The Cabinet yesterday approved a plan to borrow Bt57 billion from abroad to finance key projects involving mass transit in Bangkok, the railway, third-generation telecom and alternative energy.
Deputy Government Spokesman Watchara Kannikar said now that the Cabinet had approved the Finance Ministry proposal, the government would submit it this month for parliamentary approval.
The foreign funds will be used for six projects. First is the Purple Line mass-transit route linking Bang Yai and Bang Sue. The government will borrow Bt19.74 billion from the Japan International Cooperation Agency for that.
The second project will be the purchase of 27 diesel-electric locomotives worth Bt3.7 billion and 308 train bogies worth Bt700 million for the State Railway of Thailand.
TOT's 3G investment will require Bt23.2 billion.
The Finance Ministry said borrowing from Japan would be cheaper than borrowing domestically. Issuing 16-year maturity bonds to raise funds from the domestic market would cost 4.76 per cent per annum, but borrowing from Japan would cost 4.4 per cent.
Watchara said the Cabinet also approved borrowing US$300 million (Bt10 billion) from the World Bank's Clean Technology Fund. The government plans to invest in alternative-energy projects that could reduce greenhouse-gas emissions.
The government may borrow from the World Bank, the International Finance Corp and the Asian Development Bank, he said.
Meanwhile, Transport Ministry permanent secretary Supoj Saplom said his ministry planned to hold an international bidding this month for construction of the Bt52.46-billion, 27-kilometre Blue Line linking Hualamphong to Bang Khae and Bang Sue to Tha Phra.
That project will be divided into four contracts. Japanese and Chinese firms are expected to participate in the bidding, he said.
And Commerce Minister Porntiva Nakasai said the Cabinet approved a plan to buy as much as 400,000 tonnes of paddy rice for Bt4 billion.
The measure is aimed at assisting farmers who have suffered from declining domestic prices and will apply to paddy rice that can be grown in less than 100 days, she said.