Thailand-World Bank Country Development Partnership for Infrastructure -- An Overview --

1. Thailand-World BankCountry Development Partnership for Infrastructure-- An Overview -- Zhi Liu The World Bank The National Launching of Thailand-World Bank Country Development Partnership for Infrastructure (CDP-INFRA) Bangkok, Thailand January 31, 2007

2. Country Development Partnership (CDP) • A CDP is a knowledge-based partnership for analytical work and implementation support actions in key areas of the country’s development agenda • The CDP is led by the Government and supported by the Bank and international development partners • The World Bank’s engagement can take the forms of analytical studies, just-in-time advisory, capacity building support, financial support, and coordination / facilitation.

3. CDP-INFRA: Objective • To help Thailand improve national competitiveness and the well-being of the population, by supporting the development and implementation of infrastructure strategies, policies, regulatory and institutional actions, and investment programs

4. CDP-INFRA: Components • Technical support to the formulation and implementation of infrastructure and logistics development strategies • Technical support to renewable energy development and energy efficiency • Technical support to urban transport development in the Bangkok metropolitan area, under the Urban TransportDevelopment Partnership (UTDP) jointly supported by ADB, AfD, JBIC, and World Bank Group • Technical support to the regulatory capacity building program of the National Telecommunication Commission (NTC) • Implementation support to a pilot demonstration project for rural water supply and income generation

5. Concept Development Process • A series of preparatory discussions between the World Bank and the NESDB and other government agencies on sector issues, priorities, and areas and means of collaboration • Consultation with other international financial institutions, especially for the urban transport component • Identification of components based on identified priorities and building on Bank’s on-going activities • World Bank internal peer review and management review

6. Infrastructure Sector: Overview • Infrastructure has played an important role in supporting Thailand’s economic growth over the last few decades • Electricity supply, intercity highway transport, inland water transport, ocean shipping, urban water supply, and telecom services appear to be generally adequate; air transport is considered world-class

7. Infrastructure Sector: Overview • However, infrastructure bottlenecks emerge due to rising demand for services and inadequate investment in infrastructure capacity • High logistics cost, high energy intensity, and low rate of renewable energy use reduce national competitiveness and weaken the foundation for long-term economic growth and sustainability • Inadequate water supply in many rural areas and traffic congestion in Bangkok affect the well-being of a large number of population

8. The sector issues that the CDP-INFRA attempts to help address • How to effectively tackle high logistics cost, high energy intensity, and low level of renewable energy? • How to reduce traffic congestion in Bangkok, expand piped water supply in many rural areas? • How to ensure medium-term infrastructure investment is consistent with long-term sustainable development goals? • How to invest in infrastructure while maintaining macro-economic and financial stability? • How to enable the participation of private sector and communities in infrastructure financing and management? • How to improve sector performance through enhanced regulatory capacity?

9. Component 1: Formulation and Implementation of Infrastructure and Logistics Strategies • Objective • To provide analytical underpinning for the formulation and implementation of sustainable infrastructure strategies • Deliveries • Thailand Infrastructure Sector Study (to provide input to Thailand Infrastructure Annual Reports) • A study on public-private partnership (PPP) strategies for infrastructure. • A series of knowledge sharing seminars on international experiences and practices

10. Component 2: Support to the Renewable Energy Development and Energy Efficiency • Objective • To provide technical support to the Government’s effort in exploring technological and policy options for the development of renewable energy and improvement of energy efficiency • Deliveries • A consultant study on Government’s energy policies and private financing on renewable energy projects • A consultant study on strategic road-map for promoting energy efficiency and renewable energy • Development of a coherent energy efficiency database for Thailand • Carbon finance knowledge sharing • Exploration of commercially financed renewable energy and energy efficiency projects • Field study tours

11. Component 3: Technical Support to Urban Transport Development • The inputs from the World Bank Group will be part of the joint ADB, AfD, JBIC and World Bank Urban Transport Development Partnership • Objective • To help improve urban transport in Bangkok Metropolitan Region through technical advisory support to the development and implementation of urban transport strategies, policies, projects, and regulatory and institutional capacity building • Deliveries • Bangkok Urban Transport Development Strategic Roadmap Study • Technical workshops (1st workshop planned for march/April 2007) • Proposed IFC advisory services for private financing transaction under the public-private partnership

12. Component 4: Support to the Capacity Building of the National Telecommunication Commission (NTC) • This component defines the second phase of NTC capacity building. The first phase of World Bank support to NTC capacity building was successfully completed • Objective: To provide information on international best practice experiences and expertise to the NTC in carrying out its responsibilities • Deliveries: Briefings and workshops to NTC Commissioners and senior staff on a range of telecom regulatory topics • Possible capacity building for other regulatory agencies, through information exchange, experience sharing, and training programs available from the East Asia and Pacific Infrastructure Regulatory Forum

13. Component 5: Support to a Pilot Demonstration Project for Rural Water Supply and Income Generation • Objective • To demonstrate that rural water supply services could be provided in a more efficient and sustainable manner, and on the basis of commercial and community participation • Deliveries • Implementation support to the pilot demonstration project in 40 selected poor villages • Preparation of an Operation Manual / Detailed Design of the scale-up operation. • A dissemination study tour for relevant central and local government officials in Thailand, Thai mass media, and government officials from neighboring countries

14. Partnership Arrangement • The NESDB is a primary counterpart of the World Bank Country Program in Thailand, and will be the lead agency from the Government for the CDP-INFRA • Other government agencies involved in the CDP-INFRA include • Ministry of Finance • Bureau of Budget Ministry of Energy and its Energy Policy and Planning Office (EPPO) • Ministry of Transport and its Office of Transport Planning (OTP) • Ministry of Environment and Natural Resources • National Telecommunications Commission (NTC) • Others: Chamber of Commerce, Thai Federation of Logistics (TFL), state enterprises, private sector, and academics • International development agencies • The Partnership is an open platform for all interested stakeholders to participate

15. THANK YOU