Thailand country report on investment in water - Boonkerd Budhaka, Manu Srikajorn and Vason Boonkird

Boonkerd Budhaka, Natural Resources Economics Specialist, and

Manu Srikajorn, Soil and Water Conservation Specialist

Ministry of Agriculture and Cooperatives, Thailand and

Vason Boonkird, Engineer for Operation an Maintenance

Royal Irrigation Department, Thailand

INTRODUCTION

Under its three most recent National Economic and Social Development Plans - the Fifth, Sixth and Seventh plans respectively - Thailand experienced a satisfactory expansion of its Gross Domestic Product (Table 1). Agriculture accounted for 69, 42 and 35 percent respectively in these plans, demonstrating that the agricultural sector is a very important but a not very efficient part of Thailand's national economic system.

Although Thailand is one of the world's top agricultural exporters and while the trend of production per hectare is rather high, its main economic crops such as rice and corn still have quite low production efficiency compared to other countries. In this regard, Thailand needs additional research and development (R&D), improvement of fundamental structures for increasing production efficiency (including irrigation), management, quality control in production and technology and expanded marketing.

BACKGROUND AND TRENDS

Since 1961, Thailand's water development for irrigation was implemented under the strategy and direction of comprehensive National Economic and Social Development plans. At the beginning, the emphasized target was construction of large - and medium - scale irrigation projects to increase new irrigable areas as much as possible to guarantee or reduce the risk of a lack of water in the agricultural sector. Development also included targets for hydropower development.

As a result of development in earlier phases, Thailand during the Fifth Plan was able to expand irrigable areas to 3.55 million ha or about 25 percent of its total agricultural land. Later strategy and policies in irrigation development changed as the result of competition in economic development as Thailand changed from being primarily agricultural to having an increasing emphasis on the industrial export sector as a newly - industrialized country.

TABLE 1

Thailand's agricultural sector and Gross Domestic Product (NESDB)

This led to a lack of water from existing developed water resources due to the following reasons:

• increasing demand as farmers learned to make better use of their land, requiring more water from existing resources;
• growing water requirements in non - agricultural sectors, a result of national industrial development policy and investment, as well as population growth;
• low efficiency in irrigation usage because there were no irrigation fees;
• lacking an effective plan for basin development, duplication by many agencies in water resources development negatively affected potential basin development; and the
• limited topographic conditions for building large - scale irrigation projects together with substantial NGO opposition.

Figure 1: Comparing Domestic Product in Agricultural Sector with GDP

Economic crisis in Thailand in 1997 and the devaluation of the baht resulted in economic recession and a stretching of finances leading to budget shortages. In addition, the new constitution called for decentralization and the participation of local people for transparent implementation. The direction of water resources development for irrigation at present is reflected in the National Water Policy and Vision of the Royal Irrigation Department. It concentrates on increasing irrigation water use efficiency in existing irrigation projects instead of new water resources development and extension of irrigable areas. RID has attempted to emphasize farmer participation in on - farm water management. Construction of on - farm distribution systems by farmers themselves with government assistance is described in the Ditch and Dyke Act of 1962 (Buddhist Era 2505) and the Land Consolidation Act of 1968 (B.E. 2511). The objective is to promote the most effective use of irrigation water as well as to prevent conflicts among farmers during any water use crisis.

THAILAND'S NATIONAL WATER POLICY AND VISION

By 2025, Thailand is projected to have sufficient water of good quality for all users through efficient management, organization and a legal system to ensure the equitable and sustainable use of its water resources with due consideration to the quality of life and participation of all stakeholders.

