GMS Programme plays a vital role in promoting closer cooperation among the six countries

Prime Minister General Soe Win attended the Dialogue Session, Forum on Business Participation in the GMS, and GMS Leaders and Business Community Programme-2nd GMS Summit at Golden Grand Ballroom of Green Lake Hotel in Kunming , the People's Republic of China on 4 July and discussed issue on infrastructure improvement.

Present were Premier of State Council of the PRC Mr Wen Jiabao, Prime Minister of Cambodia Samdech Hun Sen, Prime Minister of Lao people's Democratic Republic Mr Bounnhang Vorachith, Prime Minister of the Union of Myanmar General Soe Win, Prime Minister of Thailand Mr Thaksin Shinawatra, Prime Minister of Vietnam Mr Phan Van Khai, President of Asia Development Bank Mr Haruhiko Kuroda, the ministers from the PRC, Cambodia, LPDR, the Union of Myanmar, Thailand and the Socialist Republic of Vietnam, the deputy ministers, senior officials, the ministers from China in economic cooperation with countries in GMS, Governor of Guangxi Autonomous Region Mr Lu Bin, Secretary of Yunnan Committee of Communist Party of China Mr Bai Enpei, Governor of Yunnan Province Mr Xu Rongkai, Deputy Governor Mr Lu Pin and representatives of private businesses in the nations in Greater Mekong Subregion.

Premier of China Mr Wen Jiabao delivered an address. Delegates from business community from China , Cambodia and Myanmar reported on participation of business communities in private sector. Heads of States from China , Cambodia , LPDR, Thailand and SRV took part in the discussions. In his discussions, Prime Minister General Soe Win said: Thank you for giving me the floor. I would like to comment on the issue of infrastructure improvement. But since this is the first time that I am taking the floor at this Forum, allow me to begin by expressing my deep appreciation to our host for the warm welcome extended to us. The excellent environment in which we are meeting augurs well the success of this important gathering. I would also like to take this opportunity to express my deep appreciation to the Distinguished Representative of the Chamber of Commerce of Cambodia for his extensive report on the panel discussions on infrastructure improvement.

The GMS Programme plays a vital role in promoting closer cooperation among the six countries that share the Mekong River — Cambodia , China , Laos , Myanmar , Thailand and Vietnam .

The programme which initially focused on development of basic infrastructure has been broadened and deepened to include social sectors such as human resource development, tourism, the environment, investment and trade and trans-border issues.

But the fact remains that infrastructure development is key to economic growth. It is therefore appropriate that investment in transport infrastructure has been complemented by improvement of the regulatory framework for facilitating cross-border movement. A framework agreement— the GMS Cross-Border Transport Agreement— which will simplify customs procedures, facilitate cross-border movement, minimize the need for transhipment and develop human resources has been signed by the GMS six countries. I welcome the finalization of the Annexes and Protocols for the Framework Agreement.

Significant progress has also been made in establishing a telecommunications network for the subregion. The MoU to establish working mechanisms for the cooperation in the construction of the GMS Information Superhighway Network (ISN) was signed last December. An MoU on Planning and Construction of the GMS Information Superhighway Network will be signed tomorrow. It will lead to a cost-effective fiber optic cable system linking the GMS countries.

Other major infrastructure development programmes to be undertaken include development of the electric power grid, promotion of regional energy cooperation arrangements, Mekong River tourism development and water transport development.

GMS countries can gain major benefits by cooperating in the development and use of the subregion's natural resources. Subregional cooperation in energy development and supply will reduce the cost of electricity and assure a more stable supply. The Intergovernmental Agreement on Regional Power Trade was signed during the First GMS Summit in 2002. The MoU on the Guidelines for the Implementation of the Regional Power Trade Operating Agreement — Stage 1, to be signed at this Summit , will contribute to the establishment of regional power trading agreements among our countries.

Here, I would like to stress the need for expanding energy cooperation not only in the Greater Mekong Subregion but in the region as a whole to promote energy efficiency and to find alternative sources of energy in the wake of the unprecedented rise in oil prices in the world market.

Reinforcing infrastructure for development has been identified as one of the key areas under the GMS Strategic Framework. But Infrastructure projects demand huge investments. This poses a major challenge for the GMS Programme. Increased private sector participation is crucial in meeting the challenge.

The on-going infrastructure development in the GMS is the result of our joint efforts. However, the success we have achieved would not have been possible without the advisory, financial and technical support of the Asian Development Bank. We are grateful to the ADB for its support.

To ensure that the GMS will be fully connected, I would like to call for greater inputs, greater efficiency and greater efforts from all the GMS countries. At the same time, I would like to urge member countries to pay heed to environment conservation.

The development of infrastructure and human resources and the protection of environment provide opportunities for private sector investments and trade in our subregion. While governments can provide the incentives for business and investments to flourish in the subregion, it is the private sector that must give substance to development by creating wealth out of our region's rich natural and human resources. We must join hands and work together to achieve our goals.

I am happy to note that there is significant development in the GMS countries and that there is progress in the establishment of policy frameworks and institutional mechanism to remove the nonphysical barriers as well.

Among the major issues and challenges identified by the panel, the principal challenge is the need for huge amount of investment. I would like to reiterate that increase in private sector investment is crucial for infrastructure development. In order to attract more participation from the private sector, we must establish an enabling environment. In this connection, financing from multilateral development banks will be needed. I would like to support the panels recommendation to have Public-Private Partnership (PPP) that is fair for both the public and private sectors.

With this in view, Mr. Chairman, I would like to conclude by saying that while governments can create the environment for business and investments to flourish in the subregion, private sector is the principal player that can give substance to development by creating wealth out of our region's rich natural and human resources. We must join hands and work together to achieve our goals.

Next, Premier Mr Wen Jiabao delivered a concluding address. After the meeting, Prime Minister General Soe Win together with Heads of State, the ministers, the deputy ministers and senior officials visited GMS Telecom Development Exhibition at Golden Grand Ballroom of Green Lake Hotel and Myanmar Booth.