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Spotlight
ADB Supports Study for Integrating Ticketing Systems
 ADB is supporting a study for integrating the ticketing systems for new rail lines of Bangkok Mass Rapid Transit (MRT) network. ADB and the Government of Thailand signed the memorandum of agreement on 29 January at ADB Thailand Resident Mission.
The Government of Japan through the Japan Special Fund provided a grant in the amount of $700,000 to finance the technical assistance. The consulting services commenced on 16 June and the technical assistance is expected to be completed in mid-February 2009. The project preparatory technical assistance includes a project design and feasibility study for two components: an investment loan for procuring an integrated ticketing system; and a technical assistance loan for program management consulting services to assist participating agencies with procurement and implementation. Read the news release.
 Mekong Leaders Agree on 5-Year Development Plan
The prime ministers of Cambodia, People's Republic of China (PRC), Lao People's Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam agreed on a comprehensive 5-year plan of action that aims to spur growth, reduce poverty, promote social development, and enhance environmental protection in the subregion at the 3rd Greater Mekong Subregion (GMS) Summit, held on 31 March in Vientiane.
Opening of Route 3
 Premiers from the PRC, Lao PDR, and Thailand, and ADB President Haruhiko Kuroda officially opened the Route 3 highway in Lao PDR, the last remaining stretch of road in an overland route joining Singapore and Beijing. The route, as part of North-South Economic Corridor, has been under development by Mekong nations and ADB for more than a decade. With the new route, people can now drive from Bangkok to Kunming within a little over one full day. Business and employment opportunities and a number of tourists are expected to expand in the three countries. Read the news release. Watch the video.
Asia's Leaders Discuss Region's Future at ADB Annual Meeting in Madrid
 Some 3,000 leaders of government, private sector, academe, and civil society from around the world gathered in Madrid on 3–6 May for ADB's 41st Annual Meeting. Among the topics discussed were the economic outlook for the Asia and Pacific region amid the global financial turmoil, soaring food and oil prices, climate change, and the fight against poverty. Through the Annual Meeting, the Board of Governors—ADB's highest policy-making body which comprises one representative from each ADB member—provides guidance on ADB administrative, financial, and operational directions, and on ADB's new long-term strategic framework for 2008-2020, which will change the way the organization serves the region.
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| Knowledge Sharing and Advisory Services |
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Country Operations Business Plan 2008-2010
Building upon the country partnership strategy, the first annual business plan of ADB's forward-looking technical assistance and lending operations in Thailand was completed in June. ADB's indicative program of operations in Thailand from 2008 to 2010 remains fully consistent with the country partnership strategy, both at the national and regional levels of partnership.
Planning for Sustainable Development of Southern Thailand
The advisory technical assistance, which started in March, assessed the needs, constraints, and opportunities in Southern Thailand. The assessment will serve as the basis for carrying community consultations and preparing preliminary structure plans. The National Economic and Social Development Board, the project's executing agency, intends to define a balanced approach to future development through regular stakeholder participation in the early planning stage, and through implementation. The technical assistance aims to come up with implementation strategy and roadmap for a regional development plan.
Credit Derivatives Market in Thailand
The final report on Credit Derivatives, submitted to the Bank of Thailand in June, examined credit derivatives and evaluated their usefulness for further development of Thailand's capital markets. The report has helped clarify the suitability of credit derivatives for Thailand's capital market. The report says that Thailand needs to develop the credit derivatives market if the Government wants to continue improving the capital markets and diversify financial sector risks away from the concentrated banking system. The corporate bond market currently lacks sufficient diversity of issuers both from a credit and sector standpoint. A clear solution would be to free up foreign issuance which would satisfy domestic investor demand, and create more issues from which credit default swap could be priced. The report recommends that single name credit products be the preferred credit derivatives at the initial stage of market development.
Bond Market Development Fund
The final report on Bond Market Development Fund, submitted to the Ministry of Finance in June, has helped recommend appropriate regulations to define the investment guidelines, risk management, and fund performance monitoring systems. The report says that the investment mandate of the Fund under the law is rather limited, and thus should be allowed to evolve. The report also recommends that the transfer pricing mechanism among Public Debt Management Office, Ministry of Finance, and the Fund be a priority. Further investigation on accounting issues within PDMO and the Fund is needed.
Capacity Building and School Networking for Education Services (E-Learning) in Thailand
ADB is assisting the Chulalongkorn University Demonstration Elementary School develop an internet-based distance learning education curriculum for elementary school levels. The technical assistance comprises three components: formulation and design of the e-learning course content in English, Science, and Mathematics; IT and multimedia implementation; development of Demonstration School Network to enhance collaboration in e-learning and teaching development. The technical assistance aims to enhance the capacity of teachers and students in remote areas. Through e-learning modules taught by well-trained teachers, elementary school students in remote areas can receive the necessary curriculum to efficiently prepare for the National Test. Moreover, the Demonstration School Information Learning Center at Chulalongkorn University, upon completion, will serve as a hub for distributing the e-learning modules to affiliated schools in remote areas.
