Thaksin Says Foreign Investment In Mega Projects

[Jai Dee]

PM THAKSIN BELIEVES FOREIGN INVESTMENT IN MEGA-PROJECTS WILL BOOST THAI ECONOMY FOR THIS YEAR

Prime Minister Thaksin Shinawatra deems that foreign investment on the government's mega-projects will contribute to Thailand's economy of this year.

Following the opening of investment on the government-supported mega-projects, the Prime Minister said that Thailand would gain lots of benefits from these projects as the government is allowing foreign investors to take part in the bidding process. He said that there will be no fraudulent in the any process since the government will broadcast the bidding process, and the general public can monitor all procedures.

The premier added that many foreign investors have shown their interest in the projects of sky trains and water resource and environment management.

Prime Minister Thaksin said interested investors have to submit their documents within the 28th of April, and the government can ask for additional information from them. However, he believes that foreign investment will help strengthen the Thai economy.

Source: Thai National News Bureau Public Relations Department - 26 January 2006

[LindsayBKK]

Yeah right! Don't do as I do, do as I say!

I have no qualm about business transactions as long as they are done legally and ethically. In the case of Shin Corp, I am troubled by the fact that they have managed to circumvent paying taxes on these enormous capital gains. Is the profit from the sale taxable? Absolutely. There are plenty of precedents for that. What’s more, many unbiased and credible individuals have come out and said so. How regrettable that the Ministry of Finance and the Revenue Department have absurdly argue otherwise. They must be held accountable for failing to properly discharge their duties.

Certainly, we've lost a lot of income that we should have had earned. No tax gained from the richest family. No trace of illegality or wrongdoing. If we want to erase the morality in the business world, so be it. If this is the way to live happily in Thailand, then we all should now look at how to make ourselves a maximum benefit. We don't have to look what is right or wrong morally. Just try to find the loopholes in the law. This is the the way the world is - according to the richest family of Thailand.

[Jai Dee]

MANY RENOWNED PUBLIC AGENCIES WORLDWIDE ARE KEEN ON THAILAND'S PROJECTS

Transport Minister PONGSAK RAKTAPONGPAISAL (พงษ์ศักดิ์ รักตพงศ์ไพศาล) indicated that many prominent public companies worldwide are interested in joining “Thailand’s Alliance” project which aims at developing the country. Currently, foreign companies are forming groups, in order to propose their bidding prices.

He said after the meeting that many big foreign companies such as Cement Company, where Austria and other its public sectors will jointly invest, are keen to invest in the project. Public companies in France are forming groups to propose their price quotations, while China and Japan will present new design technologies to bid for Thailand’s projects. He, however, said that the companies will show clear signs of their frameworks to implement the projects on April 28th.

The Agriculture and Cooperatives Minister, KHUNYING SUDARAT KEYURAPHAN (คุณหญิงสุดารัตน์ เกยุราพันธุ์), has invited the public sectors to develop methods of fishing tuna fish, in which Thailand stands as the first-rank exporter. Additionally, other countries would like to invest in Thailand’s agricultural development projects.

Source: Thai National News Bureau Public Relations Department - 26 January 2006

[penzman]

I had a chance to watch this on MCOT this morning. Most of the presentation was rather clumsy when the speakers were on. Only 3 questions were asked afterwards...

There was a "funny" moment when one of the speakers said something like " You can find the address to the website in the booklet you were all given but the site has not been translated to English yet..."

[Jai Dee]

THE GOVERNMENT INVITED THAI AND FOREIGN INVESTORS FOR A BRIEFING ON MEGA PROJECTS AT THE GOVERNMENT HOUSE YESTERDAY.

The government invited Thai and foreign investors for a briefing on mega projects entitled “Thailand Partnership for Development” at the Government House yesterday.

The electric train projects received the most attention from the investors. The investors also expressed interests in the water resources management projects. Prime Minister Thaksin Shinnawat (ทักษิณ ชินวัตร) insisted to the meeting that the offers in all the projects will be considered openly and transparently, under the committee set up to consider the projects. He said that 63 million people will observe the selection process and the rules will obstruct partnership, adding that foreign investments in the mega-projects will boost Thai economy this year.

