Cabinet approves B777m development loan to Myanmar
published : 24 Dec 2019 at 18:10
writer: Online Reporters
The cabinet has approved a low-interest 777-million-baht loan under a 30-year contract to Myanmar for infrastructure development in Myawaddy.
Government deputy spokeswoman Rachada Thanadirek said the cabinet meeting on Tuesday endorsed a proposal for the Neigbhouring Countries Economic Development Cooperation Agency (Neda) to provide financial assistance to Myanmar to fund the third phase of the Greater Mekong Subregion development project for Myawaddy town.
Under the proposal, a 30-year loan of 777 million baht with an interest rate of 1.5% will be given to Myanmar, with a grace period of 10 years, she said.
Loan conditions require goods and services to be from Thailand for at least 50% of the value of the contract. Constructors and project advisers must hold Thai nationality, and Thai laws will be enforced in the loan contract
Myawaddy town plays an important role in the economic development of Myanmar and Thailand because it is a major border trading area between Myanmar and Thailand through Mae Sot district of Tak. Cross border volume is about 70 billion baht a year and rising, Ms Rachada said.
The border town serves as a transport route for goods and people from Thailand to other important towns in Myanmar.
Thailand’s financial assistance for this project would help strengthen the infrastructure system to enable it to support the economic activities at town and national levels under the Greater Mekong Subregion development.
This would help draw investments from both domestic and overseas to this border town. Residents in Myawaddy would have access to tap water supply and the livelihood of Thai people living along the banks of the Moei River, the announcement said.