JICA loan secured for 2nd phase of Bang Sue-Rangsit rail route

After the signing ceremony in Bangkok, Sommai commented that Japan still had confidence in Thailand, as reflected in the latest approval for some Bt10 billion worth of official development assistance (ODA) lending from the JICA, but said he did not know whether the Japanese government had confidence in the current military-led government.
An earlier administration had secured funding of around ¥63 billion (now Bt17.2 billion) from Japan in 2009 for the construction of the first phase of the 26-kilometre stretch of suburban railway.
The total sum for the second round of lending is ¥38.2 billion.
The interest rate for this latest round is set at 0.4 per cent, with a front-end-fee of 0.2 per cent, while the period of the loan is 20 years with a six-year grace period.
The interest rate for the first round was set at 1 per cent.
“If you are talking about Japan’s confidence in the Thai economy, then it is still there as seen in the special rate that they have given us for the ODA loan, but their confidence in the current government will remain to be seen, since confidence expressed about a country and confidence in its government are two different things,” Sommai said.
He made the comment in response to a reporter’s question as to whether the possible extension of the military government for another two years would increase confidence in the Thai economy.
“I believe foreign countries have gained more understanding about the non-elected government and that is why they are beginning to invest more in the Kingdom, but future confidence in the military government will depend on its performance,” he added. 
Theeraj Athanavanich, deputy director-general of the Public Debt Management Office, said a source had revealed that the final round of ODA lending from the JICA for the development of the last phase of the Bang Sue-Rangsit suburban route was expected to be made next year, in the form of another Bt30 billion worth of funding.
Construction of the Bang Sue-Rangsit stretch, which is part of the State Railway of Thailand’s Red Line mass-transit project, is expected to be completed in 2018, while the service and the procurement of rolling stock will be undertaken via the public-private partnership model, he added.
The JICA has provided financial assistance to 242 Thai development projects worth around ¥2.2 trillion since 1968.
Sadoshima said during his first signing ceremony since being appointed ambassador to Thailand that Japan was happy to offer assistance in the development of the nation’s rail system.
“We believe Thailand is turning around, and that it is taking a very important step. This country needs further development,” he said.
“The Japanese government is happy [to provide assistance] and looks forward to working with Thai people in the development of the railway system – and there will be much more assistance from Japan to come.” he added.
Meanwhile, Ikeda said the JICA “has much varied and valuable experience and knowledge, and we are ready to provide Thailand with our assistance”.
“We hope that this project for railway system development will motivate Thai people to use trains on a more regular basis, which would help lower traffic congestion in the city and reduce carbon emissions,” he added.