Document of

The World Bank

FOR OFFICIAL USE ONLY

A-A.' zeqr-7m

Report No. 6877-TH

STAFF APPRAISAL REPORT

THAILAND

HIGHWAY SECTOR PROJECT

November 10, 1987

Infrastructure DivisionCountry Department IIAsia Regional Office

This document has a restricted distribution and may be used by recipients ooly in the perfonnance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit - Thailand Baht (B)(as of Jar.uary 1987)

B 1 - US$0.0385B 1 million = US$38,461US$1 - B 26

FISCAL YEAR

October 1 - September 30

WEIGHTS AND MEASURES

1 meter (m) = 3.2 feet (ft)1 kilometer (km) - 0.62 miles (mi)1 square kilometer (sq km) = 0.39 miles (sq mi)1 liter (1) = 0.28 US gallons (gal)

- 0.22 British gallons (imp gal)1 metric ton (m ton) = 1.10 US short tons (sh ton)

= 0.98 British long-tons (lg ton)- 1 million grams

ABBREVIATIONS AND ACRONYMS

aadt - annual average daily vehicle trafficADB - Asian Development BankARD - Office of Accelerated Rural DevelopmentBCEOM - Bureau Central d'Etudes pour les Equipments d'Outre MerDOH - Department of HighwaysETO - Express Transport OrganizationJICA - Japan International Cooperation AgencyLTD - Land Transport DepartmentLPG - Liquified petroleum gasMOC - Ministry of CommunicationsMOI - Ministry of InteriorOECF - Overseas Economic Cooperation Fund (Japan)NESDB - Nationa' Economic and Social Development BoardPAT - Port Authority of ThailandPWD - Public Works DepartmentRID - Royal Irrigation DepartmentSOE - Statement of ExpendituresSRT - State Railways of ThailandTCA - Thai Contractors AssociationTPU - Transport Planning UnitTPMS - Thailand Pavement Management SystemV-km - vehicle-km

FOR OFMICIAL USE ONLY

THAILAND

HIGHWAY SECTOR PROJECT

Table of Contents

Page No.

I. THE TRANSPORT SECTOR. . . . . . . . . . . . . . .... 1A. General ........ ............................... 1B. The Transport System ............................ ...... .. 1C. Transport Sector Investment, Coordination and Planning.. 3D, Bank Involvement in the Transport Sector c t or............ 4

II. THE HIGHWAY SUBSECTOR .............. * *..6....... , ... .. 6A. The Highway Network ................................. *...... 6B. Road Transport.. 7C. Highway Administration..... ....... e...... ........ . ... 9D. Highway Planning and Financing........ s............... ;1E, Highway Engineering and Construction.........,......... 12F. Highway Maintenance and Rehabilitation,.........6..,... 13C. Staff and Training .................... ........... 15

III. DOH's 1987-1991 PROGRAM........ ............................... 16A* eea ............................... 16B. Program Components and Description........................ 16C. Financing ............... . ...... 4.*. . . . 19D. Institutional Improvements ....... o............. ,o....... 20E. Assessment and Impact on Sector Policieslicie...s...... 20

IV. BANK PARTICIPATION................. 22

B. Subprojects Eligible for Bank Financing...........o..... 24C. Conditions and Procedures for Procurement of Bank

Financed Subprojects.b *p roj e c tss 04444444.......... 25D. Monitoring and Auditing .. ....................... . 27E. Dissrburmseement s. . .... 28F. Economic Justfctio ificatiooooooo**o n,*066 28G. Assessment of Risk ..................... *.,. 29

V. AGREEMENTS AND RECOMMENDATIONS ............................... 30

This report is based on the findings of an appraisal mission, consisting ofE. Pinilla (Highway Engineer), L. Nordin (Economist), C. Carlsson (Road SafetySpecialist), and Somchob Chaiyavej (Training specialist) which visitedTnailand in March, 1987.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

TABLES

1.1 Passenger and Freight Transport by Mode, 1981****...... 311.2 Government Five-Year Plan Investments in Transport..... 32

2.1 National and Provincial Highway Networks (1965-1985) ... 332.2 Department of Highways' Roads by Regions in 1985 ....... 342.3 Motor Vehicle Registration 1970-1984....*.*.*.......o.. 352.4 Vehicles-kilometer for the year 1981-1985,....XX...*.*. 362.5 Department of Highways Expenditures and Sourcesooes,

of Finance 1972-1986...... ***0*,** * .... ***0 . . . 372.6 Estimates of Tax Receipts from Road Sectoro t.or.......o 382.7 Design Standards for National and Provincial Roads... 392.8 Department of Highways Budget, 1984-l986o..0.......86.. 402.9 Estimated Highway Maintenance Budget Requirements.... 41

3.1 DOH's Total Expenditure Program, 1987-1991.o00........ 423.2 DOH's Development Plan 1987-1991.o.o..0............91.. 43

4.1 Construction/Improvement of Provincial Roads FirstYear Construction Program.....ooo.o.o...o......o.. 44

4.2 First Year Rehabilitation Program...o g r am.............. 454.3 Tentative Allocation of the Proposed Loa n 464.4 Road Safety Program - Summary of DOH's First Year

P r o g r amoooo**o.******oooooto*ooooo.o*ooeooosooooooo* 474.5 Tentative Program for Swedish Assistance to NSC........ 484.6 Summary of Proposed Training Program for

WH Staff, 1988-1990o.0.*.......*0 .4 ......... .04449440 494.7 Tentative Cost of DOHs Training Program, 1988-1990..... 504.8 Summary of Consultant Services to be financed

-under the Lon............................514.9 Tentative Procurement Arrangements...................... 524.10 Estimated Schedule of Disburseunents ements.o....e... 53

ANNEXES

1 Action Proramsr a m s 542 Example of Summary Data Sheet for Candidate Subprojects 593 Selected Documents and Data Available in the Project File 60

CHART

31177 Organization of Department of Highways............... 61

MAP

IBRD 20218 National Highways and Provincial Roads System

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THAILAND

HIGHWAY SECTOR PROJECT

Loan and Project Summary

Borrower: The Kingdom of Thailand

Beneficiary: Department of Highways (DOH)

Amount: US$50 million equivalent

Terms: 17 years including four years of grace, at standardvariable interest rate

ProjectDescription: The basic objective of the proposed project is to assist

the Borrower in sustaining an efficient road transportsystem. The project will support ongoing efforts to(a) improve road maintenance efficiency; (b) continue thehighway rehabilitation and strengthening program;(c) upgrade planning and programming of pavementstrengthening and resealing; (d) undertake selected roadimprovements; and (e) reduce road traffic hazards.

The loan would finance components of DOH's 1987-91 roaddevelopment plan and periodic maintenance program.Specific subprojects to be financed under the loan would beselected on the basis of agreed-upon criteria and proce-dures. Major components of DOH's program, for which mostof the loan proceeds would be used are rehabilitation,period".c maintenance and paving programs. Other componentsinclude road safety, training, testing and office equipmentand consultant services. The project does not presentserious technical or organizational risks.

Estimated Cost: /aLocal Foreign Total…-- (US$ million) ------

DOH's Development Plan (1987-91)Rehabilitation and reconstruction 214.3 214.3 428.6Improvement of congested roads 111.3 111.3 222.6Safety Program 7.7 16.1 23.8Interchanges and bridges 17.2 13.9 31.1New road construction 26.0 21.0 47.0Upgrading to bitumen standards 122.8 122.7 245.5

Total Cost 499.3 499.3 998.6

/a Inclusive of taxes and duties amounting to about $42.9 million.

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Financing PlanLocal Foreign Total----- (US$ million) -

Government 499.3 260.9 760.2

World BankHighway Sector Loan - 50.0 50.0Ongoing and proposed loans /b - 89.1 89.1

Other proposed foreign loansOngoing and proposed loans - 99.3 99.3

Total 499.3 499.3 998.6

Estimated Disbursements:

Bank FY 1988 1989 1990 1991…------ (Us$ million) -------

Annual 3.1 14.1 22.8 10.0Cumulative 3.1 17.2 40.0 50.0

EconomicRate of Return: Over 12%

!Mp: IBRD 20218

/b The Government is planning to seek a US$50 million Bank Loan in FY90 tocontinue Bank support for this program.

2HAILAND

HICHWAY SECTOR PROJECT

I. THE TRANSPORT SECTOR

A. General

1.1 Since the mid-1960s the Thai economy has grown rapidly as a resultof the development of the agricultural sector. This growth generated a highdemand for transport. To accommodate the growing demand, the Government hasundertaken large transport investments (in particular for road infrastructure)and has created a policy environment in which a competitive transport industryhas developed. Today, all changwats (provinces) are interlinked with a goodinterregional and interprovincial communications network, and transportservices have penetrated the majority of previously remote rural areas.

1.2 The country's transport system is multimodal, cotsisting, in orderof importance, of road, rail, inland waterways, maritime, air and pipelinetransportation. The sector agencies, except for pipeLines, are under theMinistry of Communications (MOC). Road transport has become predominant,supported by large infrastructure investments. Railway and water transporthave also developed, but at a more modest rate. Roads carry about 80% of allfreight ton-km, followed by rail with 10%, coastal shipping 6% and inlandwaterways 4% (Table 1.1). For passenger transport, the role of road transportis even more pronounced--about 90% of all passenger-km are carried by road, ascompared with 10% by rail.

B. The Transport System

Highways

1.3 The highway subsector and its administration are discussed in detailin Chapter II.

ailways

1.4 The rail network consists of about 3;800 route-km of meter gaugelines: 90 km are double-track and the remainder single-track (Map IBRD20218). Three main lines (3,046 km) radiate from Bangkok: the Northern Lineto Chiang Mai; the Northeastern Line to Nong Khai on the Laotian border and toUbon Ratchatani; and the Southern Line to the Malaysian border at Padang Besarand at Sungai Kolok. In addition, there are nine branch lines (total length749 km). A direct connection has been completed between the Eastern Line andthe country's second biggest deep-sea port at Sattahip, and plans to provideshorter connections between Sattahip and the Northeastern Line are underconsideration.

1.5 The railway system is administered by the State Railway of Thailand(SRT), which has recently embarked on a program to reduce its increasing

budget deficits and to "break even". This can only be achieved through acombination of marketing efforts, cost containment and efficiency measures,accompanied by improvements in service and tariff increases. These are beingaddressed under the Bank-financed Railway Efficiency Improvement Project.

Inland Waterways

1.6 Thailand has a well-developed inland waterway system covering well overone-third of the country and extending over 1,600 km of navigable waterways.Most of this length is in the northern corridor between Bangkok and Uttaraditalong the Chao Phrya and Nan rivers. The remainder is along the Mekong Riveron the Thai-Laotian border. However, unrestricted year-round transport ispossible on only about 100 km of the Chao Phrya. Navigation in the othersections is seasonally limited, forcing barges to detour on slow and costlyroutes, reduce payloads or cease operations during the low water season.

1.7 To utilize the system's potential for low cost transport, the shallowriver sections are being deepened, with Bank assistance, under the InlandWaterways and Coastal Ports Project (Loan 1889-TH). The project also includesconstruction of two new river ports and promotion of a new barge dezign andoperation. Fleet development is expected to be undertaken by the tradition-ally vigorous and competitive private sector, which handles most of thebarges, terminals and loading points. The administration and maintenance ofthe rivers is the responsibility of the Harbour Department in MOC.

Ports

1.8 Thailand has some 30 shallow-draft "coastal" ports which vary greatlyin size. Frequent maintenance dredging, and in some cases capital dredging,is required. The Harbour Department's capacity to perform these functions isbeing improved under the Inland Waterways and Coastal Ports Project.

1.9 There are two commercial deep-water ports for dry cargo: the Port ofBangkok on the Chao Phrya and the former naval facility at Sattahip on theEastern Seaboard. The Port of Bangkok consists of the Klong Toei wharves,which are operated by the Port Authority of Thailand (PAT), and otherprivately owned and managed facilities. Sattaiip is also operated by PAT.The Bank assisted Bangkok and Sattahip Ports Project (Loan 1918-TH), toimprove port facilities at Bangkok and Sattahip and to create an inlandcontainer freight terminal at Bang Sue, experienced delays. The Governmentdecided to cancel the Sattahip port and Bang Sue terminal components from theproject in favor of private development. Two deep-water ports at Songkhla andPhuket in the southern region are being developed with financing from theAsian Development Bank (ADB). In addition, the Government, plans to constructdeepwater ports at Laem Chabang and Mab Ta Pud to further the industrialdevelopment of the Eastern Seaboard.

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Urban Transport

1.10 Although Thailand has a relatively low level of urbanization (171), itsurban population is increasing at about 5.5% annually, which is approximatelytwice the national population growth rate. Bangkok dominates the urban scenewith more than half of the nation's urban population. Over half of thecountry's vehicle-km 's produced within a 150 km radius of Bangkok.

1.11 Bangkok's traffic conditions are among the worst in Asia. Severecongestion is the principal symptom, with long jotrney times, high fuelconsumption and heavy pollution. Rapid growth of the human and vehiclepopulations, divided responsibility among separate agencies with nocoordinating authority, and inadequate investments, have contributed to thegrowing seriousness of the situation over the past 10-15 years. The Bank-financed Bangkok Traffic Management Project (Loan 1638-TH) has assisted inaddressing the traffic management aspects.

C. Transport Sector Investment, Coordination and Planning

Investments

1.12 The country's various transport modes have developed smoothly over thepast quarter century with appropriate balance among the modes to servedifferent transport demands. During the Third Five-Year Development Plan(1972-76), public sector irvestments in transport were about B 20 billion, or20% of total investments, in current prices. Under the fourth plan (1977-81)the transport investments were about B 30 billion but their share of totalinvestments dropped to 12%, partly because the interregional road system wassubstantially completed. The investment allocations increased sharply in thefifth plan (1982-86) to about B 72 billion, but their percentage of totaldevelopment expenditure remained at about 13% in current prices (Table 1.2).During the total 15-year period (1972-1986) the level of road investmentsdecreased in real terms and their share of the sector investment expendituresalso decreased from about 82X in the third plan to about 35% in the fifthplan. In the road subsector the initial imperative was to provide main roadlinks among the principal regional centers and between them and Bangkok.Thus, before 1972, road development focused on the arterial national system,while later, in the third and fourth plans, policies were aimed at developmentof the rural areas through the construction and improvement of the provincialand rural roads. The fifth plan continued the improvement of the provincialroads while starting to promote better efficiency in the operation of thetransport system and placing emphasis on maintenance and rehabilitation.

1.13 The Sixth Development Plan (1987-91) includes about B 79 billion fortransport sector investments (about 12% of total development expenditures).The pian devotes about 42% of the sector investments to roads. Governmentgoals outlined for the transport sector focus on increased utilization ofassets, improved efficiency, increased self-reliance of state enterprises andprivatization. Specific highway subsectoral goals include a proper balancebetween investment and maintenance expenditures including rehabilitation ofhighways, reduction of traffic congestion and provision of a higher level ofroad safety (para. 3.16). Thus the proposed Highway Sector Project with itsemphasis on national road rehabilitation and maintenance is most timely.

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Planning and Coordination

L.14 MOC is reponsible for transport sector matters. It controls the sectorthrough several Government departments including the Department of Highways(DOH), the Harbour Department, the Land Transport Department (LTD) and twoautonomous agencies (SRT and PAT). Administration of rural roads, however, isunder the Ministry of Interior (MOI). MOC is responsible for transportpolicy, sectoral planning and coordination and overall investment budgeting.The National Economic and Social Development Board (NESDB), in its capacity asthe central planning agency, participates in sector policy formulation andcoordination. Responsibilitv for resource allocation is shared between NESDB,the Ministry of Finance and the Bureau of Budget.

