BANGKOK MEGACITY 13
“ The expansion of Bangkok’s mass transit system will result in a ratio of routes-to-population that is close to that of Tokyo. Bangkok as a hub for trade and traffic in the ASEAN region will become more attractive to investors as its inner connectivity improves.” Another example of the infrastructure projects announced by the Government is the Phaholyothin Transportation Hub Area project, which is also an example of publicprivate-partnership (PPP). The project is intended to attract Baht 20 billion for railway transport, commercial buildings, metro lines and rapid transit bus hub covering an area of 372 hectares in northern Bangkok. 5 Bangkok, as a regional hub for trade and traffic and one of the world’s most attractive tourist destinations, is also at the centre of the current infrastructure projects in Thailand. The Bangkok Mass Transit system, which operates the city’s BTS “Skytrain” system recently announced that it would set aside Baht 60 billion for upcoming investments in the countr y’s rail system; it has signed purchase agreements for 46 new four-car trains, 22 of which will be provided by Siemens. The projects related to the implementation of new BTS “Skytrain” and MRT underground lines in Bangkok are tackling the impact of a growing population in Bangkok of currently almost 10 million people. 6 The appropriate management of a mega-city such as Bangkok requires a permanent symbiosis of the private and public sector in order to be able to face future challenges.
of Silom, Sukhumvit and Sathorn Roads, in the wake of mass transit expansion, are real estate market prices. Condominium developers are exploring areas where the BTS and MRT are expected to expand in the future. However, condominium developers are not the only ones who are attracted by the areas adjacent to future new mass transit lines; around the new mass transit infrastructure new clusters of businesses and industries are being born. Various ser vice businesses suppor ting transpor t maintenance at junctions and stations are being established, while other businesses responding to growing demand from new residents in the vicinity of new lines. Finally, tourism will expand to new urban areas. In Hong Kong, for example, service business revenue has over taken revenue from fares, making new rail projects profitable within a few years. This is one example of how government spending can induce economic growth. The expansion of Bangkok’s mass transit system will result in a ratio of routes-topopulation that is close to that of Tokyo. Bangkok as a hub for trade and traffic in the ASEAN region will become more attractive to investors as its inner connectivity improves.
The expectation that the mega-infrastructure projects, in par ticular the projects in the capital, will kick-start the country’s economy are well-grounded. Statistics show that countries with better infrastructure on average see a higher growth in GDP and per capita income. Regarding the regulatory framework in Thailand that applies to infrastructure and civil construction, the following laws should be considered: Private Investments in State Undertakings Act Land Code City Planning Act Building Control Act Building Construction Control Act Land Traffic Act Factory Act National Environmental Quality Act National Energy Policy Council Act Highway Act Provision of Land for Public Transportation Act Land Excavation and Land Filling Act Land Allocation Act Architect Act Engineer Act Industrial Estate Authority of Thailand Act Investment Promotion Act Ministerial regulations and other subsidiary legislation issued under the above law As all the above-mentioned infrastructure projects are being carried out in the form of PPPs it is important to take a closer look at Thailand’s PPP law. PPPs play a prominent role in the infrastructure projects in the whole country, and especially in Bangkok.
The growth of Bangkok’s population is reflected in a considerable increase in mass transit passenger numbers. Currently, the Skytrain, which now carries an average of 700,000 passengers per day, is constructing new lines. The extension of the Skytrain network will improve the life of commuters and guests in Bangkok and will change the character of huge parts of the city by way of urbanising residential areas on the outskirts of the city. One of the earliest indicators of this evolution of new urban areas outside of the prime areas 5 “Private 6
investment sought for transport hub”, The Nation, 23 April 2016. “Thailand to launch big infrastructure projects next year”, Pairat Temphairojana and Panarat Thepgumpanat, 30 November 2015, Reuters.
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