Presentation by Tony Zola


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Tony Zola, Chief Technical Officer - Mae Fah Luang Foundation - Thailand
China Mezzanine Fund, TBC

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Presentation by Tony Zola

  1. 1. ACB Assets Capitalization Bureau (Public Organization)
  2. 2. Framework for Assets Capitalization <ul><ul><li>The Wealth of the Nation </li></ul></ul><ul><ul><li>Create employment / Create producers / </li></ul></ul><ul><ul><li>Create Income </li></ul></ul><ul><ul><li>   </li></ul></ul>The People
  3. 3. <ul><li>Established 3 June 2003 </li></ul><ul><li>Vision </li></ul><ul><li>“ Promote the development of appropriate, comprehensive, and efficient asset capitalization systems .” </li></ul><ul><li>• Concept: </li></ul><ul><li>Promote development projects that enable producers to enhance the value of their assets. </li></ul>
  4. 4. Board <ul><li>Executive Committee </li></ul>Office of the Committee for Assets Capitalization Administration Assets Capitalization Bureau Mr. Natee Klibtong Director General & CEO Minister in Charge Training &Public Relations Unit Information & Data Unit Administration Unit Policy &Legal Unit Planning Unit Secretariat Deputy Director - General Internal Auditing Unit Deputy Director - General
  5. 5. ■ Responsibilities <ul><li>Create opportunities to access institutional sources of capital </li></ul>Establish a system of ownership and validation Negotiate agreements with financial institutions Develop assets valuation procedures and Value Creation Develop an assets capitalization process
  6. 6. Categories of Assets for Capitalization <ul><li>1. Land and land based property </li></ul>2. Rental & Leasing contracts Types of Assets 5. Machinery 4. Intellectual Property 3. Documents authorizing use of public facilities and other permits
  7. 7. Categories of Assets <ul><li>1. Land & Land – based assets </li></ul><ul><ul><li>Agricultural Land Reform: Land document no. 4-01 </li></ul></ul><ul><ul><li>Department of Cooperatives Promotion Land document no. 3 </li></ul></ul><ul><ul><li>Department of Social Development and Welfare: Land settlement document no. 1 </li></ul></ul><ul><ul><li>Department of Land: Document numbers NS-2, SK-1, and restricted land title deeds </li></ul></ul><ul><ul><li>Department of Agriculture: Document no. KYT-1 </li></ul></ul>
  8. 8. Categories of Assets <ul><li>2. Rental Contracts </li></ul><ul><li>• Rental Contracts for Treasury Department Lands </li></ul><ul><li>Rental contracts for National Housing Authority buildings </li></ul><ul><li>Rental contracts for Bangkok Metropolitan Administration market space </li></ul>
  9. 9. Categories of Assets <ul><li>3. Documents authorizing use of public facilities and other permits </li></ul> Permit from the National Parks Department to produce in a national park  Permit/Authorization to conduct aquaculture in public waters (Seafood Bank Project)  Permit to use public land granted by the Department of Local Administration  Contract authorizing the use of public lands in self-help land settlements of the Department of Social Development and Welfare
  10. 10. Categories of Assets <ul><li>4. Intellectual Property </li></ul>Patent/Trademark (Department of Intellectual Property)
  11. 11. Categories of Assets <ul><li>5. Machinery </li></ul>Machinery registration documents (Department of Industrial Works)
  12. 12. Process of Accessing Capital Using 5 Categories of Assets Conditions for Accessing Funds from Financial Institutions <ul><li>Validation agency issues a certificate to credit applicant </li></ul>Memorandum of Understanding between the ACB, Agency with Authority over the Assets, and Financial Institutions Agency with authority over the assets issues a permit for use of assets or other document authorizing use and has the permit registered <ul><li>Client applies for credit from a financial institution </li></ul><ul><li>Criteria for considering credit applications </li></ul><ul><li>Qualifications/ </li></ul><ul><li>credit record </li></ul><ul><li>Project/Income generating activity </li></ul><ul><li>Assets used as collateral </li></ul>Bank approval of credit & credit agreement between the client & bank Bank informs concerned agencies to record the transaction Normal repayment Case of non-repayment Bank informs the concerned agencies Negotiations and out-of-court settlement          