Making Low-Cost Activated Carbon Water Filters from Coconuts and Palm Oil Shells
ADB, through a pilot demonstration activity from the Water Fund, financed a grant for the District of Tap Sakae, Prachuab Khiri Khan Province to explore the feasibility of producing activated carbon from coconuts and palm oil shells. The completed study by the Bangkok-based Center for Energy Environment Resources and Development highlights the benefits for a village to enter such a business, which promotes local economic development, gender equity, and social development. A public-private partnership structure is being considered by several investors, with the local government providing raw material, manpower, and land, and the private sector financing the purchase of equipment and technology. The business model shows a strong potential for upscaling in the region.
GMS Highway Expansion Project
ADB is preparing a project design and feasibility study to finance the upgrading and widening of national highways along priority sections of the GMS East-West and Southern Economic Corridors. The project will increase transport efficiency and reduce logistics in these two strategic transport corridors, benefiting users from Thailand and other GMS countries. The project will also support the preparation of a detailed plan and strategy for financing and implementing a network of intercity motorways coming from the Bangkok metropolitan area.
Enhancing Transport and Trade Facilitation in the GMS
ADB approved a new regional technical assistance project on Enhancing Transport and Trade Facilitation in GMS on 28 March, prior to the 3rd GMS Summit. The project will help GMS countries attain a more efficient movement of goods and people in the subregion. It will support the overall institutional capacity building to strengthen transport and trade facilitation in the GMS, and will work closely with relevant agencies with competence in these matters, including customs and Sanitary and Phytosanitary System agencies. The project will strengthen transport facilitation, pursue stronger and closer cooperation in sanitary and phytosanitary matters, provide support in business and logistics development, and enhance regional information sharing for trade and transport facilitation. Preparation for mobilization of expert teams to conduct the technical work under the project is ongoing.
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| Environment |
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Implementing Biodiversity Conservation Corridor Initiative (BCI) in Thailand
The Ministry of Natural Resources and Environment initiated forest restoration activities at a ceremony on 9 June at the Thai Prachan cluster of Tenasserim corridor. In addition to distinguished officials and village representatives, more than one thousand students participated in tree planting covering one thousand rai of the degraded forest. Thailand's cabinet has recently acknowledged Tenasserim corridor and directed cooperation among relevant government agencies to facilitate BCI implementation under ADB's regional technical assistance project.
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| Students participated in forest restoration activities in Thai Prachan |
ADB and the GMS Environment Operations Center also launched a 30-minute documentary, Forest for the Future* , at Foreign Correspondents' Club of Thailand in Bangkok on 5 June to celebrate the World Environment Day 2008. It aims to provide awareness on climate change and how to reduce gas emissions through the slogan "kick the Co2 Habit-towards a low carbon economy." The documentary shows the rich forests of the Mekong region, and the importance of reducing the damage being inflicted on the ecosystem. BCI activities are seen as one possible approach to climate change adaptation and mitigation. Read the news release.
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| Economic and Sector Analysis |
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Developing Asia to Post Solid Growth in 2008
Developing Asia will post solid growth in 2008 even as major industrial economies slow down, according to Asian Development Outlook 2008. As for Thailand, growth is projected to edge higher in 2008–2009 with an increase in domestic demand, helping cushion a slowdown in export growth. Inflation, which was low last year, is now accelerating. Read Thailand's chapter in ADO and a news release.
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| Private Sector Operation |
ADB Helps Cambodia Import Electricity from Thailand
An ADB project cofinanced with Thai Exim Bank, Arco Capital, and Foreign Trade Bank was recently commissioned and is now importing inexpensive, reliable, and ample power from Thailand and transmitting the same to Banteay Meanchey, Battambang, and Siem Reap in Cambodia. The CPTL Power Transmission Project was signed in January by the project proponents, Cambodia's and Thailand's authorities, bankers, suppliers, and other parties which all contributed to the success of the project. Expected to reach financial close in July, the project is ADB's first private sector project in Cambodia. Read the news release and the brochure .
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| Conferences |
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ADB-ITD Seminar on Asian Trade and Investment Integration and Implications for Thailand
The 2-day seminar, organized by ADB and International Institute for Trade and Development in June, concluded that Asian integration would continue and that Thailand would play a big role in supporting pan-Asian integration. Virasak Fultrakul, Permanent Secretary, Ministry of Foreign Affairs gave a keynote address. Srinivasa Madhur, Director, ADB Office of Regional Economic Integration, presented on Asian cooperation and integration while Ganeshan Wignaraja, ADB Senior Economist, presented on impact of FTAs on business activity in Thailand . Key academics, Thailand's senior policymakers, and private sector representatives also participated.
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