Government’s Huge Investment Plan on Infrastructure Development

(28/01/2013)

The Government is planning to invest two trillion baht in infrastructure development, as part of its national strategy to move the country forward. In the weekly program “Yingluck Government Meets the People” on 26 January 2013, Prime Minister Yingluck Shinawatra and Transport Minister Chadchart Sittipunt provided explanations concerning the infrastructure investment plan. The Prime Minister said that the amount of two trillion baht would come from both domestic and foreign funding sources. The private sector would also be urged to co-invest in various infrastructure projects under the plan. The Government would issue a royal decree to seek loans for the plan, to be approved by the House of Representatives and the Senate. She stressed that the huge infrastructure investment should not cause concern about a negative impact on public debt, since the Ministry of Finance was told to adhere to fiscal discipline to ensure that the country's public debts would stand at not more than 50 percent of GDP. The Prime Minister said that Thailand now enjoyed fiscal stability and that its international reserves were also in a good position. She explained that, during her visits to various provinces, local people called for better transport networks to facilitate their travel. More convenience in traveling would help in wealth distribution to the provinces. So connectivity in the regions of the country is important. For example, if there is a high-speed train service between Bangkok and Chiang Mai, nearby provinces would also benefit from wealth distribution. The Prime Minister believed that the infrastructure investment plan would also reduce costs, shorten transportation time, and reduce social, political, and economic disparity between low-income and high-income earners. Moreover, the plan would generate employment and attract tourist arrivals and investments. She added that infrastructure would lead to a better quality of life, as well, and that the Government deemed it necessary to ensure that all groups of people would receive equal rights and opportunities. Among the investment projects are 10 electric train routes and double-track train service. In border provinces, there would be transportation networks linking with neighboring countries, which would promote tourism and facilitate business operation. According to Transport Minister Chadchart Sittipunt, the Government plans to increase the number of electric train routes in Bangkok to 10 by 2019. About 800,000 people are currently using two electric train systems in Bangkok. Among them, 600,000 use the Bangkok Mass Transit System (BTS), or the skytrain, and 200,000 use the Mass Rapid Transit (MRT), or the subway. Mr. Chadchart said that around four million commuters are likely to use the two systems by 2019 and the number is expected to increase to eight million in the future. He believed that the infrastructure investment plan would create job opportunities for at least 500,000 people, build new towns, and contribute to the growth of the country’s GDP.