Bangkok Bank signed agreements last week with the government to support two projects. The first, "Bt2 billion loans for Energy Saving Scheme", involves the Department of Alternative Energy Development and Efficiency and 11 banks. The second, "Loans of Bt7 billion for NGV", involves PTT Plc and eight banks.

Under the first agreement, businesses can borrow up to Bt50 million with the interest rate capped at 4 per cent to invest in energy-saving equipment. The loans are available to factories and buildings that meet government criteria and companies in the energy management business.

Under the second agreement, loans will be issued to businesses and individuals to convert their vehicles from petrol to natural gas. The loans will pay for the natural gas for vehicles equipment, with fixed interest rates between 4 per cent and 5 per cent for up to five years.

Chartsiri Sophonpanich, president of Bangkok Bank, said the bank recognised that the private sector needed to focus more seriously on energy savings. "We are keen to work with other government agencies to offer similar benefits to businesses in need of capital," he said. "The bank also continues to work with the government to organise initiatives that raise energy-saving awareness among businesses and the public."