Question about Samak's Government Financing Mega-Projects

Question about Samak's Government financing mega-projects

Posted by Tawan , Reader : 251 , 14:49:46
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I have a question about the financing of the Samak’s Government 500 Billion Baht mega-projects. The news reports that foreign participation is required to finance the mega-projects and thus the Finance Minister Dr. Surapong needs the capital controls to be lifted.

My question is what does foreign participation mean and how is it financed?
Surely, the financing of the mega-projects does not mean the traditional raising of taxes to pay for the municipal bond debt or will the return on investment in the infrastructure be enough without raising taxes?

Does foreign participation mean loans from the IMF or World Bank? Exactly who will provide the loan?

Or does foreign participation mean investors? Will the financing require municipal bond Wraps from monoline insurers like Ambac Financial Group allowing the bonds to be sold in the global marketplace? If so given today’s investment climate, which investor would be interested after Moody’s and others downgraded to negative watch 170,000 munis in the USA alone.

Maybe, foreign participation was defined somewhere and I missed it. I would like to see the mega-projects successful just curious about the details.