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[January 28, 2006]

Govenment mega-projects to boost Thailand's economic growth:PM

(FnWeb.com Via Thomson Dialog NewsEdge)fnWEB - Bangkok - January 27, 2006 - Government-supported mega projects will help boost Thailand's economic growth and the country will also benefit from transfer of expertise and advanced technology, Prime Minister Thaksin Shinawatra said.


Speaking to journalists after chairing a forum at the Government House in which nearly 1,300 foriegn business persons were briefed on details of the government mega-projects, the prime minister acknowledged that the Thai economy would basically benefit from more employment generated by the mega-projects.

A number of jobs would be created and several economic activities would be generated once the mega-projects are implemented, while more capital would flow into the kingdom from countries where foreign firms winning the mega-projects bidding are based, he noted.

As well, Thailand would have a good opportunity to not only select best options offered by the foreign investors which most suit national development plans, but also benefit from transfer of expertise and advanced technology from the investors, the premier told journalists before flying to the country's northern city of Chiang Mai to chair a meeting of tambon (sub-district) administrative bodies from across the country.

The Thai leaders reiterated that all steps in the bidding process of the mega-projects would be transparent with live broadcast on local media channels, while people would be allowed to independently monitor and share their views on the projects when they are implemented through websites launched by agencies concerned and several public platforms, which would help prevent any corrupt practices.

Mr. Thaksin, apparently upbeat by overwhelming response from the foreign business persons in attending the forum titled "Thailand: Partnership in Development", said that several investors expressed their interest in extended electric train projects.

Responding to concerns over a surge in public debts caused by immense state investment in the mega-projects, the premier promised that the government would strictly follow fiscal and financial disciplines, as well as limit the public debts to a certain proportion of the country's gross domestic product (GDP).

Following Thursday's forum, the various ministries concerned will set up "data room" facilities at ministry offices to provide information relating to these projects for the private sector so that interested companies can prepare the bid and proposal for submission on April 28.

The prime minister said, however, that the Thai government would consider and allow some delays of proposed tenders who join the bidding process later than others.

The Thai government is also open to ideas and suggestions on terms and conditions in the bidding process, as well as payment terms.

The government-supported mega projects, worth around Bt1.7 trillion, include mass rail transit projects, highway extensions, water management systems and deep sea ports development, with those on the planned extension of Bangkok's three subway routes, the blue route--from Hua Lamphong to Bang Kae and Bang Sue to Ta Pa, the red route--from Rangsit to Mahachai--and the light red route--from Talingchan to the Suvarnabhumi Airport, becoming the most attractive projects for the participating business persons, according to government officials.

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