NEDA eyes Bt10 bn in project aid to poorer states in run-up to AEC

The NEDA is also proposing to the Cabinet the extension of assistance to three other countries, all outside Asean – Sri Lanka, Bhutan and East Timor.

Teerasak Mongkolpod, senior vice president of the agency, yesterday said the estimated Bt10 billion worth of project assistance would go to the so-called CLMV countries – Cambodia, Laos, Myanmar and Vietnam – including technical financial support for the next five years. 

The NEDA has prepared proposals to obtain annual budgets to support projects that will focus on countries sharing borders with Thailand, especially Myanmar.

Myanmar, Laos and Cambodia share more than 5,000 kilometres of border with the Kingdom. More than 71 border-trade areas generate Bt400 billion to Bt500 billion a year, when Vietnam is included. 

There is potential to increase the volume of border trade by helping these countries develop their economies, he said.

 

MUTUAL BENEFITS

Free technical assistance and long-term loans at low interest rates are essential to help neighbouring countries develop their economies and boost the purchasing power of their people, so they will be in a better position to buy goods and services from Thailand in the future.

Thailand will also have access to these nations’ raw materials, therefore the benefits should be mutual, he added.

Essential projects for the near future would comprise basic infrastructure schemes, that is, transport routes – including highways – water, and electrical and sanitation systems. 

Since the CLMV countries have limited access to funding from the World Bank or the Asian Development Bank, the NEDA can play a vital role in providing the funds they need.

Several projects will be open for bidding next year, such as the Bt1.4-billion road-construction project from Ban Huak, in Phayao province, to Muang Kob-Muang Chiang Hoan in Laos; the Bt1.8-billion Hoangsa-Ban Chiang Man (Luang Prabang) road-development project; and the Bt10-million tap-water system project in five Laotian cities (Huay Sai, Kob, Baing, Chaiburi and Koang).

Others include the Bt1.2-billion watergate-construction project at Tan Thuan, Ho Chi Minh, in Vietnam, and the Bt1-billion electrical-system upgrade project in Yangon (North Okkalapa and North Dagon). 

Applicable terms and conditions for obtaining NEDA project support/assistance include compliance to Thai construction standards, the use of Thai contractors and the purchase of Thai goods, Teerasak said.

The NEDA would like the Thai government to announce clearly, during overseas visits by the prime minister and Cabinet members, the Kingdom’s intention to provide technical and financial assistance to neighbouring countries, similar to what Japan and China have both done, he said. 

This would attract awareness and recognition from the international community, especially the World Bank and Asian Development Bank, which may be interested in providing financial support via the NEDA to Thailand’s neighbouring countries, Teerasak added.

Meanwhile, the agency has submitted a proposal to the Cabinet, in which it seeks to extend similar assistance to three other countries with attractive trade prospects but which do not share a border with Thailand – Sri Lanka, Bhutan and East Timor. 

Should the Cabinet approve the proposal, the NEDA will send officials to coordinate and seek project cooperation with these countries in the near future.

The NEDA was established in 2005 as a public organisation under the supervision of the Finance Ministry. 

The agency has to date initiated 18 projects totalling Bt10.48 billion to assist neighbouring countries, with Laos accounting for 14 projects worth Bt8.11 billion. 

There has also been one project each in Cambodia, Myanmar and Vietnam, valued at Bt2.17 billion, Bt122.9 million and Bt150 million respectively.