10 MRT lines: An unacceptable
and far-fetched policy
Professor Kriengsak Chareonwongsak, PhD
President
of the Social Science Association of Thailand
kriengsak@kriengsak.com,http://www.kriengsak.com
In
December 2005, the government invited all foreign ambassadors to Thailand to
hear its modernization proposals for the whole country. After discussions of
the full details, foreign companies or trade emissaries will be invited to
submit tenders on projects.
I
am absolutely certain that government policy on this proposed addition to the
MRT system is as unclear as it was when the project was first announced as part
of a pre-election platform.
Vagueness of the construction budget
Because
the government is proposing to exchange investment in the MRT project with
latex rubber, it is apparent that the government doesn’t have the finances for
this project. Economic slowdown and, in particular, the now suspended
privatization process have put financial pressure on the government. Therefore,
it is forced to barter to obtain enough funds the project. This doesn’t look
good.
Moreover, five
countries – England, USA, France, Germany, and Japan – all who are the biggest names in MRT
technology, have recently rejected the project. So, offering latex rubber, will
not work in this case.
In
addition, if the government wants to exchange MRT system with rubber, it is
necessary to deal with Thailand’s greatest para rubber buyer, namely, China. Yet,
China is unlikely to have the best MRT technology because China only began
building MRTs a few years before Thailand.
However, if
there is a country willing to invest in a Thai MRT and willing to exchanging
its investment with Thai goods, the specific source of Thailand’s financing
portion still has not been definitively named. Furthermore, this barter system
assumes that the investing nation lack the goods Thailand is suggesting for an
exchange. Also, if the government produces these goods using private sector
financing, who will be willing to pay the private sector the goods they have
extended as a part of raising finances for the MRT ?
Vagueness
of MRT type
Because the
Thai government will invite foreign companies to
submit tenders on projects without project specifications, it is clear that the
government is not clear about the type of MRT construction it wants to have.
The
uncertainty of government plans is further evidenced by its back-and-forth
policy changes, i.e. from seven lines to five lines and then to ten lines. What
is the government doing? Has the government conducted feasibility studies yet?
Simply, because of the ambiguity of government plans, these public declarations
by the PM may merely be stall tactics, a way to delay MRT construction.
In addition,
if the government really wants foreigners to bid on the project, why hasn’t it
taken the time to clearly define issues that would concern Thailand, that is,
foreign technology issues within which Thailand has no knowledge ? For example,
“What criteria will the government use to choose one particular type of MRT?”
“Is it desirable for Thailand to choose foreign investment based on foreign
options?” and “Will the decision be transparent?”
Such obscurity
makes people doubt the validity of such projects. If foreigners reject the
government’s proposed barter trade system, what can the government do? How can
the government seek other investment? And if the type of rail system still has
not been clearly identified, when will people be able to use the new MRT lines?
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