The national reconstruction panel has proposed using the country's foreign capital reserves to finance post-flood rehabilitation and flood prevention measures.
Virabongsa Ramangura, chairman of the Strategic Committee for Reconstruction and Future Development (SCRF), said Thailand would have no problem funding future investments for reconstruction and rehabilitation.
"Don't worry about sources of funding," he said. "Thailand maintains huge amounts capital, including foreign reserves which the Bank of Thailand may welcome lending to the government."
He noted that lending the reserves to the government to financing flood prevention and reconstruction projects would allow the central bank to earn better returns on interest rates than if it bought US treasury bonds.
Over the long term, the committee will work with the Strategic Committee for Water Resources Management chaired by Deputy Prime Minister Kittiratt Na-Ranong to decide which projects are appropriate for Thailand.
He said in the short-term SCRF would work together with government agencies on flood rehabilitation and prevention over the next year. The committee will meet twice a month during the course of the projects.
Mr Virabhongsa has met with the Japan External Trade Organization (Jetro) and the Japan Commerce Cooperation (JCC), as well as Toyota Motors executives to explain the flood situation and the government's reconstruction and rehabilitation efforts.
He said Jetro had assured him Japanese investors would continue to invest in Thailand, where the quality of the labour pool is better than in neighboring countries of Southeast Asia.
Mr Virabhongsa said the SCRF secretariat office would be established under the umbrella of the National Economic and Social Development Board and about 30 employees would be hired for the office.
In related news, the cabinet yesterday resolved to set aside more than 25 billion baht for post-flood rehabilitation work.
The funding includes about 11.9 billion baht for 708 projects to restore main roads under the jurisdiction of the Department of Highways, and 4.6 billion baht to repair 549 roads overseen by the Department of Rural Roads. About 7.4 billion baht will be allocated to 11 rehabilitation projects for flood-affected manufacturers.
One is an "industrial shelter" at which flood-affected manufacturers would be allowed to use to store their machinery and operate their businesses temporarily while they clean up and repair their flood-wrecked factories.
Other projects would focus on cleaning up industrial waste at flooded factories as well as water and soil contamination, and assist efforts to drain flooded estates.
About 489 million baht will be spent repairing the flood-wrecked Don Mueang airport. Damaged schools will receive a total of 956.3 million baht, while 177 million baht will be spent on purchasing school equipment and teaching materials.
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