Alternatives to Chinese money sought for high-speed rail

[snoop1130]

Alternatives to Chinese money sought for high-speed rail

By Teeranai Charuvastra, Staff Reporter

 

A file photo of junta chairman Prayuth Chan-ocha checking out a model train.

 

BANGKOK — Foreign loans for the Thai-Chinese, high-speed rail project will be minimal and not bound to China’s whims, officials said.

 

The Finance Ministry announced today that it will seek funding for 80 percent of the project from domestic sources to address criticism the massive investment would put the country in debt bondage to Beijing.

 

Full Story: http://www.khaosodenglish.com/news/business/2019/01/31/alternatives-to-chinese-money-sought-for-high-speed-rail/

 

-- © Copyright Khaosod English 2019-01-31

[from the home of CC]

Malaysia just basically said the same for a 20 billion project, the dragon must be pissed...

[DrTuner]

Finally good news. Don't let the commies play loansharks.

 

A few African countries have made the mistake: https://www.standardmedia.co.ke/article/2001295448/how-china-is-feeding-off-poor-africa

Edited January 31, 2019 by DrTuner

[trigpoint]

Chinese has got Cambodia in its pocket, Malaysia shown em the door, now Thailand, hopefully Chinese domination temporarily halted. 

[PatOngo]

55 minutes ago, snoop1130 said:

Alternatives to Chinese money sought for high-speed rail

Suggestion!

 

[Sir Dude]

Wise move Thailand. There are a few getting cold feet about this subject as the Chinese seem to have successfully weaponized investment and tourism now.

[whooshbang]

Is this what is propping up the strength of the THB? The Chinese investors?

 

[Dumbastheycome]

2 hours ago, whooshbang said:

Is this what is propping up the strength of the THB? The Chinese investors?

 

There is  no "propping " of the  Thai  Baht. It  just  coasts  along as the  currency of the  second  biggest  economy  of SEA. No intervention  deemed  necessary.

That  many western  economies  are sliding or flat is the reality.

 

[BigBadGeordie]

1. Of course I love you.

2. The cheque is in the post.

3. Yes, I will respect you in the morning.

4. No I will not cum in your mouth.

[Srikcir]

3 hours ago, snoop1130 said:

The Finance Ministry announced today that it will seek funding for 80 percent of the project from domestic sources to address criticism the massive investment would put the country in debt bondage to Beijing.

Just to be clear - project is already under construction which means the nation is currently in debt to Beijing.

• As of November 24, 2018 the 26th joint committee meeting between Thailand and China on the Bangkok - Nong Khai high speed railway project has reached an agreement on Contract Number 2.3 related to the track laying, train operation system installation, and signalling system installation on the 252-kilometer section between Bangkok to Nakhon Ratchasima as the first phase of the railway. 
• The committee has expected the contract to be officially signed in January and has negotiated a cut in the loan interest rate, which was previously offered by the Chinese government from three percent to 2.6 percent. https://www.thaivisa.com/forum/topic/1070107-preparations-for-first-section-of-bangkok-nakhon-ratchasima-high-speed-rail-project-finished/?utm_source=newsletter-20181124-1258&utm_medium=email&utm_campaign=news

So NOW the idea is to seek funding for 80% of the project from domestic sources?

2015-02-07:

• The government is mulling whether to borrow money from local financial institutions to fund the Bt400-billion Thai-China dual-track rail project if a funding deal cannot be reached with Beijing....we can borrow from local financial institutions as we have enough domestic liquidity for the project," Transport Minister ACM Prajin Juntong. http://www.nationmultimedia.com/Govt_may_tap_funds_locally_for_rail_project-30253616.html
• Transport Minister ACM Prajin Juntong briefed Li Yong, head of the United Nations Industrial Development Organisation, on a proposal by the Chinese government for the two countries to jointly seek a loan from the Export-Import Bank of China to fund the dual-rail project. http://www.nationmultimedia.com/Govt_may_tap_funds_locally_for_rail_project-30253616.html

2015-03-12:

• Thailand is expected to control the project with the State Railway of Thailand having a 30% stake and private Thai firms having another 30% stake. Chinese state enterprises will have a 40% stake in the company. Thaivisa.com

2015-11-25:

• The prime minister has made clear his strong wish to see a joint railway project between Thailand and China to reach satisfactory agreement as soon as possible. Thai PBS

2016-03-24:

• Gen Prayuth affirmed that China would not be investing in the railway and would only be contributing to its construction and technological installations. NNT

2018-11-24:

• The 26th joint committee has expected the contract to be officially signed in January and has negotiated a cut in the loan interest rate, which was previously offered by the Chinese government from three percent to 2.6 percent. https://www.thaivisa.com/forum/topic/1070107-preparations-for-first-section-of-bangkok-nakhon-ratchasima-high-speed-rail-project-finished/?utm_source=newsletter-20181124-1258&utm_medium=email&utm_campaign=news

So to date China never was interested in a joint venture with Thailand nor apparently was there any investment interest by domestic sources. Maybe this might be cause for their concern:

• Former finance minister Korn Chatikavanich of the Abhisit government warned the government that its decision to go it alone with the Bangkok-Nakhon Ratchasima medium-speed train would cause a heavy financial burden to the state. Thai PBS 2016-03-29
• Opponents of the Yingluck Shinawatra administration warned that its grand infrastructure plans, including a high-speed train, would sink the country in debt. The Nation 2017-06-20
• Academics have cautioned that the Sino-Thai high-speed train project could end in bankruptcy and fail to develop sought-after technology in Thailand. The Nation 2017-6-22

As a special note, NCPO order 30/2560 issued to rush the project may have opened loopholes for corruption.

