Integrating Mindanao Saturday February 05 2022 BIMPEAGA HISTORY

Integrating Mindanao Saturday, February 05, 2022

BIMP-EAGA HISTORY BIMP-EAGA begun as a main agenda item in the high level talks of then President Fidel V. Ramos with his BIM counterpart Heads of States in 1992. BIMP-EAGA Inaugural Senior Officials’ Meeting and Ministers’ Meeting (SOM/MM) was held in Davao City, Philippines on 24 -26 March 1994.

BIMP-EAGA • 17 th century-old trade relations Palawan • March 1994 – creation and formalization of BIMP-EAGA in LAND AREACity : 1. 6 million sq. km Davao PHILIPPINES Tourism POPULATION : 70 million BRUNEI DARUSSALAM Labuan MALAYSIA Trade Mindanao Investments Sabah INDONESIA East Kalimantan Sarawak North Sulawesi North Maluku Gorontalo Irian Jaya West Kalimantan Central Sulawesi Central Kalimantan Integrating Mindanao Maluku South Kalimantan South Sulawesi Southeast Sulawesi

BIMP-EAGA Through the Years PIONEERIN G LEADERS Asian Financial Crisis/ El Nino/ La Nina EAGA Revitalizatio n 1994 -1997 1998 -2000 2001 -2005 2006 -2011 Early Gains: v Surge of investme nts and activities (eg. Air linkages – Dvo-KK, Dvo. Manado, Zamboan ga. Sandakan, Marco Polo Hotel, May. Bank, Petronas, v Downtu rn in EAGA initiative s v Regaining investor confidenc e v Organizat ion and Capacity Building of EAGA institutio ns (NSs, BEBC, BIMP FC, etc) v ADB as Reg’l Dev’t Advisor v Air and Sea Linkages including Policy Incentives v Business Development and Investment v Transport and Trade Facilitation v Tourism and Promotion v Natural Resources Development v Institutional Strengthenin g v Enhancing v Decline in EAGA meeting s during this period v Focus on incountry initiative to BIMP-EAGA Implementati Roadmap on Blueprint 2012 -2016 FIVE strategic pillars: Food basket Connectivi ty Tourism Environm BEV 2025 ent SCE 2017 -2025 • Economi c Corridor s • PIPs • ASEAN

BIMP Leaders BIMP-EAGA Strategic, Policy Guidance, and Administration SOM Malaysia Philippines Sectoral MM (yet to be convened) BEBC Other Relevant Ministries BIMP-FC BIMP Line Ministers’ Meetings Food Basket Pillar Infrastructure Connectivity Monitoring Unit Connectivity Pillar Agri. Business Cluster Fisheries WG Local Govt. Forum Transport MM BIMP NS Agro-Industry WG Brunei Darussalam Indonesia MM Agriculture & Fisheries MM Key Trade and Investment Facilitation Cluster Transport Cluster Air WG Sea WG Land WG SMED WG Power Infrastructure Cluster CIQS WG ICT Infrastructure Cluster BIMP Line Ministers’ Meetings Tourism Pillar Tourism Cluster Environment Pillar Environment Cluster Socio. Cultural & Education Pillar Socio. Cultural & Education Cluster HRD WG SCD WG

BIMP-EAGA: RENEWAL OF CENTURIES-OLD BROTHERLY TIES Integrating Mindanao 6

Integrating Mindanao

BIMP-EAGA Vision 2025 Connectivity Food Basket • Infrastructure Development • Air, Sea, & Land Services • Power Interconnection & Renewable Energy • ICT • Integrating Trade Facilitation • Food Security • Export Development • Sustainable Livelihood Mindanao Tourism • Communitybased Ecotourism • Marketing and Promotion Environment • Sustainable Management of Critical Ecosystems • Climate Change • Clean and Green Production Technologies • Trans-boundary Issues • Environment Mainstreaming Socio-Cultural and Education • • • Human Resource Skills and Technical Development Education Socio-Cultural

