Eastern Economic Corridor Infrastructure Boost: ADB-Backed Motorway Extensions for Efficiency and Growth
Thailand Secures 2.4 Billion Baht Loan Agreement with ADB for Enhancing EEC Infrastructure Connections
are on the move! Securing a whopping 2.4 billion baht loan from the Asian Development Bank (ADB), Thailand is ready to take its transportation game to the next level. The key infrastructure project entails extending Motorway No. 7, connecting it to U-Tapao International Airport in Rayong province.
Why is this project such a big deal? Simple: it's all about cutting travel distance (from a hefty 5 km to just 1.92 km), reducing traffic congestion, and boosting the Eastern Economic Corridor's (EEC) logistics and tourism potential.
The exciting development was announced during a signing ceremony at the Finance Ministry. Deputy Finance Minister Julapun Amornvivat and Anouj Mehta, ADB's Country Director for Thailand, were in attendance to seal the deal.
So, what's on tap for this ambitious expansion? Well, it starts with a new four-lane elevated road connecting Motorway No. 7 to U-Tapao Airport, followed by road lane expansion in Rayong Province. The project is in line with a resolution made by the Cabinet on June 14, 2022, asserting the department of highways under the Transport Ministry as the project's lead.
The loan agreement breaks down like this: $68.74 million (approx. THB 2.44 billion) at a floating interest rate (SOFR + spread + surcharge/rebate) with a 12-year term and a 4-year grace period, with disbursement scheduled to finish by December 31, 2029.
All in all, this project stands to deliver significant national benefits, including improved travel efficiency, reduced congestion around the airport, and push for the development of U-Tapao as Thailand's third commercial international airport. Furthermore, it's expected to reinforce Thailand's commitment to sustainable development goals and solidify the EEC as a future business and logistics hub.
As the clock ticks, we'll keep our eyes on this exciting project, watching as Thailand continues to connect and modernize its infrastructure! Stay tuned for more updates as we connect the dots on this game-changing transportation initiative!
Enrichment Insights:
Alongside economic benefits, this project aligns with Thailand's sustainable development goals by emphasizing climate resilience and pushing for a low-carbon transport system. Additionally, there is a separate $68.74 million loan agreement focused on green infrastructure development within the EEC, addressing climate-smart design and resilient connectivity infrastructure. [5]
- The Eastern Economic Corridor's potential in business, logistics, and tourism is expected to soar with the improvement of its transportation system.
- This major infrastructure project aims to reduce travel distance, alleviate traffic congestion, and enhance the region's economic growth.
- The extension of Motorway No. 7, connecting it to U-Tapao International Airport, is slated to receive a $68.74 million loan from the Asian Development Bank.
- The ambitious expansion includes constructing a new four-lane elevated road and lane expansion in Rayong Province, as per the resolution made by the Cabinet.
- The loan agreement includes a 12-year term, a 4-year grace period, and a floating interest rate, with disbursement set to complete by the end of 2029.
- This transportation project not only promises improved travel efficiency and reduced airport congestion but also reinforces Thailand's commitment to sustainable development goals and further establishes the EEC as a future hub for business and logistics.
