Document of

The World Bank

FOR OmFCAL USE ONLY

Repowt No. P-5820-TH

MEMORANDUIM AND RECOMMENDATION

OF THEC

4. ~~~~~~~PRESIDENT OF THE

INTERNATIONAL BAN FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN THE AMOUNT EQUIVALENT TO US$109.0 NILLION

TO THE

MDTROPOLITAN ELECTRICITY AUTHORITY

WITH THE GUARANTEE OF THE KINGDOM OF THAIAN

FOR A

DlISTRIBUTION SYSTEM AND ENERGY EFFICIENCY PROJECT

APRIL 2, 1993

This document has a restricted distribution and may be used bv recipients only in the performance oftheir official duties. Its contents way not otherwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

(As of April 1992)

Currency Unit - Thai Baht (B)US$1 - B 25.5Bl - US$0.0392

WEIGHTS AND MEASUES

NW - megawattkWh - kilowatt-hourkV - kilovolt (1,000 volts)km - kilometer

ABBREVIATIONS AND ACRONYMS

ADB - Asian Development BankDSM - Demand Side ManagementBOAT - Electricity Generating Authority of ThailandCDP - Gross Domestic ProductGEF - Global Environmental FacilityGET - Global Environment Trust FundNEA - Netropolitan Electricity AuthorityP.a. - per annumPEA - Provincial Electricity Authority

FIS emL 30

October 1 to September 30

FOR OMCLAL USE ONLYTHNDL

DISTRIBUTION SYSTEM ANDEMEROY EFFI£IENCY PROJECT

Loan ad Projact Sumary

Bo2rrower: Metropolitan Electricity Authority (MEA)

Guaran = : Kingdom of Thailand

Amount: US$109 million equivalent

Le-nding Terms: Repayable over 17 years, including four years ofgrace, at the Bank's standard variable interestrate.

Financing Elan:

I. Distribution System Improvement and Expansion

Local Foreiga o2tal--- (US$ million)----

IBRD 0.0 109.0 109.0ADB 0.0 109.0 109.0Borrowings 113.4 70.6 184.0MEA 147.6 0.0 147.6

Total 2610 8

II. Promotion of Electricity Energy Efficiency (GEF)

Iocal Foreign Total-----------US$ million-----------

GET 5.5 4.0 9.5Government of Australia 2.0 4.0 6.0OECF/A 2.5 22.5 25.0Kingdom of Thailand 148.5 0.0 148.5Total 158.5 0.189.0

/_ The OECF loan is expected to be negotiated in June 1993.

Rate of Return: 13X (on MEA's investment program)

Staff AppraisalRegort: No. 10705-TH

IBRD No. 23925

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE IBRD TO THE EXECUTIVE DIRECTORS

ON A PROPOSED LOANTO THE METROPOLITAN ELECTRICITY AUTHORITY

WITH THE GUARANTEE OF THE KINGDOM OF THAILANDFOR A DISTRIBUTION SYSTEM AND ENEP'Y EFFICIENCY PROJECT

1. I submit for your approval the following memorandum andxecommendation on a proposed loan to the Metropolitan ElectricityAuthority, with the guarantee of the Kingdom of Thailand, for US$109.0million equivalent to help finance a Distribution System and EnergyEfficiency Project. Ths proposed loan would be for 17 years including fouryears of grace at the Bank's standard variable interest rate.

2. Bakground. The electric power sector in Thailand is served bythree utilities: (a) the Electricity Generating Authority of Thailand(EGAT) which is responsible for generation and bulk power transmission; (b)the Metropolitan Electricity Authority (MUA) which is responsible for powerdistribution in Metropolitan Bangkok; and (c) the Provincial ElectricityAuthority (PEA) which is responsible for powtr distribution in the rest ofThailand. The Bank's involvement in the Thai power sector has so far beenwith EGAT and PEA only.

3. Since 1987, Thailand has been experiencing an economic boom, withGDP growth averaging 9X per annum. The outlook is for continued robustgrowth over the next several years. The rapid economic growth has resultedIn a concomitant growth in power demand, averaging 152 p.a. in the pastthree years. Demand for electricity is forecast to continue to grow at arate of about 8X p.a. through the 1990s. All three utilities are facedwith the task of meeting the rapid demand growth; MNA specifically, facesthe challenge of meeting the intensive power needs of the country'sprincipal administrative, commercial and industrial center of Bangkok,where infrastructure is already under heavy strain.