1.15 On the recommendation of the Bank, a Transport Planning Unit (TPU) wasset up in 1974 within MOC to provide MOC with technical expertise for trans-port planning, coordination and policy formulation. Parallel efforts havebeen made, with or without Bank assistance, to bolster subsectoral planningcapabilities at the departments and autonomous agencies. As a result, consid-erable progress has been made in institutional development in these areas.

D. Bank InvoLvement in the Transport Sector

1.16 The Bank has been involved in all transport modes, except civilaviation, and has helped finance 20 transportation projects. The total amountof loans (including cancellations) is US$614.6 million. The largest recipientof loan funds has been the Department of Highways with US$396.6 millionfollowed by the State Railway of Thailand, with US$81.7 million, the PortAuthority of Thailand, wizt US$67.3 million, the Harbour Department withUS$53.0 million, and the Ministry of Interior with US$16.0 million for Bangkoktraffic improvement. Of these 20 projects, 16 have been completed. Throughthese loans, the Bank has assisted in the development of a well-balancedtransport system that supports Thailand's economic growth.

1.17 Eight Bank loans have been made to DOH over the past quarter century.The loans helped finance construction and/or rehabilitation of about 3,100 kmof national and 2,800 km of provincial roads; technical assistance for thereorganization of DOS and training of its staff; a study of road maintenance;equipment for road maintenance and workshops; technical. assistance to TPU inHOC; and a series of feasibility and engineering studies to prepare roadprojects. Bank assistance has also been given to the Office of AcceleratedRural Development (ARD) for construction of about 1,300 km of village accessroads as part of the Northeast Thailand Rural Development Project (Loan1198-TH).

1.18 The first four DOH projects were executed efficiently and withsubstantial cost savings because of increased efficiency and competition inthe domestic construction industry combined with relative stability ofdomestic prices. The fifth project encountered some delays and cost overrunsbecause of the sharp oil price increases, which required rebidding of severalcontracts. The sixth project has also been completed. The project costs wereabout 6% less than the appraisal estimates. However, the original closingdate of the loan was extended by 12 months due partly to initial delays in

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bidding and contract award, followed by slow progress by some of the contrac-tors. The seventh project, for construction of 740 km of provincial roads, issubstantially completed, within the original cost estimates. The eighthproject is proceeding well. It reflects the increasing importance ofmaintenance operations by the inclusion of strengthening and rehabilitationworks on about 1,000 km of paved national and provincial roads (the firsteffort on such a scale) so as to prevent expensive road reconstruction andhigher road user costs. The project is expected to be completed on schedulewithin the original cost estimates.

1.19 Project Performance Audit Reports (PPAR) have been circulated on thefirst six highway projects. The main comments concerned overestimation ofconstrutcion cost contingencies and in some cases underestimation of trafficgrowth. It appears that the appraisals had not fully anticipated (a) the goodquality of works supervision including strict control of the cost of works;(b) the efficiency and intensive competition among the local contractors forci"il works contracts; and (c) the explosive growth of road transport. Thesepoints have been taken into account in the design of the proposed project.

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II. THE HIGHWAY SUBSECTOR

A. The Highway Network

2.1 In 1985 the public road network consisted of about 151,000 km--about15,700 km were national roads, 29,600 km were provincial roads (Table 2.1) andabout 105,700 km were rural roads. In addition, an unspecified length offootpaths and tracks exists. The national road system connects the principaltowns and regional centers throughout the country, The provincial roadsystem connects the provincial centers and other towns with the national roadsystem and interconnects the rural roads; it is a very extensive system andprovides the only direct access to a substantial proportion of the villagesand rural population. The rural (or tertiary) roads connect the remainingvillages and rural population with the provincial and national road systems.The Northeast Region has the greatest length of national and provincial roads,with a share of 28%, followed by the North with 27%, the Central Region with26% and the South with 19% (Table 2.2). For rural roads, the approximateregional distribution is Northeast 44X, North 22%, Central 21% and South 13%.

2.2 Since 1965, the national road system has grown little, from about14,000 km to 15,700 km; however the proportion paved has increased from 36% toabout 96%. Meanwhile, the provincial road system has grown from about 8,300km to 29,600 km, while the proportion paved has increased from about 5% to541. However, this rate of improvement has barely kept pace with theexpansion of the provincial road system, and the length of unimproved provin-cial roads has grown from about 5,500 km to 8,600 km.

2.3 The national road system is now generally well defined and almostentirely improved and paved (Map IBRD20218). Most roads are adequatelyaligned and wide enough for the present traffic, but increasing traffic on afew sections, principally on the main routes radiating from Bangkok, is makingroad width and other geometric standards inadequate. In addition road trafficaccidents have also increased (para. 2.16). A small number of additionallinks may be required to complete the network and to shorten some routes.

2.4 The provincial road system has been expanding rapidly, mostlythrough reclassification but also by new construction. Future expansion ofthe provincial road system is likely to be much slower; it is already veryextensive. Some roads are classified as provincial chiefly for their securityfunctions. There is a need to upgrade the nearly 8,600 km of "unimproved"provincial roads, virtually all of which serve as rural access roads. Theseroads have not been constructed to defined engineering standards and oftenlack permanent drainage structures and have little gravel surfacing; manysections are impassable during tainy weather.

2.5 An immediate problem is the increasing length of paved oldernational and provincial roads that require pavement rehabilitation andstrengthening (para. 2.37 and 3.6).

2.6 The rural road syste! is also very extensive, with an averagedensity of about 1 km per 5 km . The roads are of low standard, averaging

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about 4.5 m width, but traffic is generally less than 30 vpd. Most of themare unimproved or gravel roads. In the dry season about two thirds of theroads are usually in fair condition, and one-third bad. During the rainyseason many roads become impassable. Improving rural roads to engineeringstandards has been largely limited to some regional development projects,principally in the Northeast, but more recently in parts of the Northern andSouthern regions. Low grade works have been undertaken on a large proportionof the rural roads, chiefly through Government employment generation andvillage development programs. The most urgent need is for regularmaintenance. However, when traffic growth becomes important the roads arereclassified as provincial roads and the responsibility for their maintenanceand improvement is transferred to DOH.

B. Road Transport

Motor Vehicle Fleet

2.7 The country's motor vehicle fleet, including motorcyles, grew fromabout 740,000 units in 1970 to about 3,340,000 units in 1984 (Table 2.3).Excluding motorcyles, the increase was from about 400,000 units to over1,400,000 units, with an annual growth of 9.7%. Commercial vehicles--buses,trucks and other utility vehicles -- accounted for about 58% of four-wheelvehicles, with cars making up the remainder.

Traffic

2.8 Motorized traffic (excluding motorcyles) on all national and provin-cial roads was in the order of 26 billion vehicle-km in 1985 (Table 2.4).About 50% of this traffic was concentrated in the Central Region within aradius of 150 km from Bangkok, highlighting Bangkok's leading role as thecenter for Government, commerce, industry and transport. Over 90% of the non-urban traffic (excluding motorcycles) is concentrated on the national andprovincial roads. The remainder is distributed over the rural roads. Thenational and provincial roads show great variations in traffic density. About15% of the roads, mostly consisting of national highways, accounts for about55Z of the traffic, and about 35% of the road length accounts for about 70% ofthe traffic. Some 3,000 km of national and provincial roads, whose trucktraffic volume is close to or exceeds 1,000 medium and heavy trucks a day, areconsidered to be the major truck traffic corridors.

Transport Industry

2.9 The total number of trucks operating in the country is about600,000. Most trucking firms have only one truck managed and run by theowner-operator. However, there are a few firms with several hundred vehicleseach. The Government-owned Express Transport Orvanization (ETO), on thestrength of its transport monopolies (para. 2.12), has about l,000 trucks.Whenever it does not have adequate capacity, it hires privately owned trucks.

2.10 The country's bus fleet consists of about 200,000 vehicles(Table 2.3) of which about 150,000 are light buses (vehicles with more thanseven passengers) and about 50,000 are heavy buses. The information on the

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structure of the bus transport industry is incomplete. To fill this gap, theStudy of Intercity and Rural Bus Transport (Phase I) is being carried outunder the Second Provincial Roads Project (Loan 2311-TH). One company, thegovernment-owned Transport Company, has a franchise for exclusive bus servicesin the country except for Bangkok. The franchise has about 5,500 heavy buses,of which about 10% are owned by the Transport Company and 90% by privatecompanies. The Transport Cumpany charges the private firms a franchise fee inthe range of B 10,000 to B 250,000 per bus, which entitles them to operateduring a five-year period. Revenues from fee collection are used forinvestments in bus terminals and stations.

Regulation

2.11 Vehicle Specifications. The last significant amendments toGovernment regulations on vehicle weights and dimensions were made in 1976following a review by consultants as part of a Highway Maintenance Studyfinanced under the Fifth Highway Project (Loan 870-TH). The maximum legalaxle load is 9.1 metric tons. The maximum gross weight of a three-axlevehicle is 21.0 tons, of a semitrailer, 37.4 tons and of a truck and trailercombination, 43.4 tons. Under the First Provincial Roads Project, the Govern-ment undertook to review the regulations in light of completed studies onenergy policies and road user taxation and in view of the increasing problemof truck overloading (para. 2.13). The recently completed Trucking IndustryStudy financed under Loan 2035-TH is being reviewed by the Government and mayresult in further adjustments in permissible axle loads (Annex 1).

2.12 Trucking Regulation. Although the trucking industry is essentiallyfree of economic regulation, periodic and regular pressure is being appliedfor more regulation to prevent destructive competition within the industry orwith the railway and to reduce the high percentage of empty truck hauls, whichwaste fuel and other resources. Some of these initiatives are more or lessdisguised attempts at preventing competitors from entering the free transportmarket. However, regulatory inroads have been made by ETO, which has truckingmonopolies for: (a) transport of freight landed at Klong Toey; (b) a numberof Government specified commodities; and (c) transit traffic to and fromLaos. ETO is a frequently criticized state enterprise which has expanded overthe years, despite generally acknowledged poor performance in cost andservices. The size of ETO's work force (over 4,000 staff) has become itsIrotective shield. The only economically efficient method to dt.al with ETO isto require that its operations be commercially and financially viable. ETO,however, represents a small part of the trucking industry as the total tonnagetransported by ETO is about 2% of the total road freight transport demand.

2.13 Overloading of trucks is a fairly common occurrence, withimplications for road safety, maintenance and the enforcement of road trafficlaws. Truck overloading, however, is essentially limited to the major bulkcommodities, which are carried on ten-wheel trucks mainly on the major truckcorridors. There are ten peri-nanent truck weighing stations in the nationaland provincial highway system. The stations are operated by DOH with theparticipation of the Highway Police Division. In addition, DOH has some 35mobile teams with portable scales. Furthermore the Trucking Industry Study(para. 2.11) concluded that existing axle loads and gross vehicle weightlimits should be increased.

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2.14 Intercity Bus Transport Regulation. The Transport Company'sfranchise system (para. 2.10), appears to provide good quality, low-cost, low-fare transport. However, the system also limits the number of buses per routeand, hence, supply does not appear to adequately address passenger demand asevidenced by illegal services provided on certain routes. The study of theintercity bus transport industry being undertaken under the Second ProvincialRoads Project is reviewing the industry's regulatory aspects.

2.15 Road user charges for passenger cars, buses and light trucks covertheir marginal costs. Those for heavy trucks do not. For the latter, theratio of road user charges to marginal cost is estimated at only about 0.5-0.7. These vehicles are primarily responsible for use-related, road pavementsdamage. An upward adjustment of taxes on trucks is therefore desirable.These and other trucking issues have been anal-zed also under the TruckingIndustry Study (Loan 2035-TH), and the Government is considering appropriatecorrective measures.

Traffic Safety

2.16 Traffic accidents and fatalities constitute a growing and recognizedsocioeconomic problem in Thailand. However, accidents are neither accuratelynor completely recorded, nor have comprehensive, coordinated and effectivemeasures been taken to prevent them. Speeding is common (including heavybuses), and driver behavior is often not in conformity with existing regula-tions. Under ADB financing, the Department of Highways, commissioned aTraffic Law Enforcement and Road Safety Study in 1982, which was completed inOctober 1984. Another study "Traffic Safety Plan for Roads in the Kingdom ofThailand" was completed in January 1985 with the assistarce of JapanInternational Cooperation Agency (JICA). DOH is preparing a program, based onJICA's study recommendations, to improve highway sections with high accidentrates. Furthermore, the National Safety Council of Thailand (NSC) has been incontact with the Swedish Road and Traffic Research Institute (VTI) to initiatea joint effort to improve the accident data system and traffic safety researchin Thailand. The proposed project includes a component to improve road safety(para. 4.5).

C. Highway Administration

2.17 HOC is responsible, through DOH, for the administration, planning,constructiou, and maintenance of the national and provincial road systems.The 73 prov.nces and municipalities, under the Ministry of Interior (MOI), aregenerally responsible for the rural roads, assisted by a number of centralGovernment agencies, chiefly ARD and the Public Works Department (PWD), bothin MOI. Other Central Government departments and agencies build and maintainroads for special purposes. However, DOH's highway activities cover approxi-mately 80% of total investments in the sector, including most of the largeprojects in the country. Thus, DOH's program is a key instrument for thepurpose of the proposed sector loan.

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Department of Highway!

2.18 DOH is well-organized and well-operated and functions as a moderragency with considerable autonomy. DOH has an adequate organization toperform its functions (Chart 31177). The present organization was set up in1973, with some modifications introduced later, to give greater emphasis toroad maintenance. The Department has 15 divisions at the headquarters, 12field divisions and 76 highway districts situated in the provinces. Inaddition, the Highway Patrol Police, under the operational control of thePolice Department, is under the Department of Highways fer administrative andbudgetary purposes. Technical assistance for the department is needed onlyfor the introduction of special management and operational techniques.

2.19 Under the Provincial Roads Project, DOH developed the first stagesof a pavement management system to ensure that a systematic assessment of thenetwork's condition is carried out and that more realistic maintenance andrehabilitation budgets are prepared (para. 2.36). A limited amount ofadditional technical assistance may be needed to help improve the system inthe light of experience with its operation and to help further develop theprogramming and implementation of road maintenance. Also under the SixthHighway Project, technical assistance was provided to DOH for the creation ofan internal hiring system for road maintenance equipment. This system isbeing implemented with the help of technical assistance financed under theSecond Provincial Roads Project (para. 2.35).

2.20 MOC, through its DOH, is responsible for the classification of allroads and road systems, for the iutitiation of legislation concerning the con-struction, maintenance and protection of all roads and for the preparation ofprograms and budgets for the development and maintenance of national andprovincial roads. HOC is also responsible for initiating and administeringlegislation on the use of roads, including the licensing of commercialvehicles.

Accounting and Auditing

2.21 DOH's accounting and financial record-keeping activities are theresponsibility of the Finance Division, which reports to the Deputy DirectorGeneral for Administration. This division is adequately staffed by experi-enced and competent accountants. The Finance Division provides the financialinput for the budget and is responsible for monitoring and controlling theactual expenditures against the budgetary allocations.

2.22 Expenditures are controlled at several levels. Initially, eitherDOH's resident engineer responsible for supervision or the designatedconsultant must approve the contractor's invoice for physical and technicalcompletion and for compliance with contractual obligations. Thereafter, theinvoice must be approved by the Chief Engineer for Construction, the FinanceDivision, and finally by the Director General. This disbursement system workswell and provides an excellent control mechanism.

