BANGKOK: Thailand's National Legislative Assembly has approved an initial agreement on a joint rail project with China, as part of a long term scheme to develop the country's transportation infrastructure.
Transport Minister Air Chief Marshal Prajin Juntong told reporters the project was expected to cost at least 350 billion baht ($10.64 billion) and "will certainly benefit Thailand as it will link transport networks with neighbouring countries".
Under the memorandum of understanding, the project will be done on government-to-government basis, with China responsible for the construction and development of the rail system, the Thai government said in a statement.
Funding and construction costs will be discussed further, the statement said, adding both sides would try their best to start the construction within 2016.
The government previously said the standard gauge rail project would be built from the northeastern province of Nong Khai, 380 miles from Bangkok, to Map Ta Phut industrial estate in Rayong province, 112 miles east of Bangkok. There will be a sub-route to Bangkok.
The army seized power in May in a bid to restore order after months of political unrest and kick-start the economy that is set to grow this year at its slowest pace since devastating flooding 2011.
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