Prime Minister Srettha Thavisin and Pheu Thai MPs on Thursday defended the 1-trillion-baht Land Bridge megaproject, saying it will help with the country's economy and development.
During Thursday's House debate on the 2024 fiscal budget, Mr Srettha, who was assigned to respond to MPs' questions regarding the project, said it could help improve the economy if it is successful.
Mr Srettha said Thailand wants to be a logistics hub to help connect the world. This project will help the country elevate its competitiveness, he added.
The project also serves as a way to help ease congestion on the Strait of Malacca, considering that 60% of the oil used globally passes through the stretch of water, he said.
Prime Minister Srettha Thavisin defends the "Land Bridge" project before the opposition raises an issue about the increased budget of the Defence Ministry on the second day of the 2024 budget bill debate. (Photo: Chanat Katanyu)
"The government conducted this megaproject with the current geopolitical scene in mind, as the country has no conflicts with other nations," he added.
Mr Srettha also said that the project will allow other countries to use Thailand as a transport centre.
He said he will conduct a public hearing with locals in Ranong and Chumphon provinces, slated to be the locations of the megaproject, as well as investors, regarding its impact.
Sriyada Palimaphan, a Pheu Thai list MP, said the government has finished compiling reports on the project, including the one on the South Economic Corridor, just in case the project gets approved.
A study showed this project will increase the GDP by 1.5%, Ms Sriyada said.
Ms Sriyada said that the megaproject comes at a "right time", amid concerns of congestion in the Malacca Strait among transport providers worldwide.
The project's planning actually started during the Thaksin Shinawatra administration, and companion projects were carried out during the Prayut Chan-o-cha government, she said.
Worth an estimated 1 trillion baht, the land bridge project comprises deep-water ports in Ranong and Chumphon, a motorway cutting across the land to connect the two provinces and a railway system.
The project aims to develop the ports and the roads connecting the two with a budget of approximately 6.21 billion baht for land expropriation.
Based on a timeline for the project's development, the scheme is divided into four phases.
The first phase will cost roughly 610 billion baht, the second 165 billion baht, the third 229 billion baht, and the fourth will cost 85.1 billion baht.