Thai Pm Orders Faster Action In Implementing Mega-projects

[george]

Thai PM orders faster action in implementing mega-projects

BANGKOK: -- Concerns over the global financial crisis which has started affecting the Thai economy have prompted Prime Minister Somchai Wongsawat to order concerned government agencies on Friday to accelerate Thailand's long-delayed mega-projects, aimed at easing traffic congestion in the capital and surrounding areas, a deputy government spokeswoman said.

Suparat Nakboonnam said Mr. Somchai told economic ministers during the meeting that disbursement of government budget and spending on mega-projects is now seen as vital as it could create employment and revenue for related industries such as the construction industry.

The prime minister urged concerned government agencies to speed up work on the mass transit rail systems which would cover most of metropolitan Bangkok and surrounding areas, to improve urban communication and ease traffic congestion, Ms. Suparat said.

Under the government's plan, it would invest about Bt209 billion on the previous announced five routes as the government believes that investment could help Thailand's economy to recover.

Permanent Secretary for Finance Suparat Kawatkul told the meeting that investment in mega-projects from between 2009-2012 would total Bt1.8 trillion.

Mr. Suparat said construction costs for the mass transit rail system alone would total Bt340 billion in 2009 of which the government already has Bt280 billion while another Bt63 billion would come from the government's

central budget of Bt100 billion.

He said the Chinese government has pledged to offer loans to Thailand amounting US$400 million to help finance the mega-projects.

Transport Minister Santi Promphat reportedly told the meeting that the integrated mass transit rail system is delayed due to strict laws and objections on conditions from the Office of the Auditor-General and the Office of the National Counter Corruption Commission.

But Mr. Somchai said any project which concerned government agencies are confident that it is transparent and free of corruption charges, construction should go ahead because parliament committee will also monitor the project as well as its spending besides the two agencies.

Mr. Somchai will on November 5 meet with a number of committees responsible with the mega-projects for discussions of the details.

The government's move to speed the mega-projects comes after the Federation of Thai Industries earlier this week predicted that the ongoing financial crisis, sparked by the US and which has spread to Europe, would reduce new jobs in Thailand in 2009 by about one million.

-- TNA 2008-10-31

[slapout]

Well if the first step is to ensure the project is free of corruption and transparent, this upcoming peroid should be the least productive in Thailands history of government and constuction.

[h90]

Well if the first step is to ensure the project is free of corruption and transparent, this upcoming peroid should be the least productive in Thailands history of government and constuction.

????

I thought that is the purpose of mega-projects.....To fill the pockets to rise the money for the next vote buying.

[TAWP]

"Speed up the process of moving money from the government and into our pockets, before we are thrown out!"

[Martin]

Daft.

Doesn't he remember what happened in the last 'economic downturn' in 1997?

The unemployment hit the migrant workers particularly (as it will again), they went home to their villages (as they will again), and Bangkok's traffic congestion eased enormously (as it will again).

The mega-project that should be brought forward is the doubling of all the single-line railways through the provinces to give a transportation 'backbone' for the freight of the future (rice, sugar and gold/copper concentrate) when trucking gets far too expensive with the rise in the price of oil (as it will do again).

But the Bangkokians can't think further than Bangkok, which, even in its present bloated state, only holds 18% of the population of Thailand (10.7 million out of 60 million).

Without orders from the 'West' for the factories that have been doing manufacture for export, there is the prospect of a far, far nicer Bangkok as its population shrinks at, say, 3% per annum (which will halve its population over twenty years and halve it again over the next twenty years).

Bangkok's present roads, Skytrain and Subway will suffice for it for as far into the future as can be reasonably foreseen.

[AlKing]

But the Bangkokians can't think further than Bangkok

Very true. I don't even think of those Pattaya bg.

[animatic]

Suparat Nakboonnam said Mr. Somchai told economic ministers during the meeting that disbursement of government budget and spending on mega-projects is now seen as vital as it could create employment and revenue for related industries such as the curruption industry.

Let's call a spade a shovel for a change.

[Los78]

The more projects going ahead is all good for the local economy especially in these unpredictable times. Good luck to them going ahead.

[h90]

The more projects going ahead is all good for the local economy especially in these unpredictable times. Good luck to them going ahead.

