Untitled Document

1) Project Cost

The total investment cost of this project is about 2,716 million US$ comprising of

- Land Acquisition	613 million US$
- Civil Works	1,591 million US$
- M & E Works	435 million US$
- Consultant	77 million US$
Total	2,716 million US$

Note : 1. Including land acquisition for 1,000 rai depot area 2. US$ 1 = 40 Baht

2) Sources of Fund

As per the cabinet resolution on September 12, 1995, funding for the ISP construction will mainly come from two major sources, loan and private fund. The government will borrow from bi-lateral credit sources for the civil works and private sector will provide funding for the E & M works and system operation and maintenance. It is also noted that cost for the acquisition of land required in this project will be absorbed by the government through her annual budget.

As a consequence of cabinet resolution mentioned above, Ministry of Finance has requested financial assistance from the Japan Bank for International Cooperation (JBIC). JBIC agreed to finance 60% of the project’s civil works. On September 27, 1996, The MRTA has signed the first loan agreement of 26,586 million yen with the JBIC for funding part of civil works construction expense in the years 1996 and 1997. Afterwards, the MRTA has signed the second loan agreement of approximately 32,659 million yen with JBIC on September 30, 1997 for funding part of civil work construction expense in the year 1998.

Due the economic crisis in Thailand, the JBIC agrees to extend the assistance to cover local cost of civil works (now covering more than 90% of the project's civil works and consultant costs. Meanwhile, as the project is considered as environmental protection project, the terms and conditions for the JBIC's loan becomes more relaxed. The repayment period is extended to 40 years with a 10-year grace period while interest rate is reduced to 0.75%.