WB: Thailand needs Bt756bn for flood rehabilitation

BANGKOK, November 28 (TNA) - The US-based World Bank has estimated that Thailand needs some 756 billion baht for its post-flood rehabilitation. Dr. Kirida Bhaopichitr, Thailand-based World Bank economist, said on Monday a survey in 26 flooded Thai provinces for three weeks, from November 7-25, found that the country's flood-borne economic losses and damages had amounted to 1.357 trillion baht, comprising some 710 billion baht losses and 640 billion baht damages. Dr. Kirida revealed that the flood-borne losses and damages in the Thai private sector alone were estimated at 1.275 trillion baht, accounting for 94 per cent, while those in the public sector were assessed at 81 billion baht or 6 per cent, and that the lion’s share of the losses and damages, worth about one trillion baht, rested with the local industrial sector. Dr. Kirida acknowledged that the flood-borne losses and damages have caused the World Bank to change its projection on Thailand's economic growth this year, from 3.6 per cent to 2.4 per cent, and that the country's gross domestic product (GDP) should, however, grow by 4 per cent next year and by 5.6 per cent in 2013, boosted by rehabilitating activities of flood-stricken manufacturing plants and households. According to the World Bank economist, Thailand's post-flood rehabilitation over the next two years will cost about 756 billion baht, comprising 520 billion baht in the local private sector and 235 billion baht in the public sector, and the local financial and banking sectors will need to prepare the lion’s share of the fund to provide some 429.54 billion baht loans to borrowers in both the local public and the private sectors. Meanwhile, Annette Dixon, World Bank’s Director for Thailand, said that the Thai economy has remained attractive for international investors; so, they will likely maintain their production bases in the country. Annette recommended, however, that Thailand increase its investment in infrastructure development projects from 20 per cent to 30 per cent of the country's GDP, especially in water management systems, to prevent repeated flooding crisis, admitting that pending political problems could have long-term negative impacts on the development of Thailand. (TNA)