and trade Diversification of existing Navigation Agreements C2: LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION Budget: USD 1,631,000 Time Frame:

21 2000 Upper Mekong-Lancang Agreement and Protocols, Between China, Myanmar, Lao PDR, and Thailand 1995 MRC Agreement, article 9, Freedom of Navigation, Between Cambodia, Lao PDR, Thailand and Viet Nam 998 Bi-lateral Agreement on water transportation etween Cambodia and Viet Nam, ow working on the protocols

22 C2 LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION Outputs: A harmonised legal and operational framework to guarantee freedom of navigation Assisted negotiations and mediation

23 Key issues (3): Key issues (3): Accidents (loss of life/cargo) Physical barriers Pollution C3: TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY Budget: USD 6,770,000 Time Frame:

24 SAFETY IMPROVEMENT = ENVIRONMENTAL PROTECTION This third component will reduce the accidents in ports, on the vessels and on the waterways remove physical and nonphysical obstacles to navigation taking into account environmental and social aspects make Mekong navigation green IMPACTS OF 0 SCENARIO?

25 Key issues (4): Negative perceptions of navigation among public and policy makers Lack of operational and statistical information C4: Information, Promotion, Coordination Budget: USD 3,982,000 Time Frame:

26 This fourth component Mekong River Information System promote private investments demonstrate the advantages Coordination with Partners

27 Mekong River Information System River Level Monitoring Voyage Planning Notices to Skippers

28 Key issue (5): How to implement the Programme? Capacity for implementation? C5: INSTITUTIONAL DEVELOPMENT Budget: USD 5,955,000 Time Frame:

29 CONTRIBUTION BY BELGIUM OUTPUT 5: 5: PILOT PROJECTS IN IN THE LAO PDR, THAILAND AND VIET NAM DESIGN OF THE MASTER PLAN C1IN CAMBODIA SOCIO-ECONOMIC ANALYSIS AND TRANSPORT PLANNING C3 OUTPUT 1: 1: INSTALLATION OF AIDS TO NAVIGATION (CHANNEL MARKING) TRAFFIC SAFETY AND ENVIRONMENTAL SUSTAINABILITY OUTPUT 3: 3: RISK ANALYSIS AND CONTINGENCY PLANS C5 INSTITUTIONAL DEVELOPMENT OUTPUT 2: 2: LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION C2 LEGAL FRAMEWORK FOR CROSS-BORDER NAVIGATION C4 INFORMATION, PROMOTION AND COORDINATION OUTPUT 4: 4: COORDINATION, CAPACITY BUILDING AND TRAINING

30 Thank you for your attention,