World Bank Urges Thailand to Act on 'Repeated' Water Crisis as Billions in Plans Stall

 

Thailand faces a worsening water crisis, with a senior World Bank official cautioning the nation about the severe and recurring challenges posed by both floods and droughts.

 

The grim outlook comes as nine crucial master plans for the Chao Phraya River basin, collectively valued at an estimated 423 billion baht, remain largely unimplemented.

 

This inaction forces businesses in the Eastern Economic Corridor (EEC) to shell out billions annually just to secure water supplies.

 

The Thai government is currently reviewing a 157 billion baht economic stimulus package, with a significant portion earmarked for water management infrastructure and systems.

 

These investments are intended to bolster the country's resilience against climate change-induced water fluctuations. Proposals are reportedly set to be presented to the Cabinet as early as 24th June 2025.

 

Kwanpadh Suddhi-Dhamakit, the World Bank’s Senior Water Resources Management Specialist in Thailand, highlighted to 'Thansettakij' that the nation is grappling with increasingly severe water issues.

 

 

Climate change is manifesting as "heavy rainfall but prolonged droughts," a pattern that current infrastructure is ill-equipped to handle.

 

"Water management infrastructure needs significant investment to cope with climate change, where rainfall becomes more intense and lasts longer, increasing flood risks, and dry spells become longer," Kwanpadh explained. "Our current management systems cannot adequately handle critical water volumes, leading to continuously escalating economic costs."
 

 

 

He noted that the nine strategic water management plans for the Chao Phraya River basin, a vital economic artery, were devised following the devastating floods of 2011.

 

However, only one or two have seen any progress due to "political and budgetary constraints."

 

 

The Nine-Point Plan: A Roadmap for Water Security

The Chao Phraya 9 Plans, developed by the Royal Irrigation Department, aim to efficiently discharge excess water from the Chao Phraya River to the sea during flood periods.

 

The proposed investment of over 423.751 billion baht, representing about 2.3% of Thailand's GDP, is intended to enhance water security and prevent a repeat of the economic fallout from the 2011 floods.

 

Key components of the plans include:

East Side of the Chao Phraya River Basin (3 Plans):

• Construction of a drainage canal parallel to the Chai Nat – Pasak canal (900 cubic metres/second capacity; 35 billion baht).
• Improvements to the Raphiphat Canal and its branches (increasing discharge to 400 cubic metres/second; 62 billion baht).
• Excavation of a new canal from the Pasak River to the sea (600 cubic metres/second discharge capacity).

 

 

 

West Side (2 Plans):

• Enhancing the efficiency of the Tha Chin River through bypass canals and river shortcuts (increasing capacity from 464 to 535 cubic metres/second).
• Upgrading the water diversion system from Khlong Chao Chet to Mahachai (increasing capacity from 50 to 130 cubic metres/second).

 

Direct Chao Phraya River Basin (4 Plans):

• Construction of the Bang Ban – Bang Sai bypass canal to reduce water flow through Ayutthaya (1,200 cubic metres/second discharge).
• Dredging 20 km of the Chao Phraya River to increase discharge capacity to 2,800 cubic metres/second.
• Building external dykes in low-lying areas.
• A drainage canal parallel to Outer Ring Road 3 (500 cubic metres/second), currently under feasibility study with the Department of Highways and JICA.

 

Kwanpadh lamented that "70% of the Royal Irrigation Department's budget is consumed by annual maintenance, leaving only 30% for actual investment. This severely hampers the progress of large-scale projects."

 

 

 

World Bank Support and Key Challenges

The World Bank is collaborating on Plan 1 of the nine, a significant undertaking with a total cost of approximately US$2.9 billion. Of this, around US$2.1 billion is co-financed by development partners.

 

This project involves the upgrade of 23 canals, spanning 494 km, which will be deepened and widened with improved sluice gates to manage increased water volumes.

 

The project area extends from central Thailand, including Bangkok and Ayutthaya, down to the Gulf of Thailand.

 

The World Bank will provide US$346 million, focusing on:

• Improving irrigation infrastructure (canals, sluice gates, pumping stations) for better climate change resilience and flood mitigation.
• Strengthening effective and climate-friendly water management capabilities.
• Enhancing community-level disaster preparedness and resilience.

 

Plan 1 is currently in negotiation and financing preparation between the Thai government and the World Bank. While the project structure and feasibility studies are complete, construction has not yet begun, and funding sources remain undecided.

 

Plans 2-9 are still in the preliminary study phase.

 

Further pressure is mounting in the Eastern Economic Corridor (EEC), a key industrial hub, which faces severe water shortages every dry season due to high demand from industry, tourism, and agriculture.

 

Businesses are forced to import water at an annual cost of around 5 billion baht (US$150-170 million). While the government has planned 32 aid projects for businesses, only 3-5 have materialised.

 

"If the government invests approximately US$370 million in a water diversion system from the Prasae Reservoir in Rayong to Bang Phra in Chonburi, it could offset the cost businesses spend on water transport within two years – a definite return on investment," Kwanpadh argued.

 

 

Another critical issue highlighted is the inefficient use of water, particularly in agriculture, which accounts for 70% of the nation's water consumption but contributes only 8-9% of GDP and employs 30% of the workforce, predominantly in low-value farming like rice cultivation.

 

The World Bank pointed out that Thailand's "Water Productivity" is low compared to regional neighbours.

 

It recommends adopting modern agricultural techniques like "alternate wetting and drying" and "drip irrigation" (similar to Israel's methods), alongside introducing "water charges" to encourage more efficient use.

 

This would reduce the government's burden of annual compensation for drought or flood damage, which currently stands at a staggering 80 billion baht.

 

The World Bank also suggested that the government invite private sector investment in wastewater treatment for reuse and systematically collect treatment fees from water users.

 

Furthermore, it stressed the urgency of reforming the Royal Irrigation Department for the digital age and designing a comprehensive 3D water management system that considers upstream, midstream, and downstream aspects.

 

"Ultimately, the government's annual expenditure on disaster relief for floods and droughts exceeds 80 billion baht," Kwanpadh concluded. "If the government takes the bold decision to invest 400 billion baht in the nine Chao Phraya River basin plans, it will likely yield more long-term positive impacts than endless compensation payments, and also open opportunities for sustainable economic development."