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This report benefited from the comments and inputs of many individuals from m any d ifferent agencies. Dr. Sup at

Wangw ongwatan a, Dr. Jiranun Hemp oonsert and Ms. Nop pan Trakuldit of the Pollution Control Department (PCD);

and Dr. Kanawat Wasinsungworn of the Ministry of Natural Resources and Environment (MoNRE) provided valuable

inputs and comments on the CDP-E process and this document.

Ms. Mingqu an Wichayarangsaridh , Mr. Panya Warapetchrayu t, Mr. Janejob Suksod, Ms. Siwap orn Rungsiyanon and

Mr. Ekbordin Winijkul of PCD, Mr. Silpachai Jarukasem ratana an d Mr. Saitmate Thawan aphong at Departm ent of Land

Transport (LTD) made contributions to the comp onent on Imp roving Air Quality in Bangkok.

Dr. Kasemsun Ch innavaso, Mr. Santi Boonp rakub, Mr. Somchai Tasingsa, Dr. Sethapan Krajangwon gs, Dr. Raweewan

Bhu ridej, Ms. Warintorn Manosittisak, Ms. Jintana Luengw ilai, and Mr . Anu cha Jitnuyanond of the Office of Na tura l

Resources and Environm ental Policy and Planning (ON EP); Dr. Arux Chaiyaku l of Depa rtmen t of Livestock Depart-

ment; Dr. Wijarn Simachaya, Dr. Wimalin Klaewtanon g and Ms. Kanchalee Navickabhum of PCD provided background

information for the Comp onent on Improv ing Water Qu ality in Priority River Basins.

The comp onent on Waste Managem ent benefited from the inpu ts of Mr. Adisak Thongkaimook, Mr. Sopon Tatichotiphan,

Paisarn Padu ngsirikul, Taweeporn Jung, Suntorn Upp amarn an d N apaw as Buasruang of PCD; Ms. Suw anna Tiansuwan,

Dr. Warangkana Pu nrattanasin, Ms. Worawan Prachakaseam of the Department of Environmental Quality Promotion

(DEQP); Dr. Kitsiri Kaewp ipat of the Dep artment of Industrial Works (DIW); and Ms. Pornsri Kictham of the Mun icipal

League of Thailand (MLT).

Dr. Prasert Tapaneeyangku l, Ms. Bongkoch Kittisomp un of DIW; and Mr. Anat Prap asawad of the Ind ustrial Finance

Corporation of Thailand (IFCT) contributed to the d rafting of the compon ent on Global Environmental Comm itments.

Ms. Nisakorn Kositrat, Dr. Chan in Thongtam macha rt, Mr. Sonth i Kochaw at, Ms. Chintan a Thaweema, Ms. Rosalind

Amornp itakpan, Ms. Wanna Moonkh am an d Ms. Pariya Kluabtong of ON EP; and

Dr. Pongpisit Viseshakul and Dr. Chamnong Poungpook of the National Economic and Social Development Board

(NESDB) prov ided va luable inputs to the comp onent on Strengthening Institutions and Instrumen ts.

We wou ld like to thank the international partners for their contributions to the CDP-E program includ ing the Japan Bank

for International Coop eration (JBIC), the Un ited States Asia Environmen tal Partnersh ip (US-AEP), the United States

Agency for International Developmen t (USAID) and the United N ations Developm ent Programm e (UNDP). Mr . Norio

Saito and Ms. Sum ontha Wann aph ongsai (JBIC), Mr. Winston Bowm an an d Ms. Watcharee Limanon (USAEP) and Mr.

Apichai Sunchindah (UNDP) also provided comments on d raft versions of this document. We w ould also like to thankDr. Anu chat Poungsomlee at Mahidol Un iversity for organizing the civil society consultation workshops and Federation

of Thai Industries (FTI) for organ izing the p rivate sector consu ltation worksh op.


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Finally, the overall guidance provided by H.E. Suwit Khunkitti, Minister, and Dr. Plodprasop Suraswadi, Permanent

Secretary, MoNRE; and Mr. Ian C. Porter, Cou ntry Director, Thailand ; Ms. Maria Teresa Serra, Sector Director and Ms.

Magd a Lovei, Sector Manager, of Environm ent an d Social Developmen t Unit of the East Asia and Pacific Region of the

World Bank is acknow ledged .

This report was prep ared by a World Bank team comprising of Nat Pinnoi, Anjali Acharya, Sirinun Maitrawattana, John

Morton, Jitend ra J. Shah, Pau l Procee, Manida Un kulvasapaul, Sutthana Vichitrananda and Patchamu thu Illangovan

(Team Leader). The peer reviewers were Messrs. Warren Evans, Acting Director, Environment, Department; Carter

Brandon, Sector Leader, Environment and Social Development Unit, Latin America and Caribbean Region; and Mr.

Sergio Margu llis, Lead Environm ent Economist, Africa Region, all of the World Bank

The views expressed in the report reflect those of the authors and not necessarily of those consulted in the p reparation of

the report.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective 25/11/2003)

Currency unit = baht (THB)1 baht = US$0.03US$1 = THB 39.9

GOVERNMENT FISCAL YEAR

October 1 September 30

ABBREVIATIONS AND ACRONYMS

A D B

Au sAID

ASEM

ASEAN

BMABO B

CAI

CAS

CD P

CSO

DEDE

DEQP

DIW

D LD

DOH

DOLA

EF

EI AESMAP

ESCAP

FTI

GEF

GD P

GEF

GMS

GSB

GSEI

GTZ

IEATIFCT

JBIC

JICA

LT D

MLF

MDGs

MOAC

MOIND

Asian Development Bank

Australian Agency for International Development

Asia-Europe Meeting

Association of Southeast Asian Nations

Bangkok Metropolitan AdministrationBureau of Budget

Clean Air Initiative - Asia

Country Assistance Strategy

Country Development Partnership

Civil Society Organizations

Department of Alternative Energy Development

and Efficiency

Department of Environmental Quality and

Promotion

Department of Industrial Works

Department of Livestock Development

Department of Highways

Department of Local Administration

Environment FundEnvironment Impact Assessment

Energy Sector Management Assistance Program

Economic and Social Commission for Asia and the

Pacific

Federation of Thai Industry

Global Environment Facility

Gross Domestic Product

Global Environment Facility

Greater Mekong Subregion

Government Savings Bank

Good Governance for Social Development and

Environment Institute Foundation

German Technical Cooperation

Industrial Estate Authority of ThailandIndustrial Finance Corporate of Thailand

Japan Bank for International Cooperation

Japan International Cooperation Agency

Land Transport Department

Multilateral Fund

Millennium Development Goals

Ministry of Agriculture and Cooperatives

Ministry of Industry

MoNRE

MRC

NESDB

N ET

NTFESSD

NGO

O DS

OEPP

ONEP

OTF

PM10

PC D

PC F

PPIAF

PFD

RTG

RTPSME

TA

TH B

TORs

UN

UNDAF

U N D P

UNEP

USAID

USAEP

USEPA

USTDA

WM A

WBIWTO

Ministry of Natural Resources and Environment

Mekong River Comm ission

National Economic and Social Development Board

National Environment Target

Norwegian Trust Fund for Environmentally andSocially Sustainable Development

Non-Governmental Organization

Ozone Dep leting Substances

Office of Environmental Policy and Planning

Office of Natural Resources and Environmental

Policy and Planning

Ozone Trust Fund

Particulate Matter less than 10 micron in size

Pollution Control Departm ent

Prototype Carbon Fund

Private-Private Infrastructure Advisory Facility

Partnership for Development

Royal Thai Government

Royal Thai PoliceSmall and Medium Size Enterprise

Technical Assistance

Thai Baht

Terms of Reference

United Nations

United N ations Development Assistance Framework

United Nations Development Program

United N ations Environment Program

United States Agency for International Development

United States Asia Environment Partnership

United States Environmental Protection Agency

United States Trade and Development Agency

Wastewater Management Authority

World Bank InstituteWorld Trade Organization


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i. Background: As the Country Assistance Strategy (Partn ership for Developm ent Strategy, 2003-2005) explains, thenatu re of the relationship betw een Thailand and Bank has evolved from on e of borrow er-lend er to that of facilitating

knowledge sharing and providing p olicy advise on m edium-term structural issues. This new p artnership app roach

focuses on d iagnostic and monitoring w ork with a limited am oun t of imp lementation sup port for selected critical issues

in Thailand s overall national developm ent agend a. This docum ent prov ides a framew ork for a know ledge partnership

between Thailand and the World Bank for improving environmental quality, which is one of the four pillars of the

national development agenda. Since 2000, the Bank has been supporting diagnostic work through the Thailand