2.23 DOH is subject to an internal as well as an external audit. Theinternal audit staff consists of about 24 accountants and financial analysts

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responsible for both the financial and performance audits. The internal staffreports directly to the Director General. The external audit is performed bythe Office of the Auditor General which maintains a permanent staff of five inthe offices of DOH.

D. Highway Planning and Financing

Highway Planning

2.24 The Government's five-year development plans constitute the basicframework for the definition of highway sector objectives. The PlanningDivision, within DOH, is responsible for planning DOH's development programsand drafting its annual budget proposals for the national and provincialroads.

2.25 The Planning Division invites proposals for improvements from DOH'sfield divisions, provincial authorities and other ministries and departments.It then undertakes a field reconnaissance of each road and collects data for apreliminary assessment of the works required, their cost and project econo-mics. The division then ranks the proposals in approximate order of priorityand prepares a draft development plan. For the smaller projects, particularlythose financed wholly from the Government budget, little further preparationis undertaken, other than detailed engineering. However, for majorconstruction projects, detailed feasibility studies are carried out, usuallyby consultants because of the limited resources available within DOH. For themain work programs, including those financed by foreign agencies, DOH usuallyemploys joint ventures of foreign and local consulting firms.

2.26 Draft development plans prepared by DOH for the national andprovincial roads (and by MOI for rural roads) are reviewed by the inter-ministerial Land Transport Coordination Committee, under the aegis of MOC, toensure adequate coordination and balance. The draft plans are then submittedto NESDB, where they are further reviewed, particularly regarding the size ofthe programs as a whole and their relationship to national priorities.Finally, the plans require Cabinet approval. The road projects are includedin the development plans based on economic criteria. After approval, theplans are periodically reviewed and revised to reflect changed priorities andavailability of funds.

Highway Financing and Road User Charges

2.27 The highway subsector is financed from (a) general budgetaryrevenues and (b) foreign loans and grants. Road user taxes are not earmarked,except for the relatively small proceeds from vehicle registration fees, whichare distributed among the Police Department and area administrations. Also,DOH is planning to build and maintain three highways (about 420 km) throughconcession to the private sector. In recent years, external funding ofinvestments for national and provincial roads has amounted to around 9% oftotal expenditures and about 15% of road construction and improvement (Table2.5). The Asian Development Bank, Japan's Overseas Economic Cooperation Fund(OECF) and the World Bank have been the principal sources of externalfinancing and are expected to remain so under the sixth plan.

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2.28 Table 2.6 shows the tax receipts from the road sector. A 1982report by TPU/BCEOM, "Taxation of Road Users", noted that in 1975-80,aggregate receipts from road user charges on national and provincial roadswere close to 70l of all expenditures. One flaw in the taxation picture isthe under-coverage of infrastructure coscs caused by heavy trucks(para. 2.15).

E. Highway Engineering and Construction

2.29 Engineering of the national and provincial roads is the responsibi-lity of the Location and Design Division of DOH. The division undertakes asubstantial portion of such work itself; for the remaining engineering,particularly for special projects financed under external aid, it employsconsultants. Almost all the firms engaged in detailed engineering are Thai,since the domestic consultants have expanded in numbers and capability inrecent years. Foreign consultants, employed only to a limited extent andchiefly on specialized studies, usually operate in joint venture with Thaiconsultants and employ only a few key foreign staff.

2.30 DOHf has a range of design standards for national and provincialroads which are appropriate to the road class, terrain and traffic volumes(Table 2.7). It has also established design standards for rural roads,chiefly for use by the ARD and PWD which are responsible for designs underrural roads projects. These departments undertake most of the design workthemselves, employing consultants, chiefly Thai, as necessary.

2.31 The DOH, through its National Highways and Provincial RoadsConstruction Divisions, is responsible for construction of national andprovincial roads. Provincial road construction by DOH includes the improve-ment of existing provincial roads and of some rural roads F i be incorporatedinto the provincial road system. About 90% of DOH construc-;on is bycontract. The rest is by force account, usually for trainin- purposes in theeight centers set up with bilateral aid. Road construction by ARD and PWD isnow also predominantly by contract. Some small projects, undertaken by theprovinces, districts and groups of villages, are largely constructed by forceaccount with a high proportion of hand labor.

2.32 The Thai contracting industry has evolved during the past 20 yearsor so from infancy to maturity. The Thai Contractors' Association (TCA),established in 1946, had 574 members in 1985. Its members are contractors andconstruction materials distributors. In 1964 DOH established a policy toincrease the volume of highway construction by contract and to reduce forceaccount works done by DOH itself. Many domestic firms are now fully capableof undertaking typical highway projects. In the early Bank-financed roadprojects only about a quarter of the work was won by domestic contractors and,on some contracts, the work was only completed with difficulty, delay and in afew cases bankruptcies. But gradually the domestic firms' share hasincreased, and, under the three most recent Bank financed Projects, Thai firmswon most of the contracts in competition with foreign firms. They have per-formed the work satisfactorily. The evolution of the domestic industry can beattributed to the initiative of local entrepreneurs, fostered by the

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Government's policy of using competitive bidding to award contracts for anoverwhelming proportion of its large and continuous stream of road works.International competitive bidding (ICB) by prequalified firms is normallyreserved for contracts financed by external sources and for specialized con-struction work. Construction supervision is usually carried out by DOH,which, over the years, has developed an efficient system to coordinate projectexecution. When consulting firms are used to supervise construction, they arelimited to overall management and assistance with special problems.

F. Highway Maintenance and Rehabilitation

2.33 Maintenance of the national and provincial road systems (Table 2.1)is the responsibility of DOH. Maintenance of most rural roads is the respon-sibility of the 73 provinces, in many cases with assistance from ARD, PWD andthe municipalities. Roads required primarily for the operation of irrigationprojects are maintained by the Royal Irrigation Department (RID), and somenational defense roads, mainly in the frontier areas, are maintained by thearmy.

2.34 DOH maintenance activities are planned and supervised by itsKaintenance Division and carried out by its 12 field divisions and 76 fielddistricts. Most of the routine maintenance operations are performed directlyby the field districts and the periodic maintenance is done by contract underthe direct supervision of the fieli divisions and districts. Large-scaleperiodic maintenance and rehabilitation works arr carried out by contract andsupervised by DOH headquarters.

2.35 DOW's ability to organize and perform road maintenance has greatlyimproved over the last ten years. A highway maintenance study carried out in1976 under the Fifth Highway Project established the framework for themaintenance of national and provincial roads. Under the Sixth HighwayProject, technical assistance was provided in 1978-81 to help DOH set up aninternal hiring system ("Revolving Fund") for the maintenance equipment; thesystem's goals are to improve the efficiency of equipment management andutilization and to provide for the prompt supply of spare parts and forfunding the regular replacement of worn-out equipment. Implementation of thefund had to wait until the required legal., administrative and financialprocedures were clarified and effected. rhis took longer than expected, sothe effective operation of the fund did not begin until October 1, 0983; evennow it is only partially implemented. Technical assistance provided under theSecond Provincial Roads Project is helping DOH update and further implementthe fund's operation.

2.36 During 1984 and 1985, DOH assisted by consultar.s, developed aThailand Pavement Management System (TPMS) to enable its Maintenance Divisionin assigning priorities for maintenance expenditure on the paved roads underits control. The TPMS was tested on approximately 500 km of paved roads inthe Ayutthaya district and recommendations were made on the furtherdevelopment and extension of the system throughout Thailand (para. 2.19).However, DOH is facing several technical and organizational problems with thenationwide implementation of the TPMS. The action program presented in Annex1 includes details to ensure implementation of the TPMS throughout Thailand.

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2.37 The national and provincial paved network is in a reasonablyserviceable condition. However, an important part of the system isapproaching the end of its design life and is increasingly in need of majorrepairs and rehabilitation. This network system was largely built in thesixties and seventies. By 1981, the end of the Fourth Development Plan, some24,715 km, or 79% of the present paved network, were completed. However, notonly have traffic volumes often grown more rapidly than anticipated in thedesign stage, traffic loadings have also been much heavier. Also, in thepast, expenditure on road maintenance and capitat. renewal has often been belowthe levels needed in order to prevent a general deterioration of the roadnetwork. In early 1986, 50% of the paved network was rated good, 34% fair and16% poor. The condition of the paved network is even more acute on the majortruck corridors (some 3,000 km); a survey done in 1986 rated 37% as good, 50%fair and 13% in poor condition. The impo:tance of greater attention tohighway rehabilitation and maintenance and of systematic monitoring andevaluation of the road system is now recognized by the government agencies(paras 1.13 and 3.8).

2.38 DOH's road maint ance expenditures increased from about B 396million (US$19.4 million) - per year in the third plan to B 783 million(US$38.4 million) per year in the fourth plan. The amounts were, however,inadequate for the growing road system and rapidly increasing trafficvolumes. Expenditures rose to about B 1,959 million (US$79.6 million) peryear during the fifth development plan. Since 1985 the maintenance budget hascovered the estimated requirements (Table 2.8). Maintenance expendituresforeseen during the Sixth Plan amount to about B 2,959 million (US$113.8million) per year. This corresponds to about B 77,717 per km-year (US$2,989)which would be adequate provided the backlog of rehabilitation and pavementoverlay is attended to.

2.39 Although the condition surveys for DOH's roads show that much of thenetwork is in fair to good condition (para. 2.37), many of those in faircondition actually need asphaltic overlays and sealing works. Otherwise themajority of roads in fair condition will deteriorate into poor condition overthe next frw years and their subsequent rehabilitation would eventuallyrequire a multiple of the present repair cost. Expenditures for thesepurposes under the Fifth Plan amounted to about B 5,295 million (US$215 mil-lion), about 30% of the development expenditures. Under the sixth plan it isexpected that about B 11,145 million (US$428.6 million) or about 43% of thedeveloped budget would be allocated for rehabilitation and reconstructionpurposes. In order to select the best maintenance and rehabilitation policyfor a given level of funds and to evaluate their impact on the networkcondition, DOH evaluated several policy scenarios. The results of thisevaluation are presented in Table 2.9, which shows the estimated budgetaryallocations, physical targets and policies for highway maintenance andrehabilitation in the 1987-1991 period as well as their long-term impact inthe network condition. These estimates were reviewed and agreed upon duringnegotiations (para. 3.15).

1/ The following exchange rates have been used for US$l:B 20.40 before 1981;B 24.62 for 1982-86 and B 26.0 for 1987 and after.

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C. Staff and Training

2.40 DOH's staff of about 6,400 officers, including about 1,100 profes-sional staff, is adequate to carry out its functions. Most of the profes-sional personnel are experienced and capable. There are some 650 engineers,the rest are lawyers, economists, accountants and administrators. DOH'semployees are civil servants and their remuneration is subject to theGovernment salary scale.

2.41 Although DOH has managed so far to maintain the quality of itstechnical staff, there ip a need for a more systematic approach to training.Indeed DOH has long recognized the importance of developing its humanresources; it has been sending its professionals and officers abroad to study,to receive training, and to participate in meetings, seminars and conferences.The Training Division was established in 1963 to organize both pre-service andin-service training programs. However, this division is mainly an administra-tive unit primarily performing a coordinating function. Besides occasionaltraining sessions given by instructors from local universities, the divisionhas not done much innovation in planning, programing and monitoriuig oftraining. In addition, since DOH's work emphasis has shifted toward highwaymaintenance and rehabilitation, traffic management and safety, with thefrequent rotation of personnel a systematic approach to training andstrengthening the Training Division are required. DOH has started to takesome steps in this direction (paras. 3.14 and 4.6).

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III. DOH's 1987-1991 PROGRAM

A. General

3.1 Over the past several years, MOC's management of the transportsector has improved through the establishment of the Transport Planning Unit(in 1974) and the gradual implementation of a management information system,intended to provide up-to-date and reliable transport statistics. The mostimportant developments in the highway subsector have been the growingawareness of the need to rehabilitate and maintain the existing network.

3.2 DOH's expected five-year expenditure program (Table 3.1), which isthe basis for the proposed sector loan, strikes a proper balance betweenmaintenance and rehabilitation on the one hand and paving and new constructionon the other, while taking into consideration available financial resources.The program also provides adequate flexibility for adjusting annual targets inline with changes in fiscal and economic conditions.

3.3 The proposed sector loan is based on:

(a) DOH's highway program covering the period 1987-1991, subject toannual updating;

(b) criteria, procedures and related organizational arrangements forselection, engineering and implementation of individual subprojectsincluded in DOH's program; and

(c) appropriate measures to address selected sectoral issues concerningsectoral planning, road transport services and highwayadministration.

B. Program Components and Description

3.4 DOH's estimated feasible expenditure levels from 1987 through 1991are central to defining the framework of the proposed sector loan. Thus,evaluation of DOH's estimated highway budget (Table 3.1) for 1987-1991 hasbeen the focal point of loan appraisal. The depth and significance of theseestimates lie in the fact that they are recognized as realistic, given DOH'sprevious work programs implementation, the Bureau of the Budget's currentoutlook on public revenues, NESDB's assessment of priorities among and withinthe sectors, MOF's current prospects for external borrowing, and MOC's viewson previous and projected funding allocations. These estimates may actuallybe of more value than usual highway plans, which tend to be a reflection ofperceived needs rather than of fiscal capability. In that sense the 1987-91budget estimates provide an adequate framework to assess the physical targetsof the sector and to project the financing requirements. The initial 1987-91estimates presented below were confirmed during negotiations and will bereviewed annually in consultation with the Bank (paras. 3.15 and 4.23).

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3.5 The table below summarizes the expected highway expendituresbudgeted by DOH for 1987 and estimated for 1988-91. A more detailed breakdownis given in Table 3.1.

ESTIMATE OF DOH'S HIGHWAY BUDGETS(Millions of current Baht)

1987 1988 1989 1990 1991 1987-91(budgeted) Total x

Road development plan 4,056.0 4,601.3 5,295.5 6,227.7 5,784.3 25,964.8 46Highway maintenance 2,522.0 2,723.8 2,941.7 3,177.0 3,431.2 14,795.7 26Security and nonpro-grammed roads 1,352.8 1,200.0 1,200.0 1,200.0 1,200.0 6,152.8 11

Administration 1,809.0 2,000.0 2,000.0 2,000.0 2,000.0 9,809.0 17

Total 9,739.8 10,525.1 11,437.2 12,604.7 12,415.5 56,722.3 100

Overview

3.6 DOH's total highway expenditures during the period of the last threenational development programs (1971-1986) decreased slightly at about 0.8X peryear in real terms. Maintenance expenditures, however, increased during thesame period at an average rate of 4.8% per year in real terms. Most of thisincrease occurred during the fifth plan when expenditures for maintenanceincreased at about 14% per year in real terms. For the 1987-91 period, thegrowth rate for highway expenditures is expected Lo be approximately 3.1% peryear in real terms; maintenance expenditures are expected to grow at about6.9% per year. The paved highway network of approximately 31,000 km carriesthe bulk of the traffic, which has been growing in excess of 9% per year(para. 2.7). In 1986, an estimated 7,300 km of the road system had vehicleflows in excess of 4,000 vehicles per day. Furthermore, on some sectionstraffic is approaching congestion levels. DOH responded to the traffic demandby paving about 19,800 km between 1971 and 1985, bringing the total from11,500 km to the current 31,300 km. The age structure of the paved network isas follows:

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Age km X

More than 20 years 5,451 17.410 to 20 years 9,785 31.3Less than 10 years 16,020 51.3

Total 31,256 100.0

3.7 Given the age structure, pavement condition (para. 2.37) and trafficvolumes on the network, the bulk of future DOH expenditures will be determinedby maintenance, rehabilitation and capacity expansion along existing routesrather than by construction of new routes. The expected 1987-91 highwayprogram reflects these realities and continues the shift towards maintenanceand rehabilitation started in the fifth plan.

