Phuket looks at creative ways to raise funds

PHUKET: Governor CEO Pongpayome Vasaputi says he is seeking new ways to raise additional funds to develop the island. The provincial government, he explained, receives 3.2 billion baht a year from Bangkok. About 2 billion baht of this covers fixed costs such as salaries and equipment, while the remaining 1.2 billion baht is allocated for specific projects. So far this year, Phuket has already used about 47% of the 1.2 billion baht. Gov Pongpayome said that 1.2 billion baht was not enough to solve existing problems or to develop the province further so that it will become a world-class tourist destination and a pleasant place to live. Three possible methods of raising additional funds are under consideration, he said. The first would be for local administration organizations, such as the Phuket Provincial Administration Organization (OrBorJor) or the municipalities (Tessabaan) to borrow from banks to fund projects. The second method would be to sell bonds for specific projects. The third would be to have the OrBorJor or Tessabaan set up a company – with itself as one of the shareholders – then raise funds through a share flotation on the Stock Exchange of Thailand. In the meeting, held on Wednesday, Gov Pongpayome did not specify the amount he hopes to raise, nor did he give details of what types of projects the additional funds would be used for.