4. To meet the rapidly increasing demand for power, the Government'ssector strategy calls for: (a) a substantially increased program ofinvestments in the power sector; (b) involvement of the private sector infunding part of the large power sector investments; (c) pricing ofelectricity close to long run marginal cost; (d) a strong thrust towardsenergy conservation; and (e) an increased emphasis on environmentally soundand sustainable development.

5. The Government has taken several actions towards theprivatization of EGAT, notably the passing of an amendment to the EGAT Act

* allowing EGAT to establish subsidiary companies, a portion of which wouldlater be sold to the public. EGAT has already created a subsidiary companyand is proceeding with the necessary next steps for future listing of thecompany on the Stock Exchange. EGAT also expects to finalize contracts forpurchase of about 300 MW of power from private power producers by the endof 1994. To facilitate private sector participation in MEA's operations,the National Legislative Assembly has voted to amend the MUA Act to enableMNA to establish subsidiary companies in such areas as maintenance,construction and meter reading; a part of these companies couldsubsequently be sold to the private sector. NUA will soon be urdertaking astudy to identify and evaluate possibilities to privatize specific segments

- 2-

of its operations which are not part of its core businet which could beoperated more effectively by the private sector. KEA as. recognizes thegrowing importance of environmental and safety aspects in the design of adistribution system that would be supplying an increasingly congested areaof the country. The proposed project Includes a study on enhancingenvironmental and safety considerations in system design and operation.

6. On the snvironmental front, the Government has recently passod anew Act, the 'T"ihancement and Conservation of National EnvironmentalQuality Act,' which vests greater powers and responsibilities with theNational Environmental Board and recognizes the role of NGOs inenvironmental management. The Act also establishes a Central EnvironmentalFund for concessional financing of environment-related activities proposedby private and public proponents. In the field of energy conservation, theGovernment has recently passed the Energy Policy Council Act, which createsa high-power Energy Policy Council to oversee and guide all energy-relatedactivities, and the Energy Conservation Promotion Act, which legislatesseveral energy conservation measures and establishes an Energy ConservationFund financed out of surcharges on petroleum and electricity. TheGovernment has also approved a five-year Demand-Side-Management Master Planfor implementation by the three Thai utilities, EGAT, MEA and PEA.Successful implementation of this plan would lay the foundation forefficient utilization of electricity in the country. The Bank has beenactively engaged in the development of this plan and has been instrumentalin securing funds from the Global Environmental Facility in support of thePromotion of Electricity Energy Efficiency* component of the proposedproject. This component was appraised in December 1'92.

7. Rationale for Bank Involvement. The proposed project isconsistent with the Bank's country assistance strategy, which has givenpriority to lending for the energy and infrastructure sectors. Through itssustained involvement over a number of years, the Bank has contributedsignificantly to the development of a sound program of investments andpolicies in the energy sector in Thailand. Not only has the Bank helpedfinance the substantial investments required in the power sector. but Bankadvice and assistance have helped the Government address issues such as:least-cost investment programs; energy pricing; and increasing emphasis onenvironmental aspects. Over the years, the Bank has helped in thedevelopment of EGAT and PEA as competent, well-managed and financiallysound entities. Through its involvement with the Thai power sector, theBank has helped the Government formulate strategies to privatize specificutility operations, and has worked with EGAT to prepare for itscorporatization and privatization. The proposed project would extend theBank's relationship to the remaining utility in the power sector. It wouldcontribute towards the funding of NEA's substantial 5-year investmentprogram, and enable the Bank to assist MEA with achieving its financialtargets, privatization objectives, and environmental and safety goals. TheBank's involvement with all three power utilities is particularly importantat this stage as it would facilitate coordinating the joint effortsexpected of all three utilities in Thailand's Demand-Side-ManagementProgram.

8. Project Objectives. The main objectives of the proposed projectare: (a) to improve and expand the distribution system of NEA in order tomeet the expected rapid Increase in demand; (b) to sustain the efficiencyof MEA's operations in the face of a rapid increase in the scope andcomplexity of its business; (c) to strengthen the utility's financial and

management information systems; (d) to irvestigate opportunities forprivatization of some of MEA's activities; (e) to incorporate increasedlevels of safety and environmental acceptability in the utility's designand operations practices; and (f) to introduce demand-side managementincluding the promotior of electricity energy efficiency in the Thai powersector.

