Investment-Grade Composite Spread Tightens To 209 Basis Points

Standard & Poor's investment-grade composite spread tightened yesterday to 209 basis points (bps), while its speculative-grade counterpart compressed to 653 bps. By rating, the 'AA' and 'A' spreads tightened one basis point each to 144 bps and 180 bps, respectively, and 'BBB' tightened 3 bps to 264 bps. The 'BB' spread tightened 5 bps to 484 bps, 'B' compressed 6 bps to 654 bps, and 'CCC' tightened 15 bps to 1,040 bps.

By industry, financial institutions, banks, and industrials tightened 4 bps each to 366 bps, 288 bps, and 336 bps, respectively. Utilities and telecommunications followed, tightening 2 bps each to 212 and 318 bps, respectively.

Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recessionary period.

NIIT Technologies partners with Hitachi Information Systems to offer Cloud computing services

NIIT Technologies Limited, a leading global IT solutions organisation announced its partnership with Hitachi Information Systems, Ltd, a leading provider of IT infrastructure services in Japan, to offer services in cloud computing.


Cloud Computing is an emerging megatrend which is standardized, IT capability delivered via the Internet in a pay-per-use and self-service manner. NIIT Technologies pursuing its non linear services model of business will be an early entrant in this space. Through this partnership NIIT Technologies and Hitachi Information Systems will provide unmatched value based on the strengths of both companies.

“Hitachi with its reliable and scalable infrastructure would own the cloud, while NIIT Technologies will harness it’s competencies and world class process capability in Remote Infrastructure Managed Services to operate the cloud” said Mr. Arvind Thakur, CEO, NIIT Technologies Ltd. “Together our customers will experience the highest quality of reliability, security and service” he added.

With Cloud Computing gaining impetus, both companies will be able to offer the complete portfolio of services around the cloud infrastructure to cater to the changing IT landscape.

“Abundant IT business experience of NIIT Technologies in global markets and Hitachi Information system's data center design & operational experience in Japanese market over many years are now united. This union will be used to provide advanced IT service in Asia.” said Mr. Iwao Hara, President and CEO, Hitachi Information Systems Ltd.

To begin with Hitachi Information Systems would leverage NIIT Technologies data centre in Bangkok and create the first hub outside Japan networked to their existing infrastructure. Drawing on the benefits of scale, shared infrastructure and standard applications, this partnership will drive down costs while increasing the speed and agility of deploying applications.
The operations are expected to begin by the first quarter of the next fiscal.

SC Asset launched 3 new projects in Q4 Y2009 and its “SC Parade” the privilege campaign to be held on November 2009.

SC Assets announced its latest investment of over 1,300 million Baht to develop 3 new high-end projects , for serve the housing demand in 4Q Y2009. The three new 2009 series are “Bangkok Boulevard Kaset-Navamintra”, a luxurious 3-story detached housing project; “Life Bangkok Boulevard Ratchavipha”, a stylish 2-story detached housing project; and “Work Place Ratchada-Ramindra”, a special-designed home office project. In addition, it will also launch “SC Parade” the privilege marketing campaign on November 8, 2009, which is expected the total sales revenue of more than 300 million Baht.


Mr. Kree Dejchai, Chief Operating Officer, SC Asset Corporation Pcl.,discloses about the company’s project development plan in Q4 Y2009 that SC Asset will continually plan new project developments in accordance with its 2009 operating plan. Highlights will mainly be with projects on high potential locations in all market segments, including high rise and low rise. The company has a plan to launch 3 new projects with a combined value of over 1,300 million Baht.

1.“Bangkok Boulevard Kaset-Navamindra”, The luxurious 3-story detached housing project, which is located on an 18-rai plot of land on Ladplakao Road, will have a combined value of 740 million Baht. Developed under “Modern City Resort Style” concept to allow its urban residents to stay closer to the nature, the project will have only 74 units. With a starting price of only 10.9 million Baht, each unit will have four bedrooms, 5 restrooms, green room and family room to serve the lifestyle of each family member – all within a combined usable area of approximately 260 SQM. The project is most outstanding in its prime location, which is right on main road and well connected to various routes, e.g. Ramindra, Kaset-Navamindra and Paholyothin. It is fully equipped with basic facilities and infrastructure, swimming pool, Wi Fi fitness center and safe with triple security system.

2.“Life Bangkok Boulevard Ratchavipha”, The stylish 2-story detached housing project, which is outstandingly located on a 16-rai plot of land right on Pibulsongkram Road, will have a combined value of 450 million Baht. Developed under “Modern Life in Urban Natural” concept, the project will have only 69 units. With a price range of 5.9 – 8 million Baht, each unit will have 3 bedrooms, 3 restrooms, living room, dinning room and separate drawing room, all within an area of 50 square Wah onwards. Designed to be airy and spacious, all units will come with curtain wall windows to allow its residents to absorb a full natural feeling of its landscape. Project facilities include a luxurious club house, swimming pool, green garden and Wi Fi fitness center.

3.“Work Place Ratchada-Ramindra” , The luxurious home office is the only project of its exclusive in Ratchada-Ramindra, which is Bangkok’s top potential location and future business center. Located on a 4-rai plot of land right on main road, it will have only 20 units and a combined value of 180 million Baht. With a starting price as low as 8 million Baht, this 4-story home office will be 6 meters wide. Designed to be both airy and spacious in order to maximize its business potentials, it is, however, planned in a Privacy Cluster Zone to optimize privacy. With a common parking lot able to accommodate 50+ cars, the project is safe and sound with access card control system. It is conveniently networked with many main routes, e.g. Kaset-Navamindra, Ramindra, Sukapiban 1-2, West Outer Ring Road and Ekamai-Ramindra Express Way.

Besides the three new projects launching, SC Asset will be held the marketing activities in order to stimulate consumer purchasing power. It is launching “SC Parade” campaign on November 8, 2009, which is a complete showcase of its eight quality projects featuring detached houses, townhomes, and condominium. These projects, which will either open its new phases or new designs and functions, will be accompanied by very privilege offers namely “SC Package to visit the 8 Wonders of the World” The campaign is forecasted to generate many visitors and the total sales revenue of over 300 million Baht.

The eight quality projects include (1) Grand Bangkok Boulevard Ratchada-Ramindra with prices ranging from 15 – 25 million Baht (2) Bangkok Boulevard Rajapruek-Rama V with prices ranging from 17 – 30 million Baht (3) Life Bangkok Boulevard Petchkasem 81 with starting price of 5 million Baht, (4) Vista Avenue Petchkasem 81, 2-story townhome with starting price of 2.4 million Baht (5) Vista Avenue Petchkasem 81, 3-story townhome with starting price of 2.99 million Baht (6) Vista Park Changwattna, 3-story townhome with starting price of 3.99 million Baht (7) Centric Scene Ratchavipha, newly conceptualized condominium with prices ranging from 2.5 – 5.55 million Baht and (8) Centric Scene Sukhumvit 64 with starting price of 2.8 million Baht.

