Thailand’s government hopes to reduce the budget for the Sino-Thai medium-speed railway project by Bt 160 billion (EUR 4 billion) following some modifications. As a result of informal negotiation in Beijing, Transport Minister Arkhom Termpittayapaisith said Thailand wanted to revise the project in some areas. These revisions include the investment ratio from 40:60 to 30:70, the loan amount and lending rate, the type of tracks and the establishment of the Special Purpose Vehicle (SPV). For example, the Thai government wants the Nakhon Ratchasima-Nong Khai section to be developed as a single track to reduce costs.
“The Chinese authorities have received our proposal for project revisions and will consider it for two weeks before the two country’s 10th meeting is held in Beijing at the end of this month,” Transport Minister Arkhom Termpittayapaisith said.
The construction of the dual-track 1.435-metre gauge 873-km rail line, which will run from Nong Khai to Bangkok and then to Laem Chabang, is currently expected to cost more than Bt 500 billion (EUR 12.5 billion).
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