PUr,'^l Te,! I CXIRCULATIN'G COPY RESTRICTED RE:P V R;?- E ~ vIII5JULI1vK Report No. EAP-28 R VJTHN 1 BE RETURNED TO REPORTS DESK ONE WEK Public Disclosure Authorized This report is for official use only by the Bank Group and specificaLy authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responibility for the accuracy or completeness of the report.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized

CURRENT ECONOMIC POSITION

AND PROSPECTS

OF

THAILAND

Public Disclosure Authorized (in six volumes)

VC)LUME IV

Annex 5. Tourism Annex 6. Education Annex 7. P'rovincial Water Supply Annex 8. UJrban Development

January 11, 1972 Public Disclosure Authorized

East Asia and Pacific Department Currency Unit - Baht

U.S. $ 100 = A 20.80

'Z 1000 = uISO $ o.o48

$ 100 mnillion = U.S 0 $ 46,07o7 Foreword

This report is based on findings of an economic mission, which visited Thailand f'rom early July to mid-August, 1971. Its members were:

Mr. David Kochav Chief of Mission Mr. Christian Merat Deputy Chief of Mission Mr. Peter Streng Chief Economist Mr. Jayme Garcia dos Santos Econometrician Mr. Madhusudan Joshi Fiscal Economist Mr. Toshikazu Nasu Economist Mr. George Perazich Industrial Economist Mr. Carl Goderez Industrial Engineer Mr. Klaus Bahr Education Economist Mr. Raif Savas Rural Educator Mr. Kenneth A.. Bohr Urban Economist Mr. James Bogle Town Planner Mr. Kunio KikuLchi Urban Economist Mr. Charles D., Spangler Water Supply Engineer Mr. Eric Greenwood Water Supply Financial Analyst

The report also incorporates major conclusions of the following missions headed by:

Mr. Nathan Kolffsky Agricultural Sector Review Mission Mr. Heinz Vergin Northeast Regional Review Mission Mr. Andrew Hayman Tourism Sector Review Mission Mr. Sei-Young Park Transportation Sector Review Mission

Secretarial assistance for the mission was provided by:

Aurora G. Arceo Pontipa Vachanasvasti Vichitra Tanphiphat Sununta lWipuchanin

Annex 5

TOURISM

TABLE OF CONTENTS

Page No.

I. MAJOR TOURIST AREAS ...... 1

II. THE GROITH AND CHARACTERISTICS OF VISITOR TRAFFIC ...... 2

III. TOURIST FACILITIES ...... 0*..*...... 3

Accommodation Facilities ...... 3 Hotel Construction Costs ...... 4 Sources of Finance ...... **...... ***e**.... 4 Hotel Profitability ...... 09A ...... A*** ...... 5 Other Tourist Facilities ...... see 5

IV. INFRASTRUCTURE ...... 6

Air Transportation ...... 6 Internal Transportation Services ...... 7

V. ORGANIZATION OF THE SECIOR *..***...... 8

The Role of the Public. and Private Sector ...... 8 Personnel Training ...... *...... 9 The Climate for Investment 9 ...... 9

VI. SOME ECONOMIC IMPLICATIONS OF TOURISM 9 ...... 9

VII. FUTURE TOURISM DEVELOPMENT ...... 10

Statistical Tables Table No.

VISITORS TO THAILAND BY NATIONALITt i1965-1970 1

CHARACTERISTICS OF VISITORS TO THAILAND, 1969 AND 1970 ...... 2

VISITORS' AVERAGE LENGTH OF ST'AY, 19681970 3

AMERICAN TROOPS ON REST-AND-RECREATION LEAVE IN THAILAND, 1966-1970 ...... * ..*... *** * ** *** * 4***.

REGIONAL DISTRIBUTION OF HOTEl1 ROOMS IN THAILAND, 1971 ...... 5

FOREIGN EXCHANGE RECEIPTS FROM TOURISM, 1965-1970 ...... 6

Annex 5. TOURISM

1. Thailand's main tourist assets are its exotic image and the reputation of its people for friendliness and hospitality; its historical and cultural sites; its beaches and its favorable climate for beach holidays during the European, North American and Japanese winter months; its accessibility due to its position on world air routes, and its position as a staging point for other countries in the region.

2. The development of tourism in Thailand has, however, been hampered by its distance from the main tourist-generating countries and the relatively high per-mile air fares; by increasing competition from other destinations; and by its proximity to the war-torn areas of Southeast Asia. In addition, the Government of Thailand has been slow in taking measures to solve some problems which have hin- dered the development of tourism, such as the liberalization of immigration and customs procedures and the improvement of tourist services.

I. Major Tourist Areas

3. The areas of major actual and potential tourist interest in Thailand are: Bangkok and its surroundings, Pattaya, Chiengmai, Songkhla Province, and the island of Pukhet,

4. Bangkok was established as the capital of Thailand shortly after the conquest and almost total destruction of Ayutthaya by the Burmese in 1767. With a population of over two million inhabitants, it is now a thriving metropolis and constitutes the main political, economic and cultural center of the country. Bangkok's attractions include many beautiful temples, the Grand Palace, the National Museum, and the world-famous floating and weekend markets.

5. Various day trips are possible from Bangkok, Among these might be mentioned the following: Nakhon Pathom, Thailand's oldest city and site of the largest and oldest pagoda in the country; Ayutthaya, capital of Thailand from 1350 to 1767, with its interesting archaeological ruins, and Lopburi which abounds in remains from many historical periods.

6. Pattaya is located on the Gulf of Thailand about 160 kms south of Bangkok and i-sthe most popular seaside resort for foreigners. Pattaya and the nearby islands offer possibilities for year round water sports, fishing and coral hunting. Annex 5 Pa ge 2

7. Chiengmai is 800 kms north of Bangkok and, because it is located on a plain about 1,000 feet above sea level, enjoys a somewhat cooler and less humid climate. Chiengmai's major attractions are the numerous handicraft vil- lages located in it or nearby, the many local festivals held there, its exqui- site Budhist temples, and the distinct cultural traits of its people.

8. Songkhla is a summer resort in southern Thailand with beautiful beaches. The town is known for its great variety of fruits and excellent seafood. About 26 kms south of Songkhla is Haadyai, one of Thailand's wealthiest cities and the main commercial center of the South. Because of their proximity to the Malaysian border and their accessibility by road, Songkhla, and particlllarly Haadyai, are very popular with visitors from Malaysia and Singapore.

9. The island of Pukhet is located some 920 kms south of Bangkok and offers lovely beaches, as well as boating, fishing and skin-diving possibilities. The waters off Pukhet are crystal clear and contain some of the most beautiful coral in the area.

II. The Growth and Characteristics of Visitor Traffic

10. Statistics on visitor traffic to Thailand are collected by the Tourist Organization of Thailand (TOT) and are based on information provided by visitors on the disembarkation and embarkation cards which they are required to complete upon entry into and departure from the country. A "visitor" is defined as any foreigner coming to Thailand for a stay of more than one night and less than thirty nights whose purpose of visit is leisure or business.

11. These statistics indicate that the total number of visitors to Thailand grew from 225,000 in 1965 to almost 630,000 in 1970, implying an average annual compound rate of growth of approximately 23 percent. This growth rate compares favorably with that experienced by neighboring countries.

12. A detailed breakdown of visitors to Thailand by nationality for the past six years is given in Table 1. The major sources of visitors in 1970 were the U.S.A. (25.3 percent), Malaysia (16.7 percent), Japan (7.5 percent), the United Kingdom (5.9 percent), Australia (4.5 percent) and Germany (4.4 percent). Visitors from the U.S.A. have consistently accounted for the largest share of the total, but their growth rate has been slower than that of visitors from most of the countries as shown in Table 1.

13. The re are some noticeable seasonal variations in visitor arrivals. Visitors arrivals are lowest in the months of January, February, June, September and November. These variations are only partially explained by weather conditions in Thailand. Vacation patterns in the countries of origin of visitors also help account for the fluctuations, as is apparent from an examination of monthly arrival figures for individual national groups. In addition, since Thailand is usually only one of several countries visited, local conditions in one of the other countries can also help determine the timing of visits to Thailand. Annex 5 Page 3

14. Late in 1968, the TOT began to publish periodic summaries of visitor profiles which not only indicate their distribution by nationality but provide information on their age, sex, occupation, type of accommodation used, purpose of visit,etc. These are shown in Table 2 for thoseyears for which they are available.

15. The average length of stay of visitors is approximately five days and does not vary widely by nat:Lonal group, as is evident from Table 3. Data on visitor itineraries within Thailand are not available, but on the basis of discussions with travel agents, tour operators and hotel managers, the mission estimates that overseas visitors spend at least two to three days in Bangkok and the balance, if any, in other tourist centers, such as Pattaya and Chiengmai. Vi- sitors fraom Malaysia and Singapore usually confine their stay to Haadyai and Songkhla.

16. A number of surveys on average daily expenditures of visitors have been conducted by the TOT in collaboration with the National Statistical Office. The latest survey revealed that visitors spend an average of about US/30 per day. Of this total, about one half is spent on accommodation and food, 1 percent on sightseeing tours. and 28 percent on shopping.

17. American troops on rest-and-recreation leave have also come to Thailalnd in substantial numbers beginning in 1966. However, with the withdrawal of American troops from Southeast Asia, their number has declined and can be expected to continue to do so. In 1970, the number of American troops who came t;o Thailand on rest-and-recreation leave was 44,000, representing a decrease of about 40 percent over the previous year. Table 4 shows the evolution of their numbers since 1966.

III. Tourist Facilities

Accommodation 'Facilities

18. The hotel industry has been one of the fastest growing in Thailand in recent years. In 1970, there were approximately 80 hotels with about 10,000 rooms in all of Thailand,which might be considered suitable for foreign visitors, as compared with some 15 hotels with a total of less than 1,000 rooms in 1960. Most of the growth in capacity took place between 1964 and 1968, in response to the growth in visitor traffic and to the incentives provided by the Government to encourage private investment in hotel construction.

19. Of total accommodation facilities, more than four-fifth are located in Bangkok. I'able 5 provides a regional breakdown of existing capacity. No hotel classification system exists in Thailand. However, of all the rooms available in Bangkok, about 3,000 can probably meet the standards usually required of high class hotels in other countries. The rest are not as well-appointed, but most can be considered adequate for foreign visitor demand. Elsewhere in the country, the quality of accommodation facilities is more modest. Annex 5 Page b

20. The Government of Thailand owns the 15-year-old 200 room Erawan Hotel, two smaller hotels at Bansaen and Khao Yais and a golf course. The Erawan is operated by Syndicate of Thai Hotels and Tourist Enterprises, while the operation of the other facilities is entrusted to TOTo However, hotels in Thailand are predominantly owned and operated by the private sector.

21. Many hotels are managed by expatriates. Some of the leading hotels in Bangkok are operated by American hotel chains (Intercontinental Hotel Corp., Hilton International Hotel Co., Western International Hotels Inc., and Sheraton International Inc.). Management is on the whole good, and well qualified Thais are to be found at all levels.

22. Rates charged by hotels are quite high, but they are difficult to ascertain with any precision because of the growing practice of rate-cutting used by some managers to attract more guests. Published rates may not necessarily correspond to actual rates charged, but they are at least indicative of the maxi- mum cost of accommodation. A single room in a first-class hotel in Bangkok may cost anywhere from US$15 to US$20. In second-class hotels, the cost ranges from US$10 to US$15. Elsewhere in the country, a single costs from uJS$5 to US$11, depending on the type of accommodation.

23. The number of people directly employed in existing hotel establishments in Thailand is not known exactly. On the basis of average employee-to-room ratios obtained for certain hotels, the mission estimates that some 209000 people are employed in hotels. Employee-to-room ratios, which range from 1.6:1 to 3.2:1, are high by international standards, but the resulting service is often excellent. Staff turnover is not very significant in the better hotels, as they generally pay more and provide more fringe benefits, but in lower-standard hotels, managers try to bid trained personnel away from one another, and the turnover there is high.

Hotel Construction Costs

24. Hotel construction costs in Thailand are generally low. In the case of first-class hotels, the costs of construction range from the equivalent of US$12,000 to US$20,000 per room, depending on the time of construction, the lo- cation, the size and the type of the establishment. In lower-class hotels, the cost per room is anywhere from US$7,500 to US$11,000, These costs are exclusive of land acquisition which is very expensive and may add from 20 to 30 percent. In some cases, the land is only leased and not bought outright.

Sources of Finance

25. Thailand's hotel industry is largely in private hands and its develop- ment has relied mainly on private initiative and capital. The Government has, however, provided some significant incentives to encourage hotel construction (see paras below). Hotel investors have financed their ventures primarily with Annex 5 Page 5

equity capital and loans from the local banks. A few investors have sought and obtained assistance from foreign sources which have often provided financing on softer and longer terms than local banks.

26. Local commercial banks usually provide loans on a short-term basis (6-12 months with the possibility of roll-over) carrying interest rates ranging from 7 to 14 percent per annum (7-11 percent for "call money", 12 percent for loans to industrial enterprises against collateral of immovables and movables, and 14 percent for other types of loans). The Industrial Finance Corporation of Thailand (IFCT) provides loan funds for longer periods with slightly lower interest rates (9.5 percent per annum for foreign currency loans and 10.5 percent per annum for local currency loans), but although IFCT has lent money for hotel construction in the past, hotels are now on the list of industries temporarily excluded from IFCT financing because of sufficient capacity.

Hotel Profitability

27. 'While reliable data on occupancy rates are not available, it is appa- rent from discussions with hotel managers and others involved in the tourist industry that the existing capacity is in excess of demand, and this is parti- cularly true of Bangkok and Chiengmai. This impression is corroborated by the following : first the temporary suspension in June 1970 of the promotional privileges accorded to hotel investors by Thailand's Board of Investment, second- ly by the various measures resorted to by some hotel managers to attract more guests (e.g., rate-cutting and/or payment of commissions to taxi drivers who bring in guests). The mission has also made tentative calculations of possible occupancy rates in all hote:Ls in Bangkok based on the proportion of visitors who stayed in hotels in 1970 (85 percent), an average length of stay of about three nights per visitor, and a double occupancy factor of 1.7. These calculations suggest an average rate of occupancy of approximately 35 percent for all Bangkok hotels. The problem of excess capacity is exacerbated by the decline in the numbers of U.S. troops coming to Thailand on rest-and-recreation leave, which forced those hotels which catered primarily or exclusively to them to enter the general tourist market.

Other Tourist Facilities

28. For variety and quality the food in Thailand is hard to match in South- east Asia. Restaurants serving all types of food abound in Bangkok and other large cities. The choice is somewhat more limited, but still quite impressive, elsewhere in the country.

29. Thai handicrafts'include jewelry, silk, silver and bronze ware, anti- ques, lacquerware and carved wood and are cheap. Their quality is generally good, and shopping facilities are quite well-developed. A 1967 survey of visitors to the Pacific revealed a noticeably favourable reaction to Thailand's shopping opportunities. Annex 5 Page 6

30. Guide service in Thailand is poor. The TOT in cooperation with Chulalongkorn University,offers a guide course, but the main emphasis of the course is historical. In addition, the language proficiency of the trained guides is usually inadequate. Books and the few existing signs describing tourist attractions are generally available in only one foreign language, English. Road signs are in Thai only, but good maps can be purchased at most large gasoline stations.

IV. Infrastructure

Air Transportation

31. At present, the only operational international airport in Thailand is Don Muang International Airport, some twenty miles from the center of Bangkok, used by thirty international lines. Its facilities are presently being expanded and improved in order to cope with increasing traffic, and this work shouild be completed some time next year. The airport is the property of the Royal Air Force, and one of the two existing runways is used for their aircraft.

32. The airport can accommodate aircraft of the Boeing-7h7 type, and some of the foreign carriers operating there were envisaging the introduction of B-747's to Bangkok by November 1971. One European tour operator was contemplating using B-747's for his chartered flights to Bangkok.

33. The Civil Aviation Department is giving serious consideration to the construction of a second international airport near Bangkok, and has already acquired land for this purpose at Nang Ngoo Hao, some fifteen miles south of Bangkok. Assistance is being sought for a study of the desirability and feasi- bility of such an airport.

34. Chiengmai has an airport capable of receiving aircraft of the B-727 and DC-9 types, and has already been declared an international airport. However, no foreign airlines has so far applied for permission to land there. An airport is presently under construction in Haadyai. This airport is scheduled to begin operation by the beginning of 1972 and will be equipped to handle every kind of aircraft up to B-747's. Aside from these three airports, Thailand has a number of small airports which can accommodate DC-4's or Avros. 35. There are three airlines in Thailand: Thai Airways Company (TAC) which provides internal services, and operates and maintains a number of airports in the country; Thai International Airways (THAI) which links Bangkok with a number of points in Asia; Air Siam which in March 1971 started flying to Los Angeles from Bangkok and is presently seeking permission to fly to London. TAC is state-owned Annex 5 Page 7

and operates five routes from Bangkok (Chiengmai, Songkhla, Pukhet, Penang, and Vientiane). TAC has 7 Avros (with a oapacity of 44 passengers per plane) and 5 DC-3's (with a capacity of 28 passengers each). THAI is a joint venture of TAC and the Scandinavian Airlines System (SAS), which own 70 percent and 30 per- cent respectively of the share capital. THAI has been in operation for 12 years and operates a number of services to major cities in Asia. It leases its air- craft from SAS, which also provides it with technical assistance, and until recently had wide executive power in running the airline. Air Siam is privately owned and has only recently been established, wet-leasing aircraft from Overseas National Airways.

36. A number of present practices or intentions appear to be unpalatable to foreign airlines flying into and out of Bangkok, and could have an adverse effect on the development of tourism, examples are:

(i) the fifth-freedom restrictions imposed on foreign airlines, which may lead to a diversion of traffic away from Thailand; (ii) the practice of charging airlines which land or take-off during off-hours a certain fee for every passenger to cover the overtime of immigration personnel.

Internal Transportation Servicee 37. Internal transportation services in Thailand are generally adequate. The improvement of Thailand's highway system in the past decade has increased the opportunities for private car and bus tourism, both domestic and foreign, in the country. Good highways link Bangkok with major cities and towns in Thailand. Bus services are cheap, frequent, punctual and of fairly good standard. A number of car rental agencies also exist. There are good railway connections between most points of tourist interest in Thailand, and trains are comfortable,and punc- tual ,but slow.

38. The increasing traffic congestion of Bangkok is becoming an acute problem. Getting around in Bangkok is thus very time-consuming. Buses are oheap, but not very comfortable. Taxis are required to have meters but few taxi drivers choose to use them. Transport from the airport to the center of Bangkok is in the hands of TAC which in turn sub-oontracts it to a local transport company, National Travel Services; the fee charged is quite low (US$1.00 equivalent). Taxis are theoreti- cally though not practically barred from pioking up disembarking passengers, and often try to charge outrageQus prices. Annex 5 Page T

Other Infrastructure

39. There is no sewerage system in Thailand. Most hotels have their own sewage disposal system and these are, on the whole, well-maintained, but great care has to be exercised to ensure that they continue to be so. Water supply is generally not a problem except for large users, but water purification is an additional cost which must be borne by the hotels. Electric power supplies are sufficient.

V. Organization of the Sector

The Role of the Public and Private Sectors

40. At the Government level, the responsibility for the development of the tourist sector rests primarily with the Tourist Organization of Thailand (TOT), which is a department within the Prime Ministergs Office. TOT has a staff of approximately 180 persons. TOT's activities in recent years has centered on : (i) the collection of statistics, (ii) overseas promotion, and (iii) management of three government-owned tourist enterprises (two hotels and a golf course). Whether TOT should be engaged in the management of tourist enterprises is debatable, but it is clear that TOT has discharged its first two functions relatively well, given the low budget put at its disposal. On a broader basis, while TOT can and does suggest corrective actions to deal with the problems of the sector, it lacks the power to ensure that such actions are taken by the various government departments concerned.

41. A Tourism Promotion Board under the chairmanship of the Minister of Foreign Affairs and composed of the heads of relevant government departments has been nominated to oversee developments in the sector and to coordinate govern- 0 ment actions which have a bearing on tourism. The Board s activities have been fairly limited so far.

42. In addition to these goverznmental organizations, a number of associ- ations exist at the national level. The most active among these are - the Association of Thai Travel Agents, which has more than forty members, and the Thai Hotel Association, which has over thirty members. A new organization is in the process of formation, namely the Thailand Tourist Industry Association, which will group hotels, restaurants, airlines, travel agencies, souvenir shops and banks. The purpose of this association will be to secure greater coordina- tion of activities of the private sector in the field of tourism.

43. Promotional activities are undertaken by TOT. The total budget allocated by TOT for promotion only was about 6.35 million baht (US$305,000) in 1971. Agreement has been reached on raising the TOTOs total budget for next year to 25 million baht (US$1.2 million) which will allow offices to be opened in Tokyo and Frankfurt. Thai International, with SAS, has built up a sophisti- cated marketing function, but this serves their route network as a whole, and not Thailand exclusively. In addition, private organizations undertake their own promotion, but the level of their expenditures is not known. No overall Annex 5 Page 9

promotion strategy exists which could serve as a basis for coordinating the efforts of these organizations, and this has caused some duplication and waste.

Personnel Training 4;4. , No facilities exist for the''training of hotel personnel, other than the in-house training programs of individdual hotels. A few schools do offer courses in hostelry and catering, but hotel managers generally regard the training acquired at these schools as inadequate and most of them prefer to train their staff them- selves. Senior management in most of the better hotels is largely foreign. The Climate for Investment 45. In the past few years, the Government has provided various incentives to private investors for building hotels of-a high standard. These inaentives have included exemption from import duties on construction materials and equip- ment and from taxes on income derived: from sales for five fiscal years after the start of operation /. In order to qualify for these privileges, a hotel must be first-class; its design and equipment must be approved by the Board of Investment; and its management and operation must be of the standard required of first-class hotels in other countries. The size Of the hotel must be not less than 400 rooms if it is located in Bangkok; 80 rooms if it is located in another municipality; and 60 rooms if it is located elsewhere. Thus far, 24 hotels in Bangkok and 36 hotels in the provinces have qualified for, and received these promotional privi- leges. In July 1970, the Board of Investment decided on a temporary suspension of these privileges for hotels in Bangkok due to overcapacity.

VI, Some Economic Impl±cations of Tourism 46. Data on foreign exchange earningsi derived by Thailand from tourism are uncertain. Two estimates are available, one made by the Bank of Thailand (BOT) and the other by TOT. The Bank of Thailand Is figures, which are included in the official balance of payments, come from the| Bbcchange Control Record and cover only transactions made through commercial banks,! and may therefore understate actual receipts. TOT's figures are derived by multiplying the' number of visitors by their estimated average daily expenditure and average length of stay. Table 6 shows these two estimates. The possibility of reconciling these figures is still under consideration by the TOT and BOT. j/ The corporate income tax schedule is simple and not very onerous:

- 15% on the first 500,000 .baht (US$25,0OO) profit - 20% on the second 500,000 baht profit - 25% on profits over one million baht. Ann-) PagfCe 1]0

47. Regardless of the oGtizate iwad, it is clear that foreign exchamge earnings derived from tourism are quite significant. On the basis of the ''OT figures, tourism in 1970 ranked third as a foreign exchange earner after rice (Ust12l million equivalent) and rubber (US$107 mlllion equivalent), while on the basis of BOT figures, tourism ranked fifth. The impact of tourist expenditures on domestic income generation is high in view of their relatively low import content. Data on amployment generated by the tourist industry are difficult to obtain, but on the basis of average employee-to-room ratios, approximately 20,000 people would be directly employed by the hotel industry. A few thousand more are engaged in the travel trade, restaurants, and the production and sale of souvenirs.