Mr. Kree Dejchai further adds that as all projects, launched within the year, have been well achieved which is quite confident that the market would warmly welcome the three new projects as it had in the past. With outstandingly new designs and functions, high potential locations, competitive prices, rising demands, as well as the project’s value-for-money offering, it is expected that the new 2009 series would deliver satisfactory result and that the company would achieve its projected plan and targets.

Stoppage hits Glow's Q3

       The SET-listed power producer Glow Energy saw earnings slow in the third quarter due to a one-month maintenance closure of one of its plants.
       Two factors caused its normalised net profit to drop to 899 million baht in the third quarter, down by 274 million from the second quarter, the company said in its statement.
       Reduced power output due to a onemonth maintenance closure at its 150 MW coal-fired station affected te thirdquarter performance.
       The quarter's results also weakened as Glow had not booked the business interruption liability for a stoppage earlier this year at the 150 MW station.
       Output is expected to return to normal in the final quarter as there are no more major maintenance stoppages scheduled until late 2011. The company also plans to book the remaining business inter-ruption claim of more than 100 million baht in the fourth quarter.
       Glow reported sales of 26.6 billion baht over the first nine months, up 3.3%year-on-year from 25.7 billion. But its net profit fell by 5% from the same period last year to 3.04 billion baht.
       Chief executive Esa Heikanen said higher interest payments of 705.5 million baht, up from 605 million last year, from increasing project finance caused the weaker performance. Fuel costs also rose by 2.8% for natural gas and 1.8% for coal.
       However, Mr Heikanen said that performance declined at a slower pace than the rise in costs, thanks to revitalised sales to industrial customers.
       Shares of Glow closed yesterday on the Stock Exchange of Thailand at 33 baht, up 3 baht, in trade worth 41.53 million baht.

Magnificent seven

       In the most important, most revered event since the invention of the brontosaurus trap,Microsoft shipped the most incredibly fabulous operating system ever made; the release of Windows 7 also spurred a new generation of personal computers of all sizes at prices well below last month's offers.The top reason Windows 7 does not suck: There is no registered website called Windows7Sucks.com
       Kindle e-book reader maker Amazon.com and new Nook e-book reader vendor Barnes and Noble got it on; B&N got great reviews for the "Kindle killer"Nook, with dual screens and touch controls so you can "turn" pages, plays MP3s and allows many non-B&N book formats, although not the Kindle one;Amazon then killed the US version of its Kindle in favour of the international one, reduced its price to $260(8,700 baht), same as the Nook; it's not yet clear what you can get in Thailand with a Nook, but you sure can't (yet) get much, relatively speaking, with a Kindle;but here's the biggest difference so far,which Amazon.com has ignored: the Nook lets you lend e-books to any other Nook owner, just as if they were paper books; the borrowed books expire on the borrower's Nook in two weeks.
       Phone maker Nokia of Finland announced it is suing iPhone maker Apple of America for being a copycat; lawyers said they figure Nokia can get at least one, probably two per cent (retail) for every iPhone sold by Steve "President for Life" Jobs and crew via the lawsuit,which sure beats working for it -$6 (200 baht) to $12(400 baht) on 30 million phones sold so far, works out to $400 million or 25 percent of the whole Apple empire profits during the last quarter;there were 10 patent thefts, the Finnish executives said, on everything from moving data to security and encryption.
       Nokia of Finland announced that it is one month behind on shipping its new flagship N900 phone, the first to run on Linux software; delay of the $750(25,000 baht) phone had absolutely no part in making Nokia so short that it had to sue Apple, slap yourself for such a thought.
       Tim Berners-Lee, who created the World Wide Web, said he had one regret:the double slash that follows the "http:"in standard web addresses; he estimated that 14.2 gazillion users have wasted 48.72 bazillion hours typing those two keystrokes, and he's sorry; of course there's no reason to ever type that, since your browser does it for you when you type "www.bangkokpost.com" but Tim needs to admit he made one error in his lifetime.
       The International Telecommunication Union of the United Nations, which doesn't sell any phones or services, announced that there should be a mobile phone charger that will work with any phone; now who would ever have thought of that, without a UN body to wind up a major study on the subject?;the GSM Association estimates that 51,000 tonnes of chargers are made each year in order to keep companies able to have their own unique ones.
       The Well, Doh Award of the Week was presented at arm's length to the United Nations Conference on Trade and Development; the group's deputy secretary-general Petko Draganov said that developing countries will miss some of the stuff available on the Internet if they don't install more broadband infrastructure; a report that used your tax baht to compile said that quite a few people use mobile phones but companies are more likely to invest in countries with excellent broadband connections; no one ever had thought of this before, right?
       Sun Microsystems , as a result of the Oracle takeover, said it will allow 3,000 current workers never to bother coming to work again; Sun referred to the losses as "jobs," not people; now the fourth largest server maker in the world, Sun said it lost $2.2 billion in its last fiscal year; European regulators are holding up approval of the Oracle purchase in the hope of getting some money in exchange for not involving Oracle in court cases.
       The multi-gazillionaire and very annoying investor Carl Icahn resigned from the board at Yahoo ; he spun it as a vote of confidence, saying current directors are taking the formerly threatened company seriously; Yahoo reported increased profits but smaller revenues in the third quarter.
       The US House of Representatives voted to censure Vietnam for jailing bloggers; the non-binding resolution sponsored by southern California congresswoman Loretta Sanchez said the Internet is "a crucial tool for the citizens of Vietnam to be able to exercise their freedom of expression and association;"Hanoi has recently jailed at least nine activists for up to six years apiece for holding pro-democracy banners. Iran jailed blogger Hossein "Hoder" Derakshan for 10 months - in solitary confinement.

