Third meeting with China on Northeast railway project today

China has agreed to be part of the double-track rail project for the 734-kilometre Nong Khai-Nakhon Ratchasima-Kaeng Khoi-Map Ta Phut route and the 133km Kaeng Khoi-Bangkok route.
This project will be Thailand’s first 1.435-metre standard gauge railway, with trains running at speeds of up to 180kmh. The project is expected to cost about Bt400 billion.
“The funding for the project will come from domestic loans, while rolling stock and the signalling system will use technology from China, which will come along with credit,” Deputy Transport Minister Arkom Termpitayapaisit said.
He said the two sides were expected to come to a resolution on the setting up of a joint venture. He added that China was offering loans at 2 per cent per annum, but Thailand will ask for the repayment period to be extended to 25 to 30 years with a grace period of seven to 10 years.
China initially offered a repayment period of 20 years with a five to seven years as a grace period.
“Details on the loan size and investment ratio between the two sides will be clear after results of a survey and construction designs are released in August,” Arkom said.
The project will cover four sections, the first is the 133km part from Bangkok to Kaeng Khoi Industrial Estate in Saraburi province and second is the 246km leg from Kaeng Khoi to Map Ta Phut Industrial Estate in Rayong.
Construction of the first two sections will begin in September and services will open in December 2017.
Construction of the other two sections – the 138km from Kaeng Khoi to Nakhon Ratchasima and the 355km from Nakhon Ratchasima to Nong Khai is expected to commence in December and open for service in March 2018.