Economist wants politicians to keep off Thai rail project

September 17, 2013 Leave a comment

Economist wants politicians to keep off Thai rail project

English.news.cn   2013-09-17

By Surasak Tumcharoen

BANGKOK, Sept. 17 (Xinhua) — Thai politicians should keep off Thailand’s ambitious rail project so that it will be built in a transparent and graft-free manner and devoid of any shenanigans that are usually associated with politics, according to a noted economist here. Prof. Teerana Bhongmakapat, economics lecturer of Chulalongkorn University, said Monday the Thai government, headed by Prime Minister Yingluck Shinawatra, must see to it that the rail project, legislation for its implementation now deliberated in parliament, will be free of irregularities throughout its seven-year implementation that will last until 2020.The rail project is part of the country’s infrastructure development plan for which an estimated 73 billion U.S. dollars will be acquired in loans. The rail project alone would eat up more than 80 percent of the total loan money.

“Given a gigantic amount of funding at stake, some people would think that graft and embezzlement might occur during the implementation of the project. Hence, the government should make all activities related to the project as transparent as possible and keep it out of reach of those connected with political parties, ” Teerana said.

He said that every details of the project, particularly during its implementation, must be regularly publicized so that the public would be informed.

The rail project includes the use of high-speed trains that will carry passengers and cargoes to and from all major regions of the country as well as the widening of provincial and regional highways and the construction of new motorways.

High-speed trains will be procured through public biddings from among foreign firms including those of China, Japan, South Korea and France.

The rail project includes the construction of a 382-km route between Bangkok and Phitsanuloak in the northern region of the country with a 6.6 billion U.S. dollars fund, followed by a 250-km route between Bangkok and Nakorn Ratchasima in the northeastern region with a 4.3 billion dollars fund, a 225-km route between Bangkok and Hua Hin in the southern region with a 3.2 billion dollars fund and a 221-km route between Bangkok and Rayong in the eastern region with a 3.4 billion dollars fund.

The Chulalongkorn economist said the government has not yet officially announced returns from investments on the rail project, which is important considering that the 73 billion dollars to fund the project will be entirely borrowed from domestic and foreign sources.

Neither has the government evaluated the demands of the people for a modernized rail system, though they may have access to it, Teerana said.

The government must factor in the earnings from commercial establishments that may open on either side of the railways as well as the importance of the project to the logistics sector, he said.

“In addition to the shuttling of passengers, the government should see to it that the logistics sector will use the railways rather than roads to transport goods. Trains can carry more cargoes than trucks and this would result in more savings for traders,” Teerana said.

According to the economist, more people nationwide will very likely ride in the new trains, especially the high-speed ones, which have a speed of 250 kilometers per hour. The project would also boost Thailand’s entry into the ASEAN Economic Community, scheduled to open in 2015, because it will carry more people traveling within Thailand or to neighboring countries.

Transport Minister Chatchart Sitthipun earlier assured the public that the loan money to finance the project should not be a cause for concern to anyone and that what should instead be taken into account are the immense benefits which the modernized rail systems will bring to the people and country.

Chatchart said that the rail project will be free from corruption because all the stages of its implementation can be easily monitored by the public, including the Democrat Party-led opposition bloc, which has been vehemently opposed to the project, alleging that it was ill-defined and would only be riddled with graft.

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