Chadchat defends B2tr loan bill

Transport Minister Chadchat Sittipunt has shrugged off opposition claims that the 2-trillion-baht borrowing bill for overhauling infrastructure will breach the constitution.

‘‘I am not worried about the prospect of any challenge in the Constitution Court,’’ Mr Chadchat said.

‘‘I have done my duty and come up with the best option.’’

The Democrats say the government has failed to present sufficient details of the projects to be funded with the borrowed money, and are threatening court action if it is passed into law.

If the court rules against the bill, the public will be told about the problem and other options will be sought, Mr Chadchat said.

Parliament is expected to approve the bill in the coming months, authorising new loans to help finance rail, road and port improvements over the next seven years.

Asked why the government is not simply financing the changes from its annual budget, Mr Chadchat said that would hinder future governments.

Future governments would be unable to roll out any new projects, he said, while investments under the loan would last many years.

The Finance Ministry conceded recently that it will take the government 50 years to repay the loans.

Still, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong yesterday said the loans — from domestic and international sources — will put Thailand’s public debt at less than 50% of gross domestic product (GDP), a level that will not harm fiscal discipline.

Mr Chadchat said the government must be responsible for carrying out basic infrastructure. The private sector could then take part in the investment of public transport services or develop land plots around such services, he said.

Mr Chadchat insisted the high-speed train project could yield high returns, despite some academics’ claims it would be uneconomic. The construction of high-speed rail routes stretching 1,400km would cost 780 billion baht, compared with the cost of building just 200km of electric train routes in Bangkok which would come to 400 billion baht.

Mr Chadchat also stressed the projects will be carried out under the law.

The 2-trillion-baht borrowing bill, if approved, would allow the government to carry out the projects in line with plans to boost transport and logistics systems, he said.