Highway Maintenance

3.8 As mentioned in paragraphs 2.38 and 2.39 maintenance expendituresgrew steadily in absolute terms and as a share of DOH's expenditures duringthe fifth plan and, since 1985, have covered the estimated requirements. Theprojected level of maintenance expenditures increases from B 2.5 billion in1987 to B 3.4 billion in 1991, representing about 26% of DOH's budget. Theproposed level of maintenance should be adequate considering that the sixth planalso allocates B 11.1 billion or 43% to rehabilitation and reconstruction.According to these projections, the rehabilitation work-load should start todecrease from about 1,300 km per year during the sixth plan to about 800 km/yearin the seventh plan. Furthermore pavement management and equipment revolvingfund systems have been developed (paras. 2.35 and 2.36) and their countrywideimplementation would be undertaken gradually and in accordance with an actionplan (para. 3.14).

Road Development Plan

3.9 The road development plan, together with the national security andnon-programmed roads, represent DOH's capital expenditures. The plan givespriority to works already committed, which accouit for a substantial portionof the first two years of plan implementation. It embodies a balanced highwaypolicy recognizing the relative priority of its main components in the ordersummarized below.

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Summary of DOH's Development Plan, 1987-1991(Current Baht million)

1987 Year Totalbudgeted 1988 1989 1990 1991 1987-1981

Rehabilitation and reconstruction 1,773.1 1872.6 2,269.3 2,679.8 2,550.0 11,144.8Improvement of congested roads 533.3 807.6 1,241.2 1,711.4 1,494.0 5,787.5Safety program 0 110.0 140.0 170.0 199.0 619.0Interchanges and bridges 77.3 257.6 233.3 120.0 120.0 808.2New road construction 195.4 267.3 304.8 268.5 185.3 1,221.3Upgrading to bitumen standard 1,476.9 1,286.2 1,107.0 1,278.0 1,236.0 6,384.1

Total 4,056.0 4,601.3 5,295.6 6,227.7 5,784.3 25,964.9 i

3.10 DOH envisions the followings rehabilitation, strengthening of some6,800 km of paved roads (some of which would be done under the maintenanceprogram); improvement through construction of additional lanes (about 410 kmof congested roads); a safety program through improving conditions in about400 hazardous road sections; construction of interchanges and major bridges inabout 11 locations; construction of some 350 km of new road links; andupgrading 3,200 km of gravel roads to bitumen standard, The physical targetsto be achieved are consistent with resource projection and implementationcapacity.

Administration

3.11 Over the years, the administrative costs of running DOH havestabilized at about 17% to 19% of the total DOH road budget. These costsinclude expenditures for right-of-way acquisition and for the highway patroland they reflect the design and supervision capacities of DOH. The share ofthis item is expected to remain at about 17% of the total budget during thesixth period. This car. be considered a normal and adequate level comparedwith that of highway agencies in other countries.

C. Financing

3.12 Government budgetary allocations make up about 90% of DOH'sinvestments and recurrent budget requirements. The remaining funds requiredwould be obtained from forEign financing, including the Bank and would be

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applied mainly to capital expenditures under the development plan. The tablebelow summarizes the expected financing sources for the development planduring 1987-91.

Baht million US$ million

Government Sources 19,766.5 760.2World Bank Highway Sector Loan 1,300.0 50.0World Bank ongoing and proposed future loan 2,316.6 89.1Other foreign sources ongoing and proposed loans 2,581.8 99.3

Total 25,964.9 998.6

The proposed project is the first of two financing operations that theGovernment is seeking from the Bank to help finance its highway sectorprogram. A second highway sector loan for about US$50 million would beproposed in FY90.

3.13 Should DOH, in the future, have to meet the national highwayrequirements with less budgetary resources than those presently envisioned,reduction in the overall size of the program would first be effected byreducing the new construction and paving components through postponement orscaling down of subprojects. To ensure the program's continued relevance andadequacy, agreements were reached, at negotiations, on (i) the financing planof the program; (ii) an annual review of program implementation; and (iii) thepriority to expenditures on maintenance and rehabilitation over newconstruction of roads.

D. Institutional Improvements

3.14 To ensure smooth execution of the program and efficient managementof the sector, specific action programs have been developed by the agenciesconcerned and are included in Annex 1. The action programs refer to specificmeasures required to: i) implement the pavement management system nationwide;ii) complete implementation nationwide of DOH's equipment revolving fundsystem; iii) strengthen DOH's training system; and iv) control truck overload-ing and improve road safety. During negotiations Government confirmed itsagreement to implement the above mentioned action programs.

3.15 To operationalize the five year program the Government confirmed, atthe time of negotiations, the following items:

(a) the level and composition of the 1987-1991 program, including thebalance of expenditures between construction of new roads andupgrading, rehabilitation and maintenance of existing roads;

(b) a financing plan with annual requirements from all sources offinancing;

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(c) an assessment of expenditures likely to be incurred by DOH incarrying out its highway program in the 1987-1991 period andincluding the maintenance expenditures likely to be funded;

(d) an annual review of program implementation and its financing toensure its continued relevance and adequacy. This review wouldinclude the amount of actual budgetary outlays compared with initialexpectations; and

(e) selection of the road works to be included in the investment programin accordance with economic and technical criteria agreed with theBank (para. 4.29).

E. Assessment and Impact on Sector Policies

3.16 The main objective of DOH during 1987-91 is to pursue and increaseongoing efforts to (a) improve road maintenance efficiency; (b) continue therehabilitation program; (c) upgrade planning and programming of pavementstrengthening and resealing; (d) undertake selected road improvements; and(e) reduce road traffic hazards. DOH's program presents a proper balanceamong its components, focusing on maintenance and rehabilitation. The assump-tions on which the financial plan is based are reasonable and consistent withestablished policies and with current and projected available resources andcould even be increased in the later years if the Government were to increasecontributions from local or foreign sources.

3.17 DOH's program also supports efforts to: (a) consolidate recentadvances in highway planning and engineering; (b) improve DOH's managementinformetion system and computerization of technical and financial records; and(c) improve road traffic safety.

3.18 As indicated in Chapter II, DOH is a mature institution capable ofplanning, programming and executing road programs and it has the capacity tocarry out the functions of the executive agency for the program. The proposedloan would continue the Bank's support for DOH's programs and policies.

3.19 Within the transport sector, the proposed loan would also includestudies and measures to: (a) create a monitoring and evaluation capacity fortransport projects within MOC; and (b) complete the remaining modules of thetransport data system.

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IV. BANK PARTICIPATION

A. General

4.1 The proposed project is a logical continuation of the Bank'sinvolvement in the sector. It will support the Government's policy, as enun-ciated in the Sixth Development Plan, of emphasis on improving maintenance andrehabilitation of the road network and thus help the Government in sustaininga relatively efficient road transport system. It would assist the Governmentin: (a) protecting past investments in the highway sector by concentrating onrehabilitation and strengthening of paved highways and improving the mainte-nance system; (b) reducing road transport costs and improving the reliabilityof services in the national and provincial roads system; and (c) improvingroad traffic safety.

4.2 The loan would finance components of DOH's 1987-91 road developmentplan and periodic maintenance program; any subproject under these programswould be a potential candidate for Bank financing. Specific subprojects to befinanced under the loan would be identified annually on the basis of agreedupon criteria and procedures for selection and implementation. In March 1987,DOH submitted to the Bank, for review, preliminary feasibility studies forabout 460 km of provincial roads and 280 km of highway rehabilitation works tobe started in 1988, the first year of implementation of the proposed project(Tables 4.1 and 4.2). In addition, DOH plans to improve 128 hazardous roadlocations during 1988. Preliminary assessment indicates that the proposedsubprojects would be eligible for Bank financing under the proposed loan.Engineering designs for these roads are substantially completed. The roadsafety program and other project components, including the training program,testing equipment, and consultants' services, have been fully defined (paras.4.5 through 4.8).

4.3 Total capital expenditures for DOH's sixth plan during the 1987-91period, are estimated at about B 25.9 billion or US$998.6 million (para. 3.9).Table 4.3 presents a tentative initial allocation of the US$50 million Bankloan as envisioned by DOH, although funds could be shifted from one categoryto another depending on actual year-to-year needs. The initial allocation ofloan proceeds was reviewed and agreed upon at negotiations.

4.4 Major components of DOH's program including the rehabilitation,maintenance and paving programs, are defined in terms of annual expendituresand physical targets (Chapter III). Other components, including road safety,the training program, testing equipment, and consultant services, are brieflydescribed below.

4.5 Road Safety. The road safety component would include:

(a) civil works to improve safety conditions in the highway networkincluding improvements in road surface and geometry and provision ofadequate traffic signs and street lighting, guard rails, bicyclelanes and pedestrian bridges. These improvements are based on amaster list of hazardous road sections prepared from a combination

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of accident statistics developed by DOH with the cooperation of JICAand proposals by the district engineers (para. 2.16). The masterlist seems reasonable given the doubts about the reliability of theavailable accident data. The sixth plan allocates some B 619 mil-lion for the road safety program. For 1988 DOH plans to improveabout 128 hazardous locations at a total cost of about B 110 million(Table 4.4)0 Details of implementation including design and biddingpackages are substantially completed;

(b) equipment to assist the highway patrol to control the behavior ofdrivers; and

(c) technical assistance, including a training program, to improve theaccident data system, research and evaluation methods. Thistechnical assistance would be provided by the Swedish Road andTraffic Research Institute and would last for about two years (para.2.16). The estimated cost of this technical assistance is aboutUS$300,000, which would be financed by the Swedish foreign aidagency (BITS) on a grant basis (Table 4.5). The above arrangementswere agreed during negotiations.

4.6 Training Program. DOH is undertaking a more systematic approach totraining its personnelt including strengthening the Training Division'sorganization and management and has prepared a three-year program (1988-90)for training of its staff. Details of the training program (Table 4.6), whichemphasizes the training of trainers and focuses on road maintenance andmanagement activities, are given in the "Evaluation/Preparation of DOH'sTraining Activities" report prepared in April 1987 by a training specialistfinanced by the Bank. To support these efforts the project would provideabout US$2 million for: (i) improvement of training facilities includingconstruction of a training center; (ii) purchase of training equipment,furniture and materials; and (iii) provision of a training specialist andinstructors. Table 4.7 shows the tentative cost of the three-year trainingprogram. In addition DOH's Training Division prepared an action program tostrengthen its operations (Annex 1).

4.7 Testing Equipment. DOH requires additional equipment for itsMaterials and Research Division, chiefly for the field inspection and testingof pavement strength and roughness that is required to establish total needand priorities of works for each year's program of maintenance, rehabilitationand strengthening of pavements. This equipment will be provided under theproject.

4.8 Consultant Services. About 210 man-months of consultant's servicesare included in the project to assist DOH, LTD, and MOC's Transport PlanningUnit (Table 4.8). These services would include assistance to DOH's highwaysupervision teams and possibly help with the implementation of the TPMS. Theyalso will include assistance with the second phase of the Intercity and RuralBus Transport Study; the revision and improvement of the transport managementsystem developed within MOC; and the development of project post-evaluationcapability in the Ministry. Terms of reference for the required services havebeen drafted by DOH, LTD and MOC with Bank assistance. As in past projects,

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consultants would provide the required services with a mix of local (about 120man-months) and expatriate personnel (about 90 man-months). Consultants willbe appointed on terms and conditions satisfactory to the Bank (para. 4.18) andGovernment's assurance to this effect was confirmed at negotiations. Also, atnegotiations the detailed terms of reference and schedule for hiring ofconsultants were reviewed and agreed.

4.9 Cost Estimates. The foreign exchange component of the civil workshas been estimated at about 50%. It assumes that the works would be carriedout mostly by local contractors, as has been the case in the most recent Bankhighway projects in Thailand, and includes the cost of gasoline, diesel andfuel oil for which Thailand is a net importer. Construction costs wereestimated on the basis of quantities and unit prices derived from the recentlycompleted contracts under the Second Provincial Roads Project. The foreignexchange component for consultants' services is estimated at about 30% forstudies, engineering and supervision and 80% for technical assistance.

R. Subprojects Eligible for Bank Financing

4.10 The proposed Bank loan would finance subprojects related to:

(a) civil works of eligible subprojects contracted after September 30,1987;

(b) purchase of laboratory testing equipment and equipment related tothe safety and training components and for the Auditor General'soffice; and

(c) studies and technical assistance in support of sectoral objectives.

All contracts for road rehabililation, strengthening, improvement and paving,accepted for disbursement under the loan would be committed before October1, 1989, and have an initial completion date no later than December 31, 1990.

4.11 For each subproject DOH will prepare an evaluation sheet on whichthe key technical, design, cost, economic and tentative tender information issummarized. The Bank missions will review these data and confirm eligibilityto DOH. Rejected subprojects may be resubmitted for consideration ifconditions change. Eligibility means that the Bank will help financecontracts related to the subproject, provided counterpart funds are allocatedand the tendering is according to agreed-upon procedures and agreed-upondesign standards.

4.12 Before committing funds for a subproject, the Bank would require thefollowing:

(a) for subprojects related to rehabilitation, strengthening and over-Lays of paved roads and improvement and paving of provincial roads:(i) at the preliminary stage, a basic data sheet for each subprojectsubstantially similar to the sample included in Annex 2; and (ii) atthe final stage, upon completion of detailed engineering, an updatedbasic data sheet if changed during the design phase of thesubproject and the schedule of execution showing the sequence oftet:dering and construction.

- 25 -

(b) for safety and training civil works, a description of the works,their estimated value and the schedule of execution;

(c) for purchase of equipment for road safety, testing of materials andpavements, and training, the list, type and estimated value of theequipment and schedule of execution; and

(d) for studies and technical assistance, detailed terms of reference,manpower requirements, cost estimates and the execution schedule.

4.13 Except as the Bank would otherwise agree, any Bank-financed subpro-ject related to rehabilitation, strengthening and overlays of paved roads, andimprovement and paving of provincial roads should be evaluated and selectedfollowing a methodology satisfactory to the Bank. Such subprojects shouldhave an economic rate of return of at least 12X, calculated in accordance witha method satisfactory to the Bank (para 4.29). Agreements on the aboveprocedures related to eligibility were confirmed during negotiations.

C. Conditions and Procedures for Procurement of Bank-Financed Subprojects

4.14 The bulk of civil works for highway rehabilitation, strengthening,and for improvement and paving of provincial roads eligible for financingunder the loan, totalling about US$74.2 million, would be carried out throughcontracts awarded on the basis of ICB by prequalified firms in accordance withthe Bank guidelines for procurement (Table 4.9).

4.15 The Bank would conduct a prior review of the standard civil worksbidding documents to ensure that a satisfactory pracurement process will befollowed. Thereafter, a US$2.5 million threshold for prior review would beapplied, resulting in a coverage of about 50X of the contracts. Bidders wouldbe allowed to bid for separate contracts or for groups of them, depending onthe value of works for which they are prequalified. For Thai contractors, theexisting system of prequalification now in use under the Second ProvincialRoads Prcject would be continued. For potential foreign contractors,invitations to prequalify will be sent annually to embassies and published inDevelopment Business. The Bank will receive for its review the list ofprequalified contractors and of those refused prequalification, if any, andthe reasons therefor.

