Thai Cabinet approves Dual-track deal with China

[webfact]

CABINET
Dual-track deal with China okayed
Erich Parpart
The Nation


General Prayut Chan-o-cha

BANGKOK: -- The Cabinet yesterday approved a draft memorandum of under-standing (MoU) with the Chinese government to construct double-track railroads between major logistics centres in Thailand.

"The MoU and the destinations [as proposed by the Transport Ministry] have been approved by the Cabinet and the project will now be up for deliberation by the NLA. But the part about the money and how much both countries will invest has not been discussed yet," Prime Minister General Prayut Chan-o-cha said. The Cabinet also approved the International Headquarters (IHQ) and International Trading Centre (ITC) promotion scheme along with supporting tax and non-tax incentive packages.

Government Spokesman Yongyuth Mayalarp said the standard-gauge route as proposed was from Nong Khai, the northernmost border province in the Northeast, through Nakhon Ratchasima's provincial capital and Saraburi's Kaeng Khoi district to Map Ta Phut port in Rayong province.

That is going to be 734 kilometres long and a spur from Kaeng Khoi to Bangkok would be 133km long.

The Transport Ministry has said the project covered by the MoU could be worth about Bt400 billion. It would come under the Bt3-trillion infrastructure budget for 2015-22 that has been approved by the military's National Council for Peace and Order.

A committee will be set up to oversee the investment, research, design and track-system agreements between the two countries. It will be co-chaired by the Thai transport minister and the chairman of China's National Development and Reform Commission.

Yongyuth also said China was interested in buying another lot of rice and rubber from Thailand. The Cabinet approved an MoU with the Chinese government to buy agricultural products from the Kingdom. Agencies would provide more details later, while the Commerce Ministry would be in charge of the transaction.

The IHQ and ITC scheme was the brainchild of Deputy Prime Minister MR Pridiyathorn Devakula. The Cabinet assigned agencies to make the idea tangible, since the Regional Operating Headquarters (ROH) promotion scheme was limited and there were many regulatory barriers that made the country lose out on investment opportunities.

Foreign investors and companies wanting to set up an IHQ or ITC in Thailand would be awarded more tax and non-tax privileges than for an ROH. The requirements for acquiring the incentives would be less strict.

For example, the criteria for an IHQ to qualify for the tax benefits are paid-up capital of at least Bt10 million, responsibility for an associated company or branches situated in at least one other country, and annual expenses associated with IHQ activities in Thailand of at least Bt15 million.

Upon approval by the Board of Investment, the IHQ or ITC will enjoy reductions in the corporate-income-tax rate on net profit derived from the offshore branches and associated companies and the personal-income-tax rate on salaries for expatriates working with the IHQ or ITC.

There would be many more non-tax breaks, such as easier visa requirements. More details will be forthcoming from the Revenue Department.

Source: http://www.nationmultimedia.com/business/Dual-track-deal-with-China-okayed-30248545.html


-- The Nation 2014-11-26

[rametindallas]

Who need competitive bids? /sarcasm

How do you force China into compliance if they get 'difficult'?

This will not end well for Thailand.

[chainarong]

At the moment this is just talk, a MOU, nothing much to crow about , there is a long way to go , to do this properly will take at least 3 years in design , there's no budget so how you manage resources without finance , like is it gold plated track or one made from coke cans , one can only guess, keeping options open for a preferred tenderer would have been a more professional approach with the ground works and system designed, costed and then placed out for tender , this off the shelf approach has too many loopholes, blind alley's China can and will take advantage of.

[NongKhaiKid]

At the moment this is just talk, a MOU, nothing much to crow about , there is a long way to go , to do this properly will take at least 3 years in design , there's no budget so how you manage resources without finance , like is it gold plated track or one made from coke cans , one can only guess, keeping options open for a preferred tenderer would have been a more professional approach with the ground works and system designed, costed and then placed out for tender , this off the shelf approach has too many loopholes, blind alley's China can and will take advantage of.

Spot On and we can be sure that China will get the most favourable terms possible as they feed on Thailand's urgency to show things are happening.

By the time LoS wakens up it will be too late.

[sawati]

And you never had been colonized??? Wait for China...

[yellowboat]

Who need competitive bids? /sarcasm

How do you force China into compliance if they get 'difficult'?

This will not end well for Thailand.

It is a wonderful opportunity, but it does sound that the powers that be in Thailand are not doing the right amount of due diligence. Sadly, so many in the country are swaded my something as common as money. Also, a non elected government making these decisions is really bad form. It does have the smell of trouble

[Chris Lawrence]

Great idea? But, you would think they would have nutted the terms out? As the Generals Govt. really has to show some performance, China are in the box seat to take advantage of Thailand.

[Loles]

And the second Chinese invasion just started ...

The first invasion was when the local Chinese had arrived.

