Maths of the mega-projects don't add up
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I find the mathematics of the mega-projects a bit baffling. If I borrow Bt1,000 for 10 years and pay nothing back I owe 1,629 (5 per cent p/a interest) and Bt11,250 after 50 years. Then there is inflation. But 54 years ago I could get 20 portions of cod
The construction sector in Thailand is currently short of labour despite a significant number of workers from other Asean countries being here already. The enforcement of equal pay for Asean community workers will consolidate this position. The influx of Asean labour from the Asean Community with its families will cause immigration issues in the country and without the families, an exodus of money to support workers’ families abroad. Neither outcome will help a country struggling to carry out mega-projects. With the Working People’s party in power the pay for workers may also be a problem.
The cost of the projects will be saddled with 10 years of interest payments, years of inflation and once in motion there is no way to get off the 50-year roundabout without defaulting on the debt. The lending banks will be the beneficiaries owning the projects lock, stock and barrel. A future government will have to sort out the debt. The people who arrange the banking facilities will no doubt have shielded themselves from these problems. Perhaps they do not live here.
Richard Bowler
Bangkok