Very local economy...

For one families economy

[Los78]

The more projects going ahead is all good for the local economy especially in these unpredictable times. Good luck to them going ahead.

Very local economy...

For one families economy

Exactly how can infrastructure, roads benefit only one family???. Hmm okay so when you drive on the new roads and use new facilities then you are not benefiting? Seems like trolling again coming from the regulars.

[h90]

The more projects going ahead is all good for the local economy especially in these unpredictable times. Good luck to them going ahead.

Very local economy...

For one families economy

Exactly how can infrastructure, roads benefit only one family???. Hmm okay so when you drive on the new roads and use new facilities then you are not benefiting? Seems like trolling again coming from the regulars.

If you buy roads with a 50 % corruption, it benefits the corrupt family only. The "normal" guy paid does not get the straight for free, he paid the double price for it.

or where do you think the money comes from? It is taxpayers money.

[Samuian]

war chest's empty?

guess it's the perfect time to push for these massive spending's and get away with it!

[fidelio]

The more projects going ahead is all good for the local economy especially in these unpredictable times. Good luck to them going ahead.

Very local economy...

For one families economy

Exactly how can infrastructure, roads benefit only one family???. Hmm okay so when you drive on the new roads and use new facilities then you are not benefiting? Seems like trolling again coming from the regulars.

If you buy roads with a 50 % corruption, it benefits the corrupt family only. The "normal" guy paid does not get the straight for free, he paid the double price for it.

or where do you think the money comes from? It is taxpayers money.

Whose money do you think paid for Paris,London or New York's Metro lines???

[TAWP]

I think you are missing the point...

[animatic]

war chest's empty?

guess it's the perfect time to push for these massive spending's and get away with it!

Exactly the money skimming starts with DESIGN and company DEPOSITS and Materials SEARCH FEES.

Materials Specs being under cut, don't forget to pay off the architects to pretend their specs were met,

so the executives could lower alloy ratio counts in the steel, so they could pay off the Pol

who directed the deal to them... and on and on....

1/3 - 1/2 of the cash is gone before earth movers arrive, or one sack of cement shows up at site.

And right back into the pols war chest to keep them all at the gravey trains and not waiting at the station.

Edited November 1, 2008 by animatic

[brahmburgers]

But the Bangkokians can't think further than Bangkok

Very true. I don't even think of those Pattaya bg.

I agree: Thailand is essentially Bangkok - from most power brokers' perspective.

I also don't think the project proposals are Somchai's. He's more like the puppet with strings being manipulated by others.

Somchai, in word and deed, seems very much like a follower, who would be happy to attend perfunctory functions all day, rather than govern. Trouble is: Thailand seems to get one sort of leader or the other: It gets either timid/fading recessive follower-types like Somchai, and the PM who preceded Thaksin (can't recall his name), and the interim PM installed by the brass during the coup. Or it gets blustering bulls in China Shops, like Thaksin and Samak.

Neither type is decent leadership material.

Edited November 1, 2008 by brahmburgers

[thailand_tom]

i thought thailand had money ? why would they need to borrow 400 million usd from china ? what is the debt of thailand, since if they had to borrow money then there is not a surplus, i thought they paid all their loans off a few years ago they got from the imf. and i thought i read a few days ago they had plenty of money to weather a reccesion.

[jdinasia]

Daft.

Doesn't he remember what happened in the last 'economic downturn' in 1997?

The unemployment hit the migrant workers particularly (as it will again), they went home to their villages (as they will again), and Bangkok's traffic congestion eased enormously (as it will again).

The mega-project that should be brought forward is the doubling of all the single-line railways through the provinces to give a transportation 'backbone' for the freight of the future (rice, sugar and gold/copper concentrate) when trucking gets far too expensive with the rise in the price of oil (as it will do again).

But the Bangkokians can't think further than Bangkok, which, even in its present bloated state, only holds 18% of the population of Thailand (10.7 million out of 60 million).

Without orders from the 'West' for the factories that have been doing manufacture for export, there is the prospect of a far, far nicer Bangkok as its population shrinks at, say, 3% per annum (which will halve its population over twenty years and halve it again over the next twenty years).