4.16 Periodic maintenance works, including asphalt overlays, totallingabout US$4 million, and civil works for road safety and training of DOH'sstaff (estimated at about US$12.4 million) would be procured under localcompetitive bidding procedures acceptable to the Bank. Foreign bidders arenot expected to be interested in these works because the contract values aresmall and scattered geographically.

4.17 Specialized equipment for the road safety program and for testing ofengineering materials and pavement and auditing (estimated at a total cost ofUS$1.2 million) would be purchased through international and local shoppinginvolving at least three quotations obtained from foreign or localsuppliers. Equipment and furniture for training and for auditing (estimatedat about US$1.0 million) would be procured under local competitive proceduresacceptable to the Bank.

- 26 -

4.18 Consultant services for coordi.nating the supervision of highwayworks and for technical assistance (para. 4.8), estimated at about US$1.9 mil-lion, would be contracted in accordance with Bank's guidelines.

4.19 Contracts for civil works estimated to cost the equivalent ofUS$2.5 million or less would be subject to random post review by the Bankafter contract award. This is considered sufficient since the biddingdocuments are standard for all road works. With respect to these contracts,DOH will without Bank involvement:

(a) advertise the bidding of the works;

(b) prepare bidding documents;

(c) prepare coWt estimates;

(d) prepare a list of prequalified foreign and local contractors;

(e) issue bid invitations to prequalified contractors;

(f) open bids;

(g) prepare bid evaluations;

(h) award contracts; and

(i) sign contracts and issue notices to proceed.

4.20 In the case of goods and equipment for the road safety program, fortesting of engineering materials, and for training and auditing, the Bankwould do a prior review of the list, including the type and estimated value ofthe equipment and the schedule of execution. The Bank also would do a priorreview of bidding documents for equipment or goods estimated to costUS$300,000 equivalent or more.

4.21 After contracts eligible for Bank financing has been signed, DOHwill send to the Bank:

(a) an updated evaluation sheet for subprojects related torehabilitation, strengthening, and overlays;

(b) the tender evaluation report showing award to the lowest evaluatedbidder; and

(c) the signed contract.

The Bank would have the right to reject the financing of any contract forwhich agreed-upon bidding procedures have not been followed.

- 27 -

D. Monitoring and Auditing

4.22 MOC will be responsible for implementing the project, through itsDOH, as for previous highway projects. The bulk of the administration of thecontracts under the proposed loan would be the responsibility of DOH whichwould keep records of all bids, documents and official decisions on eacheligible subproject showing total expenditures to date, monthly payments andadministrative data and prepare quarterly reports with this information.Also, DOH would prepare within six months after completion of the project aproject completion report on the execution and initial operation of theproject. The Bank would reserve the right to itnspect and review thedocumentation maintained by DOH and to be sent detailed information.

4.23 The annual consultations on DOH's highway program and the budgetwould provide the major opportunity for reviewing progress of DOH's 1987-91program (Chapter III) and implementation of the loan. Monitoring andsupervision of the proposed sector loan would focus on:

(a) the evolution of DOH's 1987-91 program. Tables 2.9, 3.1 and 3.2give the targets in financial and physical terms for the tentativehighway investment and maintenance program. Progress will bemeasured against these targets;

(b) the progress made in pursuing the institutional and sectoratobjectives of the loan, to be reviewed on the basis of the actionprograms presented in Annex 1;

(c) the implementation of eligible subprojects to be reviewed on thebasis of the summary data sheets and quarterly reports (para 4.22);and

(d) th. progress in commitments and disbursements of loan funds to beassessed on the basis of the summary of expenditures and physicalprogress of all eligible subprojects.

4.24 Although in the past DOH has kept detailed accounts of Bank pro-jects, compliance with the audit requirement has not been timely. TheGovernment is aware of this problem and is attempting to expedite future auditreports. At negotiations, it was agreed that (a) DOH will keep separateaccounts for the proposed project; (b) the project accounts, includingdocumentation Lor the statements of expenditures (SOEs) (para. 4.26), will beaudited by independent auditors acceptable to the Bank; (c) DOH will report onthe level of investment and recurrent expenditures and any variances betweenthe expected program level and the amount actually budgeted; and (d) that thedetailed audit report will be submitted to the Bank within six months afterthe end of each fiscal year. The project provides equipment for theenhancement of the auditing capabilities of the Auditr General's office whichwould audit the project. In addition, DOH will prepare and furnish to theBank, within six months after completion of the project, a completion reporton the execution and initial operation of the project.

- 28 -

E. Disbursements

4.25 Disbursements from the loan will be made against applications basedon contracts for subprojects eligible for the Bank financing, as follows:

(a) Civil Works. 50% of the expenditures for construction/improvement,and rehabilitation/strengthening and overlays of roads; 95% of theexpenditures for construction/improvement of training facilities;

(b) Goods and Equipment. 100% of foreign expenditures; 100% of localexpenditures (ex-factory cost); and 80% of local expenditures forother items procured locally; and

(c) Services. 100% of the total cost of consultants' services.

4.26 Expenditures for civil works for asphalt overlays to be contractedby the districts, for works on hazardous locations and for improvement/construction of training facilities are likely to involve many small contractscosting less than US$300,000. They would be reimbursed on the basis of state-ments of expenditure. Supporting documents would be retained by DOH forinspection by Bank staff during project supervision.

4.27 To facilitate disbursements the project would use the Government'sestablished internal revolving funds system which enables the ControllersGeneral Department to advance funds from its own resources to line agenciesfor expenditures in both local and foreign currencies. When projectexpenditures under the internal revolving fund reach $20,000, the ControllersGeneral Department will batch the withdrawal applications and submit these tothe Bank for reimbursement.

4.28 A schedule of estimated disbursements (Table 4.10) has been preparedon the basis of a tentative implementation schedule prepared by DOHconsidering additional Bank financing in 1990. The projected disbursementprofile, for the proposed Bank participation in the program,is broadly inoverall agreement with the regional subsector profiles and in line withcurrent performance under the Second Provincial Roads Project. It is expectedthat loan disbursements will be completed in about three years and that thefinal tail of the regional profile would be eliminated because biddingdocuments are standard and the review and approval of contracts has beenstreamlined to reduce delays.

F. Economic Justification

4.29 DOH's policy is to use economic feasibility as the main criterionfor selecting subprojects for its development plan. The components of DOH'sdevelopment plan that lend themselves to straight-forward economic analysis,i.e., new construction, rehabilitation and paving, make up 73% of the plan.The cost estimates will be based on detailed engineering, and the benefits,depending on the specific 3ubproject being analyzed, will consist of savingsin vehicle operating costs, mainLenance cost savings, and diverted or gene-rated traffic benefits, whenever applicable. Time savings are not included inthe base case but would be provided as additional information. The vehicleoperating cost savings are based on the terrain in which a particular

- 29 -

subproject is located and on the traffic composition and growth. The latteris established by a countrywide system of traffic counting stations supple-mented by specific traffic counts, if required. DOH maintains periodicallyupdated vehicle operating cost tables. The minimum economic return forsubprojects to be included in the plan is established at 12%, equal to theopportunity cost of capital in Thailand. The broad geographic distribution ofsubprojects ensures that the benefits of road improvements would be widelydistributed. The roads already inciuded in the 1988 program (Tables 4.1 and4.2) have an economic return in the 14 to 45% range. DOH plans to select andevaluate all future roads for construction, rehabilitation and paving inaccordance with the methodology being used in developing the 1988 program.During negotiations, the Government confirmed that the methodology will not bechanged without consultation with the Bank and that no road work isimplemented for which the economic return is less than 12%.

4.30 Road maintenance constitutes 26% of the program and ensures that theroads will be kept at the standards for which they were designed. The roadmaintenance costs have been included in the economic evaluation ofsubprojects. Experience from similar programs in other parts of the worldsuggests that coordinated measures to increase the efficiency of maintenanceoperations have a high return.

4.31 The economic assessment of the other project components, i.e. roadsafety, training and special components, is more complex and, by necessity, ofa qualitative rather than a quantitative nature. The road safety componentdraws on experience from other countries and is expected to achieve, as itsprincipal benefit. a reduction in traffic accidents and fatalities. Thetraining component is expected to lead to higher efficiency in DOH'soperations, but the benefit cannot be quantified.

G. Assessment of Risk

4.32 DOH's budget estimates for its 1987-91 program have been carefullyreviewed and are reasonable considering, on the one hand, the financialresources available for the subsector and, on the other hand, the capacity ofDOH and the construction industry. The amount of the loan has been setprudently below the potential disbursement basis. There is no serious risk ofDOH's program being insufficient to commit and disburse the loan as scheduled.The wide range of subprojects available and the flexibility afforded in thecommitment of loan funds should result in a smooth implementation of theproject. Road works to be implemented during the program mostly follow thealignments of existing roads, minimizing property disturbances and landacquisition for right-of-way. In addition, road safety would be improved bythe implementation of specific measures.

- 30 -

V. AGREEMENTS AND RECOMMENDATIONS

5.1 During negotiations, the following matters were reviewedand agreed:

(a) the initial 1987-91 DOH highway budget estimates including highwaymaintenance (paras. 2.39, 3.4, 3.15); and the financing plan(paras. 3.13, 3.15);

(b) an annual review of DOH's program implementation and its financing(paras. 3.13, 3.15);

(c) the priority to expenditures on maintenance and rehabilitation overnew road construction (para. 3.13);

(d) the implementation of action programs related to the pavementmanagement system, equipment revolving fund, training, and controlof truck overloading and safety (para. 3.14);

(e) the arrangements for possible technical assistance from the SwedishRoad and Traffic Research Institute and its financing by BITS (para.4.S(c));

(f) the terms of reference, procedures and schedule for hiring ofconsultants (paras. 4.8 and 4.18).

5.2 Also, during negotiations the following matters were confirmed:

(a) the engineering and implementation arrangements for the first-yearsubprojects (para. 4.2);

(b) the initial allocation of loan proceeds (para. 4.3);

(c) procedures related to eligibility of subprojects (paras. 4.10through 4.13); and

(d) the selection criteria for the road works to be included in theinvestment program (para. 4.29);

5.3 Subject to the above, the project provides a suitable basis for aBank loan of US$50 million equivalent, for a period of 17 years including agrace period of 4 years, at standard variable rate. The borrower will be theKingdom of Thailand.

- 31~ Table 1.1

THAILAND

HIGHWAY SECTOR PROJECT

Passenger aud Freight Transport by Mode, 1981(Mill1ions)

Tons Ton-km Passengers /a Passenger-km /a

Road 157.0 22,000.0 2,200.0 88,000.0

Rail 6.1 2,732.0 78.8 9,483.0

Inland waterways 5.4 1,200.0 - -

Coastal shipping 3.0 1,800.0 - -

Domestic aviation - 1.0 0.8 295.0

Total 171.5 27,733.0 2,279.6 97,778.0

/a Excludes Bangkok Metropolitan Transit Authority (BMTA) (1,390 millionpassengers and 8.3 million passenger-km) and SRT ordinary commuter traffic(6 million passengers and 250 million passenger-km).

Source: SRT, DECONS, TPU, KAMPSAXo

-32- Table 1.2

THAILAND

HIGHWAY SECTOR PROJECT

Government Five-Year Plan Investments In Transport - Summary /a(Million bah_)

Third plan Fourth plan Fifth plan Sixth planMode 1972-76 /b 1977-81 /b 1982-86 /b 1987-91 /c

RoadsNational 8,381 16,225 9,470 270688Provincial 6,655 1 10,616 }Rural 1,231 6,065 5,274 5,829

Subtotal 16,267 22,290 25,360 33,517

Railway 1,933 3,945 14,707 12,560

Inland waterways and ports 895 1,920 13,298' 17,714Civil aviation 816 1,425 18,722 15,477

Total 19,911 29,580 72,087 79,268

Transport as percentage ofdevelopment expenditures 20 12 13 12

/a In current prices.

/b Commitments.

Jc Current tentative plan figures.

Source: National Economic and Social Development Board and Department ofHighways.

March 1987

THAILAND

HIGHWAY SeCTOR PROJECT

National And Provincial Htghway Networks (1965-85)(Kilometers)

Conces- National Highways Provtncial highwayssion Unist- Unit- Total highways Totalhigh- Opened to traffic /a proved Opened to traffic /a proved Opened to traffic /a unimproved Grandways Paved Gravel Total /b Total Paved Gravel Total /b Total Paved Gravel Totel highways /b Total

1965 Is 5,046 4,436 9,482 4,600 14,082 405 2.389 2,794 5,475 8,269 5,451 6,825 12,276 10,075 22.3511966 15 5,008 4,490 9,498 4,610 14,108 427 2,569 2,996 5,434 8,430 5,435 7,059 12,494 10,044 22,5381967 15 5,507 4,011 9,518 4,632 14,150 581 3,311 3,892 7.958 11,850 6,088 7,322 13,410 12,i9O 26.n001968 15 6,613 3.131 9,744 4,566 14,312 1,131 4,078 5,209 8,472 13,681 7,744 7,209 14.953 13,040 27.9931969 15 7,822 ,2,146 9,968 4,504 14.472 1,281 4,448 5,729 9,796 15,525 9,103 6,594 15,697 14,300 29,9971970 15 8,620 1,781 10,401 4,284 14,685 1,479 4,413 5,892 11,426 17,318 10,099 6,194 16.293 15,710 32,0031971 15 9,681 1,296 10,977 2,727 13,704 1,781 4,437 6,218 13,379 19,597 11,462 5,641 17,195 16,106 33.3011972 15 10,493 1,014 11,507 2,815 14,322 2,288 3,891 6,179 15,487 21,666 12,781 4,905 17,686 18,302 35.9881973 15 11,065 1,008 12,073 2,985 15,058 2,560 4,039 6,509 15,189 21,788 13,625 5,047 18.672 18,174 36.8461974 15 11,7!0 747 12.497 2.725 15,222 3.025 3,986 7,011 15,208 22,219 14,775 4,733 19.508 17,933 37.441 w

1975 15 11,840 818 12,658 2,776 15,434 3,396 4.034 7,430 15,447 22,877 15,236 4,861 20,088 18,223 38,311 11976 - 12,052 752 12,804 2,591 15,395 4,276 4,601 8,877 14,857 23,734 16,328 5,353 21,681 17,448 39,1291977 - 12,218 722 12,940 1,162 14,102 4,920 5,022 9,942 14,200 24,142 17,138 5,744 22,882 15,362 38,2441978 - 12,763 547 13,310 1,555 14,865 6,209 5,547 11,756 15,220 26,976 18,972 6.094 25,066 16,77S 41,8411979 - 13,613 207 13,R20 923 14,743 8,129 5,549 13,678 14,880 28,558 21,742 5,756 27,498 15,803 43,3011980 - 13,733 160 13,893 980 14,873 8,670 5,587 14,257 14,709 28,966 22,403 5,747 28,150 15,689 43,8391981 - 14,054 121 14,175 1,081 15,256 10,661 5,180 15,841 12,819 28,660 24,715 5,301 30,016 13,900 43,9161982 - 14,249 100 14,349 1,246 15,595 11,517 5,136 16,653 11,708 28,361 25,766 5,236 31,002 12.954 43,9561983 - 14,980 92 15,072 479 15,551 13,036 5,040 18.076 10,638 28.714 28,016 5.132 33,148 11,117 44,2651984 - 14,980 92 15,072 511 15,583 13,036 5,040 18,076 10,875 28,951 28,016 5,132 33,148 11,386 44,5341985 - 15,132 86 15,218 483 15.701 16,124 4,893 21,017 8,619 29,636 31,256 4,975 36,235 9,102 45,337

a Roads which receive the normal allocatlon of maintenance funds.

