Bangkok seeks US$67m loan to build infrastructure, ports and railways
THE Thai cabinet has endorsed a plan to borrow US$67.6 billion to build high-speed rail lines, ports and other transport infrastructure over the next seven years.
Prime Minister Yingluck Shinawatra said the bill approved by ministers would allow the government to borrow the funds in Thailand and overseas without going through the annual government budget process.
She said that would ensure the infrastructure plans were not delayed and would give investors confidence in the projects, reported The Associated Press.
"Funding the projects through the regular annual budget can be problematic because the budget is subject to annual approvals. If there's a change of government or in politics, the schemes could be discontinued," Ms Yingluck said. "By issuing the borrowing bill, private investors can plan their investment to develop infrastructure in the provinces more confidently."
The financing plan needs the approval of parliament, which is controlled by Ms Yingluck's party. However, critics say the plan's would reduce transparency by bypassing the budget process and raise public debt to unacceptably high levels.
But Finance Minister Kittirat Na-Ranong pointed out that the mega projects would not drive the public debt higher than 50 per cent of Thailand's GDP, adding that it would be paid off within 50 years.
The projects include four high-speed rail lines that would connect Bangkok with the northern city of Chiang Mai, the Laotian border, the industrialised eastern seaboard and Malaysia. The trains would travel at 250 kph, or 155 mph.
Plans also call for the construction of 3,000 kilometres of dual-track railway lines that the government said could triple the number of rail services per day from the current 90. It is part of a push to switch the hauling of goods from roads to rail to decrease fuel consumption, logistics costs and delivery times.
According to the Transport Ministry, 86 per cent of goods are transported by road in Thailand.
Four more ports are to be built on the banks of Bangkok's main river and on the Gulf of Thailand and Andaman Sea coasts. The government said the projects would bolster Thailand's economic growth rate by one per cent a year and create 500,000 jobs.
The government also plans to add 13 lines to the mass transit railway network in the capital. The expansion would add 410 kilometres to rail routes across Bangkok and its outskirts.
THE Thai cabinet has endorsed a plan to borrow US$67.6 billion to build high-speed rail lines, ports and other transport infrastructure over the next seven years.
Prime Minister Yingluck Shinawatra said the bill approved by ministers would allow the government to borrow the funds in Thailand and overseas without going through the annual government budget process.
She said that would ensure the infrastructure plans were not delayed and would give investors confidence in the projects, reported The Associated Press.
"Funding the projects through the regular annual budget can be problematic because the budget is subject to annual approvals. If there's a change of government or in politics, the schemes could be discontinued," Ms Yingluck said. "By issuing the borrowing bill, private investors can plan their investment to develop infrastructure in the provinces more confidently."
The financing plan needs the approval of parliament, which is controlled by Ms Yingluck's party. However, critics say the plan's would reduce transparency by bypassing the budget process and raise public debt to unacceptably high levels.
But Finance Minister Kittirat Na-Ranong pointed out that the mega projects would not drive the public debt higher than 50 per cent of Thailand's GDP, adding that it would be paid off within 50 years.
The projects include four high-speed rail lines that would connect Bangkok with the northern city of Chiang Mai, the Laotian border, the industrialised eastern seaboard and Malaysia. The trains would travel at 250 kph, or 155 mph.
Plans also call for the construction of 3,000 kilometres of dual-track railway lines that the government said could triple the number of rail services per day from the current 90. It is part of a push to switch the hauling of goods from roads to rail to decrease fuel consumption, logistics costs and delivery times.
According to the Transport Ministry, 86 per cent of goods are transported by road in Thailand.
Four more ports are to be built on the banks of Bangkok's main river and on the Gulf of Thailand and Andaman Sea coasts. The government said the projects would bolster Thailand's economic growth rate by one per cent a year and create 500,000 jobs.
The government also plans to add 13 lines to the mass transit railway network in the capital. The expansion would add 410 kilometres to rail routes across Bangkok and its outskirts.