Financing the mega projects ? Still the mega waiting

Here is the latest episode of the saga “We need the japanese money badly“.

The thai government is looking to get a loan from the JBIC, in order to finance part of the new train lines in Bangkok. This saga started… a long time ago. In a galaxy, far, far away…

And as usual, it’s “okay sure, very soon”. 😉

November 5
Finance Minister Chalongphob Sussangkarn said on Monday after visiting Japan last week that his talks with representatives from Japan Bank for International Corporation (JBIC) on loans to Thailand’s purple line mass transit was positive. However, he said the ministry is waiting for JBIC’s answer on whether it would grant loans to the Kingdom within the next one to two weeks.” (Nation)

October 31
Sommai Phasee, deputy finance minister, said on Thursday that Japan Bank for International Corporation (JBIC) is likely to give loan to Thailand for the purple line of electric train. He said Finance Minister Chalongphob Sussangkarn went to Japan last night to talk with JBIC on the issue. ” (Nation)

September 14
The uncertainties have also resulted in the delay in the loan approval by Japan Bank for International Cooperation (JBIC).
“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
. ”

August 31
Deputy Finance Minister Sommai Phasi is trying to negotiate with the Japan Bank for International Cooperation (JBIC) to reduce interest rate for a light rail project construction loan.
“Right now, the government has to decide how it wants the project to take shape,” he said, “only after that will we be able to complete negotiations with JBIC.”
(Bangkok Post)

May 28
On May 28, Japanese government delegates are expected to negotiate for the Japan Bank for International Co-operation (JBIC) to finance three mass transit routes: the Red, Purple and the Blue lines.
The source said Japan was upset because Japanese firms did not win the bids to sell trains, especially to supply BMCL, which received loans from JBIC. Germany-based Siemens won the BMCL’s train bid.
” (BangkokPost)

October 31 2006
Deputy Transport Minister Sansern Wongcha-um said yesterday the government would push ahead with the construction of new rail lines, regardless of whether the Japan Bank for International Cooperation (JBIC) approves a loan for the project.

October 9 2006 (After the military coup)
The new finance minister is expected to sign loan agreements with the Japan Bank for International Cooperation (JBIC) to finance three mass-transit routes in Bangkok.
Pannee said Pridiyathorn wanted to sign the loan contracts with the JBIC as soon as possible as he believed it would restore investor confidence. (
Nation)

August 11 2006 (Thaksin’s government)
The Thai government yesterday asked the Japan Bank for International Cooperation (JBIC) to simplify its borrowing procedure in view of the bank’s decision to approve loans to finance Bangkok’s three new mass-transit railway lines. Speaking after meeting with JBIC officials, caretaker Deputy Prime Minister Suriya Jungrungreangkit said the bank had responded positively.
It will send another group of staff to work out details with Thai officials early next week. The loan application framework should be concluded by the end of the year.

November 23 2005 (Thaksin’s government)
The government may have to seek soft loans from the Japan Bank for International Cooperation (JBIC) to finance the first phase of its mass-transit expansion plans because it may take longer to fund the projects by other means, a source in the Transport Ministry said yesterday. He said the projects could be delayed if the government waits for a holding company to be set up to raise funds on the stock market to finance the project. Moreover, the cost may increase if the government seeks loans from other financial institutions, which tend to charge higher interest than the JBIC.

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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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