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December 23, 1985

  ARTICLE I

THE PROJECT

Section 1. 01

The project shall be known as the ASEAN-Canada Energy Seminars project (hereinafter called "the Project") and is to be conducted in Canada. The Objective of the Project is to introduce Canadian experience in energy management to ASEAN. Contents of the Project are given in Annex "A", attached hereto.

  ARTICLE II

RESPONSIBLE AUTHORITIES

Section 2.01

Canada designates the Canadian International Development Agency (hereinafter called "CIDA") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

Section 2.02

ASEAN designates the Committee on Science and Technology (hereinafter called "COST") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

  ARTICLE III

CONTRIBUTION OF CANADA

Section 3.01

  The contribution of Canada shall consist of planning and developing seminar papers and visitation programs, organizing and conducting seminars and visitation programs, provision of airfares and per diem/hotel meal expenses for ASEAN representatives attending the seminars and project evaluation. The total value of Canada's contribution shall not exceed nine hundred eleven thousand Canadian dollars ($911.000).

  ARTICLE IV

CONTRIBUTION OF ASEAN

Section 4.01

  The contribution of ASEAN should consist of the provision of up to ten appropriate personnel from ASEAN Member States to attend the seminar and visitation program in Canada.

  ARTICLE V

COMMUNICATIONS

Section 5.01

5.01.1 Any communications or documents given, made or sent by either ASEAN or Canada pursuant to this Memorandum of Understanding shall be in writing and shall be deemed to have been duly given, made or sent to the party to which it is addressed at the time of its delivery by hand, mail, telegram, cable or radiogram at its respective address: namely:

                                                                                                                                             

For ASEAN:
Mail Address:	PROF. SANGA SABHASRI
	Chairman, ASEAN Committee on Science and Technology (COST)
	Ministry of Science, Technology and Energy
	Rama VI Road
	Bangkok, Thailand
Cable Address:	Telex No. 20838 MINSTEN TH
For Canada :
Mail Address:	Asia Regional Program,
	The Canadian International Development Agency (CIDA)
	200 Promenade du Portage,
	Hull, Quebec, K1A OG4
Cable Address:	CIDAHULL, Attn BSG
And/or
Mail Address:	Canadian Embassy,
	Bangkok, THAILAND
Cable Address:	DOMCAN BKK

5.01.2 Any one of the parties hereto may, by written notice to the other party hereto, change the address to which any notice or request intended for the party so giving such notice shall be addresses.

  5.01.3. All communications and documents submitted to Canada shall be in either English or French language, and those submitted to ASEAN shall be in the English language.

   

  ARTICLE VI

INTERPRETATION

Section 6.01

Differences which may arise in the application of the provisions of this Memorandum of Understanding shall be settled by means of negotiations between Canada and ASEAN or by any other manner mutually agreed upon by Canada and ASEAN.

  ARTICLE VII

INDEMNITY

Section 7.01

  ASEAN shall indemnify and save harmless the Government of Canada, Canadian firms and Canadian personnel from civil liability, while performing their duties under the program of technical cooperation referred to in the present Memorandum, except where it is established by the Courts that the damages caused to third parties by such Canadian firms and Canadian personnel resulted from gross negligence or wilful misconduct.

  ARTICLE VIII

NATURE OF THIS DOCUMENT

Section 8.01

This document does not constitute an international treaty; it is intended only to set out the responsibilities of the two Governments in relation to the Project.

  ARTICLE IX

GENERAL PROVISIONS

Section 9.01

This Memorandum of Understanding shall come into force and effect on the date of signature and shall expire on March 31, 1987. This Memorandum of Understanding and Annex "A" attached hereto, which forms part of this Memorandum, may be amended from time to time, as deemed necessary, by mutual agreement between the cooperating parties, by an exchange of letters between ASEAN and Canada.

IN WITNESS WHEREOF, the undersigned, have signed this Memorandum of Understanding in duplicate in Manila on the 23rd day of December 1985.

 

ANNEX 'A'

 

Energy Sector Seminars

For Presentation to

Association of Southeast Asian Nations

Committee on Science and Technology

1.0 Background

At the Third ASEAN/Canada Dialogue held in Manila in May 1982, the ASEAN members submitted requests for technical assistance in several areas related to the energy sector. In response, Canada agreed to provide technical assistance in the form of the presentation of seminars and study tours in the following areas:

(a) The management and distribution of energy resources.

(b) The use of coal and natural gas for power generation.

During: the 1983 dialogue, it was agreed to include a third topic: (c) energy conservation.

ASEAN members have recognized the enormous potential benefits available from regional cooperation within the energy sector and have already begun investigation into a number of cooperative endeavours toward realizing the common objective of departing from an overall dependence on oil in their national energy budgets. They have also recognized that a regional approach to resource planning, development and management would afford the advantages of economics of scale.