BIMP-EAGA Vision 2025: Charting a New Vision

Investment Profiling in BIMP-EAGA Corridors Greater Sulu-Sulawesi Corridor (GSSC) Indonesia Economic Corridors West Borneo Economic Corridor (WBEC) Integrating Mindanao 10

BIMP EAGA Economic Growth Corridors & Transport Connectivity Sabah Development Corridor (SDC): • Agro-based Industry Sarawak Corridor of Renewable Energy (SCORE): • Palm Oil • Fish and Aquaculture • Livestock Mindanao Growth Corridors: • Tropical Fruits (Banana, Pineapple & Mango) • Rice • Poultry • Coconut • Mariculture Indonesia Growth Corridor • Corn • Fertilizer • Cement Integrating Mindanao

BIMP EAGA Transport Connectivity Integrating Mindanao

Pillar 1: Enhancing Sub-regional Connectivity Integrating Mindanao 13

Air Connectivity Existing Air Linkages Integrating Existing (Air) Mindanao Legend: Proposed (Air) • KK – BSB (Maswings) Proposed Air Linkages • Kuching - BSB (MASwings) • Puerto Princesa – KK • • Zamboanga – Sandakan Kuching – Pontianak (MASwings) • Balikpapan – Kuching (MASwings) • Tawau – Tarakan (MASwings) • Balikpapan- KK (MASwings) • Davao – Manado (Wings Air. Charter) • Pontianak- Miri (Kalstar Air) • Tarakan – KK (Kalstar Air)

Sea Connectivity Existing Sea Link • Zamboanga – Sandakan (Passenger Ferry) New Initiative • Davao – Gen. San – Bitung (RORO) Proposed Sea Linkages Integrating Mindanao Existing (Sea) Legend: Proposed (Sea) • Brooke’s Point – Kudat (RORO) • Zamboanga – Muara • Brooke’s Point – Labuan – Muara

Pillar 2: Establishing BIMP-EAGA as a Food Basket for ASEAN and the Rest of Asia Integrating Mindanao 16

BIMP-EAGA Food, Agribusiness and Logistics Corridors (Indicative Mapping) South Western Mindanao & Palawan Corridor [tropical fruits (pineapple, banana, mango, papaya), rice, coconut, rubber, fishery (seaweeds, tuna & sardines), poultry] Sabah Development Corridor -Oil palm - cocoa - rubber - seaweed Sarawak Corridor of Renewable Energy (+ oil palm, fish & aqua, livestock) Integrating Mindanao Sulawesi & Kalimantan + Maluku, Gorontalo & Papua Corridor -Copra -Cloves -Coffee -Cattle -Rubber -Cacao Figure 2. EAGA Economic Corridors viz Proposed Food Corridors The previously identified Economic Corridors of EAGA (under ADB TA) can be reviewed & expanded.

Pillar 3: Promoting BIMP-EAGA as a Premier Regional Tourism Destination Integrating Mindanao 18

BIMP-EAGA World Heritage Sites Kinabalu National Park, Kota Kinabalu, Sabah, Malaysia Puerto Princesa Subterranean River, Palawan, Philippines Integrating Gunung Mulu National Park, Mindanao Miri, Sarawak, Malaysia Mt. Hamiguitan Range Wildlife Sanctuary, Davao Oriental, Philippines 19

Community-based Ecotourism (CBET) Pilot Sites Puerto Princessa Underground, Palawan, Philippines Kg. Melilas, Brunei Darussalam Benuk Village, Sarawak, Malaysia Integrating Mindanao Lake Sentarum, West Kalimantan, Indonesia Kayan Mentarang East Kalimantan , Indonesia Lake Sebu, Mindanao, Philippines Manado Tua, North Sulawesi, Indonesia Tanjung Putting, Central Kalimantan, Indonesia 20

Community-based Ecotourism (CBET) New Sites Kampung Patau-Patau, Labuan, Malaysia Santa Cruz Island, Zamboanga City, Philippines Integrating Kampung Kiudang, Brunei Darussalam Mindanao Kampung Sungai Labu, Labuan, Malaysia 21

Pillar 4: Ensuring Sustainable Management of the Environment Integrating Mindanao 22

