Content Page 1 Introduction 1 1.1 Background 1 1.2 Objectives 1 1.3 Operational Framework 2 1.4 Information for Analysis and Evaluation 3 1.4.1 Policy Statement on International Relations 3 1.4.2 Neighbouring Countries Economic Development Cooperation Agency 3 (Public Organization) 1.4.3 International Cooperation Framework 3 1.4.4 Related Information of Neighbouring Countries in Project Area 6 1) Republic of the Union of Myanmar 6 2) Lao People’s Democratic Republic 10 1.4.5 Field Observation Data and Interview 14 1.4.6 Background Information of Project 15 2 Analysis and Evaluation Result of the Project 19 2.1 Mae Sot/Myawaddy-Thin Gan Nyi Naung/Dawna Range Road Construction Project 19 2.2 Railway Construction from Friendship Bridge to Ban Thanaleng 27 2.3 Wattay International Airport Improvement Project 35 2.4 The Construction of Drainage System in Vientiane Capital City 42 3 Overall Conclusion of Evaluation Result 48 3.1 Lesson Learnt 48 3.2 Recommendation and Suggestion 48 3.3 Strategies for Cooperation with Neighbouring Countries of Thailand 49 Abbreviation Afghanistan Islamic Republic of Afghanistan Bangladesh People’s Republic of Bangladesh Bhutan Kingdom of Bhutan Brunei Brunei Darussalam Cambodia Kingdom of Cambodia China People’s Republic of China India Republic of India Indonesia Republic of Indonesia Iraq Republic of Iraq Iran Islamic Republic of Iran Lao PDR Lao People’s Democratic Republic Myanmar Republic of the Union of Myanmar Napal Federal Democratic Republic of Napal Pakistan Islamic Republic of Pakistan Philippines Republic of the Philippines Singapore Republic of Singapore South Korea Republic of Korea Sri Lanka Democratic Socialist Republic of Sri Lanka Turkey Republic of Turkey Vietnam Socialist Republic of Vietnam DOH Department of Highways NEDA Neighbouring Countries Economic Development Cooperation Agency (Public Organization) SRT State Railway of Thailand Abbreviation (Continue) ACMECS Ayeyawady-Chao Phraya – Mekong Economic Cooperation Strategy ADB Asian Development Bank AEC ASEAN Economic Community AH Asian Highway ASEAN Association of Southeast Asian Nations BIMSTEC Bay of Bengal Initiative Multi – Sectoral Technical and Economic Cooperation CY Container Yard EIRR Economic Internal Rate of Return GDP Gross Domestic Product GMS Greater Mekong Subregion ICD Inland Container Depot IMF International Monetary Fund IRR Internal Rate of Return JICA Japan International Cooperation Agency PATA Pacific Asia Travel Association SKRL The Singapore-Kunming Rail Link Project UNESCAP The United Nations Economic and Social Commission for Asia and the Pacific VOC Vehicle Operating Cost VOT Value of Time Executive Summary Report • Tesco • Transport Institute, Chulalongkorn University 1 Introduction 1. Introduction 1.1 Background Neighbouring Countries Economic Development Cooperation Agency (Public Organization): NEDA has the mission in providing the financial and technical assistance to the neighbouring countries to cooperate with neighbouring countries in their economic development. In 2012, NEDA has identified a need to conduct the Evaluation of NEDA’s Financial Assistance Project including (Figure 1.1-1): ▪ Mae Sot/Myawaddy-Thin Gan Nyi Naung/Dawna Range Road Construction Project ▪ Railway Construction from Friendship Bridge to Ban Thanaleng ▪ Wattay International Airport Improvement Project ▪ The Construction of Drainage System in Vientiane Capital City NEDA has commissioned Tesco Co., Ltd. in cooperation with Transpotation Institute, Chulalongkorn University, to serve as the consultant of the study. The consultant contract was signed on 5 April 2012 under the 180 days of operation period. 1.2 Objectives 1) To evaluate the worthiness of project in terms of both functionality and sustainability 2) To evaluate the impacts and benefits of project from the viewpoints economy, engineering, social, environment, resource utilization, and potential of economic activity development in the project area and nearby surrounding 3) To evaluate the requirements and the potential for futher economic and social development in project area and adjacent area by promoting and supporting the utilization of projects to the fullest extent, as well as the creation of value added by proposing the necessary additional investment to be made by both Thai public and private sectors, and the neighbouring countries Evaluation of NEDA’s Financial Assistance Project 1 Fiscal Year 2012 Executive Summary Report • Tesco • Transport Institute, Chulalongkorn University 1 Introduction Lao People’s Democratic Republic (Lao PDR): . Railroad Construction from Friendship Bridge to Ban Thanaleng . Wattay International Airport Improvement Project . The Construction of Drainage System in VientianeCapital City