CTI-CFF/USAID SOACAP Activity 2.1 CTI-CFF Public Private Partnership (PPP) Preparation (Technical Program), Jakarta, Indonesia

About This Event

U.S. Agency for International Development’s Regional Development Mission for Asia (USAID-RDMA) through US Department of Interior (DOI) for the period of 2017 – 2019 supports Coral Triangle Initiative on Coral Reefs, Fisheries, and Food Security (CTI-CFF) to develop fisheries related activities that can promote sustainable fisheries practices in the CTI region, in order to combat illegal, unreported and unregulated fishing (IUUF), promote sustainable fisheries, and conserve marine biodiversity. This support has been settled through a signed Memorandum of Understanding (MOU) between the CTI-CFF Regional Secretariat and the US DOI, with a work plan entitled Strengthening Organizational and Administrative Capacity for Improved Fisheries Management (SOACAP-IFM).

The SOACAP-IFM program aims to enrich the implementation of ecosystem approach to fisheries management (EAFM) in the CTI member countries through improving the use of catch documentation and traceability (CDT) systems in fisheries and seafood value-chain as an instrument to improve market of the products, as well as to combat illegal, unreported and unregulated fishing and promote sustainable fisheries for livelihoods and food security in the Asia and Pacific region. The 13th Senior Official’s Meeting in Makati Philippines, 2018 has acknowledged the last version of the proposed SOACAP-IFM activities as mentioned in the SOM-13 decision Number 11.1, Attachment 11.b (point 5b) Acknowledged the last version of the SOACAP-IFM Work Plan, comprising of 2 operational objectives with total of 7 activities for a period of 2017 – 2019…..

The SOACAP-IFM work plan is aligned with other USAID-supported programs in particular the USAID Oceans and Fisheries Partnerships (the USAID Oceans) and the USAID SEAFDEC project. The USAID Oceans is one of the USAID portfolios designed for strengthening regional cooperation to combat IUUF, promote sustainable fisheries, and conserve marine biodiversity in the Asia-Pacific region. Therefore, the CTI-CFF Regional Secretariat work closely with USAID Oceans and the USAID SEAFDEC Project to promote and inspire the development and implementation of CDT system including investment approach through public-private partnership, and how to make use of the CDT data and other environmental data available to enrich the EAFM Plan with a support of scientific group.

This activity 2.1. CTI-CFF Public-Private Partnership (PPP) Preparation: Expert-Consultation Meeting on PPP Design and Arrangement, is designed to exchange views among relevant CT governments and development sectors on any possible PPP proposals and arrangement for sustainable fisheries sectors. It includes development of accountable fisheries information systems such as catch documentation and traceability of seafood products in value-chain, where would be required by international markets. In addition, this activity is a preparatory meeting for the CTI-CFF PPP on sustainable fisheries management amongst related stakeholders/parties. The meeting is intended to discuss appropriate and suitable PPP arrangement including necessary steps and actions to ensure suitable and best PPP arrangement for appropriate infrastructure and technology investment from point of catch through post-harvest sectors to support sustainable fisheries in CTI member countries.

The PPP has been recognized and become an economic model of development to address the challenges in financial constraints of the Government, improvement of quality of services, cost-risk allocation effectiveness, and faster implementation. The importance of PPP in fisheries sectors has also been recognized in a Resolution 2/12 on Sustainable Coral Reefs Management of the UNEA-2 held in Nairobi, 23-27 May 2016. The resolution encourages governments to further develop partnerships with industry, including fisheries, aquaculture and tourism, and civil society, and the establishment of public-private partnerships. The CTI-CFF Regional Plan of Action has recognized the importance to develop financial investment for fishers including PPP to promote sustainable fisheries (Regional Action 2 of respective Target 2 & 3 of Goal 2: EAFM).

However, the implementation of the PPP including design and arrangement is challenge, particularly in fisheries sectors as this sector is considered as a high-risk investment return for private sectors or for financial institutions. Besides, the implementation requires the government (or development sectors) to have ample capacity and competency to adopt the PPP concept and develop business partnerships including mobility of business concerns and potentials within sustainable fisheries sectors. Furthermore, WorldFish Center has indicated this challenge of difficulties in deciding the best and suitable PPP arrangement, as many options exist for such partnership arrangements where differences among the partnerships can be delicate (Weirowski & Hall, 2008). It is then important that relevant governments and development sectors build better understanding on the concepts of PPPs being proposed for fisheries sectors.

PPP in the CTI-CFF member country is not a new theme. All member countries have PPP modalities i.e. national policy, framework, and implementing institution, which support the development of PPP arrangement and projects for public services and infrastructures. A specific PPP institution in each member countries has been identified as listed in the section 8 of this TOR. With those modalities, PPP design and arrangement in fisheries sectors can be explored and developed, to some extent, by learning from relevant country’s experiences.

In the framework of the USAID Oceans, PPP becomes one of the work streams that is expected to bring participation of private sectors for development of application of CDT systems and EAFM. Aligning with the USAID Oceans work stream on PPP, CTI-CFF Regional Secretariat in support of the USAID/RDMA will play its role in developing PPP concept and practices in sustainable fisheries for the CT member countries. It is expected to, not only support for CDT systems application, and EAFM practices, but also provide a general PPP framework to member countries to develop economic performances in their fisheries sectors.

However, the challenges for the PPP developments in the context of CTI-CFF, on the other side, are recognized. Not only does it lie on the capacity of the member countries, particularly the governments to develop such as business partnerships with their existing national framework, but, it needs also mobility of business concerns to understand the business potential embedded in the sustainable fisheries sectors of each member countries. Therefore, any efforts to develop PPP arrangement in the fisheries sectors of the CTI-CFF framework should consider building-up better understanding and business capacity of the major player i.e. relevant governmental agencies to design and implement the PPP concept.