Key Issues Raised
8th BIMP-EAGA Senior Officials' Meeting
Bandar Seri Begawan, Brunei Darussalam
24-25 February 1999

(derived from the Agreed Minutes)

EABC Recommendations to SOM

A recommendation for the governments of BIMP-EAGA to persuade their national airlines to continue expanding air links throughout the growth area

In improving sea linkages, a follow-up on the survey on intra-EAGA trade flows of major bulk products, to serve as a starting base for assessing the viability of direct EAGA sea links

The continued - and unreduced - allocation of national government budgets to EAGA regions, particularly for infrastructure projects.

In order to facilitate increased trade, a model for such a process should be studied and developed. A starting point for this evaluation would be the procedures observed in cross-border trade between Zamboanga and Sandakan. The formation of a task force to look into this matter was recommended.


Issues Raised by the Working Groups

Air Links - Due to the decline in passenger traffic in the region, the Air Linkages Working Group agreed to consider certain incentives such as reduction of landing charges and the granting of Fifth Freedom Traffic Rights (FFTR) to EAGA airlines. They likewise proposed that the travel/exit taxes to EAGA regions continue to be waived. And as a measure to attract foreign tourists and investment, the year 2001 was designated as "Visit EAGA Year."

SOM recommended that the "Visit EAGA Year" be incorporated in the "Visit ASEAN 2001," and suggested that the Working Group on Air and Tourism submit some ideas to the ASEAN Tourism Forum. SOM likewise agreed to look into the implementing of FFTR on a bilateral basis. (Brunei and Indonesia have ok'd FFTR to EAGA carriers, but a third country must be included for this to be fully implementable.

Sea Links - Even as there was an increase in the number of vessels plying the Zamboanga-Sandakan and the Davao-Gen. Santos-Bitung routes, SOM instructed the Working Group to identify further constraints in expanding direct sea links. This report is scheduled for submission to the next SOM, and if necessary, MM.

Tourism Development - The key to successful tourism lies in strategic marketing, SOM emphasized, and member countries are urged to work closely together in order to implement joint tour schemes marketing programs. And to give this sector a boost, Brunei reaffirmed its decision to host the 2nd Tourism Strategic Planning Workshop.

Construction / Construction Materials - A German company, DE-Consult, came forward with a proposal for a Mindanao railway system as part of the Pan-EAGA Multi-Modal Transport Network System (PEMMTNS) during the 7th WGM in Ujung Pandang. SOM endorsement as given, which means a go-ahead for DE-Consult to undertake a study at their own cost.

It was reported that the Pan-Borneo Highway, component of the PEMMTNS, is being utilized at almost top efficiency, except for some glitches along border crossings. The Philippine and Indonesian components, however, remain uncompleted. SOM instructed the Working Group to retap the ADB and the JICA for potential funding required to complete the project.

Fisheries - The private sector has been initially active, and has inked a total of 18 joint ventures and memoranda. To date, however, only a small handfull of this has taken off for reasons known only to the contracting parties. In line with private sector as main driving force behind economic growth, SOM directed the Working Group to examine this factuality and report its findings during the next SOM for proper action.

Review of the Working Groups

SOM agreed on the merging of the Working Groups on Forestry and Environment Protection and Management. The Working Groups on Air Links and Sea Links; and People Mobility and HRD were also proposed integrated, but pending a review from the Philippines on the impact it might have on sectors. In merging these working groups, SOM agreed that a task force be set up at the national level, and will submit recommendations to the next MM.


The 9th SOM and 7th MM will be held in Labuan, Malaysia, on November 1999. top


back to the EAGA

Andrew Dy, BIMP-East Asean Business Council