May 15, 2008

Rising prices push Thailand’s transit-project costs up

BANGKOK

Rising labour, concrete, steel and materials prices could push cost estimates for Thailand's planned mass-transit projects up as much as 20 per cent, reports the Bangkok Post.

Thailand's finance ministry officials said that even though costs are expected to increase over original projections, the benefits from the projects are also likely to be higher as a result of greater savings from reductions in oil imports, traffic congestion and lost economic activity.

The government has approved the construction of nine new mass-transit routes in Greater Bangkok for a preliminary budget of US$24.1 billion.

Many of the construction plans can be traced back earlier in the decade, when oil and basic materials prices were considerably lower than today.

Officials hope that higher investment and operating costs will be offset by higher rates of return, as ridership rises.

DCN News Services

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