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370851
Fri, 06/12/2015 - 15:26
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Japan funds Bangkok's extended rail project

BANGKOK, June 12 (TNA) - The Thai government, through the Ministry of Finance, has signed a contract with the Japanese government to borrow about 10.7 billion baht from Tokyo to finance the construction of an extended mass transit rail track, linking Bang Sue area in Bangkok to Rangsit in the capital's neighbouring Pathum Thani Province. Japanese Ambassador to Thailand Shiro Sadoshima and Thai Finance Minister Sommai Phasee signed the contract in Bangkok on Friday. Under the contract, the Japanese government will provide the loan amounting about 38.2 billion yen, or 10.7 billion baht, to the Thai government through Japan International Cooperation Agency (JICA). The loan will then be spent by the State Railway of Thailand (SRT) to construct the extended mass transit rail track for the red route electric train system, phase 2, designed for improving urban communication and easing traffic congestion. The preferential loan offered by Tokyo to the Thai government carries a 0.4 per cent interest rate per annum on goods and services procurement, interest rate at 0.01 per cent on advisory fee and the front-end fee at 0.2 per cent rate of the total loan, with repayment set within 20 years, including a six-year grace period. Under the conditions, Thailand can procure goods and services from any country under an international bidding system. Since 1968, the Tokyo government has offered preferential loans amounting about 2.2 trillion yen to the Thai government, most of which have been spent on the development of infrastructure, urban and rural areas, as well as the environment and human resources in the country. (TNA)

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