RISE REGIONAL INTEGRATION FOR SUSTAINABLE ECONOMIES Terms of Reference for APEC Member Economy Requests  for RISE Regional Growth Center Demonstration Project Teams   RISE: EXTENDING THE MARKET PLACE BEYOND URBAN BOUNDARIES INTEGRATED INFRASTRUCTURE ROADMAPS  FOR DEVELOPING ECONOMIES by the PACIFIC ECONOMIC COOPERATION COUNCIL (PECC) and ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

RISE will select the initial Regional Growth Center Demonstration Projects (RGC Project) in October 1999.  APEC Member Economies are invited to present infrastructure projects and plans  for feasibility assessments by project expert teams. 

The mission of RISE is a rural integration initiative to extend the marketplace beyond urban boundaries and to create the enabling environment to bring about actual improvement in public and private infrastructure investment, particularly involving the agro/food system.  RISE Expert Teams will assess existing early stage RGC projects in the rural/urban corridors to design and advise APEC developing economies on their feasibility as integrated initiatives and to identify financing structures for infrastructure development in these regions. Rural-urban Infrastructure networks are critical components in building the APEC Food System.

Member Economies sending preliminary expressions of interest are receiving these terms of reference for their RGC Projects.  Approval of an RGC Project will result in the formation of an RGC Expert Feasibility Team of private and public sector officials and consultative experts to develop a comprehensive assessment of the feasibility of an integrated infrastructure plan, its capacity to accelerate economic value to the region's population and business community, and its bankability, including financing recommendations.   The objective of a RISE feasibility assessment is to bring RGC integrated infrastructure projects and plans to the stage of investment/financing stages. 
 

RGC Project Presentations

Those APEC Member Economies wishing to present a proposal for a RGC Project are asked to prepare a thirty (30) minute introductory review.  Due to the very short time frame between issuing these terms of reference and the October 1999 meeting, these submissions only need to be a brief general overview.  We ask you to include the following topics pertinent to the proposed RGC project: a description of the project geographic area, the status of the general economy of the region, the region's infrastructure deficit, the specific RGC infrastructure (i.e., power, water, wastewater, transportation modalities, agribusiness/ agrofood production, telecommunications or a combination), the regional population to be serviced by the RGC Project, national and local supporting and inhibiting factors, investment incentives, economic opportunities, and the existing economic resources of the agricultural and non-farm sectors.  A more detailed submission can be made to the RISE Executive Committee by the end of September.

The RISE Executive Committee will review the projects submitted and select two initial RGC Projects for the feasibility services described.  Following RGC Project selection, RISE and the Member Economy will enter into a Memorandum of Understanding detailing the services and time schedule that RISE will follow.  RISE would like to provide services for all qualified projects, and therefore, expects that all other submissions will receive RISE RGC Project services as funding permits.  RISE welcomes additional RGC Project submissions on an ongoing basis.  A meeting will take place in Manila, The Philippines at the time of the PECC General Meeting on October 20, 1999.  It is expected that the initial RGC Projects will be selected and announced at that time.

RISE Terms of Reference Criteria

RISE will select those RGC Projects that meet these basic criteria and that give the best opportunities to demonstrate how integrated infrastructure development can accelerate the growth of the RGC's economy, particularly as a center for the region's agro-food system.  The RISE Executive Committee will use the following basic criteria for selecting the initial projects:

1. Member Economy Commitment

The Member Economy should be committed to implementing the RGC Project with both local and national support, based on RGC development efforts to date, business involvement, community commitment, funding, and appropriate public policy supporting private investment; 

2. Project Viability

The RGC must be considered ready for a feasibility assessment designed to attract the required financial and investment commitment. The RGC proposed would integrate the local economy more efficiently into the national and international agro-food system and enhance other diversified off farm employment opportunities in and around the project area.

3. Infrastructure Integration

RGC Projects selected should include descriptions of planned multi-sectoral infrastructural components and a discussion of the infrastructure plan; 

4. Market Prospects

A description of the region's market prospects and the projected impact of the RGC Project on the region's economy, particularly on the agro/food system;

5. Business Commitment

Local and national businesses and investors should be committed to participate with the Member Economy government representatives in building the feasibility assessment with the RISE RGC Project team of experts; and 

6. Development Project Consideration

A description of any supporting studies by national or regional planning authorities and a description of any complementary projects or proposed development plans eligible for Asian Development Bank, InterAmerican Development Bank, or World Bank financing.

The RISE Executive Committee will consider proposals based on the information provided by the member economy.  A general outline of relevant subject areas and a list of questions are provided below to give guidance on the more detailed information that the RISE Committee would consider useful in considering projects for selection. 
 

1. Integrated Economic Development Zone
2. Development Potential and Major Project Characteristics
3. Facilities and Infrastructure
4. Vision and Development Strategy
5. Work Completed in the Economic Zone
6. Development Plan
7. Available Opportunities and Infrastructure Required
8. Supporting and Inhibiting Factors Nationally and Locally
9. Special Investment Incentives
 

Are the national and local governments and citizens committed to support and implement the RGC Project?  What type of local and national government support exists for the RGC Project?

• Does a regional planning or other authority exist to oversee the management the development and implementation of the RGC Project?

• Have the local and national governments contributed toward the development of the RGC Project?

• What is the national policy toward private infrastructure investment?

• What national and local economic incentives are being offered to investors?

• What is the stage of development of the RGC project area?

• What other infrastructure projects are currently ongoing in the RGC Project area that are complementary to or may be included in the RCG Project plan?

• What is the operational structure (BOT, BOO, BOOT, etc.) interested parties want to use to manage the RGC Project?

• Has the RGC Project been submitted to any national or international public or private financial institution for financing?

• Have any public or private debt obligations been undertaken to support the RGC Project? 

• Can the local capital market offer some local financing?

• Does a domestic business group interested in the RGC Project have the technical expertise to operate the RGC Project and partner with foreign interests? 

• Have any domestic or international companies committed to establishing businesses if the RGC Project is completed?

• What aspect of the member economy's agro/food system does the RGC Project support and facilitate?

• Who is being served by the RGC Project, including populations, businesses, manufacturers and processors, agricultural producers, etc.?

• What guarantees of concessions, off-take of production, tax exemptions, government permits, currency convertibility, repatriation and transferability of funds and profits, debt or revenue have national and local governments promise the infrastructure operator(s)?

• Is there a local or national regulatory body that will regulate the RGC Project?

• Where public user rates or fees are assessed and collected by the infrastructure operator, are rates allowable to recover investment costs plus a rate of return?

• Has an environmental impact study been done or have environmental concerns been raised about the RGC Project?

• Do significant local or national groups oppose the RGC Project?

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