Thai-chinese Rail Project Back on Track

• 31 December 2015
• Local News
• 1316 Views

The Thai government has said a $10bn joint railway construction project with China is on track after it was widely reported the deal had been scrapped over disagreements on managing the finances.

Dismissing speculation of a cancellation, the government has said the Bangkok-Kaeng Khoi-Khorat section will begin construction this year.

In February the proposed scheme hit difficulties when the Thai government demanded lower interest rates on the 20-year loan and took issue with China’s reported plan to manage the new lines.

Thailand’s National Legislative Assembly approved a draft memorandum of understanding (MoU) with China in December 2014 to jointly build the $10.64bn rail project, part of a long-term scheme to develop the country’s transport infrastructure.