§ Climate Change Vulnerability Assessment Ø Capacity building program for local governments and local communities on climate change mitigation and adaptation best practices § Operational collaboration with Coral Triangle Initiative (CTI) and the Heart Of Borneo (Ho. B) Integrating Mindanao 23

New Pillar 5: Socio-Cultural and Education Integrating Mindanao 24

New Pillar: Socio-Cultural and Education § Components Ø Human Resource Development ü Technical and vocational education and training ü Higher education – university network and student exchange Ø Socio-Cultural Development ü Social and cultural heritage ü Sports and other events Integrating Mindanao 25

BIMP-EAGA FRIENDSHIP GAMES Integrating Mindanao 26

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What’s in it for M/SMEs? • Increased participation of SMEs in the corridor supply/value chains - access to financing, technology, and markets at the in-country level. • Improved joint public-private sector trade and investment promotion initiatives • Simplified trade facilitation policies Integrating Mindanao

BIMP-EAGA Activities for 2017 • BIMP-EAGA CIQS WG Meeting, Kuching, Sarawak, Malaysia, 8 -9 August 2017 • Trade Exploratory Mission in Balikpapan, Indonesia 9 -11 August 2017 • BIMP-EAGA Trade and Investment Facilitation Cluster Meeting, Balikpapan, Indonesia, 14 -16 August 2017 • Exploratory Trade Mission in Manado (Chamber initiated), Manado, Indonesia, September 2017 • BIMP-EAGA Transport Cluster and Senior Transport Officials Meeting (STOM), November 2017 Integrating Mindanao

Part 2 a: SEZs as Development Approaches in Subregional Program • Include goals and objectives, e. g. are SEZs designed for: - Value Chain / Value Adding Cooperation / Complementation Export promotion Attracting FDI Establishing global manufacturing Developing logistics Liberalizing trade Promoting regional and global trade networks Increase employment Reduce poverty Develop border areas Integrating Mindanao 30

Part 2 a: SEZs as Development Approaches in Subregional Program • Is there a “strategy for SEZ” development in the subregional program? - coordinated approach (integrates trade expansion and growth with SEZs development) - transform subregions into sustainable manufacturing and production bases integrated in regional and global markets - improve social and economic welfares – Mention on-going or planned efforts of SEZs • Enticong Border Crossing and all other projects mentioned in the BEV 2025 Integrating Mindanao 31

Part 3: SEZs subregional and bilateral good practices and challenges • Based on presentations and discussions in Modules 1, 2 and 3 (SEZs, SBEZs and CBEZs in GMS, Malaysia in economic corridors, China’s overseas cooperation, etc. ): – What are good practices that make cooperation work? • One shared VMG • Transparency • Trust – What are challenges that impede (prevent) SEZs cooperation? • Security • Issue on Sovereignty • Conflicting policy Integrating Mindanao 32

Part 4: Strategies and Actions • Given lessons learned in Part 3, how can we move forward in using SEZs as a tool for RCI and as catalyst for economic corridors, value chains and production networks in BIMP-EAGA, IMT-GT and GMS? – BIMP – EAGA as the platform for coordination, cooperation • What broad strategies and actions will you propose at subregional level? – Recommend for the creation of SEZ Working Group under the Trade and Investment of Connectivity Pillar Integrating Mindanao 33

Part 4 a: Proposed or Planned SEZ or SBEZ • Propose one SEZ or SBEZ (i. e. plans underway or potential) applying the concepts and lessons learned; where will it be located? – Within the BIMP EAGA focused areas • Present the rationale and subregional justification of establishing SEZs or SBEZ; what are linkages to the overall development strategies of BIMP-EAGA, IMT-GT and GMS (refer to Part 1) – As specified in the BEV 2025 and may be defined by the proposed SEZ Working Group • What type of SEZ do you propose? (refer to slide) – Special Transborder Economic Zone Integrating Mindanao 34

Integrating Mindanao 35

Part 4 b: Proposed or Planned SEZ • Assess the enabling conditions to attract investments for the proposed SEZ (refer to framework) at various levels: - Micro : Respective Economic Zones - Meso : Focused Economic Corridor (per country) - Macro: BIMP-EAGA Cooperation Integrating Mindanao 36

