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12. As all of you may already know, in addition to the project on replacing navigational aids damage by tsunami in the Straits of Malacca, the other project proposals are:
a. Removal of wrecks in the Traffic Separation Scheme (TSS) in the Straits of Malacca and Singapore. 12 wrecks had already been identified, practically all of them in or near Malaysian and Singapore waters. It would cost some US$ 19,000,000 to do the job in about 5 years. It has not included the wreck of CC Hyundai 105 in or near the Traffic Separation Scheme (TSS) in the Indonesian waters in the Straits of Singapore. Hyundai 105 carrying automobiles through the Singapore waters collided with a Malaysian Vessel, in 2004, and for some mysterious reasons and circumstances sank itself in Indonesian waters near Batam.
b. Cooperation and capacity building on Hazardous and Noxious Substance (HNS) preparedness and response in the Straits of Malacca and Singapore. 6 proposed locations for HNS response centers had been identified practically all of them in Malaysia and Singapore. None of the response centers had been proposed in Indonesian waters or coastlines. The cost of the project is expected to be in the region of US$ 3,500,000 in 2 years.
c. Demonstration Project of Class B automatic identification system (AIS) transponder on small ships. The project will cost about US$ 400,000 for about 6 months.
d. Setting up a tide, current and wind measurement system for the straits of Malacca and Singapore to enhance navigation safety and marine environment protection. it is estimated that this project will run for 4 years, with a review of the system at the end of the fourth year. 12 locations for the measurement system had been suggested. It is estimated that initial capital for the installation of the equipment will cost about US$ 774,400, cost for first year upon commission of shore station would be about US$ 66,000, while cost for subsequent annual maintenance up to fourth year of operation would be US$ 561,000. The whole cost for four years is estimated to be US$ 1,401,400.
e. Replacement and maintenance of aids to navigation in the Malacca and Singapore Straits. At this moment, there are some 29 selected aids to navigation in the Straits of Malacca and Singapore, most of them in Indonesian waters. Some of them are still ok but there are some which are bad and even missing. The whole project may take up to 10 years and the cost of replacement and maintenance in 10 years is estimated to be US$ 18,225,000.
f. Replacement of aids to navigation damaged by the tsunami incident in the Straits of Malacca and Singapore. Currently there are 7 aids to navigation in the Straits of Malacca that have been damaged or destroyed by tsunami, particularly on the Straits of Malacca side of Aceh. The cost for replacement of the aids to navigation damaged by the tsunami is estimated to be at US$ 276,000 and will take about three years to implement. I understand that China had already declared its intention to implement this project in the last meeting in Kuala Lumpur (2006), and some technical preparation for the implementation of the project is now going on.
13. All in all, the six projects would last for several years, some up to 10 years and would cost some US$ 42,802,400 for the whole duration of the six projects. It would appear unfair to me if all these burdens would be shoulder only by the three coastal countries or even with the support of one country such as Japan, while the benefits of promoting safety of navigation and the protection of the environment are enjoyed by the rest of the users, either states, companies, or corporations.
14. There are various models on how to contribute to the expenses of promoting safety, security and the protection of marine environment in the Straits. It could be through bilateral arrangement between the coastal countries concerned and the donors, either states, international organizations, or private companies or corporations. In such a case, the donors could select what they could assist in view of the needs, and in such a manner the management of the contribution or assistances to support the coastal countries concerned would be a matter of bilateral issues between them. I understand that Indonesia prefers this arrangement.
15. It could also be by the three coastal countries and the possible donors concerned, perhaps by creating a Special Fund for the promotion of safety of navigation and environmental protection in the Straits. In such a case the Fund would be controlled by the three coastal countries in cooperation with the donor concerned, very similar to the management of the current Revolving Fund for anti-pollution purposes.
16. It could also be through the establishment of Special Fund for the promotion of safety of navigation and environmental protection in the Straits, which could be contributed directly by each of the users, either states or otherwise, on voluntary basis, taking note of the urgency to donate the contribution or could also be managed by cooperation between the three coastal countries and the users represented by, perhaps, IMO secretariat. Unlike other Funds that have been established, such as the Revolving Fund, ASEAN Fund, Continental Shelf Commission Fund, the South China Sea Fund, the Special Trust Fund and Endowment Fund of the International Seabed Authority, the amount of the fund for safety of navigation and maritime security could be a lot bigger since the needs would be much more extensive.
17. In any case, certain basic rules for the establishment of the Fund, which should be acceptable in principle, would have to be drafted and worked out by the three coastal countries taking into account the opinions of the User.
18. It could also be possible that the contribution for safety of navigation and environmental protection by the users of the Straits of Malacca and Singapore be related to and joined with Revolving Fund that was already established since 1981. In such a case, the MOU between Indonesia-Malaysia-Singapore with the Malacca Straits Council of Japan on February 11, 1981, may need to be reviewed and expanded, including its Annex, because the Revolving Fund was intended only for mitigation of oil pollution from ships of the marine environment of the Straits. I understand, however, that Indonesia prefers that the fund for the promotion of safety of navigation is separated from the current Revolving Fund for the protection of the environment.
19. I would suggest that these modalities for future cooperation between the coastal countries and the users could be worked out by the three coastal countries, either by TTEG or through Senior Officials of the three coastal countries, taking into account the views and concerns of the users, either the states or private corporations. I sincerely hope that the users will contribute generously to the Fund, when it is established, and to the six projects proposal that have been worked out by the three coastal countries for promotion of safety of navigation, for their own sake as well as for the protection of the coastal countries. I believe, that in the end, it would be more practical, politically and legally more acceptable than the users attempting to manage the straits themselves and to send in their marines, and in the long run would be cheaper for the users as well as for the coastal countries.
20. Finally, I would encourage all the participants in this informal meeting to contribute to the success of the next formal meeting in Singapore this year on the Straits of Malacca and Singapore and to identify and concretize their contributions and supports to the project proposals that have been submitted by the three coastal countries to the last meeting on the Straits of Malacca and Singapore in Kuala Lumpur last year (2006).
Kuala Lumpur, 14 March 2007
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