Aid effectiveness and public-private partnership:

Transcript:Aid effectiveness and public-private partnership::
Aid effectiveness and public-private partnership: Thailand’s development assistance in lao pdr and cambodia Siriporn wajjwalku Thammasat university 2014 australasian aid and international development policy workshop 13-14 february, 2014 Canberra, australia Thailand’s international development cooperation policy and institutions Thailand as an emerging donor 1. Policy of being donor since 2003 2. Institutions - Thailand International Development Cooperation Agency (TICA) - The Neighboring Countries Economic Development Agency (NEDA) Outline of the presentation Introduction NEDA’s projects in Lao PDR and Cambodia: Some observations NEDA and involvement of private sector in aid process NEDA and PPPs: The possibility? introduction The research project titled “Institutional Arrangement and Aid Effectiveness: The relations between government agency and private sector” to examine NEDA’s existing aid process in Lao PDR and Cambodia focusing on the involvement of for-profit private sector to explore the possibility to promote PPPs as a tool to involve for-profit private sector in aid process Neda’s projects in lao pdr and cambodia Amount of projects Lao PDR: 6 projects Cambodia: 1 project Sector : infrastructure Road Railway Airport Drainage pipeline Type of aid: tied loan Modality : bilateral and demand driven NEDA projects in Laos (1) Neda projects in laos (2) Neda project in cambodia Neda’s project in lao pdr and cambodia: budget Neda’s projects: proportion of budget spent for thai goods and services (contractor for construction) Neda’s projects: proportion of budget spent for thai goods and services (contractor for consultancy) NEDA’s projects and observations Purposes: economic cooperation, mutual benefits, and cordial relations Size: small-scale in terms of budget and project size Sector: infrastructure (not public services) Highly concentration in terms of private sector (company) involvement Highly economic beneficial to donor in terms of consultancy and construction Highly dependence on donor in terms of consultancy and construction Neda’s aid process and challenges Unbalance between demand and supply  bigger demand Not enough incentive for private sector due to non-economic scale of project in terms of budget and size Lack of coordination between public-private sectors in aid process Limited capacity of private sector in developing partners, particularly the procurement Proposed alternative NEDA’s main challenges 1. Budget size 2. Efficiency and Transparency Proposed alternative - the involvement of for-profit private sector - the promotion of PPPs “PPP” defined by international organization (a policy guideline) Organization for Economic Co-operation and Development (OECD) Public-Private Partnerships (PPPs) are long term agreements between the government and a private partner whereby the private