Other funding sources eyed
The Finance Ministry may seek other lenders to fund the government's mass-transit projects beyond the Japan Bank for International Cooperation (JBIC), due to the new political environment.
Pongpanu Svetarungra, acting director-general of the ministry's Public Debt Management Office, last week said he would invite officials from the State Railway of Thailand and the Transport Ministry to discuss financing for the extension of the three subway routes and the two Skytrain lines.JBIC earlier committed to providing loans to support the projects. But Pongpanu said the ministry planned to diversify funding sources. It may seek loans from the Asian Development Bank as well as JBIC because it is unsure whether the Japanese bank will stick to its commitment following the change of Thai government. A decision by the United States not to continue financial support for military projects with the post-coup government may discourage other international agencies from extending loans. Diversification of the source of loans would ensure that the projects go ahead, he said. Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula said last week that the government would proceed with the five route extensions. - Wichit Chaitrong, The Nation
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