Transport projects ‘safe’ despite budget

Deputy Transport Minister Siripong Angkasakulkiat on Tuesday assured the House of Representatives that key transport and logistics projects would continue despite a budget cut of more than 23 billion baht.

Speaking on the second day of the House debate on the 2027 budget bill, Mr Siripong said that even though the ministry’s budget was reduced by about 8.8%, investment in infrastructure essential to economic growth and public transport would proceed.

He said transport infrastructure was not merely about construction but about making travel safer and more convenient while generating economic growth and raising national income.

The minister cited the Nakhon Phanom logistics centre as an example of how transport infrastructure boosts trade, saying exports through the route, particularly durian shipments to Laos, Vietnam and China, increased by more than 50% from a year earlier.

During the past eight months, exports through the route were valued at more than 70 billion baht, compared with imports worth about 30 billion baht, he said.

The figures showed that well-developed transport infrastructure not only improves connectivity but also strengthens the country’s competitiveness and trade balance, the minister said.

Responding to criticism that the ministry continued to prioritise road projects over rail, Mr Siripong said roads remained the backbone of the transport network and required maintenance.

Mr Siripong said rail projects would receive more than 119 billion baht, including state enterprise funding and loans, adding that rail development would rely on borrowing because the projects could generate revenue to service it.

He also explained the reduction of first-year budget commitments for major projects worth more than one billion baht from 15% to 10%, saying it was in line with criteria and actual disbursement rates.

Large infrastructure projects typically require time for preparation and contract signing, with first-year disbursements averaging only about 4%, he said.

On allegations about fixing procurement specifications to favour top-tier contractors, he said the criteria were set by the Comptroller General’s Department to ensure firms had the experience, equipment and capability to undertake large projects.

He said the list of these contractors was reviewed regularly based on performance and that PM Anutin Charnvirakul had ordered penalties for contractors that abandoned projects.