VII.eour.am Future Devolg2mnt

48. Planning for tourism i's done bv the TOT in collaboration with the National Economic Development Board (NEDB). Cooperation between the two agencies has however been limited0 It is expected that the number of tourist arrivals will increase to about 1.06 million in 1976, but policies and programs, which might be necessaiy to brig this about, have not been discussed and agreed upon.

49. Targets for foreign tourist arrivals appear realistic in light of past performance and likely prospects. Given well-conceived policies for tourism development, and in the absence of any major political problems, these targets should be attainable and might be exceeded. The market prospects for American visitor traffic are good, given the trend of increase in disposal income and in leisure time. Even more promising are the market prospects for European and Japanese visitor traffic. Thk numbars of visitors from these areas have experienced the highest growth rates in recent years, and there is no reason to expect that they will not continue to grow at a fast rate. Visitors from Malaysia and other neighboring countries have also increased substantially and rapidly with improved catmunications between these countries and Thailand, and constitute an important potential market. Finally, there is the possibility of increased domestic travwl by Thais themselves,

50. The trend towards group travel is so well established, particularly to distant destinations, that the needs of the major tour operators are likely to become increasingly dominant and d3manding. Thailand will not be included in their programs as a matter of course. The private sector in Thailand is however sensitively attuned to changes in the mar2mt, and is likely to be creative in developing new types of holiday package. In this it will need the support of TOT's marketing program, which should be based on an objective t assessment of the strengths and weaknesses of Thailand's product". The appeal of well organized ddty-free shopping facilities is clearly very strong, and one that Thailand should develop. Annex 5 Page 11

51. It is likely that Thailand can attract more groups willing to spend much longer in the country than the present average of five days. There are already some inclusive holidays available allowing two or more weeks in the country. If such holidays mainly appeal to people who have already seen the Far East quickly once, Thailand needs to send its short-stay visitors away satisfied : this again underlines the importance of dealing with the problems discussed above.

52. Little new investment in accommodation facilities seems to be required in the next three to four years in Bangkok. The mission believes that emphasis in the next few years ought to be put on the promotion of the two or three existing tourist centers (Bangkok, Pattaya and, to a lesser extend Chiengmai).

53. Studies of the growth of demand in Thailand's main markets should be put in hand. It is likely that such studies might indicate that Thailand should in future conrsider developing a new type of tourist facility, such as a large scale resort complex on the beach. Such a resort would offer a range of hotels supported by planned infrastructure, sport and recreation facilities, with staff housing and other services. By planning and administering the resort as a whole, rather than permitting piecemeal development, better use of resources and some economies of scale would be achieved. A project of this sort would be unlikely to be viable with less than 2,000 beds in the first phase; consequently Govern- ment involvement would be decisive. Detailed studies of these possibilities might be started say, by 1974. As these resorts are planned, assistance may be sought from the BankJ Group for the necessary infrastructure works. It would therefore be important to ensure that when studies of new tourist resorts are undertaken they are done along lines the Bank requires in order to be able to consider providing financial assistance for their implementation.

Annex 5

Table 1: Visitors to Thail Na

Average Annual Growth Rates (%)

Nationality 1965 1966 1967 1968 1969 1970 1965-69 1965-70

America 81,292 93,599 90,078 111,779 145,315 180,149 15.7 17.3 of which, U.S.A. 78,297 90,300 84,986 103,592 133,327 159,216 14.2 15.3

Europe 46,629 45,659 64,242 82,845 103,680 141,785 22.0 25.0 of which, 1nited Kingdom 20,296 18,370 22,165 26,434 31,331 36,979 11.5 12.8 Gennany 7,385 7,978 11,654 15,084 20,190 28,023 29.0 30.0 France 6,679 7,770 9,823 10,443 12,725 21,059 17.5 26.0 Switzerland 2,852 4,050 5,653 7,372 8,143 12,805 30.0 35.0 Italy 2,437 2,727 3,495 4,537 6,188 11,031 26.0 35.0

Pacific and Asia 61,162 67,768 87,722 97,533 121,753 152,250 18.8 20.1 of which, Japan 17,296 14,935 24,124 31,548 43,872 46,952 25.0 22.0 Australia 10,082 9,045 11,380 17,394 22,247 28,185 22.0 23.0 India 4,992 5,392 7,181 9,961 11,957 21,111 24.0 33.0 China 4,916 8,125 10,148 12,650 14,642 16,963 31.0 28.0

Neighboring countries - 35,405 78,006 91,562 79,406 91,469 143,305 26.7 32.0 of which, Malaysia 18,446 38,821 46,712 47,235 59,621 105,029/ 34.0 42.0 Laos 15,613 22,822 35,690 18,302 16,022 20,155 0.6 5.3

Africa and Middle East 537 85 2,241 5,699 7,567 11,182 94.0 83.0

GRAND TOTAL 225,025 285,117 335,845 377,262 469,784 628,671 b/ 20.0 23.0 Index (1965=100) 100.0 126.7 149.3 167.7 208.8 279.4

a/ Burma, Cambodia, Laos, Malaysia, Singapore and Vietnam. b/ The sharp rise in the total number of visitors in 1970 is accounted for by the opening of Expo'70 in Osaka, Japan. Many of the fairgoers probably stopped in Thailand on their way to or from Osaka. c/ The main cause for the sudden and substantial increase in the number of visitors from Malaysia in 1970 is the improvement of road and rail connections between the two countries.

Source : Tourist Organization of Thailand; and mission estimates. Annex 5

Table 2: Characteristics of Visitors to Thailand, 1969 and 1970-

(Percent of Total) 1969 1970 Method of Transportation Used Air 78 76 Land 21 22 Sea 1 2

Sex Male 65 66 Female 35 34

Age (in years) Under 15 3 4 15-25 14 16 26-35 23 26 36-45 23 22 46-55 20 19 56-65 12 10 Over 65 5 3

Occupation EmnDloyee 24 26 Housewife 1l 12 Government Official 11 10 Professional Career 12 7 Commerce 11 9 Student 4 4 Engineer and Technician 2 5 Professor and Teacher 3 2 Other 19 25

Type of Accommodation Used Hotel 83 85 Friendts Home 8 7 Other 9 8

Purpose of Visit Holiday 71 72 Business 21 20 Other 8 8

Permanent Address U.S.A. 37 27 Japan 11 11 Australia 6 6 Germany 5 6 United Kingdom 5 6 France 1 3 India 1 3 Other 34 38

l/The figures in this table are based on a 10 percent sample of arrivals for each month of the year.

Source: Tourist Organization of Thailand and mission estimates. Annex 5

Table 3: Visitors' Average Length of Stay, 1968-1970 (in days)

Countries of Nationality 1968 1969 1970

America U.S.A. 4.22 4.61 5.45 Europe France 3.91 4.25 3.88 Germany 4.20 5.03 4.81 Italy 4.01 4.33 4.44 Sw!itzerland 4.39 5.20 4.90 U.K. 4.07 5.23 5.20

Africa 3.29 3.53 3.87 Middle East 3.18 4.59 3.88

Pacific and Asia Au2stralia 3.46 4.11 4.17 China 5.01 5.90 6.31 India 4.39 4.83 4.82 Japan 3.83 4.72 4.85

Others 4.69 4.31 4.09 Neiglaboring Countries Laos 5.73 4.56 3.40 M.alaysia 4.10 4.16 5.31

Overall Average 4.23 4.88 4,82

Source: Tourist Organization of Thailand. Annex 5

Table 4: American Troops on Rest°and-Recreation Leave in Thailand2 1966=1970

Years Arrivals 1966 33s,000 1967 54,000 1968 69,070 1969 70,737 1970 449287

Source: Tourist Organization of Thailand.

l'able 5: negional Distribution of Hotel Rooms in Thailand, 1971

Bangkok 9,200 Pattaya 400 Chiengmai 250 Songkhla 200 Pukhet 100 Other 500

TOTAL 109650

Source: Tourist Organization of Thailand. Annex 5

Tatble 6: Foreign Exchange Receipts from Tourism, 1965-1970

Bank of Thailand Tourist Organization

Year Total R&R / Total R&R

1965 359 - 506 - 1966 832 136 754 136 1967 1,212 216 952 216 1968 1,256 405 1,220 408 1969 1,318 459 1,770 441 1970 1,588I 395 2,175 375

Source: Bank of Thiailand; Tourist Organization of Thailand.

Annex 6. EDUCATION

TABLE OF CONTE1TS

Page No.

I. The Education System 1

Structure 1 Aelmi nistration 1 Planning 2 ELementary IEducation 2 General Secondary Education 3 Teacher Tra:ining 4 Higher Education 5 Vocational and Technical Education 5 Agricultural Education 6 Other Vocational Training 8 Educational Finance 9

II. Educational Policy in the Third Plan 11

III. Problem Areas 14

General 14 Management of Education 14 Structure 16 Curricula 16 Educational Technology 17 Inefficiencies 18

IV. Supplementary Educational Developnent Measures 19

Primary Education 19 Secondary Education 20 Higher Education 20 Planning and Administration 20

V. Project Proposals for External Assistance 22

Charts

Tables

Annex 6 Page 1

I. THE EDUCATION SYSTEM

Structure

1. Tle education system has a basic 4-3-3-2 structure: The first seven years comprise the lower and upper elementary levels and the last five provide lower and upper secondary courses. The upper secondary vocational education program lasts three years. Higher education includes two and three year diploma level programs for teachers and technicians and undergraduate programs, one-year and two-year post-graduate courses at uni- versities. Compulsory education begins at the age of seven and includes the first four years. It is now gradually being extended to seven years. Private schools account for approximately 14 percent of the elementary level and 48 percent of the secondary level enrollments in 1970. There are six private colleges.

Administration

2. Administrative res1ponsibilities are divided within ministries, between various ministries and central and local authorities (Chart 2). The Ministry of Interior is responsible for elementary education, but the Ministry of Education retains responsibility for the technical and pedagogi- cal aspects of elementary education, as well as control of some 400 experi- mental schools of a total of almost 30,000 elementary schools. It also ad- ministers secondary and adult general education, as well as technical insti- tutes and the College of Education at the post-secondary level. Industrial skill training programs are offered by the Department of Labor of the Ministry of Interior. A National Youth Promotion Committee was recently established under the Office of the Prime Minister to develop and coordinate rural youth development programs. The Ministry of Agriculture organizes agricultural training courses.

3. W1ithin the Ministry of Education, responsibilities are split amongst various departments, which are largely autonomous in planning, development, and administration of the respective types and levels of education. They prepare annual budgets and negotiate directly with the Budget Bureau, engage in school planning and construction and curriculum development largely inde- pendent of each other.

4. Each of the 12 educational regions and 71 provinces has an education officer. The regional officers serve as supervisory agents of the Ministry of Education, but have no administrative authority. The provincial education officers are appointed by the Ministry of Education, but serve under a Pro- vincial Governor who is responsible to the Minister of Interior. They super- vise the development and adninistration of elementary education and assist in the supervision of secondary education. Each province is divided into districts, which have district education officers responsible to the Pro- vincial Education Officer.

5. The universities exercise considerable autonomy and are only nominally subject to control by various agencies, such as the Office of the Prime Minister, to which all universities are formally responsible. The National FEucation Council (NEC) approves organizational and curricula Annex 6 Page 2 changes. Although NEC is also responsible for the review of university budgets, the universities and often individual faculties negotiate directly with sources of funds. The University Civil Service Commission (UCSC) re- views and approves appointments, promotions and transfers.

Planning

6. Educational planning is still at an early stage. The National Education Council (NEC), under the Office of the Prime Minister, is respon- sible for national education planning. NEDB also plays an important role in educational planning, as it is responsible for the preparation of all national development plans and its Executive Committee must approve the final education plan. In preparing the education chapter of the Third Plan (1972-1976), NEC has had the ad hoc cooperation of the Educational Planning Office (EPO) in the Ministry of Education and of NEDB. However, continuous educational planning as a basis for policy decisions and budget allocations does not yet exist.

Elementary Education

7. In 1970, about 4,730,000 students were in the lower elementary level (grades 1-4) and 925,000 in upper elementary (grades 5-7). The majo- rity of the school age population received only a four-year education, al- though an increasing proportion were passing to the fifth grade (1955-56: 18.8 percent; 1968-69: 35.5 percent).

8. This national average covered large differences among regions. For example, the pass rate from grade 4 to grade 5 was about 85 percent in Bargkok and only about 15 percent in the Northeast region. While first grade entrants increased very little over the past 10 years, the number of those passing in grades 2-4 showed increases between 60 percent and 90 percent. Nationally, it appears that over 95 percent of the 7-year age-group entered the first grade but, in fact, only about 50 percent were of that age, with 30 percent being younger and 20 percent 8 years of age or older.

9. Repeater rates in grades 1-4 have been decreasing in the past few years but are still significant. In 1961, 32 percent of the first grade were repeaters; by 1969 the proportion had dropped to 23 percent. Similar declines took place at the other grade levels. A study of repeaters in 1965 indicated that 50 percent were in the first grade, 25 percent in the second, 18 percent in the third and 7 percent in the fourth; thus 75 percent of repeating in the lower elementary cycle occurred in the first two grades.

10. Primary education suffers from a severe shortage of teachers, classrooms and teaching materials, including textbooks; currently, about 15 percent of the classes have no teacher at all. About 50 percent of the teach- ers are unqualified. Although great efforts have been made since 1966 to increase teacher training, more effort is needed if full primary education (grades 1-7) is to be extended to the entire age group. Annex 6 Page 3

11. At present, less than 600 out of a total of 4,300 local communities offer upper primary education (grades 5-7). It is estimated that about 80 percent of the children in rural schools do not possess the necessary text- books and other school materials and as many as 30 percent of the teachers may not have a syllabus or curriculum from which to work.

12. The progression rate from primary (grade 7) to secondary education (grade 8) was almost 90 percent in the beginning of the decade and was still 85 percent in 1969, indicating that upper primary education (grades 5-7) is not terminal. Since the drop-out rate over this cycle is about 30 percent, about 70 percent of all students continuing education beyond lower primary (grade 4) receive secondary education.

13. Generally speaking, primary education is very uneven. Urban schools are more efficient, offering relatively good basic education to a large per- centage of the relevant age group, whereas children in riral areas, and par- ticularly in the Northeast, find quality and availability of education very limited. Thie figures suggest that primary education does not yet provide the school-age populaticn with a broad, basic and lasting education leading to sustained literacy and therefore enabling full participation in and active contribution to social and economic development. General Secondary Education

14. In 1970, 445,500 students attended lower secondary schools and 59,700 the upper secondary schools (grades 11-12). Almost fifty percent in both cases were in private schools. The regional distribution of enroll- ments is more uneven in secondary than in primary education. Bangkok had about 40 secondary students per 1,000 inhabitants whereas the Northeast had 5 and the other regions 10. Most secondary school teachers are qualified.

15. Progression rates from lower to upper secondary general education (including teacher training) have slightly decreased from about 62 percent in 1965 to 60 percent in 1969. At the same time, enrollments in vocational schools increased rapidly so that overall progression from lower to all types of upper secondary school increased from 73.7 percent to 76.4 percent during the same period. Between 1965 and 1970 an average of 80 percent of secondary school leavers went on to universities.

16. About 30 percent to 40 percent of students who enter secondary schools (at grade 8) drop out. These students, as well as those terminating at the end of lower or upper secondary education, are ill-prepared to enter the labor market because of the academic character of the curricula and ob- solete teaching methods. In an attempt to remedy this situation and to pro- vide education better suited to local environment, comprehensive secondary schools and schools offering diversified curricula including agricultural and other practical courses are being established and have a present enroll- ment of about 20,000. There are two types of comprehensive school.. Type I-schools offer a general education curriculum and a choice of electives outside of the regular curriculum constitutes the comprehensive character Annex 6 Page 4 of the schools. Type II-schools, primarily intended for rural areas, offer a complete general education curriculum and include practical arts in one stream and vocational agriculture in a second stream.

17. The comprehensive schools do not have enough qualified teachers for special subjects, as well as materials for adequate teaching and practical work. Curricula are not integrated to provide for comprehensive operation. Perhaps the most serious shortfall is the parallel development of three dif- ferent types of general secondary education, which are at the same level but lead students to only nominaIly equivalent final qualifications. These, in fact, widen the discrepancies between rural and urban education opportunities in terms of quality of education and further education opportunities. Hence, parents prefer to send their children to general academic schools in urban areas, leaving the comprehensive schools in rural areas with a less able group of students. Fhrthermore, because of the severe financial constraints for education generally and the very high unit cost of comprehensive schools (each comprehensive school place costs about as much as five upper primary school places), improvement of the comprehensive system could be obtained only at the expense of limiting developments urgently required in other sec- tions of the education system (for instance, in primary education).

18. Generally speaking, general secondary education has grown at high rates since 1965, in terms of enrollments, teachers and expenditure. However, the growth was unevenly distributed between the regions, the highly selective character of curricula and examinations remained, and contents and teaching methods continued to be exclusively university rather than labor market ori- ented.

Teacher Training

19. Teacher training is the fastest growing section of the education system. Enrollments increased by about 20 percent annually to 44,000 during 1965-70. The increase in 1971 was particularly high, when 65,000 were en- rolled.

20. In 25 teachers' colleges, the College of Education (with seven branches in various parts of the country) and at five university faculties, courses for four levels of teacher training are offered: (i) lower certifi- cate level (grades 11-12) for elementary school teachers; (ii) diploma or higher certificate level (grades 13-14) for elementary and lower secondary school teachers; (iii) degree level (grades 13-16) for teachers in elementary, secondary and higher education institutions; and (iv) grade and post-graduate level. In addition there are evening (32,000 students in 1970) and correspond- ence courses. Altogether, there are 38 different ways to become a teacher in general education and 9 ways to become a vocational school teacher. The quality of many courses, including regular courses, is low and although the shortage of teachers may diminish, the low levels of actual (as opposed to formal) qualification are likely to persist for some years until curricula and training methods have been substantially improved. Fhrthermore, the Annex 6 Pag e5 better teachers find employment in urban areas, leaving village schools with the least qualified teachers. In 1970, about 7 percent of teachers held a degree, about 20 percent a diploma, 51 percent the lower certificate and 22 percent had no proper certification.

21. Teachers in technical, agricultural and industrial arts education are trained in special institutions and at universities. A growing number of graduates prefer well paid private employment to a teaching post and those who become teachers are not always well prepared because of the lack of practi- cal training, particularly in the agricultural teacher training.

Higher Education

22. In 1970, the eight universities and the National Institute for Develop- ment Administration, operating under the Prime Minister's Office, had a total enrollment of 41,000. Whereas overall enrollment growth has been slow (2.5 percent annually) over the past five years, the faculties of engineering, science, medLicine and agriculture increased at 13.5 percent per year on average. There were eight other institutes of higher learning, including the College of Education under the Ministry of Education, military and police academies and the Asian Institute of Technology, -which is a regional establish- ment. In 1971, an open university was established, with an initial enrollment of 40,000 (riot counted in the above figures). Sixteen of the 19 higher edu- cation institutions are located in Bangkok but the College of Education has several branches in other parts of the country. The three regional universi- ties account for less than 15 percent of total university enrollments; and more than one-half of their students come from the Bangkok area.

23. Quality of university education varies widely, mainly due to the severe shortage of teaching staff with Master or Ph. D. degrees. This, in turn, is due to a lack of graduate and post-graduate study facilities. Curri- cula in such fields as agriculture, engineering and science are not sufficiently adapted to the specific needs of Thailand.

Vocational and Technical Education

24. Vocational and technical education courses are offered in upper vocational schools (grades 11-13) and technical institutes (grades 13/14-15). Wtith the introduction of comprehensive schools, lower vocational schools (grades 8-10) are being phased out. Total enrollments increased rapidly at almost 10 percent per year from 37,000 in 1965 to 58,000 in 1970; upper vo- cational schools accounted Jor the largest number (about 49,000 in 1970). Fifty- three percenlt of the students were enrolled in trade and industry schools, 18 percent in commercial courses, 18 percent in agricultural schools and 11 per- cent in home economics courses.

25. The schools are located in various parts of the country and concen- tration in uirban areas is less serious than in the case of general secondary schools. Curricula and training methods are being revised, modernized and adapted to meet the needs of Thailand's industry and agriculture. This is Annex 6 Page 6 particularly true of the schools where faculties and equipment were in part financed by IBRD loan 471-TH. Most other schools suffer from inadequate faci- lities and equipment. The shortage of qualified teachers and instructors will be alleviated when the technical and agricultural teacher training colleges included under the IBRD loan operate at full capacity, provided, however, that the movement of competent teachers to the private sector is halted.

Agricultural Education

26. Since agriculture and forestry are one of the economy's largest sectors and since about 80 percent of Thailand's total population live in rural areas, agricultural education and training should play a crucial role in the development of the country.

27. There is no comprehensive or consistent concept of rural manpower resource development to guide the various ministries and agencies engaged in agricultural education and training. Formal agricultural education, which comes under the responsibility of the Ministry of Education for primary and secondary schools and the Prime Minister's Office or NEC for university level institutions, generally lacks sufficient orientation towards agricultural em- ployment and rural living. Perhaps most important, there is no machinery for effective planning, coordination and cooperation within the Ministry of Edu- cation and between the Ministry and NEC and the Ministries of Agriculture, National Development, Interior and other agencies undertaking agricultural training or depending for the implementation of their programs on agricultural- ly trained manpower.

28. Elementary schools conduct agricultural pre-vocational activities at the upper level (grades 5-7). Primary school teachers receive some agricul- tural training in teacher training colleges and some agricultural equipment has been provided by UtICEF to primary schools. The type II-comprehensive schools offer nine hours per week of agricultural sources in one of the two streams. Graduates usually continue their studies, particularly in vocational agricul- ture schools; some enter employment, particularly self-employment, in agricul- ture. Ninth-grade students of comprehensive type-I schools have a choice bet- ween two periods weekly of agriculture or business education. Eleventh and twelfth grade students in many of these schools may choose agriculture as an elective. Agriculture is also offered as an elective subject in a number of other rural secondary schools, some of which have received teaching aids and equipment from UNICEF.