  13. 13. Results January 2004 – September 2005 <ul><li>Accelerated the issuing of land documents 2,214,548 issued </li></ul><ul><li>Credit Applicants 205,471 applied </li></ul><ul><li>Applications approved 198,166 approvals </li></ul><ul><li>Credit approved 15,319.28 million baht </li></ul><ul><li>Value of land assets used as collateral 1,298.67 million baht </li></ul>
  14. 14. Obstacles to Implementation & Guidelines for their Resolution <ul><li>Problem of asset ownership </li></ul><ul><li>Lack of understanding methods of accessing capital </li></ul><ul><ul><li>Must have an intensive public relations campaign </li></ul></ul><ul><ul><li>Establish a database system to ensure accurate information </li></ul></ul><ul><ul><li>Establish a network of development partners in every region </li></ul></ul>
  15. 15. Obstacles to Implementation & Guidelines for their Resolution <ul><li>Problem of asset ownership </li></ul><ul><li>Lacking the capacity to invest for occupational development. </li></ul><ul><ul><li>Training: Incubate to enhance administrative and management capability </li></ul></ul><ul><ul><li>Identify development partners to upgrade technical capacity </li></ul></ul><ul><ul><li>Monitor to provide advice and recommendations </li></ul></ul>
  16. 16. Obstacles to Implementation & Guidelines for their Resolution <ul><li>Institutional constraints among financial institutions </li></ul><ul><li>Lack of understanding by operations personnel of the purpose and appropriate guidelines for implementation of assets capitalization </li></ul><ul><ul><li>Improved coordination and generally inform about recommendations </li></ul></ul><ul><ul><li>Establish channels of communication for receiving regularly updated information </li></ul></ul><ul><ul><li>Establish a support network </li></ul></ul>
  17. 17. Obstacles to Implementation & Guidelines for their Resolution <ul><li>3. Obstacles to developing the assets capitalization system </li></ul><ul><li>Movable assets have a lower value and are not generally accepted by financial institutions </li></ul><ul><ul><li>Formulate supplementary measures for accessing financial resources </li></ul></ul><ul><ul><li>Value Creation </li></ul></ul>
  18. 18. Obstacles to Implementation & Guidelines for their Resolution <ul><li>Obstacles to developing the assets capitalization system </li></ul><ul><li>Obstacles to valuing intellectual property </li></ul><ul><ul><li>Establish a special working group to consider determining the value of intellectual property </li></ul></ul><ul><ul><li>Methods of resolving non – performing loans through out-of-court settlements remain unclear </li></ul></ul><ul><ul><li>Additional research is needed on a clearing house systems </li></ul></ul>
  19. 19. Guidelines for the Future <ul><li>Expand the categories of assets </li></ul><ul><li>Increase the value of assets </li></ul><ul><li>Expand the network </li></ul><ul><li>Develop mobile units </li></ul><ul><li>Monitor and develop people in project areas </li></ul><ul><li>Increase the number financial institutions </li></ul><ul><li>Expand knowledge </li></ul><ul><li>Focus on target groups / pilot projects </li></ul>
  20. 20. Existing Assets for Expansion <ul><li>Land </li></ul><ul><li> PS 23/STK/Land Use Permit </li></ul><ul><li>• Intellectual Property </li></ul><ul><li> Geographic Indicator / Local Wisdom / Social and Cultural Heritage </li></ul><ul><li>• Rental/lease rights </li></ul><ul><li> Crown Property Lands </li></ul><ul><li>• Permits </li></ul><ul><li> Public Lands of the Land Department </li></ul><ul><li>• Machinery </li></ul><ul><li> Agricultural equipment </li></ul>
  21. 21. Potential New Assets <ul><ul><li>Fishing boats ,tour boats, tourist rafts, house rafts </li></ul></ul><ul><ul><li>Guide Permits </li></ul></ul><ul><ul><li>Certificate of Traditional Thai Medicine </li></ul></ul><ul><ul><li>Vehicle / boat registration </li></ul></ul><ul><ul><li>Product quality standards </li></ul></ul><ul><ul><li>Quota </li></ul></ul><ul><ul><li>Educational degrees </li></ul></ul><ul><ul><li>Occupational / Professional degrees </li></ul></ul><ul><ul><li>Employment Contracts / Procurement & Sales Contracts </li></ul></ul>
  22. 22. Networking <ul><li>State agencies and concerned financial institutions </li></ul><ul><li>Sub-district administrative organizations </li></ul><ul><li>Non-formal Education Centers </li></ul><ul><li>Vocational education institutes </li></ul><ul><li>Universities </li></ul><ul><li>Sub-district community development officers </li></ul><ul><li>Sufficiency Economy Learning Centers </li></ul><ul><li>Youth groups </li></ul><ul><li>Community-based / civil society organizations </li></ul><ul><li>Technical specialists </li></ul><ul><li>Project beneficiary groups </li></ul>
