"Although the tsunami hit nearly two years ago, a joint survey by the EU and the BAAC found many communities had yet to get back on their feet. More help is needed, especially in the area of economic rehabilitation," Erik Habers, counsellor of the European Commission delegation to Thailand, told a press conference yesterday. The EU will put up ¤3.53 million (Bt165 million) for projects carried out by eligible NGOs under the supervision of the BAAC, Habers said.

The grant is an extension of the social support programme initiated by the EU to alleviate poverty and stimulate the rural economy in districts of the Northeast, North and South adversely affected by the 1997-98 financial crisis.

Ennoo Suesuwan, BAAC senior vice president, said the bank would contribute 10 per cent of the funds and select both local and European NGOs to carry out assistance projects in tsunami-affected communities in Krabi, Phang Nga, Phuket, Ranong, Satun and Trang.

The NGOs would ensure the effectiveness of the social projects - such as job training, infrastructure improvement, environmental rehabilitation and health campaigns - as they work closely with the communities, he said.

Habers said he was satisfied with the performance of NGOs since the EU launched the social support project in 2001.

Ennoo said the BAAC's role was the third phase of support for southern communities, following emergency and reconstruction phases.

Since the tsunami disaster, the BAAC has written off Bt19.27 million in loans to borrowers who lost their lives, restructured debts of Bt745 million, provided Bt299.61 million in soft loans and offered job training worth Bt4.5 million.

Habers expressed confidence that southern tourism would revive from the devastation wrought by the tsunami.

Wichit Chaitrong

The Nation