Sino-Thai rail project must go ahead despite legal issues, PM tells Xi

[webfact]

Sino-Thai rail project must go ahead despite legal issues, PM tells Xi

WASAMON AUDJARINT
THE NATION

 

 

BANGKOK: -- PRIME MINISTER Prayut Chan-o-cha has told Chinese president Xi Jinping that the Sino-Thai high-speed train project must proceed despite “legal issues” hampering it.

 

Prayut's remarks followed a series of disagreements between Thailand and China over the project - from loan interest rates to the use of construction materials.

The project comprises two routes - Bangkok to Nakhon Ratchasima and Rayong to Nong Khai.

The first 3.5 kilometres of the 271.5km Bangkok-Nakhon Ratchasima route was initially planned to start this month but was suspended due to financial issues, according to the Transport Ministry.

Prayut had ordered the ministry to find a solution to the impasse during the government's term as it was designed to be part of a land-route connectivity project with Laos. 

The premier did not spell out the legal issues obstructing the deal. 

His order was followed by Thailand and China signing an agreement during their 13th meeting on railway cooperation in Beijing. The agreement, signed last month, states that Thailand will fund all the construction and retain ownership rights while China will design the project. 

The project's estimated cost is Bt179 billion and it would span 837km.

Xi also reaffirmed that China was ready to continue with the project.

During their side meeting at the G20 Summit in the historic Chinese city of Hangzhou, the two leaders agreed to pursue bilateral strategic cooperation in multiple areas to cope with global challenges and achieve mutual development goals. Prayut thanked China for welcoming Thailand, in the former's capacity as the G77 chair at the G20 summit. 

He also said he appreciated Xi's vision to facilitate cooperation between leading industrialised economies and emerging economies.

Thanks Beijing for boosting tourism 

He thanked Beijing for boosting Thailand's tourism industry, with almost 8 million Chinese visiting the country last year - making it easily the Kingdom's No 1 source market.

On last day of the summit, Prayut provided two vision statements stressing Thailand's role as a bridge-builder between the G20 and G77 economies that could help accelerate the United Nation's 2030 Agenda for Sustainable Development. He also urged G20 members, which comprise industrialised and emerging economies, to focus on agricultural sectors as the main income source for developing countries.

Agriculture also contributes to global food security, Prayut said, suggesting that the G20 could help farmers better integrate into the global economy.

He also praised the G20's efforts in bridging gaps in infrastructure development, citing the China-initiated One Belt, One Road scheme and Asian Infrastructure Investment Bank initiatives as examples. 

The premier said transportation connectivity, including rail, should be promoted further.

Prayut last evening left China and arrived in Vientiane, where he will attend the 28th-29th Asean Summit from today until Thursday.

 

Source: http://www.nationmultimedia.com/politics/Sino-Thai-rail-project-must-go-ahead-despite-legal-30294595.html

 

-- © Copyright The Nation 2016-09-06

[kannot]

whats  more important  to the Thai nation.WATER  supply to ALL its residents year round or a  HIGH SPEED train going to a few  places.............dumb!

[Emster23]

Seems part of "Thainess" not to have finances sorted before beginning a project. Look at all the unfinished condo projects dotting the landscape.

[Thailand]

Surely section 44 can overcome any legal problems,has so far!

[BlindMagician]

Thailand pay all and retain rights. China does the design. Bit odd.

 

Kim thanks Xi for 8million tourists, for spitting everywhere, screaming, ruining wherever they go, and spending near zero.

[williamgeorgeallen]

are foreigners really allowed to design projects like this? what does this really matter to china if thailand cant even manage to build the first 3.5km?

[ratcatcher]

1.) He also said he appreciated Xi's vision to facilitate cooperation between leading industrialised economies and emerging economies.
2.)Thanks Beijing for boosting tourism 
3.)He thanked Beijing for boosting Thailand's tourism industry,  "

 

Thank you three times...............

[kannot]

12 minutes ago, ratcatcher said:

1.) He also said he appreciated Xi's vision to facilitate cooperation between leading industrialised economies and emerging economies.
2.)Thanks Beijing for boosting tourism 
3.)He thanked Beijing for boosting Thailand's tourism industry,  "

 

Thank you three times...............

ahem!

[canopus1969]

1 hour ago, williamgeorgeallen said:

are foreigners really allowed to design projects like this? what does this really matter to china if thailand cant even manage to build the first 3.5km?

 

The Chinese are not foreigners -  they own the country  

[Ricardo]

The first 3.5 kilometres of the 271.5km Bangkok-Nakhon Ratchasima route was initially planned to start this month but was suspended due to financial issues, according to the Transport Ministry.

