Thai Finance Ministry Secures AIIB Loan for Second U-Tapao Runway
Bangkok's push for new aviation hub gains momentum with 13.8 billion baht deal signed in Beijing, marking a new chapter for the Eastern Economic Corridor.
The Thai Ministry of Finance has successfully secured a 13.8 billion baht loan from the Asian Infrastructure Investment Bank (AIIB) to finance the construction of the second runway at U-Tapao Airport, a key component of the country's Eastern Aviation City project.
Speaking at a recent press briefing, Sasikarn Wattanachan, Deputy Spokesperson for the Prime Minister’s Office, announced that the Cabinet had acknowledged the report from the Finance Ministry regarding the loan.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira appointed Pachara Anantasilp, Director of the Public Debt Management Office, to sign the agreement on behalf of the Thai government in Beijing.
The loan, valued at $423.05 million, was co-signed with Rajat Misra, a representative from the AIIB.
According to Sasikarn, this step was crucial for meeting the legal requirements of the loan agreement, which must take effect within 90 days of signing.
The Cabinet's acknowledgement paves the way for the Council of State to prepare a formal legal opinion, a mandatory document for the loan to be finalised.
The project, which is set to enhance U-Tapao Airport’s commercial capacity and promote the Eastern Aviation City, is expected to be completed in three years.
The winning bidder for the construction contract, Italian-Thai Development Public Company Limited (ITD), was selected late last year with a bid of 13.2 billion baht. The new runway is projected to be operational by 2028.