/b Roads which are under construction or being considered for Itprovement.

Source: Department of Highways.

March 1986

THAILAND

HIGHWAY SECTOR PROJECT

Department of Highways' Roads by Region in 1985(Kilometers)

National highways Provincial roads National & provincial roadsUnim- Unim- ,Unim-

Region Paved Gravel proved Total Paved Gravel proved Total Paved Gravel proved Total

North 3,310 17 95 3,422 4,582 801 3,664 9,047 7,892 818 3,759 12,469

Northeast 4,624 39 140 4,803 4,279 1,790 1,892 7,961 8,903 1,829 2,032 12,764

Central 4,252 22 89 4,363 4,294 1,438 1,642 7,374 8,546 1,460 1,731 11,737

South 2,946 8 159 3,113 2,969 864 1,421 5,254 5,915 872 1,580 8,367

Total 15,132 86 483 15,701 16,124 4,893 8,619 29,636 31,256 4,979 9,102 45,337

Source: Computer Center, Department of Highways.

March 1987

co

-35- Table 2.3

J

THAILAND

HIGHWAY SECTOR PROJECT

Motor Vehicle Registration 1970-84

Location Year Cars Buses Trucks Motorcycles Other Total

A. Number 3f Units (000)

Thailand 1970 222 19 136 338 23 7381971 235 18 147 364 19 7831972 240 20 159 376 38 8331973 251 22 179 408 27 8871974 301 23 232 459 31 1,0461975 290 23 238 479 31 1,0611976 298 20 285 512 30 1,1451977 331 27 345 648 38 1,3901978 363 28 372 727 48 1,5381979 389 29 399 756 47 1,6211980 412 30 468 907 47 1,8641981 451 64 472 1,141 50 2.1781982 388/a 210/b 555 1,368 60 2,5781983 412 221 569 1,716 59 2,9771984 573 198 598 1,912 61 3,342

Bangkok and 1970 173 5 43 69 15 305Tr5uri_rI 1971 183 5 44 74 15 321

1972 183 6 43 72 16 3201973 185 6 44 73 14 3221974 232 6 62 74 17 3911975 218 7 43 87 13 3681976 222 5 56 94 16 3931977 243 10 69 121 20 4631978 265 11 71 129 27 5031979 287 12 83 136 28 5461980 314 13 102 162 30 6211981 348 13 98 290 32 7811982 283/a 123/b 122 339 35 9021983 305- 13T- 128 391 35 9981984 411 140 108 436 35 1,130

B. Annual Growth Rates (Z)

Thailand 1970-81 6.6 8.0 13.3 11.3 7.9 10.31982-84' 21.5 -2.9 3.8 18.2 0.8 13.9

Banokok and 1970-81 6.4 10.4 8.8 11.7 8.2 8.3Toin5uriH 1982-84 20.5 6.7 -5.9 13.4 0.0 11.9

/a Excluding personal cars seating more than 7 persons (since 1982).7_ Including personal cars seating more than 7 persons (since 1982).

Source: Licenses Division, Police Department.

Table 2.4-36-

THAILAND

HIGHWAY SECTOR PROJECT

Vehicle-Kilometer for the Year 1981-85

Vehicle kilometer (million)Passenger vehicle Freight vehicle

Car and Light Heavy Light Medium Heavy GrandHighway class Taxi bus bus Total truck truck truck Total total

1981Primary highways 2,420.1 790.4 722.6 3,933.1 1,507.1 902.4 1,145.9 3,555.4 7,488.5Secondary highways 1,610.8 778.5 438.8 2,828.1 1,141.6 635.1 491.2 2,267.9 5,096.1

National highways 4.030.9 1,568.9 1,161.4 6,761.2 2,648.7 1.537.! 1,637.1 5,823.3 12,584.5

Provinctial highways 1,516.0 1,260.6 420.7 3,197.3 1,713.4 896.8 501.7 3,111.9 6,309.2

Total 5,546.9 2,829.5 1,582.1 9,958.5 4,362.1 2.434.3 2,138.8 8,935.2 18,893.7

1982Primarv highways 2,912.9 903.4 833.2 4,649.5 1,721.8 1,057.0 1,208.1 3,986.9 8,636.4Secondary highways 1,724.3 744.2 438.7 2,907.2 1,250.6 621.7 485.3 2,357.6 5,264.8

National highways 4.637.2 1,647.6 1,271.9 7,556.7 2,972.4 1,678.7 1,693.4 6,344.5 13,901.2

Provincial highways 1,688.1 1,257.9 415.0 3,361.0 1,806.7 935.4 521.0 3,263.1 6,624.1

Total 6,325.3 2,9n5.5 1,6R6.9 10,917.7 4,779.1 2,614.1 21214.4 9,607.6 20,525.3

1983Primary highways 3,051.2 989.4 876.4 4,917.0 2,009.5 1,157.6 1,295.6 4,462.7 9,379.7Secondary highways 1,938.7 730.4 447.1 3,116.2 1,442.6 652.5 540.6 2,635.7 5,751.9

National highways 4,989.9 1,719.8 1,323.5 8,033.2 3,452.1 1,810.1 1,836.2 7,098.4 15,131.6

Provinctial highways 1,942.8 1,213.4 441.4 3,603.6 2,050.9 954.9 580.9 3,586.7 7,190.3

Total 6,932.7 2,933.2 1,764.9 11,636.8 5,503.0 2,765.0 2,417.1 10,685.1 22,321.9

1984Primary highways 3,168.5 993.8 901.4 5,063.7 2,277.3 1,214.9 1,519.4 5,011.6 10,075.3Secondary highways 2,134.9 788.2 473.3 3,396.4 1,756.3 752.1 664.6 3,173.0 6,569.4

National highways 5.303.4 1,782.0 1,374.7 8,460.1 4,033.6 1,967.0 2,184.0 8,184.6 16,644.7

Provincial highways 2,128.3 1,294.4 471.7 3,894.4 2,263.4 1,037.3 647.3 3,948.0 7,842.4

Total 7,431.7 3,076.4 1.846.4 12,354.5 6.297.0 3,004.3 2,831.3 12.132.6 24,487.1

1985Primary highways 3,509.5 1,024.9 947.9, 5,482.3 2,596.0 1,253.9 1,628.1 5,478.0 10,960.3Secondary highways 2,238.6 796.2 506.4 3,541.2 1,855.1 725.7 679.7 3,260.5 6,801.7

National highways 51748.1 1,821.1 1,454.3 9,023.5 4,451.1 1,979.6 2,307.8 8,738.5 17,762.0

Provincial highways 2,264.4 1,303.4 501.6 4,069.6 2,502.3 1,101.3 622.3 4,225.9 8,295.5

Total 8,012.5 3,124.5 1,956.1 13.093.1 6,953.4 3,080.9 2,930.1 12.964.4 26,057.5

Source: Traffic Engineering Office, DOH.

March 1987

-37-Table 2.5

THAILAND

HIGHWAY SECTOR PROJECT

Department of Highways - Expenditures and Sources of Finance, 1972-86(B million)

Government budget ConsumerConstruction price

Fiscal Adminis- Mainte- rehabilitation Foreign indexyear /a tration/b nance/c and improvement Total loans Total (%)

/d

1971 626 350 2,038 289 3,303 192 3,495 39.6

1972 609 304 1,578 219 2,710 146 2,856 41.61973 628 310 1,766 416 3,120 203 3,323 48.01974 801 341 1,866 66 3,074 112 3,186 59.71975 708 454 2,140 45 3,347 83 3,430 62.91976 957 573 3,042 100 4,672 145 4,817 65.5

1972-76 3,703 1,982 10,392 846 16,923 689 17,612 -(3rd plan)

% 21 it 59 5 - 4 100

1977 1,033 615 2,766 427 4,841 207 5,048 70.41978 901 575 3,492 566 5,534 211 5,745 76.01979 1,218 867 3,298 684 6,067 458 6,525 83.51980 1,363 811 4,311 725 7,210 750 7,960 100.01981 1,492 1,045 5,020 628 8,185 700 8,885 112.7

1977-81(4th plan) 6,007 3,913 18,887 3 030 31,837 2,326 34,163 -

% -17 12 - 55 9 - 7 100

1982 1,811 1,504 3,965 905 8,185 878 9,063 118.61983 1,776 1,720 3,565 1,056 8,117 817 8,934 123.01984 1,748 1,881 3,740 680 8,049 578 8,627 124.11985 1,875 2,385 3,933 720 8,913 948 9,861 127.11986/e 1,757 2,303 3,821 1,047 8,928 1,052 9,980 129.4

1982-86(5th plan) 8,967 9,793 19 024 4,408 42,192 4,273 46,465 -

% 19 21 41 10- - 9 IOU

/a October 1 - September 30./b Includes the cost of: (a) mechanical equipment repair and its partial replacement,

which are not apportioned to maintenance and construction works, and (b) highwaypatrols.

/c Excludes fuel, oil and spare parts (about 20% of given budget figures), which are partof the cost of administration.

/d Foreign loans counterpart.7e Budget allocation.

Source: Department of Highways/International Financial Statistics and Bank mission.

March 1987

Table 2.6-38-

THAILAND

HIGHWAY SECTOR PROJECT

Estimates of Tax Receipts from Road Sector (1980-85)(B milliion)~

1980 1981 1982 1983 1984 1985

Custom Duty and Excise Tax

Gasoline 7,683 8,098 8,179 9,331 9*460 99714

High-speed diesel 3,149 3,348 3,302 3,281 3,870 39232

Cars, parts and accessories 2,483 3,224 2,823 4,144 5,092 4,161

Tires 50 57 38 89 93 76

Subtotal 13,365 14,727 14,342 16,845 *-18,515 I77183

Business and Municipal Tax

Gasoline 216 330 39 2 49 3

High-speed diesel 473 544 599 494 948 128

Cars, parts and accessories 441 550 530 632 911 731

Tires 19 20 14 30 40 35

Vehicle registration fee /a 788 992 1,207 1,454 1,495 1,486

Subtotal 1,937 2,436 2,389 2,612 3,443 21383

Total 15,302 17,163 16,731 19,457 21,958 1

/a Including fee of Police Department in the whole Kingdom and TransportDepartment in Bangkok.

Source: Customs, Excise, Police and Highways Departments.

March 1987

Table 7THAILAND

HIGHWAY SECTOR PROJECT

Design Standarda for National and Provinctal Roads

Bridge with (between curbs): 9 m on national highways classes P(D), P(l), S(D) and S(l)8 i on national highways classes P(2) and P(3) and on provincial roads class

P(l) and P(2)7 a on provincial roads class F(3) to F(6)

Vertical clearance: 4.50 a

Design axle load (pavement): 20.000 lb (24,000 lb in Bangkok area)

Design bridge loading: HS20

Geometric design standard Ia: TerrainFiat and ocer- xoiiing ana

Highways and Roads Unit atell rolling hilly 'Mountains

Kjtional (Primary)Dsilgn sTee kim/h 80-100 60-80 50-60/bMaximum gradient 2 4 6 8/bRight-of-woy u 60-80 60-80 60-IT

National (Secondary and Provin-ciai F1D). Ft1)k r(27 and Pk)

Design speed km/h 70-90 55-70 40-55/bMaximum gradient X 6 9 10/bRight-of-way i 40-60 40-50 40-&Tr

Provincial F(4). F(S) and F(6)Deslgn speed km/h 60-80 45-60 30-45/bMaximum gradient 2 8 10 12/6-Right-of-way m 20-40 20-40 20-Trr

Roadway features:

National (Primary) Class P(D) 71) P(2) P(3)

Equivalent daily traffic no. above 8,000 4,000-8,000 2,000-4,000 below 2,000(aadt) /a

Surf acd--ry=e /c a high high lntermediate intermediateWidth of carrTaigeway a divided 2 x 7.00/d 7.00 6.50 6.00Width of shoulder /b a 2.50 2.50 2.25 2.00Width of roAdbed F- a varies 12.00 11.00 10.00

National (Secondary) Class S(D) I(l) S(2) S(3) S(4) S(5)

Equivalent daily traffic no. above 4.000- 2,000- 1,000- 300- below(aadt) /a 8,000 8,000 4.000 2,000 1,000 300

Surface type /c a high high inter- inter- low gravelmediate mediate

Width of carriageway a divided 7.00 6.50 6.00 5.50 (including2 x 7.00/d soles

Width of shoulder /b a 2.50 2.50 2.25 2.00 1.75 shoulders)Width of roadbed 15 a varies 12.00 11.00 10.00 9.00 9.00

Provlncial Class P (DU Q(2) 7(3) F(4)/e F(5) and F(6)

Equivalent daily traffic no. above 4,000- 2,000- 1,000- 300- above 300(aadt) /a 8.000 8,000 4,000 2,000 1,000 below 300

Surface type /c a high hlgh Inter- Inter- low gravelmediate mediate

Width of carriageway a divided 7.00 6.50 6.00 5.50 (including shoulders)2 x 7.00/d

Width of shoulder b m 2.50 2.50 2.25 2.00 1.75Width of roadbed !FT a varies 12.00 11.00 10.00 9.00 9.00 6.00

] Geometric standards normally based on 15-year traffic projections.7 Design speed and vidths may be reduced and gradients increased In exceptional circumstances./c Pavement design normally based on 7-year traffic prolections of equivalent 20,000 lb axle loads.R Initially constructed with two lanes unless immediate construction of four lanes is economically

justified.Ie Closs P(4) is for roads with projected sadt above 300 after 7 years.

Source: Department of HiNgrwaya.

March 1987

-40-

THAILAND

HIGHWAY SECTOR PROJECT

Depa-rtment of Highways Budget1, 1984-86(B million)

Item 1984/a 1985/b 1986/b

Administration 1747.7 1,72 1757.3General administration 837.4 875.3 926.3Administration for engineering 64.0 58.8 74.6

Administration for operation 300.4 248.7 223.1Right-of-way acquisition 285.6 279.4 277.9

Administration of construction centers 92.6 77.2 64.7Highway patrol 167.7 187.9 190.7

Sp?ecial Highway Construction and Improvement 235.2 234.7 189.9

Highway Construction Rehabilitation andUpgrading 3,620.9 4,310.1 4,145.0

National highways 1,157.7 12789.8 1,559.8

Primary highways 530.7 886.2 793.3Secondary highways 627.0 903.6 766.5

Provincial highways 2,463.2 2,520.3 2,585.2

Hiab%ay Maintenance /c - 1,881.7 2,408.8 2,303.0Routine maintenance 775.3 1,208.7 1,104.5Special and periodic maintenance 1,106.4 1,200.1 1,198.5

Security Roads 564.0 634.5 532.9

Total Government Budget 8,049.5 9,315.4 8,928.1

External loans 578.0 948.0 1,052.0

Total Budet 8,627.5 101263.4 91980.1

(a Actual expenditures./b Budget allocations.7_ Maintenance requirements estimated at constant 1983 prices, for the Second

Provincial Roads Project, amounted to B 2,247 million for 1984; B 2,300

million for 1985 and B 2,355 million for 1986.