The saga drags on

       The National Telecommunications Communications (NTC) finally confirmed that a lot of people have a lot of interest in thirdgeneration (3G) yuppiephone service,and not very many of them have kind thoughts about the regulators; about 1,000 people from the phone companies,financial advisers and phone suppliers showed up for what the NTC would be the one and only public hearing on its plans to auction and regulate 3G services;not so fast, said the private business leaders, such as Athueck Asvanont, who is chairman of vice at True Move ; he explained to the NTC that the constitution (Article 84-1) bans the government from competing with telecoms firms,and what are AIS (of Shingapore) and DTAC (of Norway) but foreign state companies?; then the lawyers took a crack at the commission, explaining that it is actually illegal for the NTC to get involved in 3G, because it is a matter for the National Broadcasting Commission, which doesn't exist yet - and any action by the NTC could be overturned by a court decision, sinking 3G even further behind high technology countries like Laos and Cambodia.
       For those who missed it, lawyer Wirot Poonsuwan wrote an excellent review in a certain daily newspaper of the dogand-pony show known as 3G licensing and operation; it is online at www.bangkokpost.com/business/telecom/24707.
       The Energy Ministry announced field tests on biodiesel B10 fuel will soon begin, supervised by PTT and the ministry's own Department of Energy Business; if everything goes as expected,the new fuel could win approval as soon as early next year; B10 is 90 percent regular diesel and 10 percent methyl ester, produced from palm.
       Your CAT Telecom is no longer a long-distance telephone company, it is an "integrated wireless services provider"; so says your CAT president Jirayuth Roongsrithong, who figures the state enterprise can boost income by spreading out a bit here, tweaking a bit there, and reap the benefits of broadband Internet; but what CAT really is waiting for is issuing licences for thirdgeneration phones, because broadband services will really grow, then; Mr Jirayuth predicted CAT will gross 52 billion baht by the end of the year, even though international call income is certain to slide again.
       The Metropolitan Electricity Authority slogged along on its lonely quest to bury power lines in Bangkok; all it has to do is to coordinate with City Hall, telecoms firms and mass-transit operators; MEA governor Pornthape Thunyapongchai noted the "poor city development plan" of previous Bangkok administrators; for now, the only underground power lines are around the Grand Palace and along Silom Road;the MEA is trying to herd the cats into a 3-billion-baht plan to bury wires along Phaya Thai, Sukhumvit and Phahon Yothin, and their sois.
       Taiwanese smartphone maker HTC Corp said flatly it would capture a quarter of the Thai smartphone market volume and value - by New Year's Eve; country manager Nattawat Woranopakul figured it would be easy to sell about 100,000 of the phones Thais will buy this year, and grow HTC revenues by 20 percent to 1.8 billion baht; overall,he expects Thais to buy 10 million yuppiephones for 27.9 billion baht - a huge drop from the record 47.3 billion baht in 2006; part of the reason for the drop is falling phone prices, with the cost of smartphones this year alone dropping from a 2008 average of 16,000 to 12,000 baht.
       The company formerly known as Philips of Holland, now called China Electronics Corp (CEC) of Shenzhen,vowed to make a comeback in the Thailand yuppiephone market and get into the world Top 5 again by 2014; Philip Lee, who handles overseas affairs for CEC subsidiary Shenzhen Sang Fei Con-sumer Communications, predicted confidently he would double sales in Thailand and globally this year, selling six million phones in total; Philips sold the phone business to the Chinese firm in 2007.
       Entertainment giant GMM Grammy signed a deal with Chunghwa Telecom of Taiwan to provide Thai and other Asian workers to download music from the Internet trough their phones; managing director Surachai Sensri of GMM International was so devastated by all that homesickness by the 350,000 immigrant workers in Taiwan that he decided to cash in on it with music from the homeland; the exclusive deal allows Grammy to provide a "buffet service"of continuous music for the equivalent of 52 baht a month, and Grammy also expects to get streaming rights to Vietnamese and Philippines music for the service.
       Thailand crunched the numbers on a single production base for the electrical and electronics industry in Southeast Asia - and gave a big smile; eliminating all import tariffs and facilitating trade with the Asean Free Trade Area (Afta)will give a big boost to the Thai industry;Charuek Hengrasmee, president of the Electrical and Electronics Institute, and Katiya Greigarn, chairman of the Electrical, Electronics Industry Club at the Federation of Thai Industries, noted the currently strong position of Thailand in the making of hard drives and electrical appliances - air conditioners,refrigerators and microwaves, say and figured that in international eyes,Thailand will be "the manufacturing centre of the region."

PM puts Grandma on a Hai

       Wearing a brown sarong, dark blue long-sleeved shirt and white flowers in her hair, Hai Khanjantha knew yesterday was her happiest day.
       Grandma Hai was up early in the morning to prepare for her meeting with Prime Minister Abhisit Vejjajiva, who travelled from Bangkok to hand over a compensation cheque for 1.2 million baht to her.
       In return, she gave an unfinished bamboo basket to the prime minister, saying it represented the many problems of the poor still to be addressed by his government.
       "I have waited for this happy moment for 32 years. I will pay off my 400,000 baht debt and spend the rest buying land for my children," she said after receiving the cheque.
       Grandma Hai has 10 children, 60 grandchildren and 25 greatgrandchildren.
       The handover ceremony was held before hundreds of northeastern farmers at a learning centre in Phibun Mangsahan district of this northeastern province.The centre is also the northeastern head office of the Assembly of the Poor.
       A member of the assembly, Mrs Hai is one of the three farmers to whom the cabinet last month approved a grant of 4.9 million baht compensation after they had fought to reclaim their 61-rai submerged paddy fields from construction of the Huay La Ha reservoir at Na Tan village at Phibun Mangsahan district.
       The other two are her late husband,Fong, and her late elder brother-in-law Sua Pankham.
       The reservoir was built when Gen Prem Tinsulanonda was prime minister.The government did not seek her consent or ask how the farmers were likely to be affected. After construction, the land was submerged immediately, which resulted in them being unable to grow rice for nearly three decades.
       Mrs Hai said she and the other farmers had asked many government agencies for help but no one offered a solution.
       "I lost tears to the land battle. It is such a painful memory. I don't want to see other people facing the same problem," she said.
       After being ignored, Grandma Hai dug a hole in the crest of the reservoir to reclaim her submerged land.
       She regained her paddy in 2004 when the Thaksin Shinawatra government intervened and demanded state agencies look into her case.
       They concluded that she had never given her consent for the dam and should be compensated."Even though my family have now been paid, we will not let our brothers and sisters in the Assembly of the Poor fight alone," she said.
       Petch, 36, Mrs Hai's daughter, who received the 1.3 million baht cheque on behalf of her late father, said she fought with her mother to reclaim the land when she was aged only four, and knew just how much her mother had struggled during that difficult time.
       "Our family relied on the paddy as its main source of income but when the paddy fields were inundated we did not know what to do," said Mrs Petch, who quit school at Mathayom 3(Grade 9)because her mother had no money to support her.
       The mother of two children said she intended to put some money aside for the education of her children.
       The prime minister also pledged to help the other 16 farmers affected by construction of the Huay La Ha reservoir.

BMA cleared of negligence in BTS dispute

       The Administrative Court has cleared the Bangkok Metropolitan Administration and three other defendants of any responsibility in not providing suitable facilities for disabled people at skytrain stations.
       The case went to court in September 2007 when Suporntham Mongkolsawat,the secretary-general of the Council of Disabled People of Thailand, and two others filed a lawsuit naming the BMA,the Bangkok governor, the chief of the Civil Service Commission which comes under the BMA and Bangkok Mass Transit System Plc as defendants.
       The four were accused of neglecting their duty by not setting up proper facilities for disabled people, such as lifts and ramps, and providing other facilities.
       The BMA granted the concession to run the skytrain to BTS.
       Hundreds of disabled people attended the court yesterday to hear the verdict.
       The court ruled that although the Rehabilitation of Disabled Persons Act was enacted in 1991, a year before construction work began on the skytrain, there was no regulation at the time demanding that special facilities be installed for disabled people in buildings, public places and the transport sector.
       The Interior Ministry issued the appropriate regulation after the con-struction of the skytrain had begun.
       The court said the BMA fulfilled its duty later by installing elevators for disabled people at five of the most crowded stations -Asok, Onnuj,Chong Nonsi, Mor Chit and Siam Square - in 1999.
       This showed the BMA was not neglecting its duty, the court said.
       Mr Suporntham said he would lodge an appeal against the Administrative Court ruling with the Supreme Administrative Court on behalf of all networks for disabled people.
       The fight was to ensure equality for disabled people and to encourage government agencies and the private sector to pay more attention to the problems of the underprivileged, the elderly,children and pregnant women, he said.
       Mr Suporntham said even though there were many programmes to help disabled people, they were of no use if disabled people were unable to venture out of their homes because of poor facilities.
       All networks of disabled people would be asked to conduct a survey and circulate pictures of public places lacking in suitable facilities, he said.
       "All humans are born free but the disabled are being deprived of their freedom by a disabled-unfriendly environment," he said."To use the BTS is more difficult than taking a plane and flying overseas these days."
       Udomchok Churut, president of the Independent Living Pilot Project in Thailand, a non-governmental organisation supporting disabled people, said five disabled-friendly stations were not enough to help disabled people use the entire skytrain network.

