The 2007-2011 country partnership strategy identifies capital market development as among the core areas of cooperation between Thailand and ADB and is a top priority on Thailand's domestic economic agenda. The TA is included in the technical assistance (TA) pipeline for 2008. The TA is the second of four TAs expected to be provided to Thailand over the medium term to deepen bond and equity markets, broaden the investor base, strengthen financial stability and enhance risk management practices in the financial sector. The present TA aims to build upon the previous ADB advisory TA that addressed weaknesses in important areas of capital market operations, and tried to lay the groundwork for
|Project Name||Capital Market Development Phase II|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Finance - Money and capital markets
|Gender Equity and Mainstreaming||No gender elements|
|Project Rationale and Linkage to Country/Regional Strategy||The 2007-2011 country partnership strategy identifies capital market development as among the core areas of cooperation between Thailand and ADB and is a top priority on Thailand's domestic economic agenda. The TA is included in the technical assistance (TA) pipeline for 2008. The TA is the second of four TAs expected to be provided to Thailand over the medium term to deepen bond and equity markets, broaden the investor base, strengthen financial stability and enhance risk management practices in the financial sector. The present TA aims to build upon the previous ADB advisory TA that addressed weaknesses in important areas of capital market operations, and tried to lay the groundwork for|
|Impact||The TA will assist the Thai government in achieving their economic and social objectives by facilitating secure and diverse funding sources for development.|
|Description of Outcome||The expected outcome will be a functional internationally competitive capital market that supports basic capital and investment needs.|
|Progress Toward Outcome|
|Description of Project Outputs||
(i) Enhanced bond issuance program by Public Debt Mgmt Office (PDMO), improved structure of the bond market development fund as well as the bond issuance program. Framework and procedures established for on-lending and guarantee to State-Owned Enterprises and local government units. New framework for cash management of PDMO developed. Appropriate debt consolidation and issuance strategy developed, as well as government auction processes streamlined.
(ii) Fiscal Policy Office - (a) Support for Capacity Bldg; and (b) Support to Secondary Mortgage Corporation.
(iii) Securities Exchange Commission. Appropriate procedures developed for an independent review of audit practices adopted by auditors of listed companies.
(iv) Stock Exchange of Thailand. Capital market development master plan with action plan for implementation developed.
(v) Bank of Thailand - (a) Mortgage insurance. An efficient mortgage insurance system in Thailand developed to protect lenders and investors against loss by reason of borrower default; (b) Exchange Control Policy developed. Recommendations on how to balance conflicting policy objectives of developing Thailand's financial markets while ensuring its ability to effectively manage speculative capital inflows. The TA implementation commenced in November 2008 and an inception report was received. The consultants are assisting the governmnet to develop the capital market development master plan expected to be finalized by May 2009. The taxation expert has completed his assignment and submitted his draft recommendations. The support on the BOT component is yet to start due to the nonavailability of the assigned expert until May 2009.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
The TA will require 25.5 person-months of international consultant inputs and 8 person-months of national consultant inputs.
The consultants will be hired individually or through a firm by ADB through quality-based selection, according to the Guidelilnes on the Use of Consultants (2007, as amended from time to time).
|Responsible ADB Officer||Kaneko, Chiemi|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
Bank of Thailand
273 Samsen Road
Pranakorn, Bangkok 10200 Fiscal Policy Office
Thailand Public Debt Management Office
Ministry of Finance
Rama VI, Samsen Nai Pyathai
|Concept Clearance||03 Jun 2008|
|Fact Finding||27 Mar 2008 to 02 Apr 2008|
|Approval||24 Jul 2008|
|Last Review Mission||-|
|PDS Creation Date||11 Aug 2008|
|Last PDS Update||31 Mar 2010|
|Approval||Signing Date||Effectivity Date||Closing|
|24 Jul 2008||21 Aug 2008||21 Aug 2008||30 Jun 2009||30 Jun 2010||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||450,000.00||0.00||0.00||0.00||1,450,000.00||24 Jul 2008||818,456.81|
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