Senator urges extension of flood loan deadline

Senator urges extension of flood loan deadline

Extending the deadline to acquire a 350 billion baht loan for flood management projects is much needed, says a member of the Senate committee on monetary, finance, banking and financial institutions.

Kamnoon Sidhisamarn, who is also the committee's spokesman, said the government should make a decision right now to extend the deadline so it will not have to pay an unnecessarily high rate of interest.

Mr Kamnoon said if the government is in a hurry to get a big chunk of the loan but cannot allocate it to any projects at the moment, the money would be kept at the Finance Ministry and accrue daily interest.

He said the government should consider its options on how to proceed as the deadline for seeking such a huge loan is on June 30 next year. "If the deadline passes, it means that the government will not be able to take out any loan for flood prevention schemes following the executive decree to seek a loan of 350 billion baht," he said.

If, however, the government can get a loan within the deadline, it should tell the public how it proposes to pay off the interest, he said. "We have a constitution that requires people to have a say in mega-projects that affect the environment and health."

However, Mr Kamnoon expressed his worries over the enforcement of the executive decree as he found it provided some loopholes for anyone to misuse the loan money through special procurement methods.

According to the Water and Flood Management Commission, the government has already borrowed 29.84 billion baht to support 425 projects. That comprises 995 million baht for forest plantation and ecological system improvement, 28.26 billion baht for improving infrastructure relating to water control and 614 million baht for a water retention management zone.

Joining a chorus of voices calling for Yingluck Shinawatra's government to express its sincerity in allowing people to check on the mega-flood projects, Hannarong Yaowalers, chairman of the Thai Water Partnership, said all stakeholders should closely monitor the government's flood management plans.

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