Green fund plans win approval

       The cabinet yesterday approved in principle investment plans for low-carbon technologies proposed by the Finance Ministry that would use funding from the World Bank's Clean Technology Fund (CTF).
       The investment plans are mainly for developing environment-friendly energy and for transport projects that reduce the use of fuel oil.
       The World Bank has told the Thai government it would offer as much as US$300 million in credit to the public and private sectors, said Vachara Kannikar, a deputy government spokesman.
       The CTF was set up by the World Bank, the Asian Development Bank and International Financial Corporation to provide funds mainly to support reductions in greenhouse gas impacts.
       The cabinet yesterday also approved plans by state-owned companies including the Mass Rapid Transit Authority of Thailand to borrow an additional $1.35 billion from overseas lenders to help finance infrastructure projects.
       The Mass Rapid Transit Authority will seek a loan of $563.9 million from the Japan International Co-operation Agency to finance an electric rail line, an the upgrade of its mobile-phone network to third-generation (3G) technology.
       Finance Minister Korn Chatikavanij said the cabinet yesterday also gave a green light for the Bank for Agriculture and Agricultural Co-operatives (BAAC)to set aside 60 billion baht in credit to help prop up rice prices during the current harvest.
       Loans of 20 billion baht guaranteed by the Finance Ministry will be extended to the Marketing Organisation for Farmers and the Public Warehouse Organisation to buy rice directly from farmers. Another 20 billion baht in loans to rice millers will improve their liquidity on condition that they buy rice from farmers at prices set by the Commerce Ministry. The government will cover loan interest of 2% and the millers will pay loan interest at 2.75%.
       The BAAC will set aside another 20 billion baht for a rice mortgaging scheme to help farmers who need money but prefer not to sell when prices are low.