Govt to invest in Purple Line rail system

"The government will proceed with the investment in the rail system. We're asking for the Cabinet's approval within a month," Chalongphob said in the annual seminar by the National Economic and Social Advisory Committee in Pattaya.

 "In light of lower export growth, the government must take charge of investment to boost the economy. I think the next government also needs to follow this line while having to maintain some populist policies to take care of the huge number of the poor," he said.

 Chalongphob said that the decision to split the investment in two parts will speed up the investment, which has been delayed for some time due to uncertainties concerning the pattern of joint public and private investment. The uncertainties have also resulted in the delay in the loan approval by Japan Bank for International Cooperation (JBIC).

 He noted that if JBIC cannot approve the loan for such investment in time, the Finance Ministry will tap domestic funds as state and private banks are ready to lend due to ample liquidity in the market.

 "I understand that there could be delays in JBIC's loan approval as Japan's prime minister has resigned and JBIC is also under reorganisation. Still, we want to tap a loan from JBIC," he said.

- The Nation