9. Project Description. The proposed project would h&ve two majorcomponents:

I. Distribution System Improvement and Expansion, which wouldcover FY1993 commitments for the expansion of MEAis distributionsystem and would comprise: (1) construction of subtransmissionand distribution facilities including: (a) 230/69 kV transmissionsubstations and transmission lines; (b) 115 kV, 69 kV and 24 kVtransmission and distribution substations and associated lines;(c) conversion from overhead to underground distribution inheavily congested areas; and (d) miscellaneous equipment andmaterials; and (2) three studies regarding: (a) formulation ofstrategies for privatization of some of MEA's activities; (b)design and implementation of subsystems in the integrate4financial and management infcrmation system; and (c)environmental and safety considerations in system design.

1I. Prootion of Electricity Energy Efficienc. formulated withthe assistance of a UNDP-funded PRIF Study and supported by theGlobal Environmental Facility (GEF). This would include the FiveYear Demand-Side-Management Plan, amounting to US$189 million,approved by the Government for implementation by the Demand-SideManagement Organization being set up within EGAT. The savingstargets for the component are 1,427 GWh of electricity per annumand 238 MW by the end of 1997. The component, which is describedin detail in Memorandum of the Director (MOD) number 11543-TH,would have a four-pronged approach: (a) provision of user andmanufacturer incentives and consumer education to influencepractices and attitudes toward energy efficient technologies; (b)development of efficiency standards to exercise control andmonitor efficiency improvements; (c) development and promulgationof building and appliance codes to allow the enforcement ofminimum standards; and (4) continued pursuit of technologicalimprovements and their adaptation to Thai conditions.

Specifically, the component would consist of the followingelements: (a) creation of an organizational unit within EGAT toplan, develop and implement a broad menu of DSM programs acrossall sectors, along with providing for the required staff trainingand capability building; (b) development and implementation oftechnological and market intervention strategies in theresidential, commercial and industrial sectors of the economy ofThailand; (c) development of funding and financial mechanisms forassuring market acceptance of the various energy efficiencyprograms; (d) development and promulgation of necessary Codes andStandards to support higher levels of equipment efficiency in allsectors; (e) establishment of testing laboratories and theassociated processes of equipment testing and ratings; (f)

- 4 -

development of project evaluation and monitoring systemsincluding sector - specific evaluation and monituring protocols;(g) development and training of Energy Service Companies and DS5Program lontractors in the public and private sectors; (h)integration of supply-side and demand-side planning andincorporation of environmental externalities in the electricityplanning process; (i) development of a Direct Utility LoadControl program; and (j) undertaking special studies as needed tomaintain awareness of emerging technologies with relevance to theThailand environment.

10. Total financing required for MEA's investment program over theperiod 1992-96 is estimated at about US$1,600 million, with a foreignexchange component of US$850 million. Total financing required for theproject (i.e., FY1993 investment commitments) is US$549.6 million with aforeign component of US$288.6 million. The proposed Bank loan of US$109.0million -would finance 201 of the total project financing required and 38Xof the foreign expenditures. Retroactive financing of up to US$10.9million would be provided for project related expenditures incurred afterApril 10, 1992. A breakdown of costs and the financing plan is shown inSchedule A. Amounts and methods of procurement and disbursements, and thedisbursement schedule are shown in Schedule B. A timetable of keyprocessing events and st.atus of Bank Group operations in Thailand are givenin Schedules C and D, respectively. The Staff Appraisal Report, No. 10705-TH, dated April 2, 1993 is '.eing distributed separately.

11. Prolect Implementation. KEA will be responsible for implementingthe project. MEA has in the past liplemented several large distributionprojects, including some financed by the Asian Development Bank. The Bankloan proceeds would be disbursed against the cost of: (a) equipment,materials and civil works procured under International Competitive Bidding(ICB) procedures; (b) materials and equipment procured through LCB, localor international shopping; and (c) consulting services.

12. Project Sustainability. The necessary conditions exist to ensurethe financial and institutional sustainability of the project; theframework, including the project drsign and relevant organizationalstructure, is in place. The provisions for cost recovery are adequate toensure the project's operational sustainability. MEA is a well-run stateenterprise which has managed similar operations throughout its 34 yearhistory. Project sustainability for the Electricity Energy Efficiencycomponent would be ensured through the adoption of a comprehensive andintegrated approach in program design and the policy commitment fromGovernment.

