2 2 i~~~~~ i *S 218 En vironnmen tal Sector Strategy Note Thailand Building Partnerships for Environmental and Natural Resources Management Miiiistrv of Scienice Environment and Social Techlnology ancd the Developmnent Sector Unit and Environment Tlhailand Country Managemtient Unit Roval Thai Government East Asia and Pacific Region Thailand The World Bank (1999 The International Bank for Reconstruction and Development/THE WORLD BANK 18 18 H Street. N.W.. Washington, D.C. 20433. U.S.A. Manufiactured in the United States of America First Printing September 1999 The findings, interpretations. and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organiza- tions or to members of its Board of Executive Directors or the countries they represent. The maps that accompany the text have been prepared solely for the convenience of the reader: the designations and presentation of material in them do not imply the expression of' any opinion whatsoever on the part of the World Bank, its affiliates, or its Board or member countries con- cerning the legal status of any country. territory. city. or area. or of the authorities thereof, or concernin- the delimitation of its boundaries or its national alffiliation. >Printed on Recycled Paper This Strategy Note was written by Manish Bapna (ENV), Giovanna Dore. Patchamuthu Illangovan, Task Team Leader (EASES), Benoit Laplante (DECRG), Louise Scura (EASRD). Jitu Shah (SASEN), and Manida Unkulvasapaul (EACTF). in collaboration with Sunthad Somchevita. Permanent Secretary. and Sirithan Parirojbariboon, Deputy Permanent Secretary, of the Ministry of Science. Technology and the Environment of Thailand. Peer review was provided by Stephen F. Lintner (ENV). Michele de Nevers (ECSES) and David Wheeler (DECRG). Cover design: Beni Chibber-Rao Cover photographs: Stephen F. Lintncr Maps: Jeffrey N. Lecksell Editing and Layout: Katherin G. Golitzen Contents Foreword .............................................................v Abbreviations and Acronyms ............................................................ vi Acknowledgements ............................................................ viii Executive Summary ............................................................ ix Introduction .............................................................1 1. A Changing Economic and Environmental Context .............................................3 2. Policy and Institutional Framework ............................................................. 11 3. Overview of the Environment-Trends, Responses and Challenges ................. 14 Forests and Watersheds ............................................................. 14 Water Resources ............................................................. 16 Coastal Resources ............................................................ 18 Land ............................................................ 20 Air Quality ............................................................. 21 Solid and Hazardous Wastes ............................................................ 24 Transboundary Issues ............................................................ 25 4. Setting Priorities ............................................................ 29 Framework ............................................................ 29 Analysis for Selecting Priorities for World Bank Assistance ................................ 37 a. Proposed Strategy-The Five Strategic Themes .................................................. 38 Track I: Functional Improvements ............................................................ 38 Strategic Theme 1: Environmental Governance ............................................... 38 Strategic Theme 2: Environmental Financing ................................................... 41 Strategic Theme 3: Community Involvement ................................................... 43 Track II: Priority Investments ............................................................ 44 Strategic Theme 4: Air Quality and Waste Management in Bangkok .............. 44 Strategic Theme 5: Water Management of the Chao Phraya River Basin ........ 46 6. Proposed Government-World Bank Program ..................................................... 48 Collaboration in Environment and Natural Resources .......................................... 48 Framework for Benchmarking Progress ..................................... 48 Annex A. World Bank Involvement in Thailand . .................................... 51 iii Annex B. Institutional Structure for Environment ................................................... 53 Annex C. Environmental Legislation ...................................................... 54 Annex D. Environmental Protection Budget by Ministry 1996-1998 ..................... 56 Annex E. International Assistance in the Environment Sector ................................ 57 Figures Figure I. Net Benefits for Urban Sanitation and Water Pollution Controls Figure 2. Net Benefits of Air Pollution Control Figure 3. Forest Cover in Thailand (1982-1998) Figure 4. Quality of Surface Water in Thailand Figure 5. Annual Catch and Production of Fish (1984-1998) Figure 6. Mangrove Forest Area (1979-1996) Figure 7. Lead Pollution in Bangkok (1988-1997) Boxes Box I. The Environmental Implications of the Economic Crisis in East Asia Box 2. Policy and Perspective Plan for Enhancement and Conservation of National Environmental Quality - 1997-2016 Box 3. Overview of Environment and Natural Resource Functions in the RTG Box 4. The Three Waves in Enforcement and Compliance Tables Table 1. Budget Allocation for Environmental Protection 1996-1998 Table 2. Priority Environmental Trends Table 3. Proposed Government-World Bank Collaboration in Environment and Natural Resources Table E-I. Donor Activities in the Environmental Sector Table E-2. Ongoing Donor-Assisted Projects Charts Chart 1. Overview of Environmental Trends and Responses Chart 2. Proposed World Bank Activities Reform Chart 1. Water Quality Degradation Reform Chart 2. Water Scarcity Reform Chart 3. Air Quality Reform Chart 4. Loss of Critical Habitat Reform Chart 5. Watershed Degradation Reform Chart 6. Declining Marine and Freshwater Resources Reform Chart 7. Land Degradation Maps IBRD No. 30425 Thailand - Urban Centers, Protected Areas and Population IBRD No. 30415 Thailand - Urban Centers, Protected Areas and Topography IBRD No. 30416 Thailand - Environmentally Sensitive Areas and Hot Spots il Foreword Thailand's abundant and diverse agement of Thailand's environment and natural resources have sustained its natural resources and to identify priority people for many centuries and formed areas for possible World Bank assis- the backbone of its prosperity over the tance. It is a result of the ongoing dia- last thirty years. However, economic logue between the Ministry of Science. expansion was accompanied by serious Technology, and Environment and the environmental costs. As the country World Bank in consultation with other moves forward into the new millennium, key stakeholders in Thailand-elected it faces three major environmental chal- representatives, government officials, lenges. First, to maintain and enhance local communities, and donor agencies. investments that will improve the envi- The strategy outlined herein is intended ronment of Bangkok and other urban ar- to be dynamic, and one that will evolve eas through reductions in air, water, and with every passing year, as Thailand re- solid waste pollution. Second, to achieve covers from the crisis and addresses the a sustainable level of natural resource relationship between economic growth use and reverse the present degradation and protection of its natural resources of its forests, marine ecosystems and and environment. watersheds. Third, to harness the impe- We commend the spirit of participation tus for change that has emerged from and collaborative efforts that resulted in both the new constitution and the recent the swift yet comprehensive develop- crisis, and to promote opportunities for ment of a strategy to promote environ- local community involvement and par- ticipation in environmental protection. mental protection and susta.nable re- source use in Thailand. This document lays out a strategic framework to translate into action Gov- ernmentnolicyonprotection and man- His Excellency Arthit Ourairat Jayasankar Shivakumar Minister of Science, Technology and Environment Country Director - Thailand Roval Thai Government The World Bank Sunthad Somehevita Kristalina Georgieva Permanent Secretary Sector Director. Environment and Social Ministry of Science, Technology and Environment Development. The W torld Bank Abbreviations and Acronyms ADB Asian Development Bank AIT Asian Institute of Technology ASEP ASEAN Environment Program ASEAN Association of South East Asian Nations AusAid Australian Agency for International Development ASEM Asia Europe Meeting BMA Bangkok Metropolitan Administration BMR Bangkok Metropolitan Region BoB Bureau of Budget CAS Country Assistance Strategy CIDA Canadian Intemational Development Agency CIM Canadian Institute of Mining, Metallurgy and Petroleum DANCED Danish Cooperation for Environment and Development DFID Department for International Development of the United Kingdom DEDP Department of Energy Development and Promotion DEQP Department of Environmental Quality and Promotion DIW Department of Industrial Works DLD Department of Land Development DOLA Department of Local Administration DSM Demand-Side Management DSMO Demand-Side Management Office ECF Energy Conservation Promotion Fund EF Environment Fund EGAT Electricity Generating Authority of Thailand EIA Environmental Impact Assessment EIDP Environmental Institutions Development Project (proposed) ESCAP Economic and Social Council for Asia and Pacific ESCO Energy Service Companies EPZ Environmental Protection Zone EU European Union FCCC Framework Convention on Climate Change GEF Global Environment Facility GSB Government Savings Bank GTZ Gesellschaft fur Technische Zusammenarbeit (German Technical Co- operation Agency) ISO International Organization for Standardization IUCN World Conservation Union JICA Japan Intemational Cooperation Agency li LDD Land Development Department MBI Market-Based Instruments MoAC Ministry of Agriculture and Cooperatives MoF Ministry of Finance Molnd Ministry of Industry MoInt Ministry of Interior MoSTE Ministry of Science, Technology, and the Environment MoTC Ministry of Transport and Communication MoUA Ministry of University Affairs MP Montreal Protocol MPA Marine Protected Area MWA Metropolitan Water Agency NEB National Environment Board NEQA National Environmental Quality Act NESDB National Economic and Social Development Board NGO Nongovernmental Organization OCSC Office of the Civil Service Commission ODS Ozone Depleting Substances ODP Ozone Depleting Potential OECF Overseas Economic Cooperation Fund of Japan OEPP Office of Environmental Policy and Planning OPM Office of the Prime Minister PCD Pollution Control Department PEAP Provincial Environmental Action Plan PM1o Particulate Matter under 10 microns PSRL Public Sector Reform Loan (proposed) PWA Provincial Waterworks Authority RFD Royal Forestry Department RTG Royal Thai Government Sida Swedish International Development Agency SME Small and Medium Enterprises SSPR Structural and Social Policies Review TA Technical Assistance TSP Total Suspended Particulates UNIDO United Nations Industrial Development Organization USAID United States Agency for International Development WWF Worldwide Fund for Nature CURRENCY EQUIVALENT (As of April 26, 1999) Currency Unit = baht $1 .00 =36 baht WEIGHTS AND MEASURES I rai = 0.16 hectare. vii Acknowledgements T- | Ahe task team expresses its The team received valuable guidance appreciation to its counterparts from Ms. Kristalina Georgieva, Sector and numerous individuals in Director, East Asia Environment and Thailand for their cooperation and Social Development Unit, EASES, and invaluable advice in the preparation of Mr. Jayasankar Shivakumar, Country this Strategy Note. In particular, the task Director, Thailand. The team expresses team wishes to thank His Excellency Khun its appreciation to the following Suwit Khunkitti, former Minister of colleagues at the World Bank for MoSTE, and MessrslMmes.: Sunthad reviewing and commenting on earlier Somchevita, Permanent Secretary, drafts of the Strategy Note: Messrs./ MoSTE; Sirithan Parirojbariboon, Mmes.: Glenn Morgan; Stephen F. Deputy Permanent Secretary, MoSTE; Lintner, David Hanrahan, and Gordon Saksit Tridech, Director General, Hughes; Tom Tsui; Ijaz Nabi; Ramesh Pollution Control Department; Ramankutty; Sudhir Shetty; and Dana Chalermsak Wanichsombat, Director Weist and Elisabetta Cappanelli. General, Department of Environmental The team's activities in Bangkok Quality and Promotion- Wanee were coordinated by Messrs./Mmes.: Samphantharak, Deputy Secretary Chittrakarn Bunchandran, Kanchalika General. OEPP AmponKittiampKlad-Angkul and Ampal Harakunarak. Assistant Permanent Secretary, MoAC; Ma ,>, . - , ~~~~~Ms. Pamornrat