Cabinet Approves $3.51M Grant from World Bank to Prepare for 165B Baht “Chainat–Pa Sak–Gulf of Thailand” Floodway Project

Today (27 October 2026) at 2:00 PM at Government House, Ms. Lalida Phetwiwattana, Deputy Spokesperson for the Prime Minister's Office, revealed that the government is moving forward with preparations for the Chainat–Pa Sak–Gulf of Thailand Diversion Canal Project. This major infrastructure initiative aims to enhance water management efficiency and alleviate flood risks in the lower Chao Phraya River Basin. The Ministry of Finance has submitted a proposal to the Cabinet for approval to receive a grant of US$ 3.51 million (approximately 115.5 million baht) from the World Bank. The grant will support engineering studies, design work, and project preparation prior to implementing this large-scale endeavor, with the Royal Irrigation Department designated as the main executing agency.

Ms. Lalida stated that the Chainat–Pa Sak–Gulf of Thailand Diversion Canal Project, also known as the Chao Phraya East Bank Diversion Canal Project (Plan 2), is one of nine major master plans designed to mitigate flooding in the lower Chao Phraya Basin. It features a total investment budget of 165,000 million baht and spans nine provinces: Chainat, Nakhon Sawan, Lopburi, Saraburi, Phra Nakhon Si Ayutthaya, Pathum Thani, Nakhon Nayok, Chachoengsao, and Samut Prakan. The project is divided into two sections: the Chainat–Pa Sak Diversion Canal Project, valued at 40,860 million baht, and the Pa Sak–Gulf of Thailand Diversion Canal Project, valued at 124,140 million baht, with an eight-year implementation period planned from 2027 to 2034 (B.E. 2570–2577).

The initiative involves upgrading existing canals and constructing new diversion channels to increase discharge capacity for floodwaters from the Chao Phraya and Pa Sak Rivers into the Gulf of Thailand. This will significantly mitigate flood risks across communities, agricultural zones, and critical economic centers. The Cabinet previously approved the project in principle for the Ministry of Agriculture and Cooperatives, via the Royal Irrigation Department, on September 29, 2026.

The $3.51 million grant from the World Bank will fund necessary preparatory activities, such as reviewing engineering designs and construction cost estimates, conducting economic and financial viability analyses, organizing procurement processes, carrying out supplementary environmental and social impact assessments, reviewing land expropriation frameworks, and modeling flood scenarios and structural defense efficiency. These efforts aim to provide comprehensive data and reduce cost and schedule risks during construction.

The Deputy Spokesperson emphasized that the government prioritizes the impacts on local residents within the project area. Preparatory work will include verifying affected households, surveying land and assets, determining accurate and fair compensation rates, developing resettlement plans, establishing grievance mechanisms, and fostering public participation from the early stages to ensure infrastructure development goes hand in hand with protecting citizens' rights.

Furthermore, the Ministry of Finance, through the Public Debt Management Office, has coordinated with the World Bank and the Royal Irrigation Department to draft the grant agreement. The World Bank has set a signing deadline of October 31, 2026, with all activities and grant disbursements to be completed within 18 months of signing. The Minister of Finance or a designated representative will sign the agreement on behalf of the Royal Thai Government.

Ms. Lalida reiterated that this grant is strictly intended for project preparation, not a loan for the actual construction of the entire canal system, nor does it commit the World Bank to providing construction loans in the future. Meanwhile, the Ministry of Finance is preparing financing sources for subsequent phases while promoting the use of domestically manufactured materials and equipment, ensuring that this large-scale investment directly benefits Thai businesses and the economy.

"The government prioritizes long-term flood management rather than reacting only when disasters occur. We must prepare our drainage systems and infrastructure to handle severe flood situations effectively. This collaboration with the World Bank will raise the standard of our project studies and preparation—spanning engineering, environmental, investment, and social dimensions—ensuring that this major project proceeds prudently, transparently, and for the true benefit of the public," Ms. Lalida concluded.

Photo : Weeraphat Ratsameerueangrong