Meanwhile, Defense Minister General Thammarak Issarangkul na Ayudhaya (ธรรมรักษ์ อิศรางกูร ณ อยุธยา) said that he has talked with investors, adding that most of tehm expressed more confidence in investing in Thailand. As for concerns on barter trade system, he said that it is the government’s principle, adding that the goods exchanged do not need to be only chickens. He said that the matter is up to the committee. He said, however, that the investors have not expressed disagreements with the barter trade system, as most of them have a middleman company to trade goods among themselves. He said that if some countries do not wish to use barter trade, but Thailand wants goods from that country, a special cabinet resolution will be needed.

Permanent Secretary of the Defense Ministry, General Sirichai Tanyasiri (สิริชัย ธัญญสิริ) said that foreign investors have been told to submit proposals to the Defense Ministry within March 13-17. He said then the sub-committees of each armed forces will consider the technicalities and take the matter back to the Executive Committee of the Defense Ministry. He said that all the matter will be concluded and proposed to the policy committee headed by the premier on April 28. However, he said that the lowest prices will not be the main factor in consideration, saying that benefits for the army, especially technologies will be prioritized.

Source: Thai National News Bureau Public Relations Department - 27 January 2006

[Jai Dee]

STEEL INDUSTRY BELIEVED TO EXPAND DUE TO SUPPORT FROM GOVERNMENT MEGAPROJECTS

The Office of Industrial Economics expects the steel industry to expand due to support from the government's mega-projects.

Industrial Economics Office Director Anrachaka Sibunrueng Brimble (อรรชกา สีบุญเรือง บริมเบิล) said the 2006 steel industry in Thailand would expand from last year. Steel used in construction would expand in the direction of the mega-projects while other types of steel would expand in correlation with industries in the country.

However, Mrs. Anrachaka warned related parties to beware of external factors, especially the Chinese steel situation where excess production is currently the case. This may result in market dumping of Chinese steel in Thailand, and thus, responsible units must take close care of the matter.

Source: Thai National News Bureau Public Relations Department - 27 January 2006

[PeaceBlondie]

But, won't it take these foreign investors, with their accountants and financial experts, about five milliseconds to see that almost nothing about Thai government is transparent? Isn't the only thing that's transparent, Emperor Thaksin's clothes?

It's all smoke and mirrors, and foreign investors willl soon see that. The only way they can put up with all the buffalo manure is to reap enormous net profits, after paying enormous bribes.

[cclub75]

It's all smoke and mirrors, and foreign investors willl soon see that.

Done already !

Have you seen the blow to Mister T. during their "garden-party" yesterday ? You should read the BKK Post.

Ambassadors and businessemen were... well "sans voix" (speachless) in front of such stupidity.

Ok let's imagine a chief of gvt, working on a megalo plan of investment of 40 billions USD.

Exterior, day light.

-"Okay guys, we want 600 km of train with 10 lines. Okay khrap ?"

-"Hum. What are the lines, where do you want to create the stations, how many trains you want, how many stations"

-"Don't be a smartass : I can only yell you the COLORS for each line we want. It should be enough. And i forgot to tell you : everything must be completed in 5 years"

-"Hum... And who will pay ?"

-"You start to be arrogant. Mai ru. Frozen chicken, rice, cash, flowers, women... we will find a solution. After. Hurry up because I want all the proposals done by april. Thank you. And don't forget to turn off the light when you'll leave".

I'm afraid that the whole story is going to put -again- a bad lightening over Thailand.

[Jai Dee]

Briefing leaves investors in the dark

Megaprojects' plan details seen as vague

Prime Minister Thaksin Shinawatra talks to foreign investors during a break in the Thailand Partnership for Development workshop, a forum for interested investors to inquire about the state's 1.8 trillion baht worth of megaprojects.

