THAILANDASEM Trust Fund 2: Implementation Progress, Portfolio Performance and Results

MINISTRY OF FINANCE, THAILAND

June 28th, 2006

BACKGROUND

Objective: established as a response to the 1997 Asian crisis

Total amount of the funds provided for Thailand: ASEM TF I: around 5 million USD (for 10

projects) ASEM TF II: around 7 million USD (for 11

projects) Total Grant: nearly 12 million USD (for 21

projects in total)

THE DEVELOPMENT PILLARS

The 5 Pillars Human and Social Capital Competitiveness Poverty and Inequality Natural Resources and Environment Governance

NATIONAL DEVELOPMENT PILLARS AND ASEM TF 2

Development pillar Name of the Projects under ASEM TF 2 Grant Total grant amounts (USD)

CompetitivenessOut-of-Court Mediation Capacity BuildingFinancial Services LiberalizationCompetitive Financial SectorSkills & Competitiveness for Poverty Reduction in NE

1,978,300

Human and Social CapitalSocial ProtectionEducation Reform AIDS Therapy

2,095,000

Poverty and InequalityCapacity Building & Strategy for Poverty Reduction Phase I & II

1,502,000

Natural Resources and Environment Watershed Management

700,000

GovernanceGovernance and social service delivery

996,600

HOW THAILAND OVERCOME SOME OBSTICLES

By setting up a TROUBLE SHOOTING TEAM.

Objective:1. to solve the problem and obstacles

occurred during the projects’ implementation

2. to monitor the projects achievement3. To access the impacts.

TROUBLE SHOOTING TEAM IN ACTION

“Participatory Watershed Management for Ping River Basin”

The Trouble Shooting Team solved the delay in the project by:

setting up meeting with the concerned agencies monitoring.

Only 36.67% (USD 300,210 disbursement amount) completion in March

After the Trouble Shooting Team took action: 66.69% completion (USD 466,828 disbursement)

Expected Closing Date: August 2006

RESULT OF THE PROJECTS

A high level of ownership of the projects ensures a high level of sustainability.

EXAMPLE OF THE ASEM TF PROJECTS

1. “Out of Court Meditation Capacity Building Project”

2. “Thailand’s Preparation for Financial Service Liberalization”

“Out of Court Meditation Capacity Building Project”

Executing Agency: Thailand’s Alternative Dispute Resolution Office

Effective: June 2002 Closed: March 2004 Amount: USD 400,000 Objectives:

1. to strengthen the institutional capacity of Thailand’s ADRO to administer out-of-court meditation for financial disputes (including disputes involving non-performing loan)

2. to promote public understanding and awareness of an out-of-court meditation process and its benefits as an alternative trial

OVERALL RESULTS: the speed and quality of corporate and debt

restructuring was improved the resolution of NPLs and the competitiveness of Thai

banks and firms was created the institutional capacity to facilitate voluntary out-of-

court debt workouts was founded a capacity of the newly created Business Rehabilitation

Office and Central Bankruptcy Court to administer court supervised business rehabilitation and debt restructuring was emerged

This left Thailand a progress in corporate and debt

restructuring

“Out of Court Meditation Capacity Building Project” (cont.)

“Thailand’s Preparation for Financial Service Liberalization” Executing Agency: Fiscal Policy Office, Minister of

Finance, Thailand Effective: April 2004 Closed: February 2006 Amount: USD 218,000 Objectives:

1. to assist the Government and financial institutions to prepare for negotiations and agreements on liberalization services.

2. to financed studies and the development of recommendations on the liberalization of financial services and the position of Thailand taking in negotiations

3. To set up workshops to inform and prepare stakeholders for the recommended options and the effect of liberalization in financial services

“Thailand’s Preparation for Financial Service Liberalization” (cont.)

Future Plan: to use the research as a handbook for further negotiation.

THANK YOU.