"They have taken a long time to screen potential borrowers' qualifications, because they're afraid of generating NPLs. Many transport companies also have financial difficulties, and some could not come up with the necessary collateral," said executive vice president Nattachart Jaruchinda.

Since last March 18, only Bt220.6 million of a Bt5-billion fund contributed by the Energy Conservation Fund and PTT has been extended to seven large-sized transport companies.

The nine financial institutions in charge of extending the loans are also considering the loan applications of four more clients who have asked for a total of Bt172 million. Meanwhile, the institutions have approved a total of Bt22.59 million to 263 small-business operators.

The fund has been made available to promote the use of NGV among transport companies, which now rely solely on more expensive diesel. To speed up the lending, PTT recently discussed the problem with the financial institutions, the Energy Policy and Planning Office and transport companies. Nattachart said the business operators suggested established transport associations take part in screening qualified borrowers and come up with a loan guarantee to reassure financial institutions.

PTT has urged business operators to form a club and come up with a single loan application. The company would then mediate in their negotiations with the financial institutions.

Meanwhile, PTT also plans to collect loan instalments from the borrowers whenever they fill up their tanks with NGV at PTT stations. Nattachart admitted this method of collection needed to be planned thoroughly in order to prevent defaults.

The borrowers could possibly pay PTT directly for the natural-gas tanks through a long-term instalment plan, so that their loan applications to the financial institutions would be for a lower amount.