Tuesday, August 04, 2020

Thailand extends long-term loan to improve power in two Yangon townships

Jul 14. 2020
Ratchada Thanadirek
Ratchada Thanadirek
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By THE NATION

The Cabinet on Tuesday (July 14) agreed to grant financial aid worth Bt1.46 billion to Myanmar to improve its electricity system in Yangon’s North Okkalapa and North Dagon townships, government deputy spokesperson Ratchada Thanadirek said.

She added that this offering is part of efforts to forge sound relations with the neighbouring country.

The funding will be provided on a concessional loan basis, and Bt729 million of which will come from the 2021-2023 annual budget, while the remainder will come from the government’s 5-year loan from local financial institutions.

The 30-year loan to Myanmar carries an annual interest rate of 1.5 per cent and requires that the neighbouring country hire Thai contractors and engineers for the project as well as source materials worth 50 per cent of the loan value from Thailand. The loan is also subject to Thai law.

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