Principles and Criteria for Recommending EA Infrastructure Investment Projects

1. Principles and Criteria for Recommending EA Infrastructure Investment Projects By Dr. FANYing yingfan1709@cfau.edu.cn 10 May 2008 China Foreign Affairs University(CFAU), Beijing China The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

2. 1. Geographical Oriented Geographically, the planned project should be located within the territories of the 10+3 countries in East Asia, and the purpose is to allocate relatively limited resources of East Asia to prioritized areas in the region, so as to alleviate the constraints of infrastructure “bottleneck” on East Asia regional economic development, to construct an environmentally friendly model of sustainable development in the region, and to benefit the people of this region. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

3. EA economies’ infrastructure investment/GDP The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

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6. 2． Poverty reduction oriented The planned project should assume the role of public goods across national boarders or with more than one country involved. A project with only one country involved will be deemed unqualified unless it generates many economic activities to be spilled over to other countries in the region. In particular, it must serve to narrow growth gap within the region, to alleviate poverty in less developed countries and localities within the region, to enhance regional capacity building, to improve overall economic quality, to build up competence for indigenous growth, and to promote common progress and prosperity of the region effectively. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

7. Source: Third ASEAN State of the Environment Report 2006 P28 The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

8. Road construction impact The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

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11. 3. Full play resources advantage oriented The planned project should be able to bring into full play the advantage of the complementarity among countries in this region, such as abundant capital, advanced technology, great market potential, rich labor resources, etc.. The planned project should make particular efforts to draw on the rich experience of East Asia in infrastructure building and facilitate economic and social progress of participating economies of the Fund. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

12. 4. economic potential oriented To gain active support from East Asian governments, the planned project must be a key project necessary for the country’s development with considerable benefits, great economic potential and outstanding strategic value, which facilitates the interconnection of East Asian infrastructures, translates this infrastructure investment cooperation into more opportunities for economic development, and gives a strong boost to East Asian regional cooperation. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

13. Infrastructure’s role and record The precise linkages between infrastructure and development are still open to debate. However, infrastructure capacity grows step for step with economic output- a 1 percent increase in the stock of infrastructure is associated with a 1 percent increase in gross domestic product (GDP) across all countries.------World Development Report 1994 Infrastructure for Development p2 Infrastructure represents, if not the engine, then the "wheels" of economic activity. ------World Development Report 1994 Infrastructure for Development p14 The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

14. 5. Community oriented The planned project should serve to facilitate the freer flow of production factors in the region, further develop the East Asian industrial chain and international division of labor, enhance the competitiveness of East Asia as a whole and its status and weight in the global economic landscape, and speed up the cooperation in East Asia featuring stability, harmony and win-win result, so that East Asia is forged into a logistics and distribution base, a trade and commerce base, a processing and manufacturing base and an information exchange center, which work together to ultimately shape the East Asian community spirit and identity. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

15. 6. Feasibility oriented The planned project should be feasible in implementation and business operation. It should be able to pool more private investment for project building and management, and serve to consolidate partnership among the government, the public and the private sector in infrastructure building. The participation of the private sector serves not only to reduce governmental fiscal burden, but also to share risk and responsibility, to enhance supervision and administration, and to improve financing efficiency in the infrastructure project. The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China

16. Thank you! The 4th NEAT Conference on East Asian Investment Cooperation, Beijing China