A concessional loan worth 1.45 billion baht to help Myanmar improve its electricity system has been approved by the government, according to an official.
Rachada Dhnadirek, deputy government spokeswoman, on Tuesday said the loan is part of an initiative to strengthen ties with neighbouring countries.
The Neighbouring Countries Economic Development Cooperation Agency (NCEDC) will be responsible for arranging and extending the loan to Myanmar, Ms Rachada said. The money will target the construction and improvement of electrical substations and transmission systems in Yangon.
The official said that of the 1.45 billion baht, 729.12 million will come from an annual budget covering fiscal years 2021-2023, while the other half is to be borrowed from domestic financial institutions, with a five-year loan period. Bidding for the domestic borrowing will be held for institutions that can extend the best offers, she said.