1. THAILAND ASEM 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
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
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
Total 7,271,900

5. The ASEM TF II Projects Progression
The Completed projects:
No.
TF Name
Grant Amount
Disbursement%
Closing Date 1
Strengthening Governance and Social Services through Public Sector
996,600
100%
28 Feb 06 2
Capacity Building and Strategy for Poverty Reduction
920,000
31 Dec 05 3
Strengthening Social Protection for the Working Population, The Poor
And The Vulnerable in Thailand
985,000 4
Out-of-Court Meditation Capacity Building
400,000
31 Mar 04 5
Thailand's Preparation for Financial Services Liberalization
218,000

6. The ASEM TF II Projects Progression
The On-going projects:
No.
TF Name
GrantAmount(USD)
Disbursement%
Expected
Closing
Date 1
Education Reform
550,000
58%
30 Aug 06 2
Stimulating VCT and Early Recruitment into ART
260,000
66.07% 3
Participatory Watershed Management for Ping River Basin
700,000
66.69% 4
Strategy and Implementation for a Competitive Financial Sector in Thailand
990,000
60.47% 5
Skills and Competitiveness for Poverty Reduction in Northeast
370,300
35.03%

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 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.