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 Home > About Thailand > Economy > The Role of the Public Sector


PUBLIC UTILITIES

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The Electricity Generating Authority of Thailand (EGAT) is a state enterprise and the country's principal producer of electricity. Over the past few years, efforts to reduce the use of high-cost imported fuel oil for power generation by developing substitute domestic resources from natural gas and lignite have yielded satisfactory results.

The Metropolitan Electricity Authority ((MEA) is responsible for the distribution of electricity in the Bangkok Metropolitan areas, while the Provincial Electricity Authority (PEA) handles the distribution to the rest of the kingdom.

Water supply to the capital city is the responsibility of the Metropolitan Waterworks Authority (MWA). It has successfully completed the first stage of a massive filtration and distribution scheme to double the city's potable water supply.

Key elements of the project were the construction of an enormous filtration plant capable of eventual expansion to 5.2 million cublic metres per day production and an underground network of transmission tunnels. Laser-directed "moles" were employed to dig and lay 3.86 metre-diametre pipes 20 meters below the ground in the world's first soft-earth tunneling project, a feat of considerable engineering ingenuity involving both Thai and foreign contractors.


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GOVERNMENT INCENTIVES AND FINANCIAL ASSISTANCE

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Agricultural Credit. The main concern of economic and social development has been to make additional short-and long-term credit funds available of farmers. There are two sources of institutional credit for agriculture: the publicly-owned BAAC and the commercial banks. Expansion of agricultural credit in the past few years has increased substantially. Increased agricultural lending has resulted fro the Bank of Thailand's provision that 20 percent of total commercial bank deposits (up from five percent in 1975) be lent to farmers directly or through the BAAC. In addition, two percent of the total is to be lent to the agribusiness sector.

Industrial finance. One means of promoting industrial activity is to direct funds to further economic development. At present, major secondary cities in Thailand are adequately served by private banks. Up to 1975, 60 percent of the deposits made in the provinces were being channeled back to Bangkok, a situation which necessitated government guidelines requiring that at least 60 percent of the deposits be lent locally. Priorities of the Industrial Finance Corporation are to support industries which significantly increase the value-added worth of a commodity, generate employment, use domestic raw materials, produce export products, or locate their factories outside of Bangkok.

Industrial services. The technical assistance and training services provided by the Department of Industrial Promotion (DIP) serve to promote industrial development. DIP also has five regional centres in Chiang Mai, Khon Kaen, Songkhla, Chon Buri and Suphan Buri. The training and advisory services offered coverall aspects of industrial management, investment and joint-venture, industrial technology and industrial design.

 

If you want to read some interesting topics, select the following information :

                        Bounty of the Land and 
                        Sea | Sector Performance 
                        | The Agriculture and 
                        Mining Sectors | Major 
                        Crops | Livestock 
                        | Forestry | Fisheries 
                        | Mining | The 
                        Manufacturing Sector | Tourism 
                        | The Organized Financial 
                        Market | The Bank 
                        of Thailand | Other Sources 
                        of Finance | The Capital 
                        Market | The Role of the 
                        Public Sector | Infrastructural 
                        Support | Public Utilities 
                        | Government Incentives 
                        and Financial Assistance | Foreign 
                        Trade and Balance of Payments | Conclusion 
                      


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