Asian Development Bank and Thailand Fact Sheet by uur36286


									                                                                  Asian Development Bank &
                                                                  FACT SHEET

Table 1. Thailand: Development Indicators                         The global financial crisis, coupled with the need to restore political stability and unity within the
                                                                  country, presents the Kingdom of Thailand (Thailand) with significant development challenges
Population in millions                 66.88 (2009)
                                                                  in the coming years. As a middle-income country with a gross national income per capita of
Annual population                                                 $3,917 in 2008, the predicament facing Thailand is that a deep and prolonged global recession
 growth rate (%)                       0.9 (2007–2009)            could push millions of Thais back into poverty. Furthermore, unless economic growth is
Adult literacy rate (%)                94.1 (2007)                recovered and sustained, Thailand’s progress in attaining the Millennium Development Goals
Percent of population                                             could be reversed.
 in urban areas                        33.3 (2008)
                                                                       The central challenge facing the Royal Thai Government (the government) is to sustain
                                                                  economic growth in order to prevent the negative social and economic impacts associated with
Percent of population living
 on less than $1.25 a day              <2.0 (2004)                massive unemployment that could result from a decline in exports, foreign direct investment,
Percent of population living                                      tourism, and consumer spending. The government’s approach to sustaining economic growth
 below the national poverty                                       is grounded in increasing competitiveness. It emphasizes investment in physical infrastructure,
 line                                  8.5 (2008)
                                                                  strengthening the domestic capital market, and improving the enabling environment for private
Under-5 mortality rate per
 1,000 live births                     14 (2008)                  sector investment. There is also an urgent need to institutionalize social protection mechanisms
Percent of population using                                       to help the unemployed and other vulnerable persons, including the poor, women, children, the
 an improved drinking water                                       elderly, and the disabled.
 source                                98 (2006)                       The prolonged period of political uncertainty in Thailand has served as a reminder that
MDG = Millennium Development Goal.                                good governance must underpin all strategies for sustainable economic growth and social
Sources: ADB. 2010. Basic Statistics 2010. Manila.
         UNESCO. 2010. Institute for Statistics Data Centre.
         World Bank. 2010. World Development Indicators Online.

                                                                   Relationship with ADB
                                                                  Thailand was one of the founding members of the Asian Development Bank (ADB) in 1966 and
                                                                  is the 17th largest shareholder. Cumulative lending since joining ADB amounted to approximately
                                                                  $5.47 billion for 86 loans as of 31 December 2009. The energy sector has received the greatest
                                                                  share of the loans (31%), followed by transport and communications (24%); finance (14%); and
                                                                  water supply, sanitation, and waste management (11%). The balance is for projects in health
                                                                  and education, agriculture and natural resources, and industry and trade. Thailand has continued
                                                                  to engage with ADB mainly in the form of technical assistance (TA) and knowledge sharing. As
                                                                  of 31 December 2009, the cumulative amount of $61.6 million had been provided for 162 TA
                                                                  projects covering a wide range of sectors.
                                                                       Thailand has also strongly supported and participated in the Greater Mekong Subregion
                                                                  Economic Cooperation Program (GMS Program) since its inception in 1992. The establishment
                                                                  of ADB’s Thailand Resident Mission in January 2005 marked the beginning of a new era in the
                                                                  partnership between Thailand and ADB. A new Country Partnership Strategy (CPS) 2007–2011
                                                                  between the government and ADB was approved in 2007. The Country Operations Business Plan
                                                                  (2009–2011), completed in 2009, reaffirmed that the core strategic areas of partnership in the
                                                                  CPS 2007–2011 remain relevant and closely aligned with the government’s policies and action
                                                                  plans to promote long-term, sustainable economic growth and social development.

