Bangkok Will Escape Flooding: Yingluck
Bangkok Will Escape Flooding: Yingluck - Bloomberg
Bangkok Will Escape Flooding: Yingluck
By Suttinee Yuvejwattana and Supunnabul Suwannakij - Oct 14, 2011 7:42 AM GMT+0700
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Residents sit in a boat as they are evacuated from their homes during floods in Pathum Thani province, suburban Bangkok, Thailand. Photographer: Pornchai Kittiwongsakul/AFP/Gettty Images
Thai Prime Minister Yingluck Shinawatra said Bangkok will be spared from floods that have killed almost 300 people and devastated areas north of the capital after defenses on the Chao Phraya river were bolstered.
“Bangkok is safe,” Yingluck told reporters yesterday, after inspecting the city’s defenses by helicopter. “But we can only say that for the area within the flood barrier. For the area outside, they may still face floods.”
The three-month-old disaster has crippled manufacturing hubs in central provinces and destroyed more than 10 percent of rice farms in the world’s biggest shipper of the grain. To save Bangkok from the same fate, Yingluck ordered the army to widen canals to drain water toward the Tha Cheen river west of the capital, relieving pressure on the swollen Chao Phraya.
“I can start to smile today because we found another route to drain water,” Yingluck said, adding that it may take five days to widen canals that empty into the Tha Cheen.
That may ease concerns for Bangkok’s 9.7 million residents, who have been hoarding rice, instant noodles and bottled water, and buying sandbags to protect their homes as floodwaters threatened to break through the city’s defenses.
Water breached a flood barrier in Pathum Thani province near Thammasat University’s Rangsit campus, though won’t threaten the inner city, Pracha Promnog, head of the government’s flood center, said late yesterday.
Industrial Estates
While Bangkok may avoid widespread damage, floodwaters continue to threaten cities and industrial estates in provinces north of the capital.
“The damage hasn’t stopped,” Deputy Prime Minister Kittiratt Na-Ranong said yesterday. “It has spread widely. The government and all agencies involved are working to limit damage to the manufacturing sector and the economy.”
At least 289 people have been killed as monsoon rains and floods have swept across the country since July 25, according to data from the Department of Disaster Prevention and Mitigation. About 26 of Thailand’s 77 provinces are still affected by floods, the agency said today on its website.
Yingluck said about 200 soldiers are working to bolster defenses around the Hi-Tech Industrial Estate in Ayutthaya, a base for manufacturers including Hana Microelectronics Pcl (HANA), the country’s biggest semiconductor packager.
Floodwaters have already swamped the neighboring Rojana Industrial Estate, crippling operations of Japanese manufacturers including Nikon Corp. and Pioneer Corp.
A “huge amount of water” flowing from northern provinces and peak tides predicted from Oct. 14-17 and Oct. 28-31 will still test barriers defending Bangkok, the government’s flood center said on Oct. 12.
Rising Costs
Costs are likely to rise from an earlier estimate that indicated the disaster may pare economic growth by 0.6 percentage point to 0.9 percentage point, Kittiratt said.
The damage bill may increase to 156.7 billion baht ($5.1 billion) and curb growth by 1.3 percentage points to 1.5 percentage points, the University of the Thai Chamber of Commerce said yesterday.
The university, a private institution established by the chamber, now expects the economy to grow by 3 percent to 3.5 percent this year. Consumer confidence declined to a four-month low in September, a separate report showed yesterday.
“The central bank can help the economy by holding its key interest rate on Oct. 19,” Thanavath Phonvichai, an economist at the university, said today. “Consumer confidence is on a downtrend. If they can cut the key rate, that will help boost the economy next year.”
Thailand’s gross domestic product rose 2.6 percent in the second quarter from a year earlier, the slowest pace since 2009. A faltering world recovery also poses a threat to expansion.