with a different set of incentives from trade officials, and cross-border infrastructure projects where there is debate over the respective distribution of benefits—population densities vary significantly across ASEAN Member States and this can change the cost-benefit analysis significantly across countries participating in an infrastructure project. Concerns around inter-agency coordination and delegation of authority may also be problematic. For example, in the context of implementing National Single Windows, the challenge of persuading different traderelated government departments to accept transfer of some of their authority to a central agency is highlighted. vi. Information issues. These issues occur when stakeholders do not have sufficient information about the true nature of the benefits and costs of an opportunity or, indeed, the opportunity itself. For example, in the case of liberalisation of investment restrictions, an evidence base appears to be lacking around how a particular country can benefit from the removal of barriers. This is potentially most problematic when it comes to infrastructure-related projects where there is a limited understanding across many ASEAN Member States on the prioritisation of infrastructure projects and the optimal funding structures to launch these projects. Even when the pipeline of infrastructure projects is clear, there may still be gaps in the information needed by private sector investors to make a fair and accurate assessment of a project’s viability. For example, in some ASEAN Member States, Independent Power Producers (IPPs) are often required to identify the land upon which a plant will be built and conduct extensive due diligence, such as site surveys, geological investigation, and environmental impact assessments, in order to arrive at a cost estimate. This may result in investors estimating higher project cost and risk premiums where there is a lack of available, accessible and accurate information; furthermore, this approach will take time affecting the tender and implementation process, and can lead to unnecessary duplication of efforts across bidders. Implementation barriers vii. Capacity. These barriers relate to gaps in the supply chain that prevent access to the critical components (such as appropriate technologies) needed to capture an opportunity and a lack of skilled labour necessary for its implementation. This was highlighted as a major concern in institutionalrelated areas: there exists the challenge of frequent turnover of officials in working groups, and a lack of understanding of the trade agenda and technical best practice. In infrastructure projects, this was not considered to be a major concern at the implementation stage—although many cited opportunities to improve delivery—but more related to capacity gaps in the planning stages, prior to implementation. MASTER PLAN ON ASEAN CONNECTIVITY 2025 25

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