OTP: Sino-Thai railway project prioritizes on Thailand’s benefits

[webfact]

OTP: Sino-Thai railway project prioritizes on Thailand’s benefits

 

BANGKOK, 28 June 2017 (NNT) - The Office of Transport and Traffic Policy and Planning (OTP) has stressed that the Sino-Thai railway project will prioritize on Thailand’s benefits. 

OTP Director Chaiwat Thongkhamkhun clarified that the Sino-Thai railway project is aimed at creating connectivity between Thailand, Lao People's Democratic Republic and China, which would contribute to economic and tourism benefits in line with the One belt One Road policy of the People's Republic of China. 

There have been a total of 18 meetings with China over the past two years and during a bilateral meeting between the Prime Minister of Thailand and the Prime Minister of China on 23 March 2016, it was settled in principle that Thailand would be the sole investor in the project. The first phase will be from Bangkok to Nakhon Ratchasima. Then, the new rail systems will be expanded from Nakhon Ratchasima to Nong Khai in order to connect with the Lao People's Democratic Republic and to China’s rail project. 

According to the outcome of the bilateral discussion, it was concluded that Thailand would be the sole investor in the project while the Chinese government will continue to cooperate in the development of high-speed trains from Bangkok to Nakhon Ratchasima and from Nakhon Ratchasima to Nong Khai. China will design and control the construction, aid in the transfer of technology and provide training to Thai personnel.

 

-- nnt 2017-06-28

[Srikcir]

18 hours ago, webfact said:

it was concluded that Thailand would be the sole investor in the project

This is either a false, misleading or thoroughly confusing statement.

False:

• In 2010, during the Abhisit government’s tenure, the project was set to be 5% owned by the Thai government and 49% by the Chinese government [a joint venture], as China would benefit more from selling its technology to Thailand. http://www.nationmultimedia.com/news/national/30319177
• During Yingluck's government tenure, the project would be entirely financed by loans with China.
• Thailand is expected to control the project with the State Railway of Thailand having a 30% stake and private Thai firms having another 30% stake. Chinese state enterprises will have a 40% stake in the company [a joint venture]. For its stake in the project the Thai government was expected to finance it with a loan from China.  https://www.thaivisa.com/forum/topic/807898-thailand-expected-to-control-northeast-railway-project/
• Prayut Chan-o-cha clarified that the government has never planned to borrow funds from China as Thailand already has sufficient monetary reserves for the project. https://www.thaivisa.com/forum/topic/988808-pm-no-loan-to-be-sought-from-china-for-high-speed-rail-project/?utm_source=newsletter-20170621-1218&utm_medium=email&utm_campaign=news
• The project will be 100-per-cent funded by the Thai government  http://www.nationmultimedia.com/news/national/30318843

• Ex-Democrat MP Samart Ratpolasit said he doubted Transport Minister Arkhom was speaking the truth when he said China would not co-invest in the high-speed train project, forcing the Thai government to go it alone. The Chinese side agreed to 40% of the investment and 60% by the Thai side. http://englishnews.thaipbs.or.th/ex-democrat-mp-doubts-transport-minister-tells-truth-thai-chinese-train-project/

•  The finance minister Apisik said if China proposes a cheap loan, the government will consider it, so funding is not a problem. http://www.nationmultimedia.com/news/national/30319177

Misleading:

• The Thai side will solely invest in public works – that is the construction of the rail system.   http://englishnews.thaipbs.or.th/ex-democrat-mp-doubts-transport-minister-tells-truth-thai-chinese-train-project/
• Implies the Thai side will fund civil engineering portion (ie., stations, track, grade, crossings, bridges, tunnels) and the Chinese side will invest in non-public works portion (ie., intellectual property, electronic equipment, communications, train engines and cars, maintenance equipment & supplies)?

Confusing: Absolutely.

 

[Srikcir]

6 hours ago, Srikcir said:

This is either a false, misleading or thoroughly confusing statement.

False:

• In 2010, during the Abhisit government’s tenure, the project was set to be 5% owned by the Thai government and 49% by the Chinese government [a joint venture], as China would benefit more from selling its technology to Thailand. http://www.nationmultimedia.com/news/national/30319177
• During Yingluck's government tenure, the project would be entirely financed by loans with China.
• Thailand is expected to control the project with the State Railway of Thailand having a 30% stake and private Thai firms having another 30% stake. Chinese state enterprises will have a 40% stake in the company [a joint venture]. For its stake in the project the Thai government was expected to finance it with a loan from China.  https://www.thaivisa.com/forum/topic/807898-thailand-expected-to-control-northeast-railway-project/
• Prayut Chan-o-cha clarified that the government has never planned to borrow funds from China as Thailand already has sufficient monetary reserves for the project. https://www.thaivisa.com/forum/topic/988808-pm-no-loan-to-be-sought-from-china-for-high-speed-rail-project/?utm_source=newsletter-20170621-1218&utm_medium=email&utm_campaign=news
• The project will be 100-per-cent funded by the Thai government  http://www.nationmultimedia.com/news/national/30318843

• Ex-Democrat MP Samart Ratpolasit said he doubted Transport Minister Arkhom was speaking the truth when he said China would not co-invest in the high-speed train project, forcing the Thai government to go it alone. The Chinese side agreed to 40% of the investment and 60% by the Thai side. http://englishnews.thaipbs.or.th/ex-democrat-mp-doubts-transport-minister-tells-truth-thai-chinese-train-project/

•  The finance minister Apisik said if China proposes a cheap loan, the government will consider it, so funding is not a problem. http://www.nationmultimedia.com/news/national/30319177

Misleading:

• The Thai side will solely invest in public works – that is the construction of the rail system.   http://englishnews.thaipbs.or.th/ex-democrat-mp-doubts-transport-minister-tells-truth-thai-chinese-train-project/
• Implies the Thai side will fund civil engineering portion (ie., stations, track, grade, crossings, bridges, tunnels) and the Chinese side will invest in non-public works portion (ie., intellectual property, electronic equipment, communications, train engines and cars, maintenance equipment & supplies)?

Confusing: Absolutely.

 

the project was set to be 5% owned by the Thai - typo should be 51% obviously.