Thailand calls for more Japanese loans

BANGKOK, May 13 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong on Sunday called for more Japanese loans of over 70 billion baht to finance the building of a mass transit rail system. Kittirat reiterated the need to the President of the Japan International Cooperation Agency Akihiko Tanaka, saying JICA’s aid was needed to ease traffic on the outskirts of Bangkok. According to Kittirat, the loans will be spent on the so-called “red route mass transit rail system,” linking Bang Sue area of the capital Bangkok with Rangsit area of Pathum Thani province. Although the contract seeking JICA loans was signed on March 30, 2009, financing has not begun due to obstructions at the construction venue as well as on the qualifications of construction firms wishing to participate in bidding. However, the Thai finance minister said he was optimistic that obstacles would be resolved soon and loans would be given out by JICA later this year. On related matters, the finance minister added that he had discussed with JICA and the Japan Bank for International Cooperation (JBIC) on the so-called “GMS project.” He said both agencies had expressed much desire to offer economic cooperation on the plan, which was designed to facilitate transportation links between the six GMS countries -- Cambodia, China, Laos, Myanmar, Thailand and Vietnam. Also, both agencies requested Thailand to set up a fund to assist small- and medium-sized Japanese firms investing in Thailand. The fund will be initially set up with a total capital of three billion baht, with the help of the Thai government. (TNA)