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114840
Sat, 04/03/2010 - 13:16
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http://m.oananews.org//node/114840
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Thailand extends railroad to Vientiane, provides more loans to Lao PDR
VIENTIANE, April 2 (TNA) – The Thai government has agreed in principle to extend the railroad line from Thailand’s northeastern province of Nong Khai to Laos’ Thanaleng for another 12 km to its capital Vientiane.
According to Akarasiri Buranasiri, director of the Neighbouring Countries Economic Development Cooperation Agency (NEDA), the project’s construction is to start in 2011 with the budget of over Bt1 billion (US$31 million) to facilitate tourists travelling to Vientiane and to increase trades and investments among both countries, as well as logistics and transport systems for Thai goods to be sold in the Laotian capital in the hope that Thailand would have advantages over its competitor, China.
The NEDA director, meanwhile, signed an agreement with Lao PDR’ Finance Vice Minister Viengthong Siphandone regarding Thailand’s soft loans to her country at Bt655 million ($20 million) for two projects with interest rates of 1.5 per cent per year and with a five-year grant period.
The funding of Bt405 million ($12 million) will be for a development project on the route of Houay Xay and Ban Sod in between Thailand’s Chiang Rai to China’s Kunming, or R3, while the Bt250 million ($8 million) will go for a road development and a drainage system in Vientiane to solve its traffic and flooding problems, and to support the upcoming 450-year anniversary celebration of the capital.
Due to this assistance, Laos is obligated to buy 50 per cent of the construction materials from Thailand, while consultant and contractor companies must also be Thai.
“We have previously provided around Bt3.2 billion ($100 million) in loans to Laos for its six projects. Four of them were completed, while the other two are still under construction, a route development from Huay Kon to Pak Beng and the Pakxe airport development project,” said Mr Akarasiri.
In addition, NEDA has studied a road construction project (R11) from the Lao capital of Vientiane to Thailand's Loei by connecting to Laos’ Luang Prabang for those travelling along the lower part of Thailand’s north. A budget of Bt1.4 billion ($43 million) was expected, and this matter is to be proposed for a Cabinet’s consideration in the near future.
Mr Akarasiri added that NEDA is planning to extend its role by asking for cooperation from Thai private and public commercial banks on providing loans to Thailand’s neighbouring countries. (TNA)
According to Akarasiri Buranasiri, director of the Neighbouring Countries Economic Development Cooperation Agency (NEDA), the project’s construction is to start in 2011 with the budget of over Bt1 billion (US$31 million) to facilitate tourists travelling to Vientiane and to increase trades and investments among both countries, as well as logistics and transport systems for Thai goods to be sold in the Laotian capital in the hope that Thailand would have advantages over its competitor, China.
The NEDA director, meanwhile, signed an agreement with Lao PDR’ Finance Vice Minister Viengthong Siphandone regarding Thailand’s soft loans to her country at Bt655 million ($20 million) for two projects with interest rates of 1.5 per cent per year and with a five-year grant period.
The funding of Bt405 million ($12 million) will be for a development project on the route of Houay Xay and Ban Sod in between Thailand’s Chiang Rai to China’s Kunming, or R3, while the Bt250 million ($8 million) will go for a road development and a drainage system in Vientiane to solve its traffic and flooding problems, and to support the upcoming 450-year anniversary celebration of the capital.
Due to this assistance, Laos is obligated to buy 50 per cent of the construction materials from Thailand, while consultant and contractor companies must also be Thai.
“We have previously provided around Bt3.2 billion ($100 million) in loans to Laos for its six projects. Four of them were completed, while the other two are still under construction, a route development from Huay Kon to Pak Beng and the Pakxe airport development project,” said Mr Akarasiri.
In addition, NEDA has studied a road construction project (R11) from the Lao capital of Vientiane to Thailand's Loei by connecting to Laos’ Luang Prabang for those travelling along the lower part of Thailand’s north. A budget of Bt1.4 billion ($43 million) was expected, and this matter is to be proposed for a Cabinet’s consideration in the near future.
Mr Akarasiri added that NEDA is planning to extend its role by asking for cooperation from Thai private and public commercial banks on providing loans to Thailand’s neighbouring countries. (TNA)