Thailand's national water policy

Thailand's nine - point National Water Policy and Vision as set forth by the Royal Irrigation Department details how this will be implemented:

• Accelerate promulgation of a Draft Water Act as the framework for national water management by reviewing the draft and implementing all necessary steps to make it effective, including reviewing existing laws and regulations;
• Create water management organizations both at national and river basin levels with supportive legislation. The national organization is responsible for formulating national policies, monitoring and coordinating activities to fulfil the policies. The river basin organizations are responsible for preparing water management plans through a participatory approach;
• Emphasize suitable and equitable water allocation for all water use sectors, and fulfil basic water requirements in agriculture and domestic uses, to be achieved by establishing efficient and sustainable individual river basin water use priorities under clear water allocation criteria, incorporating beneficiary cost sharing based on the ability to pay and the level of services used;
• Formulate clear directions for raw water provision and development compatible with basin potentials and demand, ensuring suitable quality while conserving natural resources and maintaining the environment;
• Provide and develop raw water sources for farmers extensively and equitably in response to water demand for sustainable agriculture and domestic uses, similar to deliveries of other basic governmental infrastructure services;
• Include water related topics at all levels of the educational curriculum to create awareness of the value of water, understanding the importance both of necessary and efficient water use and responsibility in maintaining natural and man made water sources;
• Promote and support participation, including clear identification of procedures, clear guidelines on the rights and responsibilities of the public, non - governmental and government organizations in efficient water management. Water management includes water use, water source conservation, monitoring and preservation of water quality;
• Accelerate preparation of plans for flood and drought protection, including early warnings, damage control and efficient and equitable rehabilitation with proper use of land and other natural resources; and
• Provide sufficient and sustainable financial support for action programmes in line with national policy, including water-related research, public relations, information collection and technology transfer to the public.

Water policy visions in the Ninth National Economic and Social Development Plan

Vision regarding natural resource management Thailand's 1997 Constitution is the fundamental base of national development and accelerates participatory rural development, decentralization, natural resource conservation and environmental protection, and good governance with public emphasis on accountability and highly efficient management. The vision (by steps) leads to good connections between subplans, good governance, high participation fat the rural, regional and national levels is expected and effectively developed in all areas.

Vision regarding agricultural production Thailand envisages agricultural production based on the sustainable use of natural resources, without prejudice regarding social status and to be advantageous to the environment.

Vision regarding local participation in irrigation management and cost sharing To change the traditional idea of farmers being one - way receivers from government (the government sector invests, manages, maintains and repairs irrigation system without payment) to be full participatants in terms of management and sharing the cost of operation and maintenance.

FIGURE 2: Flow chart - preliminary plan of Royal Irrigation Department

Because of continued development of efficient irrigation practices since implementation of the Fifth National Economic and Social Development Plan, large -, medium - and small - scale irrigation projects with a total capacity of 32 million m³ covering some 3.52 million ha were built (Tables 2 to 7).

CONCEPT AND DIRECTION OF INVESMENT

Although Thailand's irrigation water requirement was projected to increase at the rate of 1.1 billion m³ per year, average annual water resources capacity increased only 0.97 million m³ (Khon Kaen University, 1986). Water shortage trends indicated above together with the slowing rate of expansion of new irrigated areas (Table 7) illustrate Thailand's difficulty in fulfilling its water demand. At the same time, environmental conservation is getting favourable attention in regard to water resource management.

TABLE 2

Budget of Royal Irrigation Department (RID), Ministry of Agriculture & Cooperatives (MOAC)

Source: Office of Budget Programming and Project Planning

Note: 1992 - 1997 US$=25 baht; from mid - 1997 the baht fluctuated. In late 2001 it was about 44 Baht/US$1.

FIGURE 3: Ministry of Agriculture And Cooperative (above) and Royal Irrigation Department (below) budget

Therefore, it is necessary in Thailand's present and future water resources development to emphasize qualitative development through sustainable development approaches. This means to increase irrigation efficiency by using appropriate technology, to add value to irrigation water as well as to promote participatory irrigation management (PIM) by holding public hearings. The Royal Irrigation Department has supported the participatory approach and is ready to adapt its future plans with such participation. RID also introduced new approaches in irrigation management by:

• introducing appropriate technology in conjunction with local technology, adapting to partial or fully automated systems, for validity, reliability, speed, and equity support through an entire network or subnetworks;
• using equipment to replace skilled labour or local labour attracted from agriculture to industry; and
• decreasing water loss in canal systems by using concrete linings or by replacing pipe systems.

