Dawei studies still proceeding
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Dawei studies still proceeding

A feasibility study and environmental impact assessment (EIA) for Dawei infrastructure projects worth a combined 50.2 billion baht will continue despite the government's 2-trillion-baht infrastructure plan being stalled.

The projects include a 96-kilometre Bang Yai-Kanchanaburi motorway for access to Dawei.

A National Economic and Social Development Board (NESDB) source said relevant agencies remain occupied with their part in these studies.

The new government may find other sources of funding or use public-private partnerships to move on the projects if the infrastructure development borrowing bill falls through, said the source.

The fate of the massive borrowing bill, with most of the funding earmarked for high-speed trains, was thrown into uncertainty after the Constitution Court accepted a Democrat Party petition against its constitutionality.

A ruling is not expected any time soon.

NESDB secretary-general Arkhom Termpittayapaisith insists the investment, particularly in rail development, is essential and must move ahead no matter who forms the next government.

The projects will help to cut the country's hefty logistics costs, he said.

Thailand's logistics costs are expected to remain at 14.5% of gross domestic product (GDP) at year-end compared with 5-6% for Singapore and 10-11% for Malaysia. Some 82.6% of goods in the country are carried by road, followed by water (9.5%), coastal marine (5.7%), rail (2.2%) and air (0.02%).

Thailand previously managed to lower its logistics costs from 17.1% of GDP in 2007 to 14.5% in 2011.

The government says the 2-trillion-baht infrastructure plan will cut logistics costs by an additional two percentage points.

The NESDB recently approved development of the first section of the 35.4-kilometre Orange Line linking the Thailand Cultural Center and Min Buri district, valued at 80-90 billion baht.

The proposed line has already undergone an EIA, while bidding is expected to open next year after a delay from this year.

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