Energy sector resource management, however, represents a new field to most developing countries including many ASEAN members. Assistance from developed nations, such as Canada, to increase the ASEAN members capabilities in energy management could make a major contribution toward the more optimal use of their energy resources. In addition, such assistance should be designed to impart available experience on energy planning strategies and new technologies and other developments in the energy sector.

The purpose of this Working Paper is to begin the development of the seminars and study tours. The following point form outline provides an initial starting list of subject topics to be considered in the preparation of the papers and discussions, which will comprise the seminars. Tentative itineraries, by subject heading only, for study tours are also included for discussion purposes.

On the bases of these subject outlines, as finalized, work will begin to prepare the required seminar papers, workshop material and study tours.

3.0 Seminars

3.1 General

Seminars will be presented in three subject areas:

  a) Management, distribution and development of energy resources

b) Energy Conservation

c) Use of Coal and Natural Gas in Electric Power Generation

The seminars will be composed of the presentation of prepared papers, discussions, question and answer sessions and workshops using illustrative examples. Canadian consultants contracted by C1DA, will organize and manage the seminar sessions and will prepare and present the papers and conduct the sessions and workshops. ASEAN participants from energy administrative agencies, energy producing authorities and academic institutions will attend the various seminars and workshops as suited to their expertise and requirements. The seminars will be held over a two-week period with a general overview session to begin and a wrap-up session to end. The seminars will be followed, by study tours designed to illustrate, to the ASEAN participants, Canadian experiences in important aspects of the seminar topics.

3.2 Seminar A - Management, distribution and development of energy resources.

This seminar will consist of sessions, discussions and workshops an the following topics:

.1 General Overview Session

This session would be designed to provide an overview of the energy sector within the context of the ASEAN region and the planning of its development.

Topics to be covered would include:

- energy forms and end uses;

- sources of energy, both conventional and non-conventional;

- energy policy formulation;

- energy distribution in primary versus secondary forms;

- energy conservation;

- energy pricing consideration;

- fiscal policy considerations;

- governmental regulatory agencies, functions, objectives, methods, etc.:

- and others.

.2 Energy Demand

This session would present papers and discussions on the following topics:

- methods and procedures to forecast energy requirements in the major subsectors of the ASEAN economies such as industrial, commercial, transportation, agriculture, domestic, etc.;

- impact of energy pricing demand;

- impact of conservation programmes;

- impact of energy type and form and substitutions;

- regional versus national demand forecasts;

- and others.

.3 Energy Supply

This session would present papers and discussions regarding:

- the various types and forms of energy resources available, including traditional, alternatives, non-conventional, etc.;

- generalized comparative cost data;

- probable cost trends for each;

- substitution of types and forms;

- latest relevant developments in each field;

- distribution of various energy types in their primary of secondary forms;

- benefits of inter-connected supply versus isolated areas;

- and others.

.4 Energy Planning and Energy Policy Development

This session would discuss the combination of the demand and supply estimates to illustrate the results of alternative plans for the development of the energy sector and make possible the formulation of an energy sector policy or strategy to guide the development of the energy sector within the context of the overall economy.

Among the topics covered would be:

- methods and procedures to prepared energy balances together with illustrations regarding their use;

- principles for the establishment of a national or regional energy policy such as fiscal policies, economic rent, transfer of wealth, national budgets, use of energy to stimulate or retard sectoral growth, etc.;

- energy conservation as a low cost component of such planning will be stressed;

- alternative sources of supply to rural or isolated areas;

- role of regulatory agencies in energy planning, policy development and implementation;

- regulatory institutions, functions, etc., both regarding primary energy production as well as energy consumption;

- and others.

.5 Workshop on Energy Planning and Policy Development

This session would provide an example situation to allow the participants to formulate an energy policy for a theoretical country and to discuss and experience all aspects of its development. Use could be made of interactive computer models to enhance their understanding of the choices, alternatives and methods of choice between alternatives.

.6 Canadian Experience

This session will elaborate upon the Canadian energy sector and Canadian experience in management, development, distribution, conservation, etc. It will also document Canadian technology and capabilities in the energy sector

Topics to be covered will include:

- respective responsibilities of provincial and federal governments in the energy sector;

- respective functions of various types of Canadian institutions in the energy sector;

- Canadian pricing policies, licensing and other regulatory arrangements;

- the Canadian National Energy Plan;

- measures taken by various levels of government and industry to minimize adverse environmental and social effects of energy resource developments;

- measures adopted in Canada to encourage the development of alternative sources and conservation of energy; and

- technologies available from the Canadian energy sector for the development of energy resources including petroleum, coal, conventional and non-conventional.

3.3 Seminar B - Energy Conservation

This seminar will consist of sessions, discussions and workshops in the following areas:

.10 Development and Role of Energy Conservation Programs

This session would build upon the elements of energy conservation raised in Seminar A. It would include papers and discussions in the following subject areas:

- the components of a national energy conservation program;

- how a conservation program could be developed and implemented in each major sector of the economy;

- supporting arguments, including cost and benefit analyses, for the implementation of conservation programs;

- review of barriers to achieving the targets and objectives of energy conservation;

- how to monitor and control the implementation of national and sectoral energy conservation programs;

- and others.

