Thailand still needs mega infrastructure development projects

[webfact]

Thailand still needs mega infrastructure development projects
By Digital Content



BANGKOK, Mar 17 - Thailand's next government should invest in infrastructure development despite the demise of the previous administration's Bt2.2 trillion budget for mega projects, a former central bank chief said today.

Pridiyathorn Devakula, former finance minister and Bank of Thailand governor, allayed investors' concerns on the cancellation of the Bt2.2 trillion loan bill for infrastructure and transport mega projects and expressed confidence that the new government would pursue the mammoth scheme under normal budgeting procedures.

The Constitutional Court on March 12 ruled unanimously that the government's Bt2.2 trillion loan bill is unconstitutional, reasoning that the whole drafting process and its essence is unlawful.

Mr Pridiyathorn called on the next government to prioritise significant projects such as the Pak Bara seaport, ten electric train routes, dual track train system and road expansion.

These projects will cost Bt1.22 trillion over six years and the government is entitled to create public debt at the maximum 20 per cent of annual budget, with the possibility of borrowing another 10 per cent of the budget if necessary, he said.

Such a budget allocation will be within the financial disciplinary framework setting the ceiling of public debt at 60 per cent of gross domestic product, he added.

Mr Pradiyathorn said unnecessary projects which should be suspended, for instance, the high-speed train between Bangkok and Chiang Mai which has been served by low-cost airlines.

Thailand needs high-powered locomotives, not high-speed train, to lower transportation cost, he said, easing the private sector's fear of Thailand's weakened competitiveness.

He said he believed the next government will speed up investments in essential transport systems.

Thailand urgently needs a fully-authorised government to run the country within the first six months of the year, or the country's GDP will be badly affected, he said. (MCOT online news)


-- TNA 2014-03-17

[Robby nz]

If the PT Govt when they set the budget had included provision for the start of double tracking rail and road improvement then these things would already be underway, instead they decided there was no need to get urgent work underway as they would soon have their hands on the 2.2 trillion.

Now because of that the work has to wait for a new Govt and a new budget.

Everything they have done wrong is now coming back to bite the country hard.

[Thai at Heart]

If the PT Govt when they set the budget had included provision for the start of double tracking rail and road improvement then these things would already be underway, instead they decided there was no need to get urgent work underway as they would soon have their hands on the 2.2 trillion.

Now because of that the work has to wait for a new Govt and a new budget.

Everything they have done wrong is now coming back to bite the country hard.

Indeed. They really really messed this by being quite so obvously sneaky. I|t will take far longer to implement.

[lungmi]

Thailand needs high-powered locomotives, not high-speed train, to lower transportation cost, he said, easing the private sector's fear of Thailand's weakened competitiveness.

He said he believed the next government will speed up investments in essential transport systems.

--------------------------------------------------------------------------------------------------------------------------------------

Essential transport systems is the key word.

Regional express trains between important cities. Passengers up, merchandises down floor. Secure double tracks. Max. speed 100-120 km/h.

[khwaibah]

If the PT Govt when they set the budget had included provision for the start of double tracking rail and road improvement then these things would already be underway, instead they decided there was no need to get urgent work underway as they would soon have their hands on the 2.2 trillion.

Now because of that the work has to wait for a new Govt and a new budget.

Everything they have done wrong is now coming back to bite the country hard.

and bite PT in the arse.

[chainarong]

Some of these people live on another planet or have an agenda to push, it is all very well having infrastructure projects , I will refrain using the word mega, however placing the country into a financial mess is not good management , consultation and monitoring by the IMF before any course of action, would be the sensible way to manage any borrowings and will in-still some confidence in Thailand, as a transparent country to do business with.

[djjamie]

Thailand's next government should invest in infrastructure development

To right they should. The country is in desperate need of infrastructure upgrades and if it wasn't for the PTP's non transparent, unconstitutional bill they could have well been on the way of achieving something great for the future of Thailand. Of all there schemes and bills they could have got one right. Though just like Suropong crippling Thailand's progress on the international stage the PTP have done it here as well.

This is similar to the water management scheme. If one person dies in floods this year the deaths will be on the PTP's hands due to there inability to follow democratic processes. The tally of deaths due to their incompetence is rising in equal measure to the contempt the silenced majority have of the PTP.

[Bkungbank]

A project calculation added 25-30% excess fees which unnessary for our young generation to bare the cost as 15-20 years pay back time and we will be death already but the extra costing involved will be paid by our children and grand children which really unfair to them .

[Crushdepth]

Infrastructure yes, mega projects no. And definitely not under the table.

Sent from somewhere in the Pacific

[rubl]

Double tracking important, all seem to agree. So what happened with

2013-07-20

"Chachoengsao-Klong 19-Kaeng Khoi route with construction to begin this year.

According to Soithip Trisuddh, deputy Transport Ministry permanent secretary, the SRT is considering drafts of documents relating to bidding for the 106-kilometre dual-tracking project. The SRT is certain construction can begin this year after several years of delay.

The dual tracking will be a single route in accordance with SRT's priority operations plan, which is not under the Bt2-trillion Borrowing Bill, as the Cabinet had approved this project earlier. Hence the SRT can proceed immediately without having to wait for that bill to be passed by Parliament. Construction can begin right after the bidding process is completed."

[Robby nz]

Double tracking important, all seem to agree. So what happened with

2013-07-20

"Chachoengsao-Klong 19-Kaeng Khoi route with construction to begin this year.