 

Hopefully the 'financial issue' was, that one of the men-from-the-Ministry realised, that there is NO point in building 3.5 km of standard-gauge track which does not link-up with anything  ?

 

The PM & the government (and no doubt future governments in their turn) need to keep plodding away on the financing, until the Chinese come up with a proposal, which makes economic-sense for Thailand  ...  based on the potential for running a few medium-speed passenger-trains up to Isaan & on boosting exports (whether manufactures or agricultural) from Thailand to China.

 

If Thai investment is needed, beyond making the necessary land available, then there has to be a net-economic-return to Thailand !

 

If China really still wants this line, then it will eventually get built, but the investment-risk needs to follow the economic-benefits  ...  Thailand can't afford any vanity-projects, and that goes for submarines too IMO.

Edited September 6, 2016 by Ricardo

[mesterm]

6 hours ago, kannot said:

whats  more important  to the Thai nation.WATER  supply to ALL its residents year round or a  HIGH SPEED train going to a few  places.............dumb!

 

Money. That's what's most important.

[catinthehat]

Wasn't it just earlier this year that the Thai government was at odds with the fact that the Chinese wanted to loan money for the project at an unsatisfactory interest rate? Seems like that deal fell through as now the Thai government is quietly footing the entire bill. Though it should leave plenty of room for the usual skimming.

 

Even for what should be an inflated cost to design. And who will perform the design review or at least a peer review of what we in the industry always view as "suspect" from the Chinese. And very much required before the implementation/ construction supervision stage commences.

[elgordo38]

4 minutes ago, catinthehat said:

Wasn't it just earlier this year that the Thai government was at odds with the fact that the Chinese wanted to loan money for the project at an unsatisfactory interest rate? Seems like that deal fell through as now the Thai government is quietly footing the entire bill. Though it should leave plenty of room for the usual skimming.

 

Even for what should be an inflated cost to design. And who will perform the design review or at least a peer review of what we in the industry always view as "suspect" from the Chinese. And very much required before the implementation/ construction supervision stage commences.

The only illegal part I can see is to settle who will skim what where and how.

[klauskunkel]

8 hours ago, webfact said:

a series of disagreements between Thailand and China over the project - from loan interest rates to the use of construction materials.

those two countries are squabbling over construction materials? What is it then? Cheapest, or cheapest?

[trainman34014]

Just bowing to the Master whilst in his presence.  It's a non starter and they both know it.

[DM07]

"Sino-Thai rail project must go ahead despite legal issues..."

...ahm...say what???

[dcnx]

Yeah,  screw the law.  

[silverhawk_usa]

Quote

His order was followed by Thailand and China signing an agreement during their 13th meeting on railway cooperation in Beijing. The agreement, signed last month, states that Thailand will fund all the construction and retain ownership rights while China will design the project. 
 

 It seems like only yesterday I was reading about the illegality of a foreign architect designing the new Bangkok skyscraper. 

[Srikcir]

12 hours ago, webfact said:

Thailand will fund all the construction and retain ownership rights while China will design the project. 

- Chinese officials have pressed for the right to develop commercial property at the stations and along the forthcoming railway track, from Bangkok to the north-eastern city of Nong Khai near Laos.  Thai Transport Minister Arkhom Termpittayapaisith says "no." Arkhon says Thailand is not Laos.

- Arkhom disagrees with the cost of the project

- Prayut disagrees with the loan interest rate that is higher than the Japanese offered.

 

But despite ten failed meetings with the Chinese to resolve all these economic issues, Ankhon seems unconcerned:

"This project belongs to Thai people,"... "Domestically, we have plenty of money."

 

 

 

 

 

[HenryB]

6 hours ago, canopus1969 said:

 

The Chinese are not foreigners -  they own the country  

And the Rothchilds thru the World Banks own China

Thant make as much sense as anything

[natway09]

He is hell bent on getting these chuffa trains ain't he.

Riding them will be too expensive for the masses anyway.

Fix up what SRT has let go to rack & ruin over many years first

[waldroj]

"...The first 3.5km...was suspended due to financial issues..."

Well, identifying where the funding of the other 268km will come from is going to be very interesting indeed!

One can only hope private investment will be sought (not public funds)!

[Srikcir]

2 hours ago, waldroj said:

identifying where the funding of the other 268km will come from

It's not an issue of where the funding comes from but what are the terms with China for funding. An MOU was signed with China in December 2014 between Thailand and China to formally create this project. 

Furthermore, China will take responsibility for the railways design, the technologies to be used, as well as the type of rail, and initial operation of the line for the first three years, then jointly with Thailand fr the following four to seven years. Thailand does not have the technology nor expertise  to do the project entirely from domestic private/government investment.