58086

            KINGDOM OF THAILAND: COUNTRY FINANCING PARAMETERS
                            Date: November 15, 2010


The Country Financing Parameters for the Kingdom of Thailand set out below have been approved
by the Regional Vice President, East Asia and Pacific Region, and are being posted on the Bank's
internal website.

             Item                  Parameter                      Remarks/Explanation
A. Cost Sharing. Limit on        Full financing,   While continuing to emphasize borrower
the proportion of individual     excluding         commitment and ownership of individual projects,
project cost that the Bank       taxes             the Bank would finance all cost except taxes
may finance.                                       unless specifically requested by the client on case
                                                   by case basis. The upper limit on cost sharing will
                                                   not be applied differently in different sectors.
                                                   However, specific arrangements would be
                                                   determined for individual projects, taking into
                                                   account project specific considerations. As a
                                                   general practice, counterpart funding will be
                                                   encouraged.
B. Recurrent Cost                No country-       No country-level limit on Bank financing of
Financing. Any limits that       level limit       recurrent costs is proposed. On a project by
would apply to the overall                         project basis, the Bank may finance recurrent costs
amount of recurrent                                after careful consideration of the sustainability of
expenditures that the Bank                         project achievements and implied future budgetary
may finance.                                       outlays within the overall context of Thailand's
                                                   aggregate fiscal position and prospects.
C. Local Cost Financing.         Yes               The requirements for local cost financing are met.
Are the requirements for
Bank financing of local
expenditures met, namely
that: (i) financing
requirements for the
country's development
program would exceed the
public sector's own resources
(e.g., from taxation and other
revenues) and expected
domestic borrowing; and (ii)
the financing of foreign
expenditures along would not
enable the Bank to assist in
the financing of individual
project.
D. Taxes and Duties. Are         Yes               According to the Public Debt Management Act
there any taxes and duties                         B.E.2548 (2005)" section 22, taxes and duties will
that the Bank would not                            be financed by the client for loan financed
finance?                                           projects.