Tansanguanwong Issra Shoatburakarn, Director, and o c w Saman Tungtongtawee, Environmental ocie d parianta Ms. Specialist of the Department of Industrial socaety and parlamentareans. Ms. Works; and Professor Tongroj Onchan, athered the t ext President, Thailand Environment Institute. and prepared the layout. Mr. William Gillen provided editorial assistance. Messrs. Rolf Suelzer, Director, GTZ, Ali Azimi of ADB, and represen- tatives of DANCED and the Canadian Embassy in Bangkok provided useful information on their ongoing activities in Thailand. * iii Executive Summary T 8 hailand's rapid economic growth Thailand to negate some of the earlier over the last three decades has gains. The impacts of the financial crisis produced impressive achieve- on the environment are complex. On the ments in people's welfare-increased positive side, the industrial downtum and income, reduced infant mortality, im- reduction in consumption levels lead to proved life expectancy at birth, in- less air pollution and a decrease in creased literacy, and expanded em- wastewater discharge and waste disposal. ployment opportunities. However, this On the negative side, the financial con- economic expansion has been accom- straints of private and public sector com- panied by substantial environmental panies have forced industrial and mu- costs. Nearly 50 percent of the forest nicipal treatment facilities to cut back cover was lost, approximately 37 per- operations. The situation may be further cent of surface water is considered un- exacerbated by delayed investment in suitable for human consumption or ag- capital renewal and cleaner technologies ricultural use, and particulate matter during the crisis. While the precise im- (both TSP and PM,() constantly ex- pacts of the economic crisis on the envi- ceeds ambient standards. The Govern- ronment remain to be fully evaluated, ment and local communities have un- budgetary allocations, especially for dertaken several initiatives to address pollution abatement. energy conserva- these mounting environmental prob- tion, and protected areas management, lems. These include: establishing a le- have been signi'icantly reduced. gal and institutional framework for en- The World Bank's Country Assis- vironmental governance, preparing a tance Strateay (CAS) of 1998 sets out a 20-year action plan, phasing out leaded medium-term development framework gasoline, improving energy efficiency, for Thailand. The CAS articulates three nvestine In water Thailanon abatement . . ,nvetnginwterpollution abcritical elements that are required to re- and declaring a larger number of areas vtni as protected. vive grwh elwn cnpnltles a timproving governance and slharinig The economic crisis now threatens to growth t and entsurinzg quality of lift. It cut short efforts to improve environ- further suggests that sustainable recovery mental conditions and may even cause is possible only if adequate attention is ix X Th2ailand Environment Sector StrategY Note: Building Partnerships given to preserving the environment will lead, direct and coordinate imple- through better management of natural re- mentation of the strategy. sources, effective enforcement of regula- tions, and implementation of prudent KEY CHALLENGES taxation policies. This provides a win- dow of opportunity to re-examine the An overview of environmental trends relationship between growth and the en- and responses is summarized in Chart 1. vironment, and set the foundation for a From an assessment of these trends, the more holistic and proactive approach to following emerge as the major environ- conservation and management. mental and natural resource challenges facing Thailand today: SCOPE * Restrutctutring institutions: The The purpose of the Environmental protection and management of Sector Strategy Note is threefold: (i) to natural resources and other envi- promote dialogue and build partner- ships with the Government, local across many ministries. Public in- stitutions are highly segmented communities, civiI societv, donor agen- w l cdt a cies, and the private sector on the major them. This results in overlapping natural resource and environmental functions and responsibilities. A challenges facing Thailand today; broad consensus is emerging to re- (ii) to provide a framework for World ad seamlIn ese institu- Bank involvement in this crucial sec- tor; and (iii) to contribute to the Struc- tional arrangements. tural and Social Policies Review * Eiforcing environmental regutla- (SSPR) currently under preparation. tions: The implementation of The Ministry of Science, Technol- regulatory measures has suffered ogy, and the Environment (MoSTE). from weak monitoring and en- the Ministry of Agriculture and Coop- forcement. Existing command-and- eratives (MoAC), and the Department control measures have not been of Industrial Works (DIW) are the main particularly effective, and efforts counterparts for this effort. The Strat- are underway to introduce market- egy Note is the outcome of desk and based instruments (MBIs). In addi- field reviews and extensive consulta- tion to providing icentives, such tion undertaken over a three-month pe- instruments will also improve firms' compliance with environ- rnod. It has directly benefited from pre- vious and ongoing studies of the World mental standards. Rising commu- Bank and other donor agencies. The m nity pressure to ensure compliance Bank and other donor agencies, Theintepvaesco,ndhenr- Strategy Note elaborates upon and rein- in the private sector, and the intro- forces the environmental objectives duction of public disclosure tools specified in Thalland's Eighth National Economic and Social Development * Managing water resources anid im- Plan (1997-2001) and the above- proving water quality: Water scar- mentioned CAS. An abridged version city is becoming a critical problem of the Strategy Note has been provided in major river basins. One third of to the counterparts, and national con- surface water bodies are of low sultation is currently taking place. The quality, including the lower reaches complete Strategy Note will be jointly of the Chao Phraya and Thachine published in English and Thai. MoSTE rivers. Increased volumes of mu- Executive Sliin(1atnwrv xi nicipal and industrial waste are the Salinization is also a severe prob- main culprits. The separation of lem in the northeast and in the wastewater management from wa- south along the coast. ter supply as a municipal service function in the Bangkok Metro- * Thiproing coastal zone manage- L_ n~~~~iecut: Marine fisheries have be- politan Region (BMR) and a lack of cost-recovery in water supply come heavily depleted over the and quality improvements impede past twenty years as observed from and qulity mproveents mpedea sianificant reduction in fishing public and private sector invest- ments in wastewater management. yield. Reliance on coastal aquac- Watershed management remains a ulture and freshwater fish culture Watershd managment reains ahas increased dramatically during planning principle that has not been ths imce.ase dresuti of drpid effectively translated into action. this time. As a result of rapid coastal development, almost half *Improvinig air qutalityl in Bangkok: the mangrove forest area has been While progress has been made in lost. reducing atmospheric lead, rising ozone and hydrocarbon concentra- Maagig solid a laaclos tions and particulate matter con- waste: A comprehensive national tinue to be problematic. Poor air program is needed to address the tinu to e prblemtic.Poorairworsening, problems of solid and quality could undermine the com- rouse wst pro duction and petitiveness of Bangkok as an at- hazardous waste productwon and tractive regional investment center. disposal m cities, towns and indus- Thus, sustained and increased in- trial locations in an environmen- vestments need to be made in fuel tally sound and cost-effective man- quality improvements, inspection ner. and maintenance of vehicles, trans- * Planning the development of sec- port planning, and the enforcement ondarn cities: Phuket and Chiang- of tighter vehicle emissions stan- mai are beginning to experience dards. major environmental problems be- cause inadequate consideration was Imhproving the management of protected areas and accelerating given to environmental aspects in reforestation efforts: Although de- physical planning and provision of forestation has slowed down sigy- infrastructure. The growth of these nificantly in recent years, refores- and other cities should be guided tation remains well below target by sound environmental planning levels. Large losses of dryland for- principles. ests, coastal mangroves and wet- lands have contributed to declines in biodiversity. While significant additions to the protected area sys- tem are proposed, existing areas suffer from a lack of management resources. * Arresting soil erosion: Land degra- dation, in particular soil erosion, impacts close to half the country's land, and is especially problematic in the country's upland areas. xii Tlhailaeidl Envir-onment Sector Strategy Note: Building Partne-rsl/ip)s Chart 1: Overview of Issue Overall Trend Severity _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Declining water quality in Chao High . 37% of surface water bodies classified as low quality, Phraya including Chao Phraya and Thachine Increasing water scarcity High * Per capita consumption doubled * Water scarcity increasing, worse in dry periods Declining air quality in BMR High * Ambient levels of lead, SO., NO, and CO reduced significantly * PMlo, TSP, ozone and HC exceed standards Loss of critical habitats High * Significant losses reported * About 100 species of plants classified as endan- gered; 900 considered rare and vulnerable Watershed degradation Medium . Increase in soil erosion and downstream sedimenta- tion Declining marine and fresh- Medium . Significant reduction in catch per unit effort over 20 water resources years * 50% reduction in mangroves between 1961-1993 Land degradation Medium * Increasing soil erosion in upland areas * Salinization on southern coast Increasing solid and hazardous Medium * Per capita urban household waste generation 0.5-1 waste kg/day * Industrial units in BMR generated 2 M tons of haz- ardous waste in 1997 Declining forest cover Low . Total forest cover declined from 53% of total land area in 1961 to 25% in 1998. * Rate of deforestation slowed from 0.9%/./year, pre- 1989, to 0.2%/yr between 1995-1998. Executive Sienunaurv xiii Environmental Trends and Responses Causes and Relative Response Donor Contribution* Activities * Domestic sewage (H) * $550M committed for wastewater collection ADB; AusAid; * Industrial effluent (H) / treatment in Bangkok metropolis in 1998 DANCED * Agricultural runoff (H) . Pollution discharge standards introduced * Irrigation (H) . Policy, institutional and regulatory frame- ADB: CIM; DANCED * Domestic (M) work for integrated water resources man- . Industrial (M) agement completed * Drought (L) * Comprehensive water management strat- egy completed * Transport (H) * Unleaded gasoline introduced DANCED; GTZ; * Industry (M) . Improvements in traffic management NEDO; Sida; World * Power (M) * Mass transit Bank * Indoor air pollutants (L) . Dust control measures * Garbage burning (L) * Revisions to regulatory enforcement * Deforestation (H) * Extended and representative protected AusAid; BDW; BGR; * Pollution (H) area system established (50 M rai), cover- CIDA * Fishing practices (H) ing 16% of total land area * Economic incentives (M) * Poaching (M) * Land use planning/ * Watersheds have been classified and BDW; BGR; CIDA; management (H) mapped DANCED; JICA: NIDO; e Land conversion for agri- * Intended land use specified and regulated World Bank culture (H) * Encroachment in uplands (M) * Land tenure (M) * Effluents and agricultural * Programs developed for sustainable CIDA; DANCED: DFID runoff (H) aquaculture and marine fisheries manage- * Fishing practices (H) ment * Mangrove conversion (M) * Targets established for mangrove refores- tation and conservation * Land conversion for agri- * Improvements in land use management / AusAid; CIM; JICA culture (H) planning * Soil erosion (H) . Forest encroachment reduced by desig- * Land tenure (H) nating appropriate areas for agriculture * Salinization (M) * Pilot soil conservation projects * Industry (H) * Improvements in garbage collection ADS: BGR; CIM; * Households (H) * Pollution prevention techniques introduced DANCED; EU; GTZ; for hazardous waste JICA: USAID * Sanitary landfills and treatment facilities * Logging (H) * Established forest classification AusAid; DANCED; * Protected areas man- * Reforestation targets set at 40% of land JICA; World Bank agement policies (H) area * Encroachment (L) . Investments in 1996 - as a percent of GDP * Inundation (L) * H = High; M = Medium; L = Low xiv Thiailanid Environ,Jnenit Sector Strategy Note: Buildinig Partnierships PRIORITIES FOR WORLD compliance mechanism, supporting de- BANK ASSISTANCE centralization by making the Provincial Environmental Action Plan (PEAP) Priorities for World Bank assistance process more effective, and building .. ' . ~~~~technical, mana-erial and analytical have been identified through extensive t yt consultations with the Royal Thai Gov- capacity; ( i) Improving the ernment (RTG) and other partners, and sustainability of ei'ironmnenral also through review of relevant analyti- laacwing by transforming the Environ- ment Fund into a revolving mechanism, cal work from previous World Bank supporting the creation of MBIs for and non-World Bank studies. A five- improved pollution management, and step approach has been adopted. The i c m . 