Enabling conditions to attract investment: Infrastructure One stop shop Logistics services Custom facilitation Marketing services Incentives Supporting industries Factor availability ( labour, skilled labour, other resources) Supporting institutions Transport and logistics Export infrastructure Trade, FDI, labour, Industrial, Monetary and fiscal policies Micro Meso Macro Integrating Mindanao International GVC expansions International Demand conditions

Part 4 c: Proposed or Planned SEZ or SBEZ Conduct a brief SWOT Assessment of your SEZ; use key words/phrases only Proposed or Planned SEZ: Comparative Advantages/ Natural Key Assets (Strengths) Economic and Development Potential (Opportunities) Implementation Bottlenecks (Weaknesses) Agri-aqua marine based economy Abundance of resources Eco-tourism HOB, CBET, UNESCO Heritage Sites, one promotion Inconsistency of policy Environmental issue, land regulatory issue implementation/ Environmental issue interest (National vs local) Established mechanism Country support, institutional linkages Integrating Only Mindanao Potential Threats, e. g. social, environmental etc (Threats) Political thrust top three (most important); focused and specific to 38 proposed SEZ ; Keep It Short & Simple!!!

Part 4 d: Proposed or Planned SEZ • What will be the strategic positioning and targeting of the SEZ based on the type of zone you identified? - Vision: BEV 2025 - Strategic objectives: Regional cooperation and complementation (refer to BEV 2025) - Targeting based on Type, Activity and Location (refer to slides) Agri-Aqua marine / Ecotourism (location is dependent to the comparative advantage of each country) • What is your proposed SEZ institutional arrangements? SBEZC (Special BIMP-EAGA Economic Zone Commission may be placed at the Ministerial Level) for facilitation, Monitoring and Evaluation Integrating Mindanao 39

B 3. 2: Targeting Activity labour intensive More skill intensive Technolo gy intensive Innovatio n zones Highly specialise d zones Location: Public vs private choice Near Border SEZs within the country • Near port Integrating • Near big city Mindanao • In backward region ( Falta, Santacruz) Cross border zones GTs and Economic corridors

Types Institutional arrangements Fully private: BOO, BDO, DCMF, DBFO, DBOM) Lease to private: BBO, LDO BOOT BOT Managing a state-owned SEZ for a limited period of time. Aspects of services or utilities are developed and managed by the private entity. Integrating Mindanao Services or utilities or their maintenance are subcontracted to specialist firms for management for a fee Fully government owned and managed

Part 4 e: Proposed or Planned SEZ • Use matrix below for your SEZs stakeholders; key words and phrases only Stakeholders Interest in the SEZs Role in the SEZs Resources they bring to the SEZs BIMP-EAGA Leaders Attainment of BEV 2025 Vision Provide policy direction Joint resources Private Sector Profit sharing investors Capital, technology, skills, market access, R&D Academe Knowledge management Knowledge sharing, skills transfer R&D, KM, Network LGUs/Zone Council Improvement of downstream economy Local resources Community /residents Quality of life Local resources Manpower / human capital Integrating Only Mindanao top five (most important); focused and specific to the SEZ 42

Part 4 f: Proposed or Planned SEZ • How will you monitor and evaluate the SEZ? - Establish baseline - KPI and KRA - Attractiveness evaluation indicators to be considered (refer to slide) - Tools (refer to slide) Integrating Mindanao 43

Administrative processes Integrating Mindanao Incentives offered Trade facilitation Facilities offered Social infrastructure Offsite infrastructure Onsite infrastructure E 1. 2: Attractiveness evaluation indicators

E 2. Monitoring and evaluation tools Formal survey Cost-benefit and costeffectiveness analysis Integrating Mindanao Rapid appraisal methods Public expenditure tracking surveys Participatory methods ( continuous monitoring) Impact evaluation

Thank You Terima Kasih Maraming Salamat Brunaie Darussalam: Norisah Noorlidah Indonesia: Hermina Malaysia: Teo Philippines: Olie Hexan Jefrie