Purple Line Metro Gets The Green Light

[george]

Purple line metro gets the green light

Government to invest in project to speed up implementation;

Cabinet approval to be sought within a month

BANGKOK: -- The government has decided to invest in the Purple Line metro to speed up implementation of the long-delayed project considered a crucial tool to boost the economy.

Finance Minister Chalongphob Sussangkarn said yesterday that to push through investment in the Purple Line rail route, the ministries of finance and transport, as well as the National Economic and Social Development Board had agreed to separate the investments in the rail system and the rolling stock.

"The government will proceed with the investment in the rail system. We're asking for the Cabinet's approval within a month," Chalongphob said at the annual seminar by the National Economic and Social Advisory Committee in Pattaya.

Meanwhile, Deputy Transport Minister Sansern Wongcha-um yesterday insisted that despite delays, a number of local and foreign investors are still interested in bidding for the mass-transit projects.

"The projects are still on and they show progress, though not in line with the original schedules. There are some obstacles in the details which need to be addressed," Sansern said.

A source at the ministry said that investors interested in the bidding include Italian-Thai Development, Ch Karnchang, Sino-Thai Engineering and Construction, Tokyo Construc-tion, China Railway and China State Construction Engineering.

The Cabinet, in November last year, approved investments in five rail routes, which will have a combined length of 118 kilometres and require a total investment of Bt165.4 billion. The Purple Line, from Bang Sue to Bang Yai, is one of the routes approved. The Thaksin administration originally approved investing in 10 lines.

The project has been long delayed despite calls from the private sector, which wanted the government to spearhead spending to boost the sagging economy. The Thai Chamber of Commerce, while reporting that the consumer-confidence index in August dropped to a 65-month low, said the investment would be crucial to lifting economic sentiment in the fourth quarter now that export growth has slackened.

Chalongphob agreed.

"In light of lower export growth, the government must take charge of investment to boost the economy. I think the next government also needs to follow this line while having to maintain some populist policies to take care of the poor," he said.

Chalongphob said the decision to split the investment into two parts would speed up the spending. The delays were due to uncertainties concerning the arrangements for joint public and private investment. The uncertainties have also resulted in delay in loan approval by the Japan Bank for International Cooperation (JBIC).

He noted that if JBIC cannot approve the loans for such investments in time, the Finance Ministry will tap domestic funds as state and private banks are ready to lend due to ample liquidity in the market. The domestic interest rates are also low, he said.

"I understand that there could be delays in JBIC's loan approval as Japan's prime minister has resigned and JBIC is also undergoing restructuring. Still, we want to tap a loan from JBIC," he said.

Earlier, the Energy Ministry proposed channelling funds under the Oil Fund's supervision to finance the rail construction.

Energy Deputy Permanent Secretary Kurujit Nakornthap said the decision to go ahead with the project is based on the fact that mass-transit systems would reduce energy consumption. Traffic jams contribute to low energy efficiency, as commuters lack alternative means of transport and stick to their personal vehicles.

The Thai Chamber of Commerce's energy committee chairman Sanan Angubolkul supported the decision, saying that with these funds, the mass-transit investment would be kicked off and energy imports would eventually decline.

-- The Nation 2007-09-14

[teejay]

bang sue to bang yai? any idea as to what roads it will follow? (i.e. up prachacheun rd. then over to ngam wongwan then over to bang yai, etc.)

[Mid]

"I understand that there could be delays in JBIC's loan approval as Japan's prime minister has resigned and JBIC is also undergoing restructuring. Still, we want to tap a loan from JBIC," he said.

V's

A source at the Transport Ministry said JBIC was still reluctant to extend the loan to Thailand because the loan approval process involves many agencies and the term of the current Thai government is due to end in the next few months.

Also, the recent declaration of resignation by Japanese Prime Minister Shinzo Abe had also put the negotiation process for the loan on hold.

cite

[bino]

bang sue to bang yai? any idea as to what roads it will follow? (i.e. up prachacheun rd. then over to ngam wongwan then over to bang yai, etc.)

There is a map here.

Not very large scale, but will give you an idea.

