📋 Tender Overview
Project Name
THA (57304) Lower East Chao Phraya Irrigation System Improvement – Climate Adaptive Strengthening Investment Project
Project Number
57304-001
Country / Economy
Thailand
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
MFF Facility Concept: Climate Adaptive Strengthening of Lower Eastern Chao Phraya River Water System Facility
Ordinary capital resources US$ 1,600.00 million
Sector / Subsector
Agriculture, natural resources and rural development / Irrigation - Rural flood protection
Gender
Some gender elements
Description
The Government of Thailand has prepared a detailed masterplan to address climate risks in the Chao Phraya River basin. A sovereign intervention is justified as the private sector traditionally does not engage in flood risk management, nor where there is no direct stream of monetary benefits.
The proposed program will use a multitranche financing facility (MFF) lending modality, using time-sliced financing. An MFF modality is selected because The proposed project is a very high investment, and the implementation is expected to last longer than six years. The RID estimated an implementation period of four years, which is considered unrealistic, mainly due to significant resettlement. The program includes up to about 60 sub-programs, many of which are similar in nature, to be categorized by dependent time-sliced tranches. All project components will be assessed during processing and divided into 2, or possibly 3 tranches, depending on the Government preferences.
Project Rationale and Linkage to Country/Regional Strategy
The project's rationale is rooted in the urgent need to address climate-induced flood vulnerabilities, utilize existing infrastructure efficiently, and integrate climate resilience and adaptation into local communities. The fundamental development problem the project addresses is the heightened vulnerability in Lower Chao Phraya region of Thailand to climate-induced floods. Increasingly frequent and severe floods pose a significant threat to the livelihoods, safety, and economic stability of local communities. These disasters result in property damage, crop loss, and displacement, exacerbating poverty and hampering overall development. The existing irrigation canals in the region are inefficient in their capacity to carry significant flood flows. The aging irrigation canal systems are ill-equipped to manage the more intense floods, leading to increased disaster risks and long-term economic losses. This inefficiency limits agricultural productivity, perpetuates poverty, and hampers the sustainable development of the region. Communities and infrastructure in the region lack the necessary climate resilience to withstand the impacts of climate change.
Impact
Economic impacts from climate-induced floods and droughts reduced.
Outcome
1: Resilience for climate-induced risks in the Lower Eastern Chao Phraya region strengthened.
Outpu
