As a follow-up on the implementation of the decisions of the Third ASEAN Summit held in Manila in December 1987, the Committee on industry, Minerals and Energy (COIME), in the year under review, held its thirtieth, and thirty-first and thirty-second meetings in Manila, Bangkok and Baguio City on 9-11 August 1988, 1-3 February 1989 and 6-10 June 1989 respectively. The meetings reviewed the progress of the ASEAN Industrial Joint Ventures (AIJV) programme and the other programmes that are aimed at promoting industrial cooperation in the ASEAN region.
Deliberations in COIME during the year also resulted in the signing, by the ASEAN Economic Ministers (AEM) of a Memorandum of Understanding (MOU) on Brand-to-Brand Complementation on the Automotive Industry under the Basic Agreement on ASEAN Industrial Complementation on the Automotive (BAAIC). With the MOU, ASEAN is formally adopting the brand-to-brand approach to industrial complementation in the ASEAN region by improving the AIJV and AIC Schemes.
In the energy field, the ASEAN - energy Management Training and Research Centre (AEEMTRC) was officially inaugurated on 8 November 1988. The AEEMTRC, which is located in Jakarta, is aimed at strengthening cooperation among ASEAN countries and between ASEAN and the European Community (EC) in the field of energy through proper energy management to secure energy supply for economic and social development. The AEEMTRC will undertake such activities as organizing exchange of research results and energy researchers, supporting energy research activities, and training energy planners and experts of ASEAN countries, among others.
ASEAN Industrial Projects (AlPs)
a) ASEAN Urea Project (Indonesia)
As of May 1989, the Project Company reported that production of urea for the first 6 months of 1989 reached a total of 172,736.72 MT or 30.30% of the design plant capacity.
Sale in terms of volume were reported at 174,820 MT at the average selling price of US$ 130/MT with the following sale breakdown per country:
Country % Share
Indonesia 27.3
Malaysia 21.7
Philippines 15.7
Thailand 24.3
Singapore 1.7
Others 0.7
The Project Company is projecting a sales volume of 600,00 MT at an average selling price of US$ 125/MT bulk FOB in 1989. Average selling price in 1988 was US$ 127.98/MT bulk FOB.
b) ASEAN Urea Project (Malaysia)
The Project Company has reported that production volume of urea and ammonia for the six months period from 1 October 1988 - 30 March 1989 was 277,624 MT and 180,288 MT, respectively.
Sales volume during the period under review was 273,039 MT for urea and 15,945 MT for ammonia with the following breakdown in the country of destination:
Urea
Country % Share
Malaysia 22.3
Philippines 12.5
Thailand 11.6
Australia 7.4
Japan 4.9
U. S. A. 41.3
Ammonia
Country % Share
Malaysia 40.1
Philippines 17.9
Thailand 20.2
India 21.8
c) ASEAN Copper Fabrication Project (Philippines)
The Board of Directors Annual Stockholders Meeting of the Project Company is scheduled to meet on 23 June 1989 to consider among others the following: the analysis of the fabricated Copper market situation, search for better plant design and securing project financing for the project as well as the possible infusion of part of the equity required by non-ASEAN prospective investors.
d) ASEAN Industrial Project for Singapore
Singapore is still in the process of identifying a new AIP.
e) ASEAN Industrial Project for Thailand
On March 1989 the Thai Government endorsed the Potash Mining Project as Thailand's new Al P replacing the ASEAN Rock Salt-Soda Ash Project. The new project proposals was considered by an Expert Group Meeting in Pattaya from May 10-12, T989 and later submitted to 32nd COIME Meeting in Baguio in June 1989. The Meeting agreed that the proposed AIP of Thailand would again be deliberated upon at the COIME Leaders Meeting prior to the 21st AEM Meeting with the view to recommending the project to the said Ministerial Meeting for its decision.
