Financing the mega projects : still the mega wait (part 2)

The flying circus of the “Japan-will-finance-our-mega-projects” is back in town !

Last episode : in november, the Transport Minister was “sure 100 percent” that the Japan Bank for International Corporation would grant loans to finance the “mega projects”, AKA the new train lines that the politicians (first Thaksin, and then the Junta) have been talking about since many years…

Discussions were positive” and “the ministry is waiting for JBIC’s answer on whether it would grant loans to the Kingdom within the next one to two weeks.” That was on november 5 (read here).

Unfortunatly, it’s hard to be a thai transport minister, especially in a military appointed government… Because, since the beginning of this comedy, well… the Japanese seem reluctant… Or I would say : prudent.

A Transport Ministry source said yesterday that the main reason the five rail projects – with total investment requirements of Bt165 billion (4,8 billions USD), and which were approved by the interim government at the end of 2006 – could not be opened to bidding within its term was because the JBIC was reluctant to make a commitment.

Though there was no progress in tendering the rail projects during this government’s term, all processes are on track for the new government to continue” (Nation)

Yes, sure. And probably the new government will change the whole project, once again…

It’s the guaranty that the comedy of the “mega projects” is likely to continue for a long time. 😉

Last point, and more seriously, the Junta based its “growth forecast” for 2008 with the idea that the mega projects would give a serious boost to GDP… I think now it’s clear… we can’t expect a large effect this year…

Too bad. Maybe next year ? 😉

3 Responses to “Financing the mega projects : still the mega wait (part 2)”

  1. 1 fall 9 January 2008 at 1:25 am

    …JBIC has suggested that Thailand prepare to seek credit once it has a new government, which would make loan approval easier.

    I dont know what they call it, but I call that “rejected loan”.

    …all processes are on track for the new government to continue.

    Awaaa, how nice and considerate of them. In other word, no result, rejected, please try again.

    Just amazing how comfortable they (Transport ministry and news media) are at playing deaf and dumb. Kind of define the meaning for “positive spin”.

  2. 2 thaicrisis 9 January 2008 at 6:17 am

    Thanks Fall… “spin” was exactly the word I was looking for.

  3. 3 kokothemonkey 11 January 2008 at 5:58 am

    Japan will have its own problems……..

    Goldman Says Japan Recession Risk at `Danger Level’

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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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