Japan, China loans for Suvarnabhumi

Japan, China loans for Suvarnabhumi

The Japan International Cooperation Agency (JICA) and a commercial bank in China have offered to provide loans for the planned expansion of Suvarnabhumi airport, Transport Minister Prajin Jantong said.

The minister said the two institutions had approached the Transport Ministry and expressed an interest in lending finance for the project. He did not name the Chinese bank.

The expansion of Suvarnabhumi to increase its capacity from 45 million passengers a year to 65 million is planned in three phases, with the first phase being building more aircraft parking areas and other facilities expected to be completed in 2018.

The overal plan includes a new runway and another terminal to ease passenger congestion. The total cost of the project is estimated at 66 billion baht.

Borrowing money abroad is the last option, as Airports of Thailand Plc (AoT) has said it will mainly rely on its own investments and loans from local banks.

The transport minister said this did not rule out raising foreign loans if needed.

''We will consider raising domestic loans first. If this does not raise enough money, then we will consider borrowing overseas,'' he said.

The AoT board approved the project last month. But it needs approval from the cabinet. The ministry plans to seek endorsement in December.

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