Budget bill to get green light on Thursday with some corporations standing to benefit

The revote on the 2020 budget bill is expected to sail through the parliament this week, said a Maybank Kim Eng Securities expert on Wednesday.

Parliament speaker Chuan Leekpai has called for a meeting Thursday for a revote on the budget after the Constitutional Court ruled the body could be allowed to do so.

“The revote will be successful,” said Maria Lapiz, Managing Director of Maybank Kim Eng Securities in Thailand. “After this it goes to the Senate for a re-stamp as they have already voted on this and then on the Royal Gazette for official publication,” she added.

The lower house speaker said yesterday that the opposition can re-debate the bill “But people watching will know what its intentions are”.

Lapiz said that the 3.2 trillion baht budget “is going to be ready” for disbursement in a week’s time.

It is believed that the first projects to be funded are the stalled projects that have been on hold since the end of last year.

For new initiatives, at least three projects may receive their advances in the next three to five months and begin to roll out “immediately”, she added.  These include the high-speed train linking the three international airports.

The Charoen Pokphand (CP) Group won the consortium for the 225 billion baht rail project linking Suvarnabhumi, Don Mueang in Bangkok and U-Tapao airports.

The CP-led consortium includes China Railway Construction Corporation, Bangkok Expressway and Metro, Italian-Thai Development, Ch. Karnchang and Japan Overseas Infrastructure Investment Corp for Transport and Urban Development.

Another project that may receive priority funding is the 12 sections of the Thai-Chinese high-speed train project. The Belt and Road’s main project in Thailand is divided into two phases. The first phase covers a 125 billion baht high-speed rail project with a distance of 252.5 kilometers from Bangkok to Nakhon Ratchasima.

The second phase is the 355 km stretch from Nakhon Ratchasima to Nong Khai which will connect with the BRI project in Laos. The latter phase is worth 200 billion baht and the Thai government is working with China’s State Railway Group on this one.

So far, only the first 3.5 km of the Sino-Thai rail has been constructed in Nakhon Ratchasima. The Transport Ministry said the first section should be completed by 2022.

The last project that will benefit from the passing of the budget bill is the development of the U-Tapao airport.

“Overall, this is positive news,” Lapiz said.  

She added that listed companies that could participate in the three projects that have been mentioned include STEC, CK, BEM, ITD and SCP.

For the construction group, it would be SCC and SCCC who produce ready-mixed concrete and the latter sells sand as well. TPIPL may also stand to benefit.

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