                                                                                                               As of 31 December 2009
 Impact of Assistance                                                                                    Future Directions
Recognizing Thailand’s emergence as a middle-income country, the                                    ADB’s operations in Thailand will continue in the core strategic areas
CPS, at the national level, supports Thailand’s efforts to enhance                                  of partnership under the CPS, which are essential for enhancing the
its competitiveness in the global economy and to promote higher                                     competitiveness of Thailand’s economy. First, mainstreaming public–
levels of private sector investment. Core areas of partnership include                              private partnership will assist the government maximize opportunities
development of infrastructure, capital markets, and environmental                                   for private sector participation in infrastructure, and thereby the
sustainability. At the regional level, the partnership focuses on                                   government could reduce its financial burden, promote technologically
increasing Thailand’s role, capacity, and effectiveness as a development                            advanced designs and systems, ensure timely construction, and achieve
partner through cofinancing projects in neighboring countries,                                      operational efficiencies. Second, capital market development will be
promoting subregional trade and investment, and further developing                                  continuously promoted, focusing on implementing the New Capital
Asian bond markets.                                                                                 Market Development Master Plan in Thailand. Third, environmental
     Expansion of the partnership between Thailand and ADB builds                                   management and energy efficiency will be improved by innovative
upon the recent successful implementation of major TA projects in                                   approaches and technologies.
2009. ADB supported the government effort to prepare a road map                                          Thailand also strives to increase its own role, capacity, and
for introducing a single and common fare smartcard that can be used                                 effectiveness as a regional and global development partner. ADB brings
on the new mass rapid transit line. ADB also supported the drafting of                              considerable added value to the partnership through its extensive
the new Capital Market Development Master Plan and the preparation                                  experience and expertise in supporting subregional cooperation
toward the demutualization of the Stock Exchange of Thailand. An                                    programs and regional economic integration. In addition, at the regional
e-learning system network with 30 modules of e-learning content for
basic education was developed through ADB support, and 50 schools
throughout the country now have access to the system network.
Moreover, a capacity development project for provincial water supply                                 Table 4. Thailand: Cumulative ADB Lending
enterprises in the Lao People’s Democratic Republic, through knowledge                                        as of 31 December 2009
sharing and technology transfer from Thailand, was undertaken jointly                                                                                         Loans           Amount
with ADB. It enhanced Thailand’s role as a regional development and                                  Sector                                                    (no.)         ($ million)          %a
capacity-building partner in the region.                                                             Agriculture and Natural Resources                           9              409.21             7.48
     New initiatives included the approval of the GMS Highway                                        Education                                                   5              160.72             2.94
Expansion Project, the first ADB investment project since 1999, in which                             Energy                                                     29            1,677.30            30.66
ADB financing is used to widen key sections of the East–West and                                     Finance                                                    11              744.50            13.61
North–South Economic Corridors in Thailand. A TA project, associated                                 Health and Social Protection                                1              500.00             9.14
                                                                                                     Industry and Trade                                          3               90.46             1.65
with the investment project, will assist the government in implementing
                                                                                                     Public Sector Management                                    –                     –              –
a strategic motorway network under public–private partnership (PPP)
                                                                                                     Transport and ICT                                          18            1,291.60            23.61
                                                                                                     Water Supply and Other Municipal
                                                                                                        Infrastructure and Services                              9              595.00            10.88
                                                                                                     Multisector                                                 1                1.38             0.03
 Table 2. Thailand: Economic Indicators, 2005–2009                                                   Total                                                      86             5,470.17          100.00
 Economic Indicator                        2005       2006          2007        2008        2009     – = nil, ICT = information and communication technology.
 Per capita GNI, Atlas method ($)         2,670      2,590         2,660       2,840          …
                                                                                                         Total may not add up because of rounding.

