FIDIC ASPAC News No. 2 (May 2000)

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ASPAC Asia-Pacific Region News
Issue No.2: July 2001

No. 3: July 2001
No. 2: May 2000
No. 1: April 1999

FIDIC ASPAC Meeting - Kuala Lumpur - 10 April 2000
Contents
MINUTESISSUES PAPER
MEMORANDUM OF AGREEMENT BETWEEN TCDPAP AND ASPACMINUTES
Attendance:
Kog Yue Choong: Association of Consulting Engineers Singapore (ACES)
Kok King Min: Association of Consulting Engineers Singapore (ACES)
Mahendra Raj: Consulting Engineering Association of India (CEAI)She Jianming: China National Association of EngineeringConsultants (CNAEC)
Philip Chalk: Association of Consulting Engineers New Zealand(ACENZ)Dr Marshal Gysi: FIDIC (Observer)
Wang Yongyin: China National Association of Engineering
Consultants (CNAEC)
Badaylal Nyachhyar: SCAEF, Nepal
S N H Mashadi Association of Consulting Engineers Pakistan (ACEP)
Ricardo S Basa: CECOPI-EL
Rolando G Roque: CECOPHIL
Mujibur Rahman Khan: Bangladesh Association of Consulting Engineers (BACE)T L Chen: Association of Consulting Engineers Malaysia (ACEM)
Goro Fujie: Association of Japanese Consulting Engineers (AJCE)
Lailun Nahar Ekram: BACE (Observer)
Richard Kell: Association of Consulting Engineers Australia (ACEA) (Chairman)
It was noted that 12 ASPAC MAs were represented.
1. Welcome
Chairman welcomed the MA delegates and noted the attendance of FIDIC MD
Marshall Gysi and Mrs Leilun Elwarn. There were no apologies.
2. Notice and Agenda
The notice and agenda had been issued by the Secretariat by email on 21/3/2000.
Copy attached.
Note 1: The MAs noted the success of distribution of information by email on21/3/2000. Copy attached.
Note 2: Country reports were not included in the agenda since most delegates had
made presentations at the TCDPAP Conference.

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3. Minutes of meeting September 1999 in The Hague.
3.1 The minutes as previously distributed were accepted as a correct record.
4. Secretariat(section missing)
The meeting requested the Chairman to advise the Chairman of TCDPAP of these
conclusions in writing. Note: The Chairman passed a note recording CEAI the above
ASPAC conclusions to TCDPAP prior to the Council meeting on 12/4100. A response isawaited. Action: RAK/CEAI
5. Chairman and Secretariat
Having regard to the decision by the meeting on the Secretariate (refer 4. above),
the Chairman advised that he was prepared to continue to serve as Chairman, withthe secretariat provided by ACEA, at least until the Honolulu meeting.
This offer was accepted unanimously.
It was suggested that FIDIC should be requested to provide some modest financial
support to ASPAC. R Kell will raise at next EC meeting. Action: RAK
6. FIDIC/ESCAP Committee on Project Finance
Chairman advised that minutes had been received from ASPAC corresponding
member, Mr Lorertz, and he will circulate for information
7. ASPAC Issues Paper 8112199
This was circulated. Comments to the Secretariat are requested by the end of May.
Axtion: all MAs
8. FIDIC Conference - Honolulu - 10-13 September 2000
Messrs Goro Fuji and She Jianming advised the meeting of the many innovative andexciting features, including concessions for young and first time attendees, and theround table formats. Cost benefits are also available to large groups and multiple
registrationsfrom one office.
Registration forms will shortly be available. Costs lower than usual. All are urged toattend.
Mrs Ekram suggested consideration be given to encouraging women members andretired members. Chairman to raise at EC Action: RAK
Goro Fuji circulated a questionnaire on QBS and asked MAs to All respond by end ofApril. Action: all.
9. World Water Conference
Ms Ekram attended this recent major conference in The Hague as ASPAC Ms
representative and reported to the meeting on the 2025 Vision and the Elcram
structural changes. Mrs Elcram undertook to circulate a paper to ASPAC MAs.

