Thai Cabinet approves Bt2 trillion mega-investment in infrastructure projects

BANGKOK, February 27 (TNA) - The Thai Cabinet has approved the Finance Ministry's plan on borrowing some 2 trillion baht to fund the country's new mega-infrastructure development projects to enhance national competitiveness, reduce inequality, alleviate pollution and distribute prosperity to all Thai regions. Transport Minister Chadchat Sittipunt told journalists on Wednesday that the Finance Ministry sought the Cabinet’s approval for the borrowing to fund the infrastructure projects, 80 of which are railways, over 10 per cent are roads and the rest are water transport projects. Chadchat explained that the new mega-infrastructure projects under his Transport Ministry's supervision are estimated at 4.2 trillion baht, but the 2-trillion-baht borrowing will fund major projects, including double railway tracks, high-speed trains and main roads leading to regions, and the remaining projects will use normal annual budgets over the next 7-8 years, including the construction of minor roads from regional highways to provinces. According to the transport minister, the Finance Ministry's Public Debt Management Office will limit public debts at 50 per cent of Thailand's gross domestic product (GDP). After the new mega-infrastructure projects are completed, the transport minister acknowledged, they will cut people's transport costs from 15 per cent to 13.2 per cent of Thailand's GDP, compared with 13 per cent of the GDP in Malaysia and 9 per cent in Singapore. The minister revealed that there would be an exhibition at the Government Complex from March 7-9, 2013 to publicize the government's new infrastructure projects and the Finance Ministry will then propose a bill for the borrowing to the Cabinet in mid-March and the bill should reach the House of Representatives by late March 2013. (TNA)