29. There are 26 secondary vocational agricultural schools of which 23 offer a 3-year certificate course (grades 11-13) and three 2-year diploma course (grades 14-15) to certificate holders. In addition, there is one ag- ricultural teacher training college at diploma level and two agricultural schools offering a 3-year course (grades 8-10) for young farmers. Enrollment in vocational agricultural schools had reached 7,770 in 1970 (or 13% of total upper secondary enrollments). Three universities (Kasetsart, Khonkaen and Chiengmai) have agricultural and related faculties with a total enrollment of 3,200 in 1970. Annex 6 Page 7

30. Less than 30 percent of all agricultural students are from farmer families. Graduates from all levels of agricultural education primarily seek government employment, but increasing numbers are finding employment in the private sector. In spite of the acute need for agricultural trained person- nel, especially for agricultural extension and rural community development purposes, there is to be an unemployment problem in the short run because budget constraints and the absence of a rural human resources development strategy limit the positions available.

31. Ten of the 26 agricultural vocational schools have been upgraded under IBRD loan 471-TlH and the government has recently been invited to nego- tiate a proposed IBRD loan for the expansion, modernization and partial re- location of the agricultural university (Kasetsart University).

32. The graduates of agricultural schools, and to some extent also those of the agricultural teacher training college, are generally not ade- quately prepared or motivated for rural work for the following reasons:

(a) The curriculum is not relevant to the skills needed by the various ELgencies. It is inadequate in modern, diversified farming practices, farm management, the economies of farming and rural organization, especially extensiorn services. It is not flexible enough to meet the ecologic and ag- ricultural conditions of various regions in which schools are located. The majority of students come from non-farming families and not all have a strong interest in an agricultural career.

(b) Teachers are insufficently qualified. Many are from non- farming families and do not acquire sufficient experience in farming practices and school farm management during their training. In-service training programs on technical and pedagogical subjects do not exist.

(c) Most school farms are inadequate, consequently students are not trained in modern farming practices.

(d) Schools and school farms have not been operated efficiently because of budget constraints leading to low-unit cost activities, i.e., the non-agricultural subjects.

33. Ilhilst the out-turn from secondary diploma, and university level agricultural education has increased during the Second Plan, training of farmers 'has not received the priority needed in relation to the great number of farm families and the importance of agriculture for Thailand. The Extension Department of the Ministry of Agriculture, due to budgetary constraints, lacks sufficient personnel to meet the full need for extension work. Other agencies conducting training activities among farmers are the Agricultural and the Livestock Departments of the Ministry of Agriculture; the Departments of lWlelfare and Community Development of the Ministry of Interior; the Depart- ments of Land Development, Land Cooperatives and Marketing Cooperatives in the Ministry of National Development, the Bank for Agriculture and Agricul- tural Cooperatives and the Tobacco Monopoly in the Ministry of Finance. Generally speaking, however, training activities for farmers are insufficient to achieve the growth and modernization of agriculture. Annex 6 Page 8

Other Vocational Training

34. The large number of non-fonmal training programs concern less than 15 percent of the 700,000 persons who complete grade 4, grade 7 or grade 10 each year and do not continue their education. An even smaller percentage of the total adult population with less than five years of formal education is reached by these training programs. Private industry has begun to pro- vide in-plant training courses but on a very small scale and not continuous- ly. Government operated non-formal training programs are described below.

35. The Department of Vocational Education of the Ministry of Education assisted by U90M (US-AID) operates 45 Mobile Trade Training Schools (MTTS) which provide five-month courses for about 40o,000 annually, mainly small town youths and adults, in a number of trades in industry, handicrafts and business. In addition, there are three vocational schools offering short courses in the Bangkok-Thonburi area. These schools have been expanded and improved with USOM assistance to train 1,500 students per year. A large pro- portion of those applying for admission come from rural areas. In order to meet the training needs of rural areas, five regional schools are being est- ablished with USOM assistance. They operate along the same principles as the MTTS and will serve as technical and financial servicing centers for them.

36. In 1968, the National Council for Scill Development was established as an interministerial body under the chairmanship of the Minister of Interior, to formulate policies and plans for vocational training and skill development, to set up national standards and testing of skills and to implement such poli- cies, plans and standards. Under its auspices, the National Institute for Skill Promotion was created in Bangkok with UNDP/ILO assistance to provide basic skill training and upgrading courses for apprentice training, in-plant training, foreman and instructor training, upgrading courses for teohnical teachers, supervisors and workers, and basic training courses for new entrants to industry. It also provides technical services to other training organiza- tions. The total output of the Institute when in full operation is estimated at 1,500 per year.

37. The Department of Elementary and Adult Education of the Ministry of Education administers literacy programs for adults and also some continu- ing education and vocational training programs. In 1970, the former enrolled 22,000 adults in evening classes and the latter provided secondary level even- ing courses to 9,000 adults. These efforts could well be expanded in view of the high actual illiteracy 1/ and the low quality of lower primary education which is the only literacy training period for 65 percent of the population.

38. The National Youth Promotion Committee (NYPC), an interministerial body with its own secretariat and assisted by UNDP, formulates the national youth policy and initiates and coordinates youth programs. It has initiated

1/ As opposed to the statistical literacy rate which wrongly assumes that 100% of pupils enrolled in grades 1-4 achieve and maintain full literacy. Annex 6 Page 9 a program to train a core of professional rural youth workers who will guide and assist the activities of out-of-school rural youth grouped in village clubs. This program is only in its very beginning; the scope appears to be limited and the training content unclear. Courses last 4-1/4 years and are designed to produce in seven years approximately 900 qualified, experienced youth workers who will be available for employment by various Government Departments to carry out rural extension ideas. It is also planned that, within seven years, 4,000 youth clubs will be operational and assisting 120,000 youths. The feasibility of NYPC's program is yet to be establish- ed and, unless young farmers are given intensive short courses to become volunteer leaders in the villages, the program is likely to create just another group of civil servants.

Education Finance 39. The ]3udget Bureau (Prime Minister's Office) allocates all public education funds. It consults with NEDB, which is responsible for coordinat- ing public development programs, on overall allocations. However, actual allocations are primarily the result of direct negotiations between the Budget Bureau and individual departments in the Ministry of Education, uni- versities and faculties. This unsystematic allocation procedure, which is largely due to the absence of educational planning and to inconsistencies in policy implementation, has led to an unbalanced growth of the different levels of the educational system. Enrollment growth at all levels is thus to a large extent a function of the negotiation process for budget alloca- tions rather than of demographic and economic development needs.

4o. In 1970, total educational outlays amounted to about 5,000 million baht (US$ 243 million) or US$ 6.70 per capita of total population. Private education expEnditures account for as much as 25 percent. Since 1965, public education expenditures have grown at an average annual rate of 1h.7 percent, which is higher than the growth rates of total government expenditures (11.0%) and GNP (10.0%). However, the share of education in government expenditure was only 16.3 percent in 1970, which is amongst the lowest in the world; the share of GNP was 2.98 percent, amongst the lowest of Asian countries.

41. The recurrent outlays for different levels of education reflect a decline for primary education (Table 3) and substantial increases for teacher training; the former accentuates the low efficiency of primary education while the latter creates the risk of an over-supply of teachers. The major component of public recurrent expenditures is teacher salaries (90% in primary education; 82% in secondary general; 70% in secondary vocational). Average teacher sala- ries have ris,sn slightly less than per capita income. This and limited fringe benefits, such as housing and education opportunities for their own children, are among the factors mainly responsible for the severe teacher shortage in rural areas. Not more than 2 percent of recurrent expenditures goes to teach- ing materials, leaving more than 60 percent of all primary school teachers and children with insufficient teaching aids and textbooks. Vocational and compre- hensive secondary schools receive inadequate funds for consumable teaching mate- rials. Annex 6 Page 10

42. Capital expenditures increased significantly from 17 percent of total public education expenditures in 1965 to almost 29 percent in 1970, due mainly to large construction programs for secondary education, teacher training and universities. Capital outlays for primary schools increased only moderately. Annex 6 Page 11

[I. E3UCATI(NAL POLICY IN THE THIRD PLAN

)j3. The education policy of the Third Plan has a dual emphasis: (i) to expand enrollment to meet the educational needs of the rapidly increasing school-age population, and (ii) to improve the quality of education in order to produce qualified manpower needed by the develop- ing economy. This is in contrast with the Second Plan which put little emphasis on qualitative improvement. However, the quantitative and qualitative changes to be initiated during the Third Plan will not achieve in five Years the major changes in structure and content of the educational system, 'ihich are required to adapt it to the overall social and economic development goals and financial constraints of the Plan. Furthermore, the Plan does not deal with problems of educational administration, organization and finance, and thege are therefore likely to extend into the Third Plan period, thereby continuing basic weaknesses of the system.

44Wi. In preparing the! Third Plan's education policy, the national planning groups, aich as the National Economic Development Board (NEDB), National Education Council (NEC) and Education Planning Office (EPO) of the 1'inistry of Education established joint planning procedures as a first step towards continuous educational planning and programming. But they did not develop long term policy objectives and priorities within national financial constraints, and social and economic educational development needs were not clearly defined. Instead the Plan appears to outline the development trends of the past. The educational objectives of the Plan deal Twith all major problems but the projects listed and budgeted are only loosely related to specific targets or objectives and imple&entation schedules are not given. Performance during the previous five year period, 1L966-1970, was not evaluated so that the relationship with the past is not clear. Interrelationships between levels and types of schools and between development projects within each level are not spelled out. The planned growth in enrollments and numbers of graduates and their regional distribution have been determined apparently without systematic regard to demographic factors and forecasts of required manpower needs.

45. During the past, certain types and levels of education grew faster than others and the system was largely unresponsive to specific manpower requirements ancd regional development needs. The Third Plan aims to correct these imbalances to some extent and it will take more than one plan period to achieve a balanced structure in education. Imbalances are apparent mainly at two leivels: (i) the progression rate from lover to upper primary education is very low (about 38%), and (ii) the progression rate from upper primary Ito lower secondary education is very high (about 85%). Under the present conditions, of every 100 children entering the first grade in 19710, onlY 36 would have a chance of continuing primary education beyond grade 4; 25 would reach lower secondary education (grade 8) and only 10 would complete secondary educa- tion (grade 12). Annex 6 Page 12

it 6 . Structural imbalances are compounded by regional discrepancies. In the Northeast region, only 145 of grade 4 leavers continue in upper primary education, compared with 80% in Bangkok. Since 1965, enrollments at the upper primary level have increased by 60c in Bangkok, 40% in all other regions, and less than 20% in the Northeast. The main reason for regional discrepancies is the shortage of teachers in rural areas which, in turn, is due to the absence of adequate policies to attract teachers to village schools. The Third Plan proposes only some remedial measures; to achieve the needed impact, stronger measures are needed. For instance, the introduction of internships for new teachers or a system of rotation have not been considered.

1.7. In terms of quantitative developments, the Third Plan emphasizes increases in primary and higher education enrollments. Secondary and vocational education would grow at lower rates than in the past five years. Lower primary enrollment would increase by 3.4% per year, which is higher than the population growth rate (3.1% in 1971 and projected by the plan to decline to 2.5% by 1976), mainly due to an anticipated fall in drop-out rates. Upper primary enrollments would increase by 12.6% anually (3.5% during 1965-70) due to an expected increase in progression rates from lower to upper primary from 38% in 1970 to 51% by 1976. The high progression rate from primary to secondary education will be kept at 859. Enrollment in government schools is planned to increase at gro-4ng rates where enrollment growth in private schools is planned to decrease from 10Q a year at present to b% a year during the Plar period. It is not clear, however, how the government proposes to achieve this large reduction in the growth of private education (which now accounts for 45 of secondary school enrollments) since public subsidies to private schools are only nominal (2% of public education expenditures) and upper primary enrollment and output is planned to increase 3½ times faster than in the past. The pressure of large and growing numbers of secondary to higher education would lead to the high annual growth rate of 7.7< for university enrollments (as compared to about 3% in the past years).

48. In terms of qualitative development, the Plan emphasizes reducing drop-out and repeater rates, improving teacher training expanding the number of comprehensive secondary schools,some improvement in providing textbooks for children in rural areas and introducing certain incentives for teachers to teach in village schools. Perhaps most important, curricula and textbook revisions are also planned. However, concepts and objectives for these revisions are not yet clear and their effect may not be felt during the Plan period. The Third Plan also emphasizes non- formal training prograns.

Lh9. The pattern of public education expenditure as forecast for the Plan period does not always support enrollment and quality itprovement targets and might accentuate imbalances of educational development. Primary education expenditure growth would slow down considerably to 8.3% Annex 6 Page 13 annually (from 12.5% before) although enrollment growth is planned to increase. General secondary education expenditures would grow faster (about 18% annually instead of 16.h%) although enrollment growth would be sma11. University expenditures, on the other hand, will grow some- what slower (11% instead of 18.6%) although enrollment growth rates are planned to double.

50. Financing education during the Third Plan period is likely to encounter difficulties, which are not mentioned in the Plan. Increasing unit coste and the absence of measures to improve the efficiency of the system are likely to lead *to an expenditure level of at least 0 8,000 million by 1976 compared to 0 7,200 million in the Plan document. Thus, educationel expenditures might grow 11% a year instead of 8% as forecast in the Plan. The achievement of the lower level of expenditure would require major changes in the implementation of quantitative and qualitative objectives. Annex 6 Page 14

III. PROBLEM AREAS

Geeral 51. Absence of a consistent and comprehensive human resources development policy and of a functional implementation mechanism is at the root of all other major difficulties which account for the relatively sloT development of education and training, their limited contribution to economic and social development and their low internal efficiency. It is difficult to decide whether the lack of a national strategy is responsible for the absence of workable administrative and financial mechanisms or whether lack of these mechanisms prevents the formulation of strategy. There can be little doubt, however, that unless a strategy and complementary implementation mechanisms are introduced, education and training will continue to use a growing share of national financial resources without yielding the expected developmental returns.

52. In the Second Plan as well as in the Third Plan, the basic objectives of expanding primary education as a function of population growth and secondary and higher education as a function of manpower requirements, of giving priority to rural development and improving relevance as well as the quality of education at all levels by efficient methods, have been lost in the multitude of small and large unrelated projects. The connection between policy objectives, targets and actual or planned projects is difficult to see.

Management of Education

53. The planning mechanism is being developed but planning is not yet conceived as a continuing research-based function requiring leadership and direction from a high level planning unit supported by the co-ordinated efforts of several agencies with explicit, complementary planning tasks.

54. These problems are sanetimes aggravated by organizational defi- ciencies wihich impede the entire process of planning, decision-making and implementation. For example, the confusion of line and staff func- tions within the Yinistry of Education reinforces the traditional auto- nomy of individual departments at the expense of leadership and contrcL. In this situation,the EPO, established as the planning division of the Ministry under the Office of the Under-Secretary, finds itself in a com- petitive position with the powerful departments which engage in their own planning activities in addition to their operational line functions. The result is a series of parallel planning efforts based to some extent upon goals for sub-sectors of the system as seen by individual departments. This situation has become even more complicated with the transfer of elementary education, with the exception of technical programme matters and a number of experimental schools, to the Department of Local Adminis- tration of the Ministry of Interior. Further, the division of work between the NEJ and the ITO is not always clear. Annex 6 Page 15

55. Although the Office of the Under-Secretary was established to provide executive leadership and control, the Office has been assigned respons-bility for such operational line !fnctions as educational radio and television and guidance while it lacks adequate staff services to evaluate and co-ordinate departmental activit ies. This confusion of line and staff function is repeated within such major departments as Secondary E-ducation, Vocational Education and Teacher Training where paralle:L activities are conducted in educational planning, curriculum development and school design and construction; on the other hand, camplementarities and interrelationships of levels and types of educa- tion are! ignored. For example, the Secondary Education Department is im- plementing a large program of curriculum diversification and introducing practical subjects in rural secondary schools but neither the Teacher Trainingr nor the Vocational Education Department are providing the concom- mittant training of specialized teachers and instructors. 56. These deficiencies in planning and decision-making are symptomatic. They reflect a lack of adaptation of traditional values, structures and functiorns, which were adequate for the administration of a limited formal system of educaticn, to today's requirements of a growing, increasingly complex and costly system of human resource development.

57. At the university level, co-ordinated development is also handicapped by management problems. Universities suffer from organiza- tional cleficiencies. A high degree of faculty autonomy leads to resource wastage through duplication and to limitations of inter-disciplinary studies. Higher education institutions must deal with several external agencies in order to plan and inplement their prograns. Among these are the NEC (organizational, budgetary, and curriculum matters), the Universities Civil Service Commission (UCSC) (personnel matters), the University Development Commission (UDC) (post-graduate program development),the Budget Bureau (budget matters) and the Office of the Prime Minister to which the univer- sities are attached. This dispersion of functions makes difficult to plan anti control the universities, to improve the use of resources in higher education, to lower unit costs and to increase the direct usefulness of universities to economic development.

58. Management problems at the national level are compounded by com- plex and partially disparate vertical relationships to the school level which hinder two-way communication. The inspection-supervisory system illustrates the problem. In fact, this system appears to conBtitute a set of siystems without standardized evaluative and reporting procedures ndaWithout a common national terminal unit tQ dinate and strengthen superrvisory activities or to prepare evaluation reports'. T'he Under- Secretary for Education has four national inspectors and twelve regional education officers who report directly and individually to him. Various ministerial departments have supervisors responsible to the department head. At the provincial level, the governor, responsible to the Ministry Annex 6 Page 16

of Interior, has an education officer whose staff includes supervisors responsible both to the latter and the Ministry of Education. The Ministry of Interior, responsible for Elementary Education administration, is now setting up a parallel system of administration and inspection at the District level. 59. The management process is further complicated by the autonomy of the Budget Bureau which is free to decide on the volume and timing of financing, irrespective of national or any other educational plans. The introduction of continuous national educational planning and of modern education management will achieve little without the full collaboration of the Budget Bureau into the overall educational policy formulation system.

Structure

60. The enrollment pyramid and the slow rate of improvement of progression and retention rates reveals a basic imbalance in the structure of education, which is compounded by regional and social imbalances and by a dual-purpose vocational education system. In spite of government efforts in working towards a less distorted structure, educational development continues to benefit pri- marily the children of urban families with average and high incomes. The children of rural families rich and poor have more limited educational oppor- tunities. Elementary education leading to sustained literacy is only a thin layer not properly reflected in statistics which do not measure lack of quality and relevance of lower primary education (grades 1-4). Upper primary and secondary education are, to an unusually high extent, left to private initiative and the ability to pay school fees with no effective supervision or control of standards. The creation of comprehensive schools, which are extremely costly if well operated, magnifies the distortions in the education structure, adding another selective branch to the already highly selective secondary level and drawing heavily on scarce financial resources for which alternative, more efficient uses have not been considered. It is clear that Thailand cannot afford to establish and maintain comprehensive schools on a scale sufficiently large to achieve the stated goals of increased quality and relevance of edu- cation for all secondary school students.

Curricula

61. The objectives of primary and secondary education tend to be too vague and too general to be of much help in establishing appropriate curricula and in evaluating student progress. The objectives are not formulated in measurable terms or in terminal performance specifications. This is not obvious at the upper secondary vocational level where the ambiguity of objectives generally has resulted in programs which are neither adequately terminal nor specifically designed for further education. The content of education is in most cases oriented toward examination criteria leading to overemphasis on academic subjects. Thus, the system tends to prepare for further education even though only a small percentage of each age group has access to secondary and higher education and in spite of the critical need for practically oriented and trained youth, particularly for rural development. Annex 6 Page 17

62. The Department of Education Techniques in the Ministry of Education is responsible for curriculum development but it has neither the funds nor the personmel to implement this difficult task and hence it carries out the function in collaboration with other departments within the Ministry largely on an ad hoc basis. Study programs and textbooks are not based on research nor doJihey undergo experimentation and revision prior to adoption. Most of the significant program changes and innovations have been brought about in specific projects through external assistance. A major curriculum problem lies in the vagueness of end purposes and instructional objectives for specific types and levels of education. The need to view all forms of formal and out-of-school education and training as a single system to promote effec:tively socio-economic development, with each type of education having specific purposes and functions contributing to the whole, has not yet been recognized sufficiently to lead to the necessary coordinated insti- tutional arrangements and the concentration of skilled personnel required to achieve this integration and specification in one single curriculum development agency. The present fragmented approach to curriculum develop- ment is accompanied by problems of diffusion of curricula changes because of lack of communication between central authorities and the schools.

Educational T'echnology 63. Heavy reliance upon the textbook and the lecture method is a dominant characteristic of instruction at all levels and types of education. The student' s role is largely passive and memorization is the basis for achievement chiefly determined by subjective examinations.

64. There is an acute shortage of textbooks in primary schools, due to insufficient funds and to the fact that textbook production and distribution is to a very large extent in the hands of profit-making establishments. Thus, an estimated 60% of all rural primary school children and teachers are with- out adequate books. The shortage at the secondary level though less serious is still a significant impediment to raising the quality of teaching. Further- more, administrative rigidities and detrimental financial practices prevent rapid updating of text materials and syllabi.

65. Most schools at any level have few modern audio-visual aids and often the existing equipment is not fully used. The obsolescence of equipment in teacher trainLing institutions is particularly disturbing. In the vocational schools (excepting those assisted under Loan 471-TH), there is a lack of modern equipment. 66. Elmentary school instructional radio programs of a supplementary kind are broadcast daily throughout the nation but poor reception and the shortage of funds and expertise limit their effectiveness. Instructional television programs are received in municipal elementary schools. Since the radio and television network covers approximately 80% of the population, their systemaltic use for instructional purposes could have a significant potential for increasing the quality of teaching. Annex 6 Page 18

Inefficiencies

67. Wastage, as measured by repeater and drop-out rates, is high at all levels of education. It is particularly serious in lower primary schools where, on average, each child spends 5 years in a 4-year cycle, and where almost 70% of grade 4 pupils drop-out, i.e., do not complete primary edu- cation. Wastage in rural areas is considerably higher than in urban areas and it is higher in most private schools than in government schools.

68. Although the causes are manifold and sometimes difficult to assess there can be little doubt that this high wastage, and therefore the high cost per graduate, can be traced to low quality of teachers and the lack of a supervisory system, evaluation methods and criteria, instructional materials and relevant curricula, Annex 6 Page 19

IV. SUPPLEMENTARY EDUCATIONAL DEVELOPMENT MEASURES

69. A comnparison between the major problems of education and training in Thailand and the scope and tendency of education policies and training of the Third PLan leads to a mnmber of conclusions.

70. Substantive improvements in efficiency (resource use), quality, relevance and 43ven availability of education and training at all levels, of all types and in all Regions of the country could be achieved without significant additional funds and, in some cases, with no additional funds, solely through reorganization, effectively supervised and evaluated imple- mentation of policies, reallocation of available financial, physical and teacher resources and better utilization of existing facilities. Bilateral or international assistance for education and training in Thailand, be it in the form of technical assistance, equipment, preinvestment studies, cash or any other form, would be most useful if applied in support of such policies. Lack of financial resources, although very real, is a second- order constraint. The task is primarily one of clear, consistent, rational policies and their stringent application.