Environment Monitorseries, and together with the p roposed Country Development Partnership for Environmentprovide a

strategic and coord inated app roach for add ressing the mediu m-term environm ental priorities.

ii. Environmental Challenge: Management of natural resources and th e environment, overlooked d uring the h igh

growth years, has emerged as a higher p riority. Consultations w ith stakeholders h ave consistently identified natural

resources and the environm ent as requiring ur gent attention. In particular the challenges are:

Improving environmental quality: Thailands economic expansion has been accompanied by significant

environmen tal costs. Rapid expansion of indu stry and increasing pop ulation, especially in urban areas, has

rap idly increased the levels of pollution (solid and hazard ous w aste, air, noise, and water). Fine pa rticles in

Bangkoks air continu e to exceed stand ard s at major roads an d intersection1, and 35 percent of sur face wa ter is

classified as poor and very p oor2. The resulting risks to hu man health are high. Thailand n eeds to focus on more

effective enforcement of environmental laws; stronger institutional capacity, both national and local; and in

creased investmen ts in pollution preven tion and contro l, with private sector par ticipation; and

Sustaining natural resources:Land conversion, slash-and-bu rn agriculture, and inten se exploitation of wa ter have

led to r apid deterioration of natur al resources. Forest cover fell dr astically from 53 percent in 1961 to 25 percent in

1998, and over-harvesting of mar ine fisheries has redu ced fishing yields by 80 percent between 1963-19933. Ofparticular concern is water scarcity, which occurs against a backdrop of low availability, high pollution, and

increasing per capita consumption. In 2000, Thailand ranks the lowest in ASEAN for annual per capita water

availability 4, but it ranks 14th in the w orld in indu strial organic water p ollution5. To better balance conservation

and exploitation of natural resources, the country n eeds to ensu re an integrated app roach to sustainable resource

man agemen t, eliminate har mful subsidies (such as excessive use of pesticides and over-fishing), and assist in the

capacity building of local institutions an d comm un ities.

iii. Recent Developments: A new Constitution was framed in 1997, which for the first time guarantees the right of

comm unities to protect and manage the environment an d natural resources and in October 2002, the Government

established a new Ministry of Natural Resources and Environment (MoNRE), as part of the overall public sector

restructuring. These developm ents plus the em ergence of environment and natural resource issues on the national

agenda; and a rapidly expand ing civil society and comm unity-level environmental movement, provide an opp ortune

time for the p roposed Cou ntry Developmen t Partnership for Environment (CDP-E).

1 PCD, 2003, State of the Pollution Report 2002, Bangkok, Thailand, p. 172 PCD, 2003, State of the Pollution Report 2002, Bangkok, Thailand, p. 33 http :/ / www.unepscs .org/ ProjectComponent/ Fishery / Problems/ problems.h tm4 World Resources Institute , 2003, World Resources 2002-2004, Washington, DC, pp. 274-2775 World Bank, 2003, World Development Indicators 03, Washington, DC, pp. 140-143.

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iv. CDP-E Priorities: Using a selectivity approach, the specific medium-term priorities for the CDP-E have been

identified. Accordingly the CDP-E, will focus on improving environmental qu ality, and is organized arou nd four specific

themes -- air quality, water quality , and waste, global environment commitments and one cross-cutting theme -- institutions and

instruments-- wh ich are d escribed below.

Air Quality: The focus is to sup port Governm ents continuing efforts to redu ce fine particulate matter in Bangkok.

Water Quality: Integrated watershed management wil l be addressed by pi lot ing the area-funct ion-

participation approach in priority watersheds. Ping River Basin in Northern Thailand has emerged as the

priority. In addition, the CDP-E will selectively target point sour ces of pollution like enterp rises (man ufacturing

and livestock) and municipal wastewater treatment facilities to control pollution from land-based sources to

rivers and coastal waters.

Waste Management: The focus is to expand reuse and r ecycling efforts and im prove disposal p ractices.

Global Environment Commitments: The thrust will be the continuing efforts to support the government and

private sector to reduce ozone d epleting substan ces and carbon d ioxide an d initiate new efforts to contain other

selected harm ful chemicals. Institutions and Instruments: The Bank h as previously supp orted the Governm ent w ith analytical stud ies that

contributed to the establishment of MoNRE. With this being achieved, the CDP-E will now focus on strengthening

specific instrum ents for participation, compliance and finan cing.

v. Results: The CDP-E is supp orted by a r esults-based m onitoring system that w ill allow th e progr ess to be monitored

by stakeholders. The CDP-E activities, outpu ts and outcomes (intermediate and desired) are presented in a two p art

document, and summ arized in the attached chart.

The Development Matrix begins with a definition ofoutcome-oriented objectives for each selected them e of the

CDP-E. For each objective, the outputs to be realized are identified an d benchmarked so th at progress can be

tracked d uring the three-year period. The supp orting capacity building inputs are also identified in this matrix;

an d

The Partnership Matrix further elaborates the inputs and identifies funding opportunities for specific capacity

building initiatives. These initiatives wo uld be fun ded th roug h both interna l and external (international

partn ers) sources.

vi. Implementation and Partnership Arrangements: The CDP-E will be implemented over a three year p eriod between

2004 and 2007. MoNRE will be the main counterp art agency and th e Pollution Con trol Departm ent w ill function as the

technical secretariat. For each them e or comp onent, the m and ated agency will lead the w ork. Permanent Secretary of

MoNRE will chair a Steering Committee to provide guidance and oversight for the overall program, while specific

working grou ps w ill assist individual components to bu ild consensus. An imp ortant aspect of identifying CDP-E

priorities, included consu ltation w ith civil society organizations and the p rivate sector, and some have expressed strong

interest to collaborate in the imp lementation of the CDP-E, which is already evident from their role in the p reparation ofEnvironmen t Monitors. The international partners includ e the Japan Bank for International Cooperation, United States-

Asia Environment Partnership and the Un ited Nations Development Program . The private sector participation w ill be

facilitated throu gh the Federation of Thai Indu stries. Resource mobilization will be a continuou s process, and the fund s

needed for the first year for some of the comp onents have already been m obilized. The Government an d the Bank w ill

exchange letters at the launch of the CDP-E which will outline the respective commitments for the successful

implementation of the program .


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1. Thailand h as mad e significant p rogress since the economic and financial crisis in 1997-98. Macroeconom ic stabilityhas been restored, the government has been reorganized, access to international capital markets have been

reestablished, inflation rema ins low, and GDP grow th in 2003 was 6.7 percent 6, the h ighest since 1997. Prior to 1997,

Thailand enjoyed a three-decade long rapid economic growth that not on ly generated m ore income for millions of Thais,

bu t also cau sed significant adv erse environm ental effects. The 1997 crisis revealed num erou s weakn esses of

fund amen tal econom ic, social, environmen tal, and governance structur es. Thailand s new constitution in 1997 was a

landm ark in the coun trys history. It sets out an am bitious vision for Thailand s future, driving fun damen tal changes in

the coun trys political, econom ic and social fabric, and for th e first time gu aran tees the right of comm un ities to p rotect

and m anage the environment and n atural resources.

2. To realize the vision laid dow n by the constitution and ad dress the challenges of growth an d p overty reduction, a

comprehensive national development agenda has been formulated around four pillars: Human and Social Capital,

Competitiveness, Poverty and Inequality, and N atural Resources and the Environment. In response to this, the Thai government

and the World Bank have laun ched several Country Development Partnerships (CDPs)7, which are know ledge-based

partnerships that set ou t med ium-term integrated frameworks for reform p rograms in p riority areas. The CDPs are led by

the Government, with the Bank and other partners supporting the development of the overall reform framework,

analytical work, capacity bu ilding, an d provision of technical assistance. The CDP structure is further elaborated below.

Box 1. The Country Development Partnership (CDP)

What is the CDP?

The Country Development Partnership (CDP), launched in 2000, is a knowledge-based partnership. The CDP is a three-year integrated

framework for actions in key areas of the countrys development agenda. Each CDP is led by the Government with support from other

stakeholders, including the Bank and other donors. The CDP also serves as a vehicle for engaging civil society, the private sector, andother partners in the policy design, implementation, and monitoring process.

Depending on where support is needed, the Banks engagement in a CDP can take the form of analytical and advisory activities,

technical assistance, donor coordination, and/ or partnersh ips. In add ition, as approp riate, investmen t projects can selectively support

implementation.

How does the CDP work ?