  23. 23. Public Agencies Supporting ACB <ul><li>Ministry of Agriculture and Cooperatives </li></ul><ul><ul><li>Agricultural Land Reform Office </li></ul></ul><ul><ul><li>Department of Agricultural Extension </li></ul></ul><ul><ul><li>Rubber Estate Organization </li></ul></ul><ul><ul><li>Department of Agriculture </li></ul></ul><ul><ul><li>Office of the Rubber Replanting Aid Fund </li></ul></ul><ul><li>Ministry of Industry </li></ul><ul><ul><li>Office of the Permanent Secretary </li></ul></ul><ul><ul><li>Department of Industrial Works </li></ul></ul><ul><li>Ministry of Social Development and Human Security </li></ul><ul><ul><li>Department of Social Development and Welfare </li></ul></ul><ul><ul><li>National Housing Authority </li></ul></ul><ul><li>Ministry of Interior </li></ul><ul><ul><li>Land Department </li></ul></ul><ul><ul><li>Community Development Department </li></ul></ul><ul><ul><li>Department of Local Administration </li></ul></ul><ul><ul><li>Bangkok Metropolitan administration </li></ul></ul>
  24. 24. Public Agencies Supporting ACB <ul><li>Ministry of Natural Resources and Environment </li></ul><ul><ul><li>Royal Forest Department </li></ul></ul><ul><ul><li>National Park Wildlife and Plant Conservation Department </li></ul></ul><ul><li>Ministry of Justice </li></ul><ul><ul><li>Department of Corrections </li></ul></ul><ul><li>Ministry of Information and Communication Technology </li></ul><ul><ul><li>Office of Information and Communication Technology </li></ul></ul><ul><li>Ministry of Finance </li></ul><ul><ul><li>Treasury Department </li></ul></ul>
  25. 25. Public Agencies Supporting ACB <ul><li>Ministry of Commerce </li></ul><ul><ul><li>Department of Intellectual Property </li></ul></ul><ul><li>Ministry of Transport </li></ul><ul><ul><li>Marine Department </li></ul></ul><ul><li>Ministry of Education </li></ul><ul><li>Rajabhat University/Chang Mai University/Maejo University/Sukhothai Thammathirat Open University/Mae Fah Luang University/Rajabhat Chang Mai University/Vocational Education Institutes/Non-formal Education Centers </li></ul>
  26. 26. Public Agencies Supporting ACB <ul><li>Thai Fishing Boat Association </li></ul><ul><li>Marine Police </li></ul>
  27. 27. Participating Financial Institutions <ul><li>Bank for Agriculture and Agricultural Cooperatives </li></ul><ul><li>Government Savings Bank </li></ul><ul><li>SME Bank </li></ul><ul><li>Thai Housing Bank </li></ul><ul><li>Krung Thai Bank </li></ul><ul><li>Islamic Bank of Thailand </li></ul><ul><li>Krung Thai Islamic Bank </li></ul><ul><li>Bangkok Bank </li></ul><ul><li>Thai Military Bank </li></ul><ul><li>Bank of Ayudhya </li></ul><ul><li>Thai Bank </li></ul><ul><li>Nakhon Luang Bank </li></ul><ul><li>Thanachat Bank </li></ul><ul><li>Siam Commercial Bank </li></ul>
  28. 28. Important Projects /Activities <ul><li>Monitoring of ACB beneficiaries </li></ul><ul><li>Asset capitalization for the “Incubated Enterprises Project” </li></ul><ul><li>Assistance to the poor and underprivileged </li></ul><ul><li>Asset capitalization of intellectual property </li></ul><ul><li>Promotion of organic agriculture as an asset </li></ul><ul><li>Asset capitalization of energy conservation projects </li></ul><ul><li>Asset capitalization for Sufficiency Economy </li></ul><ul><li>Asset capitalization for vocational education </li></ul>
  29. 29. Important Projects /Activities <ul><li>Asset capitalization based on Islamic characteristics </li></ul><ul><li>Asset capitalization in artistic circles </li></ul><ul><li>Asset capitalization for provincial festivals </li></ul><ul><li>Asset capitalization in the Bangkok Metropolitan Area </li></ul><ul><li>Asset capitalization for special projects </li></ul><ul><li>Conducting public seminars </li></ul><ul><li>Conducting international meetings </li></ul><ul><li>Central database for asset capitalization </li></ul>
  30. 30. Afterthoughts <ul><li>ACB is not a pawn shop </li></ul><ul><li>Aim for a knowledge based society </li></ul><ul><li>Lead the country in the Thai way </li></ul><ul><li>Aim for a moral society </li></ul>
  31. 31. The End Thank you
  32. 32. Professor Natee Klibthong Director-General & Chief Executive Officer <ul><li>Assets Capitalization Bureau </li></ul><ul><li>Office of the Prime Minister </li></ul><ul><li>Building 41, Government House </li></ul><ul><li>Phitsanulok Road, Dusit </li></ul><ul><li>Bangkok 10300, Thailand </li></ul><ul><li>Tel. (+66) (0) 2629-9222 </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>[email_address] </li></ul>