Latest news with #NeighbouringCountriesEconomicDevelopmentCooperationAgency
Bangkok Post
3 days ago
- Business
- Bangkok Post
Neda halts all new projects in Cambodia
Following the deadly Thailand-Cambodia border skirmishes, the Neighbouring Countries Economic Development Cooperation Agency (Neda), a public organisation under the Finance Ministry, has halted all new aid investment projects in Cambodia. According to a source from Neda who requested anonymity, no ongoing financial aid projects in Cambodia are currently under construction. One new project that has investment plans will be postponed following the clashes, the source said. This latest investment project offered assistance to the Cambodian government to construct Road R67, and was in the contractor selection process prior to the postponement. This route connects Si Sa Ket province in Thailand with Siem Reap in Cambodia. Although the project has already been approved, Neda paused funding until the situation improves. Road R67 is considered a key route in Cambodia, with the project upgrading the road surface to asphalt concrete and reinforced concrete over a distance of 134 kilometres, from Siem Reap to Anlong Veng and Choam/Sa Ngam in Cambodia. The total project value is 983 million baht. Neda offered a low interest rate of 1.5% to the Cambodian government and a repayment period of 25 years, including a seven-year grace period. The construction period was set at 24 months. The loan conditions require the use of Thai contractors and at least 50% of the contract value must be spent on Thai goods and services. As for other new financial aid projects for Cambodia -- such as the Road R68 project that would connect Surin province with Siem Reap -- a feasibility study was completed. However, Neda will not approve the project at this time, the source said. "All new projects are on hold. Nothing will be added, except for existing contracts we are following through on," said a senior-ranking source at Neda, adding that given the sentiment, even if projects were approved no Thai contractor would dare enter Cambodia to carry them out. The source said over the past two years Neda has focused financial aid efforts in Cambodia on 3-4 projects, as Laos faces high levels of public debt, leaving it unprepared for further investment. Meanwhile, Myanmar continues to struggle with internal conflict. For projects to proceed in Myanmar, Neda must wait for an election recognised by Asean, said the source. The country may hold an election this year or next. The source said the previous conflict between Thailand and Cambodia in 2011 over the Preah Vihear Temple caused Neda to suspend aid to Cambodia for 5-6 years. Neda has provided low-interest loans totalling 2.92 billion baht to Cambodia, accounting for 12% of Neda's total aid to neighbouring countries.
The Star
21-05-2025
- Business
- The Star
New Lao-Thai Mekong bridge to open soon, promising economic lift for region
The under-construction Lao-Thai Friendship Bridge across the Mekong River between Borikhamxay province and Beung Kan province in Thailand. - VT VIENTIANE: A 1,350-metre bridge linking Borikhamxay province in Laos and Bueng Kan province in Thailand across the Mekong River is now 98 per cent complete. Construction is ahead of schedule and the bridge is expected to open to traffic at the end of this year. The fifth Lao-Thai Friendship Bridge is set to boost travel between Laos and Thailand and spur trade with other countries in the Greater Mekong Subregion. The project director on the Lao side of the bridge, Laythong Phommavong, last week gave a progress report to the Ambassador of Laos to Thailand, Khamphan Anlavan, when he visted the site. Laythong said that with construction progressing faster than planned, it is hoped that the bridge will be in operation by the end of 2025. He also highlighted the progress made and the challenges encountered. Plans to build the bridge were first drawn up in 2014, when a survey was carried out. The design of the structure was approved by the Lao and Thai governments in 2018 and construction kicked off in January 2021. A loan from Thailand's Neighbouring Countries Economic Development Cooperation Agency (NEDA) was secured by the Lao government to build the Lao side of the bridge, with the total cost to be shared between Laos and Thailand. The Lao component of the project comprises construction of the bridge on the Lao side of the river over a distance of 535 metres, and the construction of access roads, immigration and customs buildings, and other structures on the Lao side. Project officials have paid compensation to people who lost land and other property so the bridge could be built. More than 52 hectares of farmland was lost to free up ground for the construction of the bridge. The fifth Lao-Thai Friendship Bridge, a result of cooperation between the governments of Laos and Thailand, will be part of new infrastructure connecting regions and people on both sides of the Mekong and strengthening regional transport networks. It will help promote cross-border trade, investment and tourism, bolster economic growth in both countries, and strengthen ties between the two neighbours. The bridge will also help turn the border areas of Borikhamxay province and Bueng Kan province in Thailand into a significant economic hub. The first four bridges built across the Mekong River between Laos and Thailand serve the Vientiane-Nong Khai, Savannakhet-Mukdahan, Khammuan-Nakhon Phanom, and Huayxai-Chiang Khong routes. - Vientiane Times/ANN
