Committee on Industry, Minerals and Energy

The year under review was marked by two historic developments in the area of industrial cooperation. The first was the inauguration of the ASEAN Aceh Fertilizer Project (Indonesia) by H.E. the President of Indonesia on 18 January 1984. The signing of the Basic Agreement on ASEAN Industrial Joint Ventures (BAAIJV) in Jakarta on 7 November 1983 by the ASEAN Foreign Ministers was the other, The Agreement provides the framework for the private sector of any two ASEAN countries to enter into joint ventures under the BAAIJV scheme under which the AIJV products will enjoy special tariff preferences.

The year also saw the approval, by the Economic Ministers, of an AIP for Singapore. The Project, to be known as the ASEAN Vaccine Project (Singapore), will manufacture Hepatitis B Vaccine. Viral Hepatitis is among the last of the unconquered infectious diseases known to man. It is estimated that around 10% of the ASEAN population are known carriers.

The Committee on Industry, Minerals and Energy (COIME) held its Twenty-First and Twenty-Second Meeting in Manila in August and December 1983, respectively, while the Twenty-Third Meeting took place in Jakarta in April/May 1984.

ASEAN Industrial Projects (AIP)

ASEAN Aceh Fertilizer Project (Indonesia)

The Project was completed in October 1983 with the production of ammonia and urea commencing during the same month, The plant started commercial production since 1 January 1984. It has the capacity to produce 570,000 tons of urea per annum and capacity utilization is targetted at 75% for 1984.

ASEAN Urea Project (Malaysia)

Overall progress of the Main Contract work was estimated at 63.6% in April 1984. The following is the status of each project activity:

         Engineering	: 96.5% completed
         Procurement	: 93.3% completed
         Construction	: 32.2% completed

The Joint Venture for the ASEAN Copper Fabrication Project (Philippines) was approved by the Fifteenth Economic Ministers Meeting in Bangkok in October 1983. Subsequently, a meeting of shareholder entities was convened in Manila on 1 March 1984 where the Articles of Incorporation and By-laws of the Project Company (ASEAN Copper Products, Inc.) were approved.

Invitation to Bid (ITB) documents were also released to 18 approved bidders on 29 August, 1983. Submission of bids was set for 30 June 1984 for the Technical Bid and 30 September 1984 for the Commercial Bid.

ASEAN Vaccine Project (Singapore)

The Sixteenth Economic Ministers Meeting in Jakarta in May 1984, approved the proposal for the manufacture of Hepatitis B Vaccine as the AIP for Singapore, The cost of the project is estimated at S$ 18 million. Initially, the project is expected to yield from 1 million doses (10kg/duse) to 2 million doses of vaccine annually.

Rock Salt-Soda Ash Project (Thailand)

The ASEAN Soda Ash Company (ASA) has submitted the report of Kali and Salz Company, which prepared a feasibility Study on the rock-salt mine, to the Ministry of Industry of Thailand. The Thai Government is currently evaluating the study.

Preliminary findings indicate that the rock salt mine with a 600,000 ton per year capacity is a viable proposition.

ASEAN Industrial Complementation

To complement trading in automotive components listed in the first AIC package, proposals for the brand-to-brand approach to the AIC from principal automotive manufactures were considered by COIME. Subsequently a meeting between COIME and the ASEAN Automotive Federation (AAF) of the ASEAN - CCI on the one hand, and the principal automotive manufacturers and their franchise holders on the other, was held in Jakarta in November 1983 to discuss the scheme in detail.

ASEAN Industrial Joint Venture (AIJV)

The ASEAN Foreign Ministers, at their Special Meeting held in Jakarta in November 1983, signed the Basic Agreement on AIJV formally launching the scheme. At the same time, a Supplementary Agreement was also signed to amend certain provisions of the BAAIJV.

The Sixteenth Economic Ministers Meeting in Jakarta in May 1984 approved the following products for inclusion in the first list of AIJV products:

a) Constant Velocity Joints (Fixed and Plunging Types) and/or finished, semi-finished parts and sub-assemblies thereof;

b) Mechanical and Power Rack and Pinion Steerings including Tierods, Ball Joint and Linkages and sub-assemblies thereof;

c) Frit; and

d) Motorcycle Electrical Parts (Composed of Main Switch Assy, Speedometer Assy, Tachometer Assy, Pilot Lamp Assy, Stop Switch, Head Light Assy, Flasher Relay Assy, Audio Pilot Assy, Fuel Gauge Assy, Rectifier, Ignition Coil Assy, Regulator Assy, Rectifier Assy, Condenser Discharge Ignition Unit, Lever Holder Assy, Switch Handle Assy).

Cooperation in Minerals

The feasibility study of the ASEAN project on the Beneficiation, Utilization and Marketing of Kaolin and Barite was completed with the support of Australia. The terms of reference for the project "Documentation Study on Establishing an ASEAN Training Centre on Mine Safety and Health", had been approved.

With regard to the project on "Stability Problems in Open Mines in Soft Ground", initial discussions are going on between ASEAN and the EC.

An ASEAN-EEC Mineral Legislation meeting will be held in Bangkok in November 1984. It will cover a review of mineral legislation worldwide and the analysis of legislation in ASEAN countries.

A Regional Workshop on Some Aspects of Mineral Development in Southeast Asia was convened in Jakarta in September 1983. The Workshop brought together a number of specialists from government, industry, financial and research developments in the field of minerals in the region.

ENERGY

ASEAN Cooperation on Power Utilities

The Third Meeting of the Heads of ASEAN Power Utilities/Authorities was held in Manila in February 1984 to review the progress of the projects under their purview. The Meeting decided on the following:

1. To explore further training in the areas of mini-hydro project design and in hydrologic methodologies and hydrologic simulations;

2. The Transmission Planning Software Project will continue as a forum for exchange of user experience with a view to incorporating enhancements to the software;

3. The studies and other activities pertaining to each of the seven interconnection projects and the exchange of information on power system planning, implementation and operation shall be continued;

4. To continue cooperation in lighting and lighting outrage prevention; efficiency of generation, transmission and distribution, and system protection;

5. Endorse curriculum modules relating to management and supervisory training;

6. Establishment of a Data Bank on Geothermal Power Development;

7. To exchange information in rural and urban electrification;

8. To explore further member countries' testing facilities and certification system so as to enhance cooperation and standardization; and

9. To exchange information on current developments in electric power information.

   ASEAN Cooperation on Coal

   The ASEAN Coal Development Study, assisted by the Asian Development Bank (ADB) and the ESCAP Regional Energy Development Program (ESCAP-REDP) was launched with the appointment of a consultant firm.

   Based on the terms of reference set up by the ASEAN Expert Group on Coal, the consultant submitted an Inception Report to the Project Steering Committee Meeting in Bangkok in February 1984. The Steering Committee finalized the detailed work plan for the second phase of the Project.

   For more information, please refer to the project details