While in Japan this week, Finance Minister Chalongphob Sussangkarn will urge the Japan Bank for International Cooperation (JBIC) to speed up its loan approval for Bangkok's mass-transit projects by August, Deputy Transport Minister Sansern Wongcha-um said yesterday.

Chalongphob was due to fly to Japan last night to attend an Asean meeting and also confer with JBIC officials on the sidelines.

Deputy Prime Minister Kosit Panpiemras said that if the JBIC, which financed Suvarnabhumi Airport, had difficulty approving loans to two mass-transit lines for Thailand by August, then the government would look at tapping the capital market directly.

The previous government sought the JBIC's support for the Red, Purple and Blue lines last August, but the loan-extension projects have been delayed.

The current administration wants to hold the bidding for the first two projects - the Red and Blue lines - during its term, but the JBIC is believed to be reluctant to act, due to the change in government.

However, a JBIC official who asked not be named dismissed that report, saying the process of approving the loans "has not been stopped". The terms and conditions of the 25-year loan remain unchanged, with interest of 1.5 per cent after a seven-year grace period.

The official admitted the process was stalled pending the first Japanese government mission to assess the projects. That mission will consist of officials from Japan's Economic, Trade and Industry Ministry, Foreign Ministry and Finance Ministry.

The JBIC official was not certain whether the mission could come here this month, because its officials must stay in Japan when the Diet (parliament) is in session.

If the Japanese mission agrees to support the mass-transit projects, the Japanese government will pledge its commitment to the loans. Then there would be an exchange of notes by both countries, followed by the signing of an agreement between the JBIC and the Thai government.

The process to conclude the loan before September, in accordance with the Thai target, will be "very just", the official said. "It will need a lot of effort from Japan."

Prime Minister Surayud Chulanont has reconfirmed his government's request for loans from Japan. He also discussed the JBIC loans during his trip to sign the economic-partnership agreement with Japan in Tokyo last month.

The Japanese official said the JBIC's decision would have nothing to do with the political situation in Thailand.

"First, the Japanese government will examine the macroeconomic perspective of the country. Since there's been no request for a long time, they have to upgrade the macroeconomic perspective. Second, the government will have to work out the detailed issues of the three lines."

Sansern said the government might finance part of the Red Line on its own. The JBIC official also said he understood the Thai government would fund part of the Red Line.

Jeerawat Na Thalang,

Oranan Paweewun

The Nation