1 APEC SEMINAR ON THE EARTHQUAKE DISASTER MANAGEMENT OF ENERGY SUPPLY SYSTEMS A PROPOSED CO-OPERATION MECHANISM by Tan Pham September 2003 Chief Executive.

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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

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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”.

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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.

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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.

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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

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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.

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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

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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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