69778 v1


                    THAILAND — HIGHWAYS MANAGEMENT PROJECT
                                    P075173
                                LOAN NO.4721-TH
                                       Restructuring Paper

1.      Proceeds for Thailand -- Highways Management Project, Loan No. 4721-TH, P075173
will be reallocated as follow:

Category of     Current      Disbursed and   Undisbursed    Request    Proposed      Percentage
Expenditure    Allocation     Documented      Balance      Increase/      Final          of
                (in US$)        (in US$)      (in US$)     Decrease    Allocation    Financing
                                                                        (in US$)      Current
                                                                                    (No change)
  Works         79,620,000     79,178,717       441,283    (441,283)   79,178,717       55%
Consultants’     4,670,000      4,668,651         1,350      441,283    5,111,283       92%
 Services
  Total         84,290,000     83,847,368       442,633           0    84,290,000


2.     The project implementation progress for activities under Loan 4721-TH is near
completion, the project is rated unsatisfactory due to slow procurement process for activities
under the additional financing (Loan 7775-TH). All civil works have been completed with the
remaining fund of US$441,283 under this category. All periodic maintenance works were
completed by September 2011 and the International Procurement Consultant (IPC) has been
hired since March 9, 2011. The only remaining activity is Consultancy for the Design of
Performance-Based Contracts (PBC), estimated at US$350,000.

3.      The proposed reallocation is necessary to complete the remaining consultants’ services
per client’s request.