This publication is a historical summary of progress made in energy cooperation in the Greater Mekong Subregion (GMS) since the beginning of the economic cooperation program in 1992. It highlights a two-pronged and phased approach to develop the GMS power market to realize the full benefits of synchronous operations---the policy and institutional framework to promote power trade and the physical interconnection to facilitate cross-border power transfers. This publication aims to help stakeholders understand GMS members' efforts in power cooperation and to draw attention to crucial issues on regional power trade.

This report explains the complex challenges facing the six countries in the renewables-rich Greater Mekong Subregion (GMS) as they work to implement a comprehensive framework to enable regional electricity power trading. Against the backdrop of energy market volatility, it details how ADB is helping high-voltage electricity network operators reach a deal on interconnections which could unlock extensive economic benefits for each GMS country. Acknowledging a transparent power-sharing regime is still some way off, it provides a road map to help countries overcome infrastructural challenges and political concerns to build a fully synchronized GMS transmission network.

The economic corridor approach was adopted by the Greater Mekong Subregion (GMS) countries in 1998 to help accelerate subregional development. The development of economic corridors links production, trade, and infrastructure within a specific geographic area. The review of these corridors was conducted to take into account the opening up of Myanmar and ensure that there is a close match between corridor routes and trade flows; GMS capitals and major urban centers are connected to each other; and the corridors are linked with maritime gateways. The review came up with recommendations for possible extension and/or realignment of the corridors, and adoption of a classification system for corridor development. The GMS Ministers endorsed the recommendations of the study at the 21st GMS Ministerial Conference in Thailand in 2016.

In Southeast Asia, China’s growing economic and political strength has been accompanied by adept diplomacy and active promotion of regional cooperation, institutions and integration. Southeast Asian states and China engage in ‘strategic regionalism’: they seek regional membership for regime legitimation and collective bargaining; and regional integration to enhance economic development, regarded as essential for ensuring national and regime security. Sino-Southeast Asian regionalism is exemplified by the development plans for the Mekong River basin, where ambitious projects for building regional infrastructural linkages and trade contribute to mediating the security concerns of the Mekong countries. However, Mekong regionalism also generates new insecurities. Developing the resources of the Mekong has led to serious challenges in terms of governance, distribution and economic externalities. Resource-allocation and exploitation conflicts occur most obviously within the realm of water projects, especially hydropower development programmes. While such disputes are not likely to erupt into armed conflict because of the power asymmetry between China and the lower Mekong states, they exacerbate Southeast Asian concerns about China’s rise and undermine Chinese rhetoric about peaceful development. But the negative security consequences of developing the Mekong are also due to the shared economic imperative, and the Southeast Asian states’ own difficulties with collective action due to existing intramural conflicts.

The Greater Mekong Subregion Cross-Border Transport Facilitation Agreement (GMS CBTA) Instruments and Drafting History is a compendium of agreements, instruments of accessions, and memoranda of understanding forged between the GMS countries and compiles in one publication all the documents that form the CBTA instrument. It reflects previous policy dialogues, including outcomes of negotiations between various government agencies from the GMS countries since the inception of the CBTA. This publication aims to strengthen stakeholders' understanding of the technical aspects of the CBTA as well as to draw attention to the crucial issues on transport and trade facilitation.