Three large banks -- Bangkok Bank (BBL), Krungthai Bank and Siam Commercial Bank -- have agreed to a syndicated loan of 63.4 billion baht to finance construction of the Pink and Yellow monorail lines.
Some 31.7 billion baht will be used to fund the 34.5-kilometre Pink Line connecting Nonthaburi's Khae Rai to Bangkok's eastern Min Buri district, while the rest will go to the 30.4-km Yellow Line, which will run from the Lat Phrao area to Samrong, Samut Prakan.
The loan will be used for monorail purchase, civil works and the sign system, BBL said in a statement.
Keeree Kanjanapas, chairman of Northern Bangkok Monorail Co Ltd and Eastern Bangkok Monorail Co Ltd, said the Yellow and Pink Lines are part of a private-public partnership (PPP) net cost scheme under a joint venture of BTS Group Holding Plc, Sino-Thai Engineering and Construction Plc, and Ratchaburi Electricity Generating Holding Plc.
Under the PPP net cost arrangement, the government will be responsible for the acquisition of land and provide funding of up to 20.1 billion baht for civil works on the Pink Line and 22.4 billion on the Yellow Line.
Mr Keeree said the lines are expected to start operating in 2020.
Bombardier will design and supply the mechanical and electrical elements for both monorail lines.
BBL president Chartsiri Sophonpanich said the bank is the lead arranger for the syndicated loan and BBL alone is lending 21.1 billion baht.
"They're good infrastructure projects which will benefit the country's mass transit development and stimulate private investment on all levels, starting from employment and consumption, which are the major drivers of the country's growth," he said.
Mr Chartsiri said the bank's loan growth is in line with its target of 3-5% this year, thanks to the government's legal reform measures to support economic growth, particularly the Eastern Economic Corridor (EEC).
"Investors are increasingly keen on the EEC and we believe that it will lead to investment in major infrastructure projects, enhancing the country's competitive edge," he said. "The bank is ready to support investment of operators who have stability and [financial] liquidity. For non-performing loans, I'm not worried about the issue and I think it will level out."