OTP bids to revive vetoed loan projects

OTP bids to revive vetoed loan projects

B250bn sought for transport schemes

The Transport Ministry needs an extra 250 billion baht from the government’s 2015 fiscal year budget to begin projects outlined in the rejected 2-trillion-baht borrowing bill.

If the ministry receives the funds, it can start nearly all the planned transport projects including the twin-track and electric railways, Chula Sukmanop, director-general of the ministry’s Office of Transport and Traffic Policy and Planning (OTP), said yesterday.

High-speed rail projects would not be included in the annual budgetary request because they have yet to be studied.

The additional budget request complies with recommendations from the Constitution Court and other bodies that projects under the dismissed 2-trillion-baht borrowing bill should be pursued using funds from normal annual budgets, according to Mr Chula.

He said the additional budget request was the fastest way to acquire the money to kick-start the transport projects now that the borrowing bill was rejected.

If a new government is formed in May, the process of budgetary consideration and allocation can be completed by December, Mr Chula said.

However, he said he does not know how much extra funding the government can allocate.

He said the government had to limit the country's public debt to the equivalent of 50% of the national gross domestic product.

“If 1.2 trillion baht is allocated in the 2015 fiscal year, the OTP will seek 250 billion baht more. That will increase next year’s budget considerably but it is necessary. It depends on whether the request will be accepted,” Mr Chula said.

The OTP director-general confirmed the high-speed train projects will proceed.

He referred to the planned Bangkok to Chiang Mai, Nong Khai and Padang Besar high-speed rail links.

“High-speed railways are not included for the 2015 fiscal year because they are under the study and design stage. When this process is concluded, the proposals will be forwarded to the new government so that loans can be sourced for construction,” Mr Chula said.

State Railway of Thailand governor, Prapat Chongsanguan, said yesterday that the rejected 2-trillion-baht borrowing bill could seriously delay twin-track rail projects on five routes with a combined distance of over 700 kilometres that were scheduled for completion in seven years.

The Constitution Court last Wednesday threw out the bill which the Yingluck Shinawatra government had introduced to authorise the Finance Ministry to borrow 2 trillion baht to pay for a number of mega-infrastructure projects, mostly transport, over seven years.

The court ruled the bill, which received parliamentary consent, violated the constitution and that a government MP had illegally voted multiple times using an electronic card system on behalf of absent colleagues to ensure the bill was passed.

Opponents of the bill said it would allow the government to spend large sums on the infrastructure projects without them being subject to scrutiny required under budget-related laws.

The court agreed with the bill's opponents and ruled the loans sought under the bill would comprise state funds and that spending would have to comply with budget laws.

Special spending that avoids examination under budget laws must be for emergency cases only and the court stated that the infrastructure projects were not urgent.

The Democrat Party plans to impeach Ms Yingluck as a result of the ruling.

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