[stumonster]

there is a lot of new housing estates over the other side of the river there

[nothingleftbutfaith]

"I understand that there could be delays in JBIC's loan approval as Japan's prime minister has resigned and JBIC is also undergoing restructuring. Still, we want to tap a loan from JBIC," he said.

V's

A source at the Transport Ministry said JBIC was still reluctant to extend the loan to Thailand because the loan approval process involves many agencies and the term of the current Thai government is due to end in the next few months.

Also, the recent declaration of resignation by Japanese Prime Minister Shinzo Abe had also put the negotiation process for the loan on hold.

Usual bullshit from the local media. The truth is that JBIC will never lend money to a non elected government.

[pete_r]

"I understand that there could be delays in JBIC's loan approval as Japan's prime minister has resigned and JBIC is also undergoing restructuring. Still, we want to tap a loan from JBIC," he said.

V's

A source at the Transport Ministry said JBIC was still reluctant to extend the loan to Thailand because the loan approval process involves many agencies and the term of the current Thai government is due to end in the next few months.

Also, the recent declaration of resignation by Japanese Prime Minister Shinzo Abe had also put the negotiation process for the loan on hold.

Usual bullshit from the local media. The truth is that JBIC will never lend money to a non elected government.

My thoughts exactly. It's not because Thailand has had a coup and military junta, no, it's because of some restructuring going on in Japan. Oh, and Mr. Abe just resigned last week, that's another handy excuse to add to the list, innit?

[cclub75]

My thoughts exactly. It's not because Thailand has had a coup and military junta, no, it's because of some restructuring going on in Japan. Oh, and Mr. Abe just resigned last week, that's another handy excuse to add to the list, innit?

Furthermore, how many times the Purple line... received a "green light" ?

It's the Loch Ness Monster.

Do you remember that thoses so called "mega projects" were launched by Thaksin... in the end of 2004 !

3 years already... and... well nothing really new.

More seriously, they don't have a clue about financing. JBIC was the easy bet. Unfortunatly, it won't happen. At least on short term.

[Mid]

Local liquidity sufficient for subway financing

Sunday 16 September 2007 04:50:51 PM (GMT+7:00)

BANGKOK, Sept 16 (TNA) - Thailand's domestic liquidity is sufficient to finance the government-sponsored metropolitan Bangkok mass transit system, but the government must guarantee the loan, Nattapol Chavalitcheevin, president of the Thai Bond Market Association said on Sunday.

The idea floated earlier by the Finance Ministry to borrow funds to finance the subway system domestically is timely because liquidity inside Thailand is still ample, while interest rates are still low, Mr. Nattapol said.

But the government must act as guarantor, he said.

snip

etna.mcot.net

members.tripod.com

[PeaceBlondie]

Do my eyes deceive me, or is that purple line a skytrain at both its ends, and a subway going through the CBD? That reminds me of the north-south elevated in Chicago, which goes underground through the Loop.

[narawit]

One thing for sure- Rattanatibet Road will remain the undisputed champ for traffic jams for the next 3-5 years!!!

there is a lot of new housing estates over the other side of the river there

[Payboy]

of course this means they have to pull down those flyovers they built on all the rattanathibet intersections just recently

[Jai Dee]

Purple line of sky-train is expected to be proposed to Cabinet tomorrow

The Deputy Minister of Transport, Mr. Sansern Wongcha-um (สรรเสริญ วงศ์ชะอุ่ม), reveals that the expansion of the sky-train's purple line, connecting Bang Yai (บางใหญ่) and Bang Sue (บางซื้อ), will be ready for proposal to the Cabinet meeting tomorrow (October 2nd).

Mr. Sansern says the National Economic and Social Development Board (NESDB) will be responsible for completing the proposal on the expansion of the purple line. As for the source of fund to finance the initial investment, the Deputy Minister of Transport says it will rest upon the Finance Ministry’s consideration.

Source: Thai National News Bureau Public Relations Department - 01 October 2007

[Jai Dee]

Transport Ministry to propose purple line plan to Cabinet

At the Cabinet meeting today (October 2nd), the Ministry of Transport will propose the construction plan of the sky-train's purple line, connecting Bang Yai and Bang Sue. The construction plan will require a budget of about five billion baht.

