Thailand wants Japan to invest in the Shinkansen-like high-speed railway from Bangkok to Chiang Mai but Japan insists only on offering loans for the project.
Representatives of the Transport Ministry led by Minister Arkhom Termpittayapaisith yesterday held a meeting with their Japanese counterparts led by Noriyoshi Yamagami over the 670km Thai-Japanese bullet train project.
Speaking after the meeting, Mr Arkhom said that Japan continues to insist that Thailand invest in the entire project.
However, Mr Arkhom said the government's priority is to first find ways to "minimise debt for the government."
"We have asked [Japan] to come up with solutions to decrease capital investments, in order to minimise debt on our part," he said. "One of the solutions would naturally be a joint investment."
But Japan insisted that it will only offer loans with low interest rates for the project. Mr Arkhom indicated that further negotiations would take place.
According to a Japanese study, the entire Bangkok-Chiang Mai route will cost 420 billion baht.
Prime Minister Prayut Chan-o-cha had suggested reducing the train's maximum speed to 180-200kph to save costs but a study has shown it would not be cost effective in the long term.
Mr Arkhom insisted the railway will use Shinkansen-style trains, which typically have maximum speeds of 300kph.
He said that in the latest discussions, they suggested cutting certain stations to decrease the project's capital investment. The Japanese rejected this, saying that it would not be worth losing potential passengers who live around those stations.
"At this stage the details are still difficult to finalise, because we also have to hold talks with the Ministry of Finance," Mr Arkhom said.