13. Agreed Actions. The main areas in which agreement has beenreached are: (a) annual Bank review of MEA's investment plans; (b)financial covenants for KEA, including the requirement that it (i) achievea 251 self-financing ratio (and that tariffs would be increased asnecessary to meet this covenant); (ii) maintain a debt/equity ratio notexceeding 1.5/1 and a debt service coverage ratio of 1.5 times; and (c)comply with the Bank's environmental guidelines as appropriate for theproject.

- 5 -

14. Environmental ImRlications. The project is not expected to haveany significant adverse impact on the environment. Line and substationdesigns would follow internationally-accepted safety practices which have aproven record in Thailand. The lines vould be routed along existinginfrastructure, including existing rights-of-way and in many cases onexisting supports, and are not expected to intrude into environmentallysensitive areas. Moreover, the project provides for identification andsubsequent implementation of measures to improve design and operationalsafety and enhance environmental acceptability. Three of the subprojectsinvolve conversion of overhead to underground systems in highly congostedareas. The Environmental Impact Analyses of the components that would befinanced by the proposed Bank loan have been reviewed at appraisal andfound to be satisfactory.

15. The Electricity Energy Efficiency component of the project wouldmake a positive contribution to the global environment by reducing theemission of green-house gases by deferring or eliminating the need to buildfossil fuel- fired power plants.

16. Benefits. The continuing growth in electricity demand inMetropolitan Bangkok has made it imperative for REA to expand and upgradeits system to deliver power to new customers while maintaining systemreliability, service quality and distribution losses at optimwu levels.The implementation of the project would help ensure the country's continuedeconomic growth by facilitating the development of its principaladministrative, commercial and industrial center of Bangkok. The projectwould promote safety and environmental consciousness in system design andoperation. It would also provide for the investigation of opportunitiesfor privatization of some of MEA's operations, and would strengthen MEA'sfinancial and management information systems. Further, the ElectricityEnergy Efficiency component of the project would introduce demand-sidemanagement and the promotion of electricity energy efficiency in the Thaipower sector. This activity would, over the years, eontribute to moreefficient utilization of the country's energy resources. The proposed DSMcomponent would result in: (a) building of institutional capability in theThai electric power sector and the energy-related private sector to delivercost-effective energy services throughout the economy; (b) development,manufacture and adoption of energy-efficient equipment and processes withinthe country; (c) demonstration effect for utilities of other developingcountries; and (d) reduction in emissions of green-house gases in a costeffective manner.

17. Risks. The Distribution System Improvement and Expansioncomponent of the project does not face any significant risks. The detailedplanning and design of the distribution system expansion has already beencarried out. Land for the new substations and right of ways for thetransmission lines are already available. Given MEA's experience and trackrecord, the risk of implementation delays (which could affect progress ofindustrial and comnercial development in the metropolis) is minimal. Therisk of load growth not materlalizing as forecast is a'so minimal, giventhe development potential of the area. Adjustments in investments could bereadily made should variations in demand projections so dictate.Furthermore, the project returns are robust enough to maintain its economic

- 6 -

viability at slower than anticipated growth '.n energy sales, or higher thanestimated capital costs.

18. The Electricity Energy Efficiency component of the project facesthree main categories of risk: institutional, technological, and market.If the DSK organization is not adequately staffed, the savings targets areat risk. However, the commitment of EGAT and the DS4 subcommittee willmitigate much of this risk. There is a degree of technological risik in thelighting area, because of the high ambient air temperatures in Thailand.Testing will be conducted to identify any potential problems related to thehigher temperatures. In addition, although the lack of effective operationand maintenance practices could result in the degradation of equipmentperformance and efficiency, the project provides for training andassistance in this area. Finally, the project risks some lack of interestin the DSM programs. If the market does not respond to the incentivesoffered, the savings' targets may not be achieved. To mitigate this,program incentives will be tailored to meet individual customers' neads.

19. In addition to financial incentives to overcome market barriers,the programs include design features that address other significantbarriers: (a) marketing to increase public awareness; (b) training toincrease professional expertise; (c) technical assistance to facilitatecustomer participation; and (d) steps to assure quality control. Byworking with international DSM professionals, it would be possible to adaptinternational experience to the Thai situation. By monitoring andevaluation on an on-going basis, timely adjustments could be wade toimprove program performance.

