The Thai Cabinet has approved a joint statement draft on a governmental cooperation project on railway infrastructure development in exchange of agricultural products from Thailand.

The joint statement comes after Thailand and China signed a memorandum of understanding (MoU) on cooperation in railway infrastructure development during the official visit to Thailand by Chinese Prime Minister Li Keqiang last month.

In the joint statement, Thailand and China have discussed further cooperation in railway development on the Bangkok-Nong Khai route, in which they agreed that half of the construction cost will be paid in the form of money, while the remaining in the form of rice, or other agricultural products. The prices of rice and other agricultural products will be based on global prices.

A joint committee on Thai-Chinese railway cooperation was assigned to hold consultations on form of cooperation, construction cost, and period of the project.

The implementation of the project must be made in accordance with the legal procedures of the two countries.

The railway development is under transport and logistics mega-projects that link Thailand with other ASEAN countries in order to facilitate the movement of goods and people and to promote trade and tourism in the region./.