Step I

The Government selects key priority areas for the CDP

An outcomes-oriented action plan with a clear timeline, milestones, and accounta bilities is formulated, based on strong analytic

workas laid out in a Development Matrix which describes the CDP objectives, output benchmarks, and capacity building inputs

Division of labor and supp ort from other partners is agreedas laid out in a Partnership Matrix which details the inputs of partners

and identifies potential resources to be tapped as well as any funding gap

Arrangem ents for specific AAA, TA, and capacity building support are determinedStep II

Progress is monitored through pu blic workshops with stakeholders annually or biannua lly

Specific action plans are fine-tuned and ad justed based on the progress review meeting

Interim implementation reports are completed and disseminated to stakeholders

Step III

CDP progress is integrated in a comprehensive progress review on the national agenda

Source: Thailand Country Assistance Strategy, December 2002 (Report 25077-TH)

6 NESDB7 The current CDPs are: (i) Government and Public Sector Reforms; (ii) Social Protection; (iii) Poverty Analysis and Monitoring; and (iv)

Financial and Corporate Competitiveness. A CDP for education is also currently under discussion.


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3. The creation of the new Ministry of Natural Resources and Environment (MoNRE); the emergence of environment

and natural resource issues on the national agenda; recent accomplishments in air qu ality m anagement; and a rap idly

expanding civil society and commun ity-level environmental m ovement; provide an opp ortune time for the proposed

Country Developm ent Partnership on Environment (CDP-E).

4. This document p resents the CDP-E program, which aims at assisting the Government and stakeholders to formulate

and implement a med ium-term reform agend a that respond s to the growing environmen tal challenges of the country.

Specifically, the programs objective is to imp rove environ mental quality by sup port ing the imp lementation of the reform

agenda with the corresponding capacity bu ilding, technical assistance, analytical advisory and investment needs through

a coordinated app roach. The expan sion of the CDP-E to includ e natu ral resources conservation w ill be considered later,

once more diagnostic work is comp leted.

5. This document includes text and matrices. It begins with an Introduction of CDP-E, then provides an h istorical

evolution of environmental policies and followed by an assessment of the State of the Environment and themain Challenges

that need to be addressed to improve environmental quality. The next part of the document describes the CDP-EFramework, Strategy and Components along with Development and Partnership Matrices. This is followed by a

description of the Results Measurement and Management, wh ich p rovides an ap proach to measure ou tcomes w ith a

matrix summ arizing the anticipated results. The Institutional and Partnership Arrangements and Budgetan d Resource

Mobilization sections outline the approach to imp lementing the CDP-E. This document concludes with an analysis of the

Development Impactan dRisks

6. Even though env ironmental problems hav e been moun ting in Thailand, it is not un til after the economic crisis thatenvironmental issues began r eceiving the m uch d eserved attention, beginning with the 1997 Constitution. Subsequently,

the momentu m has been strengthened by the completion of a long range p lan for Enhancement and Conservation of

National Environmental Quality, the Ninth National Economic and Social Development Plan, and the Public Sector

Reform Progr am w hich created the new Ministry. Earlier efforts included the enactment of the National Environm ental

Quality Act in 1992 and establishmen t of the sup porting institutions; ph asing out leaded gasoline; improving energy

efficiency; investing in w ater pollution abatemen t; containing d eforestation; and increasing the nu mber of protected

areas.

7. On issues of environment and natural resources, the 1997 Constitution guarantees public participation in

environmental management and conservation more than any p revious constitution. The pu blic and local comm unities

are ensured th e right to conserve and u se their environment and natural resources in a sustainable mann er, such as

through commun ity forestry managem ent. How ever, the specific app lication an d constraints on th ese rights will besubject to laws and regu lations governing sp ecific resources, such as w ater and land r esources, forests, and w ildlife.

8. The Policy and Prospective Plan for Enhancement and Conservation of National Environmental Quality: 1997-2016,

developed by OEPP, provides the long-term vision for environmental protection, as a blueprint for sustainable

economic growth . Six policy areas are ad dr essed: (i) natu ral resources; (ii) pollution p revention an d abatemen t; (iii)

natural an d cultural heritage; (iv) comm unity involvement; (v) environmental edu cation and prom otion; and (vi)

environmental technology. In accordance with national economic development plans, the Prospective Plan promotes

greater involvement of local organizations in environmental protection, increasing the role for communities, and

improving en forcement and m onitoring capacity to better implement the law.

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9. TheNinth National Economic and Social Development Plan focuses on three m ain strategies: (a) strengthening Social

Foundation an d Environment, (b) Adjustment to the New Economy and Sufficiency Economy, and (c) Good Governance.

A Natu ral Resources and Environmen tal Managemen t strategy, includ ed und er the first strategy, sets specific targets

aimed at: (i) sustainable utilization of n atural resou rces, in line with conservation and rehabilitation, and (ii) cooperation

of all parties in red ucing har mful environ men tal impacts, through local level par ticipation.

10. The Public Sector Reform Program has been intensified after the 1997 finan cial crisis and d emonstrated the need for

the Government to provide more effective leadership and efficient management in guiding the economy towards

recovery. Modern izing the public sector and civil service became an immed iate and urgent p riority. In May 2000, the Civil

Service Commission announced a plan for reorganization of economic ministries in order to strengthen economic

developmen t and internationa l comp etitiveness. Finally, in October 2002, a new Ministry for Natu ral Resources and

Environment (MoNRE) was established with both environment and natural resources management functions

(see Box 2).

11. In sum , the Thai government, through recent pronou ncements and actions, has begun according high priority to

add ressing the countrys environment and natural resource issues which were overlooked du ring the high growth years.The coun try is once again returning to a robu st growth p hase, and the challenge is to simu ltaneously imp rove its quality

and sustainability.

Box 2: MoN RE Functions and D epartments

Cluster

Policy and Management

Environment

Natural Resources

Water Resources

Department and/or Agency

Office of the Permanen t Secretary

Office of Natu ral Resources and Environm ent Policy and Planning

Pollution Control Department

Department of Environmental Quality Promotion

National Park, Wildlife, and Plant Conservation Departm ent Royal Forestry Department

Departm ent of Mineral Resources

Department of Marine and Coastal Resources

Department of Water Resources

Department of Ground water Resources


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12. Thailands economic expansion has been accomp anied by significant environmental costs. Rapid expansion ofindu stry and increasing population, especially in ur ban areas, has rap idly increased the levels of pollution (solid and

hazardou s waste, air, noise, and w ater). It has been estimated that air and water p ollution cost anywhere betw een 1.6

and 2.6 percent of the GDP. Land conversion, slash-and-bu rn agricultur e, and intense exploitation of water have led to

rapid d eterioration of natu ral resources.

Trends and Responses

13. The Environment Monitor Series, launched in 2000 and now in its fifth year, has emerged as a key diagnostic tool

to assess current environmental trends in the country, primarily in the brown agenda. The first Monitor in 2000

sum mar ized the general environmen tal trends; the Monitor in 2001 examined th e causes of water pollution; the third

issue in 2002 assessed the sou rces, causes and impacts of air pollution; and the fourth Monitor in 2003, focuses on the

state of solid and h azard ous w aste managemen t. The fifth Monitor, to be pu blished later this year, analyzes the causes

and impacts of degradation of forests, coasts and biodiversity, and thus foraying into the green agenda. A su mm ary of

the environmental trends an d country responses follow.

Air Quality

14. Thailand has made remarkable progress over the past decade in combating air pollution. While overall air quality has

improved, it remains a p roblem in traffic corridors and urban centers like Bangkok. Levels of lead and carbon mon oxide

in Bangkok an d other urban centers have fallen dram atically in the 1990s. Add itionally, particulate matter ha s redu ced

in the last five years. As a result, visibility in Bangkok h as increased an d the health costs associated w ith air pollution

have decreased.

15. These improvements are due to public and private sector

actions that red uced em issions from a var iety of sectors

including transport (less polluting fuel and vehicles),

power (shift to natural gas and low-sulfur coal; energy

efficiency and demand-side management), industry

(cleaner prod uction from large industries), as well as other

sources such as crematoriums and open bu rning. Among

the many commendable initiatives are: completing the

phase-out of leaded gasoline by 1994; improving fuel

quality and engine specification; curbing p ollution from

pow er p lants; moving enterp rises to cleaner p rodu ctionpractices; tightening construction stand ard s; impr oving

pu blic transport; and su bstantially redu cing th e use of

ozone dep leting substances.

Chart 1. Annual Ambie nt PM10 Concentrations i n

Bangkok, 1996 - 2000 (g/m3)

Source: PCD, 2002. Data came from 8 sites.

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16. While monitoring d ata indicate the air quality comp lies with the countrys air quality standard s for most types of

pollutants, ozone and particulate matter still commonly exceed standards in many locations. Of greatest concern to pu blic health

is particulate matter, which exceeds stand ard s along the traffic corridors in u rban a reas. These emissions come from a

variety of sources includ ing d iesel-pow ered bu ses and trucks, older 2 stroke motorcycles, agriculture an d dom estic waste

burning and forest fires. The total cost of exposure to PM10

six cities of Thailand for excess death s and bronchitis is

estimated at US$ 644 million, ann ually wh ich is a lower boun d of the health damage.