ASEAN Industrial Joint Venture (AIJV)
As of the Thirty-Second COIME Meeting there are 13 approved AIJV projects under the final list and 5 AIJV proposals are under the tentative listing which still needs participation from another member country.
On the-Pre-approved AIJV Product List (APL), CO IM E at its Thirty-Second Meeting agreed that further consolidation of the latest country submissions of products with import value of above US$ 5 M and at the same time not locally manufactured would be undertaken to produce a list of products which has support from at least 2 member countries and an indicative list of products which could qualify as an AIJV if the project is picked up by another country other than the submitting country.
ASEAN Industrial Complementation (AIC)
After the signing of MOU on Brand-to-Brand Complementation in the Automotive Industry and several meetings of ASEAN automotive experts, COIME approved the nomination lists submitted by the Mitsubishi Motor Corporation, consisting of five schemes, as follows:
Scheme No Type Model Participating
Countries
MMC- 1 Passenger Car Lancer Malaysia,
(LA/LM/C) Philippines,
Thailand
MMC-2 Light Commercial L 200 Philippines,
Vehicle (PB) Thailand
MMC-3 Light Commercia L 300 Philippines,
Vehicle (SL-KAI) Malaysia
MMC -4 Truck Fuso Philippines
(FM/FN) Thailand
MMC -5 Passenger Car Gallant Philippines
(FY/H) Thailand
The proposed BBC scheme of Volvo was approved in principle for Volvo car model 740, revised by Malaysia and Thailand, as participating countries to the scheme.
The proposed BBC scheme of Mercedez-Benz was also approved for Mercedez-Benz Passenger Car Models 200 E, 230 E and 260 E Manual and Automatic Gear Box and for Mercedez-Benz Commercial Vehicle Models OH 1625 and OF 1621 which Malaysia and Thailand are participating countries.
ASEAN Minerals Cooperation
The Thirty-Second COIME Meeting in Baguio City, on 6-10 June 1989, approved the criteria for submission and selection of projects under the ASEAN Minerals Cooperation Plan (AMCP). The project will be concentrating on development on downstream industries and operation on the field of manpower as well as technical development and should be complementary and supplementary to the existing programme and also technologies available in member countries.
ASEAN Cooperation in Energy
The Executing Agencies of the member countries for the implementation of the ASEAN Petroleum Security Agreement (APSA) held meetings in Kuala Lumpur and Jakarta on 27-28 June 1988 and 31 August 1988, respectively to formulate standing procedures and action programmes necessary for the implementation of the Agreement as instructed by the ASEAN Economic Ministers (AEM) on Energy Cooperation. The Executing Agencies also held a workshop on the simulation of an emergency situation as defined in the APSA on 29-30 August 1988 in Jakarta. The approved recommendations of the Executing Agencies were considered and approved by the Eighth Meeting of the ASEAN Economic Ministers in Energy Cooperation in June in Kuala Lumpur.
In coal, the first Intra-ASEAN Coal Workshop was held in Jakarta on 27 February to 5 March 1989. The Workshop was followed by the Sixth Meeting of the ASEAN Experts Group on Coal. The Workshop was funded under the Regional Energy Development Programme (REDP) of ESCAP.
The Eighth Meeting of the ASEAN Economic Ministers on Energy Cooperation was convened in Kuala Lumpur on 22-23 June 1989. The Meeting reaffirmed the need to work closely together on energy cooperation as could be seen from the determination to promote the efficient use of coal in the region and to implement the gas pipeline projects for the mutual benefits of member countries.
ASEAN Cooperation Among Power Utilities/ Authorities
Among ASEAN Power Utilities/Authorities, ten cooperation projects are in various stages of progress. The projects are:
i) Micro/Mini-HYdro Development
ii) Computer applications
iii) Interconnection
iv) Research, Development and Engineering
V) Training
vi) Geothermal Power Development
vii) Rural and Urban Electrification
viii)Standardization
ix) Eletric Power Information Centre
For more information, please refer to the project details