 GDP growth
    (% change per year)                       4.6         5.1         4.9            2.5     -2.3
 CPI (% change per year)                      4.5         4.7         2.2            5.4     -0.9    Table 5. Thailand: Project Success Rates
 Unemployment rate (%)                        1.8         1.5         1.4            1.4      1.5                                                                                          No. of Rated
 Fiscal balance                                                                                                                                                                             Projects/
    (% of GDP)                                0.2         0.1        -1.1         -0.3       -4.8    By Sector                                                       Percentagea            Programs
 Export growth                                                                                       Agriculture and Natural Resources                                   57.1                     7
    (% change per year)                      15.2        17.0        18.2         15.9      -13.9    Education                                                          100.0                     4
 Import growth                                                                                       Energy                                                             100.0                   21
    (% change per year)                      25.8         7.9         9.1         26.5      -24.9    Finance                                                            100.0                     8
 Current account balance                                                                             Health and Social Protection                                         0.0                     1
    (% of GDP)                               -4.3         1.1         6.3            0.5      7.7
                                                                                                     Industry and Trade                                                 100.0                     2
 External debt (% of GNI)                    31.1        34.3        31.6         32.2         …
                                                                                                     Transport and ICT                                                   93.3                   15
 … = data not available, CPI = consumer price index, GDP = gross domestic product,                   Water Supply and Other Municipal
 GNI = gross national income.
                                                                                                        Infrastructure and Services                                     66.7                      6
 Sources: ADB. 2010. Asian Development Outlook 2010. Manila.
          ADB staff estimates.
                                                                                                            Total                                                       89.1                     64
          World Bank. 2010. World Development Indicators Online.                                     By Year of Approval
                                                                                                            1960s                                                      100.0                      1
                                                                                                            1970s                                                       87.5                     24
 Table 3. Thailand: 2009 Loan, TA, and Grant Approvals ($ million)                                          1980s                                                       85.7                     14
                     Loans                                                                                  1990s                                                       92.0                     25
      Sovereign               Nonsovereign               TA            Grants              Total     ICT = information and communication technology.
         77.10                     5.00                 1.32                               83.42     a
                                                                                                         Based on aggregate results of project/program completion reports (PCRs), PCR validation reports
                                                                                                         (PCRVRs), and project/program evaluation reports (PPERs) using PCRVR or PPER ratings in all cases
 Cumulative Lending (as of 31 Dec 2009)                                    : $5,470.17 million           where PCR and PCRVR/PPER ratings are available.
 Cumulative Disbursements (as of 31 Dec 2009)                              : $4,207.65 million       Sources: PCRs, PCRVRs, and PPERs containing a rating circulated as of 31 December 2009.
level of partnership, Thailand and ADB will work together to cofinance                                 partner. To strengthen Thailand’s role as project financier in the
development projects and develop knowledge-sharing programs in                                         subregion, support is needed to build technical and financial capabilities
areas of trade and capital market in neighboring countries, facilitate                                 to identify, finance, and implement complex investment projects.
increased subregional trade and investment, and contribute to the
development of more efficient and liquid bond markets in Asia.
                                                                                                       The Royal Thai Government encourages development partners in
     Operational Challenges
                                                                                                       Thailand to work together, and ADB is collaborating with the Agence
At the national level, core challenges center on the need to strengthen                                Française de Développement, the Japan International Cooperation
the enabling environment for sustainable infrastructure development and                                Agency, the Japan Bank for International Cooperation, and the World
for increasing the size, depth, and liquidity of Thailand’s capital market.                            Bank in areas that are consistent with the CPS. Such collaboration
      The development of infrastructure and the domestic capital market                                focuses on (i) the capacity building and strengthening of institutions to
requires increased private sector participation and investment. In the                                 support Thailand’s national development agenda and its growing role as
infrastructure sector, attracting private sector input requires greater                                a regional development partner; (ii) the GMS infrastructure development;
clarity and transparency on issues related to service standards, cost                                  and (iii) clean energy development.
sharing, tariff setting, revenue allocation, and operations and maintenance                                 ADB cooperates with civil society organizations (CSOs) to
responsibilities. In terms of capital market development, modifying the                                strengthen the effectiveness, quality, and sustainability of the services
taxation system in order to remove distortions, rationalizing the regulatory                           it provides. The relationship with CSOs in Thailand has primarily
environment, improving cross-agency communication, enhancing                                           been focused on knowledge sharing that will contribute to a better
enforcement, and encouraging product innovation are needed.                                            understanding of each other’s work and how to combine efforts and
      Institutional strengthening is a fundamental prerequisite for                                    resources to address development challenges in Thailand.
enhancing Thailand’s role and capacity as a subregional development
                                                                                                        Cofinancing and Procurement
                                                                                                       Cofinancing operations enable ADB’s financing partners—governments
 Table 6. Thailand: Portfolio Performance Quality Indicators                                           or their agencies, multilateral financing institutions, and commercial
          for Sovereign Lending, 2008–2009                                                             organizations—to participate in financing ADB projects. The additional
 Number of Ongoing Loans (as of 31 Dec 2009)                                              1            funds are provided in the form of grants, official loans, or credit
                                                               2008 ($ million)     2009 ($ million)   enhancement products.
 Contract Awards/Commitments                                         –                    –                 As of year-end 2009, cumulative direct value-added cofinancing
 Disbursements                                                       –                    –            for Thailand amounted to $503.7 million for six investment projects, and
 Loans at Risk (%)                                                   –                    –            $8.3 million for 23 TA projects.
 – = nil.
 Note: Totals may not add up because of rounding.