Republic of the Union of Myanmar (Myanmar): . Mae Sot/Myawaddy-Thin Gan Nyi Naung/Dawna Range Road Construction Project Figure 1.1-1 NEDA’s support with 1 project in Republic of the Union of Myanmar and 3 projects in Lao People’s Democratic Republic 1.3 Operational Framework The study deals specifically with the following issues: ▪ Studying and evaluating the relevance with project objectives ▪ Studying and evaluating the worthiness of project ▪ Studying and evaluating the impacts and benefits of project ▪ Studying and evaluating the measures to ensure the suitability and sustainability of the project ▪ Studying the measures to bring about value added for the project ▪ Studying and evaluating the public and international relations ▪ Concluding on the lessons learnt and recommendation Evaluation of NEDA’s Financial Assistance Project 2 Fiscal Year 2012 Executive Summary Report • Tesco • Transport Institute, Chulalongkorn University 1 Introduction 1.4 Information for Analysis and Evaluation 1.4.1 Government Policies on International Relations . Policies to advance the reconstruction and development of relations with neighbouring countries and others . Policies to expand the connectivity of economy, trade, investment and marketing under cooperative frameworks and free trade agreements both at bilateral and multilateral levels . Policies on infrastructure, development of rail mass transit system and management of freigh transportation system and services . Policies to advance the promotion and development of relations with neighbouring countries by enhancing cooperation between the public sector, private sector, people and the mass media 1.4.2 Neighbouring Countries Economic Development Cooperation Agency (Public Organization): NEDA NEDA has carried out all the missions outlined in the agency’s 3-year strategic framework (2012-2014) complying with the objectives and obligation set out in the royal decree establishing Neighbouring Countries Economic Development Cooperation Agency (Public Organization) B.E.2548. 1.4.3 International Cooperation Framework (1) Association of Southeast Asian Nations: ASEAN Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Saranrom Palace, with the signing of the Bangkok Declaration by the Founding Fathers of ASEAN, namely Republic of Indonesia (Indonesia), Malaysia, Republic of the Philippines (Philippines), Republic of Singapore (Singapore) and Thailand. Brunei Darussalam (Brunei) then joined on 8 January 1984, Socialist Republic of Vietnam (Vietnam) on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Kingdom of Cambodia (Cambodia) on 30 April 1999, making up what is today the ten Member States of ASEAN. Evaluation of NEDA’s Financial Assistance Project 3 Fiscal Year 2012 Executive Summary Report • Tesco • Transport Institute, Chulalongkorn University 1 Introduction (2) The Greater Mekong Subregion: GMS Greater Mekong Subregion or GMS, which is being supported by the Asian Development Bank (ADB), consist of Thailand, Myanmar, Lao PDR, Cambodia, Vietnam, and South of the People’s Republic of China (Yunan Province and Guangxi). With a total land area of 2.3 million square kilometers (about the size of Western Europe), the GMS is home to some 250 million people. The GMS is rich in natural resources, as well as an important land bridge between and among South Asia, East Asia, and Southeast Asia. (3) Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy: ACMECS Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy or ACMECS is economic cooperation framework in the sub-region, with Cambodia, Lao PDR, Myanmar, Thailand and Vietnam. The ACMECS program is established to use strength and diversity of 5 member countries for supporting balance development. Leaders of ACMECS met for the first summit on 12 November 2003 in Bagan, Republic of the Union of Myanmar, and adopted the Bagan Declaration for establishing cooperation framework the “ACMECS”. (4) Bay of Bengal Initiative Multi-Sectoral Technical and Economic Cooperation: BIMSTEC On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name People’s Republic of Bangladesh (Bangladesh)– Republic of India (India)– Democratic Socialist Republic of Sri Lanka (Sri Lanka)–Thailand Economic Cooperation or BIST-EC, with four original member countries, namely, Bangladesh, Sri Lanka, India, and Thailand. Myanmar joined the organization as official members on 22 December 1997, upon which the name of the grouping was changed to Bangladesh–India–Myanmar–Sri Lanka–Thailand Economic Cooperation or BIMSTEC. Nowadays, BIMSTEC consists of seven member countries, namely Bangladesh, Sri Lanka, India, Thailand, Myanmar, Federal Democratic Republic of Napal (Nepal), and Kingdom of Bhutan (Bhutan). During the first BIMSTEC Summit,