Bangkok's present roads, Skytrain and Subway will suffice for it for as far into the future as can be reasonably foreseen.

You should visit BKK sometime soon and leave the extremely limited area that BTS and MRT serve! Park your car and try to get around town a bit (park your car and motorcycle too).

As for the rest of your predictions .... are you honestly suggesting that in 40 years BKK will be only 25% of its current (unknown) population?

[brahmburgers]

i thought thailand had money ? why would they need to borrow 400 million usd from china ? what is the debt of thailand, since if they had to borrow money then there is not a surplus, i thought they paid all their loans off a few years ago they got from the imf. and i thought i read a few days ago they had plenty of money to weather a reccesion.

Thailand does have cash reserves, but the top bankers here appear to want to follow the herd mentality - of borrow borrow borrow.

If they were smart, they'd spend some of their reserves on the most important projects - and avoid borrowing. However, their myopic "live for today, the heck with tomorrow" attitude, will get them in the same quicksand that larger economies are currently stuck in - namely: credit crunch and can't pay back debts - needing ever greater inputs of loans to feed their habits.

Not unlike a junkie - who needs ever greater amounts of dope - each passing day.

[Jai Dee]

Suchart say Govt to speed up stimulus projects to help grassroots

Finance Minister Suchart Thadathamrongvech said Sunday that the government will speed up economic stimulus packages to help the grassroots.

Speaking live on NBT, Suchart said the government would rush to implement three major projects to inject money to help the grassroots people.

He said the government would spend Bt130 billion to stimulate the economy through the revolving village funds, the funds to help small, medium and large villages and to provide money to help Otop (One Tambon One Product) projects.

Source: The Nation - 03 November 2008

[animatic]

Suchart say Govt to speed up stimulus projects to help grassroots

Finance Minister Suchart Thadathamrongvech said Sunday that the government will speed up economic stimulus packages to help the grassroots.

Speaking live on NBT, Suchart said the government would rush to implement three major projects to inject money to help the grassroots people.

He said the government would spend Bt130 billion to stimulate the economy through the revolving village funds, the funds to help small, medium and large villages and to provide money to help Otop (One Tambon One Product) projects.

Source: The Nation - 03 November 2008

All code words for pre-election 'Cash For Kamnans',

to dole out, and maintain political order in villages.

Edited November 3, 2008 by animatic

[Jai Dee]

3rd village funds implemented in 2009

The Government plans to implement the third round of village funds in 2009, in addition to 95 billion baht to be injected to village funds to about 40,000 villages nationwide by the middle of this month, according to the Minister of Finance.

Beginning on November 1, Mr. Suchart Thada-Thamrongvech, the Minister of Finance said that the Government has implemented rice mortgage scheme to help sustaining rice prices to help farmers at large. The scheme involved some 80 to 90 billion baht budget.

The next mortgage schemes would cover corn and cassava.

All parties urged to participate

Urging all factions in the Thai economy to participate in pushing the country forward to be competitive with its rival neighboring nations, Mr. Suchart told audiences of the People’s Government’s programme on the National Broadcasting services of Thailand (NBT) channel yesterday morning (November 2) that if the country failed to leap forward its competitiveness in the long term would be at stake and would in the long term lag behind its neigbouring nation’s economies.

The Government, he said, needed to implement the village funds projects as well as instruct state-owned banks to extend credit to local grassroot people to stimulate and turnaround local economy.

Defending state run banks, he said that past operations have proven that bad debts from such state banks as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives (CAAP) were a mere three to four per cent.

Creating opportunities for 40 million Thai people

These funds, he stressed, create ample opportunities for some 40 million Thai people nationwide in terms of their lives, their offspring’s education, and benefitting the local economy as a whole.

Normally, he said that the funds, when being distributed to local people, would generate around 10 times multiple effect to the economy.

It would help boosting value added tax (VAT) from about 40 million rural people nationwide to help balancing corporate tax paid by about 10 million entrepreneurs.

Laws too rigid

He said that an attitude to find faults with officials working out budget to help local projects should be rectified as presently the case, adding prevailing laws and regulations were too stringent discouraging people and officials from joining projects benefiting the country and people.