Many of the nearly 1,300 foreign investors who gathered yesterday at Government House for a briefing on the state's 1.8-trillion-baht megaprojects expressed bewilderment at the lack of clarity of the massive plan.

Lothar Herrmann, president and chief executive officer of Siemens Limited in Thailand, said the government failed to clearly describe its proposals or identify the framework and specifications of the project development.

His colleague, senior vice-president Joern Grasse, added that such lack of clarity would make it hard for potential investors to evaluate investment costs.

For instance, he said, the government provided only minor details on the proposed 10 new mass transit rail routes without specifying the number of stations and trains for each.

Jean-Pierre Gollot, vice-president of Alstom Transport Asia-Pacific, expressed concern about the difficulty of gauging the government's expectations as investors were given only broad guidelines about the projects.

A Danish executive of a communication equipment company wondered whether all the projects, particularly those involving defence, have the government's full support in terms of funding. He said barter trade is impractical.

Investors at the workshop yesterday represented leading companies from 29 nations, mostly from Japan, followed by Singapore, Europe and the United States.

Prime Minister Thaksin Shinawatra yesterday briefed them about the government-supported megaprojects covering mass rail transit systems, water management systems, information networks, defence modernisation, agriculture, science and technology, culture and public health under the so-called Thailand Modernisation framework.

The government pledged to offer them flexibility and transparency with some regulations relaxed in the bidding contests.

The government set a broad guideline promising to give them freedom to design their proposals so they would be able to provide Thailand with the best technology and implementation methods.

Mr Thaksin said the process would enable the government to choose the best international expertise with the best offers.

''Generally, for large projects processed under tight state regulations, the opportunity is quite slim for us [the government] to get good things. This time we offer opportunities for those who know their industries well to come up with their proposals for us to choose,'' he said.

The government has set April 28 as the deadline for interested parties to put forward their technical proposals. About one to two months later, they will then be invited to tender financial proposals.

Screening is expected to be completed by September with the first project to be embarked on by the end of this year.

To ensure transparency, ministry-level committees would screen the tenders before submitting them to the policy committee chaired by Mr Thaksin and the cabinet would have the final say.

The government has promised to conduct all of the screening process publicly, such as through live television and radio broadcasts.

Mass transit projects alone attracted more than 400 interested developers and also drew the most critical comments.

An executive from a French consulting firm said Thailand's current mass transit system was ''confusing'' and the government's vague terms and guidelines did not help.

Denis de Baecque, chairman of the consulting service DB Impact, called on the government to sort out the problem of too many operators in the system.

''Whoever is entering the bid, they have to talk with at least three existing operators for the skytrain and the subway, and more players like the State Railway of Thailand for the airport link and even the former operator like Hopewell for the use of their huge poles,'' he said.

''It will not work to bring in new ideas as invited by the government under this complicated system.''

He suggested that the government look to Hong Kong or Singapore for models of an efficient mass transit system.

Prommin Lertsuridej, the prime minister's secretary-general, said evaluation of proposals would take into account all aspects, such as technical expertise, financing, investment return and the repayment period.

Finance Minister Thanong Bidaya said for the financing proposals the ministry would take into account not only financial return but also economic return and net present value.

Source: Bangkok Post - Friday January 27, 2006

[PeaceBlondie]

Mr. T. S., PM: Okay, you guys, we're going to spend a lot of YOUR money, so pony up to the bar with billions of euros and trillions of yen, kojaimai?

Japanese corporate spokesperson: "Mr. Thaksin, we need details! We need facts! Show us the legislation, prove it's actually followed, tell us how many million yen in bribes, and how much do you want to reimburse your sister for her other business failures, sir?"

Danish megabillionaire: "Meester Toxin, ve don't understand. Vere is de skyvay to be builded?"

South African investor: "Ve tink ve can inwest a trillion baht if you can tell us, TODAY, vat ze Hel.l you're talking about!"