Grandma Hai wins B1.2m in damages

       Eighty-year-old grandmother Hai Khanjanta is being awarded 1.2 million baht in compensation after having fought for 30 years to reclaim her land after the construction of a dam.
       The cabinet has agreed to pay Mrs Hai, Sua Khamphan and Fong Khanjanta a combined 4.9 million baht for their opportunities lost during the dam construction.
       Mr Sua will receive 2.4 million baht and Mr Fong 1.3 million baht.
       Mrs Hai opposed the building of Huay Ra Ha dyke from the very start of the project in 1977. The dam, built to provide drinking water to Na Tan district of Ubon Ratchathani, flooded her farm at Ban Non Tan.
       She and other villagers had their land returned after former prime minister Thaksin Shinawatra ordered the demolition of the dam in 2004. However, no compensation was paid to affected residents to rehabilitate their paddy fields.
       Yesterday's cabinet approval for the financial compensation did not come easily.
       PM's Office Minister Sathit Wongnongtoey said some state agencies argued that the payments would set a precedent for other groups to claim compensation.
       "Some state agencies said this case would set a precedent for other affected groups [to claim compensation from the state]," Mr Sathit said."But we don't think so because there will be no other dams that will be ordered demolished by the state."
       Mrs Hai praised the Democrat-led government for paying attention to the plight of the poor.
       She was glad the government had addressed the problems raised by the Assembly of the Poor.
       The woman, who joined the assembly to fight for her land, said past governments had ignored the problems of rural poor.
       Asked whether the amount was enough for her family, she said it was not huge as she had fought for 32 years to receive justice.
       But she insisted she would not make further demands.
       She said she would give the money to her children.

RAIL-LINK LAUNCH NOT DELAYED BY PHEU THAI COMPLAINTS, SAYS SRT

       The State Railway of Thailand (SRT) is insisting the launch of the airport-link service will not be delayed by the opposition Pheu Thai Party's complaints about the premier and the interior minister allowing conflicts of interest in the project.
       Suphoth Sublom, an SRT board director, said yesterday the project had made a lot of progress and the civil construction work was complete. The SRT is expected to officially start testing the system on December 5, which will run for three months. The service will be officially launched in April.
       On Monday, a Pheu Thai MP filed a complaint with the National Anti-Corruption Commission saying that Prime Minister Abhisit Vejjajiva and Interior Minister Chaovarat Chanweerakul had allowed conflicts of interest in the project because Chaovarat's family members held shares in a construction company.
       Pheu Thai's Lamphun MP Sanguan Pongmanee and the party's spokesman Prompong Nopparit claimed that Chaovarat's wife and children held shares in Sino-Thai Engineering and Construction, which won the Bt408-million project contract for adding more trimmings to the rail link. The Cabinet had approved the budget on March 10.
       Chaovarat, also leader of Bhum Jai Thai Party, argued he had already declared his assets and has had nothing to do with the company for a long time now.
       Moreover, he said, since Sino-Thai was a public company, anybody could buy its shares and as his children were all adults, they could do what they wanted with their money.
       On March 10, the Cabinet approved the Transport Ministry's request for an additional Bt115 million to hire a consultant to supervise the construction of elevated paths linking the Phya Thai Skytrain station and the Petchaburi subway station to the airport-rail link at Makkasan. This is part of the connection between airport-rail link and the SRT transportation system in the city.
       It also approved Bt11 million and Bt87 million for the construction of the paths from Phya Thai station and Petchaburi subway station respectively.
       The government will cover the cost of the construction, which should be completed in 15 months.
       The Cabinet also approved the expenditure of Bt195 million for the services of an independent safety and system certification engineer for three years. The government will be responsible for this cost as well.
       The Cabinet has acknowledged the relocation of public facilities near the airport-rail link, which would cost Bt140 million. The Metropolitan Water Works Authority and the Metropolitan Electricity Authority each will be responsible for relocation costs of Bt83 million and Bt57 million, respectively.

DUST-FREE ROADS PROJECT ROLLS ON WITH E-AUCTION BIDS

       The Rural Roads Department is moving ahead with the first phase of its national sealed road project by taking bids via e-auction.
       The e-auction opened on September 8. The second round will be held today and the last on September 21.
       Vicharn Kunakoolsawad, director-general of the department, said yesterday the department expects to ink agreements with the bid winners on September 23.
       The first phase covers 3,246 kilometres on 901 roads with a budget of Bt14.83 billion, including consulting fees. The work is expected to be complete in the upcoming fiscal year.
       The department will construct other phases including 1,983.5 km for Bt1 billion each in 2011 and 2012.
       "More than 700 contractors have been registered by the department. We want to allow the public to crosscheck the quality and safety of the projects," Vicharn said.
       The government initiated the dust-free road project to create about 70,517 jobs as well as to push its income distribution policy.
       It is also expected to save Bt683 million in public health spending caused by dust, Bt484 million in car maintenance costs and Bt5.67 billion per year in fuel consumption by rural people.