Source: DOH and Bank mission,

March 1987

-41-Table 2.9

THAILAND

HIGHWAY SECTOR PROJECT

Estimated Highway Maintenance Budget Requirements

1986 i987 1988 1989 1990 1991 1992

Road Network (km)Paved 31,256 32,143 33,000 33,797 34,521 35,314 36,043Unpaved 4,979 4,679 4,422 4,262 4,194 4,039 3,905

Total 36,235 36,822 37,422 38,059 38,715 39.353 39,948

Road Condition (kmPaved (km)Good 15,595 17,640 19,568 21,512 23,631 26,077 28,414Fair 10,654 8,125 6,500 5,200 4,160 3,328 2,662Poor 5,007 6,378 6,932 7,085 6,730 5,909 4,967

Unpaved (kcm)Good 2,490 2,340 2,211 2,131 2,097 2,020 1,953Fair 1,494 1,404 1,327 1,279 1,258 1,212 1,172Poor 996 936 884 852 839 808 781

Work Program (km)Routine 36,235 36,822 37,422 38,059 38,715 39.353 39,948Periodic paved 2,131 1,960 2,174 2,390 2,626 2,897 3,157Rehab. of poor paved 760 1,071 1,147 1,395 1,653 1,608 993Paving of gravel 800 757 660 568 655 634 400

Cost Estimate (B million)Routine 978.3 994.2 1,010.4 1,027.6 1,045.3 1,062.5 1,078.6Periodic paved 1,449.1 1,332.8 1,478.5 1,625.4 1,785.5 1,970.3 2,146.8Rehab. of poor paved 1,368.1 1,928.1 2,064.3 2,511.3 2,975.6 2,894.0 1,788.0

Subtotal 3,795.5 4,255.1 4,553.2 5,164.3 5.806.4 5,926.8 5,013.4

Paving of gravel 1,560.0 1,476.9 1,286.2 1,107.0 1,278.0 1,236.0 780.0

Total 5,355.5 5,732.0 5,839.4 6,271.3 7,084.4 7,162.8 5,793.4

Bde B million)Recurrent /a(saint. !-rehab) 2,253.1 2,482.0 2,680.6 2,895.0 3,126.6 3,376.8 3,478.1

Development (rehab) 1,542.4 1,773.1 1,872.6 2,269.3 2,679.8 2,550.0 1,535.3

Subtotal 3,795.5 4,255.1 4,553.2 5,164.3 5.806.4 5,926.8 5,013.4

Development (paving) 1,560.0 1,476.9 1,286.2 1,107.0 1,278.0 1,236.0 780.0

Total 5,355.5 5.732.0 5,839.4 6,271.3 7,084.4 7,162.8 5,793.4

Policies () Unit cost (B mln/km)

Routine maintenance to be done 100 0.027Periodic maintenance to be done 100 0.680Rehabilltation to be done 1.800

as per percentage belowGravel roads to be paved annually 1.950

Rehabilitation [S) 15.18 16.80 16.55 19.69 24.56 27.21 20.00

Excludes emergency works.

Source: DOH and Bank mission.

March 1987

-42- Table 3.1

THAILAND

HIGHWAY SECTOR PROJECT

DOH's Total Expenditure Program, 1987-1991(B million)

Total1987 1988 1989 1990 1991 1987-91

Road Development Plan 4,056.0 4,601.3 5,295.5 6,227.7 5,784.3 25,964.8/aRehabilitation & reconstruction 1,773.1 1,872.6 2,269.3 2,679.8 2,550.0 11,144.%Improvement of congested roads 533.3 807.6 1,241.2 1,711.4 1,494.0 5,787.5Upgrading to Bitumen standard 1,476.9 1,286.2 1,1n7.0 1,278.0 1,236.0 6,384.1New road construction 195.4 267.3 304.8 268.5 185.3 1,221.3Interchanges and bridges 77.3 257.6 233.2 120.0 120.0 808.1Safety program 0.0 110.0 140.0 170.0 199.0 619.0

Road Maintenance 2,522.0 2,723.8 2,941.7 3,177.0 3,431.2 14,795.7Routine maintenance 1,221.0 1,318.7 1,424.2 1,538.1 1,661.2 7,163.2Periodic & special maintenance 1,261.0 1,361.9 1,470.8 1,588.5 1,715.6 7,397.8Emergency maintenance 40.0 43.2 '6.7 50.4 54.4 234.7

National Security Roads andNonprogrammed Projects 1,352.8 1,200.0 1,200.0 1,200.0 1,200.0 6,152.8

Administration 1,809.0 2,000.0 2,000.0 2,000.0 2,000.0 9,809.0

Total 9,739.8 10,525.1 11,437.2 12,604.7 12,415.5 56,722.3

Total Financing Plan (B million)Government sources 8,562.3 9,500.1 10,355.1 11,053.4 11,053.4 50,524.3Foreign sources lb 1,177.5 1,025.0 1,082.1 1,551.3 1,362.1 6,198.0

Total 9,739.8 10,525.1 11,437.2 12,604.7 12,415.5 56,722.3

/a Includes B 7,337.4 million of committed subprojects under the fifth plan. In addition,the sixth plan commits B 9,060.7 million for 1992 onwards.

/b Includes ongoing loans, and projected borrowing of US$200 million (B 5,400 millionapproved by the cabinet on April 7, 1987) for the highway sector to be obtained asfollows: FY88, World Bank US$50 million. FY89, other foreign sonrces US$100 million.FY90 World Bank US$50 million.

September 1987

THAkILAND

8ttl"'CK StcTOR POJCT\

Dn3I' l olop ent Plno 1981-

f en v prec WM- Total in5- olojt Total In-torn 1992 vpproved veatment.n fre 192 eteente

Proposed progrr Sth Plan 1987-91 onwrds 6th Plan 1987-91 F-peeted program 5th Plan 1987-91 onwvards 197-911487 198f I'34 1Q90 1991 (1) (2) (3 (2. (3) (I).(2) 197 I98 19 8 9 19 199 (1) (2) 0) (1)5(2)

ethabilitatIon and Recon-slruttiofl

OnRo0nR t,894.0. 982.1 lR9.7 .0n n.0 2.167.9 - - - 2.867.4 1,696.0 992.1 189.17 0.0 0. 2,47.8 - n.0 2.*87.8now projerta 77.01 890.5 2,079.6 2.679.8 2,550.0 - 8.277.0 549.0 8,826.0 8,277.n 77.0 890.5 2,079.6 2.679.8 2.550.0 - 8,277.0 s59.0 8,277.0

Subtotal 1,773.1 1,872.6 2.2bq.3 2.679.8 I.5S0.0 2.R67.8 8,277.0 31490 8.R26.0 11,144.8 t.773.1 I.A72.6 2.269.3 2.f79.P 2,550,0 2.867.S 8,277.0 549.0 tt,144.8

twprovnt of CongotRoad* I ItuttLtwn co.t.H

o1-Itlts 4b3.1 301.8 211.4 o.0 0.0 t,tt9.0 - - - 1.179.n 483.3 5n0.R 211.9 n.Q 0.0 1.17q.7 - 0.o 1,179.n8ev projects 70.n 607.5 1,583.5 1,990.0 1,494.0 - 5,745.0 2,186.0 7.931.0 5,745.0 70.0 303.8 1,029.3 1,711.4 1.494.0 - 4,608.4 3.322.6 4.608.6

Subtotal 533.3 1,111.3 1,795.4 1.990,0 1,494.0 t.179.0 5.745.0 2,t86.n 1,911.0 6,924.n 533.3 807.6 1,241.2 1.71t.4 1.494.0 t1,19.0 4,603.4 3,322.6 5,787.4

1to am to Otetw

0ngo409 1,391.4 1.020.7 236.1 37.0 30.0 2,726.4 - - - 2,726.6 ,793.4 1.020.7 238.3 37.0 39.0 2,726.4 - 0.0 2.728.4UV projecto 83.5 663.8 1.934.9 1.772.8 1.57t.0 - 6,030.0 1,833.0 7.863.0 6,030.0 85.5 265.5 870.7 1,241.0 1,147.0 - 3.657.7 4,205.3 3.657.7

Subtotel 1.476.9 IA84.5 2,17t.2 1.809.t t.614.0 2,726.4 6,010.0 1.831.0 7.663.0 6.756.4 1,676.9 t,286.2 t,tn7.0 1.278.0 1,234.n 2.726.4 3,b57.7 4.205.3 6.384.'

am Road Comatruction*IIaang Ltnta

OnRotnR 167.8 63.3 45.0 0.0 0.0 27b.1 - - - 27S.1 167.R 63.3 *5.0 0.0 o.A 276.1 0 n.o 778.1NW projecta 27.6 272.0 346.4 358.0 247.0 - 1.25S.0 398.0 t,649.0 1.251.0 27.6 204.0 259.8 268.5 185.3 - 945.2 703.9 945.2

Subtotal 19.4 3313.3 39t.4 3S8.0 247.0 276.1 1,25t.0 398.0 1.649.0 t,.27,t I15.4 267.3 304.8 26R.S 18S.3 276.1 945.Z 7ni,9 t.221.3

toterchapev a nd Bridge.Ontaonn rd 6S.3 109.8 113.2 0.0 0.0 288.1 - - - 268.1 8.5.3 109.6 113.2 °.° n.0 28f.1 - 0.0 2P8.tIew projects 12.0 148.0 120.0 120.0 120.0 - 520.0 280.0 800.0 520.0 12.0 148.0 120.0 120.0 120.n - 520.0 2R0.0 520,0

Subtotal 77.3 257.6 233.2 120.0 120.0 288.1 520.0 28n.0 800.0 808.1 77.3 257.6 213.2 i20.0 120.0 288.1 520.0 28O.n Rn8.1

Safety Progrin0,igninotn.0 00 Ox 0.0 0.0 n.0 - - - 0.0 0.0 0.0 n.n 0.0 O.n n.0 - n.o n.0New projects 0.0 110.0 140.0 170.0 199.0 - 619.0 0.0 619.0 619.0 0.0 110.0 140.0 17n.0 199.n - b19.0 0.0 bl9.n

Subtotal 0.0 1tO.0 140.0 170.0 199.0 0.0 619.0 0.0 619.0 619.0 0.0 11n.0 140.n 7n.00 199.0 o.n 619.0 0.0 619.0

TotalOngoing 3,r85.8 2,679.5 796.t 37.0 39.0 7,317.4 0. 0 O.0 0.0 7,337.4 3.785.8 2,b79.5 796.1 37.0 39.0 7.337.4 0.0 O.C 7,337.4mev protecto 270.2 2,691.8 6.704.4 7,090.6 6.185.0 0.0 22,442.0 5,246.0 27,688.0 22,442.0 270.2 1,921.8 4.499.4 6,190.7 5,745.3 0.0 18.627.3 9.060.7 18,627.3

Total 4.n06.0 5,371.3 7,0005 7.127,6 6.224.0 7,337.4 22,442.0 5,746.0 27.68R.0 29.779.4 4,056.0 4.601.3 5,295.5 6.227.7 5.784.3 7.337.4 18.627.3 9.06n.7 25,964.7

R*rch 1987

THAILAND

HIGHWAY SECTOR PROJECT

Construction/Improvement of Provincial RoadsFirst Year Construction Program /a

Cumn.1984 Const. const.

Std. Rd. Identifier Length Length ADT Prooosed cost lb cost IRRno. Dist. Route Sect Origin Destination (km) (VPD) (VPD) standard -- (B nmillon) -- (!)

_-010 31R 4111 0100 A.Khuan Niang B. Pak Cha 1t.2 11.2 344 F4 21.9 21.9 34.6423 3399 0101 J.R.3(B.Nong s1-1GA) B. Laen Sadet 27.7 38.9 293 F4 40.0 61.Q 30.4322 4124 0100 J.R.4(B.Nayong-Nua) A. Yantakhao 24.7 63.6 400 F4 52.0 113.9 30.0

E-033 614 2233 0100 A.Phon R. Tha Nang Naeo 42.8 106.4 332 F4 76.9 190.8 27.2

C-009 422 3245 0300 B.Chumhum Prokfa K.A.Nong Yal 32.0 138.4 294 P4 51.4 242.2 26.763R 2076 0200 B.Sompoinoi B.Muangmak 28.S 166.9 215 F4 47.3 289.5 2h.1323 4034 0400 Paknam Krabi R.Khao Thong 25.6 192.5 471 F4 47.0 336.5 2S.6

E-042 611 2285 0100 A.Pra Thai A.Chum Phuang 21.8 214.3 273 F4 43.3 379.8 23.7614 2199 0100 A.Chonnabot B.Donhan 24.0 238.3 477 F4 36.4 416.2 22.2515 1205 0100 B.Nong Khanak A.Wang Pong 24.0 262.3 209 F4 55.0 471.2 22.1

S-001 326 4038 0200 K.A.Lam Thap A.Thung Yat 26.9 289.2 307 F4 46.3 517.5 20.9612 24 0100 A.Sikhiu A.Chokchai 51.4 340.6 1,400 P2 176.3 693.8 20.0

E-04t 611 2067 0102 A.Nonsung A.Kham Sakae Saeng 19.5 360.1 23R F4 35.4 729.2 18.8611 2150 0100 A.Khansakaesaeng A.Khong 28.0 388.1 483 F4 15.4 744.6 18.8

N-009 535 1126 0200 A.Padaet B."uai Ngiu 29.7 417.8 219 F4 5h.9 803.5 1.6

N-016 522 1150 010I B.Ping Khong A.Phrao 30.3 448.1 215 P4 74.6 878.1 14.5435 2211 0100 J.R.21 (A.Sithep) R.2275 33.n 461.0 230 F4 30.0 908.1 14.0

/a Selected from the master list for Road Development Plan 1987-91.

/b Financial cost at early 1987 prices.

Source: Programming Section, Department of Highways.

March 1987 1 4

THAILAND

HIIGHWAY SECTOR PROJECT

Flrst-Year Rehabilitation Program ia

Curn.Clim. Average 198r lmproved Const const

Identifier Length Length deflect ADT level cost/d corst !RROtst. po,lte Sect Origin Destination From - To (km) (km) (mm)/b (VPD) /c -- (B inn) -- (7)

6I9 214 0801 Surin RT.24 (APrasat) n.0no - 29.41S 29.451 29.451 0.6684 4,961 8 76.8 7h.8 4S.1SIS 21 (JA0( R.Wang Chomphu Bypass Phetchahtin 200.OO - 222.700 22.700 52.151 0.2585 2,483 A 21.6 98.4 3f .i,632 214 00no Katasin B.Lam Chi 0.0nrl - 28.0nn 2.nr0 8f0.151 r.3149 1,S92 B 55.7 1S4.1 32.6331 4 2901 A.Khura Buri A.Takuapa 727.300 - 776.160 4A.8,8 129.)11 n.39S5 1,240 a 98.7 252.8 2R.,413 309 0100 Wang 1Noi Avutthava 0.0O0 - 7). 950 20.8S9 149.R61 0.4469 1,2Q7 C/B 5q.6 312.4 2h.6612 214 0200 B.Lam Chi Roiet 28.000 - 46.375 18.375 168.236 0.3149 1,064 B 39.6 349.n 24.;611 22Sk 0200 A.Chal Badan A.Dan Khun Thot 37.(00 - 79.085 38.nR5 2n6.321 0.830n 1,138 B/A 44.S 393.; 24.4416 3035 n30n Pathumthami A.Lai Lum Kaeo n.noo - 13.840 13.840 220.161 0.8778 3,144 B/A 49.9 443.4 24.4423 317 ol00 J.R.3 A.Pong Namron 7.n0n - 58.0n0 51.000 271.161 0.3896 2,474 1133.2 553.6 22.2411 3256 0300 SOT Onnut (Lat Krabang) Bang PIi 11.719 - 25.719 14.0n0 285.161 0.6283 5,603 C/B 306.R 660.4 21.8

la Selected from the master list for the Road Development Plan 1987-91./b Average deflection from Renkelman Beam Test.77 C Reconstruction. B - Rehabilitation. A - Overlay.7T Financial cost at 1987 prices.

