Govt Vows Transparency In Bt2-Tn Loans

[Lite Beer]

INFRASTRUCTURE
Govt vows transparency in Bt2-tn loans
The Nation on Sunday March 24, 2013 1:00 am

BANGKOK: -- The government yesterday said projects under the Bt2-trillion loan plan to develop the country's infrastructure will be carried out in a transparent manner, while urging all sectors to check the use of funds and ensure that money is used efficiently and without corruption.

Transport Minister Chadchart Sittipunt said his ministry had consulted with the Finance Ministry about mapping out measures to ensure that projects under the Bt2 trillion infrastructure development plan are carried out with transparency, and about ensuring appropriate bid prices, and that the companies do not make too much profit and deliver quality work.

"The Transport Ministry's concept is to allow public participation in the check system by providing the public with information through websites and to provide information on where the projects are located, started and completed,'' he said.

He said the projects would be carried out through normal bureaucratic procedures, by getting approval from the National Economic and Social Development Board, the Budget Bureau and the Cabinet. Economic impact assessments and health impact assessments must be conducted on all projects as required by law, he said.

In terms of legal obstacles, Chadchart said the government might have used wrong wordings for the Bt2-trillion loan. He said the bill stipulates that the government would be empowered to seek loans. It would have been better if the bill had stipulated that the government is empowered to invest in the country's infrastructure, he said.

He said even though the loan bill is yet to be approved, the government is set to start projects such as the high-speed train on 10 routes and three electric trains on three routes, using dual rail tracks. The minister said the amount of loans the government would seek depends on the progress of project implementation within seven years. It will not seek all Bt2.2 trillion in loans if certain projects are delayed.

He added that the BTS route from Bangkok to Ayutthaya was expected to be completed within four years.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said the government wanted to seek loans to develop infrastructure instead of using the normal budget because it wanted speedy development and to create business confidence among foreign investors. If the government resorts to normal budgets, the projects may face continuity problems.

He said the government would ensure disclosure of information such as mean prices and procurement procedures. The loan bill would be tabled for deliberation by Parliament at the end of this month.

He said the government wanted the bill to be passed as an Act, not a Royal Decree, because all projects would be subjected to checks by concerned state agencies. He said a Royal Decree is used in emergency situations such as to tackle national disasters like the massive flooding in 2011.

He also dismissed criticism that by drafting the bill as an Act, the actual public debt figure would not be revealed. Kittiratt insisted that public debt would be shown in relation to the GDP and the government would ensure that the public debt ceiling would not exceed 50 per cent of the country's GDP.

He said details of debt payments against the Bt2-trillion loans are not included in the bill but would be indicated in Cabinet resolutions.

With the total principal and interest amounting to about Bt5 trillion from the Bt2 trillion loan, Kittiratt said the government planned to pay interest during the first 10 years. In the 11th year, it will start repaying the principal, which will be repaid in 50 years.

-- The Nation 2013-03-24

[whybother]

The government yesterday said projects under the Bt2-trillion loan plan to develop the country's infrastructure will be carried out in a transparent manner

[AleG]

With the total principal and interest amounting to about Bt5 trillion from the Bt2 trillion loan, Kittiratt said the government planned to pay interest during the first 10 years. In the 11th year, it will start repaying the principal, which will be repaid in 50 years.

Then why not call it the 5 trillion Baht infrastructure project instead? Another little white lie?

Great start for transparency.

[Ricardo]

Since it will all be totally transparent, I myself have a question !

Which of the three options for a railway do they intend to build ? Will it be the SRT doubling of its existing tracks, will it be the Chinese medium-speed freight-line to speed their exports through Thailand en-route to Singapore, or will it be the high-speed passenger-railway linking Chiang Mai, Nong Kai, Rayong & the South to the capital ?

And one supplementary question, what is the ROI on the project ? Will it pay-back within the 50-year term of the debt or not ?

