The Public Debt Management Office has recently written to confirm that the Finance Ministry will borrow US$347.78 million, or Bt13 billion, from the JBIC for fiscal 2007, said office director Pannee Sathavarodom. "This is in preparation for the new finance minister, and the loans will be disbursed in February as planned," she said.

Her statement came as Bank of Thailand Governor MR Pridiyathorn Devakula vowed to continue investments in mass-transit projects along with other mega-projects, such as logistics and water resources. Pridiyathorn is expected to be made finance minister under the interim government led by Prime Minister Surayud Chulanont.

Pannee said the loan was part of foreign borrowings planned for fiscal 2007 and had been approved. Part of the loan from the JBIC is scheduled to be spent on the extension of the Red Line from Bang Sue to Rangsit and Bang Sue to Taling Chan, a total of 32 kilometres, which is under the responsibility of the State Railway of Thailand. The total cost of this Red Line work is estimated to be Bt42.3 billion.

The other two lines are under the responsibility of the Mass Rapid Transit Authority of Thailand: the Blue Line from Hua Lamphong to Bang Khae and from Bang Sue to Tha Pra, and the Purple Line from Bang Sue to Bang Yai. The cost of the two lines is estimated to be Bt120 billion.

Pannee said Pridiyathorn wanted to sign the loan contracts with the JBIC as soon as possible as he believed it would restore investor confidence.

These are long-term loans with maturities of 40 years.

Wichit Chaitrong

The Nation