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Thailand delays construction start for rail line to China

Published 2016-03-25, 02:22 a/m
© Reuters.  Thailand delays construction start for rail line to China

By Pairat Temphairojana and Aukkarapon Niyomyat
BANGKOK, March 25 (Reuters) - Thailand has pushed back the
start date for construction of a multi-billion dollar rail line
to link Bangkok to southwest China after a disagreement over the
cost of the project, the Thai transport minister said on Friday.
The project is part of China's plan for a network of links
across Southeast Asia as its economic and political clout in the
region grows. Eventually, rail lines should connect Kunming in
southwest China with Singapore.
Thailand will begin the first phase of construction, a
section that links Bangkok to the northeastern town of Nakhon
Ratchasima, in August or September, Thai Transport Minister
Arkhom Termpittayapaisith told reporters on Friday.
May had been the previously envisaged state date.
Thailand decided to take on the financing of this section of
the line itself after a disagreement with China over the cost,
Arkhom said. Bangkok put the cost at 170 billion baht ($4.82
billion), while China pegged it at 190 billion baht, he said.
China also wanted rights to land along the rail line, which
Thailand was not prepared to grant, Arkhom said.
The first section is 250 kms (155 miles) long and will take
around 2.5 years to build, he added. Thailand would likely hire
Chinese construction firms and use Chinese technology, he said.
The link is one of the biggest among many infrastructure
projects the Thai military government wants to execute to boost
the flagging economy.
($1 = 35.2800 baht)

(Writing by Simon Webb; Editing by Michael Perry)

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