BEIJING: The Transport Ministry will aim to keep the cost of the Thai-Chinese dual-rail track project under its original budget of 420 billion baht by using trains that travel at 180km an hour.
China had asked the ministry to consider the more expensive trains that travel at 250km an hour.
The projects, which Thailand has to fund with international loans, are divided into routes from Kaeng Khoi district of Saraburi to Map Ta Phut in Rayong and one connecting Bangkok, Nakhon Ratchasima and Nong Khai.
Details of the cost and a list of prospective lenders are emerging as Chinese and Thai authorities jointly draft the project framework, which will lead to bidding later this year.
The cost of the dual-rail project was earlier calculated at 420 billion baht by a consultancy firm, but “the project value will eventually certainly be lower than that”, said Transport Minister Prajin Juntong yesterday.
The firm’s estimate is based on buying trains that travel at 250km an hour, but the cabinet has agreed on trains with a speed of 180km an hour, to cut costs, he said.
As for the loans, Beijing is offering a fixed-rate of interest, without a preferred currency requirement for an undisclosed amount, but authorities still need to consider other alternatives including a special interest rate offered by Germany.
Japan could also be an option due to the country earlier granting a loan for construction of a section of the Red Line electric rail track from Bang Sue to Rangsit, with an interest rate of 1.4%, ACM Prajin said.
Since Thailand and China agreed to work on the dual-track rail project, which is part of a transnational rail route from Kunming in southern China to Laos and Bangkok, authorities on both sides have made progress on the project framework, which covers the cost, design, route, and railway stations.
The framework details are expected to be forwarded for approval by both countries by Aug 29. “The cabinet will be asked to give a final say on Sept 10,” ACM Prajin said.
