The Thai Public Debt Management Office (PDMO) has warned that financial costs of the Thai-Sino high-speed railway line from Bangkok to Nakhon Ratchasima would increase if the project is delayed, as record low-interest rates are starting to rise globally. If the Transport Ministry can start construction as scheduled, the project could still lock in low interest rates before they start rising.
PDMO plans to complete a borrowing master plan for the Thai-Sino rail project within a month and seek cabinet approval. Initially, 70% of the 179-billion-baht (EUR 4.6 billion) project is expected to be borrowed from local financial sources, 20% is to be secured from China and the rest from the annual budget for expropriation. Moreover, the first lot of loans worth 1.7 billion baht (EUR 44 million) are set in this fiscal year’s budget to finance the hiring of Chinese experts to study the project. Borrowing for the high-speed train project in the early stage would not be significant, but it will accelerate in the final phase when investment for rail and traffic systems, as well as the trains are required.
According to plans, civil works for the first 3.4-kilometre section will start in October and services along the entire rail route should be ready in the next four years.
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