71. The discrepancies between Plan objectives and development programs and projects could be substantially narrowed, largely within the given financial constraints, and without disrupting the continuous work of the system, if measures would be adopted along the lines suggested in the UNESCO report "Thailand, Proposals for Educational Development." 1/

72. The measures set out below are the major conclusions of the IBRD economic mission. These measures could be undertaken during the Third Plan although not aLl might be completed by 1976. External financial assistance for education iwould probably be more effective if related to these proposals. Primary Education

73. Given the continued predomitAntly rural orientation of four-fifths of Thailand's fast growing population and of the greater part of the economy, it is the scope and quality of primary education which will to a large extent determine success or failure in attaining the development objectives of the Third Plan. Two main objectives could be to plrovide full primary education for all children in the relevanit age group and|to improve quality, through:

(a) Reduction of the primary cycle from 7 to 6 years. With an extended schoo:L year, the number of effective school days could increase more than 10 percent at decreasing costs per graduate.

(b) Increase in the number of effective school days per year from about 150 today (lowest in Asia) to 210 days (current Asian average); this in itself would not increase unit costs since teachers are already employed on a 12-month basis.

1/ The confidential report dated August 1970, prepared for the Government of Thailand, presents detailed proposals for restructuring of the content and administration of Thailand's education and training. It lists educational projects and pre-investment studies considered essential for the economic and social development of Thailand. Annex 6 Page 20

(c) Increase in the progression rate from lower-primary (grade 4) to upper primary (grade 5) from 38 percent to 80 percent by 1980 and full progression by 1985, thus achieving a unified 6-year primary cycle.

(d) Distribution of free textbooks to all primary pupils and of free teaching aids to all primary teachers.

(e) Initiation and implementation of curriculum and textbooks reform.

(f) A two-year internship for new teachers together with a compre- hensive system of incentives to attract teachers to village schools. These measures would substantially increase the efficiency and quality of primary education at only small increases in unit costs in real terms. Increases in total primary education expenditures beyond what is foreseen at present need not augment the overall education bill if funds now ear- marked for low priority and low-impact items are reallocated in the course of Plan implementation. Secondary Education

74. (a) Decrease in the progression rate from primary to secondary from 85 percent at present to 70 percent by 1980. Because of the proposed increase in primary enrollments, this would still permit substantial in- crease in secondary school enrollments and an output in numbers sufficiently high to provide university entrants and satisfy the demands for qualified manpower.

(b) Restructuring secondary vocational education to make training more related to local industrial and agricultural requirements. (c) Reorganization of the vocational schools to include formal and informal training courses of various lengths so that they become local centers for vocational training and upgrading, integrated into local develop- ment schemes.

(d) Review of comprehensive school courses with the aim of increasing their effectiveness, as well as reducing unit costs. Higher Education

75. Reduction of growth rates of university enrollment in the metropolitan region with a simultaneous increase in the growth rates of regional universities, emphasizing medical, science and technology oriented faculties and increasing post-graduate study facilities.

Planning and Administration

76. (a) Immediate steps: development and introduction of an aggregate plan for the entire education and training system and of annual operations programs for each level of education; increase in the educational planning Annex 6 Page 21

staff of NEC aLd NEDB; introduction of continuous quantitative and qualitative evaluation of program performance; establishment of aggregate national edu- cation budgeting, covering all levels and types of education and training irrespective of' distribution of administrative responsibilities, under a joint committee chaired by the National Education Council.

(b) Further measures: reorganization of the Ministry of Education in order to strengthen executive leadership and control as well as to facilitate departmental operations through the provision of strong supporting central staff services. Annex 6 Page 22

V. PROJECT PROPOSALS FOR EXTERNAL ASSISTANCE

77. In Thailand, availability, relevance and efficiency of primary education will in the long run be most important for economic and social development. Therefore, expanding and modernizing primary education has high priority. An Integrated Primary Education Development project might be the best way to achieve this. Such a project should include all relevant facets of primary education both quantitative and qualitative; e.g.,

(a) the development of standardized school facilities and the application of such standards through the construction of upper-primary schools, predominantly in densely populated rural areas;

(b) adaptation of curricula to the specific socio-economic situation of the country; rewriting of textbooks; development of teaching aids;

(c) production facilities for textbooks and teaching materials and establishment of a distribution mechanism to cover all primary schools;

(d) establishment of primary teacher training institutions in rural areas.

Integration of these items in one project is essential in order to effectively overcome the obstacle of fractionated administrative and policy responsibility for primary education.

78. In order to support improvement and expansion of primary education another project would be to assist in the construction and equipment of seven new regional ELementary Teacher Training Colleges and related practice schools for the training of teachers at the certificate and diploma levels.

79. Thailand's expanding manufacturing and industry sector as well as modernization of agriculture generates rapidly growing requirements for technicians and skilled workers. Requirements could be met through (a) the upgrading and modernization of four existing technical institutes. Some enrollment expansion may also be needed provided there is manpower justifi- cation but as a first step, the secondary level courses still offered at these Institutes should be phased out; and (b) the construction and equip- ment of as many Skill Training Centers as can be justified on manpower grounds and provided qualified teachers and instructors can be made available in sufficient numbers.

80. In order to meet the projected shortages in medical personnel and engineers, a higher education project could include: Annex 6 Page 23

(a) a health training center at Khonkaen University, providing medical and paramedical trainirng at all levels for the Northeastern Region; and

(b) eBquipment for the recently established engineering faculty of the University of Songkla.

81. At all levels of education and for all types of education and training, curricula, textbooks and teaching materials are seriously lacking in relevance to specific development conditions of the country. Effective and large scale improvements are urgently needed. A Curriculum Development and Educational Technology Center could serve this purpose. The project would consist of the establishment of a national center as an autonomous government agency under a governing board chaired by the Minister of Edu- cation. The center would be responsible for:

(a) the continuous development of curricula and syllabi for all levels and typess of schools, and particularly for primary, academic, compre- hensive and vocational schools and for vocational training institutions;

(b) *the preparation, production and distribution of textbooks;

(c) the design, producction and distribution of teaching materials; and (d) the training of teachers and instructors in the use of teaching materials and new methods.

The center should be established part of a thorough reorganization of the mechanism for curriculum and textbook development, production and distri- bution.

82. In order to prepare and motivate the rapidly growing number of rural secondary school students for a working life in rural areas and with the aim of raising the average level of education and skills in these areas, additional facilities and equipment would be needed to convert existing rural secondary schools to Diversified Secondary Schools offeAng diversified programs adapted to local requirements. i

83. Thailand has a radio-broadcasting and television infrastructure covering more than 80% of the population. It !is possible that the efficiency of formal and informal education and training,: particularly in rural areas and for primary education, could be significantly increased at low additional per pupil cost through an Educational Television and Broadcasting project, which would include studios and equipment, recleivers, repair and maintenance facilities. However, large-scale expansion ofIeducational television as proposed by the Ministry of Bdication is not clearly defined in the Third Plan. In any case, a pre-investment study appears to, be an essential preliminary step.

84. Further investments in agricultural schools foreseen in the Third Plan should await the results of the study on agricultural education and training, which is included in the Kasetsa±tUniversity project (Kasetsart University).

Table 1: Enrollment, by Level and Grade, Public and Private

1965(Actual) 1970(Actual) 1976(Projection) Public Private Total Public Private Total Public Private Totol Primary Education Lower Primary (Grades 1-4) 3,752,540 393,912 4,146,452 4,222,276 508,043 4,728,319 5,082,000 650,000 5,732,000 Upper Primary (Grades 5-7) 277,316 206,656 483,972 634,561 290,415 924,976 1,219,000 319,000 1,538,000 Total 4,630,424 5,653,295 7,270,000 Secondary Education Lower Secondary Academic (Grades 8-10) 142,539 128,446 270,985 229,856 217,697 447,553 440,500 275,000 555,600 Upper Secondary Academic (Grades 11-12) 25,021 23,095 48.116 31,701 27,982 59,683 45,700 27,200 67,900 Total 319,101 507,236 623,500 Lower Secondary Vocational (Grades 8-10) 4,263 3,831 2,500 Upper Secondary Vocational (Grades 11-13) & Technical (Grades 14-15) 2.714,386 94,162 Total 37,014 58, 217 97,162 (Total of General and Vocational) (356,115) (565,453) (722,846) Teacher Training M.S. &Bachelor. 14,050 Higher Certificate (I &II) 3,247 7,937 28,740 Lower Certificate (I & II) 13,993 34,050 51,930 Vocational Teaching 77S 1,633 Total 4,626 18,015 43,620 99,346 University Education Engineering 1,913 3,078 5,822 Medical Science 3,588 6,936 Agriculture 11,722 1,688 3,201 5,907 Natural Science 1,522 2,750 4,779 Other (Humanities, Education, Fine Arts, Social Science and Law) 27,692 25,189 34,926 Total 36,403 41,154 63,216

Source: National Education Council Annex 6 Table 2 Table 2: Repeater, Drop-out, Retention and Progression Rates in Primary and Secondary Education

Primary Education Secondary Education LTpper Lower Upper Lower (G 1 - IL) (G 5 - 7) (G 8-10) (G 11-12) Repeater Rate 1/

1965 11.7 h.0 5.1 33.0 19690 18.1 3.3 10.1 16.0 1971 (estimate) 14.8 3.3 9.0 16.0 1976 (forecast) 8.3 3.0 5.0 9.5

Drop-out Xate 2/

1965 75.7 30.5 35.9 42.6 1970 63.5 31.7 36.3 23.9 Retention Rate 3/

1965 24.3 16.9 36.3 15.1 1970 36.5 24.9 23.9 12.1 Progression Rate Lt

1965 27.8 89.7 67.b 660o 1969 33.5 84.9 69.3 65.0 1971 (estimate) 38.0 83.8 67.0 75.0 1976 (forecast) 51.3 85.6 79.0 80.0

1/ Percentage of total enrollment in each cycle repeating at least one grade. 7/ Percentage of enrollment in first grade of each cycle not continuing in first grade of subsequent cycle. 3/ Percentage of entrants in first grade continuing at successive levels. / Percentage of leavers of highest grade of cycle continuing in lowest grade of following cycle.

Source: National Education Council. Table 3: Expenditures on Education

1965 (Actual) 1970 (Actual) 1976 (Projection) Current Capital Total Current Capital Total Current Capital Total Public Expenditure 1,687.2 347.2 2,034.4 2,886.5 1,159.5 4,o46.o ...... 8,012.0 Primary EducationL/ 1,159.0 147.0 1,306.0 1,826.0 502.0 2,328.0 3,410o0 850.0 4,260.0 Vocational Education 107.0 44.0 151.0 268.7 98.2 366.9 358.0 160.0 518.0 Total Secondary 229.0 20.0 249.0 331.4 200.0 531.4 ...... 1,181.0 Teacher Training 46.0 31.8 78.2 98.9 133.3 232.2 ...... 360.0 Others in M-istry of Education-/ ...... 325.0 Universities 1X5.8 104.4 250.2 361.5 226.0 587.5 ...... 1,368.0

Private Expenditure ...... 1,012.0

Total Expenditure 5,058.0

1/ Including adult education.

2/ Teaching materials, physical education, religious affairs administration.

Source: National Education Council and Budget Bureau.

ID(DxX w (DI

THAI LAND STRUCTURE OF THE EDUCATION SYSTEM

i- PRIMARY EDUCATION -4 , SECONDARY '-HIGHER EDUCATION- EDUCATiON

TEACHER TRAINING

ACADEM IC STREAh\M

LOWER PRIMARY UPPER PRIMARYW LOWER SEC. UPPER SEC. UNIVERSITIES

I ~~~VOCATIO NAL STREAM

LOWER SEC. UPPER SECO NDARY TECHNICAL

MUSIC AND DRAMATIC ARTS

OMAJOR EXAMINATIONS *CERTIFICATE O DIPLOMA *BACHELOR'S DEGREE

YEARS OF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 (17) SCHOOL _ __i _ II II _.I I AGE 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 (23)

IBRD - 5466(R)

THAILAND ADMINISTRATIVE STRUCTURE OF THE EDUCATION SYSTEM

OFFICE OF THE PRIME MINISTER

------l------

MINISTRY OF INTERIOR TT-|ACiHE ------MINISTRY OF EDUCARTON

iEDUCATION MSOFFICE OF THE I PLANNING~~OZZ1 OFFICE ~~~~UNDERSECRETARY

DEPARTMENT OF LOCAL ADMINISTRTIATI i E N

DIVISION OF E LEMENTARYVELOPMET.BOAR EDS EDUCATION NC N

OFFICE OF THE i ~~~~~~~~~~~~~~DEPT.OF ELEMEUTARY L

PROVINCIALGOVERNOR AND ADULT EDUCATIONU C - SCCIVI S L COMMISSIONERVICE ADMINISTRATIVE .NEC - NATIONAL EDUCATION COUNCIL ORGANIZATION _DEPARTMENTOF _NEDB - NATIONAL ECONOMIC DEVELOPMENT BOARD MUNIPROVPALA IC ! ~~~~~~~SECONDARYEDUCATION NYPC - NATIONALYDOUvTHPOpMOTIO COMMMITTEE

ADMINISTRATION EDUCATION OFFICERS I TEACHER TRAINING ADMINISTRATION ...... SUPERVISION FINANCING .PROVINCIAL| ELEMENTARY |VOCe L DEPARTMENTTIO OF - EMPLMNT EDUCATION. | SECTION l ! * | VOCATIONAL EDUCATION ------ADVISORY OR PARTICIPATION IN DECISIONS EDUCATIONAL PLANNING RESPONSIBILITIES PROVINCIAL .~DEPARTMENT OF EDUCATION OFFICERS PHYSICAL EDUCATION

: DISTRICTELEMENTARY 1: | DEPARTMENT OF .EDUCATiON SUBSECTION . FINE7 ARTS

DEPT. OF EDUCATIONAL EDUCATION OFFICERS TECHNIQUES

ELEMENTARY SCHOOLS ...... --. .. D _OF r.DEPARTMENTRELIGIOUS AFFAIRS

...... MUNICIPAL SCHOOLS

IBRD -6178

THAI LAN D EDlUA I ON'AL PYRAM I D 19 69

YEARS ENROLLMENT MALE FEMALE RATIO UNIVERSITY I8 GRADUATE | 7 30

15 [] w1.8% UNDERGRADUATE 41, 100 14

13 SECO NDARYL SECONDARYUPPER2 28, 700 19, 400 6.9% UPE 11IE 00 21 .700i

10 66,200 4LS',70CI 12.8 LOWER 9 ,6,100 51.500

8 Q:ietx8,;. . 63i,4C0 16.3% PRIMARY r -6- 6 % , I33 3i0cr 84, 501)

UPPER 6 143, r)| 0 0100

Z~~~~~~~~~~~s... '15 u '...... 8,;- C.... rr 83.4

r - - LOWER r 1 5 |.-. ... .5.

120.3% 0

80 000 600,000 400,000 200, 000 0 200,000 400,000 600, 000 800,000

IBRD - 5465(R)

Annex 7 - PROVINCIAL WATER SUPPLY

TABLE OF CONTENTS

Page No.

Introduction 1

Summary 1

Population, Health anl Water Resources 3

Water Supply Organizations 5

Provincial Water Works Division 6

Rural Water Supply 8

'dater Supply for Communities under 500 9

Sewerage 11

Sector Problems 11

Tables

Annex 7 - PROVINCIAL WATER SUPPLY

Introduction

1. This annex covers a brief survey of the water and sewerage situa- tion in Thailand made by C. Spangler and E. Greenwood as part of the IBRD economic mission carried out in July and August 1971. The survey covered performance over the last few years, and briefly reviewed financial policies and procedures, and to a limited extent the institutions operating within the sector. The plans for water development under the Third Economic Develop- ment Plan (1972-1976) were also reviewed. Some of the problems likely to hinder progress were identified and discussed with government officials. Suggestions, which included a program of pre-investment studies, were made to help improve future performance in the sector. The mission visited water supply systems in the four main regions of the country accompanied by WHO officials. 1/ Water supply and sewerage in Bangkok was not included in the survey.

Summary 2. Thailand's 1970 polpulation was about 36 million, with 80% living in rural communities of less than 5,000 people. It is estimated that public supplies are serving only 33% of the total urban population and 15% of the rural population; the rest use shallow wells or rainwater collected from roofs. Thailand has good rainfall for seven to eight months of the year.

3. There are two major organizations providing water supplies; the Provincial Wnrater Works Division (PWWD) of the Public and Municipal Works Department in the Ministry of Interior, and the Sanitary Engineering Divi- sion ( SED) cf the Department of Public Health in the Ministry of Health. They are engaged in similar activities, except that the NJWD works with communities of over 5,000 people and the SED with cormiunities of 500-5,000. The PDM1D directly operates most of the urban water supplies and meters most of its water services. The rates are uniform and are the equivalent of about US$0.38 per 1,000 gallons, which seem high for outlying areas in Thailand. Blillings and collections are good but revenues do not cover operating costs if depreciation is included. The SED turns over the mana- gement of the supplies it constructs to the small communities to operate,

1/ These are (1) the central region, an alluvial lowland that includes the Bangkok Delta, formed by Thailand's most important river, the Chao Phya; (2) the southern region, a long mountainous peninsula covered by rain forest and extending southward to Malaysia; (3) the northern region, a forested highland rising to over 8,000 feet along the border with Burma; and (4) the northeastern region, a relatively dry upland area covering almost one-third of the country and ending at the Mekong River on the border with Laos. Annex 7 Page 2 usually with poor results. Capital expenditures for water supply con- structin are met from the national budget at no cost to the communities. 'Water supplies for small rural communities of less than 500 people are the responsibility of a number of agencies. Much of the available funds are used to provide water from small ponds that are not safe for human consumption.

4. In the Third Plan period (1972-1976), budget requests for the urban sector (communities over 5,000) are 20% higher than that provided in the Second Plan period (1967-1971), but it is believed that the proposed program which consists of 50 new water systems and expansions to 50 other systems is within the capability of PWWD. Proposals for the rural areas under the Third Plan are intended to provide a further 20,000 villages with a public water supply bringing the number of villages with a public supply to 30,000 out of an estimated 45,000 villages. Available information about past performance suggest that the proposals may be too ambitious unless the efforts of the agencies operating in the rural sector are expanded and better coordinated. While the National Economic Develop- ment Board (NEDB) stated that the budget requests would be met, the individual agencies felt that there would likely be a reduction of funds allocated to the water sector. Long term objectives are to provide most of the urban and rural population with access to an improved water supply by the end of 1981. Experience during the Second Plan period indicates that this estimate is too optimistic. Attaining the objectives may take an additional five to ten years, but that would still be a reasonable period considering the extent of the program. More funds at this time would not help although better utilization of fund allocations could be made.

5. The main obstacles to the best use of resources in the sector are summarized below together with proposals for improvements:

(a) PWWD and SED need technical assistance in improving the design of water systems and in upgrading operating practices. The present WHO advisors or an additional advisor could likely provide at least some of this assistance by working with both agencies. Assistance is also needed in establishing short course training for various categories of personnel.

(b) Water supplies to small communities under 500 population are the responsibility of half a dozen agencies. These programs should be reviewed and consolidated to increase their effective- ness and make better use of budgeted funds.

(c) Competing demands for available water resources are already occurring in some areas. A national water resource policy Annex 7 Page 3

backed by legislation, is required to ensure the best use of water resources. It should cover surface, ground and waste water and the water agencies should be given the authority to enter upon privately owned land to explore for groundwater and to expropriate Land whenever it i8 in the public interest to do so.

(d) Groundwater, which should reduce the cost of both urban and rural water supplies, has not been properly considered. Steps should be taken to improve exploration, data collection and well design and development.

(e) Capital costs of water supply construction are now largely covered through grants from the national budget. A policy should be adcpted and procedures developed which will encourage capital improvements to be financed from water revenues to the maxinnum extent possible. A study is required at the same time to establish costs of production, distribution and depreciation for each of the systems. Tariff and revenue policies should be reviewed and tailored to encourage customers to connect to and use the systems. (f) Economic and financial criteria are not sufficiently used in project selection especially in urban areas. More attention to this should secure better use of funds and help to strengthen the finances of the water operations. Population. HIealth and Water Resources

6. The population of Thailand in 1970 was 36 million, distributed as follows: Classi- % of total fication Million Population Metropolitan Bangkok Urban 3 2 Other cities over 5,000 " 4 ) Villages and towns, 500-5,000 Rural 17 ) Communities of less than 500 " 12 ) 80

The largest city outside the Bangkok metropolitan area--Chiang Mai--had only about 85,000 inhabitants. 7. Beicause of the relative ease of obtaining water from shallow wells or collecting rainwater from roofs, only about 43% of the urban population in cities with water supplies are connected to the systems. Reports indi- cate that atout 10% of the people in villages and towns of 500-5,000 inha- bitants and about 20% in the communities of|less than 500 inhabitants have benefitted from an improved water supply. In the smaller communities about half of the so-called "improved" supply consists of only a surface water impoundmentj, rainwater storage tanks or a pond. Annex 7 Cage

8. Waterborne diseases have always been one of the major public health problems in Thailand. Statistics of the Royal Thai Department of Health indicate that 90% of the rural population is infected with water- borne intestinal parasites. Approximately 60% of the morbidity and 40% of the mortality of the country is attributable to errteric diseases. The high incidence of gastroenteritis, dysentery, typhoid, paratyphoid, and infant diarrhea attest to the need to increase the percentage of the population provided with a safe water. There is equal need to mount an extensive health education program to bring a better understanding to the people of the need to use water from safe sources. 9. The average annual rainfall in Thailand ranges from 1,000 to 1,200 mm in the north and northeast, from 1,400 to 1,800 mm in the central region, and from 1,800 to 2,400 mm in the south. In the drier northeastern region, average rainfall in each of the four rainy months is over 200 mm; there are three or four months in each of which the rainfall is over 50 mm, while during the dry season (four or five months) it is less than 50 mm per month. With rainwater available for so many months of the year, most Thai dwellings collect roof water and store it in large water jars. 10. Surface water is plentiful in the rainy season, and extensive irrigation works have been developed to help spread the floodwater over a wider area and time period. Water is stored in a few reservoirs for dry season use, with only limited acreage bensfitting. Most of the urban water supplies use rivers or irrigation canals as raw water sources. Water supply facilities using such sources are usually expensive in comparison with groundwater wells. In the dry season the river flows may require augmentation from storage reservoirs. At Korat in the northeastern region, when the river gets too low the farmers are denied irrigation water so that the city's supply will be adequate.

