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North-South Economic Corridor: A Case Study. The Economic Corridor Approach. Infrastructure is developed in specific geographical areas based on economic potential. Usually starts with transport links, but extends to other infrastructure as well as the “software” for their optimal use.
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The Economic Corridor Approach Infrastructure is developed in specific geographical areas based on economic potential. Usually starts with transport links, but extends to other infrastructure as well as the “software” for their optimal use. Some Characteristics of Economic Corridors: • Create links to major markets; • With nodal points – centers of enterprise development; • Extend the benefits of improved transport linkages to remote locations and integrates them with more prosperous areas; • Open up investment opportunities; • Promote synergies through the clustering of projects; • Provide demonstration effects.
Development Potential • Endowed with abundant natural and human resources • Many complementarities among NSEC areas • A “natural” economic corridor
Strategic Role in GMS Development • Serves as one of the main land routes in GMS • Opens up another sea access to landlocked areas • Links the economic hubs in the central and northern areas of the GMS region • Improve infra along the axis of corridor • Serves as principal gateway for China-ASEAN trade
TOWARD SUSTAINABLE AND BALANCED DEVELOPMENT OF THE NORTH-SOUTH ECONOMIC CORRIDOR Strategic Framework Vision Ultimate Goals Objectives Ensure that NSEC development is economically, socially and environmentally sustainable Enhance the competitiveness of the corridor Pursue underlying comparative advantages and complementarities Dynamic, progressive, well-integrated Locomotive for socio-economic development Able to attract domestic and foreign investment Functioning as gateway for ASEAN-PRC trade Generate higher income Increase employment opportunities Reduce income disparities Improve living conditions
TOWARD SUSTAINABLE AND BALANCED DEVELOPMENT OF THE NORTH-SOUTH ECONOMIC CORRIDOR Strategic Framework Strategic Priorities Objectives Mainstream measures dealing with social and environmental concerns Ensure that NSEC development is economically, socially and environmentally sustainable Enhance the competitiveness of the corridor Pursue underlying comparative advantages and complementarities Strengthen physical infra needed for economic integration Facilitate cross-border transport and trade Promote investment in key sectors and development of industrial clusters Address human resource constraints Establish/enhance institutional arrangements and mechanisms
North-South Economic Corridor Project • Regional development initiative between PRC, Lao PDR, and Thailand. • Road project will link 2 rapidly growing economies of PRC and Thailand via Lao PDR. • Project will provide access to markets, income and employment opportunities, and enhance tourism development potential in the area.
North-South Economic Corridor 66.43km – Boten to Louang Namtha (PRC) 75.85km – Louang Namtha to Ban Sod (Lao PDR) 84.00km – Ban Sod to Houayxay (Thailand)
NSEC Project Components NSEC Road Project Capacity Building Component Road Component Resettlement Component Special Action Plan Component Income Restoration Env. Impact Assessment & Monitoring Road Upgrading Resettlement Plan (PRC) Bridge Construction Rural Access Road Resettlement Plan (Lao PDR) Policy and Procedure Water and Sanitation Ferry Facilities Resettlement Plan (Thai) Stakeholder Analysis Community Infrastructure Bypass Road Construction Rapid Appraisal and Evaluation
Total Project Costs An additional $8.5m is estimated to complete the repair works on the Thailand section of the road.
Road Component Issues • Increase in project cost due to defects, much greater earthworks required, and price escalation. • Delay in schedule due to wet season. • Road charges cannot be implemented, thus affecting the financial viability and maintenance of the project.
Resettlement Component • 2,550 people in 502 families were affected. • 122 hectares, mainly rice land, and 1.7 hectares of residential land is to be acquired. • 543 dwellings, 61 small shops, and 133 rice storage have to be relocated. • Delay in the preparation and implementation of resettlement plan.
SAP Component • Income restoration through fishpond operation, transforming idle lands into productive rice paddies, increasing productivity of existing rice paddies, and backyard hog raising. • Construction of water supply system and latrines in selected villages. • Construction of access roads to school, cultivation area, within the villages, and improvement of some school yards.
Capacity Building Component • Establishment of environmental monitoring plans and procedures. • Capacity building of the Environmental Research Institute. • SEIA mitigating measures not properly implemented due to non-inclusion in the contract with contractors. • No environmental bond required in the contract.
Project Outcome • Travel time was reduced dramatically by 60%. • Vehicle Operating Cost (VOC) is reduced by 43% for cars, 14% for buses, and 21% for heavy trucks. • Volume of traffic in the area increased also.
Project Completion Report • As member of the Project Completion Review Mission (PCRM), you are to evaluate the overall performance of the project. • You can use Relevance, Effectiveness, Efficiency, Sustainability, and Impact as basis for evaluation. • Analysis should be supported by facts or information provided in the case.