                                                                                                        Table 8. Thailand: Contractors/Suppliers Involved in ADB Loan
 Table 7. Cumulative Nonsovereign Operations Portfolio Distribution
                                                                                                                 Projects, 1 January 2005–31 December 2009
          by Top Countries, 1983–2009a,b
                                                                                                                                                                                   Contract Amount
                                                                                     Total ADB          Contractor/Supplier                                   Sector                  ($ million)
                                                                                                        SPT Civil Group Company Limited           Transport and ICT                     34.31
 Country                                                 No. of Projects             ($ million)
                                                                                                        ITD-Cemindia JV                           Transport and ICT                     22.45
 China, People’s Republic of                                  24                       2,188
                                                                                                        Phelps Dodge Thailand Ltd.                Energy                                11.63
 India                                                        35                       2,129
                                                                                                                                                  Water Supply and Other
 Indonesia                                                    15                         919
                                                                                                        Cowaelmic-Thaiwat JV                         Infrastructure and Services         5.58
 Philippines                                                  26                         768
                                                                                                        Sor Khemrat Industry                      Industry and Trade                     3.41
 Pakistan                                                     24                         721
                                                                                                        Diethelm and Co., Ltd.                    Energy                                 0.67
 Thailand                                                     10                         395
                                                                                                        Gunkul Engineering Public Co.             Energy                                 0.57
 Kazakhstan                                                     4                        375
                                                                                                        Agilent Technologies
 Sri Lanka                                                    12                         280              (Thailand) Ltd.                         Education                              0.43
 Viet Nam                                                       7                        280            Perkin Elmer Ltd.                         Education                              0.39
 Bangladesh                                                     8                        242            Qualitech Instruments Co., Ltd.           Education                              0.30
 Afghanistan                                                    6                        198
                                                                                                        ICT = information and communication technology.
 Lao People’s Democratic Republic                               1                        100
 Azerbaijan                                                     4                         66
 Nepal                                                          4                         59
 Georgia                                                        1                         25            Table 9. Thailand: Top Consultants (Individual Consultants and
 Papua New Guinea                                               1                         25                     Consulting Firms) Involved in ADB Loan Projects,
 Other DMCs                                                   12                          62                     1 January 2005–31 December 2009
 Regional                                                     38                       1,895                                                                  Number of Times      Contract Amount
 DMCs = developing member countries.                                                                    Consultant                                              Contracted            ($ million)
   Includes nonsovereign projects processed by the Private Sector Operations Department and             The Louis Berger Group Inc                                  2                    0.93
   various regional operations departments of ADB. Regional operations departments started              International Labour Organization                           1                    0.33
   nonsovereign operations in 2007.
   Net of facilities cancelled in full before signing.                                                  Individual Consultants                                      2                    0.07
 Source: Private Sector Operations Department.
    A summary of projects with cofinancing from 1 January 2005 to                      $4.38 billion. During the same period, consultants from Thailand were
31 December 2009 is available at                           involved in 45 contracts for ADB loan projects worth $25.25 million.
Sheets/Thailand/cofinancing.asp.                                                           From 1 January 1968 to 31 December 2009, consultants were
    From 1 January 1968 to 31 December 2009, contractors and                           involved in 20,087 contracts for ADB TA projects worth $2.52 billion.
suppliers were involved in 186,281 contracts for ADB loan projects                     During the same period, consultants from Thailand were involved in
worth $96.29 billion. During the same period, contractors and suppliers                327 contracts for ADB TA projects worth $30.52 million.
from Thailand were involved in 4,278 contracts for ADB loan projects                       A summary of procurement contracts awarded to companies and
worth $2.17 billion.                                                                   consultants from Thailand for goods and works, and consulting services
    From 1 January 1968 to 31 December 2009, consultants were                          can be found at
involved in 10,945 contracts for ADB loan projects worth                               procurement.asp.