Wat er Quality

17. A ll major rivers in Thailand have been degraded relative to their natural state8 . Pollution is most severe in Bangkok and

the Central and Eastern Regions wh ere major rivers are polluted to the point w here large sections are only su itable for

transport. In other regions, serious water pollution is more dispersed, occurring only in areas with major pollution

sources or at certain times, such as the d ry season w hen a rivers assimilative capacity is low. In many areas, river water

quality deterioration has put severe restraints on comm ercial and subsistence fisheries, limiting the quan tity and quality

of the fish catch an d preventing aqu aculture d evelopm ent. In ad dition to surface w aters, coastal and ground waterquality is also being ad versely affected by increasing pollution an d externa l pressur es. Agricultu ral run -off, pesticide

residues, coastal aquaculture, industrial effluent and domestic sewage, as well as saltwater intrusion from over-

extraction are responsible for the pollution of ground wa ter in Thailand . The coastal and m arine waters in the Gulf of

Thailand are u nder thr eat from both land -based and maritime pollutants

18. Most of the wastewater in Thailand goes un treated.Curr ently, Thailand has the capacity to treat only 30 percent of the

wastewater prod uced by hou seholds in m unicipal areas9. The actual quan tity treated is mu ch lower as appr oximately a

third of the plants do not operate and another third are poorly operated 10 for a variety of operational reasons. This despite

the govern men t having inv ested m ore than U SD 1.7 billion in 87 wastewater tr eatmen t facilities, over the last decade.

Additionally, only a small fraction of industries treat their wastewater, with the remainder contributing organic and

toxic pollution to the nations waterw ays and coastal areas.

19. The Thai Government has put into place policies,

plans and water qu ality standard s in an effort to reduce

wa ter pollution. Fiveyear plans -- which emphasize the

Governments commitment to the rehabilitation of

natural resources -- have included improving water

qual i ty as an important goal . However , the Thai

regulatory system for w ater resources man agement and

pollution control remains centralized and fragmented.

Also, wh ile num erous wastewater treatment plants have

been constructed to ad dress water p ollution, budgetary

shortfalls, especially at the local level, are affecting theoperations and maintenance of these plants.

Chart 2: Condition of Water Quality

Source: Pollution Control Department, 1999

8 PCD data indicates that none of the major rivers in Thailand can be classified as natural.9 Based on PCD 2000-2001 data on treatment plants and World Bank estimates of municipal population covered.10 Based on PCD 2000-2001 data on treatment plants and World Bank estimates of municipal population covered. Operational data from

survey of REOs, April 2001.


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20. Water pollution causes dam age to human h ealth, fisheries, and agriculture, and results in associated h ealth and

economic costs. Diseases relating to contam inated w ater range from d iarrhea to birth defects. Preliminary health cost

estimates from rep orted cases of diarrh ea, dysentery an d typ hoid am oun ted to US$23 million in 1999. In ad dition, the

unchecked discharge of solid waste and wastewater is beginning to adversely impact major tourist destinations like

Phuket, Phi Phi, Samu i, Chang, and Samed island s, and Chiang Mai.

Wast e Management

21. Thailand currently prod uces nearly 22 million tons of waste from residences, industries, businesses, and hospitals.

This is likely to increase in the coming years as the country is recovering from the financial crisis, and once again

return ing to a period of high grow th, fueled by consum er spend ing and exports. For example, if current trend s hold and

recycling rates remain low, it is likely that by the end of the decade mu nicipal w aste generation would grow 25 percent

and indu strial hazardous w aste would grow 35 percent. Thus solid and hazard ous w aste is fast emerging as an acute

urban environmental problem. Although m uch p rogress has been made, collection, treatment and disposal systems have

not kept u p with the growth in prod uction of residential solid w aste, indu strial waste and infectious w aste, wh ile mostof the haza rdous w aste is not d isposed or treated prop erly, wh ich is increasing the risks associated with the release of

toxins includ ing hum an exposure and the contamination of groundw ater.

22. Collection has vastly improved but disposal facilities are inadequate.Bangkok Metrop olitan Au thority (BMA) collects

nearly all of the m un icipal solid w aste generated by its popu lation of eight million, in other cities and smaller u rban a reas

it averages between 75 and 86 percent. However, the user fees only covers a small fraction of the operating costs of

mu nicipalities. Over a 100 disposal sites have been new ly constructed, bu t only 6 percent of these operate as sanitary

land fills according to acceptable environm ental standa rds11. Many of the sites are dum ps an d the engineered landfills

that are operated without the proper environmental controls are posing health and environmental risks to the

surrou nd ing commu nities, waste wor kers and commu nities. As a result, confidence in d isposal facility operation is low

with n early half of the p roposed sites in p rovincial capitals having experienced opp osition from the local comm unity. Of

those, a third had to aband on or postpone p lans to establish a new landfill due to strong resistance from people living

near the p roposed site.

23. Hazardous waste disposal is a major problem. Only 24

percent of the hazardous waste produced in Bangkok

and vicinity is treated by licensed centralized treatmen t

facilities and as a result on ly a por tion of the capacity of

these facilities are being utilized. The remainder is

managed using a combination of lower cost and often

times less regulated practices. App roximately 14 percent

of the waste is managed off-site through disposal by

other unlicensed treatment and disposal operators, wastebuyers and private recycling firms. In addition, 56

percent of hazardous w aste is managed on the factory

site which, due to the large numbers of factories, is

difficult to regular ly monitor. These practices are poorly-

or un-regulated and have resulted in many reported and

unreported cases of illegal dumping in open fields,

watercourses and un dergroun d well12.

Chart 3: Percentage of materials with recyclable potential

in Muni cipal Areas of Thailand

Source: PCD (Recycling) Study; 2001

11 World Bank, 2003, Thailand Environment Monitor 2003, Bangkok, Thailand12 JICA 2002, Burt, 2001 and Bangkok Post, various issues

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24. Only 11 percent of the waste in the country is currently recycled, annually m ore than 4.5 million tons of recyclables

valued at Thai Baht (THB) 16 billion (nearly US$400 million) are thr own away by h ouseholds an d businesses13. With

improved recycling, a portion of this potential market could be tapped while significantly reducing disposal costs.

Despite an active group of approxima tely 25,000 informal recyclers in the coun try w ho p rofitably collect and trade th is

waste the limited n um ber of forma l recycling prog ram s and low levels of public par ticipation have kept recycling rates

low in Thailand. Taking advan tage of this opportun ity will hinge u pon developing effective incentives and awareness

of the people to separate and recycle waste in their homes; and develop ing private sector and comm un ity-led recycling

prog rams w hile protecting the welfare of the informal recyclers who d epend up on recycling for a living.

Over the p ast decade, Thailand has mad e strides in ad dressing the massive task of managing this w aste, including the

establishmen t of solid and hazardous w aste disposal facilities, impr oving mu nicipal man agemen t of waste nationwide

and cleaning up a littered Bangkok. These successful experiences and the current interest among government, the

general pu blic and private sector, positions Thailand to take decisive steps to addr ess the unfinished agend a, with an

increased focus on: reducing and recycling waste, imp roving treatment and safe disposal of solid and hazard ous

wastes, and enhancing the sup porting institutional, regulatory and financing framework.

Global Environment Commitments

25. Thailand is a signatory to many international conventions to protect the environment. Thailand is ahead of its

target to phase-out Ozone Depleting Substances (ODS), and is set to meet its 2010 obligations under the Montreal

Protocol. Between 1996 and 2001, there w as a 60 percent red uction in consump tion. It still has some d istance to travel to

adequ ately ad dress and contain p ersistent organic pollutants and other harmful chemicals such as halons and methyl

bromide.

26. Recently, Thailand ratified the Kyoto Protocol. As a developing coun try, no emission red uction obligation is re-

quired . The Clean Developmen t Mechanism (CDM) and other innova tive carbon financing schemes, such as Prototyp e

Carbon Fund (PCF), Commu nity Development Carbon Fund (CDCF), and BioCarbon Fund are available to Thailand.

Main challenges for addressing environmental quali t y

27. A summ ary of key challenges identified in the Environment Monitor series is sum marized in Box 3. Moving

forward, the Thai Government n eeds to bu ild on its recent successes in imp roving air and water qu ality, and waste,

chemicals and toxics managem ent. The establishment of the Ministry of Natu ral Resources and Environment (MoNRE),

fills an importan t void, in creating an un ified institutional structure for environm ental protection. The challenges for the

young Ministry are many, and most importantly it needs to weave together an integrated p olicy and legal framew ork

that w as previously ad ministered by several ministries, and also harmon ize different organizational processes to p rotect

air and w ater.