20. Reconendation. I am satisfied that the proposed loan wouldcomply with the Articles of Agrsement of the Bank and recommend that theExecutive Directors approve it.

Lewis T. PrestonPresident

Attachments

Washington, D.C.April 2, 1993

-7-

Schedulil APage 1 of 3

DISTRIBUTION SYSTEM AnENERlY EFFICIENCY PROJECT

Estimated Costs and Financinz Plan

I. Distribution System Improvement and Expansion

Estimated CostLocail Forelg Total-(US$ million) ----

Bank-Financed ComponentsSubstations 10.9 42.0 52.9Transmission Lines 7.8 25.0 32.8Overhead-UndergroundConversion 7.0 26.4 33.4

MisC. Distribution Items 1.0 2.0 3.0Consultancy 0.1 0.4 0.5Duties and Taxes 16.9 0.0 16.9

Total Bgse Cost 43.7 25.8 139.5

COntiag2MIAMPhysical 2.1 4.6 6.7Price 8.0 9.9 17.9

Total Cost 3| 110.3 164.1

Non-Bank- Financed Cgmoonents

total Cost 19982 172.6 372.4

Total Project Cost 253.6 282.9 536.5

Interest during construction 7.4 L 1i.L

* Total Financing Required 261.0 288.6 549.6

-8

Seheduls APage 2 of 3

II. Promotion of Electricity Energy Efficiency (GEF)

Estitmaed CostLoc41 Fsref,g Toa--------(US$ million)--.....

Project Implementation

Residential SectorLighting /A 61.1 4.4 65.5Air conditioning 2.3 0.5 2.8Refrigerators 5.2 0.5 5.7

Commercial SectorLighting 25.0 2.9 27.9Buildings 9.3 1.9 11.2

Industrial Sectormotor Systems 15.0 2.8 17.8Lighting 1.0 0.0 1.0

Laboratory and Testing andMonitoring Equipment 0.5 3.5 4.0

Consulting Services 1.0 3.0 4.0

Training 2.0 3.0 5.0

Public Relations 8.0 1.0 9.0

DSM Administrationsalaries 10.5 0.0 10.5Office Set Up 1.5 0.0 1.5Computer Systems 0.0 2.0 2.0Vehicles 0.0 1.0 1.0

Program Monitoring and EvaluationBy DSMO 6.1 2.0 8.1By Independent Consultants 0.0 0.5 0.5

Contingencies (overall) 10.0 1.5 11.5

Total 158.5 Icue 189l

/^Includes lighting for small comesrcial sstablisbments

-9

SeboYle APage 3 of 3

Finanninu Plan':

I. Distribution 8ystem Improvement and Expansion

Local Fgroigp Total.....- (USM million) --------

Proposed World Bantk Loan 0.0 109.0 109.0Asian Development Sank 'oan 0.0 109.0 109.0Other Borrowings 113.4 70.6 184.0Netropolitan Electricity Authority 147.6 0.0 147.6

Total 261.0 288.6 549.6

II. Promotion Of Electricity Energy Efficiency (GEP)

The total cost of this plan is US$189.0 million, which would befinanced as follows:

Local Foreign Total-----------US$ million-

GET 5.5 4.0 9.5Government of Australia 2.0 4.0 6.0OECF /A 2.5 22.5 25.0Kingdom of Thailand 148.5 0.0 148.5Igtal 158T5 Jn, 189.0

jThe OECF loan is ex-t^jeted to be negotiated in June, 1993.

- 10 -

Schedu3lePage 1 of 4

THALND

DISTRIBUTION SYSTEM AND ENERGY EFFICIENCY PROJECT

Procurement MetbodiJk(US$ million)

I. Distribution System Improvement and Expansion

Project Procurement Method TotalComponent ICB LCB Other /s N.B.F./k Cost

Works

Substations 3.4 0.0 0.0 10.3 13.7(2.3) (0.0) (0.0) (0.0) (2.3)

Transmission 3.1 0.0 0.0 7.3 10.4lines (2.2) (0.0) (0.0) (0.0) (2.2)

Overhead/Undgr.conversion 6.8 0.0 0.0 2.6 9.4

(4.7) (0.0) (0.0) (0.0) (4.7)

