"There is no need to worry about funding. We can either issue bonds or borrow from the Japan Bank for International Cooperation," Pridiyathorn, who is also finance minister, told reporters after meeting with government agencies on the progress of the projects.

The bidding for the Red Line, covering 41 kilometres and budgeted at Bt53.99 billion, will take place in March, he said.

For the 23-kilometre Purple Line, expected to cost Bt29.16 billion, bidding will take place in May, while that for the Blue Line extension, covering 27 kilometres and worth Bt52.58 billion, will be in July, Pridiyathorn said.

Last November, the Cabinet approved the construction of five routes with a combined length of 118 kilometres and costing an estimated Bt165.4 billion.

They are expected to be completed by the end of 2012.

Yesterday, Pridiyathorn chaired the meeting with five agencies involved in the construction. He was briefed on the results of an opinion survey from the Traffic and Transport Policy and Planning Office that showed 95 per cent of respondents wanted the government to speed up the construction of the five routes. They also said that the fares should range from Bt12 to Bt36.

Mass Rapid Transit Authority governor Prapat Chongsanguan said the authority should expedite land expropriation for the construction of the Purple Line within the next few months. He also said the bidding should start in May.

The massive investment is expected to give a big boost to the economy, which is suffering from lower consumer confidence and export growth.

The Transport Ministry has assigned three state agencies to cooperate in mapping out the opening of rail-freight services using State Railway of Thailand (SRT) track for the private sector.

Deputy Transport Minister Sansern Wongcha-um said yesterday after a meeting with the Ports Authority of Thailand, the Energy Planning and Policy Office, and the SRT that he had assigned the three organisations to work out how private companies could provide rail-freight services.

In addition, he said the guidelines should include how quickly a pilot project could begin.

"The three agencies made a commitment to come up with the guidelines by next month," Sansern said.

The first tracks to be opened for the private sector, he said, would run from Nakhon Sawan to Laem Chabang and from Khon Kaen via Nakhon Ratchasima to Laem Chabang. The companies who receive concessions to operate rail-freight services will have to invest in locomotives and freight containers, while the SRT will benefit from track rental revenues.

However, the three agencies will have to come to an agreement with the private sector on service rates.

"This will help the country develop a logistics system," Sansern said.

Watcharapong Thongrung

 The Nation