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Published on February 27, 2008

The Transport Ministry's top officials will convene today to discuss the expanded menu of mega-infrastructure projects, which will force the ministry to spend heavily for years to come.

"The projects will require a huge increase in budgets. In formulating budget proposals, we can no longer focus solely on available funds. Now the quantity of works will determine how much the ministry will require," permanent secretary Chaisawat Kittipornpaiboon said yesterday.

Following the new government's ambitious plan to build nine urban train routes within three years, the ministry will have to ask for extra annual budgets, he said.

Also yesterday, the Cabinet approved the establishment of

five mega-project committees, all chaired by Prime Minister Samak Sundaravej.

Their membership will be drawn from ministers, permanent secretaries and chiefs of relevant agencies, said Deputy Prime Minister and Finance Minister Surapong Suebwonglee.

The transport committee will take care of high-speed and rural trains.

The airport committee will oversee the expansion of Suvarnabhumi Airport and upcountry projects.

The water committee will implement projects for a national irrigation grid.

The education committee will supervise the installation of a computer system to promote curricular and extracurricular schooling.

And the public-health committee will oversee projects that improve the delivery of medical care.

Federation of Thai Industries vice chairman Thanit Sorat said the private sector supported the government's economic plan consisting of seven strategies, 17 policies and seven top priorities.

Even if the government managed to achieve only 60 per cent of the goals, that would be satisfactory, he told a seminar on government policy hosted by the National Social and Economic Advisory Board.

Business should show an improvement in the third quarter after the government starts boosting the economy, he said.

However, he is concerned about whether the government can find funding sources to finance all of these grand projects.

The mega-projects will need Bt700 billion, small and medium loans Bt100 billion and the double-track rail system Bt400 billion, while the Kingdom has only about Bt10 billion in reserves, he said.

The government is already US$65 billion (Bt2.1 trillion) in debt, equal to 48 per cent of gross domestic product, he added.

Rural Roads Department director-general Rapin Charudul said his agency had studied the feasibility of the Bt6-billion West Coast road project, as mentioned by Transport Minister Santi Prompat.

The Thai Riviera Highway will extend for 600 kilometres through four provinces: Phetchaburi, Prachuap Khiri Khan, Ranong and Chumphon.

"However, it is a huge project. We must clear the environmental assessment first and coordinate with local agencies before starting construction. The department will propose this matter to the ministry for approval before beginning building the first phase, from 2009-10," he said.

Marine Department director-general Prasong Tanmaneewattana said one project that Santi would resurrect was the southern land bridge.

However, a study has found that some harbours were not suitable for deep-sea-port construction, such as in Krabi and Phuket, because they are prime tourist destinations. Turning Satun's Pakbara Port into a deep-sea port would be suitable, and some companies have shown interest in investing in and managing it.

"This project has no problem regarding budget. I'll propose a study of the project to the ministry soon," he said.

The Nation