Thailand said today it would fund the construction of the first phase of railway line from the Thai-Laos border to the Gulf of Thailand that China and Thailand had agreed to partner.
The Thai government will pay for the Bangkok-Nakhon Ratchasima rail link entirely, Prime Minister Prayuth Chan-ocha said today, while China will contribute to its construction and technological installations.
The project is part of China’s efforts to expand infrastructure in Southeast Asia. China has ambitious infrastructure plans for the region to build rail links from Kunming in its southwest through Laos to Thailand.
Thai Transport Minister Arkhom Termpittayapaisith said earlier this month that China and Thailand were still negotiating a 60:40 shareholding plan for the proposed 845km line which would run from the Thai-Laos border to the Gulf of Thailand. China has put the project cost at THB560 billion.
Deputy government spokesman Major General Weerachon Sukhontapatipak said today that Thailand would fund the project’s first phase, or part of the track from Nakhon Ratchasima province, northeast of Bangkok, to the Thai capital.
“Early stage construction will be the line Bangkok – Kaeng Khoi – Nakon Ratchasima. Thailand will invest in all of it by itself,” Weerachon told reporters. “Both governments have agreed this project will take place under this administration.”
Story: Reuters
