Mega-Projects : no money in Thailand… so let’s ask foreigners

We left the “Financing The Mega Projects Saga” there

The authorities (one of the problem is that there are… too many) modify the schemes too often, proving that they have no clue about the best way (if any) to finance those megalomaniac projects (1 700 billions THB, or 800 or 555, the total is not even known with precision).

The Public Debt Management Office (PDMO) will increase overseas borrowing to finance the mass transit megaprojects, according to director-general Pongpanu Svetarundra.

He said rising domestic interest rates and higher private investment demand would make overseas borrowing from lenders such as the Japanese Bank for International Co-operation, the Asian Development Bank and the World Bank more cost-effective.

And of course, the foreign lenders are waiting for them ! Everything is prepared : even tea and cookies. šŸ˜‰ They just can’t find the money in Thailand, so they naturally assume that the world is there, ready to sign a check. It’s unbelievably naive.

Domestic financing for the mass transit programmes will be reduced from 60% of total financing to 50%.

Ah ! I think it’s the third “change”, regarding the % (read here). It reminds me a TV game : “60 ? Nobody at 50 ? Come on make it 40 then”.

Mr Pongpanu said shrinking market liquidity and anticipation that the Bank of Thailand would soon raise short-term interest rates had helped push up government bond yields by two percentage points for the year to date.

Indeed : the party is over. Inflation everywhere… The situation is worsening… But interest rates are going up in many countries (well… not in the US šŸ˜‰ .

”A shift toward more overseas borrowing will help reduce operating costs. And it will avoid a crowding-out effect on private borrowing,” he said.

Mr Pongpanu said rising domestic borrowing costs would not cause the 1.7-trillion-baht infrastructure megaprojects to be delayed from current schedules, which map out investment over the next three years.

Totally idiotic and the usual rozy marshmallow thai bullshit : if the financings is not settled at 100 %, the project can’t go forward.

No money, no honey they should start to know… šŸ˜‰

3 Responses to “Mega-Projects : no money in Thailand… so let’s ask foreigners”

  1. 1 chinesethai 18 June 2008 at 6:33 am

    They don’t even have the picture yet as to what Thailand should look like in the long term. So don’t ask why they don’t have a clue as to what will and will not included in the megalomaniac projects? Let alone the financing size and format.

  2. 2 chinesethai 18 June 2008 at 6:42 am

    The decision whether to build what is based more on who’s gonna get how much than on national interest. In Thailand, politics always prevails feasibility studies.

  3. 3 Seizhin 20 June 2008 at 11:19 am

    I cant stop laughing when I see both people talking about fortunes.

    Fortune telling arent really up to my interest, but lol.

    But it sounds good, either way if a blood-shed erupted then the King would be forced to minister a few wise word and all will end.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

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.

%d bloggers like this: