THAILAND ASEM Trust Fund 2: Implementation Progress, Portfolio Performance and Results

1. THAILANDASEM Trust Fund 2: Implementation Progress, Portfolio Performance and Results MINISTRY OF FINANCE, THAILAND June 28th, 2006

2. BACKGROUND • Objective: established as a response to the 1997 Asian crisis • Total amount of the funds provided for Thailand: • ASEM TF I: approximately 5 million USD (for 10 projects) • ASEM TF II: around 7 million USD (for 10 projects) • Total Grant: nearly 12 million USD (for 20 projects in total)

3. THE DEVELOPMENT PILLARS • The 5 Pillars • Human and Social Capital • Competitiveness • Poverty and Inequality • Natural Resources and Environment • Governance

4. NATIONAL DEVELOPMENT PILLARS AND ASEM TF 2 Total 7,271,900

5. The ASEM TF II Projects Progression • The Completed projects:

6. The ASEM TF II Projects Progression • The On-going projects:

7. HOW THAILAND OVERCAME SOME OBSTACLES • By setting up a TROUBLE SHOOTING TEAM. • Objective: • To solve the problem and obstacles occurred during the projects’ implementation • To monitor the projects achievement • To access the impacts.

8. 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 2006 • After the Trouble Shooting Team took action: 66.69% completion (USD 466,828 disbursement) • Expected Closing Date: August 2006

9. EXAMPLE OF THE ASEM TF II PROJECTS • “Out of Court Meditation Capacity Building Project” • “Thailand’s Preparation for Financial Service Liberalization”

10. “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: • To strengthen the institutional capacity of Thailand’s ADRO to administer out-of-court meditation for financial disputes (including disputes involving non-performing loan) • To promote public understanding and awareness of an out-of-court meditation process and its benefits as an alternative trial

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

12. “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: • To assist the Government and financial institutions to prepare for negotiations and agreements on liberalization services. • To financed studies and the development of recommendations on the liberalization of financial services and the position of Thailand taking in negotiations • To set up workshops to inform and prepare stakeholders for the recommended options and the effect of liberalization in financial services

13. “Thailand’s Preparation for Financial Service Liberalization” (cont.) • Future Plan: to use the research as a handbook for further negotiation.

14. RESULT OF THE ASEM TF II • A high level of ownership of the projects ensures a high level of sustainability.

15. THANK YOU.