Source: Programming Secti.n, Department of Highwavs.

March 1987

-46-

Table 4.3

THAILAND

HIGHWAY SECTOR PROJECT

Tentative Allocation of the Proposed Loan

BankApproximate cost participation

Items B mln US$ mln US$ mln %

Rehabilitation/strengthening and overlaysof paved roads /a 1,404.0 54.0 27.0 50

Improvement and paving ofprovincial roads /a 629.2 24.2 12.1 50

Safety programCivil works on hazardous locations 300.0 11.5 5.8 50Equipment 16.0/b 0.6 0.6 100Technical assistance 7.8 0.3/c - -

Equipment for testing materials andpavements and for auditing 16.0/b 0.6 0.6 100

Training program (buildings, equipment,experts) 52.1/b 2.0 2.0 100

Consultant services for phase II ofInterurban Bus Study, highway mainte-nance, data system and postevaluationcapability of MOC, and supervision ofworks 49.4 1.9 1.9 100

Total 2p474.4 95.1 50.0

/a DOR is seeking an additional UJS$50 million Bank loan in 1990, to supportthese programs and to use the Bank financing to rehabilitate a total ofabout 1200 km of paved roads and to pave some 800 km of provincial roads.

/b Possible financing by BITS and/or SIDA Sweden.

/c Excluding taxes.

Source: Department of Highways, Mission.

September 1987

-47-

Table 4.4

THAILAND

HIGHWAY SECTOR PROJECT

Road Safety Program - Summary of DOH's First Year Program

Road Bi- Pedes-improve- Traffic Guard cycle trian

Division ment signal /a rail lane bridge Total

Songkhla - 2 3 - - 5

Nakhonsithammarat 2 4 6 - - 12

Prachuapkhirikhan 1 2 4 - - 7

Bangkok 3 6 - - 6 15

Chachoengsao - 3 3 - 1 7

Lopburi 1 2 - - 3

Ph'.tsanolok - 3 13 - - 16

Chiangmai 2 2 16 - - 20

Phrae - 4 12 - - 16

Nakhonratchasima - 2 5 - - 7

Khon Kaen - 5 6 1 - 12

Ubonratchathani 3 - 5 - - 8

Total Number ofLocations 11 34 75 1 7 128

/a Including streetlighting.

Source: Department of Highways.

September 1987

-48-

Table 4.5

THAILAND

HIGHWAY SECTOR PROJECT

Tentative Program for Swedish Assistance tothe National Safety Council (NSC)

Aim: To develop data systems and research methods pertaining to roadtraffic accidents in Thailand and to set up a monitoring andevaluation system for safety intervention programs.

Methods: The Swedish Road and Traffic Research Institute (VTI) will assistthe NSC in developing an action program for 1988-91 and will trainand assist NSC personnel to execute the program. The program istentatively divided into seven activities, summarized below togetherwith the costs and a suggested timetable,

Estimated cost (SKr) Timetable

Preparation of deta4led action program 194,000 Jan.-Feb. 1988and program for education andtechnical assistance to NSC

Study visit to Sweden by the 93,000 Mar.-Apr. 1988Secretary General ef the NSC

Training course for NSC, DOH and 900,000 May -June 1988Police Department personnel

Technical assistance and 289,000 Nov.-Dec. 1988supervision of the program in Nov.-Dec. 1989Thailand Nov.-Dec. 1990

Fellowships for Thai university 300,000 1989, 1990, 1991postgraduate students inSweden

Final reports to BITS 90,000 Feb.1991

Seminar in Thailand 100,000 Mar.1991

Total Costs 1,966,000(US$302,000)

Source: Mission.

March 1987

-49-

Table 4.6

THAILAND

HIGHWAY SECTOR PROJECT

Summary of Proposed Training Program for DOR Staff, 1988-1990

Number of traineesSubject Level 1988 1989 1990

Training of trainers 3-8 230 175 175Training of specialists 4-6 15 - -Road maintenance management 7-8 50 25 25Road maintenance techniques 3-6 370 265 265Maintenance equipment operation - 50 25 25Highway safety 4-6 150 150 150Highway planning 3-6 50 50 50Highway design 3-6 45 45 45Highway construction 3-6 200 140 140Bridge construction 3-6 70 60 60Material engineer 3-7 100 80 80Structure design 3-6 55 55 55Surveying 3-5 80 25 25Equipment repairing 3-6 90 90 90Workshop management 4-7 90 60 60Management for district engineers 7 25 25 25Management for supervisors 5-8 320 240 240Revolving fund 3-6 1 0 150 150Computer application 3-8 75 50 50Statistics 3-4 30 30 30Finance administration 3-6 120 80 80Procurement administration 3-6 110 80 80Correspondence administration 3-4 80 80 80General administration 4-6 70 40 40Personnel administration 4-5 20 - -Right-of-way acquisition 3-6 60 60 60Behavioral science application 3-8 1,080 1,580 1,580Morality, regulation, discipline 3-8 830 1,580 1,580

Total Number of Trainees 4,615 5,240 5,240

Total number of courses 121 125 125Total number of course-weeks 189 185 185

Source: Training Division, Department of Highways.

March 1987

-50- Table 4.7

THAILAND

HIGHWAY SECTOR PROJECT

Tentative Cost of OH's Training Program, 1988-1990(Baht million)

Items 1988 1989 1990

Training facilities and equipment /aTraining facilities 1.89 28.20Training equipment 8.00 11.00

Experts /a 1.06 1.94

Invited lecturers 0.12 0.16 0.16

Local staff 3.00 3.50 4.50

Office equipment/materials 2.50 3.00 3.50

Meetings of committees 0.05 0.20 0.05

Development of curriculum 0.05 0.03

Evaluation of training 0.02 0.05 0.03

Lodging, transportation andallowances 12.00 14.00 16.00

Stationary materials and otheroperating costq 1.51 2.46 2.46

Total 30.11 64.54 26.70

/a Training facilities, equipment and experts would be partially financed bythe proposed Bank loan; the remainder would be financed by DO-'soperational budget.

Source: Mission.

September 1987

-51- Tahle 4.8

THAItLAND

HIGHWAY SECTOR PRO.JECT

Summary of Consultant Services to be Financed 11nder the Loan(Man-months)

Rstimateof consultants' input

Agency Subject Foreign Local Total Timing

MOC Improvement of transport data system 12 24 36 June-Dec. 1488

LTD intercity and rural bus tranqport 24 48 Tline 88-June 8

DOH Assistance to Maintenance Division toimplement TPMS 18 - 18

Highway supervlsion 36 72 108 Sept.88-Q1

Total 90 120 210

Source: Mission

March 1987

-52- Table 4.9

THAILAND

HIGIWAY SECTOR PROJECT

Tentative Procurement Arrangements(US$ million)

Procurement method TotalProject element ICB LCB Other /a N.A. cost

Road rehabilitation, 50.0 4.0 - - 54.0strengthening and (25.0) t2.0) (27.0)overlays

Improvement and paving 24.2 - - - 24.2of provincial roads (12.1) (12.1)

Road safety program - 11.5 0.6 0.3 12.4(5.8) (0.6) (6.4)

Equipment for - - 0.6 - 0.6pavement testing (0.6) (0.6)and for auditing

Training program - 1.9 0.1 - 2.0(1.9) (0.1) (2.0)

Consultant services - - 1.9 - 1.9(1.9) (1.9)

Total 74.2 17.4 3.2 0.3 95.1(37.1) (9.7) (3.2) - (50.0)

/a Includes international and local shopping and consultant services.

Note: Figures in parentheses are the respective amounts that would befinanced by the proposed Bank loan.

Source: Mission.

September 1987

-53-Table 4.10

THAILAND

HIGHWAY SECTOR PROJECT

Estimated Schedule of Disbursements(US$ million)

IBRD fiscal year Cumulative disbursementsat end of semester

1988

June 30, 1988 3.1

1989

December 31, 1988 8.o

June 30, 1989 17.2

199(

December 31, 1989 28.6

June 30, 1990 40.0

1991

December 31, 1990 48*0

June 30, 1991 50.0

Source: Mission estimates.

September 1987

-54- ANNEX ITable I

THAILAND

I1GHWAY SECTOR PRO.JECT

Action Program to Control Truck Overloading and To Improve Road Safety

Responsi- TargetActivity bility date Comments

Prepare action plan for implementing LTD February 1, IMR8 Consultant's finalthe recommendations of the truicking report due Octoberindustry studv 1987

Complete review of regulations on LTI/MOC Tune 30, 1988road vehicle weights /a

Legislative approval of revised Cabinetvehlcle weight regulations

Acquisition/installation of DOll Before Decemberadditional weight bridges 1990

Implementation of incentives to MOC/ATn/MoF January 30, 1989 Measures to be deter-increase the use of multbaxle trucks mined by MOC by Augustas per cabinet decision of n2/25/86 1, 1qR8

Transfer of registration and LTr) August 30, 1P88 Transfering act wasinspecttion of motorcvcles, cars and enacted July 23, 1987ligh- vehieles to LTD antd will be effecttve

on July 23, 1988.

/a A covenant under Loan 2311-TH.

Source: Land Transport Department.

September 1987

_55_ ANNEX ITable 2

THAILAND

HITGHWAY SECTOR PROJECT

Action Program to Complete Nationwide Implementation of TIMS

Activity Status Timing

General Activities- Development of TPMs Accomplished 1984-85- Demonstration of TPMs in Accomplished 1985

Ayutthaya district- Appoint a system manager on a full Accomplished May 1987

time basis- Appoint a pavement engineer for TPMs, Accomplished June 19R7

from the Materials and Research (2 engineers appointed)Division, at Maintenance Division HQ

- Appoint personnel and organize FSTs Accomplished Aug 1986- Appoint personnel and organi7.e FPET at Accompliqhed May 1987

headquarters (including paving testingunit)

- Set Up FELU at field divisions Personnel being Dee 1988trained

- Implement the road reference system Accomplished Aug 1986- Installation of computer terminals at Installation com-

12 Divisions pleted. Personnel June 1987being trained

- Installation of computer terminal June 1988at HQ Maintenance Division

- Full implementation of TPMS /a June 1989Annual Activities

- Training FST and FEII (1,900 staff) One week seminar Julyfor each division

- Field Survey by FST Oct-Jan

- Issue of Provisional prioritv list End of Jan- Revision by FEU and issue of firm End March

priority list- Testing by HQ (Central testing unit) lan-Dec- Allocation of budget Mid June

- Preparation of working plan June-July- Approval of working plan September- Implementation of plan Oct-Sept

/a Preparation of maintenance budget for FY 1990 to be based on full use ofTPMS

Source: DOH/Maintenance Dlvision

September 1987

-56- ANNEX 1

Table 3Page 1

THAIIAND

HIGHWAY SECTOR PROJECT

Action Program to Complete Implementation DOH's EquipmentRevolving Fund Nationwide

1. Restructure Organizational Chart /a January 1988

2. Formalize Organization April 1988

3. Personnel Assigned as Full Time Staff to September 1988Revolving Fund According to No. I above

4. TrainingPhase I : Start set up of four regional training centers June 19R8Phase II : Begin training local personnel as instructors June 1988

(Phase T and II to be developed concurrently)Phase Ill: Begin training of operational personnel July 1988

22 Sessions x 20 students/sessionx three months/session

Operational training of approximately 2,200 people, 440 in each of the followingdisciplines:

(a) Financial Accounting and Reporting Procedures (This system will be the onepresently being developed for the Revolving Fund as approved by DOH).

(b) Road Inventory based on their present Thailand Pavement Management System(TPMS).

(c) Manpower Planning directed at the district, division and workshop engineers.

(d) Equipment Inventory. Transfer of system developed for Revolving Fund to otherdistricts and divisions.

(e) Spare Parts Inventory and Control. This system will need to be designed forcomputerization with appropriate forms, codes, etc. being developed.

All of the above will structured on a local data base concept utilizingmicrocomputers linked . the DO computer center. (Same concept as used on theRevolving Fund.)

/a Organizational structure under management consideration.

ANNEX 1Table 3Page 2

5. Training Phase completed and implementation to December 1994total nationwide Revolving Fund System

6. Equipment Acquisition Schedule Revised according December 1989to Regional Equipment Inventory/Condition Survey Reports

7. Approval of performance budgeting formulas, policies and April 1988procedures

Annual ActivitiesInteragency review of administrative approvals Annual

Evaluation of fund objectives by Board of Managers Annually

Testing of total system, refinement of methodology, adjustment Continualin diagnostic procedures and formulation throughout

implementationprocess

Evaluation of equipment needs Annually

Source: Equipment Revolving Fund IJnit, DOH.

September . 1987

-58- ANNEX 1Table 4

THAILAND

HIGHWAY SECTOR PROJECT

Action Program for Improvement of DOH's Training System

1. Setting up Currictilum Development Committees May 1987 - Dec 1987

2. Setting up Training Assessment (Evaluation and Tan. 1988 - July 1988Follow-lip) Committeeq

3. Preparing terms of reference for assistance from .July 1987 (accomplished)University and experts

4. Local University Contract July 1988

5. Expert from Overseas July 1988

6. Reconditioning 2 Lecture Rooms and Training Feb. 1988 - Sept. 1988Division Office

7. Designing of Training, Administrative and Aug. 1987 - May 1988Lodging Buildings

8. Construction of Item 7 Jan. M89 - Dec. 1989

9. Improvement of existing training facilities and July 1938 - Dec. 1989provision (if equipment

10. Implementation of training Drogram. Emphasizing Starting FY88training of trainers, road maintenance management,road maintenance techniquie, highway safety,revolving fund and compuiter

Source: Training Division, Department of Highways.

September 1987

-59- ANNEX 2

THAILAND

HIGHWAY SECTOR PROJECT

ExamBle of Summary Data Sheet for Candidate Subproject

Road : 4124 0100

From : Ban Na Yong Nua

To : Amphoe Yan Ta Khao

Length : 24.7 km

Terrain : Flat and rolling agricultural land

Influence area : 135.7 km2

Population density : 181 persons/km2

Principal crops : Rubber, rice

Construction costs : B 51,246,020 (Financial)B 46,121,420 (Economic)

IRR : 28.6%

FYB : 14.1%

NPV : B 95,686,000

B/C 2.59

Existing con'3ition : Laterite road in fair/poor condition with 3 km ofSBST

Proposed standard : F4

Traffic : Existing: 347 ADT

Projected:1993: 657 ADT1998: 857 ADT2003: 1,120 ADT

Alternative conditions: The study road follows a good existing alignment andno alternative is proposed.

Recommendations : For immediate construction.

-6')-ANNEX 3

THAILAND

HIGHWAY SECTOR PROJECT

Selected Documents and Data Available in the Project File

- Facts and figures; Department of Highways, November 19f!6.

- Master list for Road Development Plan 1987-91; Department of Highways,February 1986.

- Training activities at Department of Highways, Thailand; Dr. SomchobChaiyavej, November 1986.

- Evaluation/Preparation of DOH's training activities; Dr. Somchob Chaiyavej,April 1987.

- Study of trucking industry, Phase II, draft final report, Kampsax, February1987.

- Consolidation of the Management System and Organization of the RevolvingFund for Plant and Vehicles; L. Berger in association with Coopers andLybrand Associates and Asian Engineering Consultants Corp; September 1986.

- List of Safety Program for 1988; Department of Highways, March 1987.

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