According to Soithip Trisuddh, deputy Transport Ministry permanent secretary, the SRT is considering drafts of documents relating to bidding for the 106-kilometre dual-tracking project. The SRT is certain construction can begin this year after several years of delay.

The dual tracking will be a single route in accordance with SRT's priority operations plan, which is not under the Bt2-trillion Borrowing Bill, as the Cabinet had approved this project earlier. Hence the SRT can proceed immediately without having to wait for that bill to be passed by Parliament. Construction can begin right after the bidding process is completed."

Suspect rubi that the work was in fact tied to the 2.2 trillion even though it was (supposed to have been) passed by cabinet, possibly passed but no budget allocated.

[bigbamboo]

Agree Thailand does need mega infrastructure projects. This is important if Thailand doesn't want to be a second tier member of ASEAN.

Even more importantly it needs a government with integrity to administer them so all the public not just the officials get the benefit.

[GeorgeO]

Some of these people live on another planet or have an agenda to push, it is all very well having infrastructure projects , I will refrain using the word mega, however placing the country into a financial mess is not good management , consultation and monitoring by the IMF before any course of action, would be the sensible way to manage any borrowings and will in-still some confidence in Thailand, as a transparent country to do business with.

I agree, but I think that what the PTP has done will prove to have held this country back by a decade, at least.

I personally believe that it is only when the true distress that this nation is currently in becomes known that will there be any chance of cleaning up their mess and then moving forward.

Borrowing for "mega" infrastructure projects will have to take a back seat until any new government has cleared the financial burden that these clowns have placed upon Thailand, which, I estimate to be between one and one-and-a-half trillion baht...(approximately 40.5 billion US dollars!!)

[GeorgeO]

Double tracking important, all seem to agree. So what happened with

2013-07-20

"Chachoengsao-Klong 19-Kaeng Khoi route with construction to begin this year.

According to Soithip Trisuddh, deputy Transport Ministry permanent secretary, the SRT is considering drafts of documents relating to bidding for the 106-kilometre dual-tracking project. The SRT is certain construction can begin this year after several years of delay.

The dual tracking will be a single route in accordance with SRT's priority operations plan, which is not under the Bt2-trillion Borrowing Bill, as the Cabinet had approved this project earlier. Hence the SRT can proceed immediately without having to wait for that bill to be passed by Parliament. Construction can begin right after the bidding process is completed."

Suspect rubi that the work was in fact tied to the 2.2 trillion even though it was (supposed to have been) passed by cabinet, possibly passed but no budget allocated.

...or perhaps budget allocated, but seems to have disappeared...!!

[zydeco]

Infrastructure yes, mega projects no. And definitely not under the table.

Sent from somewhere in the Pacific

Thailand needs to walk before it tries to run, much less sprint.

[GeorgeO]

Thailand's next government should invest in infrastructure development

To right they should. The country is in desperate need of infrastructure upgrades and if it wasn't for the PTP's non transparent, unconstitutional bill they could have well been on the way of achieving something great for the future of Thailand. Of all there schemes and bills they could have got one right. Though just like Suropong crippling Thailand's progress on the international stage the PTP have done it here as well.

This is similar to the water management scheme. If one person dies in floods this year the deaths will be on the PTP's hands due to there inability to follow democratic processes. The tally of deaths due to their incompetence is rising in equal measure to the contempt the silenced majority have of the PTP.

...but of course the usual suspects on here would have us believe that the PTP still hold sway with a considerable "majority"...! I am personally looking forward to the day when they get their rude awakening, and that day will come.

[selftaopath]

They also "need" road repair to last more than a few days. It's utterly amazing how a new road (here in Isaan) can look decades old in such a short time - usually a/b 1 month max. Now why would that be???

[ChrisY1]

Certainly no doubt at all that Thailand needs it's transport system upgraded.....and major infrastructure projects do usually need loans to finance them.

Unfortunately, as we all know, the current caretaker government went down the wrong path to get the finance....

International consultants must be employed to design, plan and allocate budgets to achieve maximum value. Thais have proven over and again they are not up to speed in this area......with 60 odd miilion people travelling the country in suicide busses.....trains that fall over all the time and maniac drivers on roads.....there must be an efficient transport system.

The Transport ministry has an enormous annual budget and have done nothing over decades.....disgraceful to say the least!

[EyesWideOpen]

Instead of high speed trains whisking around Chinese tourists, they should fix up

existing roads, and enforce safety regulations. The bus death toll here is

absolutely shocking....

[Lupatria]

Funny that nobody at the central bank or the government comes up with the idea of a couple of 'mega maintenance projects'.

Oh I forgot, it's not as lucrative for the mega rich, mega greedy and mega corrupt.

[DaveHKT]

As an aside I think the headline should read "Thailand needs infrastructure projects"

[marstons]

I bet Myanmar has high speed trains before Thailand along with Vietnam. Thailand where time stood still.

[marstons]

I bet Myanmar has high speed trains before Thailand along with Vietnam. Thailand where time stood still.

[marko kok prong]

The roads should be the main priority,i am going to Phitsanoluk tomorrow for my marriage visa renewal,the last time i had to drive with the offside wheels on the side strip of the road so bad and big where the potholes,a disgrace.

[belg]

thailand has a shortage of quality in anything, any level

but makes it so difficult for farang with skills to work here

and still they want or need big infrastructure ? how they gonna pay these people or they expect to import more burmese and others to do the low wage jobs and reek in the huge profits ?

[SOTIRIOS]

...first Thailand needs to somehow recoup all the money that was already 'taken' on that pretext.......

[lostmebike]

Thank god the court did rule against that loan.

PTP are fat enough as it is!