Thailand - Fourth Highway Project

RESTRICTED FILE COPY Report No. P-718 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE KINGDOM OF THAILAND FOR A FOURTH NATIONAL HIGHWAY PROJECT June 4, 1969  INTE10TATIONAL BANK FOR RECONSTRUCTION AND DEVELOP'4ITT REPORT A\D RECOT-7TIDATION OF TTIE PRESIDFI\TT TO THE ECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE KINGDOWT OF THAILAND FOR A FOURTH NATIONAL HIGHWIAY PROJEC T 1. I submit the following report and recommendation on a proposed loan in an amount in various currencies equivalent to U.S. p23 million to the Kingdom of Thailand. PART I - HISTORICAL 2. Of the nineteen loans which the Bank has made to Thailand, eight have been for transportation. Two loans were for port development, three for railway improvement and expansion; and three loans, totaling $90 million equivalent, were for highway projects. The First Highwqay Project loan, (3)il-TH) for $21.8 million (net of cancellations) was made in 1963 and has been fully disbursed. The Second Highway Project loan, (455-TH) for $36 million was made in 1966; construction is more than 50$ complete and is proceeding on schedule. The Third Highway Project loan, (535-TH) for $29 million was made in JHay, 1968. Contracts have been awarded for all the construction works, which are proceeding well, and the training program of the technical staff of the Department of Highways is being negotiated with institutions in Europe and the UJnited State. Each of the Bank loans has included feasibility and engineering studies of roads for subsequent projects; thus two of the highways to be constructed under the proposed loan have been investigated and engineered under one or more of the previous loans, while the third higihway was studied and engineered