11. If proper methods of exploration and development are used, ground- water would most likely be the best and lowest cost source of water for most of the urban and rural water supplies. With so much rainfall, groundwater should be readily available in most areas, but its potential for community water supply has not been determined. While a large part of both the urban and rural population use poorly constructed and located shallow dug wells, most of the deep wells have been drilled within the past 20 years and data is limited. The existing data are difficult to interpret because the government drilling programs and various drillers did not use standard symbols, terminology or a coordinate system of locating wells and test holes. Not every driller submits a log of wells drilled. These problems of data were reported by a WHD consultant in November 1970, and the Executive Committee of the National Rural Community Water Supply Program is taking steps to adopt standard symbols, terminology and a coordinate system. The Ground Water Division of the Department of Mineral Resources, which is responsible for collecting and analyzing well logs and preparing reports on groundwater, does not have enough trained personnel; hence much of the data it collects is not in usable form. However, the Department's publication entitled "Ground Water Resources Development of Northeastern Thailand" states (page 86) that "it is apparent that usable ground water is available to drilled wells in sufficient quantity to satisfy domestic needs throughout more than eighty percent of the area." This applies to Annex 7 Page 5

the relatively water-short northeast; groundwater should be even more available in the other regions, as confirmed by the many deep wells in the alluvial fornwtions of the Bangkok area. In the valleys around Chiang Mai and Lamparg, recent tests indicate large-capacity wells could be developed for irrigation. In the northeast, some local aquifers are high in salt or iron; salt water weLLs cannot be used but iron can be removed if no lower-cost water is available. In areas where groundwater is found at shallow depths and where wells are now in use, considerable protection could be afforded to those using the water, by reconstructing the wells to provide against the entrance of contamination. All such wells need to be located at adequate distances from points of pollution. Water Supply )rganizations 12. The size of the community is the main factor determining which organization is responsible for providing water supply. In practice, however, there is some overlap in the size of community served by the various organizations. The Bangkok metropolitan water supply is the responsibility of the Metropolitan Water Works Authority (MWWA) ,-a State enterprise. 'Water supply for all cities of over 5,000 inhabitants outside the Bangkok metropolitan area is the responsibility of the Provincial Water Works Division (PWWD) of the Public and Municipal Works Department. The Sanitary Engineering Division (SED) of the Department of Public Health takes care of villages and towns of 500-5,000 inhabitants. A number of agencies, listed below, provide the small communities of under 500 inhabitants with drilled wells or with improved dug wells along with hand pumps, storage facilities and ponds: (a) Ground Water Division of the Department of Mineral Resources, Ministry of National Development; (b) PWWD, Ministry of Interior;

(c) Accelerated Rural Development Program, Office of the Prime Minister; (d) Community Health Development Division of the Department of Public Health, Ministry of Health; (e) Department of Community Development, Ministry of Interior; (f) Department of Local Administration,! Ministry of Interior; (g) Royal Irrigation Department, Minirsry of National Development; (h) Border Police Patrol, Police Department, Ministry of Interior. In 1966 the Executive Committee of the Natiornal Rural Cammunity Water Supply Program was established to plan and coordinaie the work of the above agencies. The Committee has not met regularly nor madelarw critical review of what has been acctm lished and whether the available funds and equipment are being used to obtain optimum results at least cost. Annex 7 Page 6

Provincial Water Works Division

13. The PWWD is responsible for the design, construction, operation and management of 144 municipal water systems that it owns. It has a staff of 3,400, with control centralized in Bangkok. The PWWD also acts as consulting engineer and operational advisor to 45 water systems owned and managed by local municipalities (Table 1). The total population in the 189 cities is about 3 million; with 163,000 connections and an assumed 8 persons per connection, it is estimated that 40% of that number or 1.3 million people live in dwellings with piped water supplied by the municipal systems. There are very few public hydrants in these municipalities as the PWWD does not encourage their use, believing that if they are available, few would pay for house connections.

1h. The PWWD does not investigate the availability of groundwater but instead relies on information obtained from the Ground Water Division of the Department of Mineral Resources. If such information is either unavail- able or not favorable, groundwater as a possible source is disregarded and the nearest surface source is used. This increases the cost of new water supplies. New surface water supplies should be considered only after a careful study, including test holes, has failed to identify adequate quantities of groundwater.

15. The PWWD has a satisfactory organizational set-up and seems to be doing an adequate job in working up cost estimates, preparing tender docu- ments, supervising construction and managing water supplies. For the most part, duties and responsibilities are clearly delineated. Two resident WHO engineering consultants are advising the PWWD, but further technical assistance is needed to strengthen its capability to evaluate the financial and economic feasibility of projects, to locate and develop groundwater sources, to design wells and surface water treatment facilities, and to improve operations and maintenance. The PWWD's role in rural water supplies is discussed in paragraph 25(b).

16. Procurement of goods is centralized in Bangkok. Tenders are advertised locally and both foreign and local suppliers and contractors bid on them. Waterworks equipment is from manufacturing countries, Japan, UK, USA and Federal Republic of Germany. Orders are generally placed after competitive bidding, with awards going to the lowest bid that meets the bid requirements and specifications. Locally manufactured goods are given a price preference over for6ign goods unless in the judgement of the bid evaluators, the difference in price is too great. The local price preference for bid evaluation should be established and made known to all bidders. The following items are manufactured or are available in Thailands asbestos cement water pipe up to 16 inches in diameter; PVC, black iron and galvanized pipe up to 4 inches in diameter; stainless steel well screen; hand pumps; filter sand and gravel; cenent, alum, lime and chlorine.

17. There is a surplus of revenue over cash operating expenses for the collective water systems owned and managed by the PWWD. Some of the smaller systems have deficits, which are made up from the surplus of other systems. This surplus accumulates in a revolving fund account, which is insufficient Annex 7 Page 7 to cover depreciation. From FY' 1967 to FY 1971, the revolving fund financed capital expenditures amounting to B 57 million (US$ 2.7 million). This amount represented about 7½ of total expenditures over the five-year period. Not all expenditures of operating the water systems flow through the revolving fund account. Some (such as head office salaries) are paid through the Divisional budget, and certain services such as purchasing are provided by other divisions of the Department of Public and Municipal Works. A revenue and expense statement for FY 1971 is given inTable 2, showing that revenues are B 64.3 million (US$ 3.1 million), and estimated expenditures, including depreciation B 78.5 million (US$ 3.8 million). The estimated operating loss of B 14.2 million (US$ 0.7 million) indicates that revenues would have to be increased by about 20% to cover total operating expeinses.

18. Capital expenditures are undertaken without adequate financial evaluation. lhe prospect of incremental revenues covering capital and other expenditures does not seem to be assessed. Least-cost alternatives for capital expenditures have also not been given adequate consideration. These factors,, combined with low utilization of facilities provided on the relatively small water systems, create a situation wherein it will always be very difficult to achieve satisfactory financial results.

19. PWWI) project prcposals are made using NEDB guidelines for the factors to be considered. The guidelines include population to be served, capital and operating costs, and relative water shortage. NEDB screens the expenditure proposals and, in so doing, takes into account PWWD's capability to undertake the proposed expenditure program. Capital ex- penditures undertaken under the Second Plan (1967-1971) amounted to B 750 million (US$ 36.1 million), which provided for the construction of about 50 water systems and the expansion of an equal number. Preliminary figures for the Third Plan (1972-1976) (see Table 3) indicate that expenditures are planned to increase by 20% to B 900 million (US$ 43.3 million) in accordance with the policy to increase social benefits. This will also provide for about 50 new systems and expansion of 50 other systems. Actual fund allocations for capital expenditures are approved annually by the Budget Bureau. Up to now there has been little difference between the funds requested and those allocated. Based on the present activities being carried out Ln the construction and expansion of water systems, it is believed that the proposed program for the Third Plan oan be achieved. 20. Water charges have been at a rate of B 2 per m3 (US$ 0.38 per 1,000 US gal) since 1956, when the rate was established by the Prime Minister. That rate is much higher than in Bangkok although the income of consumers outside the capital city is probably much less. Neither the water charges in Bangkok or the rate of B 2 per m3 in other cities are set by reference to costs and in both cases the Government contributes (although in a differernt way) to the cost of water supply. Meter readings by PWWD are made monthly and bills sent out soon thereafter. Bills are paid to collectors. Collections are good; at the end of FY 1970 receivables were less than 10% of billings for the year. The PWWD accounting and auditing staff is corpetent to maintain rtecords, prepare financial statements, and control the records and reports of the water systems. The systems' accounting records are Annex 7 IDage maintained on a uniform basis and local staff are trained at the Bangkok office. Expenses are controlled through governmental budget systems. Effort has been directed to maintaining reliable records and safeguarding funds; accounting as a management tool has not been developed. Rural Water Supply 21. Govermnent organizations active in rural water supply may be divided broadly between SED, responsible for communities of 500-5,000 population, and eight other organizations active in the small communities of under 500 population (paragraph 25). Thailand's rural population live in some 45,000 villages with an average population of 6oo. At the outset of the Second Plan few villages had public water supply; when the Plan is completed about 10,000 villages will have some kind of water supply. Details of expenditures under the Second Plan are not available. Preli- minary figures for the Third Plan indicate that about 20,000 villages will be covered at an estimated cost of B 1,247 million (US$ 60 million). Past performance suggests that the target of 20,000 villages may be more than can be accomplished although better coordination between the organizations active in the rural sector should increase the number of projects which can be completed. The following table shows the planned expenditures by year and organization: Local Public Royal Ir- Fiscal Adminis- Public Health rigation Mineral Year tration Works (D Dpt. ARD Resources Total - ____------Bahts million ------

1972 25.5 41.4 44.0 12.2 27.3 76.3 226.8 1973 25.5 47.2 49.0 14.3 29.1 75.5 240.6 1974 25.5 53.8 55.0 16.3 25.9 75.8 252.3 1975 25.5 50.0 60.5 18.3 22.8 75.4 252.5 1976 25.5 68.o 66.o 20. 19.6 75.7 275.2 127.5 260.4 274.5 81.5 124.7 378.7 1,247.h

22. SED is responsible for piped water supplies to about 17 million people residing in villages and towns with 500 to 5,000 population. Most of its staff are at Khon Kaen in northeastern Thailand, but it also has offices in other regions. While SED occasionally uses wells drilled by the Department of Mineral Resources, it mainly designs and builds iron removal and surface water plants and provides distribution facilities. SED became active in 1966, initially in the northeastern region, as part of a program supported by financial assistance from the United States. During the first five years about 32 installations were built each year. Since then its activities have been extended to cover the entire country. SED needs technical assistance to improve its capability to evaluate the suitability of plant designs that are now based on standards developed by an outside consulting firm. If this is done, future plants might be less costly and could be more efficient. When SED water systems are oopleted, they are turned over to the community to operate. SD staff trains the plant operators and sometimes visits the plants to advise on operations and maintenance problems. Lack of money and skill often result in plant inefficiencies and breakdowns. Annex 7 Pag e 9

23. The capital costs of the plants are financed by central govern- ment grants and local contributions averaging about 25% of the costs. Most villages obtain their water frmi public taps and pay a flat rate. The flat rate for house connections is higher. Fees are difficult to collect, particularly in the rainy season when water is easily available from other sources. Something on the order of 40% of central government financing of capital costs has been provided by USAID which contributed about US$ 4.0 million from 1966 through 1970. Preliminary figures for the Third Plan indicate that the central government plans to spend B 274.5 million (US$ 13.2 million) to build about 25 systems a year. Although as mentioned above reliable expenditure figures for the Second Plan are not yet available, there is every indication that expenditures planned for 1972-1976 are higher. As the USAID financial assistance to SED was terminated recently, there is some doubt whether funds will be available to meet the planned level of expenditures. Better use of the available funds could be achieved by concentrating on groundwater sources which would be more economical than surface water supplies.

24. SED also manages a small revolving fund to help some communities finance their share of water supply costs. The funds provided are loaned to sanitary districts that have limited taxation powers; this is the first step in their becoming a municipality. There are about 700 sanitary districts. They can own wad operate water, sewerage, garbage and refuse systems and also slaughterhouses. The 5D revolving fund provides the local share of capital costs which is to be repaid over 8 years at 5% interest. Water Supply for Communities under 500

25. The activities of the agencies involved in rural water supply of the small communities are set out below: (a) The Ground Water Division of the Department of Mineral Resources has about 25 large well-drilling rigs, mostly rotary. A few of these rigs are in other regions but the majority are in the northeastern region, where there have been the worst water shortages. The division's program started by drilling exploratory holes about 100 meters deep where, if satisfactory water was encountered, a 4-inch or 6-inch casing with a hand puwp was installed. The drilling goal is 25 wells per rig per year or about 600 wells, Emphasis now is on producing wells and not just exploration. Maintenance of hand p uma has been a problem. Of the wells drilled, only a little over half are in service. The large drilling rigs could be better used for large production wells in municipalities and large villages where the need for equLpment of this type justifies its cost. For small wells with hand pumps less expensive equipment' would be preferable. (b) The PWWD has 14 large drilling rigsj that operate outside the northeastern region0 It also drills small wells for hand pumps although the equipment can drill la!rge-capacity wells. About 200 wells are drilled each year, with an average depthof 80 meters. The wells have 4-inch or 6-inch casing with hand pupps. About 80% of the holes drilled are successful wells. Annex 7 ape 10

(c) The Accelerated Rural Development Program (ARD) has 6 well-drilling rigs capable of drilling large-capacity wells. The ARD program also improves or digs shallow wells, constructs ponds, and builds a few reservoirs and infiltration galleries. During the Second Plan period ARD provided about 1,500 shallow wells, 300 drilled wells and 400 ponds. During the Third Plan period AIM hopes to provide about 1,000 shallow wells, 3,000 drilled wells and 2,000 ponds. Its operations are all in the counter-insurgency or sensitive areas of the northeastern and northern regions. The USAID program supplied about US$ 400,000 in co=modities in US FY 1971.

(d) The Community Health Development Division of the Department of Public Health has a village sanitation component in its overall program. The division has developed a locally built, portable and manually operated jetting rig that can drill a 2 to 4-inch hole to a depth of about 30 meters. These rigs are inexpensive and can be made from locally available materials; their operation is simple and is quickly learned. A few of these rigs are being used to drill wells at village health centers and schools. The wells are equipped with hand pumps or small power pumps, and a small elevated tank of 600 gallons with a limited distribution system is sometimes installed. No financial estimates were available; most of the costs are financed by the villagers. As this is the best and most promising of the rural water supply programs thus far developed, every province should have several of these rigs. The program should be expanded to provide more rigs and to set up a training program in their use.

(e) The Department of Community Development operates mainly in the northeast, with some activity in sensitive areas in the southern border provinces and elsewhere. Funds are granted for village improvements including shallow dug wells and small ponds. This is a self-help program; while it provides same water in water- short areas, better results at less cost could likely be obtained by concentrating on dug or jetted wells with hand pumps.

(f) The Department of Local Administration provides funds for local self-help projects outside the northeastern region. These projects include shallow wells, ponds, cleaning of ponds, and storage tanks. Fixed amounts are allocated for each project and if more is required it must come from the village concerned. Construction is by local labor or contract. Most of these water supplies are of doubtful sanitary quality, and again in most cases better results at much less cost could probably be obtained with a small jetting rig, or dug wells.

(g) The Royal Irrigation Department has built a number of small ponds or tanks in the water-scarce areas of the northeast. These are general purpose ponds but some have been equipped with a small percolation well and are being used for a water supply.

(h) The Border Police Patrol digs and jets shallow wells for small rural settlements in the northeast and for the hill tribes in the Annex 7 Page 11

northern provinces. This is a limited program to meet the urgent needs of water-short areas.

The activities of these eight agencies should be reviewed to determine the best future program and use of funds. As better program coordination is needed (see paragraph 21), the review should consider whether consolidation would lead to better results.

Sewerage

26. There! is no separate domestic sewerage system in ThailandV but liquid household wastes are collected by street storm-water drainage systems. Human wastes go into latrines, septic tanks or leaching cesspools. Effluent from septic tanks may also drain into storm-water systems. The standard street storm-water drain is built when the street is paved; the drain is under the sidewalk on both sides of the street and manholes are provided every 6 meters for ease of cleaning and possible connections. The manholes are built of reinforced concrete and are very expensive. The pipes are not laid on adequate gradients for self-cleaning velocities, and this causes continuous maintenance problems.

27. An engineering study should be made to develop improved design standards for street drainage systems and separate domestic sewage collection systems. The study should consider standard practice in other countries and develop the least-cost design suitable for conditions in Thailand. Sector Problems

28. The major technical problem in both urban and rural water supply is the failure to develop groundwater as the least cost source of water. There are several technical reasons for this: (a) Groundwater data is limited and difficult to interpret.

(b) Large rotary rigs have been used for the extensive exploratory work in the northeast,. For exploratory work in alluvial or unconsolidated formatLons where the depth of well is not too great, simpler percussion or jetting equipment is less expensive and has many advantages. The large truck-mounted rotary rigs require an access road; hence they cainnot easily reach many locations. Small portable rigs could be carried to otherwise inaccessible locations to drive a screen and casing, take frequent core samples and test each aquifer separately as the well progresses. (c) Many wells have not been properly designed, and consequently the screen becomes blocked, the wells have a short life, or they pump sand lwhich ruins pump a and bearings. I|When core and water sinples are taiken from each aquifer, a well can be properly designed with the right screen material and correctl size of slot and gravel pack so that the well will deliver sand-free water for many years. 29. The present lack of control of Thailand's water resources operates against the pubLic interest. The government should develop and allocate

P A WHO consultant is designing a separate sewer system for Khon Kaen. Annex 7 Page 12 water so that maximum econamic benefits can be achieved. As groundwater is not found everywhere, the water supply agencies should be authorized to explore in those areas where a good producing aquifer is most likely to be found. They should have authority to explore on privately owned land, paying the owner promptly for any loss or inconvenience. Whenever water in quantity is found, it is extremely difficult to acquire the land for a producing well at a fair price. Taking over privately owned land is a long and involved process, requiring Parliamentary review and approval of each case.

30. Drilled wells near Bangkok that are supplying industries are pumped so heavily that salt water is drawn into the aquifer. With no regulation of the rate and quantity pumped per day, the aquifer will be ruined for all users. The allocation of water to meet competing demnand is already a problem at Korat, where surface water is needed during the dry season for both irrigation and city supply (see paragraph 10),

31. The Chon Buri area, which does not have an abundant water supply, may be the site of a steel mill and a petro-chemical plant; if designed to treat and recycle processing water, their demand for water could be greatly reduced. This may be too costly if an existing mill or plant has to be modified but could easily be done before they are built. F-arthermore, reducing the volume of waste water would make treatment to prevent pollution easier and less costly. While water pollution is not yet a serious problem in Thailand, with increasing urbanization and industrialization the control of waste water is rapidly becoming a necessity. Water being a valuable national resource, it should be used in the best interests of the country as a whole. Therefore, a national policy along with appropriate legisla- tion is needed to control surface, ground and waste water.

32. The water supply programs need technical assistance in particular areas. For example, specialist help is needed in the design of rapid sand filters, and the usefulness of small surface reservoirs and ponds for potable water supplied should be investigated. A critical review is also needed to develop better organization and coordination in order to achieve more effective use of available funds.

33. Training is needed for all categories of employees and should be tailored to meet the needs of Thai personnel in the context of their particular problems. A small applied research facility is needed to develop solutions to local problems.

34. Capital improvements are paid from the national budget. Ln those cities where the water system is owned by the PWWD, the rates charged do not pay back the capital costs. In municipally-owned water supplies, capital improvements are funded by a grant, not a loan. If more municipal funds could be generated to help finance all or part of the capital costs, the national budget could finance more water supply and sewerage projects else- where.

Future Development

35. The long-range objectives of the national water supply program are not spelled out. However, it appears that most of the urban population Annex 7 Page 13 are to be supplied with a house connection within ten years. In the same period, the majority of the rural population are to be provided reasonable access to an improved water supply. Reasonable access was not defined but in the case of rural communities would probably mean within 200 meters. On the basis of experience during the Second Plan period (1967-1971), it seems doubtful whether this can. be accomplished within ten years; it is likely that at least another ten years will be required. 36. It is estimated that public water supplies are available to about 33% of Tlailand's urban and 15% of the rural population. At the end of the Third Plan in 1976, budgeted funds should permit these percentages to increase to about 60% and 40% respectively. The amounts budgeted for capital improvements of urban and rural water supplies are about equal. More effective utilization of the funds would increase the percentage of population served. Reduced foreign exchange assistance, especially from the U.S. makes it uncertain whether the amounts now budgeted will be forthcoming.

37. There are a nunber of problems deserving special attention, and the studies set out below are recommended to help the government work out approaches or solutions to thexn (see Annex 10 - Preinvestment Studies): (a) Development of a groundwater exploration and development program to reduce the cost of water supplies.