[Soupdragon]

30% of 2,000,000,000,000 = 600,000,000,000.

Is that transparent enough ???

P.S. Feel free to check the math, I get confused when dealing with so many zeros. I wonder how the average Thai manages to even imagine such numbers.

Edited March 24, 2013 by Soupdragon

[chainarong]

WhyBother ,Ya pinched me reply What a load of croc Sh!!t.

[Payboy]

He added that the BTS route from Bangkok to Ayutthaya was expected to be completed within four years.

The BTS is going to be extended up to Ayuthaya?

[Pib]

With all the transparency of a master magician. Anyone up for a shell game?

[Lite Beer]

Govt: “THB2.2 trillion loan will not drive public debt to exceed 50% of GDP”

BANGKOK, 24 MARCH 2013 (NNT) – The government has repeatedly affirmed that the planned 2.2 trillion baht loan for infrastructure investment will not drive the Thailand’s public debt level above the agreed ceiling of the GDP.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong, said during the weekly “PM Yingluck Government Meets the People” that the new draft bill to enable the government to borrow as much as 2.2 trillion baht in loans for infrastructure development projects will be implemented under 3 key strategies.

The Cabinet, last Tuesday, approved the draft 2-trillion-baht infrastructure development loan bill.

Mr. Kittiratt stated that the projection implementation has been planned to help equip Thailand with better logistics and transport systems at lower costs, to help connect Thailand with neighboring countries and to facilitate the transportation of goods.

The Deputy PM affirmed that the mega project investment plan will not bring about the rise of the country’s public debt to exceed 50% of the GDP, which is still below the set ceiling of 60%.

Meanwhile, Transport Minister Chadchart Sittipunt stressed that the execution of all projects must be transparent while allowing for public participation and scrutiny.

He added, once approved by the House of Representatives, the project will likely be implemented in 2014.

The government's draft bill to acquire 2.2 trillion baht in loans is scheduled to be tabled to the Lower House for deliberation during March 25-26.

-- NNT 2013-03-24

[Pimay1]

With all the transparency of a master magician. Anyone up for a shell game?

The way allocated funds disappear the government must be full of Houdinis.

[ZhouZhou]

Meanwhile, Transport Minister Chadchart Sittipunt stressed that the execution of all projects must be transparent while allowing for public participation and scrutiny.

[ChrisY1]

They couldn't guarantee transparency in a glass house!

[xkmasada]

The gold standard in government stimulus spending is the Thai Khem Khaeng project of the Democrats....

a project that resulted in a corruption scandal, the departure of the Minister in charge, and the re-appointment of that former Minister as a personal advisor of Abhisit.

[renaissanc]

Transparency in this case would be like foxes standing at the entrance of a huge hen house, saying, "We promise that we won't eat a single fox!"

[Mitker]

Even the Customs department has a hotline dedicated to "transparency".

Need to say more?

[chainarong]

Further to the departments risk assessment request, the cost for a HSR between Sydney and Melbourne Australia, by a private consortium , as determined at Dec 2010 was put at 5 million to 10 million AUD per kilometer , it is not envisaged this cost would be the same in Thailand, allowing for inferior steel in rails , poorly installed electronics, incorrect concrete batching in sleepers , major design failure in earth works and electrical network, the cost could be justified at half that of Australia ,2.5 million to 5 million per USD kilometer , taking into account everything is done transparently.Regards the rail team

[animatic]

They also vow to let you run an toll booth on the bridge to Brooklyn.

Likely to be as transparent as MUD.

[khunken]

Kittirat:

He also dismissed criticism that by drafting the bill as an Act, the
actual public debt figure would not be revealed. Kittiratt insisted that
public debt would be shown in relation to the GDP and the government
would ensure that the public debt ceiling would not exceed 50 per cent
of the country's GDP.


He said details of debt payments against the Bt2-trillion loans are not
included in the bill but would be indicated in Cabinet resolutions.

Almost impossible to translate this into anything understandable.

