Date: February 8, 2010

The government is reportedly looking to withdraw its bill to allow the Ministry of Finance’s borrowing for the second phase of Strong Thailand scheme, which will in effect halt a number of mega-projects prepared by the Democrat party’s coalition partners.

According to a report from the Government House, Prime Minister Abhisit Vejjajiva, Deputy Prime Minister Trairong Suwankiri, Finance Minister Korn Chatikavanij and Secretary-General for Prime Minister’s Office Korbsak Sabhavasu have agreed to cancel a number of projects under the second phase of Strong Thailand scheme, which have a total value of several hundred million Baht.

The projects are mostly those under ministries controlled by the Democrat’s coalition partners such as Bhumjaithai’s Ministry of Transport, Chart Thai Pattana’s Ministry of Agriculture and Cooperatives and Social Action’s Ministry of Natural Resources and Environment, according to the report.

Some of the projects expected to be halted include the Department of Rural Highways’ dustless road project, the Ministry of Transport’s airport development plan, the agricultural irrigation project, irrigation system restoration project, and plan to build dams and reservoirs to prevent flood.

The projects will be funded once the bill to allow Ministry of Finance to borrow has been passed. Currently under the consideration of a joint commission of the two houses, the draft is expected to fail in the houses and the government fears it will lead to collapse of the coalition.

A survey on the members of the two houses has shown the bill will likely be rejected.