GOVERNMENT WILL NOT ALLOW DEBTS FROM MEGAPROJECTS TO EXCEED 50% OF GDP

The government has designated that debts arising from construction in the megaprojects must not exceed 50% of economic growth. Meanwhile repayment of the debts must not exceed 16% of yearly expenditures.

Yesterday the Thailand Partnership for Development event was held at Government House, where 140 diplomats from 70 countries attended to receive details on the construction of megaprojects.

Prime Minister Thaksin Shinawatra said Thailand wants to develop its entire infrastructure system, and he asked that the diplomats bring the information back to present to investors in their respective countries. Mr. Thaksin assured them that he will chair April's selection process for the company that would undertake the megaprojects.

Transpot Minister Phongsak Raktaphongphaisarn (พงษ์ศักดิ์ รักตพงษ์ไพศาล) said initially France, the U.K, Russia, Germany, Japan, South Korea, and China have expressed interest in the 10 lines of electric trains. In the 3rd week of January interested entrepreneurs will be invited to receive initial criterian for the electric train projects, which would also concern the issue of which line to be built as 'heavy rail' and which as 'light rail'. The private sector will be required to handle all costs, while the Thai government would continually pay back the amount or use barter trade.

Each company's proposal of details would be broadcast live in order for the public to see and foster transparency.

Source: Thai National News Bureau Public Relations Department - 15 December 2005

Borrowing half of what you earn, sounds like a slippery slope to be on.