Strategy

Strategy

France and emerging countries have common interest in the management of global public goods such as climate, biodiversity and health. These areas require active bilateral cooperation and are integral to AFD’s strategic framework in these countries.  Thailand’s rapid economic emergence, coupled with the leading role of the country in the Greater Mekong Subregion, implies that the actions undertaken in the territory have a significant impact on global public goods.
Projects that contribute to a reduction in greenhouse gasses (CO2, natural gas….) are therefore sought out in priority. Regardless of the chosen economic sector, any project that leads to a major reduction in CO2 emissions can be eligible for AFD financing.

Protection of Global Public Goods : Fight against climate change

In line with the Thai government’s pledge to rationalize and reduce its consumption of energy, AFD aims at promoting renewable energy production, energy efficiency and more broadly to reduce the emissions of greenhouse gases in the country.

This goal will be achieved by working in partnership with the local financial institutions for the financing of the projects of renewable energy and energy efficiency, with municipalities that will be in charge of the project management and with the Ministry of Energy, which defines the politics and the general priorities.

Sectors of interest: waste management, transport, energy efficiency in buildings, energy efficiency in industry, cleaner production of electricity.

Preservation of biodiversity

AFD aims at preserving the environmental wealth of Thailand. First, on a global point of view, the preservation of strength and diversity of ecosystems as a Global Public Good, is of common interest. Secondly, the ecosystems and the natural resources are major contributors to social and economic development. Therefore, reducing the impact of non sustainable practices and limiting the pressure on natural resources, will have a positive impact on the economy and the national welfare.

The actions undertaken by AFD could be implemented in partnership with the French Global Environment Facility (FGEF), and should be in line with the indications given in the Convention on the Biological Diversity.

Responsible governance development support : Trilateral cooperation

Thailand is a high growth economy country who achieved major successes in the 90’s in the fields of fight against poverty and achievement of Millennium Development Goals. The country is now willing to share its experience with its neighbours, and has decided to develop its politic of cooperation in partnership with the other donors and in relation with the main global institutions.

AFD has built a strong relationship with the Thailand International Cooperation Agency (“TICA”) on trilateral projects and bringing to Thailand its long term experience of cooperation, especially in Cambodia, Lao PDR and Africa. Several projects are currently being implemented between AFD and TICA or other Thai cooperation agencies. Among them are the financing of the railway link between Thailand and Vientiane, or the development of rubber smallholders’ plantations in Cambodia. AFD sees as extremely important to support the efforts of Thailand and therefore is proud to welcome a new country in the donor community.

Promoting environment by supporting the decentralization process

The reduction of greenhouse gases emissions and more broadly the tackling of environmental issues need local action and decision taking. Indeed, local governments are the main actors for sectors such as urban transport, waste management (solid wastes and wastewaters) and also urban planning. Therefore, the decentralization process, if it is supported and done in good conditions can have a major positive impact on the local and global environmental issues.

In Thailand, the decentralisation process has been initiated, and the launch of contracting between the State and the local authorities on October 1st 2008 will be a major step ahead. In line with this political will, AFD is eager to support the empowerment of local authorities and municipalities. Indeed, AFD ranks amongst the donors most committed to this subject, it has a long experience and specific skills in the field of municipal project management and local financing, and can propose specific training modules.

AFD promotes local governments borrowing, and offers a range of financial instruments:

  • Direct loans to local governments to finance specific investment or support part of an investment budget;
  • Financial intermediation (AFD provides funds to a national specialized financial institution which, in turn, on-lends to local governments)
  • Mechanisms improving local governments’ direct access to financial markets and instruments such as guarantee or credit enhancement.