Bangkok, Thailand, October 4, 2023—To help strengthen Thailand's public infrastructure while improving access to quality water and expanding the country's wastewater treatment capacity, the International Finance Corporation (IFC) and Thailand's Ministry of Interior have signed a memorandum of understanding (MoU) today. In line with Thailand's climate goals, the agreement aims to pave the way for joint initiatives, optimizing subnational financing opportunities and developing public-private partnership (PPP) projects with a focus on sustainability.
Some of the potential initiatives comprise subnational financing for projects related to public transport, wastewater treatment, water supply and distribution, and electric vehicles (EVs). Once finalized, IFC will help the selected municipalities assess the viability of the projects and conduct feasibility studies in alignment with international best practices.
"We are delighted to form a partnership with the International Finance Corporation, a leader in sustainability in developing public-private partnership projects in the region, to help Thailand move towards becoming a high-income country by 2037 according to the goals of the National Strategy," said Mr. Suttipong Juljarern, Permanent Secretary, Ministry of Interior.
Currently, Thailand has a pipeline of around 100 PPP projects under its project delivery plan, with an estimated investment of over $30 billion. As part of the agreement, IFC will work with the Metropolitan Water Authority (MWA), Wastewater Management Authority (WMA) and Provincial Waterworks Authority (PWA) under the Ministry of Interior to conduct studies and develop a pipeline of PPP projects to expand the capacity and scope of water supply and water distribution and wastewater treatment in the municipalities covered by MWA, WMA, and PWA.
According to World Bank estimates, to achieve some of its sustainable development goals (SDG)—drinking water, sanitation, and hygiene by 2030—Thailand needs $6.9 billion in investments. Moving forward, the private sector will need to play a key role in spurring these investments through PPPs. Currently, the majority of wastewater is untreated in Thailand which has contributed to one third of Thailand's surface water being of poor quality, with a large backlog of investments in wastewater treatment plants needed across the country.
"Cities need resilient infrastructure which can withstand extreme weather events and improved wastewater treatment facilities to promote public health," said Kim See-Lim, Regional Director for East Asia and the Pacific at IFC. "This new partnership is a testament to IFC's commitment to working with Thailand's Ministry of Interior and the private sector to build inclusive, safe, and sustainable cities, creating more opportunities for people."
In the last decade, IFC has invested over $64 billion in emerging markets across infrastructure sectors. For FY23, IFC's committed infrastructure portfolio reached $13.7 billion. In Thailand, IFC committed $613.4 million in FY23 with $29.2 million for infrastructure projects.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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