(b) Establishment of a national water resources allocation policy, including the necessary legislation to realize the maximum economic benefits from ground, surface and waste waters. (c) Analysis of aU water supply agency programs, leading to an effective coordination and adoption of procedures for achieving the most efficient use of funds. (d) Estztblishment of a training program for all personnel categories and also an applied research and pilot plant demonstration facility. (e) Adoption of a policy and procedure for financing capital improve- ments through loans instead of grants. A study should be made of water rates and other charges so that the revenue generated will begin to pay for capital as well as operating costs. 38. The Executive Committee of the Rural Community Water Supply Program (paragraph 12) now includes representatives of all organizations concerned with water supply. The word "rural" should be deleted from the committee's title and its role should be expanded to cover all potable water supplies except those of the Bangkok Metropolitan Water Works Authority. The committee could set up working sub-committees to participate in the pre-investment studies 39. External assistance may be technical, financial or both and could be from either a number of sources or a single source: (a) WHO has given technical assistance through the assignment of sanitary engineers as consultants to the various water supply Annex 7 Page 1b

agencies. At present three WHO consultants are working in the sector--two assigned to PWWD and one to SED. They have broad experience and good training and can be of great help in bring- t ing the experience of other countries to bear on Thailand s water problems. b) Some countries have offered Thailand bilateral credits for water supply projects. Usually these offers are "tied" loans; they include financing of feasibility studies to determine overall design and preliminary cost estimates. Upon agreement to proceed, the detailed design and cost estimates are worked out and the project is built as a turnkey job. Thirteen feasibility studies were recently completed and the mission was asked to review some of them. Four cities were studied by a Danish sanitary engineering firm, eight by a Japanese team of engineers, and one city was studied by a French engineering group. In all their reports groundwater as a source is disregarded. In some instances there was a lack of data on groundwater but no recommendations were made on the need for test borings. The demand projections in these feasibility studies are high estimates and the designs do not result in the least-cost solution. The approaches used are typical of similar studies done in many other areas of the world, and point to the need for proper terms of reference to guide the consulting engineers. The studies should include a financial and economic section indicating, among other things, the incremental rate of return on the proposed investment and the ability of the people to pay the rate required to repay the capital costs. Since bilateral loans or credits must be repaid, bilateral aid projects should be given careful scrutiny to ensure that costs are reasonable in relation to benefits. c) External Financial Assistance: The PWWD has already selected a group of projects for expansion or construction during the Third Plan period. Before any of these make up a package of works com- prising a project suitable for external financing, the feasibility studies already made should be reviewed to (i) consider all alternatives and show that the least-cost solution has been arrived at; (ii) demonstrate that consideration has been given to the economic size of the project; and (iii) show that projected revenues are reasonable in relation to costs, consumer ability to pay and need to mobilize funds for investment. The total foreign exchange required for all PWWD projects in the Third Plan period is estimated to be not over US$ 8.0 million. Any group of projects considered for external assistance would probably not require more than US$ 3.0 million in foreign exchange. TABLE 1 Page 1 Of 7 pages

frovincial Water Wlorks Under the Management of

The Public and M4unicipal Works Department

1.*Water Works,end of 1970 117

2. New construction, to be operated in year 1971 14

3. Under construction in 1971 13

Total 144

Concession Water Works

1. Municipal Water Works (M) 21

2. Sanitary District Water Works (s) 14

3. Private Water Works (P) 10

Total L TABLE 1 Page 2 of 7 pages

Provincial Water Works Under the Management of The Public and Municipal Works Department

1971

Year Owner- Con- Popula- Capacity Consumers Water Works Ehip structed Source of Raw Water tion m3/day (Meters)

Kanchanaburi M 1956 Mae Klong River 17,200 2,880 1,419 Chai Nat M 1958 Chao Phraya River 6,940 1,920 843 Bang Bua Thong M 1959 Khlong Prapimal 9,210 2,400 526 Kui Buri S 1969 Khlong Kui Buri 5,050 960 205 Prachuap Khiri Khan M 1963 Khlong Ban Boung 8,950 2,400 555 Pathum Thani M 1962 Deep Well 5,550 960 296 Phetchaburi M 1956 Phetchaburi River 28,700 4,800 2,948 Hadchaosamran S 1955 Reservoir 3,410 120 54 Ban Laem S 1969 Phetchaburi River 12,900 1,920 201 Ban Pong M 1956 Mae Klong River and Deep Well 22,100 5,760 1,619 Pak Tho S 1969 Mae Klong River 3,870 480 268 Damnoen Saduak S 1970 Deep Well 9,700 960 83 Lop Buri M 1967 Irrigation Canal 33,700 12,000 1,344 Pibul Songkram 1955 Irrigation Canal 5,760 Ban Mi M 1961 Irrigation Canal 4,990 1,440 437 Samut Sakhon M 1958 Deep Well 11,600 5,280 844 Samut Songkhram M 1957 Deep Well 27,500 1,080 786 Suphan Buri M 1956 Suphan Buri River 20,400 1,920 1,769 Poh Pra Ya S 1966 Suphan Buri River 3,690 4,800 - Si Prachan s 1972 Suphan Buri River 6,650 960 - Sing Buri M 1960 Chao Phraya River 10,000 2,880 1,081 Sing (Bang Rachan) S 1971 Deep Well 17,600 1,920 - Ang Thong M 1960 Chao Phraya River 7,410 2,400 761 Pa Mok M 1971 Chao Phraya River 10,200 1,920 - Sena M 1960 Noi River 5,530 1,440 510 Phak Hai S 1972 Deep Well 14,000 960 - Chanthaburi M 1962 Chanthaburi River 20,500 2,880 1,793 Khlung M 1963 Khlong Soeng and Khlong Throknong 6,790 1,440 312 Tha Mai M 1971 Chanthaburi River 7,770 1,920 - Chachoengsao M 1962 Khlong Ta Kai and Khlong Nakorn Neong Ket 24,000 4,800 1,735 Bang Khla M 1962 Khlong Ta Lat and Reservoir 6,480 1,440 487 Phanom Sarakham S 1970 Khlong Ta Lat 6,620 960 101 Chon Buri M 1961 Bang Pra Reservoir 81,680) 14,652 Bang Saen (Saen buk) S 1950 Bang Pra Reservoir 26,200) 20,640 1,135 Si Racha M 1961 Bang Pra Reaervoir 16,400) - 1,697 Bang Pra S 1961 Bang Pra Reservoir 6,740) - - TABLE 1 Page 3 of 7 pages

Year Owner- Con- Popula- Capacity Consumers Water Works snip structed Source of Raw Water tion m3 /day (Meters)

Bang Bung S 1967 Lam Huai Mafai 6,o80 480 241 Phanat Nikhon M 1958 Huai. Yayh Khag and Reservoir 12,500 1,440 521 Na Glua S 1971 Reservoir 18,200 1,920 - Trat M 1962 Khlong Tha Pra 8,420 2,400 881 Khlong Yai S 1972 Reservoir 4,600 480 - Nakhon Nayok M 1958 Nakhon Nayok River 9,080 2,880 758 Ban Na S 1971 Irrigation Canal 8,640 960 - Prachin Buri M 1958 Prachin Buri River 16,800 2,880 1,270 Aranyaprathet M 195b Huai Mahosote and Deep Well 15,600 2,400 592 Kabin Buri M 1967 Prachin Buri River 4,900 960 391 Rayong M 1962 Boung Sri Phet and Reservoir 20,L00 2,880 1,332 Kalasin M 1962 Irrigation Canal and Reservoir Huai Sitol 17,000 2,400 828 Boa Khao S 1967 Reservoir 6,840 240 154 Yang Talat S 1970 Reservoir 3,720 960 49 Khon Kaen M 1955 Huai Kud Kaong and Irrigation Canal 33,700 21,600 3,697 Ban Phai S 1965 Kaeng Lawa and Reservoir 17,100 2,880 820 Chum Phae S 1971 Lam Nam Chearn 13,500 1,920 - Khao Suan Kwang S 1972 Reservoir 12,500 960 - Chaiyaphum M 1958 Huai Saew 16,500 2,880 1,594 Ban Kai Moon Paew S 1972 Lam Chee 6,140 960 - Buriram M 1959 Huai Cholakae Mak and Reservoir 18,800 2,880 1,182 Lam Phai Mat S 1972 Reservoir 5,400 960 - Nakhon Phanom M 1960 Khong River 18,700 4,800 1,867 Mukdahan S 1965 Khong River 16,900 960 568 That Phanom S 1967 Deep Well 16,700 480 386 Ranunakhon S 197% Khong River 6,300 960 - Pak Chong S 1963 Lamtakhong 27,600 2,400 1,250 Nai Muang S 1971 Mun River 9,000 1,920 - Chok Chai S 1972 Irrigation Canal 9,770 960 _ Muang Pak S 1972 Irrigation Canal 7,850 960 - Maha Sarakham M 1958 Huai Kakang 23,000 4,800 948 Borabu S 1967 Huai Chiang Kam Reservoir 4,980 480 179 Roi Et M 1958 Huai Ya Ma Reservoir 19,900 2,880 1,269 Loei M 1959 Lam Nam Mharn and Loei River 10,600 1,440 819 Chiang Khan S 1969 Khong River 6,540 960 218 Wang Sapung S 1971 Loei River 9,880 1,920 - Si Sa Ket M 1958 Huai,Sam Ran and Huai Khlar Reserv. 12,200 2,880 880 Sakon Nakhon M 1958 Nhong Han 21,300 3,840 1,530 Sawang Daen Iin S 1969 Huai Yang Reservoir 8,560 960 207 TABLE 1 Page 4 of 7 pages

Year Owner- Con- Popula- Caqpacity Consumers Water works ship structe.d Source of Raw water tion rt/day (Meters)

Surin M 1958 Huai Sanaeng 19,100 3,840 1,765 Sikhoraphum S 1970 Reservoir 4,200 960 _ Nong Khai M 1959 Khong River 30,000 5,760 2,081 Bungkan S 1970 Khong River 7,250 960 101 Udon Thani M 1955 Nhong Pra Chak and Khong zam Roang 58,900 9,840 4,292 Udon Ratchathani M 1958 Mun Noi River 40,400 14,880 3,325 Warin Chamrap M 1959 Nhong Kud Ban and Mun Noi River 25,200 2,400 761 Yasothon M 1968 Chee River 16,000 1,920 580 Phibun Mangsaharn M 1969 Mun River 10,400 960 208 Loeng Nok Tha S 1969 Lam Seaka 3,790 960 71 Bung (Amnnat Charoen) S 1969 Huai Phladak Reserv. 12,800 960 191 Det Udom S 1971 Lam Dome Yai 11,400 1,920 - Khemrat S 1972 Khong River 6,180 960 - Kamphaeng Phet M 1956 Ping River 14,200 1,920 699 Phran Kratai S 1971 Deep Well 5,100 480 - Chiang Rai M 1956 Kok River 17,000 2,880 1,281 Phayao M 1958 Phayao Reservoir 22,400 2,880 1,154 J:.ae Sai S 1969 Mae Sai River 9,010 960 265 Muang Phan S 1971 Irrigation Canal 8,550 960 - Chiang Mai M 1956 Ping River and Irrigation Canal and Reservoir 91,900 14,880 4,390 Thakham S 1970 Mae Chaem River 3,430 480 52 San Kamphaeng S 1971 Deep well 14,300 1,920 - wiang Fang 3 1972 Mao River 10,200 1,920 - Tak M 1957 Ping River 18,700 2,880 1,478 Mae Sot M 1967 Moei River 13,600 1,920 537 Nan M 1957 Nan River 18,600 2,880 945 Phrae M 1958 Deep well 18,000 3,840 1,857 Den Chai S 1967 Irrigation Canal and Yom River 5,980 480 284 Song S 1972 Yom River 11,100 1,920 - Phichit M 1959 Nan River 12,900 2,880 1,090 Bang Mun Nak M 1958 Nan River 11,600 1,920 782 Taphan Hin M 1958 - Nan River 16,600 1,920 1,135 Phetchabun M 195b Pa Sak River and Reservoir 8,000 2,880 1,136 Lom Sak M 1957 Pa Sak River 11,100 2,880 977 Nong Phai S 1969 Pa sak River 6,470 960 303 Mae Hong bon M 1970 Mae Hong Son River 4,430 960 34 Mae bariang S 1970 Yom River 4,210 960 36 Lamphun M 1956 Kuang River and Deep Well 11,700 2,880 771 Lampang M 1950 Wong River and Irrigation Canal and Reservoir 42,200 9,840 2,641 Sukhothai M 1956 Yom River 16,600 2,880 1,267 Sawankhalok M 1956 Yom River 9,790 2,880 950 Thung Luang S 1972 Deep Well 9,020 960 - TABLE 1 Page 5 of 7 pages

Year Owner- Ccin - Popula- Capacity Consumers water W4orks ship structed Source of Raw Water tion m3/day (Meters)

Krabi M 1596, Khlong Krabi Yai 8,660 2,400 552 Chumphon M 1960 Khlong Tha Ta Pao 14,400 2,880 1,138 Lang Suan M 1967 Lang Suan River 4,320 480 207 Trang M 1962 Tha Chin River 34,700 4,800 666 Kantang M 15956 Shallow Well and Tha Chin River 7,680 1,440 652 Huai Yot 5 1964 Trang River 6,140 1,920 358 Yan Ta Khao S 1972 Khlong Lam Phikul 6,050 960 - Pak Phanang M 1956 Khlong bukum, Khlong Dan Prap and 15,100 1,920 691 Pak Phraek M 1961 Khlong Tha Phae 14,800 2,880 759 Narathi.wat M 15957 Shallow Well and Khlong Ya Kang 24,400 1,440 455 bungai Kolok M 1964 Kolok River 16,200 4,320 556 Ruso S 1970 Sai Buri River 5,820 960 7 T.qluban M 15'67 Sai Buri River 8,200 1,920 128 Phang nga M 1963 Pak Tone Waterfall 8,290 1,440 253 Takua Pa M 1961 Bang-e Waterfall 8,630 1,440 339 Phattalung M 1956 Khlong Tam Nan and 13,300 2,880 904 Na Thom Irrigation Ditch Phuket M 1956 Bang wad Reservoir 37,700 1,920 1,977 Betong M 1960 Khlong Betong 1,700 2,400 559 Yaha S 1966 Khlong Tachi 2,210 480 78 Ranong M 1961 Khlong Had Som pan 10,300 2,400 909 Songkhla M 1960 Hat Yai Water work 47,300 1,920 1,112 Hat Yai M 1957 Khlong Uta Phao 57,300 13,920 1,885 and Deep well Sadao M 1966 Khlong Nam Lad 9,460 480 239 Satun M 1960 Khlong Piman 9,950 2,400 465 Surat Thani M 19)56 Phunphin water Work 34,500 960 2,159 Phunphin (Thakham) S 1965 Khlong Pum-Duang and Tapi River 11,300 10,800 432 Na san M 1967 Khlong Cha Wang 13,800 1,920 168 TABLE 1 Page 6 of 7 pages

Concession Water Works

1971

Year Owner- Con- Popula- CSpacity Consumers water works ship structed Source of Raw water tion m /day (Meters)

Tha Muang P 1960 Deep well 10,700 200 414 Don Chimphlee P 1963 Deep well 3,200 400 121 Rat Burana S 1960 Deep well 58,100 600 428 Bang Khae S 1959 Deep well 47,500 1,200 3,027 Nakhon Pathom M 1952 Deep well 38,300 15,514 4,731 Sam Phran S 1963 Deep well 71,700 2,400 549 Kamphaeng Saen P 1964 Deep well 4,170 200 149 Lam Luk Ka S 1961 Deep well 4,650 48 67 Hua Hin M 1959 Reservoir 23,700 2,400 - Bang Kapi S 1960 Deep Well 70,200 800 315 Lat Krabang S 1959 Deep Well 14,000 200 251 Minburi S 1960 Deep well 41,400 1,000 468 Bang Khane S 1962 Deep well 108,600 1,300 577 Ayutthaya M 1939 Chao Phraya River 42,000 4,800 3,894 Tha Rua M 1969 Pa Sak River 6,430 200 438 Khok Muang S 1964 Khlong Raphiphat 5,350 400 401 Tha Luang S 1971 Pa Sak River 8,970 500 - Ratcilaburi M 1959 Mae Klong River 34,000 3,840 2,645 Photharam M 1955 Mae Kiong Piver 9,710 600 1,246 Lopburi M 1941 Deep Well 33,700 1,700 1,950 Lam Narai p 1963 Pa Sak River 7,150 480 441 Samut bakhorn M 1955 Deep Well 39,000 4,733 2,622 Krathum Baen M 1950 Deep well 9,490 720 807 Saraburi M 1954 Pa Sak River 30,200 1,200 2,o85 Kaeng Khoi M 1954 Pa Sak River 9,320 400 802 Ban Mo S 1966 Irrigation Canal 5,060 400 273 Ban Khrao (Ban Mo) P 1965 Irrigation Canal 5,060 4,000 173 Phosunko P 1965 Deep well - 400 107 Nakhon-Ratchasima M 1941 Lam Takhong 90,100 24,000 6,824 Sikhiu S 1965 Lam Takhong 10,100 400 447 Bua Yai M 1971 Lam Huai Ban-lan and Boung Bua Yai 13,500 400 - Nakhon Sawan M 1941 Chao Phraya River 50,300 6,0oo 5,194 Takhli S 1967 Irrigation Canal 12,500 800 783 Chumsaeng M 1969 Nan River 13,800 800 601 Phitsanulok M 1954 Nan River 44,200 3,200 4,250 Wong Khong P 1968 Nan River 7,470 200 553 Phu Toei P 1967 Deep well 6,310 800 138 bup-somo-tot P 1968 Deep Well 7,870 800 105 Phichai (Nai Muang) P 1958 Nan River 2,320 200 163 Uttaradit M 1970 Nan River 14,000 1,600 965 Uthai Thani M 1955 Sa-Kae-Krang River 10,900 1,056 1,375 TABLE 1 Page 7 of 7 pages

Year Owner- Con- Popula- Capacity Consumers water works ship structed Source of Raw Water tion m'/day (Meters)

Nakhon Si Thamnuarat M 1961 Khlong Thadee 46,100 1,600 1,554 Tan-yong-mut S 1963 Khlong Tan-yong-mut 5,180 400 - Pattani M 1955 Deep well 26,100 2,000 1,239 Yala M 1956 Pattani River 38,300 3,840 1,715

NOTE: Consumeir (meters) is the amount in 1970.

TABLE 2

PUBLIC AND MUNICIPAL WORKS DEPARTMENT

PROVINCIAL WATER WORKS DIVISION

Statement of Revenues and Estimated Expenses Relating to Operation of Water Works

FY 1970

Million Bahts

REVENUES 64.3

EXPENSES

Paid through Revolving Fund 43.9

Salaries Paid through Divisional Budget 8.o

Depreciation on Items Financed

(a) through Revolving Fund (Note 2) 13.4

(b) through Capital Grants 13.2

78.5

LOSS 14.2

NOTES:

1. Expense figures should be regarded as indicative only. In particular, the expense of purchasing and other financial services provided by other divisions of the Department are not included.

2. The early financing of assets was through Government funds flowing through the Revolving Fund. Therefore, the figures does not indicate depreciation on assets financed through operating surpluses.

THAILAND

CAPITAL WORKS PLANNED FOR THIRD PLAN PERIOD 1972-1976

Water works to be Ex=anded

Year 1969 Year 1982 Estimates Capacity Rate of Consump- tion Quantity Quantity Expanded Population Consumer Population Lt/pers/ Dmanded I uired P5esent by Budget water works Provinces (Person) (meter) (Person) day m/day m /day m /day m3/day (Baht)

Chong Buri 90,010 6,677 168,000 290 )I8,720 28,080 20,640 24,ooo 46,300,000 Mukdahan Nakon Phanom 14,600 516 22,000 120 2,640 1,680 960 1,920 7,750,000 Pak - Phanang Nakhon-Sithma- rat 14,800 648 18,300 120 2,196 276 1,920 1,920 9,880,000 Sadao Songkhla 18,602 219 25,000 120 3,000 2,520 480 1,920 9,700,000 Phetchaburi-Had- chao-Samran 46,675 2,950 70,015 120 8,400 3,600 4,800 3,840 10,400,000 Lang Suan Chumphon 8,030 174 12,000 120 1,440 960 480 960 9,400,000 Kantang Trang. 6,670 581 9,300 120 1,160 - 1,440 1,920 12,570,000i Chachoengsao 15,000,000- Taphan Hin Phichit 15,700 1,104 23,600 120 2,832 912 1,920 1,920 6,000,000 Phuket 5,000,000 Udon-Thani 5,000,000 Constructing Huai Yai Sanitary water Works Chonburi 2,000,000

Total 139,000,000

1/ Construction Reservoir.

0

CD (a~ Water Works to be Expanded

In the Year 1973

Year 1969 Year 1982 Estimates Capacity Rate of Consump- tion Quantity Quantity Expanded Population Consumer Population Lt/pers/ Demanded R quired P5esent by Budget 3 Water Works Provinces (Person) (meter) (Person) day m-/day m /day m'/day m /day (Baht)

Songkhla-Hat-yai 97,718 2,885 187,000 212 39,644 23,804 15,840 - 37,000,0002! Aranyaprathet Prachin Buri 15,200 536 23,300 120 2,796 396 2,400 - 21,500,000 Kamphaeng Phet 2/ Nakorn Choom 21,276 622 37,000 100 3,700 1,780 1,920 1,920 5,300,000- Ubon-Warin Ubon Ratchat- Chamrap hani 61,200 3,621 100,300 250 25,075 8,755 16,320 12,000 29,700,000 Pak Chong Nakhon Rat- chasima 26,000 1,101 43,000 150 6,450 4,050 2,400 6,000 16,700,000 Ban Bung Chonburi 5,980 226 8,390 120 1,007 527 480 960 6,100,000 That Phanom Nakon Phanom 14,626 333 22,100 120 2,652 2,172 480 1,920 8,030,000 Prachin Buri 15,595 1,167 23,600 150 4,540 1,660 2,880 1,920 6,000,000 Ubon Ratchathani 5,000,000 Lampang 5,000,000

Total 140,330,000

In the Year 1974 Songchla Hat-Yai 98,718 2,885 196,000 212 41,552 25,712 15,840 24,000 28,600,000 Tak 17,400 1,285 27,100 150 4,065 1,185 2,880 1,920 12,160,000 Phi-bun Mang- Ubon Ratcha- sahan thani 9,990 129 13,200 120 1,584 624 960 960 4,350,000 Udon Thani 52,600 3,667 129,000 180 23,220 13,380 9,840 12,000 22,450,000 Chiang-Mai 84,400 3,848 130,000 210 28,300 13,420 14,880 6,000 37,200,000 Rayong 18,500 1,198 50,400 150 7,560 4,680 2,880 6,000 16,700,000 '-u Prachuap Khirikhan 8,548 448 11,300 150 3,700 1,300 2,400 1,920 14,700,000 d @ Den Chai Phrae 5,730 240 9,560 120 1,147 667 480 960 7,000,000 N Suratthani Phunpin 5,000,000 0 Nakhon Phanom 5,000,000 "

Total 153,160,000 o 1/ Laying iron pipe from Hat-yai to Songkhla. 2/ Expanding distribution area to Nakorn choom. co Water Works to be Expanced

In the Year 197k Year 1969 Year 1982 Estimates Capacity Rate of Consump- tion Quantity Quantity Expanded Population Consumer Population Lt/pers/ Demanded Required Present by Budget 3 3 water works Provinces (Person) (Meter) (Person) day ,. d m /day y.3r/uay/ay (Bht)

Sukhothai 16,200 1,145 26,800 150 4,020 1,140 2,880 1,920 12,250,000 Chumphon 13,900 981 20,000 200 4,000 1,120 2,880 1,920 14,000,000 Phanom Sarakham Chachoengsao 6,490 - 10,320 120 1,238 758 480 960 3,650,000 Narathiwat 22,400 380 32,000 120 3,840 2,400 1,440 3,840 20,700,000 Buirirum 17,900 31,000 150 4,650 1,770 2,880 1,920 12,250,000 Chanthaburi Thai-Mai 25,720 1,644 59,200 180 10,656 5,956 4,800 6,ooo 25,960,000 Pak Tho Ratchaburi 3,880 201 4,930 200 986 986506 480 90n 24,000,000 Phanat Nikhom Chonburi 12,000 454 17,800 180 3,204 764 2,440 960 16,600,000 Nong Khai 5,000,000 Chanthaburi Tha-Mai 5,000,000

Total 154,350,000

In the Year 1976

Nong Khai 28,300 1,890 49,100 180 8,838 3,078 5,760 3,840 15,600,000 Suratthani Phunpin 45,940 2,408 74,400 210 15,624 4,824 10,800 6,000 22,600,000 Nasan 12,500 113 21,700 150 3,255 1,335 1,920 1,920 12,500,000 Kalasin 15,900 696 28,700 120 3,444 1,044 2,400 1,920 12,800,000 Betong Yala 16,900 520 30,000 120 3,600 1,200 2,400 1,920 12,100,000 Trang 34,200 584 61,200 120 7,344 2,544 4,800 3,840 19,500,000 Khon-Kaen 32,000 3,384 88,ooo 300 26,400 18,400 18,000 24,000 50.000,000

Total 145,1004000

L't

0o

CI) Water works to be Constructed

In the Year 1972

Capacity Year 1969 Year 1982 Needed Rate of Quantity Population Population Consumption Demanded Prqsent Budget water Works Provinces (Person) (Person) (Lt/pers/day) (m3/day) (m/day) (Baht)

Noon Buri Kalasin 5,780 8,710 120 1,045 960 8,880,000 Pran Buri Prachuap Khiri Khan 9,478 14,200 Paknum Pran Prachuap Khiri Khan 5,279 7,950 120 2,658 3,840 13,570,000 Nong Bua Nakhon Sawan 6,000 8,000 121 960 960 9,270,000 Na Bone Nakhon-si- thammarat 4,150 6,260 120 751 960 6,380,000 Bang Paking-Ta Sa-Am Chachoengsao 7,160 10,700 120 1,284 1,920 15,700,000 Non-bung Nakhon Ratcha- sima 6,830 9,420 120 1,130 960 17,950,000 Laem Sing Chantaburi 15,075 22,700 120 2,724 3,840 28,300,000 Cha-Uat Nakhonsitummarat 5,180 7,800 120 936 960 5,o60,000 Prakhon Chai Burirum 8,892 13,500 120 1,620 1,920 7,450,000 Nua Klong Krabi 3,596 5,460 120 655 960 5,570,000 Toom-Tai Udon Thani 5,450 8,200 120 960 960 7,950,000 Southern Regional Water Works Deve- lopment Center 1,565,000

