The Government of Brunei Darussalam, the Republic of Indonesia, Malaysia, the Republic of the Philippines. the Republic of Singapore and the Kingdom of Thailand, being members of the Association of Southeast Asian Nations (hereinafter referred to as ASEAN). 

DESIRING to further promote and intensify the implementation of the aims and purposes of ASEAN as embodied in the Declaration of the ASEAN Concord: 

REALIZING the desirability of effectively promoting the development of the construction industry, in the ASEAN region as a step in this direction: and 

RECOGNIZING that the implementation of a preferential shortlisting scheme for ASEAN Contractor would enhance the advancement of the counstructing industry and its role in the economic development of the ASEAN region. 



An ASEAN contractor means a contracting entity: established under the laws of member countries of ASEAN with at least 5 1 % of its equity opened b- citizens of the country where the entity is registered and licensed in such country of registration to undertake construction projects. 


This Agreement shall be applicable to civil works and industrial construction projects funded by international institutions such as World Bank and Asian Development Bank and which require as a condition international competitive bidding. 


In cases when there are a large number of contractors prequalified and a further shortlist is drawn up, at least one preqlialified ASEAN contractor shall be entered in the shortlist and invited to submit his bid. 


Domestic Preference Schemes, if any, in any member country shall be fully respected and this Agreement shall not apply to projects so covered. 


This Agreement shall enter into force on the thirtieth (30th) day after the deposit of the sixth Instrument of Ratification. 

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments have signed this Agreement. 

DONE at Jakarta, in the English Language this 20th day of October, 1986. 

For the Government of Negara Brunei Darussalam:
Pengiran Bahrin Pengiran Haji Abas
Minister of Law for Foreign Minister ofNegara Brunei Darussalam 

For the Government of the Republic of Indonesia:
Prof. Dr. Mochtar Kusumaatmaja
Foreign Minister of the Republic of Indonesia 

For the Government of Malaysia:
Datuk Rais Yatim
Foreign Minister of Malaysia 

For the Government of the Republic of the Philippines:
Mr. Jose D. Ingles
for Foreign Minister of the Republic of the Philippines 

For the Government of the Republic of Singapore:
Mr. S. Dhanabalan
Foreign Minister of the Republic of Singapore 

For the Government of the Kingdom of Thailand:
ACM Siddhi Savetsila
Foreign Minister of the Kingdom of Thailand