Bt2-tn loan bill passage paves way for launch of infrastructure plan

[webfact]

Bt2-tn loan bill passage paves way for launch of infrastructure plan
NONGNAPAS PITHAPATI,
SOMLUCK SRIMALEE
THE NATION



BANGKOK: -- THE GOVERNMENT is prepared to kick off the Bt2 trillion infrastructure investment plan next year, after the borrowing bill unexpectedly won the Senate's approval on Tuesday night, which sparked an outcry from the opposition and some senators.

The Democrats yesterday filed a petition to the Constitutional Court, claiming the law lacked two main parts - the specifications of projects and a tighter financing scrutiny method.

"If a law like this is passed, the country's long fiscal discipline will collapse and this could inevitably lead to a crisis," Democrat MP Korn Chatikavanij said.

Economists believe that the mega investment would be the key engine to drive the economy next year, after economic growth decelerated this year. The private sector also welcomed the investment programme, which will boost Thailand's logistics capacity. Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, supported the investment, but said the government should prioritise the projects to avoid straining the fiscal position. For example, the double-track rail should be invested in first to reach major cities. The projects should be implemented transparently and the government should stress fiscal discipline.

"A further delay will affect spending and GDP," he said.

Transport Minister Chadchart Sittipunt, a key man for the investment scheme, said the scheme would be launched next year. While the Constitutional Court is reviewing this law, the ministry is working on the establishment of the project management office (PMO) to be initially supervised by the Transport Ministry, with help from other state agencies.

Consulting companies will be hired to draw up a project management system.

Preliminary discussions have been made with the Asian Development Bank and the World Bank as well as the Anti-Corruption Organisation of Thailand to help monitor the project.

"We must discuss with all parties to help set up the related systems for the PMO. With clearance from the court, we can immediately set up the PMO," he said.

Some projects could go ahead even if the court rules against the bill. However, the decision would hurt investor confidence in Thailand, he added.

The borrowing bill was passed by the Senate by a 63:13 vote at 3am on Wednesday.

Investment in Thailand's logistics system, especially through the Bt2-trillion infrastructure programme, will strengthen the country's competitiveness in the Asean Economic Community, according to research by King Mongkut's University of Technology Thonburi.

The research, conducted by the university's Graduate School of Management and Innovation, is sponsored by the National Research Council of Thailand and the Thailand Research Fund.

Assoc Prof Thananya Wasusri, who heads the school's AEC logistics research, said yesterday that development of the country's logistics system will support the country's global competitiveness.

Thailand ranks 38th out of 144 countries in the Global Competitiveness Index (GCI) and 29th in the World Competitiveness Scoreboard. If the country upgrades its logistics system to facilitate greater trade and investment, the country's ranking will advance to 37th in the GCI and 28th in the World Competitiveness Scoreboard.

"The logistics system covers not only transportation, but also IT management and such systems as customs and packaging," she said.

When the government plans to invest Bt2 trillion in the country's infrastructure, that will also improve the country's transportation system to serve the logistics system in the AEC, Thananya said.

Thailand has potential to become the logistics hub of the AEC because its infrastructure is better than those of its neighbours such as Cambodia, Vietnam, Laos and Myanmar, she said.

However, Thailand has to develop its logistics management system as Singapore and Malaysia's rankings in the Logistic Performance Index are now higher. Singapore is No 1, while Malaysia is 29th and Thailand 38th.

"The investment in infrastructure, especially the rail system and logistics management, will help boost the country's logistics system so that it can vie with other countries in the AEC," she said.


-- The Nation 2013-11-21

[NongKhaiKid]

It also paves the way for much, much more, let's start with bank accounts.

[Ricardo]

Wonder what the Asian Development Bank and the World Bank have to do with this, since the government previously said it would not need foreign financing, perhaps BAAC is already dangerously over-extended with another government scam scheme ?

One looks forward to perusing the cost/benefit analyses, the environmental-impact assessments and so-on, whenever they are made available to the taxpayer to study.

[thaicbr]

They arrange the loans BEFORE they have a project management system in place.... OK then????

Sent from my phone with the app thingy.

[garyk]

This is so hard to believe. The world is in a slump and Thailand just borrowed 2/tn. Taksin win's at the expense of future generations of Thai's.

The Thai youngsters will be paying off a debt that was handed to them. For the next 50 years!

Amazing Thailand.

[noikrit]

Gotta finance those Red Shirt protests someway !

[robblok]

I would not be so against this project if corruption was kept at bay but if you only look at the rice scam you know the government will never be clear or honest. I also suspect part of this money will be used to finance the rice scam.