[Jai Dee]

MR.PONGSAK SAYS THE INFORMATION ON THE PROJECT OF BTS ROUTES PROVIDED TO THE INVESTORS ARE DETAIL- ORIENTED

Transport Minister PONGSAK RAKTAPONGPAISAL (พงษ์ศักดิ์ รักตพงศ์ไพศาล) spoke about the investors’ demand from the Transport Ministry to provide further details on the construction of the Bangkok Mass Transit System Company's. 10 new routes. He said that the ministry has provided full details of the project in the CD-ROM where the investors will be able to view the details of the map, routes, the studies conducted and the estimated amount of passengers in certain routes. Mr. PONGSAK said the investors are impressed with the details and some of them have already used the information center of the Transport Ministry.

He has encouraged those who have not viewed the details to utilise the CD-ROM since all the necessary information are provided there.

Source: Thai National News Bureau Public Relations Department - 27 January 2006

[jjp]

Does anybody have the electric train projects link?

I have searched the forum for it but cant seem find it.

I want to know the proposed new routes they plan to build.

Thanks for your time

[ratcatcher]

Does anybody have the electric train projects link?

I have searched the forum for it but cant seem find it.

I want to know the proposed new routes they plan to build.

Thanks for your time

The only electric train project that Thaksin and his circus could build without corruption or outside help comes in a box under the Christmas tree.

Someone has been drawing pretty colored lines on a map of Bangkok and saying "Let's build a trainset".

[sriracha john]

UPDATE

DELAYED MEGA-PROJECTS

Firms start to look elsewhere

Contractors and suppliers of materials are changing focus to keep ball rolling

The delay in Bt1.8 trillion worth of investment in mega-projects has forced a number of construction contractors and materials producers to revise their business plans and scramble for alternative projects to compensate for a possible shortfall in forecast earnings.

Some companies said they were now putting more focus on overseas markets.

Ch Karnchang Plc plans to bid for contracts to construct hydro dams in Laos, a source said.

"The delay in the mega-projects has reduced the number of projects on the market," the source said. Contractors who have yet to sign contracts for mega-projects will be hurt by the delay, he added.

A number of the government's mega-projects - particularly the Bt555-billion mass-transit expansion - are unlikely to start this year as a result of the House dissolution and the subsequent political fallout.

The Transport Ministry has said that the mass-transit development will be delayed by at least one month. Other projects are not expected to start in the third quarter this year as planned.

Woraphant Chontong, chief finance officer of Sino-Thai Engineering and Construction Plc, said the delay would hurt those contractors expecting to get transport contracts.

Sino-Thai has already signed Bt26 billion worth of contracts so it should not be severely affected, Woraphant said, adding that contracts worth a combined Bt9 billion had yet to be signed.

The signed contracts should generate income over the next two and a half years and by then more projects should be open for bidding, he said.

Sino-Thai will shift its focus government offices, roads and power plants, rather than wait for transit projects, he added.

Thitikorn Supboonrod, general manager for operations of LPN Plate Mill Plc, said hot-rolled steel producers would not see much impact from the delayed investment because steel is only a minor component in the mega-projects. The company is planning to increase exports.

"Despite the political tension, in January to February the company's orders did not slow down because most of our clients had already signed contracts. In the next phase, however, the company has to find new markets overseas to offset the expected lost income from the slowdown of mega-projects," Thitikorn said.

Uncertainty will affect business decisions more than the delay in the mega-projects, he said.

"The government should make a clear time line so that business operators can draft their business plans. They are not afraid of the delay, but they want to know exactly when [the projects will be launched]."

PreBuilt Plc CEO Chaiyarat Thampeera said the delay would prevent a labour shortage.

"Last year, we were quite concerned that the government's mega-projects would draw labour from the private market. The delay will help solve the labour shortage," he said.

DBS Vickers Ballas Securities said in a report that political tension would have a short-term impact on construction companies.

However, the impact will be huge on investors who have bet on short-term gains on companies expected to reap windfalls from the mega-projects, the report said.

Political tension could cloud the mega-projects, but the brokerage said it still believed the government would push forward with the infrastructure investment because it is central to economic growth over the next four to five years.

