Thai Govt mega projects risk delay due to political deadlock

[webfact]

Govt mega projects risk delay due to political deadlock

BANGKOK, 14 December 2013 (NNT) - The private sector has evaluated estimated impacts of the political situation on the government’s mega investment projects and foresees a lower GDP growth rate in 2014.

Asia Plus Securities President Kongkiat Opaswongkarn said the political standoff which resulted in delayed budget disbursement and implementation of the mega projects, would also delay investment in the private sector. With such a prospect aggravated by capital outflows due to the global economic recovery, the Thai economy next year might expand only by 3-4%, the executive said.

As for the global economy, Mr Kongkiat said it had a tendency to grow well following the recovering US economy and better EU economy. These factors would help move the overall global economy upwards despite a slowdown in China.


-- NNT 2013-12-14

[jaidam]

All that scheming, lying, perception management and manipulation for what? For nothing as it turns out. So saddening to see Dear Leaders dreams turn to dust. I don't even have any grandchildren to be grateful for their financial rescue from the potential 50 year, 6 trillion debt chasm.

Never mind, I'm sure He will have some other epic schemes in the pipeline....

[plachon]

What Mr Kongkiat doesn't seem to get is that the government were doing back-of-an-envelope feasibility studies for these mega-projects and then move them right through to implementation without any due diligence or full studies in between, as one might expect in a country with a reasonably developed economy. The textbook case of jumping the gun (and all the other normal policy hurdles) was the 350 billion baht water resources management projects, which were given to contractors like K-Water, without procedural steps like EIAs, SIAs, etc, which not surprisingly worried the opposition, civil society and even more far-sighted members of the bureaucracy who could see it was a smorgasboard of cronyism, graft opportunities and socio-economic-environmental disaster in the making, all for the sake of the vanity (not to mention future fighting funds) of one convicted criminal in the Middle East. So as they say, one shouldn't count your chickens before they've hatched, which applies to fanciful mega-projects. Rather than hurting the Thai economy, the avoidance of massive debt round the shoulders of the Thai taxpayers for generations to come, should be seen as a temporary bonus on the national balance sheet.

[EricBerg]

Think I've got it. The guy's from Mars. As are a number of his buddies. Martians must have a whole different perspective of seeing and feeling things.

[jaltsc]

"...the political standoff which resulted in delayed budget disbursement and implementation of the mega projects, would also delay investment in the private sector."

No savvy business is willing to invest in a train whose tracks are heading over a cliff.

[Bender]

of course its delayed, the opposition want the whole cake.

Suthep want his part of the pie. You imagine 2 trillion baht, how many luxury car, mia noi,villa in phuket you can buy!

[Siripon]

Thank god these ill thought out, hugely extravagant projects have been stalled. Plodprasop will be jumping up and down in anger.

Suthep, we owe you a lot.

[Ricardo]

How did the government ever expect to borrow 2.2-trillion over 50-years, for the various infrastructure dreams, if they can't even shift 75-billion's-worth of bonds for short-term finance of the rice-scheme ?

[Joe Mamma]

Pull the evil plug now!!!!

[Robby nz]

So the protests are getting the blame for everything, no mention that :

Flood scheme, the special decree which allows the government to borrow money for the program expired on Nov 24.

That means that the money that they were supposed to borrow from 3 Thai banks they can no longer access.

The 2.2 trillion is still before the NAAC and the court.

They have no other ideas as to how to stimulate the economy, it was reported elsewhere that the PM has ordered all departments to come up with ideas, bit late now.

[Ulic]

What Mr Kongkiat doesn't seem to get is that the government were doing back-of-an-envelope feasibility studies for these mega-projects and then move them right through to implementation without any due diligence or full studies in between, as one might expect in a country with a reasonably developed economy. The textbook case of jumping the gun (and all the other normal policy hurdles) was the 350 billion baht water resources management projects, which were given to contractors like K-Water, without procedural steps like EIAs, SIAs, etc, which not surprisingly worried the opposition, civil society and even more far-sighted members of the bureaucracy who could see it was a smorgasboard of cronyism, graft opportunities and socio-economic-environmental disaster in the making, all for the sake of the vanity (not to mention future fighting funds) of one convicted criminal in the Middle East. So as they say, one shouldn't count your chickens before they've hatched, which applies to fanciful mega-projects. Rather than hurting the Thai economy, the avoidance of massive debt round the shoulders of the Thai taxpayers for generations to come, should be seen as a temporary bonus on the national balance sheet.

I agree with you for the most part. However I am very cynical on the " which not surprisingly worried the opposition, civil society and even more

farsighted members of the bureaucracy who could see it was a smörgåsbord of cronyism, graft, etc..." I view it the same with a few added words

..... that they were not going to be able to get there cut of the pie. Let the politician who has not received their cut of bribes, graft and corruption

cast the first disparaging word on another politician. I do not believe either party or leader can claim the moral/ethical high ground here. Suthep

is no angel and is equally corrupt as Thaksin. Just not as effective at lining his pockets. The Thai people deserve better. The King has set an

excellent example of service to country unfortunately no politician so far has taken up the mantle.

Edited December 14, 2013 by Ulic

[kerrysum]

Thank god these ill thought out, hugely extravagant projects have been stalled. Plodprasop will be jumping up and down in anger.

Suthep, we owe you a lot.

RULE #1 GETYOUR DUCKS IN A ROW ............

Mega projects ain't gonna do nothing, for the Thai people..... Especially the ones that live up North in the country.... SOS empty promises, from politicians.... Thai's pay, with no gain..... Just a thought sorry, but Thailand needs to change, not follow the ill deeds of the United

States...... Just what I think.........