In air quality, Thailand n eeds to focus on reducing PM10 emissions and containing ozone levels in Bangkok andother rapidly grow ing secondary cities, while at the same time ensuring that the other pollutants remain u nder

check. In add ition, attention need s to be directed tow ard s strengthening the analytical capability in emissions

inventory and h ealth impact assessment, stepping u p enforcement, and expand ing monitoring and mod eling;

To im prove water quality, Thailand needs to aggressively implement its articulated position of area-based

integrated water resources management that recognizes both qu ality and quantity, demand and supp ly, with the

par ticipation of all stakeholders. It needs to target a few w atersheds or river basins to be able to dem onstrate this

13 World Bank, 2003, Thailand Environment Monitor 2003, Bangkok, Thailand


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integrated and participatory approach, before embarking on a broader national program. It also needs to make a

concerted effort to control pollution from enterp rises, hou seholds, farms and mu nicipal facilities; and

Ad dressing waste managementis important in the context of reducing public health and environmental risks.

The Government needs to significantly step-up efforts to substantially expand reuse and recycling of waste, while

at the same time ensu ring that treatm ent and disposal of waste is both safe and cost effective.

Resp on din g to global environment commitments requ ires Governmen t and ot her stakehold ers to act collectively

to solve problems at the local and regional levels. While good p rogress is being m ade in phasing out O DS, priority

should be given to containing persistent organic pollutants and other harmful chemicals like methyl bromide.

Thailand could also explore opportu nities to tap global resources und er the Clean Developmen t Mechan ism

(CDM) and other carbon financing instrum ents.

Box 3: Thailand Environment Monitor 2000-2003Challenges

2000 General Environment (also Sector Strategy Note)

Rest ru ctu ring in st itu tion s

Enforcing environmental regulations

Managing water resources and improving water quality

Improving air quali ty in Bangkok

Improving the management of protected areas and

accelerating reforestation efforts

Arresting soil erosion

Improving coastal zone management

M an aging sol id an d h azard o u s waste

Planning the development of secondary cities

2001 Water Quality

Foster ing local par ticipation

Harmonizing laws and functions by addressing overlaps

in institutions and jurisdiction

Strengthening compliance by providing incentives for

pollution control

Improving efficiency of budget allocation and

rationalizing investments in wastewater

Promoting opportunities for private sector participation

Increasing public awareness

2002 Air Quality

Targeting PM10 reduction in Bangkok

Improving monitor ing and enforcement

Improving public transport and traffic management

Strengthening institutional effectiveness

Broadening public par ticipation

Harnessing global opportunities for local good

2003 Solid and Hazardous Waste Reducing and recycling waste

Making d isposal of solid waste safer

Plugging the regulatory gaps in hazardous waste

Promoting the application of user fees

Confronting capacity constraints, especially at the local

government-level

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28. At the core of tackling these challenges lie some significant institutional issues, particularly, decentralization, partici-

pation, compliance and financing. The presence of MoNRE creates an unique opportunity for defining an integrated

app roach to identifying the ap prop riate instrum ents for addressing these issues.

As ment ioned previously,participation by commun ities in m anaging the environment and natural resources is

now man da ted by the Constitution. Tools to give intent to this provision are in fledgling stage of developmen t,

with emph asis given to incorpora ting consultation and p articipation techniqu es in the countrys Environm ental

Impact Assessment p rocess;

Sup plementing the traditional comman d-and-control enforcement measures, with flexible economic instruments

and voluntary p erformance d isclosure tools could provide th e needed incentives for p olluters to imp rove their

compliance with regu lations. Previous stud ies have led to the d esign of plans an d pilot programs for p ollution

charges and p ublic disclosure, which now need to be implemented; and

Thefinancing framework for funding environmental improvement is inadequ ate, with a large invest-ment back

log both in the public and private sector. As explained, municipal wastewater facilities in many instances are

proving to be inefficient investments. Similarly, the Environmental Fund (EF) is yet to achieve its founding

objectives of becoming a revolving mechan ism. There is a need to d evelop an integrated framework that covers the

reforms to the Environment Fund , bud get allocation, tracking expenditures, managing revenues from charges and

taxes and levying fees for environmental services.

Following the decentralization law in 1997, the Governmen t exped ited the tr ansfer of fun ctions to elected local

governmen ts includ ing increased allocation of the revenue bud get. The local govern -ments have a major role in

protecting, improving and m anaging the local environmen t. How ever, they are reluctant to take over

environm ental respon sibilities for lack of interest and capacity, which they p erceive as a n ational responsibility.

The Government r ecently introduced the CEO-Governor p rogram, on a pilot basis, as a means to deconcentrate

central functions to the prov inces and exped iting service delivery. MoNRE is yet to finalize its decentralizationpolicy. In the meantime, it is using the erstwhile Regional Offices (of the form er Ministry of Science, Technology

and Environment) and recently appointed Provincial NRE Officers as the pathway to build capacity of local

governm ents and p rovide services.

29. Link to World Bank Country Assistance Strategy (CAS). The Banks Board endorsed the Thailand CAS 2003-2005 in

December 2002. The CAS un der scores the changing natu re of relationship between Thailand an d the Bank Group,

wh ich h as progressed from borrow er-lender relationship tow ard a true development p artnership. The Banks role has

evolved more tow ard facilitating kn owledge sharing and providing policy ad vice on m edium-term structural issues. TheCAS for Thailand is also known as the Partnership for Development (PFD). The partnership focuses on diagnostic and

monitoring work and limited amount of implementation support for selected critical issues in Thailands overall

national developm ent agend a. The CAS or PFD recognizes CDPs as partnership s with costs financed by the Govern-

men t, the Bank, and other d onors that will be the cornerstone of the Bank's imp lementation sup port to Thailand . The

PFD also acknowledges that, with the emergence of environmen t and n atur al resources as a key pillar of the national

agenda and creation of a new Ministry of Natural Resources and Environment, an op portun ity exists to deepen the

Bank's policy dialogue with the Governm ent.


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14 A. Poungsomlee, S. Dilokwanich, and I. Grange, 2003, Civil Society Partnership: Thailand Country Development Partnership for the

Environment (CDP-E), Faculty of Environment and Resources Studies, Mahidol Un iversity, Nakorn Pathom , Thailand

Box 4: CDP-E Process

1. Identification: The CDP-E concept was initiated through dialogue among partners in the public and private sectors, international and

bilateral agencies, civil society organizations, academia, and the World Bank. The Environment Monitor series has played an important

role in identifying priorities and d efining key challenges, which form the basis of CDP-E. Add itionally, background studies und ertaken

by partners on topics such as Decentralization, Environmental Fund, Environmental Impact Assessment, Economic Instruments, and

Public Disclosure are available to assist the policy reform agenda of MoNRE.

2. Preparation and Appraisal: The CDP-E concept emerged through series of discussion with MoNRE and extensive consultation with

partners.

3. Coalition Building: MoNRE will lead workshops to disseminate the draft CDP-E concept paper, where comments from various

stakeholders will be sought. The CDP-E lays out a process of involving stakeholders at various stages of implemen tation.

4. Results and Outcome: Trust Fund and resources from international partners will be identified. The implementation of CDP-E will rely

primarily on the partnership approach where the government is taking the lead with active participation from civil society organizations,

local commun ities, and N GOs. Monitoring and evaluation framework is central to CDP-E. Periodic reviews will be hosted by partners to

moni-tor the p rogress of the implementation of CDP-E. Implementation constraints w ill be identified th ough a p articipatory p rocess.

Remedial measures will be formulated. Lessons learned will be shared with both national and international audience.

5. Policy Reform and Evaluation: The effectiveness of CDP-E interventions w ill be evaluated overtime throu gh th e Environment Monitor

Series

31. Selectivity Criteria: A selectivity framew ork (ann ex 1) examines the pr iority issues recognized by MoNRE; civil

society and p rivate sector; and those identified through the Environmen t Monitor Series. The CDP-E aims to support

environm ental activities by the Bank an d other international partn ers that meet three criteria:

Relevance to National Development Agenda implies consistency with the Constitution of 1997, National

Environmental Quality Act, National Agenda, 9th National Econom ic and Social Developm ent Plan and 20-year

Environment and Conservation Plan.

Country Ownership and Implementation Experience, which includes the commitment of the RTG, past experience

in implementing reforms and projects, leadership demonstrated by MoNRE and other agencies, and theparticipation and involvem ent of other stakeholders.