[Sydebolle]

Thailand, the 17th province of PR China - just wait and see. Northern Laos today only Chinese is spoken, only Chinese-plated cars (Porsche Cayenne and better) roam the roads from Phongsaly to Oudomxay.
In a generation from now things will look definitely bleaker, worse and "less sanook" - trust me!

[bikerbri]

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

[SunsetT]

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

........And dont forget the small matter of tunnelling through the mountains of Laos to connect Nong Khai to China!

[Muirton]

Wow, A Thai draft Memorandum of Understanding. Wow, that means Thailand will start on the RR tomorrow at dawn. Or something.

[Pib]

Who need competitive bids? /sarcasm

How do you force China into compliance if they get 'difficult'?

This will not end well for Thailand.

It is a wonderful opportunity, but it does sound that the powers that be in Thailand are not doing the right amount of due diligence. Sadly, so many in the country are swaded my something as common as money. Also, a non elected government making these decisions is really bad form. It does have the smell of trouble

I'm sure the appropriate due diligence is being accomplished right now by setting up new, secret bank accounts, hiding places for cash being arranged, etc. And the recent arrest of the police generals who got caught in their corruption scheme should lead to improved methods of corruption, hiding money, etc. Practice makes perfect.

[doggie888888]

Thailand, the 17th province of PR China - just wait and see. Northern Laos today only Chinese is spoken, only Chinese-plated cars (Porsche Cayenne and better) roam the roads from Phongsaly to Oudomxay.

In a generation from now things will look definitely bleaker, worse and "less sanook" - trust me!

Only Chinese is spoken? I bet you they speak lao, some local Dialect, probably a smattering of Chinese and a border dialect thereof.

Do you even know how close china is? If you do, why are you so surprised to see Chinese plated cars in North laos?

Anyway, even if they spoke Chinese, so what? Laos shares a border with China and the has been a history of cross border trade, exchanges and marriage. Lots of people speak Chinese in s.e. Asia. Get over it.

Note to other Europe/Anglo centric people out there: Laos does not share a border with Europe or usa... so perhaps it would be more disturbing if English or French was forced onto them. As for the sanook factor, i believe things were not exactly sanook for the Laotians under the French.

Edited November 26, 2014 by doggie888888

[whybother]

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

........And dont forget the small matter of tunnelling through the mountains of Laos to connect Nong Khai to China!

I don't think Thailand will be doing that.

[SunsetT]

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

........And dont forget the small matter of tunnelling through the mountains of Laos to connect Nong Khai to China!

I don't think Thailand will be doing that.

Sure........But how long will that take?

[whybother]

Sure........But how long will that take?

I reckon the Chinese have probably got it all planned already.

[Muirton]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Who need competitive bids? /sarcasm

How do you force China into compliance if they get 'difficult'?

This will not end well for Thailand.

It is a wonderful opportunity, but it does sound that the powers that be in Thailand are not doing the right amount of due diligence. Sadly, so many in the country are swaded my something as common as money. Also, a non elected government making these decisions is really bad form. It does have the smell of trouble

I'm sure the appropriate due diligence is being accomplished right now by setting up new, secret bank accounts, hiding places for cash being arranged, etc. And the recent arrest of the police generals who got caught in their corruption scheme should lead to improved methods of corruption, hiding money, etc. Practice makes perfect.

Clever, funny, true. Thailand has a highly developed diligentsia.

[tbthailand]

As others have noted, no competitive bidding, nada.

And these guys are the ones to 'clean up' Thai corruption?

Yeah, right. Let's see where this goes.

[whybother]

As others have noted, no competitive bidding, nada.

And these guys are the ones to 'clean up' Thai corruption?

Yeah, right. Let's see where this goes.

Has there been anything to bid for yet?

[BSJ]

At the moment this is just talk, a MOU, nothing much to crow about , there is a long way to go , to do this properly will take at least 3 years in design , there's no budget so how you manage resources without finance , like is it gold plated track or one made from coke cans , one can only guess, keeping options open for a preferred tenderer would have been a more professional approach with the ground works and system designed, costed and then placed out for tender , this off the shelf approach has too many loopholes, blind alley's China can and will take advantage of.

"like is it gold plated track or one made from coke cans "

[Muirton]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

........And dont forget the small matter of tunnelling through the mountains of Laos to connect Nong Khai to China!

The eternal bonds of friendship between the vanguard of the proletariat of China and the freedom-loving people of Siam will smite those mountains.

[SunsetT]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Who is going to run this railway once its built? Who is going to pay for the rolling stock? Who is going to use it? If this is anything like the airport venture,it could be at least 10 years before they lay the first sleeper. Thailand's record in running railways is not good.

........And dont forget the small matter of tunnelling through the mountains of Laos to connect Nong Khai to China!

The eternal bonds of friendship between the vanguard of the proletariat of China and the freedom-loving people of Siam will smite those mountains.

Methinks 99% of the smiting will be done by the proletariat of China with the sanook-loving people of Siam observing from restaurants along the border around a plate of somtam, bucket of ice and alcoholic beverage of their choice...... !