Infrastructure work to gather steam

Infrastructure work to gather steam

From motorways to mass transit to double-track rail, 2017 promises movement on long-delayed projects that will stimulate economic activity

With the current government committed to calling the general election sometime in 2017, big-ticket infrastructure development is expected to speed up.

According to the Transport Ministry's action plan approved by the cabinet on Dec 13, 36 infrastructure projects worth 896 billion baht are scheduled for investment in 2017.

Some 74.1 billion baht or 8.3% of the total will be covered through the fiscal budget, with about 576 billion (64.3%) coming from loans and 197 billion (22.1%) from public-private partnerships.

Some 44.8 billion baht or 5% will be from the Thailand Future Fund and the remaining 3.4 billion or 0.4% will come from income provided by the projects' owners.

Of the total investment, rail system development will account for 73.3%, expressways and motorways will take up 18.7%, with the remainder going towards marine transport and the expansion of Suvarnabhumi airport.

Projects to commence in 2017 include the expressway linking Rama III Road-Dao Khanong and the Western Outer Ring Road.

The Blue Line mass transit route on the Bang Khae-Phutthamonthon Sai 4 section, the Light Green Line on the Samut Prakan-Bang Pu section and the Light Green Line on the Khu Kot-Lam Luk Ka section, as well as the Orange Line section linking Thailand Cultural Centre and Taling Chan are also expected to break ground.

The second stage of seven double-track rail projects spanning 1,439 kilometres worth 292 billion baht are also set to be put forward for cabinet approval in early 2017.

The seven routes are from Pak Nam Pho in Nakhon Sawan to Den Chai in Phrae; Jira in Nakhon Ratchasima to Ubon Ratchathani; Khon Kaen-Nong Khai, Chumphon-Surat Thani; Surat Thani-Songkhla; Hat Yai-Padang Besar; and Den Chai-Chiang Mai.

Deputy Prime Minister Somkid Jatusripitak says those projects will play a significant role in boosting the economy in 2017 while enticing private investment.

There are five significant projects slated for construction with a total investment budget of 54.8 billion baht. One such project is an expressway from Rama III Road via Dao Khanong to the western outer ring road, worth 31.2 billion baht.

There are 15 projects ready to open for bidding with total investment worth 469 billion baht. They include mass transit projects such as the Blue Line extension from Bang Kae to Phutthamonthon worth 21.2 billion baht, the Green Line, Samut Prakan-Bang Pu (12.1 billion), the Green Line Kukot-Lamlukka (9.8 billion), and the Orange Line from Taling Chan to Thailand Cultural Centre (123 billion).

The second stage of seven dual track rail projects with 1,439 km worth 292 billion baht is expected to open for bidding in early 2017, while construction will get under way in mid-2017.

There are eight more projects with combined investment of 298 billion baht now queueing for cabinet approval. They include the third phase of the Laem Chabang deep-sea port worth 35.1 billion baht, a special expressway project linking Kathu and Patong in Phuket valued at 10.5 billion, and the long-delayed northern expressway linking the Kasetsart intersection and Nawamin Road, also known as the N2 section, worth 14.4 billion.

The planned expressway, which will link west Bangkok at Bang Pa-in-Bang Phli motorway to the Eastern Ring Road in east Bangkok, was earlier halted due to strong opposition to the project from Kasetsart University.

The government has recently instructed responsible authorities to resume construction of the N2 section.

The latest move is based on advice from the National Council for Peace and Order, which cited the need to relieve traffic congestion in northern Bangkok.

The Transport Ministry has also completed a feasibility study on four other projects including ferry ports in the upper Gulf of Thailand, a motorway linking Hat Yai and Malaysia's border, and logistics centre development in nine border provinces with a combined investment of 49 billion baht.

The ministry has also unveiled its plans to construct two more projects worth a combined 24 billion baht: rest areas for trucks and a mass transit network in Phuket.

The investment in those projects also conforms to the 12th National Economic and Social Development Plan (2017-21) and runs in tandem with the 20-year National Strategy, a larger framework for Thailand's development.

According to a recent report to the cabinet by the Transport Ministry, of the 20 big-ticket transport infrastructure projects worth 1.41 trillion baht planned for fiscal 2016, four projects worth 45.5 billion baht are under construction, and nine worth a combined 488 billion are in the bidding process.

The remaining projects will be opened for bidding in 2017.

Mr Somkid says many projects were subject to delays thanks to lengthy negotiations, including the Sino-Thai high-speed rail network linking Bangkok and Nong Khai (the Bangkok-Nakhon Ratchasima section), the Japan-Thai high-speed rail project linking Bangkok and Chiang Mai (the Bangkok-Phitsanulok section), the high-speed rail network linking Bangkok and Hua Hin and the high-speed rail project linking Bangkok and Rayong.

Kobsak Phutrakul, assistant minister to the Prime Minister's Office, says state spending on those infrastructure projects and growing tourism is likely to boost Thailand's economy to grow 3.5-4% in 2017.

But those infrastructure projects exclude development projects planned for the much-touted Eastern Economic Corridor (EEC), which the government hopes will form a new engine to drive economic growth.

Mr Kobsak says that as much as 20 billion baht will be slated for infrastructure project development in the corridor during fiscal 2017.

The cabinet in October approved the draft law outlining the development of the EEC, which will run through Chon Buri, Rayong and Chachoengsao.

The corridor has been designated for development as a high-tech industry cluster, with an eye towards becoming Asean's leading economic zone for industrial, infrastructure and urban development.

The project is meant to accommodate the 10 targeted industries being promoted as clusters by the government.

Those industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

The corridor will also rely on developments in transport infrastructure, including air, land, rail and water links.

The EEC is also set to become an Asean water transport hub, linking the Dawei deep-sea port in Myanmar with Sihanoukville in Cambodia and Vung Tau port in Vietnam.

The Industry Ministry aims for the EEC to attract up to 550 billion baht in investment over the next five years.

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