Additional approaches that Thailand has been implementing include:

• reducing water losses due to inefficient water resources management, expanding storage farm pond capacity (both as supplementary sources and as night storage);
• altering criteria or redesigning proper and easily operated irrigation works;
• developing flood management and adjusting paddy cropping systems suitable for lowland areas;
• privatization and irrigation management transfer (IMT). Government plays a role as the technical advisor, supporting productivity improvement and directing implementation according to policy to maintain fair procedures;
• supporting entrepreneurship, ownership and partnership by encouraging farmers to undertake self - maintenance and cost sharing;
• replacing function structures by 'process structures' to create a system of participatory agencies.

TABLE 3

Fiscal Year 2000 & 2001 Budget for Royal Irrigation Department classified by plan

Source: Office of Budget Programming and Project Panning

SOME IMPLEMENTED PROJECTS

To accomplish the objectives of the policy and vision and to solve water shortage problems, Thailand has implemented various construction projects together with improvement of irrigation system and guideline in water management, classified as water resource development projects, irrigation system modernization, management and concession and water quality improvement

TABLE 4

Projects and programme loans allocated and pending approval 1995 to 2007

Source: Office of Budget Programming and Project Panning

NOTE JBIC: Japan Bank for International Cooperative; ADB: Asian Development Bank; WB: World Bank

TABLE 5

Irrigation area and capacity by regions (Fiscal Year 1998)

Source: Office of Budget Programming and Project Planning.

Note: 1 hectare = 6.15 rai

Water project development

Expansion of irrigation area shown in Table 7 reflects the difficulty in building new water storage in support of rapidly rising water demand. However, Thailand continues to develop new water storage to support extended agricultural productivity. Existing irrigation projects are:

• The Pasak Cholasit Dam in Lopburi province (a zoned earth dam height 31.50 m, length 4 860 m) constructed from 1995 to 2002 (EIRR = 12.80 percent). Its main purpose is to store water for irrigating 21 600 ha and providing supplementary irrigation water for a lower Chao Phraya West Bank area of 320 000 ha. It also provides water for domestic use in metropolitan Bangkok and its vicinity, as well as providing flood protection for Lopburi and Saraburi provinces, promoting fisheries, transport waterways and water pollution control;
• The Khlong Tha Dan Dam in Nakhon Nayok province is a roller - compacted concrete structure with a height of 93.0 m, a length of 2 720 m and a capacity of 224 million m³. Built from 1997 to 2004 (EIRR = 10.85 percent), its main purpose is to store water for irrigating an area of 29 600 ha, to provide flood control for the upper Nakhon Nayok basin, to reduce soil acidity and for domestic water supply of approximately 16.0 million m³/year;
• Bang Pakong Diversion Dam, Chachoengsao province, is built of reinforced concrete, at a length of 166.0 m with a gate electronically controlled by computer. Built from 1996 to 2001 (EIRR value of JICA study is outdated), its main purpose is to provide water storage for irrigating 14 720 ha, providing protection from salinity intrusion, for fisheries, and domestic water supply of 18.90 million m³/year, 69.70 million m³/year for industrial use and to maintain waterway levels and clearance for local transport;
• Pak Phanang Diversion Dam, Nakhon Si Thammarat Province, built from 1995 to 2002 (EIRR = 13 percent) has as its main objective salinity control, storage of 70 million m³ of fresh water, irrigating 83 360 ha, providing flood protection in the Pak Phanang basin, reducing soil acidity and managing freshwater and saltwater irrigation areas;
• The Kolok River Improvement Project in Narathiwat province, includes 30 breakwaters and groins of 750 m. Built from 1996 to 2002 (EIRR = 16.60 percent), its main purpose is protection of 22 km of shoreline, conservation of ocean resources in the economic zone, fisheries promotion, aquatic animal nurseries in the lower Kolok and Tak Bai rivers and flood protection in the lower Kolok Basin.

Figure 4: Irrigation area by region

Figure 5: Capacity by region

TABLE 6

Progress and trends in 10 years of water resource development

Source: Office of Budget Programming and Project Planning

Note: Asterisk (*) denotes projected figure.

TABLE 7

Increased irrigation area in percentage by NESD Plan

Source: Office of Budget Programming and Project Planning

Figure 8: % Increased Irrigation Area by NESD Plan

Figure 6: Irrigation area classified by NESD Plan

Figure 7: Capacity Classified by NEDSP

Figure 8: Capacity Classified by NESD Plan

Irrigation system modernization

Thailand has introduced new technologies in new projects appropriate to the environment with greater efficiency in irrigation water control such as:

• Overnight storage and distribution systems: automatic control and water distribution to farms by replacing farm turnout (FTO) using NEYRTEC distributors;
• Hydraulically automated controllers or AVIO automatic gates: hydro mechanical devices for water level and discharge control which simultaneously controls water moving through irrigation structures and in all conditions of water sources;
• Telemetering systems: advanced information technology with World Bank support in cooperation from the Electricity Generating Authority of Thailand (EGAT), telemetering helps plan and manage irrigation systems in response to basin runoff, supporting a more efficient use of runoff and irrigation waters including flood risk warnings for adequate preparation. Telemetering systems were introduced in the Chao Phraya and Pasak River basins;
• Geographic positioning system (GPS): used in a reservoir sediment survey at Lat Krathing Reservoir, Chachoengsao province in conjunction with an echo sounding device, contour maps are produced and reservoir capacity is recalculated;
• Ready-made U-shaped canals: introduced in 1997-1998 in on-farm development, prefabricated canals reduce construction time and minimize excess right of way usage, increasing management efficiency. Pilot projects are located in Chiangmai, Ubon Ratchathani and Krabi provinces covering a total irrigated area of 2 080 ha.

Management

In Thailand the main objective is to coordinate development and water resources management as a system, linking specific natural resource concerns with broader environmental impact.

Participatory irrigation management and cost recovery, Thailand has set up two types of pilot projects, river basin management and participatory irrigation management (PI) and cost sharing (CS) projects.

• River basin management policies include:

Water resources development policy Water resources development master plan for 25 basins together with the implementation plan of large and medium scale irrigation projects will be prepared. Suitable water resources will be carefully identified in order to control margin water for sustainable irrigation and flood protection through good feasibility studies and design;

Water resources conservation policy Promoting conservation and rehabilitation of water resources to develop and improve operation and management structures of water resources for agriculture as well as domestic water. Measurement for operation, construction, conservation and maintenance of water resources ecology will be provided;

Operation management policy Development and utilization planing for water resources as well as emphasis of basin management, project management and on - farm water management. Support water management activities and human resources development in water management. Research and design irrigation water utilization boundaries;

Improvement and maintenance policy Prepare master plan in improvement and maintenance, new develop/improvement project in accordance with the local administration and economical condition;

Conservation of agricultural land in irrigation area policy Emphasize productivity efficiency by using inefficient natural resources, identify the irrigation promotion zone;

Information technology policy Develop information concerning basin system and standardization of information. Using this information beneficially among policy and administrative levels. Follow - up and evaluate including updating information and connection by the up - to - date net work. Develop human resources; and

Public relations for irrigation policy Emphasize popular participation in water resource development and conservation, promotion and publication in development and the utilization and conservation of water resources. Demonstrate and inform those concerned with irrigation projects and conduct public hearings.

