The cabinet meeting on Tuesday 15, November 2011 has come to the following decision:
The cabinet approved the proposals by the Ministry of Finance as follows:
1. The cabinet approved the negotiation framework for external loan for the BTS purple line (Bangyai- Bangsue) stage 3. The framework would then be proposed to the parliament for approval
2. The cabinet assigned the Ministry of Finance on public hearing before the submission of loan contract and related documents to the parliament for approval
Essence of the negotiation framework
1. Purpose
This project which links with the MRT Chalermratchamongkol line, Bangsue station aims to bring commuters from Nonthaburi province into the mass transportation system in Bangkok. Ultimately, the project will ease the traffic congestion, lessen the energy lost and air pollution as well as improve the usage of mass transportation and efficiency in energy consumption.
2. Loan amount
31,772.35 million yen or 11,755.77 million baht.
3. Cost and loan duration
Cost and duration will be imposed according to the project and the government’s future loan repayment ability. For the loan from JICA, the comparison between the cost of loan by JICA using cross currency swap and the cost of local loan shows that the average cost of loan offered by JICA is lower.
4. Procurement
The procurement will follow the guideline set by the lender.
5. Loan disbursement duration
Loan disbursement duration will conform to project execution with further negotiation for maximum benefit.
6. The monitor of loan usage
Loan usage will be monitored by related offices, lender and the office of the auditor general of Thailand who will also examine the procurement.
The cabinet approved 160,982,634 baht of 2011 fiscal budget to help flood and landslide victims in early 2011 in 11 provinces including Krabi, Chumporn, Trang, Nakhon Si Thammarat, Naratiwat, Pang Nga, Pattalung, Phuket, Satun, Songkhla and Surat Thani. The Bureau of the Budget will allocate the budget to the Bank for Agriculture and Agricultural Co-Operatives under the Ministry of Finance who can directly disburse the money to affected farmers as proposed by the Ministry of Agriculture and Cooperatives
The cabinet approved the proposal by the Ministry of Finance as follows:
1. The debt suspension program for retail farmers and individual with less than 500,000 outstanding debts.
2. For the budget, the 6 Specialized Financial Institutions will coordinate with the Bureau of the Budget to set up the needed amount.
3. The revision of credit information in the database of the National Credit Bureau. The Credit Information Committee was assigned to amend the notification on account status code
The cabinet approved the proposal by the Ministry of Finance as follows:
1. Specify in loan contract, contract of suretyship and other financial contracts between the Krung Thai Bank PCL and Xayaburi Power Company Limited that the International Arbitration Court will handle the dispute resolution.
2. The Krung Thai Bank PCL can use arbitration as dispute resolution in ISDA Master Agreement and/or Credit Support Annex (CSA) for international financial institutions without having to propose to the cabinet on case basis
3. State-owned financial institutions can use arbitration as dispute resolution in Syndicated Loan contracts in foreign countries without having to propose to the cabinet on case basis
The cabinet approved 179,105,679 baht of reserved budget for emergency situation to help farmers affected by the outbreak of plant pests (brown plant hopper and vole), storm and drought in Bangkok, Nan, Prachuap Khiri Khan, Phichit and Singburi. The Bureau of the Budget will allocate the budget to the Bank for Agriculture and Agricultural Co-Operatives under the Ministry of Finance who can directly disburse the money to affected farmers as proposed by the Ministry of Agriculture and Cooperatives
--Cabinet Meeting (Yingluck Shinawatra) November 15, 2011--