1 m~~itroducin,g cost-recovery measures for first step assesses the key first ste assesse the key environmental services; and (iii) en- environmental and natural resource encint services for coii)nit- trends and their causes. Necessary hancing opportunities for community reforms are identifiedithinvolvement by supporting communi- reforms are identified in the secondtieinmponghirlclnvon step. The third step defines the ties in improving their local environ- objectives and scope of collaboration ment, promoting environmental aware- between the Government and the ness through information dissemina- tion, and improving disclosure of envi- World Bank, which serves as the basis rlonena inform atovn to the gfenerl for analyzing and identifying prlorities publc. for World Bank assistance in the fourth pubhc. step. The final step lays out the The strategy recommends that pri- proposed World Bank assistance oritv plhvsical investments be made in strao . Banokok and the Chao Phraya River l1e proposed strategy consists of y. two tracks: (i)functional imiprovemeents Basin. This includes: and (ii) prioritvy investnents. It is in- * Providing assistance to the Bang- tended that each track support the kok Metropolitan Administration other; for example, some institutional (BMA) area to improve its envi- reforms will strengthen Government ronmental quality through targeted capacity to implement an investment investments, policy reforms, and project more effectively. As manifested capacity building to control air and in the Chao Phraya River Basin and in water pollution. This support Bangkok, environmental problems re- would consist of two proposed main a priority because of complicated lending operations as well as non- and weak institutional arrangements lending advisory services. and structures. The specific elements of the strategy are therefore inter- u r dependent. Tackling these challenges management program in the Chao together will result in greater likelihood Phraya Basin through enhance- of a successful outcome. ments in the legal and regulatory framework for water management; With regard to functional ilm- establishment of a dedicated river provemen7ts, the strategy identifies three basin organization to plan and im- areas of institutional and policy re- plement sound policies and invest- forms: (i) strengthening environznenital ments; improvement in the man- governance through restructuring and agement and administrative capa- reengineering the environmental agen- city of key water agencies; and pri- cies to improve functional efficiency, ority investments in irrigation in- strengthening the enforcement and Executive Summarn xv frastructure and remedial works on are summarized below in Chart 2. dams at risk of failure. Some of the operations will be cofi- Actilvities identified for World nanced with other donors. OECF has Bactinvitiesment ifluded for World- formally committed its participation for Bonk invoflveent inclrudentacomina- the proposed operations in Bangkok. tion of lending instruments, non- The non-lending advisory services will lending advisory services. and grants through the Montreal Protocol and improve skills, knowledge and exper- through the Montreal Protocol and s Global Environment Facility to meet ise. global environmental objectives. These Chart 2. Proposed World Bank Activities Strategic Themes Proposed World Bank Involvement (2000-2002) Lending Operations Non-lending Advisory Services Environmental Proposed Public Sector Reform Seminars and workshops on al- Governance Loan (PSRL) ternative institutional models and Proposed Environmental Institu- decentralization tions Development Project (EIDP) Environmental Re-capitalization of the Environ- Design of an effective pollution Financing ment Fund within the context of charge scheme PSRL Developing financing mecha- nisms for local environmental services and cost-recovery Community Possible expansion of the scope ASEM-funded technical assis- Participation of the Social Investment Project tance for community-based envi- ronmental initiatives in four urban centers Priority Investments: Bangkok Urban Proposed Bangkok Air Quality Environment Management Project; and Program Proposed Bangkok Waste Management Project Chao Phraya River Proposed Natural Resources Basin Management Management Project Introduction T he purpose of the Environmental lyzes environmental trends and priori- Sector Strategy Note is to pro- ties in the green, blue, and brown agen- mote dialogue and build partner- das. Section 4 presents emerging chal- ships with the Government, local lenges and the approach used in setting communities, civil society, donor agen- priorities for World Bank involvement. cies, and the private sector on the major Section 5 describes a proposed envi- natural resource and environmental ronmental strategy that includes poten- challenges facing Thailand today. Un- tial World Bank operations. Section 6 like some other donors, the World offers a framework for benchmarking Bank has had limited presence in the progress. environmental arena in Thailand (see The preparation of the Strategy Annexes A and E) and therefore an un- derlyincg objective of the dialogue is to Note is based on desk and field reviews deryin obectveof he ialgu ito over a three month period and is in- set the stage for longer-term collabora- tended to offer a simple, practical ap- tion in environmental management and p t d planning. This Strategy Note sets out a ran thedenviromentwtal bresodrne framework for World Bank involve- and the environment with a broad range framework for World Bank involve- of stakeholders. and to developing a ment in the sector in the immediate to medium term. It elaborates upon and strategy for World Bank assistance. reinforces the environmental objectives Strategy Note has benefited di- rectly from ongoing work by the World specified in Thailand's Eighth National Bakiprainasstcetaegs Economic and Social Development Plan (1997-2001) and the World in the rural development and urban Bank's 1998 Country Assistance Strat- transport sectors and from discussions egy (CAS). The Strategy Note is organized in six sections. Section I provides a brief introduction to the changing economic I The World Bank is concurrently de- and environmental context, and Section veloping a Rural Del elopnient Strat- 2 describes the policy and institutional egy and Urbani Transport Strategy for Thailand, soon to be completed. framework in Thailand. Section 3 ana- l 2 Tlailcand Environnment Sector Strategy Note: Buildlinig Partnershlips with other multilateral agencies2 and bilateral donors. The Ministry of Sci- ence, Technology, and the Environ- ment (MoSTE), the Ministry of Agri- culture and Cooperatives (MoAC), and the Department of Industrial Works (DIW) are the principal counterparts for the Royal Thai Government (RTG). In preparing this Strategy Note a participatory approach has been fol- lowed. An initial stakeholder consulta- tion chaired by MoSTE was held in January 1999; thereafter consultations have been held with the Minister, Per- manent Secretary and senior staff of MoSTE, its environmental agencies and other national agencies. An abridged version of the Strategy Note has been provided to the counterparts, and MoSTE is leading the national consultation that is currently taking place. The Strategy Note will be jointly published in English and Thai. MoSTE will lead, direct and coordinate imple- mentation of the strategy. 2 The ADB has recently completed an iEnvironment Profile of Thailand" that comprehensively describes the envi- ronmental context and challenges. A 'Changing Economic and Environmental Context T nhree decades of exceptiontal nificant gaps in the Government's so- growthz. The performance of cial safety nets. Thailand's economic Thailand's economy was re- development also resulted in very large markable in the three decades prior to environmental costs. Forest cover was 1997. Between 1965 and 1980, growth reduced from 53 percent in 1961 to 25 averaged 7.3 percent annually; this ac- percent in 1998.4 Approximately 37 celerated to 7.8 percent during 1980- percent of surface water has been as- 1995-roughly twice the growth rates sessed as of low quality (unsuitable for of other low- and middle-income devel- human consumption or agricultural oping countries. Per capita GDP more use).5 Total suspended particulates than tripled. The number of Thai citi- (TSP) and particulate matter under 10 zens living below a poverty line of $2 microns (PMIO) constantly exceed am- per day fell from 42 million to 16 mil- bient standards in Bangkok.6 The de- lion between 1975 and 1992. This rapid struction of forests increases the risk of and sustained economic growth also erosion, floods, and elimination of produced impressive achievements in natural habitats; water pollution threat- people's welfare-with reduced infant ens health and fisheries, and precipi- mortality, improved life expectancy at tates depletion of underground water birth, increased literacy and expanded resources, congestion and pollution in employment opportunities.3 cities affect human health, and acceler- Poverty and environmental degrada- ate the deterioration of infrastructure. tion persist. Despite the important re- duction in absolute poverty, the bene- fits of growth were not shared equita- bly. This masked continued poverty in large segments of Thai society, a wid- ening inequality of incomes and sig- 4 Environmental Statistics of Thailand 1998. National Statistic Office. Office of the Prime Minister. 3 See Couwtry Assistantce Strategytor 5 Ibid. Tlhatilaniid. June 1998. for more details. 6 Pollution Control Department reports. 3 4 Tliailanid Environinent Sector Strategy Note: Building Partnerships COST OF INACTION are estimated at $2.9 billion in 2000, $5.2 billion in 2005, and $8.9 billion in The benefits of bluer water... Earlier 2020. These benefits are largely based studies7 conducted by the World Bank on evaluation of reductions in infant indicate that the health benefits of pro- mortality. The present value of these viding universal access to clean water benefits and costs over a 20-year time and sanitation to the Thai people would horizon are depicted in Figure 1, which be significant. Thailand may also gain indicates that for every $1 invested in considerably from such investments in water and sanitation, almost $7 in im- terms of competitiveness and produc- puted health benefits are attained. This tivity. Studies of household spending benefit-cost ratio is similar to that for and water markets in urban areas in Indonesia and the Philippines but sig- Thailand, Indonesia. Philippines and nificantly greater than for China. China indicate that most households without access to safe water pay up to 10 per- cent of their annual in- Figure 1. Net Benefits for Urban Sanitation and Water Pollution Controls come for this water-of- 160 139 ten more than the cost of 140 providing piped or 120 boiling water. Eco- 10 t59 nomic gains can also a be achieved through 80 55 improvements in man- 60 8 agement of water re- 40 40 \6 sources for irrigation 20 1 7 4 and industrial use. Poor U 4 management exacer- China Indonesia Philippines Thailand bates extraction of groundwater and dete- *Benefits ° Costs rioration in ground- water quality. Under a medium ... And clearer skies. In the early 1990s investment scenario in Thailand ex- the health costs of exposure to dust, amined by the World Bank, annualized le particusts, Go,dndC s- e ~~~~lead, particulates, CO,, and CO emis- costs for implementing urban sanitation sions in Bangkok were estimated at 8- and water pollution controls would 10 percent of urban annual income. De- amount to $0.45 billion in 2000, $0.66 billion in 2005 and s1.76 billion in several years (such as a shift to un- 2020.c These investments would in- leaded gas), the costs of damage to dnude improvements in water supply human health and the economy are ex- and sanitation access and water pollu- pected to rise to 20 percent by 2025. tion control. Health and economic The same World Bank study also con- benefits generated in such a scenario cluded that the benefit-to-cost ratio for investments in air pollution prevention 7 Can the Enviroiinmenit Wait? Priorities and control is close to nine. Under a For East Asia. World Bank, ]997. medium investment scenario the total 8 Estimates are in 1997 dollars. annualized costs of implementing air Chianiginig Econoinic a(1d E,nvironmental Context 5 pollution controls would be about $400 Box I below for an overview of im- million in 2000, $660 million in 2005, pacts on the East Asia region). At- and $1.5 billion in 2020 with corre- tempting to aggregate the overall effect sponding benefits of $2 billion in 2000. of the crisis and related policy reforms $4.7 billion in 2005, and $25 billion in on the environment in Thailand is not a 2020. Figure 2 illustrates the present simple task. Isolating impacts resulting value of these benefits and costs over a specifically from the crisis, comparing 20-year horizon. The benefit-cost ratio different "types" of impacts (such as Figure 2. Net Benefits of Air Pollution Control 40q ....... 