• Participatory irrigation management (PIM) and cost sharing (CS) comprises:

Participatory irrigation management aims to strengthen farmer ability to participate in irrigation management, most importantly to build - up decision - making capacity in farmer organizations which corresponds with government policy in decentralization, privatization and community participation.

Cost sharing (CS) allows farmers’ sense of ownership by cost sharing in maintaining irrigation structures and facilities. Ready to use their rights to protect and maintain the project in sustainable ways. Costs beginning with construction extend through operation and maintenance (O&M). Farmers participate in intensive on - farm development and land consolidation cost. However, farmers participate in maintenance costs of small - scale irrigation projects.

Irrigation management transfer (IMT) Privatization of O&M of irrigation projects may begin with outside contracting and at the same time, developing/strengthening farmer organizations by acknowledging and improving their capability, power of decision and readiness for project transfer through PIM. At the monitoring and evaluation (M&E) stage, performance indicators and service standards, PI&SS guides implementation, for example, of the ratio of land use to total irrigation area, irrigation efficiency, and farmer satisfaction with irrigation water sharing.

• Thailand has also developed and experimented with other types of management, including:

Privatization of water resources development, transferring maintenance responsibility of irrigation projects to the private sector and water users groups by contracting. NEWMASIP, the left main canal of the Yang Chum Irrigation Project and 10 other large and medium scale irrigation projects were selected as pilot projects (ASPL).

Integrated management of agro - industrial development and integrated rural development projects in irrigation area. Start with operation planning, preparation of whole season irrigation water, agricultural research and development (breeding and methodology), agricultural promotion and marketing with price guarantee at the pilot project of the country, Nam Oon Irrigation Project, Sakhon Nakhon Province.

Development - oriented research on agrarian systems (DORAS) entitled Chao Phraya Basin Water management: guidelines for development of efficient and fair water management. Research on growing paddy in flood - prone lowland areas and management of floodwater in the floodplain of the Chao Phraya Basin. Researchers applied the Kamling theory of flood management initiated by His Majesty the King of Thailand, dividing the flood area into drainage units or “boxes” with structures to control waterflow. Paddyfield floodwaters can then be adjusted.

Concession and water quality improvement

In addition to cost - free development from government, which has the main responsibility in agriculture, Thailand has considered other types of development such as partial concession using wastewater from the agricultural sector for domestic and industrial purposes. The projects are:

• Dork Krai - Mabtaput - Sattahip pipeline project: implemented by the Eastern Water Resources Development and Management Co., Ltd. Under the concession, 72 million m³ of water from the Dok Krai reservoir is supplied for domestic and industrial use. In any water shortage, the Royal Irrigation Department may set irrigation water for agricultural purposes as the main priority.
• Water Quality Improvement: In addition to providing new water resources and increasing agricultural management efficiency for projects initiated by His Majesty the King, the Royal Irrigation Department (RID) concentrates on water quality improvement. RID conducts sponsored research and development under the Chai Pattana Foundation. Experiment has been conducted in the area of wastewater and found the tool can work satisfactory

CONCLUSION

Thailand is preparing the fundamental structure in order to increase efficiency in the agricultural sector, which is very important for our country considering the ratio of agricultural sector over the GDP.

Different conditions in the past together with the economic crisis of the country and the other factors in guidelines, measurement, policy and vision such as constitution 1997, national water policy, vision frame in natural resources management, agricultural productivity, and farmers’ participation in the management and cost sharing. Therefore, Thailand must change its concept of water resources development from quantitative qualitative orientation. Implementations include increased irrigation efficiency, quantity of irrigation water, promotion in farmers’ participation for water management.

Guidelines for Thailand's development can be classified in four main categories: 1) water resource development projects, 2) irrigation system modernization, 3) management improvement, and 4) concession and water quality improvement. Application of these concepts will solve Thailand's socio-economic problems as well as secure sustainable development in the agricultural and irrigation sectors.