COOPERATION IN MINERALS AND ENERGY


During the year under review most of the activities of ASEAN cooperation in minerals were implemented through the ASEAN Regional Development Centre for Mineral Resources (ARDCMR) and coordinated by Indonesia in collaboration with the ASEAN Secretariat. The Centre continued to provide the leadership and resources to implement the Work Plan developed by the ASEAN Expert Group on Minerals (AEGM) in August 1993. The Work Plan included activities relating to: (a) the development of a database on industrial minerals supply, demand and resources of ASEAN Member Countries; (b) the establishment of an inventory of industrial minerals research and development (R&D) and training facilities as ell as available expertise in ASEAN Member Countries; and (c) the development of a directory on investment opportunities in industrial minerals in ASEAN.

As part of the continuing process to review cooperation activities in the sector, an ASEAN Consultation on Minerals Cooperation was convened in Yogyakarta from 1 to 3 November 1994 to re-examine the ASEAN Programme of Action and to identify the various constraints in the implementation of the decisions of the AEGM. The ConsuItation endorsed the objectives and the scope of ASEAN cooperation in minerals. It underscored the need to concentrate future cooperation activities on areas of common concern to Member Countries. Recognizing that commodities were essential for economic growth, it recommended that the sectoral cooperation be focused primarily on industrial minerals.

Following a Forum on Trade and Investment in Minerals held in Yogyakarta from 20 to 21 March 1995, it was decide and that cooperation in the minerals sector in the medium term be focused on the promotion of trade and investment in industrial minerals.

The Forum also decided that the programme of action for future ASEAN cooperation in industrial minerals should be private sector-driven. However, the Forum also recognized the importance of the public sector in creating a conducive environment which could attract private sector participation.

The ASEAN Federation of Mining Associations (AFMA) organized the Fourth Asia-Pacific Mining Conference and Exhibition in Jakarta from 26 to 29 October 1994 under the theme "World Mining Challenges to the Next Century". The organization of the Mining Conference and Exhibition is a continuing effort pursued by AFMA to boost mining development in the Asia-Pacific region.

During the year under review, new directions for the enhancement of ASEAN cooperation in the energy sector ere charted hen the ASEAN senior energy officials held the Special Senior Officials Meeting on Energy Cooperation (SOMEC) from 21 to 22 June 1994. Among these recommendations is the endorsement of a new ASEAN Medium-Term Programme of Action on Energy Cooperation.

The ASEAN Medium-Term (1995-1999) Programme of Action on Energy Cooperation has the general objective of pursuing activities which would enhance ASEAN economic cooperation through the following means : (1) coordination and enhancement of the implementation of existing energy cooperation programmes; (2) development and promotion of ways and means of popularizing the use of indigenous non-oil energy resources for fuel and electric power generation purposes; (3) establishing and formulating a more effective overall ASEAN energy training, research and development network of existing regional energy institutions i. the Member Countries; (4) establishing an ASEAN policy framework and encouraging regular exchange of information on the formulation and implementation of energy policies; (5) synchronizing activities of the various ASEAN energy fora toward predetermined objectives; and (6) promotion of sustainable self-supporting ASEAN cooperation activities to address issues of common concern. Energy sub-sectors of common interest identified in the Programme of Action for more intensive follow-up are : electricity, coal, oil and gas, geothermal resources, non-renewable sources of energy (NRSE), energy efficiency/conservation, diversification of energy sources, energy and environment and energy policy and planning. The Medium-Term (1995-1999) Programme also clearly delinated the mechanism for its implementation.

The 11th Meeting of the Forum of Heads of ASEAN Power Utilities/ Authorities met in Bandar Seri Begawan from 10 to 11 January 1995 and agreed that as recommended by SOMEC, and approved on an ad referendum basis by AEMEC, the Forum would become a separate independent group to address ASEAN cooperation in the power sector. The Forum will, however, continue to report and take instructions from SOMEC and AEMEC in the electricity subsector. Under the new independent status of the Forum more flexibility is expected in pursuing cooperative activities in concert with the fast changing scene of electric power development and utilization in ASEAN. The Meeting of the Forum of Heads of ASEAN Power Utilities/Authorities, also agreed that high priority be give to the pursuance of bilateral or trilateral arrangements which contribute to the establishment of the ASEAN Power Grid and welcomed the study on ASEAN (Indochina) Grid to be funded by Australia with the cooperation of ASEAN utilities. Other areas of priority for ASEAN in the electricity subsector are research, development and engineering, training and development, and corporatisation/privatization, of power utilities.