PLAN TO TACKLE LITTER BUGS IS A GOOD MOVE

       People who discard garbage in public places to face fines from next month; provinces should follow suit The city administration has revived a campaign against littering in public places. Since the beginning of this month, pedestrians, commuters and motorists have been warned against discarding garbage in public places. And starting on October 1, offenders will be fined Bt100 for each offence and the fine will be increased after three months, according to Deputy Bangkok Governor Thirachon Manomaipiboon.
       The Public Cleanliness and Orderliness Act of 1992 sets a maximum fine of Bt2,000 for littering on the road and Bt10,000 for throwing garbage into a waterway. There has been headlines at times when foreign tourists were fined for dropping cigarette butts on the street, but the law has rarely been enforced.
       Thirachon warned that city officials may use megaphones to humiliate litterbugs publicly. The tactic was employed when a city-wide campaign against littering was last carried out during the governorship of Bhichit Rattakul about a decade ago. Some Bt5 million in fines were collected from litterbugs at that time.
       Fining is done by officials from the Bangkok Metropolitan Administration's City Law Enforcement Department, who are known in Thai as "tamruat tessakit", and not by police. The "municipal police" will get half of the fines.
       Strict enforcement of the anti-littering law will initially begin at major landmarks and main thoroughfare in all 50 districts of Bangkok.
       Bangkok streets are cleaner than they were a few decades ago. In many areas, most of what is strewn on pavements is dead leaves falling from roadside trees.
       Visitors from some neighbouring countries express amazement that Bangkok's pavements are mostly free of litter. Possible explanations are that city street sweepers are efficient and most local residents are less inclined to throw garbage out. The actual reason may be one of these or both of them.
       But there are still places badly strewn with litter, namely Sanam Luang and the Victory Monument, where several thousands of people travel by, wait for buses and sell things. They are among the most littered places in the city and will be among the locations where the anti-littering law will be strictly enforced.
       While pavements are generally clean of litter, pedestrian flyovers and canals are often strewn with discarded objects. Garbage is carelessly dumped on unused land in areas deeper into lanes. The city authorities should also focus on these areas in the next stage of strict law enforcement.
       It is really difficult, if not impossible, to make a city of more than 10 million inhabitants be perfectly clean of garbage. However, at least this new campaign is a good beginning towards a cleaner Bangkok. It is an efficient way to discourage people from throwing garbage carelessly.
       Strict enforcement of the public cleanliness law should not be limited just to the capital either. Authorities in the provinces must also make use of the law to keep their public places clean.
       Citizens should also be educated about public discipline and social responsibility, at which many Thai people are poor. Such education should start at a young age and schoolchildren should be instilled with the benefit of cleanliness and orderliness, both at home and in public places.

Infrastructure in Bangladesh ranks among worst

       Infrastructure in Bangladesh ranks among the worst in the world, ranking 126th among 133 nations, according to the Global Competitiveness Report 2009-10.
       Bangladesh ranked 122nd out of the 134 countries surveyed last year.
       However, the country moved up 5 notches in the overall index, from last year's 111th position.
       Bangladesh lags behind its South Asian neighbours: India ranked 49, a step better than last year, Pakistan remained unchanged at 101 and Sri Lanka stood at 79, down from last year's 77th position.
       "The Global Competitiveness Report" (GCR) is an annual publication of the World Economic Forum (WEF). The Centre for Policy Dialogue (CPD), a partner organisation of the WEF, also released the "Bangladesh Business Environment Study 2009" that it conducted simultaneously. Infrastructure is one of the 12 parameters taken into account for the report.
       "The poor supply of electricity was the major concern for almost all respondents [98 per cent]," the report says.
       More importantly, a significant deterioration in the level of perception occured in 2008.
       "The caretaker government failed to narrow the yawning demand-supply gap in electricity, although a number of electricity generation projects, with a total capacity of 1,200 megawatts, were initiated in 2007 and 2008," the report says.
       The GCR shows more than 80 per cent businessmen said infrastructure remained largely underdeveloped in 2008. They also said railroads and air transport facilities remain poor in the country.
       "Bangladesh performs well in the worst group," said Bhattacharya.
       "Infrastructure is the number one threat, even a more serious problem than corruption," he said.
       Bangladesh can attribute advancements in the overall ranking to progress made in macroeconomic stability, government and other public institutions and improvements in the financial market, despite global meltdown.
       Most respondents said foreign direct investment-related rules were favourable to attract investment.
       Two-thirds of the respondents also said an access to bank finance with a good business plan is not enough.
       On the business operation and sophistication index, over 60 percent of the companies found there was fierce competition in the local market.
       Bangladesh did not demonstrate improvements in education, human capital and corruption indicators.

Indian villagers take over govt road project

       Frustrated villagers in northeast India have grabbed spades and axes and started building their own road to the local town after 20 years of government delays, a newspaper reported yesterday.
       About 750 residents from seven villages are working on the 25km route to connect them to Shillong, the state capital of Meghalaya, said the Hindustan Times ."Last month, we decided that we had waited long enough," Tyllilang Mukhim,a village elder from Nonglatem, told the newspaper, which published pictures of dozens of women preparing the rough ground using basic hand tools.
       "Almost all of us grow a variety of vegetables, rice, ginger ... and it is not possible to take them to the market before they rot," Mr Mukhim said.
       The villagers plan to finish the job within 25 days. The road-building project was first started by the state government in 1989. State government officials blamed lack of funds for their failure to complete the job.

FIRST INFRASTRUCTURE FUND TO BE LAUNCHED NEXT YEAR

       Thailand's first ever infrastructure fund - to finance construction of the 34-kilometre Srirasmi Expressway from Bang Sue to Taling Chan - will be unveiled around the second or third quarter next year.
       Prapa Puranachote, senior executive vice president and chief provident-fund business officer at Krung Thai Asset Management (KTAM), said the Expressway Authority of Thailand (EXAT) would take responsibility for paying an annual dividend to unit-trust holders of the fund during the construction period, which is expected to last four years. KTAM will manage the Bt20-billion fund.
       However, whether the minimum annual guarantee will be provided to the unit-trust holders has not yet been determined.
       EXAT will manage fresh capital arising from the fund sales. For instance, the company might utilise 10 per cent of the capital to finance construction in the first year and it might allocate the remainder in other investment instruments to pay dividends to the unit-trust holders.
       KTAM has jointly worked out details of the 30-year-maturity fund issuance to finance the Srirasmi Expressway with EXAT over the past three to four years.
       The Securities and Exchange Commission gave the nod last October to asset-management companies setting up infrastructure funds to invest in completed projects generating revenue or projects under construction and scheduled to start operations.
       An infrastructure fund based on existing projects should have a minimum size of Bt5 billion and must have at least 250 unit-trust holders, with limits on the maximum shareholding of any one investor. Foreign investors are restricted to holding 49 per cent of total outstanding units.
       Prapa said the authorities planned to expropriate land from those who live in the construction area next year. The expropriation will be subject to Cabinet approval.
       "The government will support the expropriation budget of Bt9 billion, while the construction budget of Bt20 billion will be raised in one transaction," she said.
       The expected return for the 34-km expressway is based on an assumption of initial traffic of around 80,000 vehicles a day with 2-per-cent growth per year.
       Investors will be able to select whether they want a fixed or floating return. The floating return will be tied to the minimum lending rate.
       Prapa added that the return should be half a percentage point higher than the 30-year government bond, now being offered at 4.8 per cent per annum.
       EXAT can make early redemption but the company would have to specify the price in advance.
       On a separate matter, Prapa said KTAM would this year roll out a Bt1.7-billion property fund to invest in a high-end hotel in Phuket. The hotel's occupancy rate now stands at 65 per cent and the minimum room rate is higher than Bt10,000 per night for a standard room.
       Most of the hotel's customers are foreign tourists.
       "Currently we are negotiating with the hotel owner about the minimum return guarantee that will be offered to investors," Prapa said.
       KTAM will launch another property fund at the beginning of next year. The fund of more than Bt5 billion will invest in a luxury hotel in Chiang Mai.

       The Securities and Exchange Commission gave the nod last October to asset-management companies setiing up infrastructure funds to invest in completed projects generating revenue or projects under construction and scheduled to start operations.