It suggested that investors buy shares in construction companies that will see revenues from the current backlog over the next two years, even in the absence of mega-project investment. It recommended buying Sino-Thai, Ch Karnchang and Power Line Engineering as long as their share prices are under Bt14.82, Bt15 and Bt14.55, respectively.

Far-East Securities Co Ltd, however, does not recommend buying shares in construction companies, citing a report that mass-transit development is likely to be delayed from the middle of the year.

It said the government had to put its focus on political uncertainty and that the appointment of a new transport minister could lead to more time spent studying the projects. As a result, construction companies hoping for an income boost from transit projects may have to wait, it said.

SCB Securities also underweighted the construction sector, saying political jitters could persuade potential home-buyers to delay their decisions - as well as leading to a further postponement of the mega-projects.

However, it exempted three firms from its gloomy forecast - Italian-Thai Development Plc, Land & Houses Plc and Quality Houses Plc.

The Nation

[h90]

right and not right.....

in one company I worked before, the great managers had just 2 year contracts and if the contract is close to end you may need a hugh order. If it get paid later or not is in this moment secondar. First you must bring your skin in the next 2 year periode, than you can deal with that.

Some may act like him.....

But, won't it take these foreign investors, with their accountants and financial experts, about five milliseconds to see that almost nothing about Thai government is transparent? Isn't the only thing that's transparent, Emperor Thaksin's clothes?

It's all smoke and mirrors, and foreign investors willl soon see that. The only way they can put up with all the buffalo manure is to reap enormous net profits, after paying enormous bribes.

[englishoak]

Thailand ............ the Foreign Investment hub of Asia

[penzman]

Aren't they just trying to save face here by blaming it on the political situation instead of the lack of interest from foreign investors who really could see how vague this whole thing still was when presented to the public...?

I'm curious to know how many offers would have turned in by April 28th..

[opothai]

toxins reply to this would be somehting like

' i'm alright jack'

or something similar i'm sure.

[sriracha john]

The government invited Thai and foreign investors for a briefing on mega projects entitled “Thailand Partnership for Development” at the Government House yesterday.

Meanwhile, Defense Minister General Thammarak Issarangkul na Ayudhaya (ธรรมรักษ์ อิศรางกูร ณ อยุธยา) said that he has talked with investors, adding that most of tehm expressed more confidence in investing in Thailand. As for concerns on barter trade system, he said that it is the government’s principle, adding that the goods exchanged do not need to be only chickens. He said that the matter is up to the committee. He said, however, that the investors have not expressed disagreements with the barter trade system, as most of them have a middleman company to trade goods among themselves. He said that if some countries do not wish to use barter trade, but Thailand wants goods from that country, a special cabinet resolution will be needed.

Source: Thai National News Bureau Public Relations Department - 27 January 2006

UPDATE... the end of yet another quirky Thaksin-ism

Thai Cabinet Scraps Thaksin's Chickens-for-Jets Barter Plan

Thailand's cabinet today scrapped an international barter trade system initiated by ousted Prime Minister Thaksin Shinawatra that included plans to trade frozen chickens for fighter jets and rice for trains.

Cabinet canceled the plan, which obliged state agencies, including the military, to offer agricultural products to purchase state equipment, at the request of the defense ministry, Yongyuth Mayalarp, the government's spokesman, told a news conference in Bangkok today.

"The ministry said the rules lead to difficulties in buying military equipment,'' Yongyuth said. "It's not convenient as many companies don't want to accept agricultural products as payment.''

Thaksin last year proposed bartering agricultural goods for foreign products as a way to save on foreign exchange and ease trade deficits. On Dec. 14, he outlined plans to offer farm products including rice in exchange for "all or part'' of the technology and equipment needed to build mass transit lines.

On Dec. 20, Thaksin said his government was in talks with Russia and Sweden to buy warplanes, with negotiations hinging on whether payment can be made with chicken meat and other farm products.

- Bloomberg, Dec. 12, 2006

[pete_r]

Yeah, and some of the parties involved might be happy to use real money again too. It makes the 10% transaction tax easier to collect.