The cabinet has approved a proposal to contribute US$200 million (6.27 billion baht) as seed money to establish the Acmecs Fund, a financing mechanism focused on the funding of projects under the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy's master plan.
Apart from Thailand, Acmecs partners such as Australia, Japan, South Korea and the US would contribute an additional $200 million and Myanmar, Laos, Cambodia and Vietnam a combined $100 million.
Acmecs, consisting of Cambodia, Laos, Myanmar, Vietnam and Thailand, is a partnership framework designed to bolster economic growth and reduce income disparity in the region.
Nathporn Chatusripitak, a spokesman for Deputy Prime Minister Somkid Jatusripitak, said on Tuesday the Finance Ministry was assigned to set aside $40 million from the central budget in 2020 and $40 million for each year from 2021-25 to finance the contribution.
He said the Acmecs Fund will be allocated largely to finance feasibility studies for infrastructure projects, especially the missing transport links in the region.
"The contribution demonstrates Thailand's real intention to drive infrastructure projects under Acmecs' master plan, which is instrumental in accelerating the economic and social development in Acmecs," Mr Nathporn said.
He said Acmecs aims to become a centre of economic development in the region, which can drive the economy in Asean.
According to Mr Nathporn, another two funds will be established later, including the Acmecs Infrastructure Financing Facility, which is a tool to raise funds from partners, general investors and financial institutions to develop potential infrastructure projects.
Another fund is the Acmecs Project-based Financing Facilities, which will allow partners to allocate funds to support each infrastructure project.
Acmecs' master plan focuses on connectivity along the East-West Economic Corridor and the Southern Economic Corridor. In Thailand, the scheme will also complement the Eastern Economic Corridor, new S-curve industries and Thailand 4.0 projects.