35_1 350 25C Ratio: 7 .: 20d :^15C 5C3 5 23 1 2 33 China Indonesia Philippines Thailand m Benefit EmCosts for Thailand is considerably higher reduction in industrial activity vs. in- than World Bank estimates for other creased migration to rural areas), and countries in the East Asia region. recognizing that several of these im- pacts may not yet have manifested IMPACT OF THE CRISIS Thte economic crisis and the environ- ment. The economic crisis and related structural adjustment program have had Z, ~~~~~~tion in economic activity, changes in several impacts on the environment- epoymentmin and rural/urba . . 9 ~~~employment in general and rural/urban some negative and others positive (see ¢ ~~~~~~~~~~~~migration In particular; (iii) effects of the alterations in relative prices, mak- 9 Markandya, Environmental Inplica- ing the production of rice. export of tionis of the Finiancial Crisis in Tlhai- natural resources, and tourism more lanid. ADB (1998), suggests that the attractive; and (iv) policies induced hy causes of these impacts stem from the the structural adjustment program following: (i) changes in investment (such as privatization, increased cost- allocations for environmental protec- recovery for environmental services. tion; (ii) changes in quality of the am- introduction of new taxes with envi- bient environment as a result of reduc- ronmental implications, etc.). 6 Tlhailalnd Etnironiment Sector StrategY Note: Building Partners/ips Box 1 The Environmental Implications of the Economic Crisis in East Asia Before the current economic crisis, people throughout the region were realizing that a .grow now, clean up later" paradigm was resulting in unacceptable environmental costs. Envi- ronmental degradation was costing the regional economies an average of nearly 5 percent of GDP annually. This realization prompted efforts throughout the region to improve environ- mental management, and countries invested between 0.5 and 1 percent of GDP on environ- mental protection. However, the crisis now threatens to cut short those efforts. The impact of the financial crisis on the environment is a story of both good and bad news. On the positive side, what is bad for the economy turns out to be good for the environ- ment. Industrial downtum and reduction in consumption levels lead to less air pollution and a decrease in waste generation. Yet these positive impacts are fairly small and temporary. Without interventions specifically aimed at curbing emissions, air and water pollution will sur- pass pre-crisis levels soon after economic recovery. In addition, in terms of industrial pollu- tion, the positive impacts of emission reduction are often offset by the combined negative ef- fects of reduced operation and maintenance of pollution control equipment and less stringent regulatory control. Despite currency depreciation and the desire to increase exports, the timber sector is ex- periencing decreased demand in the short term. In the second half of 1997, major regional export markets for hardwood, plywood, and logs collapsed overnight. Farmers and communi- ties who depend on resource extraction from protected areas seem to have weathered the crisis relatively better because of less dependence on the market economy. Others, such as cash croppers, including rice producers, have also benefited from the changes in relative prices. On the negative side, the financial constraints of private and public sector companies have forced industrial and municipal treatment facilities to cut back operations. The situation is likely to be further exacerbated by delays in investments in capital renewal and cleaner technologies. Coastal and mangrove resources have been more threatened by domestic and industrial effluent than by additional fishing pressure; in some cases, the sharp rise in produc- tion costs has put small fisherman out of business. Budgetary allocations for the environment have been affected differently across the re- gion. In Indonesia, environmental agencies have generally absorbed substantial budgetary cuts. Budgets have also been reduced in Thailand, especially for poltution control and energy conservation, although some agencies have not been affected. In the Philippines, the budget of the Department of Environment and Natural Resources suffered a 25 percent mandatory reserve on all expenditures other than personnel and debt service and the suspension of tax subsidies to government units. The Government of Korea's budget for environment shrunk 0.3 percent in 1998 from 2.8 percent in 1997. In Malaysia on the other hand, funding for envi- ronment actually increased in 1998. In the current context, the important challenge is to ensure that regional economies do not relegate environment to a secondary status on the policy agenda and backpedal into a spiral of the old 'grow first, clean up later' approach. Priority should be given to restoring growth to reverse the decline in personal and national incomes and to continue the battle against poverty. At the same time, however, recovery programs can provide an opportunity to remove environmentally harmful subsidies, to promote competitive gains through energy savings and resource optimization, and to create a framework for implementing positive envi- ronmental fiscal incentives. As growth resumes, the choice should not be between environment and development; both are needed. The challenge is to make recovery work for the environment, not against it, so that the financial crisis may be remembered as a window of opportunity for improved envi- ronmental quality in East Asia. Source:. Environmentut lim/icatnons f the Econotnic 0(ris :sand Adjasimnenf in East Asia. World Bank. Janueary ,999. Changing Econ1omiic- anid Environmental Context 7 themselves complicates this analysis.10 Moreover the regulator (in this case However. a number of preliminary ob- the Ministry of Industry) may ex- servations are worth noting regarding press even greater reluctance than changes in budgetary allocations for the usual to enforce compliance with environment and changes in environ- environmental standards. Hence, mental trends. while industrial production has Government spending, for envi- fallen, pollution intensity (pollution per unit of output) may well have ronmental protection has declined. increased. The effect of the combi- Overall Government budget for envi- nation of these two phenomena on ronmental investments has been re- duced significantly, thereby suggestinga apd that fewer investments in conservation clear. Furthermore, pollution load tht .conservation is expected to increase significantly and protection activities are being . .. made. Preliminary findingrs of an on- as industrial production initiates its going study by the Kenan Institute in recovery. Bangkok, summarized in Table 1, indi- * If financing operation and mainte- cate that budget shrank by 20 percent nance costs of public environ- for fiscal year 1998. See also Annex D. mental investments such as waste- water treatment plants and solid Table 1. Budget Allocation for Environmental Protection 1996 - 1998 Sector 1996 1997 1998 (million Baht) (million Baht) (million Baht) Water Pollution 5,948 7,257 6,584 Air & Noise Pollution 472 447 164 Solid & Hazardous Waste 1,193 1.302 1,155 Others ( Management) 2,386 2,391 405 TOTAL 9,999 11,397 8,308 Solurce: Kenanl Institute Impacts on the environmett and natu- waste management was a serious ral resouirces. In small part due to difficulty during the years of eco- changes in budgetary allocation for en- nomic prosperity (as is generally vironmental protection, the crisis ap- acknowledged), such difficulties pears to have had the following effects: have likely increased during the pe- riod of economic slowdown. We * While a large number of industrialrodfecnmcswon.W facilities have closed down, thousel may therefore expect an increase in facilities have closed down, thosedischargesofuntreat remaining in production do not is ges of untreated municipal waste. necessarily have the same re- sources to continue operating their pollution control equipment.'' similar hypothesis in Thailand. there is no indication that a different phe- 10 Refer to Markandya (1998) for a sys- nomenon would be taking place. An- tematic review of these impacts. ecdotal evidence also suggests an in- 11 This phenomenon was recently ob- crease in illegal disposal of toxic waste served in Indonesia. While the absence by polluters seeking to avoid the costs of data does not allow us to test a of proper disposal. 8 Thiailanld Enviroinment Sector Strategy Note: Buildinig Partnersships * The impacts of El Nino, forest adequate attention is given to preserv- fires, and the 1998 drought have ing the natural environment, through made it more difficult to under- better management of natural re- stand the consequences of the crisis sources. effective enforcement of for natural resources in Thailand. regulations, and implementation of Preliminary findings suggest that prudent taxation policies. This provides simplistic predictions of natural re- a window of opportunity in which to source degradation-caused by in- re-examine the relationship between tense reverse migration from urban growth and the environment, and set to rural areas, forest encroachment, the foundation for a more holistic and change in land use and increased proactive approach to conservation and exploitation of coastal and fresh- management. water resources-do not appear to Renewing competitiveness. The argu- have been realized. In some cases, ment that stricter environmental regu- the environmental impact appears lations and voluntary standards (and positive, which may in part be a re- thus increased protection of the envi- suit of the strong depreciation of ronment) enhance competitiveness and the baht. Often the crisis has (rowth is becoming more widely ac- merely nudged pre-existing trends ct Tle slightly~~ ~ ~ hihrorlwr cepted. This challenges the conven- tional view of a strict tradeoff between * Farmers and communities relying the environment and competitiveness. less on the market economy may Indeed, properly designed environ- have weathered the crisis relatively mental standards can trigger innovation better at least for now by benefiting or induce the adoption of more efficient from changes in relative prices. technologies. These gains in efficiency However the poorest farmers, (reduced production costs) may more many of whom practice illegal than offset the cost of complying with farming in protected areas, are not stricter environmental standards. Here self-sufficient in rice and buy in lo- the focus is on environmental standards cal markets, have been hit very that are properly designed. Reference is hard by the increase in domestic explicitly made to instruments that al- prices for rice and other commodi- low the greatest level of flexibility to ties. the polluter, such as market-based in- strum?1enits (MBIs). The adoption of ENVIRONMENT AND MBls-which in Thailand would rep- ECONOMIC RECOVERY resent an important departure from cur- rent approaches (command-and- control)-could therefore go hand in Preservation of the natural envlron- hadwt h eea fTaln' . . , . ~~~~hand with the renewal of Thailand's ment is critical to sustainable recov- industrial competitiveness. These in- ery. The World Bank's CAS of 1998 struments are discussed in greater detail sets out the medium-term development in Section 6. framework for Thailand. The CAS ar- ticulates three important elements that Another hypothesis illustrating the are required to revive growth: renewinig effects of standards is centered on the competitiven7ess, inproving govern- ance, and sharing growth and enisuriig quality of life. It further argues that sustainable recovery is possible only if Clhanging Economic codel Fnvironmental Conltext 9 implementation of ISO 14000.12 Be- overall environmental governance sides improving manufacturing effi- structure has exhibited a large number ciency and environmental compliance, of deficiencies, including overlapping it also facilitates a behavioral shift by functions, poor delineation of responsi- promoting greater collaboration be- bilities among institutions, and limited tween employees and owners within a human and technical capacity at lower manufacturing unit. Though the guide- echelons. To a large extent, the eco- lines are intended as a voluntary and nomic downturn has exposed these internal