Ministry of Commerce commits 2 billion baht to drive Thai logistics

       Logistics is one of the key elements of trade and investment relations being developed by ASEAN, including ASEAN+3, ASEAN+6 and ASEAN-China and in relation to ASEAN countries around the Mekong Region.
       Related projects being discussed at the ASEAN level cover border agreements dealing with cargo. A network of distribution centres, transit stations and cargo portals supporting international trade is also being developed. Various projects will also support maritime trade, including adoption of incoterms and multiple transport forms. Collaboration between the public and private sectors in developing infrastructure and providing logistics is being encouraged.
       In this connection. the Thai government has devoloped a program of related economic incentives involving a budget of over US$2 billion. The money will be used to develop logistics systems around the country, with emphasis on improving rail and water transportation. The possibility of joint venture projects with private companies in China under the supervision of the Chinese government to develop high-speed rail systems and para-rail systems linking maritime transport with rail systems in southern China is also being looked at. Meanwhile, the rail system from northeast Thailand to Laem Chabang Deep-Sea Port is also being developed and both projects are expected to progress considerably following the impending visit of Thai Commerce Minister, Korbsak Sabhavasu, to China.
       The Deputy Minister added that: By the end of this year, our logistics trade policies will be implemented in two ways, offensively and defensively. Defensive implementation involves creating new logistics pathways to target countries, including both standard and advanced formats, so as to stimulate trade in various targeted regions."
       Defensive implementation will also extend to encouraging Thai logistics companies to find solutions to their liquidity problems with help from the Small and Medium Enterprises Devolopment Bank of Thailand (SME Bank). A logistics management network will be established under two groups, namely Thai Logistics Alliance Co., Ltd. (TLA), comprising 31 members, and Siam Logistics Alliance Co., Ltd. (SLA) comprising 26 members. The objective here is to expand water - and rail-based transportation services and encourage more widespread use by reducing costs and increasing efficiency and customer service.
       Among the top priority projects is Pakbara Deep-Sea Port in Satun province which will be developed as part of efforts to open up trade routes to the BIMTEC group comprising India, Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar and Thailand. Backed by full business incentives, the new port will be a gateway to economic development for the five southern border provinces of Thailand. It will promote trade between Thailand and India, the Middle East, Europe and Africa, thereby advancing Thailand's competitiveness in doing business with the West.
       The Thai economy and society are inextricably linked to the rest of the world. Therefore, we must adapt in order to develop. It we make the most of the opportunities presented by globalisation now by enlisting the help and cooperation of all citizens, our prospects for the future should be brighter than ever.
       Ministry of Commerce
       www.moc.go.th
       As Chairman of Logistics Trade, Deputy Commerce Minister Mr. Alongkorn Pollabutr said: "We expect to see rapid progress in implementing the free trade plans within 2009. Thailand will become capable of providing far more sophisticated logistics services to ASEAN members. In order to build the momentum for more active ASEAN markets, we will encourage the private sector to get involved. With this in place, we expect to see Thailand's intra-ASEAN trade growing at a rate of at least 10-20% annually"

Remain calm amid chaos, says governor

       Bangkok Governor MR Sukhumbhand Paribatra is calling on motorists to remain calm after roadworks on the Ratchayothin flyover caused chaos during rush-hour traffic.
       The one-month closure of the flyover's inbound section on Ratchadaphisek Road started yesterday.
       The flyover crosses Phahon Yothin Road, a traffic hotspot during rush hour.
       MR Sukhumbhand said the closure of the inbound lanes heading to the Ratchada-Lat Phrao intersection would lead to severe delays from 7am to 8.30am.
       Motorists should be patient as the Bangkok Metropolitan Administration had to make the repairs for safety reasons after parts of the flyover's surface had eroded, revealing steel plates which became slippery when wet, he said.
       Deputy Bangkok police chief Phanu Kerdlarppol said the traffic backup on Phahon Yothin Road yesterday stretched for several kilometres from 7am to 7.30am.
       Repairs on the inbound lanes were scheduled to be finished and the flyover reopened to traffic within 15 days.
       The outbound lanes would then be closed for repairs for the next 15 days.
       Vehicles using the half-closed flyover were given a longer green light to relieve traffic.
       But this meant a longer wait for traffic on the intersecting Phahon Yothin Road,Pol Maj Gen Phanu said.
       Traffic police would adjust the traffic flow in the area to reduce congestion,the officer said.
       Motorists should avoid the area and use the adjacent Vibhavadi Rangsit Road instead, he said.
       Maintenance of the flyover started by removing the worn surface, which would later be relaid and increased to a thickness of 25 millimetres from eight millimetres.
       City Hall would not repaint the flyover as it would be pulled down when the MRT Green Line was completed.
       The project would involve building an underpass at the Ratchayothin intersection.
       The city administration plans to close 13 flyovers for maintenance or reconstruction over the next 10 months.

BT20-BN HIGHWAY REPAIR PLAN IN PIPELINE

       The Highways Department is speeding up spending of its Bt20-billion budget to repair highways nationwide as part of its 'Straighten Thailand' scheme.
       The first agreement for repairing highways is to be signed on September 9, department director-general Supoj Saplom said.
       The Cabinet recently approved the economic stimulus package II under the 'Strong Thailand' scheme. Out of the total Bt200-billion package for the first allotment, about Bt23.63 billion has been allocated for the Highways Department. The amount would be used for repairing highways nationwide from now to next year.
       Supoj said the first priority is to repair highways nationwide with a total budget of Bt20 billion. The rest of the budget will be used for other programmes related to highways improvement.
       He said the department would sign a contract each for fixing highways in all provinces. Repairs and construction will be completed in four to six months.
       About 63,000 kilometres of the highways would be repaired with a total budget of Bt13.53 billion, of which Bt10.15 billion will be used up this year and Bt3.39 next year.
       For the main highways, there will be 22 projects, including road networks for a combined 291.14 kilometres worth Bt1.56 billion, of which Bt353 million will be used this year and the remaining Bt1.21 billion for next year. The highways improvement plan for 27 provinces will comprise 36 projects.

