Mega-Projects : costs will rise by 20 %

Inflation affects many sectors of the economy… even the so called “Mega-Projects”.

Bad news for the budget plans… that were already very shaky.

Rising labour, concrete, steel and materials prices could push cost estimates for the country’s planned mass-transit projects up as much as 20%, according to Finance Ministry officials.

But officials privately said that even though costs are expected to increase over original projections, the benefits from the projects are also likely to be higher as a result of greater savings from reductions in oil imports, traffic congestion and lost economic activity.

The government has approved the construction of nine new mass-transit routes in Greater Bangkok for a preliminary budget of 770 billion baht.

But many of the construction plans can be traced back earlier in the decade, when oil and basic materials prices were considerably lower than today. (Bangkok Post)

[if you want to have more details about the Mega-Projects :]

-Financing the mega-projects : 31 % are… unaccounted for

Mega-Projects : good news, 2,5 % are financed

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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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