Thailand’s cabinet on Tuesday approved a 24.8 billion baht ($809 million) budget for 246 projects as part of the government’s flood prevention measures aimed at winning back investor confidence.
“The loan request had been approved. The finance ministry will be handling further proceedings on the loan in accordance to the required protocols,” Prime Minister Yingluck Shinawatra told reporters after the cabinet’s meeting.
Last year, Thailand was hit by the worst floods in 50 years. The floods started in February and lasted until early December, killing over 800 people and causing seven major industrial zones to seize operations.
Deputy government spokesman Pakdihan Himathongkam said the fund will go towards infrastructure and water management projects under the flood prevention plan.
The 246 projects will focus on improving water relegation systems, as well as increasing flood prevention measures in major industrial zones and avoiding water retention problems in the future.
Pakdihan did not say where the funding would come from.
In addition, the Bank of Thailand has authorised 21 billion baht in soft loans to help flood-hit firms and individuals, it said in a statement issued on Monday. Financial institutions will be able to file loan requests on March 21 and onwards.
The Ministry of Agriculture and Cooperatives had proposed the government to use 3 million rai (1.19 million acres) of farmland to be used as water retention areas.
Yingluck said she expected the details of the proposal to be finalised within one month.
The flooding, which affected a third of the country, caused major disruption to global supply chains, particularly in computer and automobiles parts.