management tool, there is con- weaknesses even more strongly. In this cern that ISO standards may be used as context, improving environmental gov- non-tariff barriers overseas. Neverthe- ernance is of crucial importance and less, a growing number of firms in remains a significant challenge. Better Thailand are actively complying with governance will not only improve ISO 14000 standards-thereby under- overall efficiency of environmental tak-ing "globally acceptable" environ- management in the country. it will also mental policies and practices-in order send strong signials to private agents to maintain their access to overseas that protection of the environment is a markets.'3 key component for recovery and sus- The above two arguments provide tained growth. Such signals are neces- eidence contradicting the conventional sary to bring about changes in these bevief tha proprly deignedenviron- agents' behavior, which recognize that belief that properly designed enirnenalqaltyiovlube n mental standards will encourage theenvironmental quality s valuable and flg tonduris to encoun t with must be protected for the benefit of all. flight of industries to countfies with lower or non-existent ones. Indeed re- Sharing growth and enhancing qual- cent research does not support this ity of life. Initiatives to protect the en- "pollution haven" hypothesis. Hence vironment would enhance quality of the implementation of properly de- life for the Thai people, especially for signed environmental standards aimed those most disadvantaged. This argu- at improving environmental quality ment is based on the belief that a de- may simultaneously facilitate rather graded environment adversely affects than impede the renewed long-term human health and threatens the liveli- competitiveness of Thailand's impor- hood of the rural and urban poor-in tant economic sectors. turn exacerbating inequity in the coun- try. Amon- the "ibrown" issues, air Improving governance. In Thailand as thi 1 . . ~~~~pollutants, groundwater contamination, in many other developing countries, the t g and solid and hazardous wastes have increased mortality and morbidity, 12 The ISO 14000 series, a project of the most notably in the Bangkok Metro- International Organization for Stan- politan Region (BMR). A recent study dardization (ISO), is a collection of indicated that the Bangkok population voluntary consensus standards that has been adversely affected by par- have been developed to assist organi- ticulate matter air pollution-with an zations to achieve environmental and estimate of 5,000 premature deaths economic gains through the imple- each year.'4 Of particular importance is mentation of effective environmental manaaement systems. 13 As of March 17, 1999. 121 facilities in 14 Hagler. Bailly. "The Health Effects of Thailand were certified ISO 14000: 41 Particulate Matter Air Pollution In of these were in the electronics sector. Banakok." March 1998. 1() Tliailand Envi-ronmiienitSector Strategy Note: BuildingPartlnerships the fact that, as shown by the study, the foundation for sustainable growth, urban poor bear most of the burden of a there is a need to confront systemati- degraded and polluted environment. cally the challenges of efficiency, eq- Deforestation, land degradation and uity, and transparency ' While it is over-exploitation of natural resources usually understood that these chal- (such as fisheries) have together re- e s p t ,. . . .~~C public resource mobilization and ex- duced livelihood options available to il a e many rural villagers. Between 1961 penditures, they apply equally to man- a-ement of the environmental sector. and 1998 forest cover decreased to t about 25 percent.'5 Loss of forest cover ficiencY means that objectives and inappropriate land use practices of environmental quality must be have resulted in increased soil erosion reached with a minimum of public re- sources, that the proper role of the and sedimentation of waterwavs. Over- pubcese tct in provdn environ- public sector In providing environ- harvesting of marine fisheries has re- sleinatenoddces ncth mental services must be reexamined, suited in a tenfold decrease in catch- and that environmental governance per-unit-effort, from 265 kilograms per must be improved. Greater equity in- hour in 1970 to 25 kilograms per hour today 16-in addition to significant de- plies that public investment in pollution Z1 .control and environmental and natural pletion of fish stocks and degradation t~~~ resources management must reach of the marine habitat. Over-fishing is those in society among the least well largely due to overcapitalization of the off. Finally, greater transparencv re- fisheries sector stimulated by open ac- a larger greeo deentra - cess, poor enforcement of regulations, ce '. . ' ~~~~~~tion, environmental awareness, and and Input subsidies on fuel and fishing to e a and g T d i c public participation in issues pertaining gear. The decline In catch-per-unit- c to environmental management. Ad- effort has caused a decrease in fishers' income felt most severely by small- dressing these challenges will be key to scale fishers (who already tend to be renewed and sustained economic disadvantaged) and shows the need for growth. alternative livelihood opportunities to bring fishing effort down to sustainable levels. Sustained growth: efficiency, equity, and transparency. As was identified elsewhere,"8 for Thailand to rise out of the present economic crisis and lay the 15 Royal Forestry Department report on 19 "Among the widely recognized barri- remote sensing interpretation. 1996. ers to growth in competitiveness were 16 The Department of Fisheries estimated serious deficiencies in infrastructure that around 54.538 fishing boats were development and environmental man- operating in Thailand in 1995. agement. and a policy reginie at the 17 FAO/RAPA. Socio-Economnic Issues in micro level which was too much Coastal Fisheeries Management: Pro- aeared to creating and preserving rents ceedinigs of the IPFC Svmposium, rather than fostering market competi- Bangkok, November 1993. tion." Source: Frank Flatters, Thailand, 1 8 World Bank. Thailand Public Finance the IMF and the Economic Crisis: Review, Concept Paper. First in. Fast out? March 1999. 2 Policv and Institutional Framework A n early beginning. Thailand pact Assessments (EIAs) were also es- has developed over the years tablished in this Act.20 16w an extensive legal and regula- Revisions to the NEQA. In response to tory framework .for the administration ReiontoheN A.Irspseo growing and complex environmental and management of natural resources problems, the NEQA was amended in and the environment (see Annex C). In 1992.eIn the NeQA wAs the N the late 1960s, concerns about the ad- 1992. In the revised NEQA, the NEB verse effe1960s,ct ncs of bindustriatin awas upgraded to ministerial level and verse effects of industrialization its secretariat separated into three de- emerged. The Factory Act (1969) re- partments within MoSTE. The Prime sponded to these concerns by assigning Minister now chairs the NEB. Other responsibility for industrial pollution major changes include: decentralization control to the Ministry of Industry of certain environmental functions, 2 (Molnd). The first comprehensive leg- o p islation on environmental protection zones, and creation of an Environment was the Enhancement and Conserva- Fund (EF). The law also called for the tion of National EnvironmentalQuality preparation of (i) a 20-year planningt Act (NEQA), which was enacted in framework for the environment (See 1975. This landmark Act established .. .. the National Environment Board Box 2); (ii) periodic five-year envi- ronmental quality management p)lans; (NEB) as the main policy, planning and romna uaiymngeetpas (NEB) ah apcpnand (iii) Provincial Environmental Ac- coordination agency, and the Office of tion Plans (PEAPs) the NEB as its secretariat. The National Economic and Social Development A proliferation of environmental Board (NESDB) and MoSTE were to agencies. As the primary administra- contribute to the planning process. Ambient quality standards and guide- 20 Thailanid-Mitigating Pollution an1d lines for the use of Environmental Im- Congestion Impacts in a High-Grovvth Econoniv, World Bank. 1994. 21 Decenitr-alizing Environmental Mani- agement-Participato 7v Approach. Thailand Environment Institute. 1995. ii 12 Tlabeiland Eni'iro,nletr Sector Strategy Note: Building Partnersh-ips Box 2. Policy and Perspective Plan for Enhancement and Conservation of National Environmental Quality - 1997-2016 Commonly referred to as the 20-Year Environment Plan, the Policy and Perspective Plan for Enhancement and Conservation of National Environmental Quality was prepared by the Office of Environmental Policy and Planning on a directive from the NEB and ap- proved by the RTG on November 26, 1996. The 20-Year Plan consists of six main policy areas: (1) Policy on Natural Resources; (2) Policy on Pollution Prevention and Eradication; (3) Policy on Natural and Cultural Environment; (4) Policy on Community Environment; (5) Policy on Environmental Education and Promotion; and (6) Policy on Environmental Technology. It is intended to be the 'blueprint" for integrating management and conservation of natural resources and enhancement of environmental quality with sustainable economic and social development. Government agencies and state enterprises will implement the 20-Year Envi- ronment Plan according to the Enhancement and Conservation of National Environmental Quality Act of 1992 by formulating the Environmental Quality Management Plan and Pro- vincial Environmental Action Plans. In addition to prioritizing environmental problems, the Plan promotes the participation of locai organizations and NGOs at all levels in the admini- stration and management of natural resources, monitoring and compliance of environ- mental regulations and promotion of environmental awareness. tive body charged with environmental An emphasis on decentralization and protection in Thailand. NEB proposes a shift to local governments. The 1992 laws, recommends fiscal measures, revisions to the NEQA decentralized prescribes standards, and approves an- some environmental functions to the nual national and provincial environ- provincial level. Provincial authorities mental quality management plans. Im- (through the Department of Local Ad- plementation of environmental and ministration) are now responsible for natural resource responsibilities has the annual preparation of a PEAP if the been assigned to several Government province contains a designated Envi- ministries and agencies-- including ronmental Protection Zone (EPZ). MoSTE, MoAC, Molnd, Ministry of However, the Governor of each Prov- Interior (MoInt). Ministry of Commu- ince remains appointed from the central nications, and the National Energy administration. This has raised ques- Planning Office (see Box 3). The large tions on the meaningfulness of decen- number of institutions involved in pro- tralization to locally elected or ap- tection of the environment and man- pointed officials. Often the Govern- agement of natural resources has re- ment and local officials find themselves suited in overlapping functions, unclear in disagreement on environmental is- delineation of responsibilities, and sues. Active involvement of local overall reduced effectiveness to im- communities in the planning process plement plans and programs and en- also remains a challenge.23 In 1997, force laws related to environmental quality. 