Mar 28, 2014
By Matt Rusling
Thailand’s high-speed rail project — worth 780 billion baht — has been put on hold amid the country’s political turmoil, but other public spending projects continue uninterrupted, and Borderless has provided an update.
The high speed rail project aims to connect the country’s four regions in a nation that remains among Asia’s least urbanized, with the long term goal of linking Singapore to China’s Yunnan province.
While analysts said the project would spur long- term economic growth and development and give rural residents better access to opportunities in major cities, the government and opposition have been at odds over how to pay for it.
As such, the ministry of transport is now exploring four alternative means of finance, Thailand’s embassy in Washington D.C. told Borderless.
— Mid year budgetary allocation for fiscal year 2014
— Budgetary allocation for fiscal year 2015
— Domestic or foreign loans
— Public private partnership scheme
“Since the current caretaker government cannot approve any new projects, we must wait until the fully elected parliament and government assume their duties. They will then draft and approve new fiscal bills (for fiscal years 2014 and 2015) which will provide a new opportunity for the financing of these infrastructure projects. It is expected a new government can assume their duty in July this year,” the embassy told Borderless.
Still, several projects will progress as planned, drawing funds from the normal budgetary process as well as exploring the public private partnership scheme. Here is a list of key projects, according to the embassy:
— Bangkok and suburbs mass transit system (13 lines)– 472 billion baht
— Double track railway lines (13 routes) — 368 billion baht
— Extensions of expressways and public motorways (3 routes)– 91 billion baht
— Expansions of existing public motorways (1,864 KM) – 80.6 billion baht
— Upgrades of deep-sea ports (3 ports) – 17.1 billion baht
— Upgrades of Suvarnabhumi international airport- 13.6 billion baht
— Upgrades of customs offices (41 offices) – 12.5 billion baht
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