Thailand's NEDA blazes trail

ECONOMIC DEVELOPMENT

Thai businesses looking to tap regional markets can benefit from the foreign-aid programme established recently by the Thai government.

Officials attend a seminar on the Neighbouring Countries Economic Development Co-operation Agency (NEDA), which has approved 6.9 billion baht for infrastructure projects.

The Neighbouring Countries Economic Development Co-operation Agency (NEDA) has approved 6.9 billion baht for infrastructure projects in neighbouring countries, which in turn should help the Thai economy, trade, investments, tourism and social development.

By providing infrastructure project funding to neighbouring countries, the agency can also help local Thai companies to expand their horizons.

NEDA president Acksiri Buranasiri said the 6.9 billion baht in approved projects included six in Laos worth 3.22 billion, three in Cambodia worth 3.57 billion and one in Burma worth 122.62 million. They involve construction, repair and maintenance of roads, railways, airports and drainage systems.

NEDA is a public organisation established in 2005 under the Finance Ministry with the aim of helping neighbouring countries in trade, investment, land, sea and air transport networks, tourism and human resources development.

It operates in line with regional agreements such as Greater Mekong Sub-region (GMS), Ayeyawady-Chao Phraya-Mekong Economic Co-operation Strategy (Acmecs) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation (Bimstec), the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and others.

While grants and concessional loans have already been given to certain projects, many others within the economic development framework are at the preparatory stages for project formulation and funding, said Mr Acksiri.

Eligible projects with financial plans will allow Thailand and neighbouring countries to jointly enhance tourism potential and adjust the balance of trade and investment to appropriate levels.

"Financial assistance proceeds must be used to procure goods and services originated in Thailand in a proportion of at least 50% of the contract price," said Mr Acksiri.

"The completion of the projects will also help to connect logistics systems across the region, which will help to promote our growth by enhancing the potential of tourism, trading and investment especially for competitiveness among Thai entrepreneurs for overseas expansion."

NEDA has formulated four main strategies for the next few years to achieve efficient management in line with partnership-for-development principles:

Acksiri: Aid also helps Thai growth

- Creating a knowledge base and mechanisms to provide financial assistance to neighbouring countries for economic development partnership.

- Putting in place adequate and efficient fund management.

- Promoting and developing essential networks for operations.

- Creating a modernised organisational system with good governance.

Mr Aksiri said NEDA projects would not duplicate the work of other donors such as the Asian Development Bank (ADB), World Bank, Japan International Co-operation Agency (JICA), or organisations from China or South Korea.

NEDA is now studying another 15 projects proposed from this year until 2011. They include road construction and renovation, international airport renovation, railway construction in Laos, a bridge across the Mekong River, road development in Cambodia, and land development at Emerald Triangle area.

Of the 15 future projects, four worth 4.57 billion baht in total have qualified for loan commitments: road construction in Cambodia worth 1.4 billion, and three road routes in Laos worth 3.17 billion. Construction will take three to five years.

According to logistics development plans for 2008-15, Laos needs $1.84 billion while Cambodia needs $2.84 billion to support its road development plan from 2009-20. Both need to develop in both economic and social fields such as logistics, tourism, agriculture, rural development, industrial and energy and human resource development.

Relate Search: Neighbouring Countries Economic Development Co-operation Agency, Greater Mekong Sub-region, Ayeyawady-Chao Phraya-Mekong Economic Co-operation Strategy, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation, Indonesia-Malaysia-Thailand Growth Triangle