IN THE BEGINNING

       At first meeting with Worrawimon Chairut,she will tell you right away that she considers herself a chao ban (local folk)from Wat Ket. For her, the term reflects the sense of pride in one's roots and commitments to preserve the ancestral heritage.
       "In contrast, I take the word chum chon [community] as a politically-loaded import that was first introduced about five to six years ago with the arrival of the one-million-baht Village Fund projects and such. I have very little to do with those so-called community leaders. Actually,sometimes they chastised me because I had opposed the 'progress' brought by the
       government. But I see myself as an independentmind person who has to weigh the pros and cons carefully before accepting anything."
       For years, Worrawimon has been working quietly on her small campaigns to revive the spirit of her hometown on the eastern side of the Ping River. In the old days, the area around Wat Ket served as a key commercial port with goods shipped between Chiang Mai and Bangkok being unloaded here, thus its former name,Ban Tha (Port Village), which is also an intriguing melting pot of different ethnic and religious groups. In front of Wat Ket stands a Sikkh temple,and a few metres away is a century-plus-old Christian Church and a mosque."It's virtually a microcosm of Thailand," she said.
       Moreover, on both sides of the two-lane Charoen Rat Road are elegant teak or brick mansions, dating back to over a century ago and each with a rich trove of stories. Worrawimon shows a sample of her books, which unravel the fascinating varied human history of Wat Ket. In particular are two thick tomes, a collection of about 5,000 names of the extensive clans and kin networks from the area which she compiled over 10 years ago.
       According to Worrawimon, her neighbourhood is probably the last "living historic site"in Chiang Mai, where the majority of the current residents have been born and/or raised here,and unlike other tourist spots, outsiders still constitute a minority.
       Thus the petite woman felt she could no longer stay idle upon learning a couple of years ago that such unique cultural fabric might be threatened as the new Comprehensive City Plan of Chiang Mai was to be adopted without local input.
       Thanks to Duongchan Apavatjrut Charoenmuang, a researcher from Chiang Mai University who has been studying the social history of Wat Ket area and serving as the locals' adviser,Worrawimon received a copy of a CD (bought by Duongchan from a real estate company during a trade fair) that shows her community being classified as a high-population density catered to an intensive level of commerce (red colour zone).
       The figures in the draft city plan alarmed her. Calculations by staff at the Department of Public Works and Town and Country Planning stipulated that Wat Ket had about 108 residents per rai (roughly half an acre). But a re-calculation by Worrawimon, who incidentally was a geography major and has a master's degree in demography, shows a complete opposite picture:About seven people per rai.
       The ramifications of the different figures were serious. The quiet, rather laid-back Wat Ket as Worrawimon has known would be a dream of the past. Being classified as a "red zone" district would signal a march of condominiums, restaurants, karaoke bars and nightclubs, as well as a much bigger road as allowed by the law.
       As in the struggle over the road expansion project, Worrawimon had to face different techniques by concerned authorities to keep the public in the dark. One so-called public meeting was announced in a small column on page seven of a local newspaper. When she and friends learned about the event at almost the last minute, they hurried to the local school designated to be the venue, only to find there was no map to tell them which room the meeting was actually being held in.
       "But we found it after a frantic search. On a noticeboard in front of the room were pasted over 100 pages of the draft law, which we of course did not have time to read carefully. For such an important meeting, there were only 50 people in attendance -20 were the organisers;10 were student interns and the rest were stakeholders who came with me.
       "Their public relations mindset was extremely poor. They claimed that they had already announced the event in advance, so if people did not show up to debate the issue, then it must mean that they have already accepted it."
       On another occasion, Worrawimon said she was informed of what was supposed to be an important visit by the city planners from Bangkok, only the night before their arrival. Again,there was an insidious rush and a last-minute change of schedules on the actual day, as the committee members were apparently in a hurry to visit another Otop village.
       After two years, hundreds of petition letters,numerous rounds of meetings and an innovative survey that showed an overwhelming number of landowners in Wat Ket area who were against the red colour zoning label, the authorities finally agreed to revise the Comprehensive City Plan by re-classifying Wat Ket as a residential area for conservation purpose (yellow colour with white stripes).
       It has not been an easy road for Worrawimon,and she has suffered her dues (ranging from physical and verbal threats). But she is not alone. Her Wat Ket Non-Profit Alliance has attracted a growing number of active citizens,which later formed a province-wide network called the Raksa Ban Raksa Muang group (see main story).
       It all started from her volunteer work as a sattha wat (religious devout) at Wat Ket many years ago. Gradually, Worrawimon has learned the importance of self-reliance and the need to pass on the invaluable heritage to the next generations.
       "One of my elders said we have a nose to breathe [by ourselves], and not to let others drag it here and there according to their wills.
       "Many people have asked me what I have gained from doing all this. I say I don't know,but perhaps it is because I feel sorry if we can't preserve the good stuff for our future youths.I don't want the world to collapse right in front of my eyes when I can still do something about it.
       "All other countries, even those that were just formed not so long ago, would try their best to search and keep their roots. They would not destroy what's already there.
       "Money is not the answer to everything.What's far more important is peacefulness,[the ability to keep one's] spiritual essence and way of life. Yes, another reason I can give for doing what I do is simply because this is our home."