Banks Group Comparative Advantage involves an examination of whether it has been identified as a priority in

the CAS, availability to assign sp ecialists on a timely basis, ability to mobilize fun ding for TA activities and country

and sector knowledge

30. Approach:The CDP-E process is outlined in Box 4. The design has benefited from (i) consultation with stakehold ers;

(ii) Banks on-going d ialogue with Govern men t, and national and intern ational partn ers; and (iii) previous ana lytical

studies undertaken in the country. Three consultation workshops were held to discuss strategies for Thailands

environmen tal management between March and May 200214. Two of the w orkshops involved civil society, and included

participan ts from the med ia, environmen tal NGOs, community organizations and p roject group s. A third workshop for

the private sector, organized and mod erated by th e Federation of Thai Ind ustries, was attend ed by participants from

different ind ustry sectors.

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32. CDP-E Strategy: The objective is to improve environmental quality by supporting the imp lementation of a m edium -

term reform agenda w ith the correspond ing capacity building, technical assistance, analytical adv isory and investm ent

needs to address the challenges identified above. In response to this objective, the CDP-E is organized around four

specific them es --air quality, water quality , waste, global environment commitments, and one cross-cutting theme --institutions

and instruments which are described below.

Air Quality: The focus is to sup por t Governm ents continuing efforts to reduce fine particulate matter in Bangkok

and other rapidly grow ing secondary cities

Water Quality:Integrated w atershed m anagem ent will be add ressed by piloting the area-fun ction-participation

app roach in priority watersh eds. The Cabinet recently app roved a rehabilitation framework for the Ping River

Basin in Northern Thailand, and thus has emerged as the CDP-E priority. Ping River is among priority river basins

show ing signs of rap id deterioration in water quality. In add ition, the CDP-E will selectively target point sou rces

of pollution like enterprises (manufacturing and livestock) and municipal wastewater facilities to control

pollution by improv ing their comp liance and operational performance;

Waste Management: Priority will be given to assist Governmen t, private sector and civil society to expand reuse

and recycling efforts for solid waste and imp rove d isposal practices;

Global Environment Commit ments: The thrust of the CDP-E will be the continuing efforts to support the

government an d private sector to redu ce ozone depleting su bstances and carbon dioxide an d initiate new efforts

to contain other selected har mful chemicals.

Institutions and Instruments: The Bank has previously supported the Government with analytical studies that

contributed to the establishment of MoNRE. With this being achieved, the CDP-E will now focus on specific

instrum ents and the broad er decentralization agenda, namely: (i) mod ernizing the EIA process; (ii) adv ancing the

app lication of economic instru men ts and p ublic disclosure tools for strengthening comp liance and enforcement;

(iii) establishing an integrated framework that will include the Environment Fund, pollution charges, budget

allocation, expend iture tracking and cost-recovery for services; (iv) enhancing role of the judiciary in p romoting

sustainable development (v) assisting in the capacity building of selected local governments through activities

sup ported un der the above four specific themes; and

In add ition, the CDP-E will serve as a vehicle to broker Thai knowledge and expertise to other countries in the

region.

33. As environment cuts across political and geographical jurisdictions, the implementation of the above strategy will

be a shared responsibility am ong the different p artners at th ree levels: (a) among the d ifferent stakeholders; (b) between

the central governm ent institutions and local governm ents; and (c) across central governmen t ministries and agencies.

The details are furth er explained in sections G and H.


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34. The main components and their objectives are summarized below and the key outputs and outcomes are explainedin the Developmen t and Partnersh ip Matrices (Matrix 2 and 3).

Comp onent 1: Air Quality Reducing fine par ticulate m atter in Bangkok (US$ 2.5 million)

The imm ediate objective of this comp onent is to develop a compreh ensive diesel pollution red uction man agemen t

strategy and action plan for Bangkok. The main activities of this component are: (a) building a city-level database

collecting d ata on ambient fine pa rticulate matter (PM2.5

), estimating d iesel vehicle emissions, and assessing cu rrent

policy regime for transport, energy and environmen t and identifying barriers and cau ses; (b) analyzing policy and

technical options covering public transp ort, traffic and d eman d managem ent, emission stand ard s, enforcement, fiscal

incentives and method s to identify gross polluters; and (c) developing action plans, assessing outcomes and disseminat-

ing the find ings.

Comp onen t 2: Water Quality Prom oting integrated watershed m anagement in priority River Basins (US$ 2.25

million)

The immed iate objective of this comp onent is to imp rove the environm ental quality of the Ping River Basin. The

specific activities are: (a) developing a p articipa tory m icro-watersh ed m anagem ent m odel that p rovides access to all

stakeholder s (commu nities, local governm ent agencies and p rivate sector enterp rises) in the decision making p rocess,

and d emon strating its imp lementation; (b) enhancing the capacity of stakeholders, especially comm un ity group s and

local governmen t, to participate in the plann ing, implementation and m onitoring of interventions; (c) strengthening the

regulatory and incentive mechanism to mod ify behavior of watershed users; (d) d eveloping a results framew ork to

mon itor environm ent, health and livelihood ou tcomes; and (e) replicating the experiences to other river basins in the

country . An associated objective is to reduce the discharge of organic waste from mu nicipal wastew ater facilities and

livestock farms by improving their compliance and operational performance in selected provinces, some of them located

in the watershed of the Ping River Basin or in other priority river basins.

Comp onent 3: Improv ing Waste Managemen t (US$ 1 million)

The immed iate objective is to support local governm ents to impr ove their waste managem ent p ractices. The specific

activities includ e: (a) assisting in the establishmen t of an incentive fram ework to expand reuse and r ecycling of mun ici-

pal solid waste; and (b) building capacity of local governm ents to up grad e disposal facilities, including p rivate sector

participation.

Comp onent 4: Global Environment Com mitments (US$ 50 million)

The imm ediate objective is to reduce the harm ful effects of globally-significant pollutants. An existing US$45 million

project financed by the Mu ltilateral Fun d (MLF) is pr oviding techn ical and financial assistance to the private sector and

governm ent agencies to ph ase-out the u se of ODS in the coun try by 2010. Through a complementar y activity, sup ported

by GEF and MLF, assistance (US$ 5million) is being p rovided to concurrently red uce carbon d ioxide em issions an d ODSfrom buildings using chillers. Assistance will also be provided to phase-out methyl bromide and also to develop a

broad er chemical prog ram at the national and regional-level. Op portu nities for assistance from the PCF will also be

further explored.

Comp onent 5: Strengthening Institutions and Instrum ents (US$ 1.5 million)

The immed iate objective is to assist in th e developmen t of policy, regulatory, technical and financial instrum ents to

improve the effectiveness of institutions in support of the above four components. Specific activities include: (a)

implementation of economic instrum ents and pu blic disclosure tools (previously studied) in a pilot watershed or sectors;

(b) continu ing the reform agenda of transforming the Environment Fund to becoming a revolving m echanism an d

supp orting efforts to improve the codification of bud get and expenditure for environmental management as p art of

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national accounting; (c) assisting in incorporating p articipation in th e EIA system by su pp orting modern ization of the

EIA process; and (d) enhancing the role of the judiciary in promoting sustainable development. In addition, this

compon ent will supp ort add itional activities that w ill emerge du ring the imp lementation of the CDP-E

35. It must be recognized that results measurement in the CDPs is particularly difficult, as outcomes and impact of this

knowledge sharing partnership relies on m any comp lementary contributions of partners, and their attribution is diffi-

cult to establish. Also, the Banks direct contribution is less pronou nced than in trad itional lending program s, limiting its

ability to influen ce the final outcomes of the partnerships. In light of the above, the results framew ork mu st present a

transparent system in w hich the contributions of all partners are captured and recognized.

36. The CDP-E is supp orted by a results-based mon itoring system (see matrices 1-3) that will allow p rogress on the

above strategy and comp onents to be monitored by all the stakeholders. The appr oach proposed herein is consistent with

the overall app roach outlined in the Thailand CAS. The CDP-E activities, outp uts and ou tcomes are presented as a two

part document

The Development Matrix begins with a d efinition ofoutcome -oriented objectives for each selected theme o f the

CDP-E. For each objective, the outputs to be realized are iden tified and benchmarked so that progress can be

tracked during the life of CDP-E. The sup por ting capacity building inputs are also iden tified in th is matrix; and

The Partnership Matrix further elaborates the inputs and identifies funding opportunities for specific capacity

building initiatives. These initiatives can be fund ed throu gh both interna l and external (don or) sources. It also

lists potential external partners whose resources could be accessed. An indication of the funding gap is also

provided in the m atrix.

37. A consolidated Results Sum mary (Matrix 3) provides the linkages between the outpu ts (activities) of the CDP-E and

the environm ental outcomes and impact that are desired. The generic outp uts w ill be analytical stud ies (e.g. reducing

diesel pollution); options papers and pilot programs (e.g. participatory w atershed m anagement plan for Ping River

Basin and Managemen t mod els for rehabilitating wastew ater treatmen t facilities); guid elines (e.g. to phase ou t ozone

dep leting su bstances); and tra ining workshops (e.g. for provincial and regional MoNRE staff as well as other stakehold-

ers).