 Table 10. Thailand: Top Consultants (Individual Consultants and                        Table 11. ADB Assistance to DMCs, 2008–2009a
           Consulting Firms) Involved in ADB Technical Assistance                                                                                 2008              2009        Change
           Projects, 1 January 2005–31 December 2009                                                                                            ($ million)       ($ million)     (%)
                                                   Number of Times   Contract Amount    Lending                                                 10,123.92         13,230.19       30.68
 Consultant                                          Contracted         ($ million)     ADF, Sovereign                                           1,763.56          2,210.31       25.33
 International Institute for Energy Conservation          2                1.34         OCR, Sovereign                                           6,838.78         10,577.01       54.66
 Black and Veatch (Thailand), Ltd.                        1                1.15         OCR, Nonsovereign                                        1,521.58            442.87      (70.89)
 Asian Disaster Preparedness Center                       2                1.04           Public Sector                                            300.00            134.30      (55.23)
 Team Consulting Engineering and Management               1                0.44           Private Sector                                         1,221.58            308.57      (74.74)
 Constellation for AIDS Competence                        1                0.40         Equity Investments                                         123.08            220.00       78.74
 Thailand Development Research Institute                  2                0.18         Grants                                                     808.90          1,113.48       37.65
 Planned Parenthood Association of Thailand               1                0.08         Technical Assistance                                       273.20            267.20       (2.21)
 Francois Xavier Bagnoud Foundation                       1                0.05         ADF = Asian Development Fund, DMCs = developing member countries, OCR = ordinary capital resources.
 PricewaterhouseCoopers (Thailand)                        1                0.04         a
                                                                                            Excludes terminated loans, equity investments, technical assistance, and grants.
 Population and Community Development                     1                0.04
 Individual Consultants                                 92                 2.25
  About Thailand and ADB                                                                                 Contacts
  ADB Membership                                                                                         Thailand Resident Mission
      Joined                            1966                                                             23rd Floor, The Offices at Central World
                                                                                                         999/9 Rama 1 Road, Wangmai
  Shareholding and Voting Power
                                                                                                         Pathumwan, Bangkok 10330, Thailand
  Thailand is the 11th largest shareholder among regional members and the 17th
                                                                                                         Tel +66 2 263 5300
  largest overall.
                                                                                                         Fax +66 2 263 5301
       Figures are as of 31 December 2008, before the fifth general capital increase
  process began. The process is ongoing, and the final figures are expected to be
  available by 31 December 2010. Current subscription levels are available from
  the Office of the Secretary.
                                                                                                         ADB Headquarters
         Shares held                    48,174 (1.36%)                                                   6 ADB Avenue, Mandaluyong City
         Votes                          61,406 (1.39%)                                                   1550 Metro Manila, Philippines
                                                                                                         Tel +63 2 632 4444
  Chaiyuth Sudthitanakorn is the Executive Director and Govinda Bahadur Thapa is the                     Fax +63 2 636 2444
  Alternate Executive Director representing Thailand on the ADB Board of Directors.            

  Jean-Pierre Verbiest is the ADB Country Director for Thailand. The Thailand Resident                   Ministry of Finance
  Mission (TRM) was opened in 2005 and provides the primary operational link between                     Rama VI Road, Phyathai
  ADB and the government, private sector, development partners, and civil-society                        Bangkok 10400, Thailand
  stakeholders in its activities. TRM engages in policy dialogue and acts as a knowledge                 Tel +66 2 273 9020
  base on development issues in Thailand.                                                                Fax +66 2 273 9059

  The Thai government agency handling ADB affairs is the Ministry of Finance.                            Useful ADB websites
                                                                                                         Asian Development Bank
  About the Asian Development Bank
  ADB is a multilateral development bank owned by 67 members, 48 from the region and                     Country website
  19 from other parts of the world. ADB’s main instruments for helping its developing          
  member countries are policy dialogue, loans, equity investments, guarantees,                 
  grants, and technical assistance (TA). In 2009, lending volume was $13.23 billion
  (93 projects), with TA at $267.2 million (313 projects) and grant-financed projects                    Asian Development Outlook
  at $1.11 billion (64 projects). In addition, $3.16 billion in direct value-added loan        
  cofinancing was generated. Over the last 5 years (2005–2009), ADB’s annual lending
  volume averaged $9.18 billion, with TA averaging $245.7 million and grant-financed                     Annual Report
  projects $855.4 million. As of 31 December 2009, the cumulative totals were                  
  $155.94 billion in loans for 2,206 projects in 41 countries, $5.19 billion for 315 grant               report/2009/
  projects, and $3.81 billion for 6,863 TA projects.
                                                                                                         Depository Libraries

In this publication, “$” refers to US dollars.
Data are as of 31 December 2009 unless otherwise indicated. Fact sheets are updated annually in March.                                               April 2010

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