Ministry Seeks Local Financing Of Bangkok's Electric Rail Transit

Ministry seeks local financing of Bangkok's electric rail transit

Friday 14 September 2007 03:22:14 PM (GMT+7:00)

BANGKOK, Sept 14 (TNA) - Transport Minister Admiral Thira Haocharoen has conceded that the Thai government may need to rely upon local funding to finance construction of the purple-line electrified train mass transit project due delays in the loan approval by the Japan Bank for International Cooperation (JBIC).

He said it is more likely the building of the purple-line Bang Yai-Bang Sue rail project would be financed by local loans instead of offshore ones after Finance Minister Chalongphob Sussangkarn reported the delayed loan approval on the part of JBIC.

It is the duty of the Finance Ministry to consider seeking local loans. Initially, such funding would come from commercial banks and the State Oil Fund, he said.

Deputy Transport Minister Sansern Wongcha-um said the Finance Ministry failed to give a reason why JBIC remain unable to lend to Thailand.

He said the Transport Ministry needed to wait and see how and where the Finance Ministry would locate the loans to support the mass transit project.

A source at the Transport Ministry said JBIC was still reluctant to extend the loan to Thailand because the loan approval process involves many agencies and the term of the current Thai government is due to end in the next few months.

Also, the recent declaration of resignation by Japanese Prime Minister Shinzo Abe had also put the negotiation process for the loan on hold.

(TNA)-E005

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