1 APEC SEMINAR ON THE EARTHQUAKE DISASTER MANAGEMENT OF ENERGY SUPPLY SYSTEMS A PROPOSED CO-OPERATION MECHANISM by Tan Pham September 2003 Chief Executive - AC Consulting Group Ltd - New Zealand

2 GOAL To strengthen the capacity of Member Economies in the reduction of earthquake risk, preparedness for earthquake events and recovery from earthquake damage to energy supply systems. Note: This goal will be a subset of the APEC Energy Working Group’s Objective 1, namely “Strengthening the security and reliability of affordable energy to all within our APEC community”.

3 KEY DRIVERS For the co-operation mechanism to work, it should have the following:  Endorsement from APEC Ministers.  Work within the framework of the APEC Energy Working Group.  Provide benefits to participants.  Regular exchange of information and update.  Ongoing monitoring and evaluation.  Appropriate level of funding.  Involve private sector and major energy suppliers in APEC.

4 KEY ACTIVITIES (1)  Obtain endorsement from APEC Ministers  Obtain agreement from EWG for the structure and funding of the co-operation mechanism.  Obtain agreement and contributions from co-operation mechanism participants.  Collect useful information for participants and distribute through a web site such as: ¤ earthquake design and construction standards. ¤ emergency response plans. ¤ list of consultants and other experts. ¤ list of participants. ¤ list of suppliers of equipment on earthquake monitoring, recovery etc.

5 KEY ACTIVITIES (2)  Set up task groups for the coming years covering: ¤ earthquake monitoring and early warning system ¤ design and construction practices ¤ response and recovery ¤ training ¤ case studies  Use web site as a central coordinator for information sharing, co-ordination of requests for assistance during major earthquakes

6 PROPOSED STRUCTURE – CO-OPERATIVE MECHANISM Programme Manager Rotating annually by Member Economies on a voluntary basis Programme Administrator (i.e. website host). Website to be part of EWG website homepage and linked to other relevant web sites. Appointed, say, for a 3 year term. Funding by APEC and/or contributions from co- operation mechanism participants.

7 POSSIBLE REGULATIONS AND INCENTIVES  All energy suppliers must have risk management and emergency response plans  Energy suppliers are encouraged to have “mutual aid agreement” with other domestic or international (preferably within APEC) energy suppliers  Those who have “mutual aid agreement” may get lower licensing fee or insurance top-up from the government or such financial incentives

8 MUTUAL AID AGREEMENT – TYPICAL FEATURES  Generally bilateral between energy suppliers.  Could build into existing agreement already in place.  Should define: ¤ the earthquakes (emergency events). ¤ types of supports (labour, materials, equipment). ¤ communication methods (signing authorities). ¤ terms and conditions (cost, insurance, equipment on loan, consumables, liabilities etc). ¤ duration of agreement.

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