Infrastructure
megaprojects:
As oil prices soar,
rising costs, but also benefits,
from Bangkok mass transit
By Jon Fernquest
The so-called "megaprojects," large infrastructure
investments, began during the Thaksin Shinawatra administration.
Future megaprojects will focus on several areas of the economy including mass-transit, logistics, education, water-management and health-care.
Mass transportation in and around Bangkok is the focus for most recently planned and completed megaprojects.
The new Suvarnabhumi International Airport was the last infrastructure project to be completed in 1986.
The Skytrain (BTS) extension to the Thonburi side of the Chao Phraya will likely be the next project to finish.
The Airport Link, an extension of the Skytrain to the Suvarnabhumi airport, will also be completed soon. The estimated final cost is 26 billion baht (See photo on right).
In total there will be seven mass transit routes and two feeder lines.
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The recent increase in fuel costs has pushed many commuters to use the subway (MRT) or Skytrain (BTS) instead of their car. Fuel conservation and lower oil imports is the ultimate goal. Mass transit ridership is projected to rise from 600,000 per day last year to 3 million by 2013.
Budget for Megaprojects
The initial budget for the megapojects projects was estimated at 1.5 trillion baht, with haif of the budget (770 billion baht) devoted to extending Bangkok mass transportation (subways, elevated rail lines) with construction spread over the next three and a half years, from 2008 to 2011
A recent surge in oil prices and inflation has pushed up the price of building materials. New estimates by KResearch, the research arm of KBank (Kasikorn Bank), estimate that completing the megaprojects will actually take 3 trillion baht with 750-780 billion baht per year. This is quite an increase over the 500 billion that was spent per year for the last five years.
The MRTA (Mass Rapid Transit Authority) has already agreed to a 17% increase in the budget for the 23-kilometre Purple Line from the 30 billion initially budgeted.
The increased investment in infrastructure should provide some fiscal stimulus giving the Thai economy a much needed boost. Public investment is projected to increase from 5.2% to 8.4% this year. This will drive an increase in overall investment in Thailand, both public and private, projected to jump significantly from 1.4% to 7.2%.
Financing of Megaprojects
The financing for the mass transportation projects is shown in the figures on the right. Financing sources include: 1. direct financing from the annual government budget, 2. soft loans from the Japanese Bank for International Co-operation (JBIC) and the Asian Development Bank (ADB), and 3. government bonds.
Scheduling of Megaprojects
Only one transit line has finished bidding and is scheduled to have construction contracts signed this year, namely the Red Line from Taling Chan to Bang Sue, costing an estimated 165 billion baht. Construction on the projects is expected to begin in the last quarter of 2008.
Vocabulary:
infrastructure
- the basic services and facilities in a country such as water,
electricity, transportation, and communication that make everyday life
and business possible (See glossary)
สาธารณูปโภค
mass transit, mass transportation - a ssytem for
moving people in large numbers around a city or region ขนส่งมวลชน
logistics - moving raw materials to the factory, and
the finished goods from the factory to the warehouse or store
การขนส่งลำเลียงสินค้า
Suvarnabhumi International Airport - (See Wikipedia)
Skytrain (BTS) - the elevated train mass transit
system in Bangkok, Thailand (See Wikipedia)
a route
- a path or a way to get from one place to another เส้นทาง
mass transit routes - the path taken by a subway,
skytrain, or bus through the city เส้นทางรถไฟใต้ดิน รถไฟฟ้า
a line, a transportation line - a fixed route that a
train travels along เส้นทางการเดินรถไฟ
a feeder line
- a transportation line that brings people to a connection point with
the larger mass transit system, so they can go anywhere in the city
เส้นทางหลักของการขนส่งมวลชน
commuters - people travelingfrom home to work and
back everyday ผู้โดยสาร
fuel conservation - using less fuel การประหยัดพลังงาน
the ultimate goal - the final goal in the end, after
all phases of the project have been completed เป้าหมายอันสูงสุด
mass transit
ridership - the people who ride on the mass transit system
everyday ผู้ใช้บริการขนส่งมวลชน
subways - (See Wikipedia)
elevated rail lines - the skytrain lines, above
street level รถไฟฟ้า
MRTA (Mass Rapid Transit Authority) - a government
agency that oversees the planning and construction of mass
transportation lines in Bangkok รถไฟใต้ดิน
fiscal stimulus
- when the government spends money this increases economic activity
giving the Thai economy a much needed boost -
incresing activity in the Thai economy กระตุ้นเศรษฐกิจ
Japanese Bank
for International Co-operation (JBIC) - a bank owned by the
Japanese government, founded in 1999 to "promote economical cooperation
between Japan and oversea countries, by providing resources to foreign
investments and by fostering international commerce. It also has a
major role in promoting Japanese exports and imports, and the country's
activities overseas" (See Wikipedia)
Asian Development Bank (ADB) - "a regional
development bank established in 1966 to promote economic and social
development in Asian and Pacific countries through loans and technical
assistance. It is a multilateral development financial institution
owned by 67 members, 48 from the region and 19 from other parts of the
globe. ADB's vision is a region free of poverty. Its mission is to help
its developing member countries reduce poverty and improve the quality
of life of their citizens" (See Wikipedia)
bidding on
construction projects - when different construction companies
offer to do a project for a certain budget, the lowest budget wins the
project ประมูลโครงการ
construction contracts signed - after the exact
details of the contract are made final, the company and the government
sign a legally binding contract การเซ็นต์สัญญาก่อสร้างโครงการ