A two-day meeting on the Sino-Thai double-track rail route development project concluded yesterday with both parties agreeing on several key issues.
Project management, division of the route and possible investment options were all discussed.
Prajin: Exploration starts today
At a press conference, Transport Minister Prajin Juntong said Thai and Chinese officials were on the same page about construction of the 873km Nong Khai-Map Ta Phut-Bangkok-Kaeng Khoi route.
Prior to the meeting, which took place on Tuesday and yesterday, there were concerns that disagreements would arise, said ACM Prajin. However, it turned out that both sides agreed on several key issues.
According to the transport minister, Thailand and China agreed that the rail route will be 1.435m standard gauge and divided into four sections: 133km Bangkok-Kaeng Khoi; 246.5km Kaeng Khoi-Map Ta Phut; 138.5km Kaeng Khoi-Nakhon Ratchasima; and 355km Nakhon Ratchasima-Nong Khai.
The Bangkok-Kaeng Khoi and Kaeng Khoi-Map Ta Phut sections will be built under one contract. Construction of these sections is expected to begin simultaneously in September this year.
The Kaeng Khoi-Nakhon Ratchasima and Nakhon Ratchasima-Nong Khai sections will be constructed under another contract, scheduled to begin late this year or early next year.
"The first two sections can begin soon because there are fewer land appropriation problems. The other two sections run past national parks and residential communities, so it will take time to solve these problems," he said.
According to ACM Prajin, Chinese rail authorities and Thai officials will conduct unofficial exploration today.
Formal exploration work is expected in March, after both countries meet for a second time in Beijing.
While selection of the project's main contractor and subcontractors will be jointly considered by Thai and Chinese authorities, the main contractor is likely to be picked from Chinese companies and the sub-contractors from Thai firms with rail construction expertise.
Deputy Transport Minister Arkhom Termpittayapaisith said three types of investment are being considered and the Thai government will need to carefully explore the options to find which will be the most suitable for the country.
The three types of investment are: low-interest loans from China; joint private and public investment; and government-to-government investment.
According to Mr Arkhom, China has offered especially low interest loans through its import and export bank. Loan conditions have to be carefully studied and it remains unclear whether Thailand is interested in this option.
The second option is not deemed suitable for this kind of project, Mr Arkhom said, because it will take years before it starts to return profits. As for the third option, Thailand may buy back the project when it starts turning a profit.
Thailand is expected to make a decision before the next meeting which is scheduled in Beijing from Feb 11-13, he said.
After the meeting, the rail development project will go before the cabinet and the National Legislative Assembly for approval.