Thailand lends Cambodia US$40 million for road project

BANGKOK, July 29 (TNA) - The Thai Cabinet on Tuesday approved a Bt1.4 billion (US$ 41.2 million) loan for a highway development project in the neighbouring country of Cambodia, a Thai government spokesman said.

The soft loan will be spent on upgrading Highway Route 68 from Kralanh to Samrong and O-Smach in Cambodia, according to Mr Vachara Kannikar.

Under the 30-year contract, Cambodia will pay 1.5 per cent annual interest, with a grace period for the first 10 years, and will begin repaying the principal from 2019 onward.

The Cabinet decision on loans to Cambodia takes effect without a need to seek parliamentary approval as it is not considered an international agreement under Article 190 of the Constitution, Mr Vachara explained.

The Constitution stipulates that any international agreement is required by law to be presented for parliamentary approval before putting it into practice.

In addition, Prime Minister Abhisit Vejjajiva assigned the National Security Council to consider opening more border crossings with Cambodia to boost border trade and bilateral cooperation. (TNA)