SEEKING SUSTAINABLE GROWTH FOR CHIANG MAI

       Over the past few months, Paisal Surathammawit has been carrying measurement tape wherever he goes around the city of Chiang Mai. The owner of a small guest house in an alley off Manee Nopparat Road has joined a campaign to raise awareness of the potential impact of a new city plan. Upon learning that it might entail substantial expansion of 35 roads in the downtown area (and 65 altogether for the province), and thus the tearing down or drastic shrinkage of properties on both sides of the existing roads, a few of them built more than a century ago, Paisal devised a creative technique to make his peers and neighbours realise how much damage such a scheme might bring about were it to transpire as proposed by the Department of Public Works and Town and Country Planning, a unit under the Ministry of Interior.
       By unreeling the plastic tape and stretching it from the middle of the existing roads into individual houses and buildings on both sides, Paisal effectively shows how the expanded roads, originally projected to be as wide as 20,30 or even 60 metres, could fundamentally wipe out the unique landscape of 713-year-old Chiang Mai, with its narrow, winding lanes flanked on both sides by old temples and historic sites, heritage buildings and mostly low-rise shop houses. The capital of the Northern Region would, in short, become a city of big,wide roads, catering to cars and less to people.
       "Some could lose half of their houses were the road expansion plan to be realised," Paisal said."How could the locals then carry on with their businesses? It isn't easy at all for these people to find a new location to live and work. And the compensation will likely take ages to materialise [if at all adequate].
       "We the folks of Chiang Mai do not see 'roads' as something bad in themselves, but we want to ask what exactly we want our city to become - an economic hub or a cultural and historic centre?
       "In recent years, there has been a rigorous push to turn Chiang Mai into a hub of the Mekong sub-region [despite the fact that the city is a few hundred kilometres away from the river], of aviation, IT and international conferences industries, you name it. There are plans to build more superhighways, hotels and high-rises, but with the disappearances of temples and historic sites,would people still want to come back here?"
       According to Duongchan Apavatjrut Charoenmuang,what Paisal and peers have been doing could be considered the very first uprising of the middle class in the capital of the Northern Region. The urban planning expert seems very pleased to witness how the locals of Chiang Mai,"say, the landowners, businesspeople who run gold shops and pharmacies, and so on", have come out en masse to vehemently protest a draft of the five-year Chiang Mai Comprehensive City Plan (Pang Muang Ruam ). The previous edition expired in 2004 and was renewed twice in 2005 and 2006 respectively.
       Up until the recent phenomenon, Duongchan said,the city of Chiang Mai has been on the receiving end of many mega-development schemes crafted by the technocrats, usually from Bangkok, in collaboration with outside investors. Very few locals have had an opportunity to partake in the decision-making process,or even to access information about what policies or projects are in store and how they may affect their lives.
       The controversial draft of ChiangMai's comprehensive city plan is a case in point. It took a long time for active citizens like Paisal and company to piece the jigsaw puzzle together. Once he asked an officer in charge if there was anything behind the "rumours" about the road expansion project, and the only answer he got was "you will know it when it comes out."
       By that time, it was almost too late for the people of Chiang Mai to get into action. In August last year, the concerned authorities put out a "public notice" in a rather hush-hush manner,showing the long list of roads slated for expansion at a few government offices, with a 90-day deadline for any petitions from stakeholders. Nearly twothirds of the grace period had passed before the majority woke up to the news.
       Worrawimon Chairut recalled the arduous struggle as she and like-minded friends such as Paisal tried to raise the issue with the Chiang Mai public (following her experience pushing for re-classification of her hometown in Wat Ket - see sidebar 'In the beginning'). First, they put out 10,000 pamphlets in a local newspaper, inviting people to attend a brainstorming session, but with very little success."Only a couple of people saw the news and showed up," she said.
       Then, with support from the Urban Development Institute Foundation, a nonprofit organisation cofounded by Duongchan, a group of youth volunteers helped distribute the warning pamphlets from door to door - talking to people in the streets and posting them at individual houses likely to be affected by the new city plan.A series of public meetings ensued,and anunprecedented network of Chiang Mai citizens was born,now referred to as the Raksa Ban Raksa Muang group.
       From Wat Ket, where Worrawimon is from, to Nimmanheminda, Soi Wat Umong, Kad Luang,Chang Moi, Charoen Prathet Road and more,the long-time residents of Chiang Mai decided to take the task of determining the future of their hometown into their own hands.
       Debate over road expansion led to discussions on larger structural problems. They challenge the establishment's views and policies that try to endlessly spur the growth of Chiang Mai as a regional hub without regard for its "carrying"capacity. They ask why the country's second biggest city has been deprived of an integrated mass transit system, let alone an efficient one,and if the introduction of more and bigger roads will really solve the dismal traffic here. Wouldn't more motorways mean more people switching to private cars and thus perpetuate the vicious cycle? And how about those who live along the narrow roads and used to cross back and forth and share their roots together? Would their ageold communities be severed by the superhighways once and for all?
       Last but not least, they want to know for whose benefit the top-down development
       programmes have been - researcher Duongchan says these reflect a mentality of "fragmented centralisation"- and if such programmes will bring about a sustainable city.
       A "parade" of cloth banners has been put up at different street corners, stating the simple wish of ordinary citizens to have a city they can live in and not a crisscrossing web of roads to satisfy a few drivers. It is a peaceful way to protest, in quintessential Lanna style, but one with a very strong message.
       After a vigorous last-minute scuttle, on November 15 of last year Worrawimon's group collected 2,054 names of stakeholders who opposed the new city plan (and later more than 5,000 residents signed the petition), and the list was submitted to the governor of Chiang Mai three days before the stipulated deadline.
       That was only the first round of the battle.There have since been foot-dragging tactics, delays and postponements, and questions shuffling back and forth between state agencies in Bangkok and Chiang Mai. Initially, the officers claimed the expansion of the roads, even when put on paper, would not likely take place considering the huge budget involved and possible resistance from the residents.(Again,"rumours" abounded about an allocation of state coffers to the province to the tune of 8 billion baht.) And even when the provincial authorities supposedly yielded to pressure from the local civic group and agreed to cancel most of the expansions (27 roads in the downtown area, while the widths of seven other roads would be reduced from the original plan),attempts to derail the process continue. It was argued that some sectors would prefer to restart the entire process of "public hearings" of the draft city plan (back to stage four of 18, from the current stage seven).
       As of July 9, the governor of Chiang Mai,Amornphan Nimanant, sent a letter to the directorgeneral of the Public Works and Town and Country Planning Department, confirming that after a meeting with representatives of local governing bodies (municipalities and tambon administrative organisations) around the province,the "majority" have agreed to continue the drafting process from stage seven onward.
       At the moment, the Raksa Ban Raksa Muang group is waiting anxiously for the verdict of the National City Planning Committee, currently chaired by interior permanent secretary Wichai Srikwan (incidentally a former governor of Chiang Mai). The remaining legislation process seems to be another series of tortuous behind-the-scene negotiations, however. It is not known, for one,if and how the committee will respond to revisions forwarded by the provincial authorities.
       Food for thought: In a meeting held on April 24, Surapol Satthatat of the Provincial Public Works and Town and Country Planning unit said it would take about two more years before the new City Comprehensive Plan is issued as a ministerial regulation, but twice as long should the process be moved back to the public hearing stage.
       At the moment, the whole province of Chiang Mai has been trapped in a de facto "vacuum"with no city comprehensive plan to regulate land use planning/control and new construction.Worrawimon expressed her concern that some investors might exploit this legal loophole to push for projects to build high-rises that might not have been allowed under the pre-existing law.
       As this article goes to press, no representatives of the Public Works and Town and Country Planning Department have made themselves available for an interview with 'Outlook'.
       One glimmer of hope, so far, has been the favourable response from the National Human Rights Commission. Last June, it issued a list of recommendations that basically ask the Interior Ministry to cancel the expansion of 35 roads as requested by the civic group, to put off any projects to build high-rises in the northern town in the absence of a city plan and, last but not least, to review the appointments of the National Comprehensive City Plan Committee, which include representatives from state agencies and the real-estate sector, but none from the academic,non-government organisation or people's sectors.
       Despite what appears to be a reversal of the situation, Paisal said he has asked his fellow protesters to keep the cloth banners in front of their properties."It is not yet the time to bring them down," he reckoned, while accepting that for various reasons some communities in Chiang Mai may not be as politically active as others.Nevertheless, he continues his street campaigns with the Raksa Ban Raksa Muang group, which runs on a non-hierarchical volunteer basis.
       "We have set up 'a working committee' for each of the 35 routes [originally slated for expansion]. For example, I am responsible for organising meetings with the folks on Chang Phuak Road.In the process, we've learned about the history and life of the people in each area we're working on."
       In retrospect, the road crisis has opened up a new chapter in citizens' movements in the northern city. Urban planning specialist Duongchan of Chiang Mai University points out how the present phenomenon is a case study for Thailand where ordinary people, especially in an urban
       area, have stood up to say no to unchecked growth.That Bangkok's model, with heavy traffic,sky-high buildings and interminable layers of roads and superhighways, is not what Chiang Mai wants to repeat.
       "One of the charms of an old town is its narrow roads that fit with constructions that are not too big,more on a human scale. Unfortunately, we have been trying to impose modernisation on top of the old city.Had there been better planning, Chiang Mai would have long ago been selected as a World Heritage Site.
       "In the future, with the rising cost of fuel, it will be very expensive to commute [by car] and a compact city and re-urbanisation will become important. In developed countries, there is a growing trend of urban agriculture to keep the cost of transporting produce down.
       "Thus the current phenomenon in Chiang Mai provides a lesson for our country - that people do not always want growth without limits.No, we don't want zero growth - it isn't possible for a city to not grow anyway - but we want the kind of growth that will be sustainable and lasting."
       For more information about the civic movement in Chiang Mai, contact the Raksa Ban Raksa Muang group on 08-9553-1792 or 08-1716-5927, or the Urban Development Institute Foundation on 05-327-4817,or visit www.udif.or.th.