23 The Thailand Environment Institute has repeatedly emphasized the impor- 22 See Environment Profile, Tlhailcand. tance of people participation in its ini- ADB. 1999 for more details. tiatives. Policy aniel Instittiornal Framework 13 amendments were made to the National tie experience or capability to handle Constitution that established decen- these responsibilities. Assessment of tralization as a cornerstone of Govern- the readiness of local governments to ment policy. Section 290 of the new assume these responsibilities and iden- Constitution states that "local adminis- tification of opportunities for local ca- trative organizations have powers and pacity building are therefore immediate duties to manage. preserve and exploit priorities. natural resources and environment in the area of the locality." This has sub- stantially shifted new responsibilities to local governments (below the provincial level), which often have lit- Box 3 Overview of Environment and Natural Resource Functions in the RTG Ministry of Science, Technology, and the Environment (MoSTE). The three agencies within MoSTE assigned to carry out the NEB's mandate are the Office of Environmental Policy and Planning (OEPP), Pollution Control Department (PCD), and Department of Environmental Quality and Promotion (DEQP). OEPP's responsibilities are to formnulate the national policy and plan for the environment, assist in preparation of PEAPs, monitor compliance with inter- national agreements and commitments, and evaluate ElAs for private and public projects. PCD designs national emission and ambient standards, monitors environmental quality, de- velops methodologies for pollution control and enforcement, and responds to public com- plaints retated to pollution. DEQP focuses on cooperation and coordination among Govern- ment agencies, state enterprises and the private sector and coordinates dissemination of in- formation and data to promote public awareness and knowledge about the environment. Ministry of Agriculture and Cooperatives (MoAC). Various cabinet resolutions and legisla- tion charge MbAC with management of key natural resources and habitats. For example, the Royal Forestry Department (RFD) is assigned responsibility for management of forests, man- grove areas, and watersheds, as well as management of both terrestrial and marine protected areas. The Department of Fisheries is charged with management of aquatic resources. Soil conservation is the responsibility of the Land Development Department, which undertakes land surveys to analyze suitability for development, and on this basis implements a land clas- sification system and formulates indicative land-use plans. The Natural Resources and Biodi- versity Institute formulates policies and programs for natural resources management, coordi- nates natural resource activities across MoAC's agencies, other Government agencies and stakeholder groups, and maintains a natural resource information base. Ministry of Industry (Moind). Besides monitoring individual factory potlution control and assisting firms with environmental problem solving, the Moind plays an important role in high- lighting opportunities in Thailand's environmental sector. There are several Molnd agencies engaged in environmental services. The Department of Industrial Works (DIW) monitors efflu- ents and emissions, regulates environmental policy, and reviews the required EIA prior to is- suing licenses. The treatment of hazardous waste is primarily the responsibility of the Office of Industrial Environment Management. The Industrial Estate Authority of Thailand (IEAT) pro- vides environmental services such as storage of hazardous and solid waste, and centralized wastewater treatment plants. Bangkok Metropolitan Administration (BMA). The BMA is the premier local government in the country, responsible for the management of the capital city and its hinterlands. The Gover- nor and the council are directly elected by the residents. It plays a significant role in the up- keep of the city's environment and provision of basic services. Its mandate includes provision of water supply; collection, treatment and disposal of wastewater and municipal solid waste; and planning and maintenance of city roads. The BMA collects property taxes and other reve- nue enhancing measures and receives central Government grants to finance its activities. * See also Annex B. 3 Overview of the Environment- Trends, Responses and Challenges FORESTS AND WATERSHEDS year between 1995 and 1998.25 The bulk of the decline in forest cover was due to unsustainable practices of pre- Trends ban logging concessions. Since the ban, illegal logging and encroachment by Deforestation. Forests covered about farmers have been the main contribu- 53 percent of the total land area of Thailand in 1961 but dropped drasti- Figure 3. Forest Cover in Thailand (1982 - 1998) cally to about 28 percent in 1989-at 180,000 which time a na- 160,000 tionwide logginge 14,000 ban on the coun- t r try's terrestrial for- StioTo est reserves was U 800 enacted (see Figrure c 3). By 1998 this D 60,000 decreased further to 4,0 just over 25 per- 20,000 cent: 2 The rate of- decline has slowed 1982 1985 1988 1989 1991 1993 1995 1998 from 0.9 percent per year before the tors to loss and degradation of forests. ban to 0.4 percent per year just after the The slowdown in forest cover loss ban and was down to 0.2 percent per 25 "Environnmental Statistics of Thailand 24 Royal Forestry Department report on 1998." National Statistic Office, Office remote sensing interpretation, 1996. of Prime Minister. 14 Trendls. Responses and Challenges 15 masks the continued decline in the well beyond historical rates, and im- quality of forest stands, which is more plies a significant increase in invest- difficult to monitor. ment. Biodiversity. Thailand is richly en- Biodiversity and protected areas. The dowed with flora and fauna species, protected area system covers 16 percent which are spread across 15 terrestrial of the total land area of the country (50 ecosystems and a large variety of million rai) and consists of 65 terres- freshwater and marine ecosystems. The trial parks, 44 wildlife sanctuaries, 54 country's biodiversity is high because non-hunting areas, 57 forest parks, 5 it includes both the Indo-Malayan and botanical gardens and 44 arboreta. The Asian continental biogeographical re- Government intends to increase cover- gions, but endemism is low because of age to 19 percent of total land area (59 limited geographical isolation. How- million rai) through the addition of 50 ever, significant loss of dryland forests, terrestrial national parks, 15 wildlife coastal mangrove forests and wetlands sanctuaries and 3 non-hunting areas. has resulted in a decline in biodiversity. While the existing protected area sys- Among plants, about 100 species are tem is sufficiently representative of the classified as endangered and another country's various ecosystems, pro- 900 are considered rare or vulnerable. tected areas are not well managed and Among animals, known extinctions in- many are "paper parks" with significant clude various species of shrimp, fish, populations in residence. 26 reptiles, birds, and two mammalS. Watershed management. There are 25 river basins and lake systems in Thai- Resp-nse land. A watershed classification system based on five -eophysical variables Forest management. To improve for- b was introduced starting in the late est management practices, in 1992 the 1970s to help classify watersheds ac- RTG classified forest reserves (totaling cording to biophysical characteristics 147 million rai; up from 125 million ral and specify intended land use (for ex- in 1982) into three distinct zones' adseifyitne adue(o x in 1982) intohreedistiample, forest protection, grazing, etc.). (i) conservation zone; (ii) economic o i e tr zone (commercial or productive for- Based on thm s system watershed classi- ests); and (iii) agricultural zone. De- fication maps (using I square kilometer spite the downward trend in forest cover, the National Forest Policy has completed and approved by the Cabinet set a target for forest cover to increase for all regions in 1992. by 15 percent, up to 40 percent of total land area.27 Of this amount, 15 percent Challenges would be conservation forest and the A broad range of issues requires addi- remailnin 25 percent comnmercital or remainng 25 ercentcommerial or tional attention to support coniservationi productive forests. To reach this goal of ntational park-s anld wildlife sanicta- would require extensive reforestation. aries including (i) more effective en- forcement of the forest logging ban, 26 'Environment Profile of Thailand," through enhanced policing capabilities ADB, 1998. (surveillance, log monitoring and log 27 A date was not specified as to when trade control technologies), better the 40 percent target would be prosecution and tougher penalties; achieved. (ii) more frequent monitoring of 16 Tlhailand(l Environment Sector Strategy Note: Building Partnerships changes in forest cover using interpre- WATER RESOURCES tation of satellite images and ground truthing; (iii) increased staff capacity through additional recruitment and fo- Trends cused technical training; (iv) formal demarcation of protected areas, wildlife Overuse of surface and groundwater sanctuaries and buffer zones, in con- sources. Thailand's past three decades sultation with local communities; of sustained and rapid economic devel- (v) participatory development of man- opment stimulated an expansion of agement plans for protected areas, in- demand for water services. During the cluding buffer zone activities; 1980s alone, water demand more than (vi) involvement of local communities doubled, from 20.5 billion cubic meters and nongovernmental organizations per year in 1980 to 43 billion cubic (NGOs) in implementation of man- meters in 1990, and is forecast to dou- agement plans; and (vii) full financing ble once again in the next ten years. of recurrent costs of management The largest use of water is for irrigation through increased user and service con- (89.5 percent), followed by domestic cession fees. needs (7 percent) and industrial needs (3.5 percent). In response to the in- Enhanced watershed management creased demand, surface water supply would help protect the headwaters of has developed haphazardly, supple- important river basins as well as pre- mented by a growing, unsustainable vent large-scale soil erosion and down- reliance on groundwater. The effects of stream sedimentation. Key measures the 1998-99 drought have exacerbated include (i) formal demarcation of Wa- the situation. Supply has not kept pace tershed Class IA and IB areas28 and with demand and this has resulted in development of management plans for the following: these areas in consultation with local communities; (ii) rehabilitation of * Water reserves are currently at an steeply sloping denuded areas, includ- all-time low in the county's two ing reforestation and other soil erosion largest dams-Bhumibol on the control measures as appropriate; Ping River and Sirikit on the Nan (iii) engagement of local communities River. Reserves in the dams have and NGOs in protection of watershed fallen to under 3.6 billion cubic areas; and (iv) research and extension meters, less than half the normal support for new agricultural technolo- levels of 8 to 10 billion cubic me- gies to stabilize shifting cultivation and ters and well below the two dams' establish sustainable upland farming combined net storage capacity of systems, including agro-forestry and 16 billion cubic meters. community forestry. * Only 35 percent of the irrigable area in the lower Chao Phraya, the country's main agricultural area, receives sufficient water during the dry season in a good year. In the BMR, groundwater pumping of 1.5 million cubic meters per day is currently nearly double the esti- 28 Classes IA and I B represent the most mt sustaina ble yeo 800,00 ecologically sensitive watersheds. mated sustainable yield of 800,000 cubic meters per day from the aqui- Trenids, Respolises annd Challenges 17 fer, and the resulting land subsi- has been conducted to evaluate this dence is a major economic and en- trend. vironmental issue. * Similarly in some rural areas, in- Response creasin- water scarcity has led to i t Government response to these trends an unsustainable reliance on can be broadly classified under two groundwater. In the drought year of headings: i) water resource manage- 1994 for instance, an estimated me 50,000 irrigation wells were sunk ment and ti wastewater investments. in the lower Chao Phraya Basin eit esatabihe fother, the Gov- alone. ernment established the Office of the National Water Resources Committee Deteriorating water quality. Despite (NWRC) in 1996 to coordinate water effluent and water quality standards, resource management activities. The surface water quality in Thailand's NWRC oversaw the drafting of a new major rivers shows a deteriorating Water Law, which has not yet been trend. In 1997, the Pollution Control submitted to the Cabinet for approval. Department (PCD) undertook a water The draft law explicitly calls for the quality survey of the country and found establishment of river basin organiza- that 14 percent of surface water re- tions to facilitate management of water sources are in good condition (suitable within hydrological boundaries of ma- for aquatic animals and general human jor river basins; responsibility for na- consumption), 49 percent are in aver- tional coordination remains with age condition (usable for agriculture NWRC. In 1997. the Government and general consumption), and the re- completed a comprehensive Chao maining 37 percent are of low quality Phraya Basin Water Management (see Figure 4). Pollution from domestic Strategy, which supports the early es- sewage is problematic Figure 4. Quality of Surface Water in Thailand throughout the country, Pollution Control Department Survey in 1997 with surface water re- sources in central 14% Thailand the most 370/ high quaiity degraded, containing high El average quality levels of coliform bacteria. vaverage quality Another increasing D low quality concern is the rise of am- % monium nitrates in water, which endangers aquatic resources. Industrial pollution is most tablishment of the Chao Phraya River severe in the BMR due to industrial Basin Organization. This will serve as concentration, especially in the Chao a model for other basins in the country. Phraya and Lower Thachine Rivers. With respect to wastewater invest- The lower reaches of the Chao Phraya ments, the Government committed River are always low