Road funds for Cambodia unfrozen [-Back to begging Thailand?]

Prison visit goes ahead as bilateral ties warm

27/08/2010
Anucha Charoenpo and Nopparat Kingkaew
Bangkok Post

Thailand is pledging to resume 1.4billion baht in assistance to Cambodia for a road development project in a further sign that ties between the two countries are returning to normal.

Thailand froze the loan shortly after Phnom Penh appointed former prime minister Thaksin Shinawatra as an economic adviser to the Cambodian government in November.

The soft loan will be spent on upgrading Road 68 from Kralanh to Samrong and O'Samach in Cambodia's Oddar Meanchey province.

Deputy Prime Minister Suthep Thaugsuban said yesterday the aid would soon be resumed and people from the two countries would get back on track in terms of trade, tourism and investment.

Thailand and Cambodia normalised diplomatic ties when Thai ambassador Prasas Prasasvinitchai returned to Phnom Penh on Monday and Cambodia sent its ambassador to Thailand, You Aye, to Bangkok on Tuesday.

Thailand is now seeking the release of three Surin natives being held at the prison in Siem Reap.

Their families visited them yesterday amid hopes they will be freed within days.

It was the first time the three villagers have seen their families since they were arrested last Wednesday in O'Samach in Oddar Meanchey, opposite Surin, for entering Cambodia illegally and carrying weapons without permission.

The trip was arranged by officials in Surin who yesterday took seven family members across the border through Khlong Luek border checkpoint in Sa Kaeo's Aranyaprathet district.

Cambodian officials there arranged a van to take them to Siem Reap prison, about 150km away.

Prison staff took the villagers to see their family members and Thai officials.

The three were safe and happy on learning they would be returned to Thailand in the next three to four days.

Surin governor Raphee Phongbuphakit said the three Thais were awaiting paperwork from Siem Reap authorities before being released.

Lam Wongcharoen, mother of Sanong Wongcharoen, one of the three villagers, thanked Cambodia for allowing the families to visit them.

She said she would not let her son gather wild products in the forest again after he was freed. The other two being held are Lim Puangpet and Lan Sapsri.

Deputy spokesman for foreign affairs Thani Thongphakdi said Thai diplomats from the embassy in Phnom Penh visited the three on Wednesday.

[Thai] Foreign Ministry shifts role

27/11/2009
Charoen Kittikanya
Bangkok Post

The Foreign Ministry plans to use "financial diplomacy" to expand trade and relations with neighbouring countries, a senior official says.

Financial diplomacy will work in tandem with other modes of support such as soft loans, infrastructure investment and joint ventures, to foster closer economic co-operation with and provide more focused assistance to neighbouring countries, said Panich Vikitsreth, vice-minister of Foreign Affairs.

"We are looking forward to extending co-operation with and provide assistance to authorities of neighbouring countries particularly for Laos, Cambodia and Burma to develop their capital market to help shape up their economy," said the former deputy Bangkok governor and co-founder of Ayudhya JF Asset Management Co.

The Economic Affairs Department is now developing guidelines for financial diplomacy and how the ministry should co-operate with agencies in the Thai capital market such as the Stock Exchange of Thailand and the Securities and Exchange Commission.

"Given the rich natural resources and potential industrial and economic growth, a joint capital market development between Thailand and neighbouring countries would greatly benefit Thailand and the region," he said.

The move would help mobilise funding in the region and reduce the income gap in less developed countries which should curb the wave of economic migration, he said.

According to Mr Panich, integrating Thailand's securities market with those of its neighbours would help attract foreign investment.

The ministry will also play a more hyperactive role in supporting government trade-related policies.

"As trade and economic issues play an increasingly important part in the international relations, it's also a must for the Foreign Ministry to adjust its role to [cover] economic dimensions beyond the traditional fronts of politics and national security," said Mr Panich.

"We are now restructuring to become another state agency that functions more as a trade and investment facilitator in addition to the Commerce Ministry or Thailand Trade Representatives."

Due to its presence across the world, the Foreign Ministry will help improve Thailand's competitiveness by providing information and services to support trade negotiations and business expansion, he said.

The ministry also aims to increase its capacity to support the government's policy to promote regional connectivity that covers infrastructure and implementing more efficient regulations and procedures to reduce the transit time for goods and commuters.

Studying alternative energy - particularly wind, solar and nuclear power - for the government will be another new role for the ministry, he said.

From 2004-08, Thailand provided about 13 billion baht in financial support within the Greater Mekong Subregion, two-thirds of which were slated for infrastructure development and one-third for technical support in human resource development.

Thailand has allocated another 20 billion baht for infrastructure development in the subregion from 2008-10.

Thailand lends Cambodia US$40 million for road project

BANGKOK, July 29 (TNA) - The Thai Cabinet on Tuesday approved a Bt1.4 billion (US$ 41.2 million) loan for a highway development project in the neighbouring country of Cambodia, a Thai government spokesman said.

The soft loan will be spent on upgrading Highway Route 68 from Kralanh to Samrong and O-Smach in Cambodia, according to Mr Vachara Kannikar.

Under the 30-year contract, Cambodia will pay 1.5 per cent annual interest, with a grace period for the first 10 years, and will begin repaying the principal from 2019 onward.

The Cabinet decision on loans to Cambodia takes effect without a need to seek parliamentary approval as it is not considered an international agreement under Article 190 of the Constitution, Mr Vachara explained.

The Constitution stipulates that any international agreement is required by law to be presented for parliamentary approval before putting it into practice.

In addition, Prime Minister Abhisit Vejjajiva assigned the National Security Council to consider opening more border crossings with Cambodia to boost border trade and bilateral cooperation.

Thai cabinet OK $41.2 million of financial aid to Cambodia ... should Cambodia accept it?

Thai Cabinet OKs THB1.4 Billion Financial Aid For Cambodia Road Project

Jul 28, 2009
By Phisanu Phromchanya

BANGKOK -(Dow Jones)- The Thai Cabinet Tuesday approved a THB1.4 billion ($ 41.2 million) budget to provide financial assistance to Cambodia for its road development project.

The 30-year soft loan will charge interest at 1.5%, with the principal being repaid from 2019 onward, a government spokesman told reporters after a weekly cabinet meeting.

The project is expected to boost traffic volume between the two countries in both tourism and logistics.