Goods

Substations 48.0 0.0 0.0 9.6 57.6(43.5) (0.0) (0.0) (0.0) (43.5)

Transmission 28.2 0.0 0.0 5.3 33.5lines (26.8) (0.0) (0.0) (0.0) (26.8)

Overhead/Undgr.conversion 29.7 0.0 0.0 4.3 34.0

(26.4) (0.0) (0.0) (0.0) (26.4)

Misc. Items 0.0 1.0 4.0 0.0 5.0(0.0) (0.5) (2.5) (0.0) (3.0)

Consultingservices 0.0 0.0 0.5 0.0 0.5

(0.0) (0.0) (0.1) (0.0) (0.1)

Total 119.1 1.0 4.5 39.4 164.1(105.9) (0.5) (2.6) (0.0) (109.0)

NBF: Not Bank-Financed

/a Refers to procurement through International and Local Shopping and toprocurement of consulting services.

/k Refers to duties and taxes, engineerlng/administrative overheads andconstruction through forced account.

Note: Figures in parentheses indicate financing from the Bank loan.

- ii -

Schedule-BPage 2 of 4

II. Promotion of Electricity Energy Efficiency (GEF)

Procurement MethodComponent ICB LCB Others/A N.G.F./b Total

Goods 3.0 4.0 1.0 87.4 95.4(2.0) (2.5) (0.5) (5.0)

Incentives 0.0 0.0 0.0 29.3 29.3

Services includingmarketing, eng'g/ 0.0 7.0 1.0 29.3 37.3architectural design (4.5) (0.5) (5.0)installation, testing,monitoring andevaluation

Consultancies 0.0 0.0 6.0 6.5 12.5including technical (5.5) (5.5)ssistance andtraining

DSMO Admin. expenses 0.0 0.0 0.0 14.5 14.5

total 3.0. 11.0 8.0 167.0 189.0(2.0) (7.0) (6.5) (0.0) (15.5)

/& Refers to procurement through Local and International Shopping, LimitedInternational Bidding and procurement of consultancies including technicalassistance and training.

/ Refers to items not financed by the GET and GOA funds.

. 12 -

Schedule APage 3 of 4

Disbursement

I. Distribution System Improvement and Expansion

X ofExpenditures

CateggKy Amount to be Financed(US$ million)

Equipment and materials 95.0 1002 of foreign expendituresfor imported equipment andmaterials;1001 of local expenditures(ex-factory cost) for locallymanufactured items procuredthrough ICB and 701 of localexpenditures for other itemsprocured locally.

Works 8.9 70X of expenditures

Consulting services 0.1 1001 of expenditures

Unallocated 5.0

. TQotal 1Q09O

Estimated Disbursements

Bank F4 F5 F9 FY---------(US$ million)----------

Annual 37 55 13 4Cumulative 37 92 105 109

- 13 -

Page 4 of 4

II. Promotion of Electricity Energy Efficiency (GEF)

Amount of the Grant Allocated X ofCategory GEF Australian Govt Expenditures to be

(SDR Equiv.) (A$ Equiv.) Financed

Goods 1,850,000 2,800,000 1001 of foreignexpenditures, 100lo f l o c a 1expenditures (ex-factory cost) and70X of localexpenditures forother itemsprocured locally.

Services including 1,950,000 2,300,000 701marketing, eng'g/architectural design,installation, testing,monitoring andevaluation

Consultancies 2,250,000 2,800,000 100lincluding technicalassistance andtraining

Unallocated 850.00 600.000

TOTAL 6 .90 xe.ooo

Estimated Disbursements (GET and GOA Grants\:

94 D1 96 72 22Bank FY....-..-----(in US$ million)----------

Annual 3.5 4.0 4.0 3.0 1.0Cumulative 3.5 7.5 11.5 14.5 15.5

- 14 -

Schedule C

THAXLAND

DISTRIBUTION SYSTEM AND ENERGY EFFICIENCY PROJECT

Timetable of Key Proiect Processing Events

I. Distribution System Improvement and Expansion

(a) Time taken to prepare: 1 year

(b) Prepared by: MEA

(c) First Bank mission: October, 1991

(d) Appraisal mission departure: March, 1992

(e) Negotiations: August, 1992

(f) Planned date of effectiveness: July, 1993

(g) List of relevant PPARs: N/A (first project with MEA)

