Cabinet Approves World Bank Loan for Koh Lanta-Songkhla Bridge (4.6 Bn Baht)

Thansettakij•Economy•10d ago

Reader Briefing

Thailand's Cabinet has approved a World Bank loan of 4.55 billion baht for the construction of two major bridge projects connecting Koh Lanta and Songkhla Lake, with an additional 129.3 million baht in grant aid.

•The Thai Cabinet approved a loan of 4.55 billion baht from the World Bank (IBRD) for bridge projects.
•Grant aid of 129.30 million baht from the World Bank will also be utilized for these projects.
•The projects aim to construct bridges connecting Koh Lanta and Songkhla Lake.
•The loan and grant aid are to be signed by the Minister of Finance or their delegate.
•Arbitration will be used for dispute resolution according to the General Conditions dated July 1, 2025, and Standard Conditions dated February 25, 2019.

Overview

•The Cabinet approved the loan and grant aid at an unspecified date.
•The loan from the International Bank for Reconstruction and Development (IBRD) is valued at 4,550 million baht, in order to fund bridge projects.
•Grant aid from the World Bank (IBRD) is valued at 129.30 million baht, to be used for the same projects.
•The Minister of Finance or their authorized representative will sign the loan agreement and grant aid agreement, in order to formalize the funding.
•Arbitration will be used for dispute resolution, as per the General Conditions dated July 1, 2025, and Standard Conditions dated February 25, 2019, to ensure a structured process.
•The Ministry of Finance will borrow funds in the name of the Thai government from the World Bank, in order to finance the construction of two bridge projects.
•The Office of the Legal Counsel will prepare a Legal Opinion for the loan agreements for the Koh Lanta bridge and Songkhla Lake bridge projects at the earliest opportunity, after the loan agreements have been signed.

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Key Entities

Organization

Cabinet(ครม.)

The Thai Cabinet, which makes decisions on national policy and projects.

World Bank(ธนาคารโลก)ℹ️

The international financial institution providing loans and grants for development projects.

International Bank for Reconstruction and Development (IBRD)(ธนาคารระหว่างประเทศเพื่อการบูรณะและการพัฒนา)ℹ️

The lending arm of the World Bank providing loans for development projects.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The governmental body responsible for managing the nation's finances and signing loan agreements.

Office of the Legal Counsel(สำนักงานคณะกรรมการกฤษฎีกา)

The government body responsible for providing legal opinions on contracts and agreements.

Department of Rural Roads(กรมทางหลวงชนบท)

A government department responsible for rural road infrastructure, tasked with adhering to project guidelines.

Department of Marine and Coastal Resources(กรมทรัพยากรทางทะเลและชายฝั่ง)

A government department responsible for marine and coastal resources, tasked with adhering to project guidelines.

Department of National Parks, Wildlife and Plant Conservation(กรมอุทยานแห่งชาติ สัตว์ป่า และพันธุ์พืช)

A government department responsible for national parks, wildlife, and plant conservation, tasked with adhering to project guidelines.

Department of Fisheries(กรมประมง)

A government department responsible for fisheries, tasked with adhering to project guidelines.

Person

Ms. Ploytalay(นางสาวพลอยทะเล)

A spokesperson or official providing information about the Cabinet's decisions.

Law

General Conditions dated July 1, 2025(General Conditions ฉบับวันที่ 1 กรกฎาคม 2025)

The overarching legal framework governing the World Bank loan agreement.

Standard Conditions dated February 25, 2019(Standard Conditions ฉบับวันที่ 25 กุมภาพันธ์ 2019)

The specific standard terms and conditions applied to the World Bank loan agreement.

Project Administration Manual (PAM)(Project Administration Manual: PAM)

The operational guide outlining responsibilities for the bridge projects.