.20 Conservation Programmes in Energy Subsectors

These sessions, one for each major sub-sector of the energy sector, would present a detailed analysis of conservation programmes in each sector, with emphasis placed on supply substitution alternative fuels, pricing policies, demand management, etc., where appropriate. Examples of conservation programmes in various developing countries will be illustrated with case studies to aid assimilation and understanding. Both technical and financial analysis will be presented. If time is available, workshops, as appropriate, may be included.

Sessions of varying duration depending; upon the importance and complexity of the subsector will be presented in at least the following sectors:

.21 Industrial

.22 Transportation

.23 Utilities

.24 Domestic, including traditional fuels

.25 Commerce and Agriculture

.3 Canadian Experience

This session again would elaborate upon the Canadian experience, expertise and capabilities regarding energy conservation not only under conditions pertaining to the Canadian energy sector but also in the context of developing countries.

3.4 Seminar C - Use of Coal and Natural Gas in Electric Power Generation

This seminar would present papers and discussions on the following topics:

.1 Electric System Planning

This session would be designed to present an overview of the methods by which electric power systems are planned and developed. Methods and procedures to determine the 'least-cost' sequence of development given various alternatives and demand curves will be illustrated.

Topics to be discussed would include:

- electric power in the context of the overall energy sector;

- engineering and economics of power system planning;

- generation planning to achieve "least-cost" sequencing

- considerations governing the choice of thermal station fuels;

- and others.

.2 Use of Natural Gas for Electric Power Generation

This seminar would present a summary of the use of natural gas for electric power generation. It would present papers on the following topics:

- economic assessment of alternative uses of natural gas;

- differences in technical, operational and economic aspects between piped gas and LNG;

- characteristics of gas fired thermal stations operations;

- financial arrangements covering the purchase of natural gas for electric power generations;

- state-of-the-art technology in gas-fired electric power generation;

- and others.

.3 Use of Coal for Electric Power Generation

This seminar- would present a summary of the use of coal, in comparison to natural gas, for electric power generation. It would present papers on the following topics:

- economic assessment of the use of coal for electric power generation;

- technical and economic consideration of coal, and its delivery, into the future;

- financial arrangements covering the purchase of coal; and

- state of the art technology in the use of coal for electric generation. This would cover use of poor quality coal, environmental considerations, coal handling facilities, etc.

.4 Canadian Experience

This session again would elaborate and illustrate Canadian experience, expertise and capabilities regarding the use of natural gas and coal as fuel for electric power generation. Papers will be presented on topics of interest by utilities with experience in each of these areas. The capability of Canadian firms to define and resolve questions in and provide equipment to these areas will be illustrated.

3.5 Wrap-up Session and Evaluation

A final session will be held to summarize and finalize the seminar presentation. Provision will be made for the participants to provide a detailed evaluation of the seminar's usefulness.

4.0 Study Tours

4.1 General

Study tours will be arranged to provide the ASEAN participants to study first hand Canadian applications and experience in the subjects discussed in the seminars. About two weeks will be allowed for these tours. It is difficult to judge at this early stage the detail of such tours but it is likely that at least two itineraries will be established. This may allow sufficient flexibility for participants to attend the portions of each study tour in which they have a direct interest. Upon further definition of the tours and the interests of the participants, it may be necessary to increase the possible itineraries. The following is provided as an initial indication of what might be useful:

4.2 Study Tour A

This tour would be primarily for those participants whose major interests lie in the management, planning, distribution and conservation of energy.

Visits would be arranged with agencies such as the following:

- Department of Energy, Mines and Resources and the National Energy Board to discuss central government regulation, management, distribution and conservation of energy resources;

- Appropriate Provincial Government agencies to discuss similar considerations at a provincial level;

- National Research Council of Canada to discuss alternative energy resources and conservation;

- An appropriate Canadian University which specializes in training in energy resource development and management;

- Appropriate agencies and companies involved in the exploration and development of petroleum energy resources;

- Appropriate representatives of the Canadian Energy Sector manufacturers, suppliers, etc., to explore Canadian energy sector equipment and experience;

- and others.

4. 3 Study Tour B

This tour would be primarily for those participants whose major Interests lie in the use of coal and natural gas for the generation of electric energy.

Visits would be arranged with agencies such as:

- The Department of Energy, Mines and Resources and the National Energy Board to discuss central government considerations in the use of coal and natural gas for energy production;

- Appropriate Provincial Government Departments to discuss similar consideration at a provincial level;

- an electrical generating utility using coal for the production of electric energy;

- an agency or company engaged in coal production, handling and distribution;

- an agency or company engaged in the production, treatment and distribution of natural gas;

- appropriate representatives of manufacturers, suppliers, consultants, etc., supplying equipment for facilities required for the generation of electric energy using coal or natural gas;

- and others.