The Government of Japan extends ODA Loan Package to the Government of the Kingdom of Thailand

December 4, 2009

1. The Government of Japan has agreed to extend an ODA Loan to the Government of the Kingdom of Thailand up to the amount of 4,462 million yen to help implement the Eighth Bangkok Water Supply Improvement Project. An Exchange of Notes to formalize the agreement to this effect was concluded on December 3, 2009 in Bangkok. The Notes were signed and exchanged between H.E. Mr. Kyoji Komachi, Ambassador of Japan to Thailand and H.E. Mr. Korn Chatikavanij, Minister of Finance of the Kingdom of Thailand on behalf of their respective Governments.
2. Outline of the ODA Loan
   The ODA Loan will be extended for water treatment plant expansions (2 plants), reservoir construction (2 reservoirs), and pump installation (10 units). The Project is responding to the increasing demand for water in the Bangkok Metropolitan area, where water demand is increasing due to economic development and a growing population.
   It is expected that the Project will enhance the ability of distributing water in the Bangkok Metropolitan area and will enable the supply of clean water to residents in the area in a stable manner. It will eventually contribute to the improvement of the urban environment and development of the regional economy.

   【Reference】After the Completion of the Project (in 2014)
   Service Area： 2,349 sq km　※2,139 sq km in 2007
   Service Population：8.72 million　 ※7.66 million in 2007

3. Terms and Conditions
   (1)Interest rate: 0.8% per annum (for Consulting Services：0.01%)
   (2)Repayment Period: 15 years including 5 years of grace period
   (3)Procurement Condition: General Untied

(Reference) ODA Loan by Japanese Government to Thailand

(million yen)

(note1) Japanese Fiscal Year starts on April 1 and ends on March 31.

(note2) Figures are calculated based on the date of Exchange of Note.