2011-10-06

Thailand Infrastructure : The Way Forward

Sharing Tripartite Cooperation Experiences in the Comparative Infrastructure Development Assessment of Thailand and Korea
2011. 10. 7

By
Mr. Arkhom Termpittayapaisith Secretary General The National Economic and Social Development Board

Agenda :
Thailand Infrastructure Planning during 1961 Present Thailand and Korea Comparative Profile Factors Affecting Thailand Infrastructure Development during the last 5 decades Learning from Korea Experiences Future Challenges Further Cooperation

2011-10-06

Thailand Infrastructure Planning during 1961 - Present

Expand ec onomic growth th rough infrastruc th ture 1 Plan ( dev.
nd

Emphas ize both on econ omic & - social d ) ev.

Plan (
rd

Focus on ec onomic stability an d provincial d ev.

) ) ) th

Plan ( 4th

Plan (

5th Plan (

) Plan (
th

Human oriente d focusin g on people partici pation under Suffici ency econo my
) Plan (
th

Establish country s immuniza tion & encourag e participati on of all sectors

Plan (
th

) Plan (

Infrastructure projects s pecified in each plan

Investme nt directions is ) indicated to be - ) followed 10th Plan ( 7-11) by ministr ies th

11 Plan (

12-16)
3

Factors affecting Thailand Infrastructure Development during the last 5 decades

Political uncontinuity inconsistent development policy imbalance of intra and inter

Limited investment resource sectoral development

Lack of inter & intra-sectoral synchronization & coordination unharmonized policy and framework and inefficient infrastructure development People participation & environmental concern planning process need of more holistic

Low level of research and development dependence on import of high technology and expensive machinery
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Learning from Korea experiences

Consistency and clear direction of investment policy: To obtain policy continuity regardless of political change so as to maximize infrastructure development efficiency
Transport investment in Thailand Transport investment in Korea

Learning from Korea experiences

Synchronization of policy and framework: To coordinate policy and framework at subsector, sector, macro level for united implementation of development initiatives.

Thailand

Korea

National Plan Integrated Sector Mast er Plan Individual agency plan s Consistent plan To improve organizational performance for a more Institution streamline:and de velopment inclusive approach to policy formulation, better service quality, and efficient operation and maintenance Water Infrastr Thailand Korea ucture Service provid Approximately 30 agencies a 1 agency er ssociated. K-Water
e.g. MWA, PWA, local authori ty, Department of health, Department of Grou
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Learning from Korea experiences

Research & Development: To increase investment on R&D so as to create high value added products and improve businesscompetitiveness

1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%

Ratio of R&D investment to total investment in Thailand

2007

2008

2009

2010

2011

Learning from Korea experiences

Public Private Partnership (PPP): To establish good environment and Private investment was for PPP of MLTM implementation on the infrastructure regulatory framework merely 2.1%schemeinfra budget in 1997. The ratio grew to 18.4% in 2008, but has turned downward to 15.4% due to recent global economic crisis and It development in 2010. marks 16.3%
Ratio of private investment to government investment in Korea 1995-2010
20%
18.4% 15.9% 16.3% 17.0% 15.4% 16.3%

18%
16%

14%
12%

10%
8%
7.5%
6.1% 4.0% 2.1% 0.5% 0.7% 6.6% 5.6% 3.4%

9.8%

6%
4%

2%
0%

' 95

' 96

' 97

' 98

' 99

' 00

' 01

' 02

' 03

' 04

' 05

' 06

' 07

' 08

' 09

' 10

Thailand Mil.Baht On going PPP Projects 83,374.4 Mil.USD 2,662

Korea 100 Mil.KRW 959,034 Mil.USD 91,861.5

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Future Challenges
Green Growth: To achieve sustainable development through high quality economic growth, eco- efficiency, an d sustainable environmental management

Asian Economic Community (AEC): To improve infrastructure, institutional, and people-to-people connectivity to enhance countrys competitiveness under threats and opportunities of AEC
Public Private Partnership (PPP): To reform legal and regulatory framework so as to encourage PPP in order to reduce burden on government budget on infrastructure development
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Further cooperation
Further cooperation among countries should be encouraged to achieve highest development benefits of all

Share of development experiences Innovative practices Technology sharing & transfer Capacity building Financial assistance Cultural exchange
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