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INFRASTRUCTURE
NAREERAT WIRIYAPONG
Thailand remains firm on track to receive funding from the Japan Bank for International Cooperation (Jbic) for the mass transit scheme despite minor concerns on higher costs pushed by inflation and political uncertainties.
However, any political changes could further delay the implementation of these infrastructure projects, which have already been stalled for two years, a senior Japanese government official based in Bangkok acknowledged.
The official, who declined to be named, said the main criteria for the Jbic to grant the loan was the economic and financial stability of a recipient country, not its political situation.
''Of course, political climate is taken into consideration but so far, politics does not affect Thailand so much in terms of growth, even the coup in September 2006,'' said the official, who has involved in discussions for financial aids given to Thailand.
''It is unlikely the political situation would cause the Japanese government to change the financial support given to Thailand,'' he added.
To date, the Japanese bank has agreed to grant loans as part of the Official Development Assistance (ODA) programme for three electric train lines in Bangkok. The first request for the financial assistance was made in August 2006 during the administration of the Thaksin Shinawatra government.
He noted a possible cabinet reshuffle late this month by Samak Sundaravej should not have significant effects on the megaprojects.
Finance Minister Surapong Suebwonglee and Transport Minister Santi Promphat are among those expected to be removed from the current positions. They are involved in the approval of the 770-billion-baht nine train lines in Bangkok.
''We hope the coming cabinet reshuffle would not cause big changes on the mass transit plan,'' the official said, adding that minor impacts were expected even if the entire cabinet was out.
''The current pro-Thaksin government and the opposition Democrat Party clearly share the same view of expanding mass-transit train lines in greater Bangkok,'' he stated.
Among the three lines, only the ODA loan worth about 62.4 billion yen was signed to finance the first phase of the civil works of the Purple Line from Bang Sue to Bang Yai in neighbouring Nonthaburi.
The involved agencies are finalising the bidding of the 23-kilometre route this month, with the official saying there is the possibility for the Jbic to provide an additional amount for the remaining parts of the project.
The cabinet earlier approved to raise the estimated cost of the Purple Line to 38 billion baht from 32 billion projected earlier due mainly to higher construction-material prices.
The Mass Rapid Transit Authority (MRTA) also plans to request the government's green light to lift the price of the 27-kilometre Blue Line from the current 56.8 billion baht.
The official said the Jbic had already agreed to financially support the construction of the Blue Line linking Bang Sue with Tha Phra and Hua Lamphong with Bang Khae. The bank is now waiting for the MRTA to submit its loan request.
Meanwhile, the Jbic team is conducting a study for possible loans of 350 billion yen for the Red Line now expected to cost 77 billion baht, up from 59 billion baht projected earlier.
''We aim to finish the study on the Red Line this month and send the report to Tokyo shortly. Hopefully, the decision for the loan approval could be made within this year,'' the official said.
The official said the bank has reviewed cost estimates of these projects and agreed to offer contingency adjustment for inflation.
''Inflation has driven the costs of infrastructure projects, not only in Thailand but also in other countries,'' he said.
''For the time being, it is okay for the Japanese government to grant loans to Thailand despite the price increases,'' he added.
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