XI. Promotion of Electricity Energy Efficiency (GEF)

(a) Time taken to prepare the project: 16 months

(b) Prepared by: EGAT and IIEC (under a UNDPfunded PRIF study)

(c) First Bank mission: October, 1991

(d) Appraisal mission departure: December, 1992

(e) Negotiations: March, 1993

(f) Planned date of effectiveness: June, 1993

(g) Relevant PCRs: N/A

This report is based on the findings of an appraisal mission to Thailand inApril, 1992, comprising Margaret Hanson Costan (Task Manager) and DarayesNehta (Principal Power Engineer). The Electricity Energy Efficiencycomponent of the project was appraised by a mission to Thailand in December,1992, comprising Darayes Mehta (Task Manager), Kenneth Jensen (Consultant),Mostafa El-Erian (LEGEA) and Leigh Peterson (Consultant). The Peer Reviewerswere John Irving (ASTEN) and Jamil Sopher (EA1IE). The project was clearedby Callisto Madavo, Director (EA1DR) and Vineet Nayyar, Chief (EAIIE).

Schedule UPage 1 of 2re IL aT, z

THE STArUS Of BANK CROUP OPERATIONS IN THAILAND

A. Statemnt of Bank Loans and IDA Credtts p/(AS of December 31, 1992)

Loun or Amount (USS tillIon)Credit Fiscal (lea. cane llatiens)Number Year Borroe r Purpose rank DA Undibu raed

Eighty-six loans andsix credits fully disbursed 3,268.21 115.42

Of which SECALS, SALS and Progre Loane

2097 1982 Kingdom of Thailand SAL I 150.00 .00226B 1963 Kingdom of Thailand SAL tI 176.00 .00

Subtotal 325.60

1922 1981 Kingdom of Thailand Nat'l. Agriculture Research 29.95 0.212620 1968 Kingd of Thailand Regional Cities D-velopment 20.33 3.10279S 196? National Houslng Auth. Third Shelter 9.00 2.502672 1968 State Ra lway of Thi. RaiIway Efficiency 13.00 2.072694 1986 Kingdom of TheIland Highways Sector 50.00 1.392915 1988 Elec. Con. Auth. of Thi. Power Transmission 110.00 .403006 1969 Kingdo, of ThaIland Highways Sector SS 87.00 .683136 1990 Elsc. Gn. Auth. of Thi. Power Systm Oevelopment IS 94.00 7.163220 1990 Kingdom of Thailand Highways Sector III 50.00 24.673254 1991 Kingdom of Thailand Land Titl ng IS 30.00 19.013294 1991 Kingdom of ThaIland Tax Computerization 82.00 32.003404 1992 Provinctal Elec. Authority Distribution Sys Upgrditng 40.00 40.003423 1992 Elec. Con. Auth. of Thl. Third Power System S4.00 *0.763446 1992 Kingdom of That land Highway IV 177.S0 14S.703W0m 1993 Petroleum Authority of Thi. Gas Transmission 106.00 105.00

Total 4,165.02 115.42 419.70of which has been repaid 2 064 27 9.06

Total now held by Bank and 2DA 106.87Amount sold /b 193.91of which repaid 172.47

Total undtsbursed 419.70 - 419.70

/a The status of the projects listed In Part A In described In a sp ate rport on allBank/IDA financed projects in execution, which is updated twice yearly and circulatedto the Executive Directors on April 30 and October 31.

lb Of which 643.3 illIon sold to tho fank of Thailand.

<

Schedule DPage 2 of 2

B, Statement of IfC !nvestmento(As of December 31, 1992)

UndiabureedTotal hold Including

Flscal Type of Orlgtnsl Comltm"ten by IFC participantsYear Obliger Business Loan Equity Ttel- (at cost) portion

-4 J S 8 ~~~Million

1969 Concrete Products and Cement & Const. o.3 - 0.8 - -Aggregate Co. Ltd Materlal.

1984/71 Ind. Fln. Corp. of Thi Development Flnance - 0.4 0.4 - -1969/76/78/ Siam Coemnt Croup Cement A Const. Met. 28.8 4.4 82.7 1.4 _80/861977 The Mutual Fund Co. Ltd. Money & Cap. Market. - 0.6 0.6 - -1977 United Sugar Terminal Food A Food Process. 2.6 0.2 2.7 - -1978 SmaIl A Medium Scale Money A Cap. Market. 2.0 - 2.0 - -

Industrlal Enterprie.x1979/80/88 Bangkok Clase Industry Olass Contalners 9.9 0.4 10.8 - -1984/86/88/ National Petrochemlcal Chemicals A Petroch 86.0 0.5 3856 834. -891979/81/86/ Stam Clty Cement Cement a Coast. 268.1 6.1 274.2 31.6 -87 Materials1984 Thailand Tantalum mining 63.5 8.4 66.9 - -1979 Thai Orient Leasing Co. Money A Cap. Markets - 0.1 0.1 - -1986 Maahbumi Limitod Mining - - -1985 SEAVI Project Money A Cap. Markets - 1.0 1.0 - -1984 World Aquaculture Food & Food Process 3.1 0.6 3.7 - -1988 Sea Minerals Ltd. Offshore Tin Explor. - 0.6 0.6 0.5 -1986 Phya Thai II Hospital Health Care 4.2 0.8 6.0 - -1987/88 The Thailand Fund Money a Cap. Markets - 26.8 26.8 - -1987 NACO Food A Food Proc. 1.6 0.6 2.1 1.7 -1"98 NMC Polymer Petrochemical 26.0 1.6 27.6 12.9 -1988 Phanarlvivat Palm Oil 3.6 1.1 4.7 4.7 3.61989 Peroxythal Chemicals a Petroch 10.7 - 10.7 10.7 -1990 SCS Equity Line Uoney A Cap. Markets - 15.0 15.0 15.0 14.61990 TFS Equity Line Money A Cap. Markets - 6.0 .0 6.0 4.01990 SEAVI-VIC Money A Cap. Market. - 1.6 1.5 1.5 0.81990 Siam Asahi Color TV Class Bulbs - 8.1 8.1 8.2 6.21990/91 Shin Ho Paper Paper Products 56.0 6.9 61.9 28.0 39.31991/92 Bank of Asia Money A Cap. Market. 20.0 6.0 26.0 25.6 20.01991 VIl Thailand Money & Cap. Markets - ..1991/98 Ayudha Leasing Money A Cap. Markets - 0.6 0.6 0.6 -1992 Krung Thai Money A Cap. Markets - 0.4 0.4 0.4 -1993 Central Plaza Hotel Tourisa - 15.7 16.7 1S.7 1.8

Total 524.8 107.2 632.0 198.2 89.3

Approved but not yet signed

1990 Vinythai Petrochemical. 160.0 - 150.0 50.0 150.01993 Central Plaza Hotel Tourism 38.0 - 36.0 15.0 35.01993 Bank of Asia Money A Cap. Markets - 0.5 0.5 0.C 0.5

Total Gross Comuitments 709.8 107.7 817.6 263.7 274.8

Loe than USSO.5 million

IBRD 23

oois t o... 10045

'\ METROPOLITAN THAILAND.M ETROPOLITAN ELECTRICITY AUTHORITY (MEA)

0 Sainoi DISTRIBUTION SYSTEM AND ENERGY EFFICIENCY PROJECT

\ I4 X T//4\ ENED T 2202 115,66 kV TRANSMISSION [M (OVERIiEAD)

----- ----- ----- 220,115,66, kVIlRANWSSON UNES UNDERGROUND CABLO)

0 Ban Buoa P a A A A .SUBSTATIONS

Thong 0 D TEWANk STAlIONSz C~~~~~~~~~~~ JSTOMEOA SUBSTATIONS

N O N T H A B U R I \\ / SVTIGTIO

A BGSKSAKYAI \ Banken METROPOUTRAN aECRCfIYAUTHORITYBOIkDAM

OBangyai O _ I I_ I___o_._8_12 ItS

X \s < Minburi MOMETERS

…- - - -' - -I-

I -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1-

I 4'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4

-13's5' / 0 Am4g7k CC~~~~~~P H R A /s.

5 Tlm < Pa _A K H O N LotKabong

L ~~~~~~~~~~~ors Pradong= />'>... *

V F | ! , .

rs.0&C&i 5 r G,'i \,ATA 8/\s /' >U ProknBnb

*,y>t j- ay /

' ; MAIAYSMi ,! Tj

ID NESA '<:;. SEAGAFORE rhiln IO-' 0oi4S.0'