Total 127 ,64 5,00

0

CD Water Works to be Constructed

In the Year 1973

Capacity Year 1969 Year 1982 Needed Rate of Quantity Population Population Consumption Demanded Present Water - Works Provinces Budget (person) (person) (Lt/pers/day) (m3 /day) (m,3/day) (Baht) Thung Saliam Sukhothai 7,814 12,000 120 1,440 1,920 18,400,000 Pho Thong Ang Thong 6,753 10,300 120 1,236 1,920 7,500,000 Tha Tako Nakhon Sawan 6,290 9,770 Vong 120 1,172 1,920 10,710,000 Chai Khon-Kaen 5,634 8,850 120 1,062 Doembang Nang 960 5,750,000 buat Suphan Buri 6,130 9,530 120 1,144 Sangkhla BuxLn, 960 4,920,000 Kanchana Bu.ri 5,1400 8,390 120 1,007 Sung Noen Nakhon 960 5,500,000 Rachasima 5,410 8,370 120 1,004 960 5,700,000 In Buri Sirgburi 5,400 3,400 120 Tha Pha 408 480 4,100,000 Ratchaburi 9,571 14,800 120 1,776 1,920 Don S&o Singburi 7,500,000 8,869 13,900 120 1,668 1,920 7,100,000 Yang Noeng Chiang Mai 7,160 11,000 120 1,320 1,920 1,565o000 Total 86,245,000

In the Year 1974

Thung Hong Phrae 5,450 8,740 120 Huai Yai 1,049 960 7,500,000 Chonburi 12,700 20,300 120 2,436 1,920 Lom Rat Lampang 12,500,000 11,692 19,200 120 2,304 1,920 7,560,000 San Chao Rong Thong Ang Thong 7,138 11,600 120 1,392 1,920 7,300,000 Tha Luang Ayutthaya 8,488 13,500 120 Ban Phetch 1,620 1,920 7,100,000 Chaiyaphum 5,905 9,600 120 1,152 San Mahaphon Chiang 960 15,000,000 Mai 6,o85 9,840 120 1,18o 960 5,600,000 Bang Toei Pathum Thani 5,755 9,400 120 Nakhon Luang 1,133 960 5,700,000 Ayutthaya 6,020 9,650 120 1,158 96o Ko Kha 6,500,000 p H Lampang 5,754 9,450 120 1,134 Nang Rong Buriram 960 7,900,000 i- 4,760 7,170 120 860 960 5,190,000 Eastern Regional Water Works 1m Development Centre 1,565,00o a

Total 89,355,ooo > Water Works to be Constructed

In the year 1975

Capacity Year 1969 Year 1982 Needed Rate of Quantity Population Population Consumption Demanded Preserrt Budget Water - Works Provinces -person) (person) (Lt/pers/day) (m3 /day) (m/day) (Baht)

Don Khamin Kanchanaburi 5,489 9,050 120 1,086 96o 6,500,000 Tup Krit Nakhon Sawan 5,1h0 8,510 120 1,021 960 5,000,000 Kaeng Khlo Chaiyaphum 9,127 15,40o 120 1,848 1,920 12,300,000 Na Wha Nakhon Phanom 8.516 14,000 120 1,680 1,920 12,300,000 Huai. Oh Phrae 6,837 11,200 120 1,344 1,920 12,600,000 Ban Kruat Burirum 6,190 10,200 120 1,224 1,920 14,000,000 Phaisali Nakhon Sawan 7,750 12,800 120 1,536 1,920 13,100,000 Ban Khwao Chaiyaphum 6,762 11,100 120 1,332 1,920 15,000,000 Central Regional Water Works Development Centre 1,565,000 Total 92,365,000

In the Year 1976

Wiang Chiang Khong Chiang Rai 5,342 9,280 120 1,114 960 5,820,000 Muang Khong Nakhon Ratchasima 5,600 9,470 120 1,136 960 12,700,000 Ron Phibun Nakhon Si Thammarat 5,603 9,580 120 1,150 960 7,100,000 Wang Krot Pichit 5,110 8,680 120 1,063 960 6,100,000 Wang Thong Phitsanulok 5,377 9,210 120 1,112 960 12,300,000 Huai Khao Kum Chiang Rai 7,591 13,000 120 1,560 1,920 12,500,000 Sae Nakhon Ratchasima 5,819 9,900 120 1,188 960 12,000,000 Pa Tun Na Khrao Lamnpang 8,386 11,400 120 1,368 1,920 12,000,000 Pong Chiang Rai 5,992 10,300 120 1,236 1,920 13,000,000

Total 93,520,000

(0 Annex 8. URBAN DEVELOPMENT

TABLE OF CONTENTS

Page No.

I. Bangkok and the towns of Thailand 1

II. The Present Situation in Bangkok 5

III. Recent Efforts to Cope with the City's Energing Problems 9

IV. Present Public Services 12

(a) Transport System 12 (b) Water Supply 12 (c) Drainage, Sewerage and Flood Control 13 (d) Elec-tric Power 13 (e) Telephones 14

V. Third Plan Proposals 15

VI. Comments and Recommendations 21

Table 1

Figure 1

Map

Annex 8. - URBAN DEVELOPMENT

I. Bangkok and the Towns of Thailand

1. The country of Thailald might be described as the hinterland of the great city of Bangkok.l/ From its founding in 1782, it has been the residence of the King, the seat of government, the principle port, center of finance and commerce and home of the ruling elite. From the beginning, Bangkok has been the center of Thai culture and authority. For many Thais, its increase in size and wealth and power have been synonymous with the growth ana prosperity of Thailand.

2. Bangkok was founded by King Chakri (knoiwn as Rama I), after the previous capital at Ayuthia 50 miles to the north had been sacked by the Burmese in 1767. The site, a large peninsula formed by a great curve to the west of the Chao Phraya River, was selected partly for military reasons. The river protected the city from attack on the north, west and south, *thile a vast swampy plain protected it from the east. The river provided ready access to the sea by the ships of that day -- and indeed until very recently was adequate for most cargo ships -- and also provided the setting for a system of canals (klongs), which for many years provided the basis for the city's internal transportation and drainage.

3. Bangkok's location proved fortuitous. It controlled the best natural access from the sea to the fertile central plain of Thailand, and under able leadership, the kingdom and the city grew and prospered. By 1850 Bangkok's population had reached h00,000,.and the city had become an importaLnt commercial ceniter. By the early 1900's, the city was a dense set-tlement with a population of 600,000 on a built up area of about 5 square miles. Subsequently, particularly in more recent years, the city has spread out widely in all directions, until by 1970 the municipal area comprised over 110 square miles2Z and held a population of 2.9 million persons.

h. The other urban areas in Thailand are small, but they too have been growing rapidly in recent years. In 1947, 7% of the country's popula- tion was living in towns of 10,000 or more, and over 60% of these were living in Bangkok. By 1970, 1% of the population was urban by this definition, and Bangkok's of this was still about 60%. The growth in urban population outside Banglcok has been reflected in the increasing por- tion of the urban population living in cities of 20,000 and over. This has grown fram 10% in 1947, to 22% in 1960, and 28% in 1970. However, none of these secondary cities has yet reached 100,000 (a size reached by Bangkok in the early 19th century). Bangkok has 33 times the population of Chaing Mai, the next largest city, founcied 500 years before Bangkok. The next four in size to Bangkok have together a population only 10%

1/ In this paper Bangkok refers to the twin cities of Bangkok and Thonburi.

2/ A Isignificant part of this (over 4C%) is not built up, but remains either undeveloped or in use as agricultural land. Annex 8 Page 2 of Bangkok's, the next 9, 15%. The distribution of Thailand's urban population is shown on the map of urban patterns in Thailand.

5. While Thailand's secondary cities are so much smaller than Bangkok as to diminish the importance of changes among them, still it does seem significant that the growth among these cities has shown a definite trend. The trend has favored cities in north, northeast and south, over those in the central region where Bangkok is located. Whereas five of the 10 largest cities in Thailand (including Bangkok) were located in the central region in 1947, by 1970 only two of the cities in this region (Bangkok and Thonburi) were among the largest 10. Each other region increased by one its quota of the 10 largest.l/ This pattern of city growth can be seen as evidence of the daminance of Bangkok in its region -- where only Thonburi has kept pace with the more rapidly growTing cities of the country. It can also be seen as evidence of urban growth in other regions and of a possible potential for further development of secondary cities some distance from Bangkok.

6. Bangkok's size and rapid growth/have been the cause for comment and concern. In 1960 the Litchfield plan_/ for the city's development was for a city of 4,500,000 in 1990. It was proposed that secondary cities be developed to take some of the pressure for growth from Bangkok. The current city plans drawn up by the Town and Country Planning DeparQment of the Ministry of the Interior and by the Division of City Planning of the Bangkok Municipality, both plan for a city of 6.5 million, the former by the year 1990, the latter by the year 2000. Both proposals suggest that measures be taken to promote the growth of other urban centers to ensure that Bangkok will not exceed the proposed design populations.

7. Considering the prospect for a continuing rapid growth of urban population, the present size of Bangkok and the problems already encoun- tered by the city as discussed below, a general case for favoring the growth of seconda-ry cities is not difficult to make. There would seem to be merit in seeking a better regional balance in the development of the country in the inte-ests of long run growth and stability.J However, while favoring such an approach the possible short run effects of the g-owth of secondary cities on the future growth of Bangkok should not be overestimated.

1/ See Table 1 and Figure 1.

2/ Greater Bangkok Plan 2533 (1990), Litchfield 1%Whiting Bowne & Asso-- ciates, Adams, Howard and Greeley (1960).

3/ In countries with strong regional interests this course also has strong political appeal. The situation in Thailand seems rather different. While there does not seem to be strong regional interest in this very centralized country, the threat to political stability, particularly in the Northeast, has been an important influence on government effort3 to promote regional development. Annex 8 Page 3

8. After a period of very rapid population growth throagh the 1950's and early 1960's (average rate 1947-1960, 6.6%), and a substan- tial increase in population as a result of the annexation of new areas in 1965, Bangkok grew at a rate of 3.9% between 1965 and 1970. During this same period, the totaL urban population was increasing at a similar rate, and national population at a rate of 3.1%.

9. Considering that Bangkok accounts for nearly 60% of the present urban population and that the ecanomic basis for very rapid growth can, at best, favor only selected secondary cities, it seems apparent that the effect on Bangkok's growth of rapid expansion of these much smaller cities can only be marginal in the short run. Simply on the basis of the age structure of its present population, Bangkok can be expected to grow at near the national average rate, even if migration to the city becomes insignificant. It is estimated that net migration accounts for about one fifth of the city's annual growth, the rest being attributable to natural increase.l/

10. It might also be pointed out that an extremely large investment would be required to provide in a short time, the community facilities together with the directly productive pls,nt for any really large center of population outside the Bangkok area../ This fact tends to limit the possibility of any strong diversion of Bangkok's growth in the near future. Even though it would probably be desirable from a national point of Niew for other centers to develop as large cities, it seems clear that the effect on Bangkok's growth would not be strongly felt for some time. In the meantime, the city would continue to grow, and the problems of coping with this growth would increase. Actually, there does not seem to be much concern with, or support for, the develop- inent of secondary cities in the Thai Government. As Bangkok daminates the urban landscape with its size, it also dominates the Government's urban concerns with its problems.

II. The 'resent Situation in Bangkok

11. Bangkok today reflects the impact of the growth in population and wealth, and the introduction of the modern motor vehicle and other articles of modern technology on a city originally built for another age. In this respect, it shares an experience ccmumon to many cities in low and high income countries alike. In fact, on the whole, it is probably better off than many other cities in deveJoping countries of Asia. The average per capita income is about $500,1;/ the population is generally prosperous; the slum areas are not as extensive as in other Asian cities;

1/ Source: Bangkok Municipality. 2/ As we shall point out later, the investment requirements of Bangkok it- self are also substantial. 3/ It has been estimated that per capita GDP was about $500 for Bangkok in 1968, the corresporLding figure for the whole country was about $175 and for the whole country, excluding Bangkok, about $14h0. Annex Page L; food is plentiful, housing has not yet become an acute problem, and the city is growing in population and expanding in area. The problems of extreme poverty and social unrest that plague some other Asian cities do not seem to have become significant in Bangkok.

12. However, the development of the city is encountering serious problems. The visible evidence is the traffic congestion, which already seriously affects mobility Ln the city. Not quite so visible are problems with supplying water to the increasing population, and the problem of disposing of waste and sewerage in a large city, which has no central sewerage system.

13. Some of the present problems arise from the nature of the site and the pattern of past development. The site is low-lying, poorly drained, bisected by a large river and cut by numerous canals. The city was originally serviced by the canals for transport and for waste disposal. The first major road was built in 1869, and the road pattern subsequently developed followed the old canals. The canals retained their role with diminishing importance in recent years when some were covered to provide needed road space. The present pattern of roads is strongly influenced by the earlier means of transport. The city con- tains great internal blocks accessible only by narrow lane or canal. Even though the main ones are wide and well paved, the present pattern of roads provides an inadequate framework for the mobility of the rapidly mounting volume of vehicles moving or attempting to move daily through the city. In addition to a layout, which provides only limited alternative routes, the total road surface is small both in terms of the area of the city, and in terms of the traffic it is required to bear.

1h. As the shift from canals to roads is difficult, so also is the problem of drainage and sewage disposal. The soil is heavy and ixnper- vious, wxhich makes drainage difficult, and hinders the efficient operation of septic tanks. Also the flatness of the site and high water level makes construction of drainage and sewerage systems particularly difficult. As the city grows and the canals and river become increasingly polluted, the problem of waste disposal is bound to become more acute.

15. A factor compounding the problem of utilities and traffic is the uncontrolled nature of the city's growth. There is no control over land use neither on what the land is used for nor indeed, whether it is developed at all.1/ This has tended to result in development along the larger roads, pockets of under-developed land throughout large parts of the city, and traffic generation and demands on utility services in a random fashion.-

1/ The taxes on real estate are generally very low; the taxes on undeveloped land are hardly significant at all.

2/ There is some evidence that the increasing traffic congestion is affect- ing land values and use. Land in some of the more congested areas is declining in value and apartments for higher income people being built near the center of the city and the place of work. Annex 8 Page 5

16. In the Thai countryside, homes are built from local wood and thatch, generally by the owner. The gentle climate does not require heavy or expensive construction. Land is cheap, water is available from well or canal, and simple sanitation is adequate. Problems with housing only arise in the city where land is expensive, and the concen- tration of population requires cmmmunity action on water supply and sanitation. Here, housing is mainly a problem of the poor who cannot afford an urban type of dwelling erected on expensive urban land. As a result, a number of poorer city dwellers avoid the full cost of urban housing by erecting cheap dwellings on public land in locaticns accessible to employment. The 'squatter' colonies are a feature of most cities in developing countries. They are generally crowded settlements lacking in adequate public services, and are popularly known as slums.

17. There are no very good estimates of the size of the squatter population in Bangkok. The largest single squatter colony consists of 4,500 households (25 000 people) at Klong Toey on property belonging to the DOrt of Bnngkok.I/ Irt has been estimated that there are 50,000 squatter families in Bangkok, a little more t an 10 times those in Klong Toey and about 10% of the city's population.... This may be an under- estimate of the total housing that might be considered inadequate by Thai standards. Some other estimates are higher. However, perhaps the most important point on which there is general agreement is that the pace of housing construction is not keeping up with demand. The situation is most acute, as it always 'Ls, with accomodation for those in the lowest income group.

18. Some employee housing is constructed by the government and some by private firms. In addition, the government has a program for construct- ing housing for low and medium income families. The former is rented at a subsidized rate. These programs are small: 300 to 600 units a year of low income rental housing, and much less of the medium rent and hire purchase programs, Privalte home builders and developers supply the major share of new housing. For this housing, financing is expansive. Mortgage financing is only available at high rates for short terms. There is no system of mortgage guarantee.

1/ This settlement has been the subject of a study by the Department of Social WJork at Thammasat University. Among the findings, 80% family heads were born up country and moveda to Bangkok, 75% of the inhabitants have lived there for 5 years or morel most all household heads are em- ployed, the median family income is about $60 (1225 baht), one quarter earn $36 or less, and one quarter $95 or more. Although much of the hous:Lng is poor in appearance, the interiors are generally well kept up. In addition tothe physical state of the settlement, there are major deficiences in public services such as education, health services, and piped water.

2/ Many Asian cities have higher squatter populations, e.g. 30% in Manila. Annexy Paget

19. The present government organization is not very well equipped to deal with the great problems of the city. City functions are carried out by many different organizations. The municipality deals with the usual municipal functions except police, traffic control and fire protection, which are under the jurisdiction of the central government. Inectric power, telephones, water supply, and the port are under separate autonomous public organizations. Important roads and bridges in the municipal area are built by the national highway organization. In addition, about one third of the land within the municipal boundaries belong to the King, the crown lands, or various government departments. This sort of dispersal of responsibility is not unusual, particularly where both national and city governments occupy the same city. However, though it is widespread, so are the problems it creates. There is no strong government agency or department with both con- cern and power to act on the city's needs as a whole. On the other hand, the city is wealthy by Thai standards, it is lighj,y taxed, and it is the seat of the national government and also its concern._ In these respects it is fortunate.

20. The challenge of the present problems are serious, and in our view demand a serious response. This will inevitably involve substantial changes in the present way of doing things and a greater degree of control over the city's pattern of growth and the movement of its inhabitants. At the present time, land and real estate taxes are very low and, combined with the absence of land use controls, contribute to speculation in land and in its uneconomic use from the public point of view. Also there is no efficient procedu.re for acquiring land for public use. In addition, the cost of vehicle licenses is low, fuel is relatively cheap and parking rules are not enforced with the result that some of the cost to the community of operating a vehicle in Bangkok is borne by the city. In effect, the space on the cityrs streets, a scarce resource, is allocated through a haphazard process which leads to great congestion. The price system plays a relatively minor role in this process.

III. Recent Efforts to Cope with the City's Emerging Problems

21. Many of the problems Bangkok is now encountering were clearly Iore- seen over 10 years ago when a plan and program of investment was drawn up for the city by a team of foreign experts. 2/ Only a very few of the recommenda- tions made at that time were adopted, and the main proposal for a city plan with a particular pattern of streets and a controlled use of land was never put into effect. It would appear that the concept of zoning and limritin, land use according to plan was, and still is, a very radical idea in a society where the tradition is strong that the owner is free to use his land as he wishes. Contributing factors may have been the absence of anv pro- hibition against public officials owning land and the boom eperienced by

1/ It would not appear that the Bangkok area has been slighted in the overall allocation of public funds in the past, although it could be argued that in retrospect some different distribution of those funds might have been preferable. 2/ Greater Bangkok Plan 2533 (1990) Litchfield Whiting Bowne and Associates, Adams Howard and Greely (1960), (known as the Litchfield Plan). Annex 8 Page 7 the city in the recent past. Under such conditions, it would have taken a very strong hand to impose limits on the use of particular tracts of land.

22. Very recently, two more or less competing plans for the city's growth have been drawn up; one by the Planning Division of the Bangkok Municipality, and one by the Town and Country Planning Department of the Ministry of Interior. Both plans owe much to the earlier Litchfield Plan, both as to approach and content. The plans are based on control of land for desirgnated uses, and have been designed for population of 6.5 million. The plans include road systems to handle the increased traffic that is expected, but these are not based on any special study of traffic require- ments. 1/ The plans differ in a number of respects both in their projected land use and in the road system proposed. But perhaps the most important point is that neither plan has been accepted by the government as a basis for planning, and in any event there is at present no legal basis for imposing the type of constraints on the use of property that these plans require.

23. In addition to general planning efforts, a number of studies of specific city services have been made in recent years. The Litchfield Plan contained a program for investment in roads, services and water supply, drainage and flood control. Since 1960 when that study was carried out, foreign consultants have made three studies of sewerage, drainage and flood protection, several studies of various aspects of water supply, and several transport studies of various scope. The present transportation study being carried out under the guidance of a team of German experts is the most recent. These studies have been intended as preliminary to investment. In this respect, although the preparation of a project is well advanced in water supply, actual accomplishments arising from these studies has been little thus far. On the other hand, the supply of services has indeed been improved in recent years. Water supply has been increased by over three times between 1960 and 1970, and electric power consumption has been growing at; a rate of 30% per year for the past five years. 2/ Roads have been widened, and some new roads have been built. Overall, considerable investment has been made in the city, and for supplying services, such as electric power, to the city. However, these developments, while commendable, have not been adequate to prevent the emergence of present problems in water, draxinage and sewerage and transport. The approach has tended to be piecemeal. Bold coordinated moves, if any, have been few. As a result, the adequacy of the various urban services by any measure varies considerably among the services. Electric power can probably be placed at the top; public transport near the bottom. The more straight forward problems, like power and telephones, have been handled most successfully, as should be expected. The time of reckoning for the more difficult problems has been put off.

1/ A transportation study of Bangkok is at present being carried out by a team of German experts. It is assumed that the findings of this study will provide a basis for modifying the city plan that is finally accepted. 2/ 20% for domestic and commercial consumers and 43% for industrial consumers. These r^ates refer to growth of total power consumption in the country; about 75% is consumed in Bangkok. kAmex 8 Page X

IV. Present Public Service

24. Following is a brief summary of the present situation of the main public services in Bangkok:

(a) Transport System. Traffic congestion is increasing. The rapid growth of vehicles in Bangkok has outstripped efforts to handle them. These efforts have included widening existing streets, allowing truck traffic to enter the city only at night, and strengthening the traffic police. While import duties have been raised on vehicles, fuel remains relatively cheap and vehicle registration fees nominal. Parking prohibitions are not enforced, and there are few off street parking facilities in the downtown area. As a consequence, a large portion of the ci-ty's scarce and expensive road space is used for parking. Public transport is operated by 23 private bus lines with overlapping and uncoordinated routes. The effectiveness of the system is also hindered by the high degree of congestion. The study now underway by the team of German experts is intended to prepare a program of short term measures by the end of 1971 and, after further study, a long term program. Their terms of reference cover all means of transport, and are both comprehensive and thorough.

(b) Water Supply. The present system is operated very pocrly Average apparent water consumption is high in Bangkok by standards of other Asian cities. Yet there are shortages. Fates are very low; a great deal of water is lost through leaks and waste. Expansion of the system has been proposed. There is little room for further piecemeal growth. The proposed project requires a large lump of investment $150-$170 million. It will tahe five years to build, and it cannot be staged. Financing has not yet been arranged. Both IBRD and ADB have shown interest. The necessary reforms of present organization and system are an issue in arranging for finance.

