France seeks slice of Thailand's railway projects

Deputy Prime Minister MR Pridiyathorn Devakula told reporters that during a meeting with the French ambassador to Thailand, Thierry Viteau, yesterday he learned that France was interested in investing in the projects.
Earlier, China, Japan and Germany voiced interest in the projects.
Thailand has signed initial agreements with Japan and China for collaboration on the construction of several dual-track railway projects, while this week Germany showed interest in the Bangkok-Hua Hin route.
Pridiyathorn said he told the French ambassador that both the Chinese and Japanese governments had been discussing this project with Thailand for a long while, and that France had never previously voiced any interest.
He said the government had instead asked France to participate in bidding for an operation licence for urban-rail lines, with the auction expected to take place this year, as France had the technology relevant to electric trains.
The deputy prime minister said the government should at this time consider project bids from only those countries it had already signed agreements with, as the military government’s tenure was coming to an end.
“It should not open bids for any new projects available, letting the next governments do that,” he said.
Pridiyathorn that said if France was still interested in a high-speed-rail project, it would have to discuss the matter with the next government.
He said construction of the routes under the China partnership was expected to start first because China was already studying those projects.
Japan had asked permission to start studying the routes, but had no construction plan yet.
Under the conditions of the memorandum of understanding with China, the economic giant will transfer the construction technology to Thailand to build the routes, with China extending the Kingdom a loan at an interest rate of 2-4 per cent per annum to finance the project. “If we think the lending rate is too high, it’s not necessary to borrow. We can raise funds via the infrastructure fund, buoyed by the liquidity in the country,” Pridiyathorn said, adding: “Do not be worried too much, as the projects are considered national assets. The key point is who will construct and operate them.”
Addressing public concern over a possible lack of transparency in the Thai-China cooperation, Prime Minister General Prayut Chan-o-cha said the deal had yet to be finalised.
He added that if the project were found to be too costly, the country would not develop it.
China and Thailand signed the MoU last December. Construction is expected to commence in 2016 on two standard-gauge parallel railways – the 734-kilometre Nong Khai-Nakhon Ratchasima-Kaeng Khoi-Map Ta Phut Port line and the 133km Kaeng Khoi-Bangkok line.
Prayut said the project was overseen by a number of subcommittees in terms of possible investment, routes and benefits to be gained along the routes.
The government will also monitor the project to ensure transparency, he said.