Thai Cabinet approves borrowing $84.6b for megaprojects

BANGKOK (AP) - Thailand's Cabinet has approved a plan to borrow US$67.6 billion (S$84.6 billion) to build high-speed train lines and other transportation projects over the next seven years.

Prime Minister Yingluck Shinawatra said the bill approved by Cabinet ministers on Tuesday will allow the government to borrow from domestic and foreign sources without going through the annual government budget process. She said this will ensure the continuity of the infrastructure expansion and give investors confidence in the projects.

"Funding the projects through the regular annual budget can be problematic because the budget is subjected to year-by-year approval. If there's a change of the government or in politics, the schemes could be discontinued," Ms Yingluck told reporters.

"By issuing of the borrowing bill, private investors can plan their investment to develop infrastructure in the provinces more confidently."