If the Cabinet approves the proposal, the construction plan is expected to conmmence at the beginning of next year.

Source: Thai National News Bureau Public Relations Department - 02 October 2007

[Jai Dee]

Cabinet go-ahead for Purple Line

Govt may turn to China for funding amid JBIC hesitation: minister

The Cabinet yesterday approved the long-awaited Purple Line mass-transit system, worth Bt55 billion, connecting Bang Sue to Bang Yai.

Deputy Finance Minister Sommai Phasee said the government was considering seeking financial support from the Export-Import Bank of China after some hesitation by the Japan Bank for International Cooperation (JBIC) in approving lending for the project.

The Chinese bank recently showed interest in financing mass-transit and other mega-investment projects in Thailand.

"The government will not wait for loans from the JBIC. We may borrow from the domestic market or other sources," Sommai said, adding that domestic loans might cost 1.2-1.5 per cent more than loans from the JBIC.

The Chinese government, via its Export-Import Bank, is also willing to provide US-dollar terms to Thailand. The interest rate is expected to be 3 per cent, with a 15-year payment contract, he said.

If a Chinese firm wins the bidding to participate in construction of the mass-transit project, part of the funding may come from China, Sommai said.

The new Bt55-billion Purple Line, which will be 23 kilometres long, will connect Bangkok's sprawling weekend market to the capital's southwestern suburbs. It is expected to begin operation in 2012.

Sommai said bidding for the construction would be open to all. Japanese firms could form consortia with local contractors to participate, and if a Japanese firm won, part of the funding could come from Japan.

Transport Minister Theera Haocharoen said the Cabinet assigned the State Railway of Thailand to oversee the civil work, which would cost Bt31.127 billion. An expenditure of Bt1.248 billion will be made to hire a consultant.

Internal bidding for a contractor should be opened this year, with the winning contractor named by next May.

The Transport Ministry plans to call a meeting today of parties involved in the construction of the Purple Line to discuss detailed planning.

As for the Red Line mass-transit route from Bang Sue to Rangsit, the ministry is planning to accelerate its processes, in order to ensure it receives Cabinet approval this month.

Public Debt Management Office director-general Pongpanu Svetarundra said the government planned to borrow Bt8 billion next year to finance the Purple Line. Civil work was expected to cost Bt31 billion. The government will borrow about Bt10 billion over the next three years, he said.

The government has not yet decided who will operate the rapid-transit system. A private company may be hired to operate the train service, he said.

Mass Rapid Transit Authority of Thailand (MRTA) governor Prapat Chongsanguan said if the bidding went as planned, then the authority should have a contractor by next May or June.

"The Finance Ministry will borrow from local and foreign markets to finance the construction," he said.

The MRTA will discuss the cost of land expropriation for the construction with the Treasury Department next week, he said. The issue will be finalised if the cost amounts to Bt9 billion.

The two mass-transit investment projects are part of government efforts to speed up investment at a time when domestic investment and consumption has slowed.

Although Bangkok is notorious for its traffic congestion, the city's existing mass-transit system has only three lines - two aboveground, and one underground - totalling 75km of tracks.

Source: The Nation - 03 October 2007

[quiksilva]

bang sue to bang yai? any idea as to what roads it will follow? (i.e. up prachacheun rd. then over to ngam wongwan then over to bang yai, etc.)

Bang Sue to Rangsit (the Red line) follows Prachachuen, Wat Samian Nari, Ngamwongwan, Laksi, several other un-labeled stops and then up to Rangsit.

I prefer to use what they refer to as "The Logical Map"

Edited October 3, 2007 by quiksilva

[stumonster]

http://www.bangkokmasstransit.com/imagebou...workMap1000.gif

Bang Yai seems to be in the north east to me - but I am easily confused

[samran]

Bang Yai (6) is north west mate, north west.

[stumonster]

Bang Yai (6) is north west mate, north west.

I did say I was easily confused