The 20th Meeting of the ASEAN Council on Petroleum (ASCOPE) was held from- 28 to 29 October 1994 in Manila to review the progress of the implementation of projects and to approve its 1995 Work Programme. ASCOPE circulated a bi- monthly newsletter and it plans to publish the Fifth ASCOPE Directory of 1995/1996 in April 1995. ASCOPE will continue reporting the annual progress of the implementation of its Work Program-e through SOMEC. The ASEAN-EC Management Trailing and Research Centre (AEEMTRC) continued to play an active role in the planning and implementation of the ASEAN Programme of Action and Workplan on Energy Cooperation. During the period under review AEEMTRC successfully concluded the implementation of five short-term training events, namely: (1) Clean-Coal Technology Workshop for the ASEAN Region; (2) The 13th Seminar-Workshop: Energy Efficiency in the ASEAN Region; (3) Energy Management Training Course in ASEAN: Efficient Use of Electricity; (4) Energy Management Training Course in ASEAN: Efficient Electricity Use and Conservation and (5) Gas Industry Summit '95. AEEMTRC also continued with the implementation of on-going research programmes such as the ASEAN Energy Database, Valorization of Energy Technology (VALENTE), Integrated Urban Energy Planning (IUEP)and ASEAN 2020. New research projects launched during this period were in Energy in Buildings, Energy Efficiency in ASEAN and a Masterplan on Natural Gas Development and Utilisation in ASEAN. A major undertaking of the AEEMTRC is the development of a Masterplan on Natural Gas Development and Utilization in ASEAN which was launched on 9 December 1994 and is expected to be completed by December 1995. The objectives of this activity are as follows :

  1. to assess the present and projected status of the ASEAN gas industry;

  2. to identify, possible gas development scenarios in relation to other energy supply options;

  3. to define a set of institutional arrangements, taking into consideration worldwide experience; and

  4. to outline a masterplan for natural gas, which could support the ASEAN countries in developing regional projects.

During the period under review, the Phase II Proposal of the AEEMTRC was prepared and is .expected to be completed by May 1995. Funding requirements for Phase II (May 1995-April 1998) of the AEEMTRC was approved by the ASEAN Standing Committee and the European Commission. The ASEAN contribution in cash drawn from the ASEAN Fund would be US$312,000 while the European contribution would amount to US$3,120,000. The host country, Indonesia, and other ASEAN Member Countries have also agreed to provide in-kind contribution equivalent to US$428,000. The Protocol Amending the Establishment of the AEEMTRC, which reflects this new cost-sharing scheme ad the extension of the project to April 1998 has been approved by ASEAN and the EU.

As requested by the June 1994 Special SOMEC, the ASEAN Secretariat in collaboration with the AEEMTRC prepared a draft of the Protocol Amending the Agreement on ASEAN Energy Cooperation of 1986. This draft was discussed and finalized during the Combined Meeting of the Ad-Hoc Working Group on the Amendment of the ASEAN Energy Cooperation and the Task Force for the Long-Term Finacing Scheme of the AEEMTRC, which was organized by the ASEAN Secretariat from 6 to 7 February 1995 in Jakarta.. The Meeting agreed on a Protocol for Amending the Agreement o. ASEAN Energy Cooperation which reflects the new Medium-Term (1995-1999) Programme of Action on Energy Cooperation and the evolving issues in the world energy scene. This Protocol is expected to be signed by the ASEAN Foreign Ministers in July. The Combined Meeting also identified four modalities for AEEMTRC to be self-sustaining beyond it, Phase II and requested AEEMTRC to prepare a long-term vision and Work Plan beyond Phase II for, consideration of the Second Meeting of the Task Force.

The Second Meeting of the Task Force for the Long-Term Financing Scheme of AEEMTRC as held from 17 to 18 May 1995 at the ASEAN Secretariat. A proposal for the long-term financing scheme for AEEMTRC was prepared for the consideration of SOMEC and AEEMTRC meetings which are expected to be held in August 1995.