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Project Name
Project ID
Implementing Agency
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Report No.: AB4818
Thailand: Additional Financing - Highways Management Project
Roads and highways (100%)
Department of Highways
Sri-Ayutthaya Road
Bangkok 10400
Tel: (66-2) 354-6800 Fax: (66-2) 354-6527
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
June 30, 2009
July 24, 2009
March 18, 2010
i. Key development issues and rationale for Bank involvement
Road transport plays a significant role in Thailand’s economy. The Royal Thai Government
(RTG), through the Department of Highways (DOH) under the Ministry of Transport, has been
preserving national highway assets, clearing bottlenecks, improving road safety, and
modernizing the DOH management. The World Bank has been supporting the effort through an
IBRD Loan to finance the Highways Management Project (HMP). The Loan for the HMP was
approved on December 9, 2003, and became effective on March 15, 2004.
The DOH currently has a 4-Lane Highway Widening Program, under which the priority national
highway sections will be widened to accommodate the growing traffic and prevent road
accidents. This program is an integral part of the RTG’s effort to improve the national
competitiveness through reduction of transport and logistics costs. The HMP includes a
Highway Upgrading and Intersection Improvement component which finances the 4-lanning
civil works under the First Phase of the 4-Lane Highway Widening Program. Recently, the RTG
is seeking external financing from the World Bank and Asian Development Bank (ADB) for the
Second Phase of the 4-Lane Highway Widening Program. Moreover, in order to develop the
priority intercity motorways through a public-private partnership (PPP) financing modality, the
RTG requests the Bank to finance a PPP transaction advisory consultancy for the proposed Bang
Pa-in to Nakhon Rachasima Motorway.
The objective of the Second Phase and the intercity motorway development is consistent with the
objective of the HMP, which is to support the RTG in enhancing the efficiency and productive
use of the national highway network. The Bank could continue the financial support through
Additional Financing to the HMP to scale up the relevant project activities to meet the need for
national highway network improvement.
In recent years, the Bank’s relationship with Thailand has evolved from lender-borrower
relationship to a development partnership with a focus on knowledge sharing. Meanwhile,
implementation support to critical investment through IBRD financing remains an important
modality of Bank engagement. The Additional Financing will provide continued implementation
support to the transport sector, which is crucial to the national competitiveness agenda.
ii. Proposed objective(s)
With additional financing, the development objective of the HMP will remain unchanged,
namely, to assist the Borrower in enhancing the efficiency, productive use, and management of
the road network, through: (a) the commercialization of the road sector by introducing better
business principles and increased private sector participation in the construction and maintenance
of roads; (b) the strengthening of institutional capacity and modernization of the DOH; (c)
sustainable road maintenance programs to preserve road assets; and (d) the enhancement of road
safety aimed to reduce traffic fatalities and injuries.
iii. Preliminary description
The on-going HMP has four components and 14 sub-components, as follows:
Highway Maintenance: (1) periodic maintenance of about 700 km of priority national
highways; (2) a 5-year pilot program of highway performance-based maintenance of about 900
km of national highways; (3) supervision of periodic maintenance and road safety improvements;
and (4) the study, design, and supervision of performance-based maintenance.
Highway Upgrading and Intersection Improvement: (1) widening three selected sections
(73 km total) of highway network from two to four lanes; (2) construction of three overpasses at
critical intersections; and (3) supervision of the widening and overpass civil works.
Road Safety Improvement: (1) improvement of conditions of hazardous locations; and (2)
support for implementation of the road safety action plan in collaboration with the Global Road
Safety Partnership and the establishment and operation of a roads accidents research center.
Institutional Strengthening: (1) Institutional strengthening of the DOH through (a)
development of a centralized road database, road asset maintenance and management system,
and a bridge management system; (b) development of a framework for and a case study on
public-private partnerships (PPP) in highways; (c) strengthening capacity in project coordination;
(d) introduction of a highway specific e-procurement system; and (2) external audit.
During the project implementation, there were allegations of improper influence to the
procurement processes of two consultancies. These were investigated by the Bank’s Department
of Institutional Integrity which substantiated the allegation in one of the procurements. Given
the high risk environment and at the request of the Bank, the DOH cancelled the procurement
processes, and collaborated with the Bank in a procurement capacity assessment. Based on the
assessment, a set of measures to address the procurement risks were identified for
implementation under the Additional Financing.
The HMP is currently being restructured. The restructuring will include cancelation of delayed
activities and reallocate the uncommitted remaining loan proceeds (approximately US$20
million) to support needed activities within the same scope of the project, especially periodic
maintenance civil works. It is expected that the proposed restructuring provide further assurance
for the achievement of PDO.
Additional financing project summary
The Additional Financing will finance the following civil works and consultant services:
Widening of five selected sections (216 km in total) of national highway network from
two to four lanes (same scope as Subcomponent B-1 of the HMP):
Route 201: Sikhiu – Nong Bua Khok, 60 km
Route 24: Nang Rong – Prasart, 65 km
Route 331: Intersection Route 36 – Intersection Route 3, 28 km
Route 4: Phang Nga – Krabi Section 3, 27 km
Route 408: Ranot – Sathingpra, 36 km
Engineering supervision of the widening civil works (same scope as B-3 of the HMP).
Public-private partnership financing transaction advisory for the proposed motorway
from Bang Pa-in to Nakhon Rachasima (building on works under D-1(b) of the HMP).
i. Safeguard policies that might apply
Safeguard Policies Triggered
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waterways (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
The Additional Financing will trigger the same safeguard policies as the original project HMP
and will maintain the same environmental category, which is Category B.
ii. Tentative financing
International Bank for Reconstruction and Development
iii. Contact point
Contact: Zhi Liu
Title: Lead Infrastructure Specialist
Tel: 5778+8338 / 66-2-686-8338
Fax: 66-2-686-8301
Email: [email protected]
Location: Bangkok, Thailand (IBRD)