The Export-Import Bank will take the Japan International Co-operation Agency (JICA) as a model for transforming into a development institution, said Exim chairman Narongchai Akrasanee.

Dr Narongchai said Thailand needed an institution like JICA to serve as supporting agency for Thai entrepreneurs investing abroad.

At the same time, Exim would operate domestically, providing advice and financial support to local administrations implementing community development programmes. "Investment by local administrations will increase steadily in the future as the country develops. Local administrations' funding needs will increase as well," said Dr Narongchai.

Legal and budgetary reforms have also given local administrations leeway to issue their own securities to meet development needs, he said.

The Exim Bank has recently expanded beyond trade financing services to focus more on lending to small businesses, financing investment abroad, providing business advisory services and delivering project and export insurance.

Dr Narongchai said Exim staff had begun training with JICA to gain greater expertise in financing and managing infrastructure projects, in anticipation of higher demand over the next few years as Thailand ramps up new investment.

The Abhisit Vejjajiva government has pledged to invest 1.56 trillion baht over the next three years in water management, mass transit, utilities, social services and logistics infrastructure.

Dr Narongchai said he fully supported the infrastructure programme. But he added that investors are waiting for more information about projects and financing terms before making a commitment.