in dissolved oxy- $550 million for wastewater collection gen, averaging only 0.8 milligrams per and treatment systems in the BMA in liter, compared to 5 milligrams per liter 1998. Similar investments are also un- considered suitable for consumption. der consideration for secondary cities Groundwater quality is also thought to and towns. be deteriorating but little monitoring 18 Thailand Environment Sector Strategy Note: Buildilg Patrtnerships Challenges (ii) formulating water resource man- agement plans for major watersheds, Issues related to instittitionial responisi- and (iii) adopting mechanisms for re- bilities and user cliarge policies repre- allocation of water from low-value to sent the first set of challenges for water high-value uses. resource management. Responsibility for water management is divided COASTAL RESOURCES among 30 agencies in six ministries; water quality responsibilities have similarly been assigned to several Trends agencies. Inter-agency cooperation is weak and therefore clarifying institu- Fisheries. Between 1981 and 1995, tional arrangements is a high priority fisheries catch and production in- for the Government. Cost-recovery creased at a rate of 4.3 percent per year, policies for wastewater collection and from 2.0 million tons to 3.6 million. treatment and user charge policies for Fueling this growth has been a dra- water are also poorlv designed and matic increase of 1] .8 percent per year rarely implemented. This has resulted in coastal aquaculture and freshwater in unsustainable investments (that is, fish production. Analyzing fish pro- inability to cover operation and main- duction by sub-sector in 1995 reveals that 79 percent of production is derived Figure 5. Annual Catch and Production of Fish (1984-1998) 3,500 - 3,000 ___ 3 2,500 _ __ _ _ 3 0 2,000 - o 1,500 - -- 1,000 - -- 500 __ 3 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 marine fish catch - - - freshwater fish catch - - -fish/shrimp production tenance costs) and perverse incentives from marine capture, 10 percent from (such as use of water for irrigation). coastal aquaculture, and 5 percent each Review and rationalization of these from inland capture and freshwater policies is a high priority. culture (see Figure 5). However, in terms of the total value of fisheries A ecndse fhalegs rproduction (estimated at 96 billion baht volves around integrated water re- in 1995), the marine capture fishery souirce manaiageinett. In addition to in- ributed only 47 percent, to coastal stitutional reform, key measures to en- cutur sure more effective use of scarce water qautrs43pce,anthi- sure more effeciveIueofcr land capture and freshwater aquacul- resources include (i) finalizing and en- acting the draft Water Law; Trends, Respo0nses anid Clhallenges 19 ture subsectors each contributed about programs emphasized management and 5 percent. conservation. The rapid development of Mangroves. Thailand lost more than aquaculture was led by the private halfrits.mangrove forest area between sector, principally small farmers, with half its mangrove forest area between litl ineveto or ovrih byth 1961 (372,000 hectares) and 1993 lDttle intervention or oversight by the (168,000 hectares). From a high of ap- DOF. proximately 13,000 hectares per year of Figure 6. Mangrove Forest Area (19791996) mangrove forest lost nationwide between 5° r 1979 and 1986, the rate 3,000 of decline decreased to 2.600 hectares per year 2,500 from 1991 to 1993. The E 2,000 -- loss rate slowed further gn 1.500 in the mid-1990s, with mangrove area decliningr 1OU00 only 1,000 hectares, to 500 167,000 hectares in 1996.29 Analysis of end 1979 1986 1989 1991 1993 1996 land use using remote sensing data indicated that a large part Marine biodiversity and protected ar- (66 percent) of this decline was due to eas. The Royal Forestry Department the combined effect of clear-felling for (RFD) is charged with management of timber, firewood and charcoal; and Marine Protected Areas (MPAs). There clearing for agriculture, salt evapo- were 18 marine national parks in Thai- ration ponds, road and port develop- land covering 3 million rai as of 1998. ment, and mining.30 The single largest Currently about 60 percent of the end use (32 percent) was shrimp farm county's coral reef areas and other im- development, although it could not be portant marine habitats such as seagrass determined from the remote sensing beds, marine turtle nesting sites, and images whether shrimp ponds were de- mangrove forests are located within veloped directly from virgin mangrove MPAs. Household and industrial or from former mangrove areas that wastes and sedimentation have had had already been cleared for other pur- negative impacts on important coastal poses. See Figure 6. and marine habitats, such as seagrasses and coral reefs. Response Challenges Fisheries and aquaculture manage- ment. The focus of the Department of Coastal resources need to be more ef- Fisheries has traditionally been on de- fectively managed to reduce economic velopment and only recently have DOF and social conflicts. Key measures in- clude (i) strengthening the policy and 29 Forest Statistics of Thailand, 1996. regulatory framework to support inte- 30 Conclusion reached by Joint Working grated planning and coordinated man- Committee of RED. DOF, DLD and agement of coastal resources; (ii) NRC. minimizing adverse impacts of major coastal activities through land use 20 Tlzailand Environm1leit Sector Strategy Note: Building Par-tershlips planning and zoning of areas appropri- tion of these areas has not changed and ate for aquaculture and tourism; (iii) therefore people are less willing to in- banning further conversion of man- vest in land they do not own. A related grove areas and replanting converted issue is the inability to legally title land areas as appropriate; and (iv) refocus- within I kilometer of "forest areas" ing research and extension on sustain- unless the boundary has been demar- able aquaculture practices including cated by the RFD and the Land Devel- development of disease-resistant stocks. opment Department (LDD). The proc- Improved management of capture ess of boundary demarcation should be mt o eexpedited to allow land titling to pro- fisheries is needed to control overhar- eed t allow land titlingdtop vesting and the resulting decrease in catc-pe-unt-efor andloto issues of security, land titling is im- catch-per-unit-effort and loss of re- y, source rents. Key measures include portant because it facilitates access to (i) updating maximum sustainable yield credit, which is a priority for Thai (i) updating maximum sustainable farmers. Inability to access credit con- and maximum economic yield esti- mates for major fishing areas and spe- tnbutes to Inadequate investment 'n cies; (ui) establishing a co-management land improvement and poor land man- framework for cooperative manage- agement. ment by Government, private sector Degraded lands and salinization. It is and fishing communities; (iii) reducing estimated that soil erosion affects be- the level of fishing effort in line with tween 17 and 21 million hectares in maximum economic yield through Thailand, resulting in on-farm and off- systematic retiring of boats and gear; farm impacts. Further loss of soil nutri- and (iv) restricting new entries and ents through leaching is estimated at capturing a higher portion of resource over 27 million tons per year. Saliniza- rents, through significantly increased tion is a problem in the northeast as license fees and other charges. well as in the south along the coast. In the arid northeast, the problem is LAND caused by irrigation with saline water. The LDD estimates that 105 million rai are prone to severe salinization and an- Trends other 16 million rai to medium or low salinization. In the south salinization Land titling and tenure. Thailand's results from expansion of brackish wa- total land area is about 51 million hec- ter aquaculture areas (estimated at tares. Of this approximately 38 to 39 16.000 hectares) inland from the coast. million hectares are officially desig- nated as public land and 12 to 13 mil- Response lion hectares are designated as private land. Despite the official designations, There are numerous Govemment agen- over half the land area of the country is cies engaged in land allocation and ti- occupied by permanent residents. On dlinig, but the four principal agencies are public lands, only about half the esti- (i) Department of Lands (Ministry of mated number of occupants have occu- the Interior), which is the only agency pation certificates. Challenges in land that can issue the full title of deed un- titling emerge in part from the inability der the 1954 Land Code; (ii) Depart- to title land classified as "forest areas." ment of Public Welfare, which issues Permanent residents reside in many Nor Sor 3 Kor (NS3K) tenancy certifi- "forest areas," however the classifica- cates in resettlement areas that can be Trendis. Responses and Challenges 21 converted after a period of time into strengthening the policy and regulatory certificates of utilization and ultimately framework to support integrated land titles of deed; (iii) Agricultural Land use planning and zoning; refocusing re- Reform Office, which issues Sor Por search and extension on sustainable ag- Kor (SPK) tenancy certificates to riculture practices and piloting these squatters on public lands for a maxi- approaches; and establishing a co- mum of 50 rai per person; and management framework for participa- (iv) RFD, which issues Sor Tor Kor tory land use planning and management (STK) tenancy certificates for I rai to by Government and local communities. squatters encroaching on natural forest reserve areas, and the right to lease up AIR QUALITY to 50 rai from RFD. The intent of RFD's STK program was to reduce forest encroachment, by establishing Trends permanent settlements in areas desig- nated by RFD as appropriate for agri- Transport sectorir pollution. Ve- culture. However, the program has not hicular air pollution is most severe in been able to keep pace with the demand Bangkok, and the analysis here is lim- for land in upland areas, and problems ited to the city. The ten-year old air with encroachment in forest reserves monitoring network in Bangkok con- continue. sists of 17 stations and monitors TSP, PM1o, CO, Pb (lead), SO2, NOR. OX Soil conservation is the responsi- (ozone), HC (hydrocarbons), meteoro- bility of the LDD (MoAC), which un- logical parameters, and other specific dertakes surveys to analyze land suit- pollutants as needed. Trends from ability for development, and on this ba- monitoring data indicate: sis implements a land classification system. The LDD also formulates land * Particulate matter: The annual use plans, but these are not binding. mean TSP curbside level of 480 Currently, there is no systematic pro- micrograms per cubic meter (aver- gram in Thailand to address land deg- age from 1988-1997) exceeds the radation, although LDD has undertaken annual average standard of 330 mi- some limited pilot projects with donor crograms per cubic meter. For 1997 assistance. the TSP in non-traffic dominated sites was 120 micrograms per cubic Challenges meter. While the frequency of ex- ceeding the daily TSP standards is Enhanced management is needed to re- over 70 percent at the curbside lo- duce land degradation and resource de- cations, it is only 2 percent at the pletion. Important steps to improve non-traffic-dominated sites. The land management include (i) continua- sources of TSP are reported to be tion and completion of ongoing pro- 40 percent from diesel, 40 percent grams of land titling and land tenancy road dust and 20 percent from in- certification on both private and public dustry and others. The 1994 World lands; and (ii) reclassification of "forest Bank study on the urban environ- areas" to reflect land use patterns more ment estimates that a 20 percent accurately, and formal demarcation of reduction in the concentration of forest boundaries-both of which TSP would generate annual health would facilitate land titling initiatives. A broader set of challenges includes 22 Tlhailand Environment Sector Strategy Note: Building Partners/hips benefits between $400 million and tween $300 million and $1.5 bil- $1.6 billion. 31 lion. These benefits have been more than realized in the steep de- cline in lead concentrations since curbside sites reflect an upward 1990.32 trend since 1992 and have always exceeded the standard. The daily Energy sector-airpollution. Over the standard for PM10 (120 micrograms past fifteen years, energy demand (es- per cubic meter) is exceeded 21 pecially for electric power) has con- percent of the time at the curbside stantly increased in response to eco- monitors and 13 percent of the time nomic development and today it is five at non-traffic-dominated sites. times the 1986 consumption of 4,180 megawatts. However, power generation * Candw0 eight-houor avera cTheonent- is not currently considered among the and eight-hour averag_e concentra- major contributors to air pollution, and tions of curbside ambient CO occa- is localized in areas where power plants sionally exceed the standards ( >x:9r0:C < y.