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Thailand Infrastructure : The Way Forward

By

Mr. Arkhom Termpittayapaisith

Secretary General

The National Economic and Social Development Board

Sharing Tripartite Cooperation Experiences in

the Comparative Infrastructure Development Assessment of

Thailand and Korea

2011. 10. 7

Thailand Infrastructure Planning during 1961 – Present

Thailand and Korea Comparative Profile

Factors Affecting Thailand Infrastructure Development

during the last 5 decadesLearning from Korea’ Experiences

Future Challenges

Further Cooperation

Agenda :

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1 th Plan ( - )

nd Plan ( - )

rd Plan ( - )

4 th Plan ( - )

th Plan ( - )

th Plan ( - )

th Plan ( - )

th Plan ( - )

5 th Plan ( - )

Expand economicgrowth th

roughinfrastructure dev.

Emphasizeboth

on economic & social d

ev.

Focus on economicstability an

dprovincial d

ev.

Humanoriented

focusing

onpeopleparticipationunderSufficiency

economy

Thailand Infrastructure Planning during 1961 - Present

10 th Plan ( 7-11)

11 th Plan ( 12-16)

Establishcountry’ simmuniza

tion & encourag

eparticipati

on of all sectors

Investment

directionsis

indicatedto be

followedby ministr

ies

Infrastructure projects specified in each plan

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Political uncontinuity inconsistent development policy

Limited investment resource imbalance of intra and inter

sectoral development

Lack of inter & intra-sectoral synchronization & coordinationunharmonized policy and framework and inefficient infrastructure

development

People participation & environmental concern need of more holisticplanning process

Low level of research and development dependence on

import of high technology and expensive machinery

Factors affecting Thailand Infrastructure Developmentduring the last 5 decades

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Learning from Korea’ experiences Consistency and clear direction of investment policy: To obtain policycontinuity regardless of political change so as to maximize infrastructuredevelopment efficiency

Transport investment in Thailand Transport investment in Korea

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Learning from Korea’ experiences Synchronization of policy and framework: To coordinate policy andframework at subsector, sector, macro level for united implementation of development initiatives.

Institution streamline: To improve organizational performance for a moreinclusive approach to policy formulation, better service quality, and efficientoperation and maintenance

Thailand KoreaNational Plan

Integrated Sector Master Plan

Individual agency plans

Consistent plan and development

Water Infrastructure Thailand Korea

Service provider

Approximately 30 agencies associated.

e.g. MWA, PWA, local authority,Department of

1 agencyK-Water

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Learning from Korea’ experiences

Research & Development: To increase investment on R&D so as to createhigh value added products and improve business’competitiveness

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

2007 2008 2009 2010 2011

Ratio of R&D investment to total investmentin Thailand

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Learning from Korea’ experiences

Public Private Partnership (PPP): To establish good environment andregulatory framework for PPP scheme implementation on the infrastructuredevelopment

0.5% 0.7%

2.1%

4.0%

6.1%6.6%

3.4%

7.5%

5.6%

9.8%

15.9%16.3%

17.0%

18.4%

15.4%

16.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

' 95 ' 96 ' 97 ' 98 ' 99 ' 00 ' 01 ' 02 ' 03 ' 04 ' 05 ' 06 ' 07 ' 08 ' 09 ' 10

Ratio of private investment to government investment in Korea 1995-2010

Thailand Korea

Mil.Baht Mil.USD 100 Mil.KRW Mil.USD

On going PPP Projects 83,374.4 2,662 959,034 91,861.58

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Green Growth: To achieve sustainable developmentthrough high quality economic growth, eco- efficiency, and sustainable environmental management

Asian Economic Community (AEC): To improveinfrastructure, institutional, and people-to-peopleconnectivity to enhance country’s competitivenessunder threats and opportunities of AEC

Public Private Partnership (PPP): To reform legal andregulatory framework so as to encourage PPP inorder to reduce burden on government budget oninfrastructure development

Future Challenges

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Share of development experiences

Innovative practices

Technology sharing & transfer

Capacity building

Financial assistance

Cultural exchange

Further cooperation

Further cooperation among countries should be encouragedto achieve highest development benefits of all

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