Cabinet approves World Bank loan for Koh Lanta and Songkhla bridges
Cabinet approval covers a THB4.55 billion loan and THB129.30 million grant for the Ko Lanta and Songkhla Lake bridge projects.
- The Thai Cabinet has approved a THB 4.55 billion loan and a THB 129.30 million grant from the World Bank.
- These funds are designated for the construction of two bridges: one connecting parts of Koh Lanta in Krabi province, and another across Songkhla Lake.
- The bridge across Songkhla Lake will connect Krasae Sin District in Songkhla province with Khao Chaison District in Phatthalung province.
- As part of the agreement, the Cabinet also approved the use of arbitration to settle potential disputes under World Bank conditions.
The Cabinet has approved the Ministry of Finance’s borrowing from the World Bank through the International Bank for Reconstruction and Development (IBRD), worth THB4.55 billion, together with grant assistance of THB129.30 million, for a combined THB4.6793 billion.
The funding will be used for the construction of a bridge linking Koh Lanta in Krabi province and a bridge across Songkhla Lake connecting Songkhla and Phatthalung provinces.
The Cabinet also approved the use of arbitration to settle disputes under World Bank conditions.
Ploytalay Laksameesangchan, deputy spokesperson for the Prime Minister’s Office, said the Cabinet meeting on Tuesday (July 7, 2026) had approved the draft Loan Agreement, draft Grant Agreement and related documents for the Koh Lanta bridge project, linking Koh Lanta Klang Subdistrict and Koh Lanta Noi Subdistrict in Krabi province, and the Songkhla Lake bridge project, connecting Krasae Sin District in Songkhla province with Khao Chaison District in Phatthalung province, with a combined budget of THB4.6793 billion, as proposed by the Ministry of Finance.
For the two projects, the Cabinet also approved the inclusion of arbitration as the method for dispute settlement under the conditions set out in the General Conditions dated Tuesday (July 1, 2025) and the Standard Conditions dated Monday (February 25, 2019).
Ploytalay added that the Cabinet had approved the Ministry of Finance’s borrowing, on behalf of the government of the Kingdom of Thailand, from the World Bank through the IBRD, worth THB4.55 billion.
At the same time, the Cabinet approved the Ministry of Finance’s receipt of grant assistance from the World Bank through the IBRD, worth THB129.30 million, to implement the two projects.
The finance minister, or a person authorised by the finance minister, will sign the draft Loan Agreement and draft Grant Agreement.
The Office of the Council of State was also assigned to prepare a Legal Opinion on the loan agreement for the Koh Lanta bridge project and the Songkhla Lake bridge project at the first opportunity after the loan agreement is signed.
In addition, the Department of Rural Roads, the Department of Marine and Coastal Resources, the Department of National Parks, Wildlife and Plant Conservation, and the Department of Fisheries were assigned to strictly perform the duties and responsibilities specified in the Project Administration Manual (PAM), the draft Loan Agreement, the draft Grant Agreement, World Bank regulations and relevant contractual annexes for the Koh Lanta bridge project and the Songkhla Lake bridge project, as well as relevant laws.