95 billion baht for second round of village funds

The Government, he said, planned to inject some 95 billion baht into about 40,000 villages nationwide in November, regarded as the second round of the funds aiming to help improving local people’s living conditions, to help educating their offspings, and to help developing the country.

Regarding One Tambon One Product (OTOP) scheme, he said that the OTOP brand would be revitalized in mid November to facilitate local products to be exported overseas and to be sold in domestic markets.

Stressing the government’s budget accounting for some 25 per cent, or amounting to some 2.5 trillion baht, of local gross domestic product (GDP), the Minister of Finance said that 75 per cent would need cooperation from all factions in the Thai society to help contributing the the economy.

So, if GDP retreated by one per cent, the national budget must be boosted by some three per cent, he noted.

At the moment, he said that exports contributed for some 65 per cent, or amounting to some six trillion baht at the moment, to the country’s GDP. So, an expected five to 10 per cent growth of exports in 2009 was not so significant. While investment amounted to some two trillion baht.

Deferral of deposit guarantee aimed to enhance confidence

Regarding last week’s cabinet approval to extend regressive deposit guarantee to the next three years, instead of in 2009, Mr. Suchart said that the measure, proposed as a decree by his ministry, was aimed at enhancing depositors’ confidence that they money deposited at financial institutions would not disappear.

The measure also ensures that financial institutions would not trim overdraft loans’ extension. It also held lessens worries of capital outflow. The Bank of Thailand (BOT), he said, takes care of financial liquidity in the local financial market to be accessible as loans to all real sectors in the local economy.

BOT’s officials said earlier that at the moment, about one trillion baht liquidity was available in the local financial market.

JICA’s loans available for electric trans

Regarding mega infrastructure projects, the Minister of Finance said that the Government planned to further develop electric trains for additional three routes with a route in bidding process, He stressed that sources of funds for the project were available as soft loans from Japan International Cooperation Agency (JICA0, a Japanese government’s agency.

The Government planned to allot altogether eight trillion baht to finance these projects. It would also build up trams, local reservoirs, roads, bridges nationwide.

The infrastructure projects were accelerated for implementation to turnaround local economy following a meeting last Friday (October 31) chaired by Prime Minister and Minister of Finance Mr. Somchai Wongsawat. The next meeting is scheduled on November 5.

100 billion baht budget pending hearings

Regarding the Government’s planned allocation of additional 100 billion baht budget to stimulate local economy, Mr. Suchart said that the measure would wait for a while before being forwarded to seeking cabinet’s endorsement as the authorities wanted all concerned, including general public, MPs, and senators, to participate in allocation process.

Source: National News Bureau of Thailand - 03 November 2008

[animatic]

3rd village funds implemented in 2009

The Government plans to implement the third round of village funds in 2009, in addition to 95 billion baht to be injected to village funds to about 40,000 villages nationwide by the middle of this month, according to the Minister of Finance.

Beginning on November 1, Mr. Suchart Thada-Thamrongvech, the Minister of Finance said that the Government has implemented rice mortgage scheme to help sustaining rice prices to help farmers at large. The scheme involved some 80 to 90 billion baht budget.

The next mortgage schemes would cover corn and cassava.

All parties urged to participate

Urging all factions in the Thai economy to participate in pushing the country forward to be competitive with its rival neighboring nations, Mr. Suchart told audiences of the People’s Government’s programme on the National Broadcasting services of Thailand (NBT) channel yesterday morning (November 2) that if the country failed to leap forward its competitiveness in the long term would be at stake and would in the long term lag behind its neigbouring nation’s economies.

The Government, he said, needed to implement the village funds projects as well as instruct state-owned banks to extend credit to local grassroot people to stimulate and turnaround local economy.

Defending state run banks, he said that past operations have proven that bad debts from such state banks as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives (CAAP) were a mere three to four per cent.

Creating opportunities for 40 million Thai people

These funds, he stressed, create ample opportunities for some 40 million Thai people nationwide in terms of their lives, their offspring’s education, and benefitting the local economy as a whole.

Normally, he said that the funds, when being distributed to local people, would generate around 10 times multiple effect to the economy.

It would help boosting value added tax (VAT) from about 40 million rural people nationwide to help balancing corporate tax paid by about 10 million entrepreneurs.

