Wednesday, May 21, 2008
(This story was originally published on Tuesday.)
BANGKOK (Dow Jones)--Dubai World, the investment arm of the United Arab Emirates government, has agreed to fund a Thai feasibility study into a landbridge that would link the Andaman Sea and Gulf of Thailand with trans-peninsular pipelines and transport infrastructure.
The Thai cabinet Tuesday approved a memorandum of understanding proposed by Dubai World to provide unconditional financial support for Thailand to conduct the study, said a statement from the office of the Thai government spokesman.
The study will cover potential locations for deep sea ports in the Andaman Sea and the Gulf of Thailand, environmental impact, commercial viability, investment costs, legal issues and implementation plans, the statement said.
The $719 million landbridge project would link oil terminals and deep sea ports on either side of the isthmus by connecting Thailand to the Malaysian peninsula with two 240-kilometer oil pipelines, a road and a railway.
When completed, it will offer an alternative to shipping oil through the crowded Strait of Malacca and the landbridge area would be developed as a special economic zone.
The project, initiated in 2003, has been delayed due to fading interest from potential overseas partners and an increase in expected material costs.
-By Bangkok bureau, Dow Jones Newswires; 66 2266 0744; djnews.bangkok@dowjones.com
(END) Dow Jones Newswires
21-05-08 0441GMT