$ wf E<<._ . y t t . : : o > . > . v D S.. .. . ..... ........ . .. . ...... . ._ ..... . ..: ......... MoSTE i 86 g 587 2,257 0 248 344 160 69 167 174 2,303 2,316 122 8,834 1. PCD 86 587 99 248 344 160 69 167 38 97 80 80 . 2,055 2. DEOP 30 23 3.2 56 3. OEPP 2,157 136 2,174 2,213 38 6,719 4. Institute of Scientific and 2.4 2 Technological Research 5. Office of Atomic Energy 1.5 2 and Peace Ministry of Public Health 1,146 1,317 . 1,156 33 9 6 35.6 6 14 282 3,998 1. Department of Medical 1,096 2 2 3.2 35 14 1,152 Services 2. Department of Health 50 33 33 9 3.3 0.2 282 410 3. Office of Permanent Sec- 1,282 1,154 2,436 retarv . E . I I . : ; : g 4 t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.... ......... ..... Moind 22 20 53 139 43 395 469 246 20 1,407 1. DIW 22 20 53 20 20 395 469 229 20 1,248 2. Thai Industrial Standard 119 23 142 Institute 3. Department of Mineral 17 17 Ministry otf Transport and 52 51 3.9 107 Telecommunication 1. Department of Land 52 52 Transport 2. Office of Permanent Sec- 51 39 55 retary 12 .A.t MoUA 12 38 17.6 1.5 69.1 1. MoUA 12 38 . . 15 51.5 2. Ubon University 7.6 8 3. Mahidol University - 10 i - 1 0 10 TOTAL (rounded up) 5,948 7,259 6,583 472 447 164 1,193 1,301 2,386 2,391 404 59,051 Annex E International Assistance in the Environmental Sector E nvironmental projects and pro- trend in foreign assistance at a global grams feature in the profiles of level is the importance placed on coop- twenty donor organizations in eration and coordination among do- Thailand. These include: ADB, AusAid nors. Discussions with donor organiza- (Australia), BGR, Brot Fir Die Welt tion representatives revealed that there (Germany). Care International, CIDA are clear advantages as well as reserva- (Canada), CIM, DANCED (Denmark), tions about such coordination. the European Union, France, GTZ Donors are working together to (Germany). JICA (Japan), NEDO, improve coordination on environmental NIDO, DCD (Belgium), Sida, the Thai- imrvcodnaonnevrnetl German Foudaion,d, the Td i- technical assistance, policy advice and German Foundatgon, the Undted KWng- lending to reduce overlap in assistance dom, the UN Agencies, and the World Bnk. 'to certain sectors; to develop and adopt Bank. programmatic approaches for lending A wide range of environmental and that will benefit the country as well as natural resources management issues is ensure the effective use of resources; covered by donor-assisted activities. and to improve and refine the informa- Bilateral donors in particular contribute tion available about activities, experi- substantially towards strengthening the ences and problems faced by various depth and breadth of coverage of envi- donors. The donor community in ronmental areas. Several donor agen- Thailand supports the vision of long- cies pursue long-term strategies within term assistance strategies that are mu- a sector, emphasizing components such tually compatible, build on specific ad- as capacity building, awareness crea- vantages of each donor, and contribute tion, and development of institutional to overall effectiveness of aid. How- maturity and strength. The environ- ever, practical mechanisms for effec- mental assistance strategies adopted tive donor consultation are yet to be provide useful lessons for improving created and successfully implemented the effectiveness of future environ- in Thailand. mental assistance to Thailand. A major 57 58 Tlhailnd Environmi?ient Sector Strategy Note: Building Partnersslips A profile of environmental assistance by the donors is given in Table E-1, while Table E-2 contains summary information about ongoing donor-assisted projects.:9 Table E-1. Donor Activities in the Environmental Sector Donor Organization Major Area of Assistance Number of Projects ADB Integrated water resource management; 5 Solid waste and wastewater manaqement AusAid (Australia) Forest and coastal resource management; 14 Aqricultural research and development BGR Natural resource management; Solid 2 waste manaqement Brot FOr Die Welt Natural resource management and con- 4 servation; Aqriculture sector Care International Integrated natural resource management 1 CIDA (Canada) Natural resource mana-ement 2 _ S ._ _ _ _ _ __ _ _ _ _ _ _ _ _ e a 9 rn t CIM Hazardous waste management; Natural 6 resource management DANCED (Denmark) Natural resource management; Forest re- 17 source management; Solid waste, water and sanitation management; Pollution control; Community-based environmental manaqement EU Environmental Management 2 France Aqricultural research and development 1 GTZ (Germany) Urban environmental management; Solid 13 waste collection and management; Indus- trial pollution control; Renewable energy and enerav efficiency; Agriculture sector JICA ( Japan) Natural resource management; Industrial 10 wastewater management; Integrated water resource management; Air pollution con- trol from traffic sources Aqriculture sector NEDO Industrial pollution control 1 NIDO Water resource management 1 DCD (Belibum) Aaricultural research and development 1 Sida Air qualitv manaqement 2 Thai-German Founda- Micro-finance for agriculture 1 tion United Kingdom Coastal and freshwater resource man- 1 agement The World Bank Coastal and freshwater resource man- 3 agement; Energy efficiency; Clean fuels 39 The tables reflect a preliminary view of international assistance in the environment and natural resources sector. They will be updated in subsequent discussions with the RTG. do- nors, and NGOs. Annex E: International Assistanice 59 Table E-2. Ongoing Donor-Assisted Projects Organization Project Partner Duration ADB Northeast Region Water Supply Molnt, PWA ADB Nong Khai-Undon Thai Water Molnt, PWA Supply Project _ ADB Samut Prakarn Wastewater MoSTE, PCD Management ADB Solid Waste Management MoSTE, PCD ADB Bangkok Metropolitan Region MoSTE, POD Waste Management AusAid Potential Insect Threat to Plan- MoAC, RFD 1999 tations of Acacias and Eucalyp- tus in Tropical Asia w ^Mo^_e_ws > ^s w o.. 0 . .MoAC R D 200 AusAid Genetic Diversity and Propaga- MoAO, RFD 2000 tion of Mangroves AusAid Economic Valuation of the MoUA 1999 Thailand/Australia Collaborative Project funded by ACIAR Stage 11 AusAid Carbon Dynamics, Nutrient Cy- MoAC, RFD 1999 cling and the Sustainability of Cropping and Pasture Systems AusAid Genetic Improvement of Thai MoAC, DLD 2001 Beef Cattle & Buffalo Detection Strain Differentiation for Plant Pathogenic Mycoplasma AusAid Control of Papaya Ringspot Vi- MoAC 2000 rus in Papaya and Cucurbits through Transgenic Resistance AusAid Plant Breeding Strategies for MoAC 1999 Rainfed Lowland Rice in North- east Thailand and Laos AusAid Minimizing Disease Impacts on MoAC, RFD 2000 Eucalyptus in South East Asia AusAid Agrochemical Pollution of Water MoUA 2000 Resources under Tropical In- tense Agriculture Systems AusAid Low Cost Disinfestation Sys- MoAC 2001 tems for Fruit Agriculture Regu- latory Division AusAid Adaptation of Low-Chill Tem- MoAC 2000 perature Fruits to Australia and Thailand 60 Tlhailand E½vilioln,nent Sector Strateg, Note: Building Partnersh7ips Organization Project Partner Duration AusAid Integrated Control of Citrus MoAC 2000 Pests in Thailand AusAid Development of Domesticated MoAC 2000 Strategies for Indigenous Tree Species AusAid Diagnostic Tests and Epidemi- MoUA 2001 ological Probes for Prawn Vi- ruses in Thailand and Australia BGR Environmental Geology for Re- Molnt, MoSTE 1999 gional Planning BGR Site Investigations Waste Dis- Molnd, MoSTE posal Site Brot Fur Die Welt Project for Ecological Recovery 1998 Brot FOr Die Welt Technology for Rural and Eco- 1999 logical Enrichment Brot FOr Die Welt Appropriate Agriculture & Horti- 2000 culture Brot FOr Die Welt Development of Appropriate Ag- 1999 riculture and Natural Resources Care International Integrated Natural Resource MoAC, RFD 1999 Conservation Project CIDA (Canada) Thailand Trilateral Environ- OPM 1999 mental Project CIDA (Canada) Natural Resource & Environ- DPA Group 1999 mental Management Several Thai Ministries CIM Adviser Biological Plant Protec- MoAC tion CIM Director of AEETC MoSTE, DEQP, EU CIM Head of Laboratory Water MoSTE, PCD CIM Adviser Environmental Protec- MoSTE, PCD tion CIM Adviser Management of Haz- MoSTE, PCD ardous Substances CIM Natural Resource Manager and MoUA Ecoregion Coordinator DANCED TRUEPM Project DANCED Support for BMA Improvement BMA 2000 of Solid Waste Collection Man- agement Annex E: Ihternatiowanl Assistance 6] Organization Project Partner Duration DANCED Environmental Strengthening of BMA 1999 BMA DANCED Huai Kha Khaeng Complex: In- MoAC 1999 tegrated Conservation and De- velopment DANCED Save Use of Pesticides MoAC 1999? DANCED Sustainable Agriculture MoAC 2000 DANCED Sustainable Shrimp Aquaculture MoAC 2003 DANCED Upper Nan Watershed Man- MoAC 2000 agement DANCED Forest Genetic Resources Con- MoAC 2000 servation and Management DANCED Cleaner Technology Capacity Molnd, DIW 2001 Building in DIW DANCED Urban Community Environ- Molnd, DIW 1999 mental Fund: UCEF DANCED Energy Efficiency Promotion for MoSTE SMEs DANCED Environmental Management MoSTE Samut Prakarn DANCED Samut Prakarn Waste Water MoSTE, DIW 1999 Management DANCED Songklah Lake Environmental MoSTE, OEPP Management DANCED Community Forestry Training MoUA 2000 Development Support: RECOFTC Denmark Supply of a Marine Research MoAC, RDF 2000 Vessel for Phuket Marine Bio- logical Center EU EU-ASEAN Programme: MoSTE, DEOP AEETC EU With CDG Promotion for the Introduction of AIT, ASEP Environmental Management Programme Systems in Thai Industry France Oriented Research on Agrarian MoUA 2000 System GTZ Biological Control of Rodents MoAC 2001 GTZ Appropriate Regulatory Meas- MoAC ures & Policy Reform for Pesti- cide Risk Reduction GTZ Environmental Advisory Assis- Molnd, DIW tance for the Industry 62 Tlai/and EnlviroInImIelnt SectoI Strateg Note: Budiing Partnlerships Organization Project Partner Duration GTZ Air Pollution Control Molnd, DIW GTZ Urban Environmental Manage- Molnt ment GTZ Thai German Energy Efficiency MoSTE Promotion GTZ Commercialization of Solar En- MoSTE ergy Applications GTZ Chemicals Management MoSTE GTZ Environmental Technology MoSTE, PCD, Competence MoUA GTZ RISE AT MoUA GTZ Solid Waste Management GTZ Disaster Management for the OPM, NESDB Transportation of Hazardous Substances GTZ Transport Policy and Planning ESCAP Assistance JICA Soil Management Technique MoAC JICA Automotive Research for Envi- Molnd 2000 ronmental Improvement JICA Industrial Water Technology In- Molnd, DIW 2000 stitute JICA Automotive Fuel Research Proj- Molnd, DIW 2000 ect for Environmental Improve- ment JICA Training Center for Sewage Moind, PWA Works JICA Country Training Program on Molnd, MWA, Water Supply Technology PWA JICA National Waterworks Technol- Molnd, MWA, ogy Training Institute PWA JICA Training for Sustainable High- MoUA 2001 land Agriculture Development NEDO Cleaner Production NIDO River Management Planning MoSTE, PCD DCD (Belgium) Improvement of Tapioca Starch 1999 Production Sida Air Quality Management MoSTE Sida Enhancement of the Air Quality MoSTE 2000 Management Project to Four Regional Nodes Anniex E: Ihteniational Assistance 63 Organization Project Partner Duration Thai-German Foun- Micro-Credit Projects in the Molnt dation Field of Integrated Farming, Fruit Tree Planting United Kingdom South East Asia Regional: MoAC Aquatic Disease Control World Bank Clean Fuels MoSTE World Bank Natural Resources Strategy MoAC World Bank EGAT MoSTE R MYANMAR A- MYANMAR MAR ^ , ,,3.', CAMI:: 0 ; P C A M~~~~~~~~~~~~~~~~~~~~~~~ 50 10 ID KILOETR e < 0 5 0 ;~ 0 5 0 M Io 5LA OLOEPS : 0 0 t tt 0:~~~~~~~UBA, ' APROTECTED AREAS DEMOCR ADAPPULTIO 0 , ; .~~~~~~~~~~~~~~~~~- . ® NATTONAL 00ITAL) g 1 8a> I6 f~~~~~~ o AL 500 ~~~~~~MT3II-X ~~~~~~ W ~ ~ ~ ~ L¸5 RIVERSKLOETR '~ ~' - . - INTERNATIOI. 1 00 MILRES z~~~~~~~~~~~~~~~~~~~'J ~ '8 CHINA MYANMAR A- I THAILAND E - CAMBODIA DEMOCRATIC - -~~~~ ~ ~ - MYANMAR 0 50 100 150 KILOMETERS 0 50 100 MILES - - F 0 10 [ 0 , a: 1 ~~~~~~~~URBAN PROTECE ARE[AS A I _A,0 I - - / 1 sFt INTERNATIONAL BOUNDARIES o A~~ ~~~~~~~~~~~~~~~~~~~~~~~~~OORPY MYANMAR ' VI ETNA ! ^ | | S | ~~~~~~~~~~~~~~~~~~~~~~~~~. THAILAIND ' \ LAO PEOPLE'S >CAOD DEMOCRATIC p0 4g-; iTHALANDIC to -- f f 41 t ' 0 - Ee ' | ENVIRONMENTALLY SENSITIVE| M A :R- ' ~ 'F'*< l4- - ;- -M ;, r 4 5 ~-'| AREASANDHOTSPOTS IID I~ 5 K1 IOME*nza. MALAYSIA | _._ INTERNATIONAL BOUNDARIESI O'~7 AREAS AND HOT SPOTS 000~~~~~~~~~~~~~~~~~~~RTCE RA THE WORLD BANK MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT 1818 H Street, N.W. Washington, D.C. 20433 Rama VI Road, Raithevi U.S.A. Phayathal, Bangkok 10400 Telephone: 202-477-1234 Thailand Facsimile: 202-477-6391 Telephone: 662-246-0064 Telex: MCI 64145 WORLDBANK Facsimile: 662-246-8106 MCI 248423 WORLDBANK Internet: http://www.worldbank.org 14th Floor, Tower A Diethelm Towers 93/1 Wireless Road Bangkok 10330 Thailand Telephone: (66-2) 256-7792 Facsimile: (66-2) 256-7794/5 Cover design by Beni Chibber-Roo