The two banks and the management of the Neighbouring Countries Economic Development Cooperation Agency (Neda) yesterday signed memoranda of understanding aimed at promoting trade and investment in the Greater Mekong sub-region.

JBIC's deputy director of general international finance, Toshiro Nishizawa, said he saw potential for co-financing between JBIC and Exim Bank in the food processing industry in Laos. JBIC plans to finance a joint-investment project there between Thai and Japanese firms.

However, at this stage, Exim is not involved in co-financing the project.

Exim Bank's acting president, Narongchai Akrasanee, said Exim would focus on projects in Laos and Cambodia. Projects

in the pipeline include electricity generating in Laos and construction projects in Cambodia.

Caretaker Finance Minister Thanong Bidaya, who chaired the signing ceremony, said Exim Bank would look for commercial-oriented investment, while Neda would provide soft loans to assist neighbouring countries.

JBIC's deputy director for general development assistance, Toru Arai, said JBIC would support Neda's efforts in the region. The two organisations may exchange information and organise training programmes for Neda's Thai staff.

Wichit Chaitrong

The Nation