Thailand Water Report 2015
BMI View: With the continued stalling of the project pipeline and the persistent risk of both drought andflood damage, in conjunction with high losses and limited sanitation facilities, we view the Thai watersector as offering minimal opportunities and high risks to both services and infrastructure companies. Therecent announcement that some urgently needed works are to be restarted is a positive step; however, westill anticipate delays and cancellations.
The beginning of the dry season in Thailand may result in severe water shortages in 31 provinces in 2015.
Parts of eight provinces have already been declared drought disaster areas, according to Department ofGroundwater Resources Director General Praneet Roibang. The Ministry of Agriculture and Cooperatives(MOAC) has taken several steps to mitigate the situation, such as requesting farmers to decrease secondcroprice planting in certain areas, employing 32,562 drought-affected farmers to work on state projects andencouraging the planting of alternative crops. The interior ministry has allocated THB1.4bn (USD42.91mn)for the dredging of canals and development of water sources to manage water scarcity. Meanwhile, thecabinet approved a USD240mn budget to alleviate drought in the country. This is an increase on theprevious allocation and should prove advantageous to both services companies and infrastructure groups.
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