Laws too rigid

He said that an attitude to find faults with officials working out budget to help local projects should be rectified as presently the case, adding prevailing laws and regulations were too stringent discouraging people and officials from joining projects benefiting the country and people.

95 billion baht for second round of village funds

The Government, he said, planned to inject some 95 billion baht into about 40,000 villages nationwide in November, regarded as the second round of the funds aiming to help improving local people’s living conditions, to help educating their offspings, and to help developing the country.

Regarding One Tambon One Product (OTOP) scheme, he said that the OTOP brand would be revitalized in mid November to facilitate local products to be exported overseas and to be sold in domestic markets.

Stressing the government’s budget accounting for some 25 per cent, or amounting to some 2.5 trillion baht, of local gross domestic product (GDP), the Minister of Finance said that 75 per cent would need cooperation from all factions in the Thai society to help contributing the the economy.

So, if GDP retreated by one per cent, the national budget must be boosted by some three per cent, he noted.

At the moment, he said that exports contributed for some 65 per cent, or amounting to some six trillion baht at the moment, to the country’s GDP. So, an expected five to 10 per cent growth of exports in 2009 was not so significant. While investment amounted to some two trillion baht.

Deferral of deposit guarantee aimed to enhance confidence

Regarding last week’s cabinet approval to extend regressive deposit guarantee to the next three years, instead of in 2009, Mr. Suchart said that the measure, proposed as a decree by his ministry, was aimed at enhancing depositors’ confidence that they money deposited at financial institutions would not disappear.

The measure also ensures that financial institutions would not trim overdraft loans’ extension. It also held lessens worries of capital outflow. The Bank of Thailand (BOT), he said, takes care of financial liquidity in the local financial market to be accessible as loans to all real sectors in the local economy.

BOT’s officials said earlier that at the moment, about one trillion baht liquidity was available in the local financial market.

JICA’s loans available for electric trans

Regarding mega infrastructure projects, the Minister of Finance said that the Government planned to further develop electric trains for additional three routes with a route in bidding process, He stressed that sources of funds for the project were available as soft loans from Japan International Cooperation Agency (JICA0, a Japanese government’s agency.

The Government planned to allot altogether eight trillion baht to finance these projects. It would also build up trams, local reservoirs, roads, bridges nationwide.

The infrastructure projects were accelerated for implementation to turnaround local economy following a meeting last Friday (October 31) chaired by Prime Minister and Minister of Finance Mr. Somchai Wongsawat. The next meeting is scheduled on November 5.

100 billion baht budget pending hearings

Regarding the Government’s planned allocation of additional 100 billion baht budget to stimulate local economy, Mr. Suchart said that the measure would wait for a while before being forwarded to seeking cabinet’s endorsement as the authorities wanted all concerned, including general public, MPs, and senators, to participate in allocation process.

Source: National News Bureau of Thailand - 03 November 2008

You can just about see him sitting at his desk dictating something that should sound good.

So... they plan on 95 billion injection, but only have 25% of that.

They expect others to put up the rest.. WHO?

They expect a 10 fold benefit of less than 25% of income because of VAT increase.

But in best Ponzi scheme logic, where does the ORIGINAL money come from.

In an impending credit and income crunch, they want to extend MORE credit to the poorest elements.

Thus increasing their credit load and risk.

Ah yes "Soft Loans" Japan is so sweet as to not want much back for their investments eh?

Less money comes in the country but the governmentment takes more to play with?

Stop criticizing the budget planners.

Laws are keeping people from making graft so they don't bother to join programs.

Taking from Peter to pay Paul and telling Mary it will work out in the end.

Edited November 3, 2008 by animatic

[steveromagnino]

I also don't think the project proposals are Somchai's. He's more like the puppet with strings being manipulated by others.

Somchai, in word and deed, seems very much like a follower, who would be happy to attend perfunctory functions all day, rather than govern. Trouble is: Thailand seems to get one sort of leader or the other: It gets either timid/fading recessive follower-types like Somchai, and the PM who preceded Thaksin (can't recall his name), and the interim PM installed by the brass during the coup. Or it gets blustering bulls in China Shops, like Thaksin and Samak.

Neither type is decent leadership material.

