Thailand is close to approving a $12 billion high-speed rail project to connect capital Bangkok with the northern city of Chiang Mai.
The project, which will be constructed in partnership with Japan, will give tourism a big boost, connecting two of the country’s most visited tourist destinations.
Construction could begin in mid-2016, said Transport Minister Air Chief Marshall Prajin Juntong.
"Next week, we will present a memorandum of cooperation to the cabinet. If it is approved we will fly to Japan on May 27 to sign the deal," Prajin said.
It follows a similar deal agreed last year for a $9 billion Thai-Chinese joint venture rail project for two dual-track railways covering more than 700 km.
The Thai military government has pushed major infrastructure improvements as a way to kick start a stuttering economy and stay ahead in tourism.