38. Ann ual Results Monitoring (ARM) Workshops w ill be cond ucted to review progr ess, assess outp uts, track

outcomes and d eepen accountability among CDP-E partn ers. The ARM workshops will be led by MoNRE, and includ e

representatives from other governmen t agencies, civil society and pr ivate sector. The ARM workshop s will be one or two

days events, organized arou nd the five components of the CDP-E. Ahead of the workshops, the MoNRE and the Bank

will upd ate the development matrix, highlight p rogress, identify gaps, recommend improvements an d suggest new

opp ortun ities. The workshop s will have ind epend ent facilitators, wh o will summarize the findings w hich will be shared

with th e stakeholders.

39. Indicators - Links to National Environmental Target (NET)s and MDG 7: The Government is now m oving from the

traditional five-yearly national economic and social development p lans, towards a m ore outcomes-focused d esign of the

Ninth Plan for allocating resour ces and assessing p rogress. Under the 9th Plan, three main env ironm ental targets have

been set: (a) establishing a management structure and app roach for environm ent and natu ral resource conservation that

is effective, transparen t, accountab le and p articipato ry; (b) preserving an d reh abilitating natu ral resources for sustain-

able use; and (c) maintaining environmen tal quality. Environmenta l ind icators have also been set for the targets, which


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serve as a benchmark to measure progress. Within this context, the Thai government is also reviewing how best to

achieve and/ or surp ass the Millennium Development Goals (MDGs), including the MDG-7 (environmental sustainability).

Collectively the NET and MDG7 indicators will be used to track CDP-E outcomes. Their current baseline status is

provided in Annex 2.

40. Key Institut ions:The CDP-E is a collaborative process led by MoN RE. Its Perm anent Secretary will chair a mu lti-

stakeholder (includ ing rep resentatives from oth er line agencies, academ ia, and civil society) steering comm ittee. The

PCD has been assigned to be the Techn ical Secretariat, wh ich w ill also take the lead for air quality and w aste manage-

ment. The other Government p artners are: (a) the Ministry of Indu stry/ Departm ent of Ind ustrial Works, wh ich has been

working w ith the Bank to ph ase-out O zone Depleting Substances; (b) Ministry of Transport/ Land Transport Dep art-

men t, will par tner w ith MoNRE in the implemen tation of the air quality comp onent; (c) National Econom ic and Social

Developm ent Board (NESDB) which will be work ing on un ified framew ork for environmen tal expen ditu re, taxes and

charges; and (d) Office of Natura l Resources and Environm ental Policy Plann ing for water quality component and also

for the EIA and EF reforms. To enhance inter-sectoral coord ination am ong these institutions, the CDP-E will be discussed

and endorsed by the ap ex inter-agency body for environment, the National Environment Board. The institutional

partn ers are identified below.

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41. Roles and Responsibilities of CDP-E Partners. As mentioned above, CDP-E will involve many Governm ent institu-

tions at the national level and some local governm ents. Private sector and civil societies have been actively participated

in all comp onents. Their roles and responsibilities in the implementation and monitoring of CDP-E are elaborated below:


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42. Partnership Arrangements : The following arr angem ents are envisaged:

Internal: The CDP-E comes at a time where there is great opportunity and potential for partnerships on

environm ental issues. Throu gh its constitutional reform, the Thai governmen t is in the p rocess of reaching ou t to

other stakeholders by developing an environmental governance system that is more responsive to the peop le

through local management that encourages publ ic involvement in planning an d implementat ion of

environm ental activities. At the same time, an expand ing civil society and comm un ity environmen tal movemen t

and a private sector that is increasingly proactive on environm ental issues have developed into valuable

contributors to environmen tal protection.

External: The CDP-E is structured to encourage the participation of bilateral and multilateral development

agencies in activities identified to address Thailands priority environmental problems. The US-Asia

Environmen tal Partner ship (US-AEP) of USAID, and Japan Bank for Intern ational Coop eration (JBIC) and United

Nations Development Program (UNDP) have expressed interest in working together in this area. The USAID/

USAEP has entered into a formal memorand um of und erstand ing with the Bank throu gh the U.S. Environm entalProtection Agency. Dialogue is ongoing to identify potential areas for collaboration. The preparation of the

CDP-E was also closely coord inated w ith the UNDP-led UN Developm ent Assistance Framew ork (UNDAF) for

Thailand, which was published recently and there is on-going collaboration between the two agencies in

providing su pp ort to the Governm ent on MDGs. As a demon stration of the p artnership arrangements, JBIC,

USAID/ USAEP and the Bank collaborated w ith the PCD to prepare the recently published Thailand Environment

Monitor 2003.

43. World Bank: The CDP-E will be man aged from the Bank Office in Bangkok and global techn ical resources will be

obtained from Headquarters. Regular meetings will be held between the Steering Committee and Banks team to

facilitate discussions and coordination. There will be ann ual review meetings to take stock of the prog ress of the CDP-E,

wh ile more frequent working grou p d iscussions will be held for each comp onent. The World Bank and MoNRE will

exchange letters to formalize the implemen tation and p artnership arr angem ents.

44. Timeline:The imp lementation p eriod of the CDP-E will be for thr ee years between Jun e 2004 and Jun e 2007.

45. The resource needs for the imp lementation of the CDP-E are estimated below. The fund s will be sourced from the

Government (contribution in kind to cover staff costs and office space), World Bank administered Trust Funds (e.g.

ASEM, ESMAP, GEF, MLF/ OTF etc), other pa rtners like JBIC, USAID and USTDA. In ad dition, the Bank w ill prov ide

annually US$ 100,000 from its ad ministrative budget to cover managemen t costs as well as acquire internal expertise

from other regions in the Bank. Thus far fund s needed for the imp lementation of first year activities have been mobilized.

It should be noted that funds (US$45 million) earmarked for phasing out ODS has already been approved by the

Executive Committee of MLF/ OTF.

16


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46. The CDP-E provides a timely opportunity for the Bank and other donors to help the year-old Ministry for Natural

Resources and Environm ent (MoNRE) in meeting the environmen tal targets set in the Ninth P lan and the MDG-7. The

CDP-E is expected to have the highest impact in two fields. First, it aims to strengthen the functioning of the new

institutional structure by providing assistance to refine or develop instruments such as EIA, economic instruments,

pu blic disclosur e and Environm ent Fund , and oth er compon ent specific institution bu ilding activities. Also, it will also

target some of the geograp hical hotspots that face significant environm ental problems.

47. Second, the CDP-E will promote a participatory app roach to managing environment an d n atural resources. This will

prov ide the Bank an op portu nity to demon strate its conven ing role. By reaching out to other don ors, and strength ening

partn erships, the CDP-E process will foster a new era of collaboration on environm ental issues in Thailand , wh ile at the

same time ensuring that there is coordinated ap proach to sup porting govern ment efforts.

48. Link to other CDPs: The other CDPs are: Governance and Public Sector Reform (GPS), Social Protection (SP), Poverty

Analysis and Monitoring (PAM), and Financial and Corpo rate competitiveness (FCC). The links betw een these CDPs

and CDP-E are illustrated below.

* indicates seed funding available** indicates fund ing already provided by MLF/ OTF and GEF


27/42

49. There are a few risks that may affect the successful imp lementation of the CDP-E, and they need to be identified sothat approp riate mitigation plans can be set in place. Some of these risks have emerged from the lessons learned from the

implementation of the other CDPs. First, there is a potential risk of declining comm itment on part of MoNRE. Associated

with th is is the possible coordination challenges amon g agencies un der MoNRE, and between MoN RE and other

ministries. As the decentralization and deconcentration processes continue, internal politics within and among

ministries may imp act the CDP-E process. Second, there may be delays in implementation du e to coordination issues

mentioned above, as well as delays in the recruitment of consultants and review of documents. Third, there is risk that th e

Bank m ay be unable to mobilize adequ ate resources (governmen t bud get, trust fun ds and other don or funds) to finance

CDP-E activities

50. On thefirstrisk can be mitigated by ensuring a continuou s dialog with th e new Ministry, through the Steering

Comm ittee. Through regu lar consu ltations with agencies un der MoN RE, as well as meetings w ith representative from

the line agencies, the Bank has a key role in facilitating better coordination an d collaboration. The secondrisk of delays in

implementation can be ad dressed by strengthening the working relationship betw een the Bank team and the Steering

Comm ittee to monitor progress in the CDP-E. The Bank team can help m itigate some of the delays by assisting in the

prep aration of guidelines and TORs for consultants, and establishing a prior review process for docum ents. On the third

risk, the Bank has already m obilized $1.3 million for the first year of the CDP-E, and received early sup port from various

international par tners. Furth er support w ill be solicited in subsequen t consultation meeting.

