Speaking after meeting with JBIC officials, caretaker Deputy Prime Minister Suriya Jungrungreangkit said the bank had responded positively.

It will send another group of staff to work out details with Thai officials early next week. The loan application framework should be concluded by the end of the year.

A senior JBIC official said the terms and conditions of the loan would not advantage only Japanese investors, said Suriya.

The Cabinet has approved an application to the JBIC for loans to finance the three new mass-transit lines. The government will soon send a notice of intent to the bank to apply for soft loans on the understanding that the projects' objective is to reduce pollution in the city.

Senior JBIC officials have promised to provide soft loans with a grace period of five to 10 years. The interest rate will be about 0.5 to 0.65 per cent annually. The repayment period is from 30 to 40 years.

However, Suriya said that if the JBIC followed the normal approval procedure, it would take quite some time. Therefore, during yesterday's meeting, he asked JBIC officials to reduce the steps involved, which they agreed to do.

Meanwhile, National Economic and Social Advisory Council (Nesac) chairman Gothom Areeya said the council was happy to hear that the Mass Rapid Transit Authority of Thailand and the State Railway of Thailand had agreed to amend the investment conditions in the terms of reference for the three mass-transit projects, in line with its recommendations.

Nonetheless, he said the council would put forward a proposal for a public hearing to be conducted by the Office of Transport and Traffic Policy and Planning.

As for Nesac's suggestion that the new transit lines - which will connect to the Airport Link - should add an airline check-in point at Yommarat station in addition to Makkasan station, Gothom said that, once completed, Yommarat would connect to many routes. Therefore, it would be beneficial for passengers if they could access a check-in service there. The caretaker government plans to go ahead with the three mass-transit lines to drum up support from urban voters at the next general election.

The lines are the Red Line from Bang Sue to Rangsit and from Bang Sue to Taling Chan, the Purple Line from Bang Yai to Bang Sue, and the Blue Line from Hualumphong to Bang Khae and from Bang Sue to Tha Phra.