East Asia and Pacific Infrastructure Regulatory Forum

Dr. Katharina Gassner, Nima Heschmat, The World Bank MENA Regional Conference on Infrastructure Reform and Regulation Amman, December 7-8 2009

About EAPIRF  Established in 2003  Initial support of the World Bank and PPIAF, later AusAID

 Mission  The mission of the EAPIRF is to enhance regulatory decision making in the EAP region through the exchange of experience and information in infrastructure regulation, and through the promotion of training programs focused on regulatory issues common among the countries.

 Members  50 members from 24 countries in the EAP Region  All infrastructure sectors (electricity, water and sanitation, transport and telecoms)

 Includes autonomous regulatory institutions and ministerial units in charge of infrastructure service delivery

History  Bangkok 2003: first meeting of infrastructure regulators and other stakeholders to discuss infrastructure regulation at regional level  Manila 2004: formal establishment of EAPIRF and agreement on key features of the Forum

 Singapore 2005: presentation and agreement of strategic plan How was the Forum idea implemented?  To facilitate the formal establishment of the Forum, a Guiding Committee was established on volunteer basis after the first meeting.  An interim Secretariat was recruited with support of donors to  develop a strategic plan  propose an organizational structure and decision making process

 conduct a training needs and opportunities assessment  prepare the 2005 meeting in Singapore

Organization of EAPIRF  EAPIRF Constitution  Defines decision making process  Confirmed by vote from all core members (regional regulators)

 Executive Committee  Provides strategic direction and operational decisions for the forum  Decides on issues to be voted upon by core members  Oversees Secretariat functions and financial flows

 Seven member committee appointed through vote by all core members

 Four year terms, with elections staggered in two year intervals

 Secretariat  Tasked to execute operational activities of the Forum  Responsible for organizing annual meetings and training courses

 Responsible for continuous information sharing and website management  Funded by The World Bank, AusAID and PPIAF

Membership Structure  Core Members  Exclusive to East Asia and Pacific Regulators (incl. Australia and NZ)  Eligible to vote in the Annual General meeting

 Affiliate Members  Regulators from other regions, NGOs, Ministries, etc.

Achieving the Forum Objectives 1. Promote the exchange of information and sharing of experience in infrastructure regulation  Annual General Meetings (AGMs)  Knowledge Sharing Workshops

 Knowledge based collaborative website

2. Facilitate the development of training and capacity building opportunities for infrastructure regulators  Delivery of core, advanced and specialized training programs in juncture with AGMs  Assist in twinning arrangements  Partner and promote exchange with other regional regulatory forums, academic institutions and training providers

Key Characteristics  Diverse Membership  Ranging from large East Asian and small Pacific countries with diverse structures and different degree of advancement

 Professional Secretariat  International consulting firm selected via international tender process

 Technical focus  Controlled and targeted membership  High quality agenda preparation  Agreement on knowledge sharing topics and case studies by Secretariat and ExCom

 EAPIRF Training activities  Core training program for newly-recruited regulatory staff  Advanced training for experienced regulators  Specialized training on high-profile topics (e.g. renewable energy)  Guidance on other available training and conferences via website

Annual General Meetings and Training Programs  Opportunity for face-to-face meeting of member representatives  Executive Committee Meeting to decide on key issues  General Meeting to update members and discuss Forum‟s progress in the past year, involving all members in the decision making process

 Knowledge platform to meet, network and share experiences  Core and advanced training programs as capacity building measures

 The structure of the annual events successfully implements the three-tier strategy of  Promoting a sense of ownership in EAPIRF members through decision making at the Annual General Meetings  Engaging high level infrastructure regulators in the knowledge workshops on advanced regulatory themes and topics

 Providing core and advanced regulatory training to both mid-level as well as experienced regulatory staff

Knowledge Sharing and Capacity Building  Thematic Knowledge Sharing Workshops  2009 – Hanoi, Vietnam – Financial and Economic Crisis, Regulating SOEs     

2008 – Cairnes, Australia – Tariff Setting Process and Challenges 2007 – Jakarta, Indonesia – Competition Policy and Regulation 2006 – Phnom Penh, Cambodia – Universal Service Obligations 2005 – Singapore – Regulatory Accountability 2004 – Manila, Philippines – Protecting Consumer Rights

 Core Training Program  One week core course on regulatory principles and economics of infrastructure

regulation targeted at new regulators  Accompanied by case study and role playing sessions

 Advanced Training Program and Specialized Knowledge Sessions  Newly introduced training opportunities for experienced regulators