18


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29/42

CDP-EStrategy:Thespecific

objectiveistoimproveenvironmen

talquality(thebrownagenda)bysupportingtheimplementationofthereform

agendawiththecorrespond

ingcapacitybuilding,technicala

ssistance,analyticaladvisoryand

investmentneedsthroughacoordinated

approach.Theexpansionof

theCDP-Etoincludenaturalresourcesconservation(thegreenagenda)willbeconsideredlater,on

cemore

diagnosticworkiscompleted.

Long-termconsequenceoftheoutcomes,

thedevelopm

entchangesinsocietyofthe

economyofenvironmenttowhichactivitycontributes

National(2015):AchievingMDGGoal7inallregionsofthecountr

y(seeannex2forbaseline

information)

Directand

short-to-mediumtermeffectsofoutputsonthebeneficiariesofthe

activitiessu

pportedbytheCDP

DesiredOutcome:NationalGoal(2006):Preservingandrehabilitatingnaturalresourcesfor

sustainableuseandmaintainingenvironmentalqualitytoachievetheenvironmentaltargets

setoutinthe9thPlan

IntermediateOutcomes:

Reducingdieselemissionsfrom

publicandprivatebusesan

dtruckstoimproveair

qualityinBangkokanditsvicinity

Developingparticipatory

andintegratedwatershedmanagementframeworkforPriority

RiverBasins(especially,P

ingRiverBasininNorthernThailand

)tocontrolpollution

Reducingenvironmental

hazardthroughreduction,recycle,reuse,andsafedisposalof

solidandhazardouswasteinselectedmunicipalities

PhasingoutozonedepletingsubstancesandreducingCO2emission

Strengtheningselectedpa

rticipatory,compliance,andfinancing

instrumentstoimprove

theperformanceofenvironmentalgovernance,ingeneral,andwastemanagement

facilities,inparticular.

LackofRTGc

ommit-

ment

Lackofcoord

ination

amongagenciesand

otherstakeholders

Lackofcomm

itment

fromnewM

inistry

(MoNRE);Co

ordina

tion

among

units

withinMoNRE

Problemsinco

ordina-

tionwithothe

rminis

tries

Inadequateresources

andcommitm

entto

implement

Delaysinimplement-

ation

Contribution

ofall

sector

softhesociety

Stron

ggovernment-

ledp

rogram

Dono

rssupportincre-

mentalcapacityneeds

Partn

ershipbetween

theg

overnmentand

CSO

Reac

h/Partners

Risks

Reac

h/Partners

Risks

Impact

Outcome

20


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31/42


32/42


33/42


34/42


35/42


36/42


37/42

TotalFund-

ing

(US$million)

2.5

2.1

4.0

(proposed)

1.0

(proposed)

15.53

1.5

(proposed)

26.63

Sources

Government-Mo

NRE

Others-US-AEP,privatesec-

tor,WB(CAI-AsiaESMAP)

Government-Mo

NRE

OthersWB(ASEM)

Government-DL

D,PCD

OthersWB(G

EF,PPIAF,

BNWWP)

Government-PC

D,EF,Local

Administration

Others

priva

te,USAID,

USAEP,JBICand

WB

Government-DIW,DEDE

Othersprivatesector,

WB(GEF,OTF)

Government-

MoNRE,

NESDB,MOF,BOB,DOH,

ONEP,PCD

OthersJBIC,USAEP,WB

Activity

1.1DieselPollutionReduction

StrategyforBangkok

2.1Participatory

Watershed

ManagementforPingRiver

Basin

2.2WastewaterManagement

3.2WasteManagement

ODSPhaseOutandChemical

Management

4.1EnvironmentalInstitution

Development

TotalAllComponents

Component2:ImproveWaterQualityinPriorityRiverBasins

Component1:ImprovingAirQ

ualityinBangkok

Component3:ImprovingWast

eManagement

Component4:GlobalEnvironm

entCommitments

Component5:StrengtheningIn

stitutionsandInstruments

Government&

Partners

0.13

0.56

0.70

1.39

Government&

Partners 0

.075

0.16

0.40

0.635

Government&

Partners 0.1

70

0.7

0.9

1

1.7

8

WB

0.75

0.3

4.73

5.78

WB

0.96

0.34

6.08

7.38

WB

0.43

0.082

2.7

3.212

Year2

Year1

Year3

EstimatedAmount(million,USD)

(ThisexcludesBanksadministrativebudgetofUS$0.4millionoverthreeyears)

28


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Background::TheNationalAgendaoftheRoyalThaiGovernment

(RTG)recognizesnaturalresourcesandenvironmentalmanagementa

sone

ofthefourpriorities.TherecentlyestablishedMinistryofNaturalR

esourcesandEnvironment(MoNRE)hasbegunthetaskofintegrating

both

naturalresourcesandenvironm

entalfunctions.Thepurposeofthis

frameworkistoidentifytheprioritiesforCDP-E.

KeyEnvironmentalIss

ues

1.Improvingcoordinationamo

ngtheline

agenciesinMoNREandmode

rnizingtheir

managementsystems

2.Decentralizationofenvironmen

talfunctions

andstrengtheningthecapac

ityoflocal

governmentunits

3.StrengtheningtheRegionalOffices

4.Streamliningandrevisingenviro

nmentallaws

andregulations

5.Promotingintegratedandp

articipatory

managementofnaturalres

ourcesand

environment

6.Promoting

community

man

agementof

naturalresourcesandenvironm

ent

7.Buildingpublicawarenessandenhancing

environmentaleducation

8.Reformingexistingfinancingmechanismand

instrumentsforenvironmentali

mprovement

9.Providingincentivesforcom

plianceand

strengtheningmonitoring

10.Preparingandimplementingr

ehabilitation

plansto

restoredegraded

eco-systems

(protectedareas,mangrovesandmarineparks)

Country

Ownershipand

Implementa-

tion

Experience19

PriorityIssu

esIdentifiedby

SelectivityCriteria15

International

Partners

Comparative

Advantage20

Relevanceto

Nation

al

Policy

18

CivilSociety

andP

rivate

Sector17

MoNRE16

Thailand

Environment

MonitorSeries

Agendafor

CDP-E21

30


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KeyEnvironmentalIssues

11.Improvingtheenvironmentalqualityof

majortouristdestinations

12.Promotingintegratedwatershed

management

ofmajorrivers

13.Improvinginstitutionalrespo

nsivenessto

floods

14.Controllingsalinizationandcon

taminationof

groundwaterresources

15.Rehabilitatingwastewatertreatmentsystems

inmunicipalities

16.Promotingtheintegratedmanagementofsolid

andhazardouswastesinurbanareasand

industrialcentersandphasin

goutOzone

DepletingSubstancesandothertoxic.

17.ImprovingairqualityinBangk

okandother

urbanareas

18.Reducingcarbonemissiona

ndadapting

climatechangemeasures

19.Promotingcleanerproduction

andenergy

efficiency

20.ModernizingEnvironmentImpa

ctAssessment

process

Country

Ownershipand

Implementa-

tion

Experience19

PriorityIssuesIdentifiedby

SelectivityCriteria15

International

Partners

Comparative

Advantage20

Relevan

ceto

National

Policy18

Civil

Society

andPrivate

Sec

tor17

MoNRE16

Thailand

Environment

MonitorSeries

Agendafor

CDP-E21

15

Degreeofrelevancyofeachcriter

iaisrepresentedbythenumberof

,m

ore

meansmorerelevance.

16

DialoguewiththePermanentSecretary,DeputyPermanentSecretaries,andDirectorGeneralsofMoNRE

17

A.Poungsomlee,et.al.(2003),Civ

ilSocietyPartnership:ThailandCountry

DevelopmentPartnershipfortheEnviron

ment(CDP-E),FacultyofEnvironmenta

ndResources

Studies,MahidolUniversityand

consultationworkshopwiththeFederationofThaiIndustry

18

ConsistencywiththeConstitutionof1997,NationalEnvironmentalQua

lityAct,NationalAgenda,9thNational

EconomicandSocialDevelopmentPlan

and20-year

EnvironmentandConservationP

lan

19

CommitmentofRTG,pastexperienceinimplementingreformsandproje

cts,leadershipdemonstratedbyMoNRE,participationandinvolvementofother

stakeholders

20

Identifiedasapriorityincountr

ystrategydocuments,availabilitytoassignspecialistsonatimelybasis,abilitytomobilizefundingforTAactivitiesand

countryand

sectorknowledge

21

=unlikely

=likely

=

highlylikely


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