• “The laws that have been waived in the NCPO order include the Concerning Offences Relating to the Submission of Bids to Government Agencies Act, which we use as the legal tool to punish wrongdoers in government agencies,” - Mana Nimitmongkol, head of the Anti-Corruption Organisation of Thailand, The Nation 2017-06-21 http://www.nationmultimedia.com/news/business/30318643

In addition Prayut invoked Article 44 to also expedite the project that in part by-passed economic analysis for the project's viability to meet its debt service obligations.

 

[IAMHERE]

Why do they show pictures of a passenger train? I thought this was strictly freight. 

[Eric Loh]

16 hours ago, snoop1130 said:

Foreign loans for the Thai-Chinese, high-speed rail project will be minimal and not bound to China’s whims, officials said.

Bold statement but loaded with caveats. The loan from China is definitely not off the table. Depends on the interest rate. The domestic portion of the loan will depend on the 12.5 year bond coupon rate which is 2.8% per year. I think the Chinese EXIM is willing to offer 2.3%. The junta has dug themselves deep in this flagship project with no wriggle room due to contracts already signed. It will be a burden to the next elected government.    

[Cadbury]

2 hours ago, IAMHERE said:

Why do they show pictures of a passenger train? I thought this was strictly freight. 

I am sure it is both. They have everything organised back to front as usual. The new Bang Sue train station is being built to accommodate the HS trains and the ticket prices have been set.

So just about good to go; just need the money and the trains and the tracks. 

[GeoMill]

Glad Thailand has decided to steer away from the chinese debt trap. There have been so many countries falling for it that are now being forced to give essentional assets away to China. 

[HalfLight]

Oh dear. Serious loss of face for Chanocha after bignoting himself to the stars when the China agreements were brokered.

 

Many people suspected all was not well, when a distinct lack of progress on the HS Lines was noticed.

 

Oh dear. Who's a silly boy then?

[Ossy]

Yes, it's one of those things that daddy may have told you about when you were a nice little boy and he was putting you to sleep (oh, if only) . . . it's an express train and they go really fast, provided that someone's got the dosh to pay for putting those metal things down. Did you say 'tracks' then? . . . there's a good boy, Tu. Now then, which model next . . . a working airport, maybe.

[Johnnyngai]

No easy loans from a former third world country such as mainland China.  

 

Loans from Europe or the USA are of better terms.        

 

[PETERTHEEATER]

19 hours ago, PatOngo said:

Suggestion!

 

Did you miss something? We need 80% from domestic sources. Now go out and buy more Monopoly sets please!????

[Airalee]

1 hour ago, Johnnyngai said:

 

Loans from Europe or the USA are of better terms.        

 

I can recommend a book with regards to how the US entrapped many countries through onerous debt.

 

Confessions of an Economic Hitman by John Perkins

 

https://www.amazon.com/Confessions-Economic-Hit-John-Perkins/dp/0452287081/ref=sr_1_2?ie=UTF8&qid=1549007361&sr=8-2&keywords=confessions+of+an+economic+hitman+by+john+perkins

[Chris Lawrence]

"Media reports in December also suggested that a Kenyan port in Mombasa – financed by China – is at risk of a Chinese takeover if loan payments are not met. Kenyan president Uhuru Kenyatta later disputed those claims as “pure propaganda.”

 

Something has gone cold? Strange comment in a Government led news style of reporting for brownie points system.

 

Srik, don't do head miles on this. Don't matter what we say, its all under the carpet.

[xtrnuno41]

Like with the submarines, do you need it?

Is it profitable ? How many people would use it, driving with 500 km/h ? Ticket price to the plane ratio?!

Better make a normal one (can do 200 km/h?)which you also can use for transporting goods.

Improve and expand regular system. 

THe high speed is only for Chinese to prove, they can make it. If its good, nobody knows.

In Holland they were working on such a project with Italian high speed (Feyera), a total disaster with many 100 millions euro lost.

[chainarong]

23 hours ago, from the home of CC said:

Malaysia just basically said the same for a 20 billion project, the dragon must be pissed...

China is battling to sell this product.

[chainarong]

Mean while,  the pollution gets worse, there's more trucks on the roads and this un- representative swill the Government of Thailand pushes for a single dedicated rail track that only will carry people , no freight and cost the economy dearly.

Edited February 1, 2019 by chainarong

[pattayadgw]

All these mega projects funded by China and going to haunt this country for many many moons to come... so so sad.  This whole scenario has been predictable from the onset and now you watch when it's time for him and his buddies to go.... he's going to kick and squeal like all minors do when they don't get their way. 

[Thailand]

With all the retirees having to leave money dead in the bank in the future they will have plenty of funds to play with.

No doubt foreigners will be given shares in the projects. ????

[overherebc]

I need new glasses, I thought it read as alternatives to fast money sought for Chinese railway.

Specsavers tomorrow for me.