Thailand is due to lend Myanmar $128 million to build a road from the Dawei Special Economic Zone to a town across the Thai border, according to a minister.
Thai Transport Minister Arkhom Termpittayapaisith said Myanmar representatives agreed to the loan at a joint committee meeting of the SEZ last month, according to the Bangkok Post.
The proposed road would be 132km long with two lanes, and cost around K175 billion in local currency. It would end at Ban Phu Nam Ron in Thailand’s Kanchanaburi district.
The loan would have an interest rate of 0.1% and be repayable within 20 years.
“The Myanmar government has green-lighted this project because it is seen as a key mechanism to bolster the Myanmar economy especially through trade and investment promotion as well as job creation and income generation,” Mr Arkhom told the Bangkok Post.
Thailand’s Neighbouring Countries Economic Development Cooperation Agency is studying the details of the loan project and will announce its conclusions in March, the minister said.
The Agency will also decide when to go ahead with a port and a power plant at the SEZ when it meets to announce its decision on the loan. The port and plant are due to be built by the Italian- Thai Development conglomerate.
Source: Myanmar Business Today
