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

2. BACKGROUND Objective: established as a response to the 1997 Asian crisis Total amount of the funds provided for Thailand: ASEM TF I: around 5 million USD (for 10 projects) ASEM TF II: around 7 million USD (for 11 projects) Total Grant: nearly 12 million USD (for 21 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 Development pillar Name of the Projects under ASEM TF 2 Grant Total grant amounts (USD) Competitiveness  Out-of-Court Mediation Capacity Building  Financial Services Liberalization  Competitive Financial Sector  Skills & Competitiveness for Poverty Reduction in NE 1,978,300 Human and Social Capital  Social Protection  Education Reform  AIDS Therapy 2,095,000 Poverty and Inequality  Capacity Building & Strategy for Poverty Reduction Phase I & II 1,502,000 Natural Resources and Environment  Watershed Management 700,000 Governance  Governance and social service delivery 996,600

5. HOW THAILAND OVERCOME SOME OBSTICLES By setting up a TROUBLE SHOOTING TEAM. Objective: 1. to solve the problem and obstacles occurred during the projects’ implementation 2. to monitor the projects achievement 3. To access the impacts.

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

7. RESULT OF THE PROJECTS A high level of ownership of the projects ensures a high level of sustainability.

8. EXAMPLE OF THE ASEM TF PROJECTS 1. “Out of Court Meditation Capacity Building Project” 2. “Thailand’s Preparation for Financial Service Liberalization”

9. “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: 1. to strengthen the institutional capacity of Thailand’s ADRO to administer out-of-court meditation for financial disputes (including disputes involving non-performing loan) 2. to promote public understanding and awareness of an out-of-court meditation process and its benefits as an alternative trial

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

11. “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: 1. to assist the Government and financial institutions to prepare for negotiations and agreements on liberalization services. 2. to financed studies and the development of recommendations on the liberalization of financial services and the position of Thailand taking in negotiations 3. To set up workshops to inform and prepare stakeholders for the recommended options and the effect of liberalization in financial services

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

13. THANK YOU.