Asian Development Bank &
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 ($) 2,670 2,590 2,660 2,840 …
Total may not add up because of rounding.
(% change per year) 4.6 5.1 4.9 2.5 -2.3
CPI (% change per year) 4.5 4.7 2.2 5.4 -0.9 Table 5. Thailand: Project Success Rates
Unemployment rate (%) 1.8 1.5 1.4 1.4 1.5 No. of Rated
Fiscal balance Projects/
(% of GDP) 0.2 0.1 -1.1 -0.3 -4.8 By Sector Percentagea Programs
Export growth Agriculture and Natural Resources 57.1 7
(% change per year) 15.2 17.0 18.2 15.9 -13.9 Education 100.0 4
Import growth Energy 100.0 21
(% change per year) 25.8 7.9 9.1 26.5 -24.9 Finance 100.0 8
Current account balance Health and Social Protection 0.0 1
(% of GDP) -4.3 1.1 6.3 0.5 7.7
Industry and Trade 100.0 2
External debt (% of GNI) 31.1 34.3 31.6 32.2 …
Transport and ICT 93.3 15
… = data not available, CPI = consumer price index, GDP = gross domestic product, Water Supply and Other Municipal
GNI = gross national income.
Infrastructure and Services 66.7 6
Sources: ADB. 2010. Asian Development Outlook 2010. Manila.
ADB staff estimates.
Total 89.1 64
World Bank. 2010. World Development Indicators Online. By Year of Approval
1960s 100.0 1
1970s 87.5 24
Table 3. Thailand: 2009 Loan, TA, and Grant Approvals ($ 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
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 (%) – – $8.3 million for 23 TA projects.
– = nil.
Note: Totals may not add up because of rounding.
Table 8. Thailand: Contractors/Suppliers Involved in ADB Loan
Table 7. Cumulative Nonsovereign Operations Portfolio Distribution
Projects, 1 January 2005–31 December 2009
by Top Countries, 1983–2009a,b
Total ADB Contractor/Supplier Sector ($ 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
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 www.adb.org/Documents/Fact_ 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 $2.17 billion. consultants from Thailand for goods and works, and consulting services
From 1 January 1968 to 31 December 2009, consultants were can be found at www.adb.org/Documents/Fact_Sheets/Thailand/
involved in 10,945 contracts for ADB loan projects worth procurement.asp.
Table 10. Thailand: Top Consultants (Individual Consultants and Table 11. ADB Assistance to DMCs, 2008–2009a
Consulting Firms) Involved in ADB Technical Assistance 2008 2009 Change
Projects, 1 January 2005–31 December 2009 ($ 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
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.
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. firstname.lastname@example.org
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 www.adb.org/Thailand
member countries are policy dialogue, loans, equity investments, guarantees, www.adb.org/trm
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 www.adb.org/Documents/Books/ADO/2010/THA.pdf
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 www.adb.org/Documents/reports/annual_
$155.94 billion in loans for 2,206 projects in 41 countries, $5.19 billion for 315 grant report/2009/
projects, and $3.81 billion for 6,863 TA projects.
In this publication, “$” refers to US dollars.
Data are as of 31 December 2009 unless otherwise indicated. Fact sheets are updated annually in March. April 2010