Deputy Prime Minister Somkid Jatusripitak, who is overseeing economic affairs, will lead a delegation to Japan later this month to negotiate three ambitious railway development projects for Thailand.
Hiroto Izumi, special adviser to the Japanese prime minister, met Mr Somkid Monday at Government House and confirmed Japan will invest in railway development projects, consisting of two east-west corridors -- from Kanchanaburi to Sa Kaeo, and Tak to Mukdahan. Another high-speed train will link Bangkok to Chiang Mai.
Mr Izumi said he will visit Japan from Nov 25-28 to discuss the projects and explain how Japan will contribute to Thailand's economic development plan.
Mr Somkid said both Thailand and Japan agree investment from Japan should be accelerated.
The deputy prime minister added Japan has also expressed interested in investing in medical equipment manufacturing in Thailand -- an industry that Japan specialises in.
In the hope of pushing along infrastructure projects, Mr Somkid said he also plans to suggest the Thailand Future Fund, a financial instrument established by the Finance Ministry to boost long-term investment, to the cabinet as a means to finance the expensive projects.
Mr Somkid said the Finance Ministry has almost finished establishing the Thailand Future Fund, which will alleviate the costs of building the trains.
The ministry previously reported the fund needs to be large-scale enough to attract long-term investors.
Meanwhile, Chartchai Tipsunave, permanent secretary for the Ministry of Transport, said after Mr Izumi met Transport Minister Arkhom Termpittayapaisith, that Thailand and Japan would discuss the details of the three railway projects during Mr Somkid's Japan visit.
Construction for the first project -- the lower east-west corridor route consisting of a 574km railway from Ban Phu Nam Ron at the border in Kanchanaburi to Chachoengsao and Aranyaprathet district of Sa Kaeo -- is expected to start next year.
The railway, which is 1-metre gauge, will serve as a transport link from the Dawei project in Myanmar (a joint project between Myanmar, Thailand and Japan) to Bangkok, Laem Chabang sea port in Chon Buri and the Thai-Cambodia border in Aranyaprathet.
"All of the project details, including construction, financing and investment, will be discussed this month in Japan," said Mr Chartchai.
The second project -- the 715km Bangkok-Chiang Mai high-speed train -- will undergo a feasibility study by the Japanese government until June next year, with construction starting in 2019.
"Japan intends to build railways similar to the Shinkansen in Japan, so it needs a thorough study," said Mr Chartchai.
The last project to be launched will be the 718km upper east-west corridor linking Mae Sot border district of Tak, Phitsanulok and Mukdahan, the border province opposite Laos, said Mr Chartchai.
Japan has been surveying the route for this project since October and is still completing the study to determine if the tracks will be 1-metre or 1.435-metre gauge .
Next week the Ministry of Transport will also submit the results of the eighth negotiation round for the Thai-China railway project -- which connects Nong Khai to Bangkok to Map Ta Phut -- to the cabinet for consideration.
A major stumbling block to concluding the deal between China and Thailand is the interest rate for the project loan.
Thailand hopes to pay less than 2% interest but China insists its financial institutions cannot afford such a low rate and is bargaining for higher interest payments.