The ASEAN Australia Economic Cooperation Program was established in 1974 to promote cooperation between Australia and ASEAN in areas of agreed regional development priority. The program has evolved to keep pace with economic progress in Southeast Asia and the maturing nature of the ASEAN-Australia relationship.

Ministerial approval for the development of a future phase of the program (the ASEAN-Australia Development Cooperation Program [AADCP]) was obtained and subsequent discussions between ASEAN and AusAID resulted in the "AADCP-Regional Partnerships Scheme" (AADCP - RPS).

The overarching goal of the Regional Partnerships Scheme is to promote sustainable economic and social development within the ASEAN region in line with the objectives and priorities of Vision 2020, the Hanoi Plan of Action and subsequent summit meetings.

The purpose of the Regional Partnerships Scheme is to: strengthen the capacity of ASEAN to address regional development challenges, in particular, greater/deeper economic integration so as to better participate in the global economy, through supporting project partnerships between appropriately skilled institutions in Australia and ASEAN institutions.

Projects are required to support or contribute to developing:

1. integrated regional policy initiatives
2. harmonised institutional frameworks within ASEAN
3. capacity building across ASEAN to implement the harmonised policies
4. the move towards the realisation of the ASEAN community as outlined in Bali Concord II.

The objectives of the Regional Partnerships Scheme are:

• to promote partnerships between Australian and ASEAN entities to undertake regional development and economic cooperation activities based on the concept of mutual interest and benefit, by supporting cooperative and joint project activities involving public, private and academic institutions as well as Non Government and Non Profit Organisations in Australia and public institutions in ASEAN, as well as ASEAN-affiliated NGOs and institutions,
• to help promote enhanced cooperation and collaboration between ASEAN and Australia in priority areas leading to long-term poverty reduction and sustainable development in the region. It is expected to play an important complementary role in creating an enabling environment for poverty alleviation by advancing the formulation of growth-oriented policies, helping to develop the conditions for sustainable economic growth and enhanced economic integration, and by advocating for and assisting with the introduction of policies and programs to reduce the vulnerability of the poor.

It was agreed that the Regional Partnerships Scheme should:

• Provide grant funding of between Australian Dollars (AUD) $50,000 - $500,000 for regional development activities targeting the prescribed thematic elements of AADCP which are consistent with the development cooperation policies of ASEAN;
• Hold funding rounds approximately three times per year in the first few years of the program and twice per year in the latter two years of the program;
• Be open to applications from ASEAN and Australian public, private, academic or non-government organisations;
• Fund activities of no more than two years in duration; and
• Require applicants to meet at least 20 per cent of the eligible costs associated with the activity.

Shortly after Australia and ASEAN formally signed a Memorandum of Understanding for AADCP on 1st August 2002, the AADCP-RPS commenced with the contractual appointment by AusAID of an Australian Managing Contractor (AMC) - Cardno ACIL Pty Ltd – on 13 August 2002.

Cardno Acil Pty Ltd manages the AADCP-RPS from both Australia and Indonesia. Cardno Acil has a dedicated RPS Coordination Unit (RPSCU), based within the ASEAN Secretariat in Jakarta, which is staffed by ASEAN nationals. This team works closely with the Bureau for External Relations and Coordination of the ASEAN Secretariat, Ministries of Foreign Affairs throughout the ASEAN region, and ASEAN Project Implementing Partners. The Australia-based team works closely with Australian partners involved in implementing RPS activities and AusAID representatives based in Canberra, Australia, and throughout the ASEAN region.