ASPAC: ISSUES PAPER

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INTRODUCTION
At the ASPAC meeting in Capetown in 1996, it was unanimously resolved that ASPAC
had a purpose and should continue and that an ASPAC position paper should beproduced for discussion. After some delay, an Issues Paper was produced by new
Chairman, Dick Kell, with inputs from various Associations, and circulated in August
1998.
At the meeting of ASPAC in Den Haag in September 1999, the Issues Paper wasreviewed and it was agreed the Chairman and ASPAC Executive should prepare an
updated version for circulation. Note the Executive comprises Mrs Lailun Nahar
Ekrarn of BACE, Goro Fujie of AXE, and She Jianming of CNAEC, in addition toChairman, Dick Kell.
KEY ISSUES FOR ASPAC MEMBERS: AUGUST 1998
1. Task Force 21
The Task Force 21 Report directs the way forward for FIDIC, hence FIDIC MAS,
into the 21st century. It is a document of great importance.
ASPAC should review the Task Force 21 Reportfor its application to ASPAC
activities and distill those items considered relevant to MAs in the region into
an ASPAC Action Plan.
Issue 1: TF21 Report and recommendations to be reviewed and distilled into
an ASPAC Action Plan.
Response 1
TF21 Report has been implemented by FIDIC and accepted by ASPAC. Query:
Are there any issues arising?
ASPAC Action Plan. ASPAC has established a Secretariate which manages
internet communication and circulates a regular newsletter. Response is good.
We have resolved to meet annually. Do we need to do more than this? Issues
can be identified and dealt with as they arise.
2. The Economies of Asia
The economies of Eastern Asian countries have retreated drasticallysince the Edinburgh meeting in September 1997. This has been
extensively reported in the media. The depth and extent of theproblems were not predicted, but they are serious indeed.
Consulting firms in many Asian countries arefacing severe difficulties,
ifnot a battlefor survival, although conditions do vary markedly between
countries.
Issue 2: What can ASPACIFIDIC do to support ASPAC Member Associations in thecritical economic situation?
Response 2: In truth, there was/is little that ASPAC/FIDIC can do. Push for increased
local inputs to Bank funded projects.
3. APEC
The Asia Pacific Economic Congress (APEC) continues to gain
momentum amongst Pacific Rim countries, which include most of theASPAC countries. APEC funds an Engineering Secretariat. There could beadvantages for ASPAC to align with APEC including use of thesecretariat.
Issue 3: Consider some form of alignment with APEC Engineers.

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Response 3: ASPAC Secretariate has produced and issued an APEC Paper.
4. Privatisation of Infrastructure
Privatisation of infrastructure is now a fact and will increasingly
dominate project development in most ifnot all countries in the region.
Most consulting engineers are not prepared nor equipped to deal withthis change. ShouldASPAC develop dialogue with groupslassociations
representing major contractorsldeveloperslfinanciers?
If the answer is "yes", then ASPAC would need FIDIC (preferably) orWB, ADB orAPEC assistance.
Issue 4: Privatisation - Where does ASPAC stand and what action should or can
ASPAC take?
Response 4: ASPAC made representations to FIDIC. Taking these into account, alongwith other developments, FIDIC has formed a Working Group with EFIC on thissubject. ASPAC has a representative with correspondent status (J Lorenz, ACENZ).
ASPAC will receive reports from FIDIC and also from Jon Lorenz.
Resolved: No further action required.
5. Cross-border Issues
The GATT/WTO rules on free trade, the privatisation of infrastructure
and the globalisation of engineering are allfactors emphasising the needto:
harmonise qualifications;align specifications and standards;
benchmark capabilities.
Issue 5: Should ASPACIFIDIC be developing policies and lobbying on
crossborderissues?
Response 5: ACEM has taken the initiative and organised a Workshop in Kuala
Lumpur in April 2000 on the subject of Globalisation. ASPAC is participating.
Resolved: Await outcome of Workshop.
6. Selection ProceduresThis issue has two major themes:
Qualification Based Selection (QBS), andNational firms to be given real opportunities, e.g. international
consultants with local firms.
Issue 6.1: ASPACIFIDIC to continue to promulgate existing FIDIC policies onselection; member firms to adhere.
Issue 6.2: ASPAC to consider selection procedures putforward by SCAEF Nepal - referattached.
Response 6
6.1 FIDIC/ASPAC continues to promote QBS to ADB and World Bank.
FIDIC is assisting individual MAs.