My interpretation is that, like the FIDF B1.14Bn, the debt will be swept under another carpet so that it doesn't move government debt to over 50% or even 60%. We don't know repayment details because we haven't worked out plans or priorities for the various projects.

In other words, Like the 'urgent' flood abatement budget, we want approval for the money first & then we'll sit down with our preferred partners & work out the details later.

I'm willing to donate my avatar as a logo for the project.

[rubl]

Transport Minister Chadchart Sittipunt added, once approved by the House of Representatives, the project will likely be implemented in 2014.

He probably means the project can "start" in earnest once approved by parliament.

[waza]

another 2 trillion baht to add to the trough. what will come out of the other end will be so lacking in substance it will be transparent

[rubl]

He also dismissed criticism that by drafting the bill as an Act, the actual public debt figure would not be revealed. Kittiratt insisted that public debt would be shown in relation to the GDP and the government would ensure that the public debt ceiling would not exceed 50 per cent of the country's GDP. He said details of debt payments against the Bt2-trillion loans are not included in the bill but would be indicated in Cabinet resolutions. With the total principal and interest amounting to about Bt5 trillion from the Bt2 trillion loan, Kittiratt said the government planned to pay interest during the first 10 years. In the 11th year, it will start repaying the principal, which will be repaid in 50 years.

Just consolidate the figures you may find in various seemingly unrelated and sometimes obscure reporting available to government officials , MP's and all who know what to ask for. In other words our accounting methods are such that even simple minded people will be able to see that all is transparent and in good order. Trust me, all repaid in sixty years from now.

[fareastguy]

When this administration vows to do something I know it's lying !!

[lungmi]

Hello Thailand, Greece is wating you!

[siampolee]

What was indeed a somewhat alarming statement was the announcement that the funds for this mammoth spending project would be raised within the domestic financial system.

.

The impression given is that no monies are going to be sought from abroad.

Just two little questions, where and how are the local domestic banks going to find this sum of money in house ?

Of course they can't raise these funds internally, the funds will certainly in part and truth be known the larger part be raised via assorted financial instruments in the international loan and bond and bills market.

Another great ploy to convince the electorate that everything in the financial garden is indeed coming up roses, trouble is that roses have thorns

[waza]

What was indeed a somewhat alarming statement was the announcement that the funds for this mammoth spending project would be raised within the domestic financial system.

.

The impression given is that no monies are going to be sought from abroad.

Just two little questions, where and how are the local domestic banks going to find this sum of money in house ?

Of course they can't raise these funds internally, the funds will certainly in part and truth be known the larger part be raised via assorted financial instruments in the international loan and bond and bills market.

Another great ploy to convince the electorate that everything in the financial garden is indeed coming up roses, trouble is that roses have thorns

and they grow in manure

[NeverSure]

Transparent. Yep, I can see right through them.

I wonder what Thailand's real debt is, if someone audited them? I wonder how much it will be after a few more years they have promised to run the rice program scheme plan farce? Where did the borrowed flood money go?

This will be the world's finest high speed rail system hi-so pocket lining scheme.

[paymaster]

Cake tins with clear plastic lids?

[Locationthailand]

Yet they contradict themselves saying they would not divulge anything and simply pass it through without further ado. By this article, it is already assumed by PTP the loan will be cleared by the parliament! This is such BS I can't even fathom how it is being approved.

[fareastguy]

I think I need to get my ears checked out at the hospital as I seem to have a severe case of "tinnitus" coming on..

Every time I hear the Yingluk administration say they promise transparency I can hear "alarm bells ringing"

[HunkeyDorey]

The government yesterday said projects under the Bt2-trillion loan plan to develop the country's infrastructure will be carried out in a transparent manner

And so say all of us. IMHO the beginning of the end for Thai Economy. 'notice that I am probably not alone in my opinion as "Market sheds 50 points on record volume of Bt101billion; Kittiratt says drop nothing to panic about"