I agree, Chuan Leekpai is the guy prior to Thaksin and post Chavalit BTW.

However, Somchai is not quite the puppet people think; let's remember he got justice minister Purachai removed even when Purachai was one of Thaksin's classmates in cadet school, hugely popular (at the time probably the 2nd most popular TRT politician behind Thaksin) and heir apparent for TRT; he has made a fortune personally from megaprojects in telecoms via his wife's company; he may seem like this cleanish judge type but actually his hands are quite filthy already with corruption relating to his wife's company which become mega rich thanks to mega projects plus of course the political interference to nullify the objectivity of the NCCC and also to interfere with various other aspects of politics such as power generation deregulation.

In short, he may look like a puppet, but he pulls a fair few strings and has had 10 years practise at it. But in so far as is he a f&*king corrupt twit, the answer from many would have to be, based on his track record during the TRT years, a unequivocal yes.

He can't govern, that bit I agree with you though :-)

[Samuian]

....edit...

In short, he may look like a puppet, but he pulls a fair few strings and has had 10 years practise at it. But in so far as is he a f&*king corrupt twit, the answer from many would have to be, based on his track record during the TRT years, a unequivocal yes.

He can't govern, that bit I agree with you though :-)

Still believe he will not dare to cross, his wife Yaowapa and through her Takky has a couple of strings to pull, which in turn will be fine tuned by Pojamarn, sure will he be in, but he will have to supply according to the orders, to be in.

This is the wrestling behind the scenes, power support, the newin faction, who manages to have the support of the power wielders, holds the magic wand!

And that holds, after Saturday's show of power, definitely still Takky unchallenged in his hands..

[JimsKnight]

But the Bangkokians can't think further than Bangkok

Very true. I don't even think of those Pattaya bg.

I agree: Thailand is essentially Bangkok - from most power brokers' perspective.

I also don't think the project proposals are Somchai's. He's more like the puppet with strings being manipulated by others.

Somchai, in word and deed, seems very much like a follower, who would be happy to attend perfunctory functions all day, rather than govern. Trouble is: Thailand seems to get one sort of leader or the other: It gets either timid/fading recessive follower-types like Somchai, and the PM who preceded Thaksin (can't recall his name), and the interim PM installed by the brass during the coup. Or it gets blustering bulls in China Shops, like Thaksin and Samak.

Neither type is decent leadership material.

Maybe, but I'll stick with the shrinking violet types any day of the week.

Blustering bulls usually look upon the farang with a baleful eye and act like they're Oliver Cromwell half the time.

[Old Man River]

Strictly from an economic viewpoint (politics aside), these mega projects are important. An economy grows primarily from consumer spending, private investment, government investment and net exports. Given what we know, consumers are not spending, businesses are reticent to invest and the growth in exports is slowing. Hence, that leaves the government to spend and this is exactly what they will be doing.

Many of those that will be building these projects are originally from upcountry and will be sending money back home. As long as these projects are financed responsibly (always a big if), they will benefit a lot more people than just politicians lining their pockets.

[animatic]

Strictly from an economic viewpoint (politics aside), these mega projects are important. An economy grows primarily from consumer spending, private investment, government investment and net exports. Given what we know, consumers are not spending, businesses are reticent to invest and the growth in exports is slowing. Hence, that leaves the government to spend and this is exactly what they will be doing.

Many of those that will be building these projects are originally from upcountry and will be sending money back home. As long as these projects are financed responsibly (always a big if), they will benefit a lot more people than just politicians lining their pockets.

Proper expansion of mass transit is certainly worthwhile. Especialy here.

I just imagine how much more could be built for the same available money.

[TAWP]

It's not a matter of 'will anyone benefit?' it's all about 'to what price?'.

Like paying 500 million for a firewall-setup...

[Los78]

It's not a matter of 'will anyone benefit?' it's all about 'to what price?'.

Like paying 500 million for a firewall-setup...

Wow its so easy to say anything that is not true about the government. Maybe you should back up your accusations about government policies with some proof instead of throwing in your comical remarks. Im curious to know how some of you are such experts in government spending and that in Thailand. Where your fathers in the government? Please explain your wild farang knowledge about government policy in Thailand?