 Hands on 2-day clinic on tariff setting process as applied case study  Specialized knowledge session, eg on renewables energy

Sharing Success as well as Failures  The exclusive forum fosters remarkable candidness among participants in the discussion of achievements and mistakes. Among the topics discussed openly in the past are:  Shortcomings of a number of concession contracts implemented in

member countries  Failure on delivery of quality of supply / service in the water sector  Poorly negotiated power purchase agreements with IPPs  Judiciary and merit reviews of regulatory decisions challenged in courts

 Regulatory decision making in absence of a clear policy framework

Using the Forum as Knowledge Pool  The active participation and commitment of more and less advanced members leads to genuine knowledge exchange. For example, in 2009,  the Australian regulator has shared experience of revising the cost of capital due to the global financial crisis;  the Vanuatu regulator has illustrated the establishment of procedures for the first-ever tariff review in the country;  the Philippines regulator has shared the challenges faced by the implementation of national renewables targets.

Partnerships  EAPIRF has built valuable partnerships with other regulatory associations and regulatory capacity building organizations  The National Association of Regulatory Utility Commissioners (NARUC)  Public Utility Research Centre (PURC)

 International Energy Regulation Network (IERN)  Australian Centre of Regulatory Economics (ACORE)  South Asia Forum for Infrastructure Regulation (SAFIR)  Member of the Advisory Committee of the World Energy Forum

 Through these partnerships, EAPIRF Members are informed of relevant activities and training programs held by partner organizations and have been invited to participate and share their experience in partner organizations' meetings and forums.

Forum as Platform for Knowledge Exchange  Beyond Face-to-Face meetings  Formal Meetings occur only annually  Constraints on the number of participants  Limitations on the scope of topics discussed

› How is knowledge exchanged beyond annual meetings?  Twinning Arrangements  EAPIRF encourages and aids in the process of establishing twinning arrangements between regulatory agencies

 Interactive Website  Collaborative platform provides individual regulatory staff opportunity to network and connect with peers

www.eapirf.org – An Interactive Platform

www.eapirf.org – Connecting with Regulators

www.eapirf.org – Exploring Common Ground

www.eapirf.org – Collaborating in Groups

www.eapirf.org – Discussing Trends

www.eapirf.org – Membership Outreach

Communicating the Message

Using the Forum to create Awareness

Forum as Platform for Knowledge Exchange  Knowledge strategy serving Forum members  Interaction between staff members beyond Annual Meetings  Opportunity to network with regulators  Option to discuss and exchange knowledge in more detail

 Access to capacity building resources

 Clear communication strategy driving Forum’s development  Membership outreach  Communicating issues to the public

Feedback on EAPIRF Member voices from the 2009 Annual General Meeting  “Sharing knowledge and information is important for regulators who help the government frame the right policy, especially in the current economic situation, through their discussion with policy makers on the lessons they have learnt from this forum.”  EAPIRF Chairman Thomas Abe ICCC Papua New Guinea, to Viet Nam News

 “After having followed the hands-on 2-day workshop on „How to run a Tariff Review‟, I understand much better what a new regulator has to do in terms of establishing processes and soliciting stakeholder consultation to come to a well-balanced final decision.”  Participant from Kiribati

Feedback on EAPIRF I found the 2007 EAPIRF competition policy workshop a great success and indeed the most successful so far. The way the workshop was structured encouraged the participation of members. I found that members were willing to share experiences and tried to suggest solutions to a variety of problems which were raised. I think that after a number of years EAPRF members have developed a degree of respect for the institution and each other and we are seeing increasingly more open and frank discussion as a result. EAPIRF provides an opportunity for us all to learn from each others' experiences

– Joe Dimasi Australian Competition and Consumer Commission

Some of the Challenges  Sector specificities  Increasing size of event vs. keeping technical focus  Discussion of fee structure vs. ‘public good’ argument  Maintaining independence vs. seeking sponsorship  Language

The Issue of Sustainability  Fees and Menu of member services  „Comprehensive package‟ fee  Membership fee + training fees  Menu of Member privileges

 Multi-tier Sponsorship  Recognition of contributions on website, during meetings, etc.  Emphasis on avoiding conflicts of interest – contributions are on regional basis and managed through Secretariat

Other Regional Forums  AFUR  set up with PPIAF support  permanent Secretariat  broader constituency

 less training focus

 Highlights from ADERASA (Latin America)  sector specificity: water and sanitation  e-learning

 SAFIR  Etc…

Discussion