Junta Approves 100 Billion Fund to Build Rails, Roads

snoop1130 · December 15, 2015

Junta Approves 100 Billion Fund to Build Rails, Roads

By Sasiwan Mokkhasen

Staff Reporter

BANGKOK -- Billions of baht will be spent on roads and rail in a bid to boost the countrys weak economy, and to pay for it all the junta cabinet today approved the creation of an infrastructure fund worth 100 billion baht that will be open for public investment.

The military government has given a green light to setting up the so-called Thailand Future Fund, which will pay for transportation mega-projects involving tollways, railways and rapid transit through 2022, according to the top finance official.

The investment of the government project used to come from a loan, said Finance Minister Apisak Tantivorawong. This fund would reduce the dependence on loans and ease the burden on government debt.

The fund will be used to help pay for 1.7 trillion baht of already approved projects. Those include nine high-speed railway lines, five rapid transit routes in Bangkok, and further expansion of Suvarnabhumi Airport and deep-water port at Laem Chabang. It would also go toward new highways linking the nation, such as one to better connect Isaan to the gulf coast and the port.

The fund, expected to open to both domestic and international investors by the first quarter, will receive an initial injection of 10 billion baht by from a government mutual fund. It will be traded on the SET.

Full Story: http://www.khaosodenglish.com/detail.php?newsid=1450175823

-- Khaosod English 2015-12-15

Emster23 · December 15, 2015

"infrastructure fund worth 100 billion baht that will be open for public investment."

I'll pass on this investment. What will they do if everyone else passes also?

Thian · December 15, 2015

Great picture! Nice plane, train, skytrain and a very very old citybus....when will the new buses from China finally arrive?

rkidlad · December 15, 2015

If Thailand is to have elections soon, why not wait until the newly appointed government comes in to decide how the money is spent?

Scrap that.

Pib · December 15, 2015

Recommend they first get 100 billion of actual investments/real money into that new/currently empty 100 billion investment box before they run out and start building anything. Otherwise it's just another unpaid bill they will need to borrow money for which increases the national debt. Or worst, not even coming close to being able to invest another 100 billion in infrastructure projects. It could turn out to be just a dream...another govt program that don't pan-out. But hopefully it will work out....time will tell.

Thunder26 · December 15, 2015

And if some of that money goes to repairing of the existing roads I hope that they won't be spent on fixing the already good roads but on the really damaged roads and sois.

I've seen many times when there were spending time and money on the resurfacing of really good roads.

djjamie · December 15, 2015

With elections so far away Prayut has no choice, but to dedicate these funds to constructive areas that will benefit Thailand.

According to Prayut is is better to invest in this than the submarines anyway.

Best thing about this is it not "off budget" meaning at least more transparency with the money than the previous govt's projects.

sjaak327 · December 15, 2015

He has no choice ? what about not interfering into the running of the country. We would have had a functioning government with the mandate from the people ages ago. And they couldn't have done a worse job then the Junta clowns.

tbthailand · December 15, 2015

wow, the generals are being awfully generous with other people's money, wonder why???

For example, the business sector has reported that “commissions” for government projects has risen to 30 or 50 per cent of the total project value.

http://www.prachatai.com/english/node/5643

Guess that "what comes around, goes around"...

NCC1701A · December 15, 2015

with a 100 billion baht you could put in 100,000 more u-turns all over the country.

welcome those of you that have survived to Thailand 2022, with brand new poorly designed roads!

coulson · December 15, 2015

Edit......just saw the new forum guidelines......great job everyone. I love Thailand

Edited December 15, 2015 by coulson

coulson · December 15, 2015

Only thing that's transparent is there is no viable plan, only a series of good intentions.

Edited December 15, 2015 by coulson

TheCruncher · December 15, 2015

With elections so far away Prayut has no choice,

And who's choice is it that elections are so far away? Nothing that stops him to issue elections right away, and in fact they should have been a few months ago.

djjamie · December 15, 2015

Not talking about "interfering in the running of he country" my dear friend. I am talking about dedicating funds to constructive areas that will benefit Thailand.

djjamie · December 15, 2015

Not talking about a viable plan or good intentions my dear friend. I am talking about dedicating funds to constructive areas that will benefit Thailand.

sjaak327 · December 15, 2015

I was of course referring to your remark that he has no choice. He certainly had and currently still has. Remember he and his NCPO buddies are the law. Election, no problem two months from now, easy peasy.

As to this fund benefiting Thailand, considering the people approving the budget, highly unlikely.

Edited December 15, 2015 by sjaak327

djjamie · December 15, 2015

Not talking about "who's choice it is" my dear friend. I am talking about dedicating funds to constructive ares that will benefit Thailand.

Thanks for the re[ply though and have great morning.

coulson · December 15, 2015

My dear friend. I wish you could have read the response i wrote before i read the new rules.....

Work with me a little.

1. There are no funds, yet...

2. The subs were actually part of the plan, until August.

3. Yes....the plan appears to be to invest in every area that requires the attention, which is admirable. (Affordable housing, peaking household debt, economical deflation, education, corruption, infrastructure, security, environmental etc...) but without actual strategy or planning, it is as good as throwing the money away.

All of these schemes are simply not feasible to implement, at the same time, with no model or guideline other than a fictional road map.

I start to pity the government that has to implement such grand inceptions that came from one man alone.

Edited December 15, 2015 by coulson

aussiesteve63 · December 15, 2015

Of this 100 billion baht if achieved will actually be spent on infrastructure and not lining the pockets of corrupt officials

webfact · December 15, 2015

THAILAND FUTURE FUND
Green light for Bt100-bn Thailand Future Fund
Erich Parpart
The Nation

BANGKOK: -- The Cabinet yesterday approved the launch of the country’s first infrastructure fund, dubbed the Thailand Future Fund, with Bt100 billion in initial capital to help ease the government’s financial burden from the expected investment on infrastructure next year.

