Ministers set up fund for ASEAN

BANGKOK (JP): ASEAN foreign ministers signed an agreement Saturday on the establishment of a Fund for ASEAN that will pool member countries' contributions for collaborative projects.

The agreement provides for a new structure for the ASEAN fund, which was established in 1969, and the guidelines for the fund's utilization and management.

Under the restructured ASEAN Fund, the contributions will be managed by the ASEAN secretariat and each member country will no longer manage their contributions.

ASEAN officials said the fund will initially consist of US$6 million in equal contributions of $1 million each from member countries.

The restructured ASEAN Fund allows it to respond to demands for ASEAN projects. Under the new institution, a portion of the available money will be set aside for income generating projects and the remaining for collaborative projects.

At least 50 percent of the income generated by the "seed fund" will accrue to the project fund to meet the increasing demand for project financing.

Projects eligible for the funds are those which promote ASEAN cooperation. (pan)