The Acmecs fund will be established by the end of this year and Thailand will contribute a sum of seed funding, Prime Minister Prayut Chan-o-cha announced after the end of the 8th Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (Amecs) summit in Bangkok yesterday.
However, the amount has yet to be determined, he said.
Leaders from five member countries, Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT), yesterday endorsed the Bangkok Declaration, a five-year master plan focused on the improvement of infrastructure, rules and regulations, physical and digital connectivity, and the establishment of an Acmecs fund which is a financing mechanism focused on the funding of projects under the master plan.
In the first two years under the plan, projects in the East-West Economic Corridor (it starts from Mawlamyine in Myanmar and ends in Danang, Vietnam) and the Southern Economic Corridor (starts in Bangkok and ends in Ho Chi Minh–Vung Tau in Vietnam) will be the focal point of the funding.
In its initial phase, the fund will be used to facilitate priority projects in the East-West Economic Corridor and the Southern Economic Corridor, because the two corridors stretch through all CLMVT countries. Therefore, investing in the two corridors can be beneficial to all Acmecs members, the prime minister said.
Gen Prayut said the final goal of the effort is to provide missing links that will connect the Pacific Ocean and Indian ocean, adding that to focus on the two corridors is a symbolic statement that Acmecs countries can become the bridge that links the two oceans.
The prime minister, citing a ballpark figure from an Asian Development Bank's feasibility study, said to achieve a seamless, synchronised and sustainable Acmecs envisioned in the Master Plan, five trillion baht is needed to fill the missing links in the sub-region.
Gen Prayut said it is the responsibility of each member country to seek the funding sources. He also invited the Acmecs partners and international financial institutions to provide financial support to the establishment of the fund. However, the contribution in the fund will be on a voluntary basis.
The premier added that that Acmecs is a framework whose strength compliments the strength of the sub-region and Asean.
Meanwhile, deputy director-general of the Department of Economic Affairs Nikorndej Balankura said the fund will not fall under the responsibility of any sole member, but every member will partake in co-ownership of the fund.
He said senior financial officers from each country will discuss the Terms of Reference (TOR) and detailed operation of the Acmecs fund in Thailand in 2018, adding that after the TOR is finalised, the fund will be open to public investment.
He also made it clear that the Acmecs fund is not intended to duplicate the Asean Infrastructure Fund (AIF) of the Asian Development Bank (ADB), but it will instead focus on making CLMVT self-sufficient and less dependent on other entities, adding that it will also lead the five countries into one direction.
It will be co-managed and the clarity pertaining to the fund will be seen in the third quarter of this year, Mr Nikorndej said.
The 9th Acmecs Summit will be hosted in Cambodia.
Meanwhile, an Acmecs CEO Summit was organised on Friday to gather input from the private sector. Sanan Angubolkul, vice-chairman of the Thai Chamber of Commerce and the chairman of the Acmecs Business Council, said proposals were made at the end of the CEO summit.
First, the member countries expect to see "seamless connectivity" among them with the help of a land link network efficient to support the Acmecs nations to become an important trade and investment hub that is connected to other regions as well, he said. To achieve this goal, those missing links -- be they land, rail, marine or air transport -- have to be addressed.
Second, he said, the member countries agreed to focus on concerted efforts to unlock problems hindering trade and investment activities among them.
Moreover, the member countries agreed to jointly work together to further develop their human resources to catch up with the growing industries, including agricultural and tourism industries, with an ultimate goal set to make Acmecs a "smart and sustainable" bloc, he said.
Development of "Acmecs Single Visa" is a mechanism seen as important for improving convenience for tourists interested in visiting the five member countries of Acmecs, he said.