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Thai soft loan to Laos to renew Pakse airport |
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Laos News Headlines
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Representatives of Thailand and the Lao Peoples' Democratic Republic (Lao PDR) have signed an agreement for a soft loan package of Bt320 million to improve Pakse airport in southern Laos.
Lao Ambassador to Thailand Ouan Pommachak and Thailand's Noppadol Pankrawee, Director of the Neighbouring Countries Economic Development Cooperation Agency, signed the bilateral agreement Tuesday.
The agreement is in response to the Lao government request for Thai support to implement its plan to expand Pakse airport to meet international aviation safety and standards. Thailand initially approved the arrangement in March 2004.
According to the agreement, the Bt 320 million package consists of Bt 224 million in low-interest rate loan and Bt96 million as a grant. The loan component carries an annual interest rate of 1.5 per cent, paid back over 30 years with a ten-year grace period.
As part of the terms of reference, reputable Thai consultancy and construction firms will be engaged in the service and at least 50 per cent of the goods and services procured must be sourced from Thailand.
Speaking after the signing ceremony, Mr. Noppadol said the improved airport at Pakse will enhance bilateral ties through greater volume of travel and transport between the two countries, contributing to mutual growth, creating employment opportunities and reducing economic disparity.
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