China-Thai railway deal: Really better than Yingluck's?

Rail project really aims to please China & breaks laws created to give Thai public control over government spending & projects.

COMMENTARY: TRANSPORTATION & FOREIGN RELATIONS

China-Thai railway deal: Really better than Yingluck's?

21/06/2017
Soonruth Bunyamanee

General Prayut's government gave the Chinese-Thai high-speed train project the green light last week. 

Allegedly to make the project run more smoothly and quickly, the military regime has invoked so-called special powers under Section 44 of the previous interim constitution that allow it to bypass existing laws.

Other ways to say this are: go around the law, sidestep the law, break the law, avoid the law, circumvent the law, detour around the law or waive the law.

LAWS ARE MADE FOR A REASON, SO WHY BREAK THEM?

Laws are made for a reason, so new laws that allow for breaking old laws, of course, raise many questions.

Why can't they just follow the old law?

If you break the law, why can't others break the law too? (double standard)

If you break the law now, won't others follow your example in the future? (setting a precedent)

Isn't Yingluck's train project better than Prayut's project, since Yingluck saw no need to break laws?

Questions of transparency and ethical violations have suddenly come to the fore.

SECTION 44 WILL ALLOW MILITARY GOVT TO BREAK NINE LAWS

Section 44 will allow the military regime to bypass laws that it claims are stumbling blocks (barriers, red tape) that hinder the project's progress.

Of the total nine laws to be sidestepped, seven were promulgated to ensure transparency and fairness in state procurement and two others involve the employment of foreigners in the project.

SECTION 44 HYPOCRISY: WHY HAVE LAWS, IF YOU DO NOT FOLLOW THEM?

It's ironic that a government that vowed to stick to accountability, transparency and good governance in all state projects from the first day it took office would ignore legislation and laws to accommodate Chinese operators.

Let's not forget that this very government suspended several state officials and politicians from duty for failing to comply with those seven laws.

If my memory serves me right, Gen Prayut always said everyone in the country falls under the same laws (rule of law).

RAIL SYSTEM BUILT WITH TAXPAYER, SO TRANSPARENCY FOR TAXPAYERS REQUIRED

The regime claims this high-speed train project has been developed under government-to-government (G2G) initiatives, for which there is no bidding process, and China is to be granted the train system development.

But the fact is the budget for the Bangkok-Nakhon Ratchasima rail project, which accounts for some 179 billion baht, is tax money paid for by the public, Thai tax payers.

Should tax payers not be guaranteed that their money be used transparently in a way that they can see and control?

The bypassed laws were the very tools used to ensure government transparency of expenditure.

We appreciate the regime's assurances that Thai engineers and architects will be allowed to take part in the project development for the sake of technological transfer.

But the issue of ethics and transparency is equally -- if not more -- important.

YINGLUCK PROJECT BETTER THAN MILITARY PROJECT FOR TRANSPARENCY & EFFICIENCY

The invocation of Section 44 prompts some people to compare the Prayut project to the one proposed by the Yingluck Shinawatra administration.

Like it or not, it's obvious the project proposed under the Yingluck government, which encompassed the same 256-kilometre route, seemed far better in terms of efficiency and transparency.

The Yingluck version, as handled by former transport minister Chadchart Sittipunt, would have cost 140 billion baht, against Gen Prayut's 179 billion.

Under the Yingluck administration, the rail track was included in a mega-infrastructure development package and proposed to parliament for consideration.

WOULD MILITARY PROJECT SURVIVE THE LEGAL CHALLENGES YINGLUCK PROJECT FACED?

As the Yingluck government lost the trust of the middle class, its 2-trillion-baht loan bill to finance the package was shot down by the Constitutional Court.

Anti - Corruption Organisation of Thailand (ACT) director Mana Nimitmongkol questioned through a Facebook post the government's waiving of the anti - hoarding law for this project.

He said hoarding activities in state procurements, if allowed to happen, are considered severe corruption.

TRANSPARENCY & INTERNATIONAL BIDDING OF YINGLUCK PROJECT

The difference between the train project of this government and that of Yingluck's is that the previous administration's project was open to all legal examination mechanisms.

It also included international bidding, which would provide the country with the best offer price for the rail project.

Mr Mana pointed out that major transport infrastructure projects need thorough study and careful management for the sake of transparency and long-term worthiness.

MOVING TOWARDS CHINA AFTER WESTERN CRITICISM OF 2014 COUP

I have tried to understand why the government decided to use its special powers to overrule nine laws to push the project forward, and have found the move acceptable or easy to understand in some ways.

Following the 2014 coup, Thailand found itself isolated by some Western countries such as the US.

China, in an attempt to expand its influence in Asean and fill the gap left by the United States, showed a friendlier response to the military coup.

As a result, the Prayut government has become more dependent on China.

The Prayut government actually granted the whole 615-km Bangkok-Nong Khai rail project to China way back in late 2014.

NOT FORGETTING WHY THE CHINA-THAI RAIL PROJECT DID NOT MOVE FORWARD

However, Thailand's negotiating the rail project with China did not proceed in as friendly a manner as expected.

The project was delayed by almost three years due to disagreement between Thailand and China over key issues.

CHINA DEMANDED RIGHTS TO THAI LAND ALONG THE RAIL LINE

Key hurdles included China's demand to hold land rights along the route for commercial purposes.

This, of course, was rejected by the Thai government to whom Thai possession of rights over Thai land is a somewhat sacred legal principle.

China also turned down Thailand's request to bring down the interest rate to help finance the project.

Another issue that hindered the project is the issuing of professional licences for 300 Chinese engineers working on the project.

PROJECT WAS TO BE SCRAPPED DUE TO FAILED NEGOTIATIONS

In fact, the rail project was to have been scrapped due to failed negotiations.

The rail project was retained only because the regime wants to keep it as a symbol of Thai-Chinese cooperation.

The government decided to finance the project using the national budget and to shorten the route to Bangkok-Nakhon Ratchasima during the first stage.

China will carry out some construction works, and the selling of equipment, materials, trains and signalling systems for the project.

RAIL PROJECT REALLY AIMS TO PLEASE CHINA

What is touted as Thai-Sino cooperation exists only in name.

In practice, it is tantamount to Thailand hiring Chinese operators to develop a system at a high cost, especially compared to prices international bidding would (and have) yielded.

It is believed the Prayut government has maintained this project in an effort to please China,

The regime likely hopes that Thailand will remain on Beijing's radar and can benefit from China's One Belt, One Road initiative, as well as other regional economic development schemes.

RESTORE TRUST WITH THAI PEOPLE SHOULD BE FIRST PRIORITY

It may seem justifiable for the regime to accelerate the project.

But it is necessary that the regime restores trust among citizens, particularly to ensure transparency and accountability when the laws that govern transparency are voided.

http://www.bangkokpost.com/opinion/opinion/1272699/thai-sino-rail-cooperation-is-in-name-only

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