Mega projects : mega need and still mega problems

What I wrote in my article “Mega projects : mega financing problems” (31/08) and various other about GDP seem under the reality…

The last episode of this saga came out today : “In light of lower export growth, the government must take charge of investment to boost the economy. I think the next government also needs to follow this line while having to maintain some populist policies to take care of the huge number of the poor,” he said.” (Nation)

Who said that ? The Finance Minister Chalongphob.

Basically, no money, no honey… The japanese don’t want anymore to open their wallets. And/or have other things in their mind (resignation of Japan’s Prime Minister…).

So Bangkok has only one solution left : use their own money and invest in the famous Purple Line rail route. Or rather : would like to.
Because, it’s not going to be as easy as they say… And certainly, it will be much more expensive than the japanese loans…

The uncertainties have also resulted in the delay in the loan approval by Japan Bank for International Cooperation (JBIC).

He noted that if JBIC cannot approve the loan for such investment in time, the Finance Ministry will tap domestic funds as state and private banks are ready to lend due to ample liquidity in the market.

“I understand that there could be delays in JBIC’s loan approval as Japan’s prime minister has resigned and JBIC is also under reorganisation. Still, we want to tap a loan from JBIC,” he said.

Anyway, Chalongphob has no margin, and only… 3 month left as a minister.

This is why he said “the next government also needs…”.

So I guess we can say it’s official : the hot potato of the Mega Projects… has been given. To someone else. After. Once again. 😉

TNA (official agency) has also an article, with the Deputy Transport Minister saying that : “the Finance Ministry failed to give a reason why JBIC remain unable to lend to Thailand.

The saga shall continue.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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