(c) Drainage, sewerage and flood control. The problems of drainage, sewerage and flood control become more serious, as this great low- lying unsewered city grows. At present, the elaborate system of canals and the river carry much of the city's sewerage. With increasing growth and greater concentration of population, thle limits of this solution will be approached. Studies for a conventional water bornle system have been made. An initial program for the central part of the city has been proposed, costing $14)Lmillion. A program for a much larger area - the limit considered necessary - would cost over $500 million. These proposals also incLude pro- visions for drainage and flood control. Annex A Page 9

(d) Electric Power Transmission and Distribution

The consumption of electric power in Bangkok is both high and rapidly growing. Between 1964 and 1969, domestic and commercial consumption grew at an average rate of 20%, and total consumption at a faster rate because of the very rapid growth of industrial consumption, which accounted for 60% of total consumption in 1969. In 1970, domestic consumption in Bangkok was 1,800 kwh per customer for 276,000 customers. In addition, there were 80,000 small business, which averaged 5,600 kwh, a figure which probably included some domestic use. Demand is expected to grow at an average rate of 15% over the next five years. To meet this demand the Metropolitan Electricity Authority (MEA), which distributes power to the greater Bangkok region, is planning an investment program of $74 million for 1972-76. In addition the Electricity Generating Aathority of Thailand (EGAT), is planning an investment program of $366 million for the same period. About 70% of EGAT's power will be sold to the MEA for consumption in Bangkok.

(e) Telephones: The present capacity of the Bangkok metropolitan telephone network is around 100,000 lines; this is being increased to 180,000 under the current (1970-73) expansion program. Whilst "urgent" applicrtions for telephone service requiring a deposit of 15,000 Bahts, or $750, have been almost met, there is a waiting list of many thousands under the "ordinary" service category. The telephone density in the Bangkok area is around 3 telephones per 100 population. This is low in comparison with other Asian cities, for instance, Manila, 11.9; Singapore, 6.7; and, Kuala Lumpur, 11.8. The general standard of network service is rather poor, due to traffic overloading, and the fact that several main exchanges are worn out and due for replacement. A program has been drawn up for an investment of $92 million in the Bangkok system over the period 1972-76.

V. lhird Plan Proposals

25. A draft program in a rather preliminary state of preparation was presented to the mission. It focused almost exclusively on Bangkok and consisted of proposals for a series of new laws and organizations, a general program of action and a set of proposed development expenditures. The program did not cover all public investment in urban infrastructure. Electric power and telephones were excluded, and roads under the national highway pro- gram lying within the Bangkok area were also excluded. Annex 8 Page 10

26. Allocations from the national budget for urban development in Bangkok for the plan period 1972-6 are planned at 2,522 million baht ($126 million). Included in this figure are 1210 million baht ($60.5 million) for water supply, 550 million baht ($27.5 million) for roads, 330 million baht ($16.5 million) for drainage and sewerage, 240 million baht ($12 million) for bridges, and 187 million baht (.$9.)4 million) Uor housing. In addition, the projection of development expenditures from the Bangkok-Thonburi municipal budgets amount to 3,949 million baht ($197.5 million) for this period. This figure includes expenditures on streets, drainage, sanitation and education. The term development expenditure, is broadly construed to include all expenditures for these purposes, both current and capital. Other planned investments for services in Bangkok not included in either of the above categories are electricity, $330 million (the program of the Metropolitan Electricity Authority (iMEA), and 701" of the program of the Electricity Generating Authority of Thailand (E(3AT) which supplies the power); telephones, $92 million; and urban roads, $87 million.

27. Assuming the city grows by 600,000 in 5 years (close to 4% annually), then the total investment for these programs, even excluding the unknown investment portion in the projected Imlnicipal budgets, as well as possible investment in the city's infrastructure by government agencies not considered, e.g. Port Authority, would amount to $618 million or more than $1,000 per new inhabitant ($210 per present inhabitant). Actually a good portion of this investment would go toward improving present service for the existing inhabitants both by meeting present deficiencies, as in phones and water, and providing for increased con- sumption for tomorrow, as in electric power. There are two additional qualifications: (1) the transport program is quite probably insufficient to improve service during this period. The situation may well get worse; 1/ (2) a portion of this urban infrastructure is for industrial use. In the case of electric power, industry accounted for over 60% of consumption in 1969; its portion has been expanding, and may be expected to continue to expand.

28. It can be concluded that a large amount of public investment is being planned for urban inirastructure in Bangkok or for facilities to supply Bangkok with additional electric power. It is also clear that the investment is being made by a number of separate entities, municipality, water authority, power authority, telephone authority, national highways, etc., and that it flows in quite independent streams. Under the existing system such compari- sons, as are made along the investment streams, are of a rough pragmatic nature. Since resources are limited and investments are lumpy, not all projects can go ahead at the same time. The large water supply project, once underway, might be expected to reduce the availability of resonrces to invest in sewerage and drainage both in terms of central government resources, and in terms of the share of costs the users might, be expected to bear. Although the trade-off between water supply and sewerage and drainage seems clearest, an important factor in this case is the absence

1/ The final report of the urban transport study is not due until early 1974. Annex 8 Page 11 of a tradition of financiaL viability for these services. Added to this, are the usual questions about benefits that are difficult to quantify. By contrast, electric power, which is well managed and financially viable, is in another category. It would appear to require only the existence cf demand to justify investment. Alternatives are seen less clearly. Needs may be great in other areas, but organizations tend to be weak and the quantification of benefits difficult. The investment comparisons tha-t are mrade arise from the necessity for rationing funds among limited alternatives.

29. It, is difficult to comment on the appropriateness of the invest- ment program proposed for Bangkok. Some of the reasons have already been mentioned. Comparisons among the value of investments in these fields are difficult, and implementing organizations vary widely in competence. It shiould also be pointed out that the content of the program is not entirely clear at this stage; the municipal budget includes an unknown quantity of investment, and -the other urban investments have not been identified in much detail. However, within these limitations, two comments might be made. (1) The urban development program appears to be focused almost entirely on Bangkok. 1/ This would not seem to be in the interests of long run development or in improving the regional balance within the country. No doubt there is some optimal allocation among cities both in termis of need-ad ture development. Although we can not pretend to know what that wouLd be, we doubt it would involve exclusive concentration on Bangkok, as the Third Plan proposals would appear to do. (2) In terms of a program for Bangkok's needs, it is clear that investment is bu-t one aspect; in fact some of the more difficult actions that would seem to be required do not primarily involve investment at all. The need for improve- ment in the operations of the water system is one. 2/ Another is the need for stronger traffic controls including parking restrictions, and still an- other is improvement in the system of property and land taxation, which would help finance needed municipal services, and perhaps contribute a little to a more rational use of land. Also some of the required action consists of studies preliminary to investments. This would apply to the traffic problems, for which studies are at present underway. We are also aware that needed reforms often require the necessity of the specific demand arising from an investment program. It would seem to us that today's priorities should focus on developing organizations and conditions that would enable the more neglected types of urban infrastructure and services to claim a greater share of future resources. We have in mind all aspects of transportation, housing, particularly low-cost housina, and sewerage and drainage.

30. The proposed investment program contains a substantial requirement For foreign exchange. 45% to 55% of the programs for electric power, tele- phones arid water supply are for imported equipment and services, and these programs are expected to rely heavily on foreign financing. The present

1/ It is possible that we are not aware of all the investment planned for other cities; some oi i-t may be placed under other categories than "urban development" as presented in the draft Third Plan given to the mission. 2/ The administrative and financial policies laid dowrn by the central govern- ment under which the water system must operate are largely to blame for its poor performance. Annex 8 Page 12 program for roads and bridges in Bangkok also requires foreign exchange, and it may be expected that the futu-re investment proposals resulting. from the presen-t transport study will be large, and will require lorei gln finance and technical assistance for their implementation.

31. A large number of legislative and organizat-lional proposals are included in the draft program. Some of these are possibilities rather -than concrete proposals. Some have already been under consideration bu-t have been strongly opposed, and still others would seem to have some canc.e of being implemented within the plan period. The most important proposals can be summarized as follows:

(a) A Town and Country Planning Act

The proposed Act is modeled in part on U.K. experience. It sets out the conditions under which comprehensive plans Ior individual cities can be drawn up and approved. Approval on technical aspects is to be vested in the Department of Town and Country Planning of the Department of Interior; general approval in a committee headed by the Minister of Interior and havring a broad membership. An approved plan will be suipported by ministerial regulations and so given official status. Plans for projects within the framework of the comprehensive plan are to be approved in the same manner, but in- sofar as implementation may involve expropriation of land, changes in land use, removal of structure, etc. it must be backed by a royali decree. The proposed Act, deals only wi-th the process of planning and approval of plans. An approved scheme must still secure support from the Budget Bureau for finance from the central government.

This Act has been prepared for some time. As it provides the basis for a fundamental change in the control of land use, and gives new powers to the Minister of Interior to control urban development, its political repercussions are significant. The Government appears to have been waiting for an appropriate time to place i-t before the Parliament.

(b) A New Highway Act

Under the presen-t law, the government cannot control land use along right of ways. This law would give thnaL control, and also provide ways to expedite land acquisition. It would give more power to the national highway department. This !Act was also drafted some time ago, but has not yet been passed.

(c) A New Traffic Law

This is intended to strengthen the enforcement of parking laws and other traffic regulations. Annexo8 Page 13

(d) A Strengthening of Building Codes

Present codes are in practice concerned primarily with structural aspects. Proposed changes would also deal with use of the site, including, for example, provision for parking where appropriate.

32. Other proposals include setting up an agency for urban renewal and development - an organization that would take on work now being per- formed by municipal public works departments, and which, as a consequence, is being strongly opposed, and setting up a traffic planning bureau to perform a function at present poorly performed by a committee - a proposal still in a preliminary stage.

33. The draft Plan also includes a housing program aimed at eliminating the housing shortage in Bangkok within the next 10 years. This includes a proposal for better coordination of various governmen-t programs for housing government employees, and a proposal to improve terms for housing finance through appropriate financial institutions. It also includes a program of constructing 30,000 units of public housing for low income families.

VI. Comments and Recommendations

34. The rapid growth of Bangkok in both population and income has contribuled to the strain on public services, and to congestion of motor vehicles so familiar to many cities throughout the world. Under such pres- sure, it is not at all surprising that methods of administering and planning, which might have been adequate in the past, do not seem quite able to cope successfully with the new situation. Unfortunately, the experience of other couintries, both rich and poor, does not inspire confidence that there are any "proven solutions" to the problems of size and congestion that can readily be applied in this case. There are, of course, conceptual solutions in the sense that, if certain measures can be undertaken, the result will relieve a particular shortage - or a particular congestion. For example, if land use is controlled and the freedom of movement of individuals is constrained to the means available to move them most efficiently, a certain order can be established, and congestion can be limited. But, recommendations of this sort are generally far from measures that can actually be implemented in a rea:L situation.

35. The Litchfield Plan for Bangkok of 1960 might be considered as an example of such a problem focused approach. 1/ It proposed measures to deal with many of the city's problems in the context of an overall view of the city. It proposed a sysltem of controls over land use in order to give what the authors considered to be coherence and order to the city's future growth. This viewd of the city, which seems a quite logical outcome of an analysis of the city's problems, represented a very radical change from the accepted Thai views, and there seemed no sufficiently strong reason to make such a change.

1/ We refer here to the concept of the plan rather than the detailed recommendations. Annex- Pa -e 1 4

As a consequence, the Plan has had little impact on the city, its growth or the handling of its problems. Although it has influenced the thinking about the city and resalted in the establishment of a planning organization (the Department of Town and Country Planning, iMinistry of InLerior), the organization has thus far operated without authority or suypport.

36. In view of past experience, it seems worth emphasizincg that any radical change in dealing with Bangkok's problems -- or more precisely, any action that had radical implications, such as limiting what a landowner can do with his land or where a car owner can park his car -- must have sUrong-l support within the Thai government. It would also appear that measures used elsewhere may have to be adapted to the Thai environment to a !reater extent than may generally be realized by foreign consultants. While we are aware of the problem of implementation, we can not claim to be in a position to judge what can or cannot be done within -the Thai systerm. aur approach can only be to present the problems as we see them, focus on wha-t seems to be the most critical aspects, and suggest some possible ways to cope with them. It is up to the Thais to decide what they can do.

37. If Bangkok's future reflects its recent past, we can expect increased growth and increased congestion with some improvements in narticular services, which involve no radical change in procedures or concepts; for instance, electric power and telephones. Out of necessity, some measures will be taken to improve traffic flow, but the effect of such action as may be possible in the short run, is likely to be over- whelmed by the increased traffic. Increasing congestion will reduce the overall efficiency of the city by impeding the flow of roods through it, and making services within it more difficult. It may also have the effect of reducing somne property values in parts of the central city, as they become increasingly inaccessible. (There are some indicat;ions of this already). Measures that migh-t make some lasting contribution to the transport problem will take time, and will likely involve more than routine changes. We would expect the team of German transport experts now working in Bangkok to come up with concrete proposals to this end. In the meantime at some point, drastic action may have to be taken to maintain the operations of necessary services in the city. Trucks have already been banned from the city during day time, at considerable cost to the economy. Private vehicles may also have to be banned from certain areas at certain times.

38. While we are hopeful that important progress can be made towards improving Bangkok's transport system, because the seriousness of the problem is a real public concern and the problem is being studied seriously, we are rather less optimistic about the early acceptance of conventional city planning practices, as put forward in the city plans drawn up by the Municipality of Bangkok and the Department of City and Country Planning of the Ministry of Interior. We note that the basic tools reauired for this approach are not yet available. It still recquires passage of a national law to make traffic law enforcement effective, and to impose Annex 8 Page 15 conditions on buildings, other than structural, such as providing parking space. And it still requires a national law to provide a legal basis for the enforcement of city plans that may be produced. These enabling laws are part of the Third Plan program.

39. We would certainly favor continued progress along the chosen way to a system of city planning. At the same time, we would point out that all cannot be allowed to rest on this solution, nor can action be suspended until the necessary laws are passed, and put in force. We would point out that much could be done with the land in the city already owned by the govrernment, which would be consistent with the rational development of the city. (We understand that roughly 30% of the land in Bangkok is owned by various parts of the government including the King's land, crown lands, and land owned by various government departments). We would also suggest that an alternative to zoning control in some cases may be the purchase and development of land by a government entity itself. This is now done in the case of low cost housingr and other purely public facilities. There may be instances where more extensive use may be appropriate.

hO. The proposed emphasis on housing development is commendable; the problem is to work out and implement a feasible program. Improvements in the system of financing construction and purchase should certainly be a part of it. At present, mortgage financing is only available at high rates for short terms. One possible improvement would be to channel savings through financial institutions, for investment in home mortgages. One possible approach would require the establishment of savings and loan institutions and the expansion of life insurance companies to receive savings for invest- ment in mortoages. This would also require a system of home owner mortgage insurance financed by government. It may also be that existing institutions can modify their practices to widen the mortgage market. Housing for low income families is a different and more difficult problem. The present government program is small, and focuses on contribution of high rise flats rented at subsidized rates. We would suggest that other measures should also be included in a low income housing program. We recognize the problem of attempting to meet this need with limited resources, not the least being the high cost o[ land in many of the areas near possible centers of employ- ment. We would suggest that an effective approach should consider closely the actual needs for low cost housing, the ability of the needy families to pay for housing and various alternatives, which make use of the skills, energy and motivation of the families themselves. We find particularly attractive the proposals put forward for rehousing the Klong Toey squatters, and we feel that it will be necessary to attempt different types of solutions in the course of developing a sound and effective housing program.

lli. Considering the need for expanded urban services in Bangkok and the wealth of the city compared with the country at large, it would seem that the residents and property owners of the city should bear, and be able to bear the costs of the services, which will benefit them. This is most nearly the case now with public utilities, such as electric power, telephones and, when proposed reforms are carried out, water supply. It is quite different in the case of roads and other public services, which are not operated on a commercial basis. In particular, we note that property owners are taxed very lightly. The municipal income derived from property taxes is only 15% Amnex 8 Page tI' of the total, and the level is the equivalent of $1.*1jO per capita. 1/ I-Higher taxes would help to finance improved facilities and services; they might also help to encourage the better use of resources by increasing the cost of holding idle land and unused property. One possible approach miaht be to single out one or two services where present arrangemrents are unsatisfactory, f'or instance, disposal of sewerage and solid waste, and investigate specific ways in which improved service could be organized and financed. h2. Finally, we would point out that Bangkok should be looked at, in its relation to the country as a whole, because of its importance to the country, and becaase urban developments elsewhere may help to allevi,ale its problems and to give a broader base to the country's development;. Looking ahead, we would strongly recommend the conscious deveLopment of other urban centers. The effect on Bangkok's growth cannot be expected to be noticeable in the short run - although there might be some effect on congestion if some heavy traffic creating functions were shifted - but the long run effect might be substantial. h3. Particular priority should be attached to the development of' a new deep water port. At least two proposals already exist and studies are underway. The need for the port is presumably clear; the question is the particular location. Such a development would seem to provide a basis for eventually diverting both traffic and urban grow-th from the Bangkok area at the same time as port efficiency is increased.

1X11. Selected upcountry cities should also receive particular attention, with respect to urban infrastructure and particularly the establishment of' industry or other employment centers. In this connection, it migh-t be possible to move some government operations to other centers (for instance, forestry to the forest areas, fisheries to the sea coast, military units to other cities). Any policy for the development of secondary cities must, of couirse, focus on developing an economic base for the particular cia;-ies consistent with their location and resources. This must be ref'lected in industrial policy. We would also point out that a number of factors that favor the development of Bangkok are based more on policy decisions than on inherent economic factors. We refer to the fact that charg-es for electricity and water are higher in the secondary cities than they are in Bangkok. It would be consistent wi-th a policy for regional development that such impediments be removed.

45. Finally, serious planning effort should not be confined to Ban'•kok, but should also be focused on the central region. The advantage oF this region for many economic activities related to the proximity to the mark'et, the port and the amenities of Bangkok, are clear. T'he re-iLn already contains

1/ By way of contrast, per capita property taxes are $5 in Bombay, a ci-ty with a lower level of per capita income than Bangfkok. Annex 8 Page 17

- third o:-t,he nation's population and is bound to grow, but there are still alternatives in the pattern of this growth. The planning effort should consider other urban places in the region and the possible develop- men-- of a viable, overall urban structure with suitable transport links. Tnis cou:Ld include, in principle, expansion of existing towns and the development of new towns. We are aware of the proposal to develop a new town north of Bangkok. At this point, the proposal is in an early stage of development1; we would hope it might be developed into a feasible project.

T,ABLE. 1 TER-NL)R420ST URB-AN PLACESr TN'TILkAND

1 9 4 7 1 9 6 0 1 9 6 7 1 9 7 0 Rank Place Population Place Population Place Population Place Population 1 Bangkok-Thonburi (C) 781,662 Bangkok-Thonburi (C) 1,800,678 Bangkok-Thonburi (C) 2,614,356 Bangkok-Thonburi (C) 2,913,706 2 Chiengiiai (N) 38,211 Chiengmai (N) 66,823 Chiengmai (N) 81,579 Chiengmai (N) 89,272 3 Lampang (N) 22,952 Korat (NE) 44,639 Korat (NE) 73,630 Korat (NE) 82,256 Korat 4 (NE) 22,340 Eaad Yai (S) 36,197 Haad Yai (S) 49,327 Phitsanulake (N) 64,979 Nakorn Pathom 5 (C) 22,007 Lampang (N) 36,002 Udorn Thani (NE) 46,686 Udorn Thani (NE) 54,869 6 Samut Sakorn (C) 20,754 Nakorn Sawan (N) 34,371 Nakorn Sawan (N) 44,851 Haad Yai (S) 54,050 7 Puket (S) 19,550 Ayuthaya (C) 33,547 Chonburi (C) 42,141 Nakorn Sawan (N) 48,609 8 Songkhla (C) 18,662 Chonburi (C) 33,237 Songkhla (S) 40,682 Songkhla (S) 46,322 9 Ayuthaya (C) 17,807 Phitsanulok (N) 33,233 Lampang (N) 40,515 Nakorn Srithamarat (S) 45,353 10 Chonburi (C) 17,671 Songkhla (S) 31,488 Nakorn Srithamarat (s) 39,426 Chonburi (C) 45,127

TOTAL 981,616 2,150,206 3,072,593 3,444,543 (TOTAL URBAN) (1,734,000) (3,274,000) (4,266,000) (5,200,000)

* (C) = Central Region, (NE) = Northeast Region, (N) North Region, (S) = South Region.

F7ure 1. Location of the Ten Lar7est .Urb'n Flaces, Thailand - 19147, 1560 anu 1970

14E !~~~~irn ~~~~q6c '

oei t OtTm4*0e + 4- o NO'tTHifAS7 c % oS

1 Bangkok-Thonburi 1 Bangkok-Thonburi 1 Bangkok-Thonburi

26 Chiengmai 2 Chiengmai 2 Chiengnai

Ko>st3 Lampang / > 3 Korat 3 Korat

*TH \ a Korat ( t OU 7 914 Haad Yai 9 4 Phitsanuiak-

5 Nakorn Pathom ° - 5 Lanpang 05 Udorn Thani

s 6 Samut Sakorn w> 6 Nakorn Sawan 6 Haad Yai

7 Puket v 7 Ayuthaya 7 Nakorn Sawan

8 Songkla 8 Chonburi 8 Songkhla

9 Ayuthaya 9 Phitsanulok 9 Nakorn Srithamarat

10!,,,-j 10 Scnrkla 10 Cionbr

98- _, 1102- 104- 106-

-20- f _ > 1 __ ~~~~~~~ ~ ~ ~~~~~THAILAND20-- 5n jabiQroi w) URBAN PATTERNS,t 1970

( /9boyoo ¢ {; ~~~~~~~~~~~~~~~~~~~International boundaries

/ !1. , | _ _- _~~~~~~~-Regionol boundories

\ (;@ngmoi (ilon \ % O 100~0lo 200 300 4pO _ _@ \mp(i hun / KILOMETERS

{ g - N o,phoi-{'

~~r )) t~~omhnQhl hh ;) KoL) '\2/?8 Phelchob (iahosoroKh-m3loi \0 L A OS

I sig . rbpuso ( ,

l J ( $ 1 >J su.wi isLi)oric-9ope

O , @ hQnoburiU@&&nth.b.ri ( .,ohinb.,i l 14

< ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2,700,000 -OVER :? \/ (iluo ~~~Hin.gh h

-12-' t 't z

0 t ji ,,X0 \ :::~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~29 . ad2s,~~~~~~~~~~~~~~~~~~~~~~~~~~000-4000 -(/000000a25000

i &@h-pho naL j 10, ~ T~ha it/ a nd' _

k.,~~~~,

/~~~~~~~~~ 2&4,M A ~~~~~~~~~~~~~~~~~~~~<

g ~~ ~ ~ ~ ~ ~ ~ kl I Ijrot T.AI A.

L ~ ~tS> I \ I - - ' OC~~~~~~TOBi-X HER 1971 BR-34