China may aid Thai rail development

Beijing - The government will soon explore in greater detail ways to work with its Chinese counterpart in developing Thailand's rail network and connecting it to neighbouring countries.

"The Chinese government is willing to give its support for infrastructure development in Southeast Asia, but that also depends on whether they can find any opportunities.

"Now we have such an opportunity at hand, so we don't hesitate to offer it," Prime Minister Abhisit Vejjajiva said on Wednesday.

After his formal meeting with Chinese Premier Wen Jiabao in the Chinese capital, Abhisit told the press that both countries had agreed to boost their cooperation to develop rail transport nationwide and also connect the system with Asean members.

China's support could be in the form of technology or capital.

"It's possible to make a joint venture together. The format of public-private partnership [PPP] can be one of our choices," he said.

The National Economic and Social Development Board will be responsible for revising the regulations that are obstacles to implementing the PPP scheme.

He declined to disclose the time frame for the NESDB, but expressed confidence that the changes would not hamper negotiations with China.

Deputy Premier Suthep Thaugsuban and Transport Minister Sophon Saram are expected to go to China and follow up on the details in one or two months, he said.

Wen accepted Abhisit's invitation to join the Asean meeting in October. Wen's official visit could be scheduled before or after the Asean meeting, Abhisit said.

Shi Dahua, chairman of China Railway Group (CRG), the largest integrated construction group in China and Asia, met Abhisit yesterday to enquire about the policy on railway construction.

"I focused on two things - the rail routes and types of investment. It's good that this company showed interest in our rail-transport development projects and it's ready for any form of investment," Abhisit said.

The company showed flexibility in meeting the government's requirements, including the ratio of local employment and the transfer of railway know-how to local staff.

Abhisit also invited the company to visit Thailand to see what it can do and continue its dialogue with the government in one or two months.

CRG has built railroads in China, Vietnam and Africa.

As this firm mainly employs technology from Japan and Germany, it could develop the railway system in Thailand efficiently, he said.

Sorayut Phettakul, vice industry minister, said the Board of Investment (BoI) had released the new types of projects, including infrastructure development, that can apply for tax incentives at the year's start. The BOI plans to liaise with the Transport Ministry to hold the bidding for investors keen on the government's mega-projects.

"We might not choose the cheapest project any more. We plan to consult with Prime Minister Abhisit to give more weight to those projects using local content and creating jobs for our people, even though their projects will be more costly," he said.

This policy has already been tabled with the National Logistics Committee and the Office of Transport and Traffic Policy and Planning.

The proposal will be submitted again at the next National Logistics Committee meeting, chaired by the premier.

Abhisit said he had also talked with Wen about the baby panda issue. They agreed that the loan of the cub's parents had become a significant factor in helping tighten the relationship between the two countries.

He declined to disclose progress on this issue, but said Thailand needed to learn how to look after the growing panda, such as by establishing a research and development centre.