Loaning money without a clear plan is stupid and would only be done if the money was needed for other stuff.

The plan is good if they let experts decide on merit what is good. Making dual track for the railway is good, an expensive high speed train is not and is just a way to pay back China for buying rice at higher prices.

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[Thait Spot]

If this gets presented at the palace only to be declared unconstitutional then heads must roll

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[smedly]

This governments track record on finance is dire full of lies and obvious corruption - they can't manage the simple accounts for the rice pledging scheme - how many versions of that are on the go and now they're going to be free to lie about the whereabouts of 2 trillion baht - someone needs to step in and stop this lunacy

[Tatsujin]

Bt2-tn loan bill passage paves way for launch of infrastructure plan Thaksin to recover even more of his "seized" monies and other assorted MP's and business cronies to siphon off even more before getting kicked out of Govt.

[robblok]

This governments track record on finance is dire full of lies and obvious corruption - they can't manage the simple accounts for the rice pledging scheme - how many versions of that are on the go and now they're going to be free to lie about the whereabouts of 2 trillion baht - someone needs to step in and stop this lunacy

Good point, the infrastructure plan is not bad, but letting this corrupt and incompetent government handle it is.

The rice scheme is proof of this.

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[Pib]

Paves the way to a huge, new, wide, deep, 2 trillion baht pig's trough...it will generate an unlimited amount of corruption and scandals over the coming years but hopefully some good will come out of it also. Helps to explain why this country like pork so much.

[Baerboxer]

This governments track record on finance is dire full of lies and obvious corruption - they can't manage the simple accounts for the rice pledging scheme - how many versions of that are on the go and now they're going to be free to lie about the whereabouts of 2 trillion baht - someone needs to step in and stop this lunacy

Good point, the infrastructure plan is not bad, but letting this corrupt and incompetent government handle it is.

The rice scheme is proof of this.

Sent from my iPad using ThaiVisa app

It's a good job that "honest Joe' Kittirat is the Finance Minister. He's on the ball. He's already "proved" Moody's and Word Bank experts wrong about the rice scam scheme. He's tackled the IMF. Clearly he is a master of financial planning, budgetary control and accounting. He knows where every satang has gone!

O.k. - he tells the odd "ethical" white lie, but only when necessary, to stop the people from worrying themselves with too many questions. He denies a recession by inventing his own definition, possibly a new world model, maybe Noblel prize for economics in the pipeline.

Add to that the fact the government is controlled and all policy dictated by a convicted criminal fraudster, and that checks and balance will be bypassed.

Now come on Smed and Rob, what makes you worry about anything? I'm sure the government already have some very good plans for this money

[bigbamboo]

This proposed loan is so wrong on so many levels it is staggering that any government would even consider it unless there was a hidden agenda.

[marcusd]

Aha. Passed by the Senate....BUT WHO is giving them the actual money?.. E Yingluck has been unsuccessful thus far.

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[marcusd]

This is so hard to believe. The world is in a slump and Thailand just borrowed 2/tn. Taksin win's at the expense of future generations of Thai's.

 

The Thai youngsters will be paying off a debt that was handed to them. For the next 50 years!

Amazing Thailand. 

Sent from my RM-892_apac_laos_thailand_219 using Tapatalk

Law to borrow is passed. Actually getting the money from somewhere is the problem. They have not yet secured the funds

[timber]

Are there words for accountability and transparency in Thai

[smedly]

This proposed loan is so wrong on so many levels it is staggering that any government would even consider it unless there was a hidden agenda.

The hidden agenda is so obvious it's hard for normal people to see it, I'll start by saying we are in a country of prolific liars and I'll stop there for the moment

Now the hidden agenda

- no money left to support the rice scheme

- no money left to support the first car scheme

- no money left to support the tablet scheme

- no money left to support the health services (what little there is)

- no money left to keep the trough filled

- no money left to support the red shirts

- no money left.

This government is broke - only lies conceal the truth

I'd love to have a good accounting team in to do the sums for the last 2 years, even then the detail may have been lost or never recorded along with many many billions of missing baht

Mark my words we are about to hear of the biggest scandal in Thai history possibly Asian History, I'm reading between the lines with this for the last 12 months or so - I truly hope I'm wrong, I also believe TS has already got his confiscated funds back and possibly more

we shall see

[smedly]

Aha. Passed by the Senate....BUT WHO is giving them the actual money?.. E Yingluck has been unsuccessful thus far.

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Thailand is about to be owned by China

[noikrit]

Are there words for accountability and transparency in Thai

SURE !! Mai Bpen Rai .. or if your a Reddy Boben Yang Dok ....

Edited November 21, 2013 by noikrit