The cabinet approved 1.83 billion baht of softloan to Laos government to improve the R12 highway which will facilitate better logistics between Thai-Laos-Vietnam-China.
Government spokesperson Kenika Oonjit said the cabinet endorsed a 1.8 billion softloan to Laos government. To improve the road No. R12 in a bid to facilitate cross border transport and trade facilitation.
The 147 km road project will be implemented from R12 highway. At Thakhek, Khammouan, Laos which is crossing to R 13 highway.
Away 17 km from a permanent border checkpoint at Nakhon Phanom via the third Thai-Laos friendship bridge. Link to Yommalath, Boualapha, Khammouan province and terminates at international border checkpoint of Napao. Which is opposite to the international border checkpoint Chalo, Quang Binh, Vietnam.
The projects included an improvement of the road on standard requirement of Asian Highway, checkpoint building and facilities, electricity system and facilities for tourism purposes.
The 30 years term loan of 1.83 billion baht is 1.75% of interest rate softloan and a requirement of Thai construction company.
The study showed the R12 highway would support connectivity. Between Thailand, Laos, Vietnam and China and the Greater Mekong Sub Region.
The improvement of the R12 highway and facilities can shorten custom procedures to 4 hours from 10 hours. And reduction to 2 border checkpoints from previous 5 checkpoints.
The project will enhance Thailand to become a destination of production base of the investment from the regional and the global, and facilitation of travelling among the region.
The study reported that more opportunities for up to 50% of motorists to change to use the R12 highway. Which can increase intra border trade between Thailand and Laos via Nakhon Phanom border checkpoint.
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