PROJECT DEVELOPMENT LOAN

Evaluation covers the period 3/74-6/79 and is based on interviews with RTG and USAID officials. Despite start-up difficulties, the project is considered a marked success in terms of the usefulness of the studies" findings. Implementation of the feasibility studies was considerably delayed because of the unsettled political situation and the small size of the loan which decreased the interest of the National Economic and Social Development Board (NSDB), the implementing agency, in the studies. Subcontracting was also delayed since loan proceeds were only to finance U.S. consultants instead of less expensive local consultants more committed and more widely knowledgeable of the local setting. To expedite implementation, the loan agreement was amended to permit the use of the loan for local consultants. NSDB subcontracted eight water resource studies including development of a water resources information system, water resources management organization, and potential water resources and programs for the Upper Ping River Basin. The Provincial Electrification Administration subcontracted two feasibility studies on accelerated rural electrification which has led to subsequent loans from Saudi Arabia, Kuwait, and the World Bank. The Board of Industry also subcontracted prefeasibility studies of agro-industries involving such sectors as meat, maize, rubber, and leather products, as well as seed oils and processed food for export. As a result, some 2,970 requests for reports on these products came from embassies, trade and industrial associations, and banks. Difficulties were encountered in obtaining financial and logistical resources for reproducing the reports. In addition, since the reports were all in English, small Thai entrepreneurs could not translate them. For future, similar projects, it is recommended that both local and international cost financing be permitted and that sector-wide -- and not just project-specific -- feasibility studies be allowed.