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6.2 SCAEF Selection Procedures yet to be considered.
7. PI Insurance and Risk Management
ASPAC should investigate thepolicies andpractices on PIInsurance
amongst countries in the ASPAC region. If this establishes that there isa move to PI cover, perhaps driven by international clients, then
ASPACIFIDICIADB should provide guidance via workshops tailored toneed.
Issue 7.1: Consider need for PI Insurance training in ASPAC Region.
Issue 7.2: Develop a Risk Management Manual for non-Western countries.
Response 7: Only general comments are available on PI and Risk Management inASPAC Region.
Proposal: ASPAC to undertake a survey of MAs to identify need.
8. ASPAC Representing the Region
Organisations with somewhat common membership to ASPAC havebeen established in the region. This would seem to be counter to theinterests of FIDIC Member Associations. An example is TCDPAP.
Issue 8: ASPACIFIDIC should lobby governments for recognition as the organisation
representing engineering consultancy in the region.
Dialogue with TCDPAP continues.
TCDPAP are working jointly with ACEM on the KL Workshop.
Resolve: To review the opportunities at a joint TCDPAP/ASPAC meeting in KL on theday following the ACEM Workshop.
9. FIDIC Policies
Corruption
Issue 9.1: ASPAC to promote the FIDIC Policy on Corruption and the Code of Ethicsamongst MAs.
Environment
Issue 912: ASPAC to review the benefits of the FIDIC EMS and subsequently agree
on promotion of the EMS with FIDIC.
Response 9
9.1 ASPAC continues to recognise/promote FIDIC policies.
9.2 Agreed EMS is a FIDIC issue: No specific ASPAC action.
10. ADB, WB: MAs to advise on any perceived problems with ADB, WB.
Response 10: ASPAC requests comment from N1As on ADB, WB on an annual basis,
timing linked with FIDIC visits.
DICK KELL.

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DRAFT
MEMORANDUM OF AGREEMENT BETWEEN TCDPAP AND ASPAC
This Agreement is between Technical Consultancy Development Programme for Asiaand the Pacific (TCDPAP)
Addressand the Asian Pacific Grouping of FIDIC (ASPAC)
Address, ACEA
referred to hereinafter as the PARTIES
WHEREAS
The PARTIES acknowledge that they have largely common membership and similargoals, and have therefore agreed to co-operate and co-ordinate respective activities.
Furthermore, TCDPAP has offered to provide secretariat accommodation services toASPAC, and ASPAC parent, FIDIC, has approved this proposal in principle subject toagreement by ASPAC Members and certain qualifications,
THE PARTIES AGREE AS FOLLOWS

1. The two organisations, TCDPAP and ASPAC, are to be recognised as separate
2.
3.

4.

5.
6.

7.

entities.The ASPAC Secretariat, currently provided by ACEA ( ) will be locatedwithin the office of TCDPAP, currently in New Delhi at (Address)
The TCDPAP manager will be responsible for the day to day affairs of ASPAC.
(Note: This is envisaged as taking no more than 4 hours per week). In thisrole the manager will take direction from the Executive Committee of ASPAC.
The Indian Member Association of FIDIC and local ASPAC member, Consulting
Engineers Association of India (CEA1) shall have an overview role in respect ofthe ASPAC Secretariat. It is envisaged that this will involve a management
meeting with the Secretariat each second month at which activities andexpenditures will be reviewed. CEAI will report to the ASPAC ExecutiveCommittee. The Secretariat shall keep a separate set of books for ASPAC.
TCDPAP has agreed that there will be no charge for management nor rent andoffice equipment, nor for day to day administration costs; but external costs
including international communications will be reimbursed by ASPAC. (Listrequired?)
For its part, ASPAC will encourage its members to join TCDPAP.
As far as is practical, the Parties shall co-ordinate their respective activities
such that overlap is minimised. To this end, representatives of the Executive
Committees of TCDPAP and ASPAC shall meet annually to co-ordinate
activities. Note: The objectives of ASPAC are to provide a global link for
Member Associations via FIDIC; to liaise with ADB and World Bank; tofacilitate networking; and to identify regional issues and assist members indealing with them.
The period of this Agreement shall be 12 months; and may be extended for afurther period of 12 months by mutual agreement.

IN CONFIRMATION, THIS AGREEMENT IS SIGNED HEREAFTER.

ASPAC: the Asia-Pacific Grouping of FIDIC Consulting Engineers
Secretariat (Elizabeth Garnock): ACEA, Australia - Tel +61 (2) 62 32 57 25 - Fax +61 (2) 62 32 56 68 egarnock@ieaust.org.au

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