"If we rely solely on the government budget to fund the infrastructure needs, then you can believe that only a few projects can be done.

"The government wants these infrastructure projects to happen, as they will greatly improve the country's competitiveness," Finance Minister Apisak Tantivorawong said.

The Bt2.72-trillion fiscal 2016 budget is projected to run a Bt390-billion deficit, as government revenue is projected at Bt2.33 trillion. The investment budget was set at Bt543.63 billion. "The idea is to design a fund to raise capital from the private sector, which has long-term funding such as from the insurance group and retirement funds.

"But we are not blocking out the opportunity for the general public to invest in the fund," he said.

The Transport Ministry estimated last month that about Bt130 billion-Bt140 billion of the Bt1.80 trillion for its 2015-20 investment plan would enter the economic system next year.

The Finance Ministry will inject Bt10 billion into the fund.

Part of the capital will be allocated from the Vayupak Fund to provide income for the fund, as some of the projects that will be included in the infrastructure fund are greenfield projects requiring three to five years to start generating revenue.

The Thailand Future Fund will be given a minimum return on investment target, but the ministry needs more time to discuss a suitable rate.

The minimum return for the Vayupak Fund was set at 3 per cent.

Peerapong Jirasevijinda, managing director and chief investment officer for fund management at BBL Asset Management, told The Nation last month that about 5-9 per cent is required to attract foreign investors, as there are similar funds in other countries in the Asean region.

Pimonwan Mahujchariyawong, deputy managing director of Kasikorn Research Centre, said the infrastructure fund will be able to attract investors during this period of low global interest rates and high volatility within risky assets, as the transport projects are expected to yield a high return in the long run.

"The budget of Bt100 billion should be enough for the capital needed next year, given the delay and the gradual progress of the projects," she said.

Source: http://www.nationmultimedia.com/business/Green-light-for-Bt100-bn-Thailand-Future-Fund-30275001.html

-- The Nation 2015-12-16

coulson · December 15, 2015

Outsourcing public infrastructure results in unlimited tolls and increased cost for public transit.

Not jumping the gun, but I'm going to guess the first plan to be spearheaded will be a Chinese consortium, to produce a rail network.

pinkpanther99 · December 16, 2015

Well that is sure gonna be a nice pay day for someone. I wont hold my breath on the new roads, rail and state of the art transportation infrastructute.

But if someone from The Cabinet is reading this, would they mind ensuring that just a small amount of that 100 billion Baht goes to sorting out the Grand Canyon sized pot hole at the end of the my soi.

If it gets any bigger I am going to get the Mrs to start organizing guided tours.

Thian · December 16, 2015

Then you should buy a house in a moobaan, they have private roads.

ExpatOilWorker · December 16, 2015

They might come out, have a look and then fine you for hoarding water in your "little pit" and blame you for the local water shortage. It will probably cost you, say around 100 billion baht.

Srikcir · December 16, 2015

It's not "off budget." The Finance Ministry will inject Bt10 billion into the fund.

Creation of a government fund usually requires Legislative Branch approval and oversight, otherwise the Executive Branch can withhold accountability and transparency. Obviously, since the NCPO controls all gpovernment checks and balances, the NLA has no recourse for independent action.

If the fund fails to be fully funded from public subscription, the government will have to either make up the difference or cut some of the projects. Again, since the NCPO controls the system of checks and balances, it would be simple for the Finance Minister to unilaterally fund the remaining portions of the fund out of tax revenues or borrowing rather than the Prayut government losing political creditability (aka "face") over cutting or scaling back projects.

This is a great arrangement as the military funds itself separately from Thai taxpayers while requiring taxpayers to pay for its project agendas.

By the way, purchase of submarines is not off the "table," just delayed. Meanwhile the miliatry has been making major purchases, and building monuments instead of shifting funds to the Government General Program for investment purposes.

Jeremy50 · December 16, 2015

I sometimes think that it is because the 2k potholed section of road would be a lot more work for the road building team to repair than the 2k of road with a good surface. The company has a certain quota of k's that it has to repair, so by repairing the surfaces that can be done quickly, they make more money, save on materials etc. I've seen sections of road in terrible condition just left, while good stretches are 'repaired' yearly.

As we know, there no rhyme or reason to anything that happens here.

They need to send a team to study road building in France, a country of similar size to Thailand, and it has in my opinion, the most beautiful road surfaces in the world.

Micbozy · December 16, 2015

What ever they do, just don't sell Thailand to the Chinese please!

kinmaew · December 16, 2015

Hey its just me but I think I will keep ALL my money in property in my home country, thanks for the offer though, really....

flyingdoc · December 16, 2015

The idea is good in principle !

jaywalker · December 16, 2015

I think you might have mis-read it (or maybe I did).

Looks like it will be what's akin to a bond measure in the US where folks stick money in and hopefully get a rate of return on it back from the gov't, so right now he is dedicating funds that do not yet exist.

He'll probably dedicate them anyhow & hope to raise the money down the road by selling bonds.

As it will have to be at least a 6 year (likely a 10 year) bond, and who knows who will be in power in 6 or 10 years to theoretically repay the bond holders, I'd call it a junk bond at best and steer clear.

I never checked, but I'll take a wild guess and say that buying government bonds (loaning money to the gov't) is at least one activity where foreigners are welcome to participate, even on a tourist visa.

Edited December 16, 2015 by jaywalker

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