Senior Thai Transport Ministry officials have on Tuesday 19 May 2015 denied reports tat Thailand has signed an agreement with China to build a shipping canal through the Isthmus of Kra in Southern Thailand.
Unverified media reports had been emanating from China suggesting that the Thai and Chinese governments have made an agreement in Guangzhou to build the canal through the narrowest part of Thailand.
The project is expected to facilitate ship access from the Indian Ocean to the Gulf of Thailand, skipping the congested Straits of Malacca where Singapore resides.
The Kra Canal project was projected to take ten years to build and will incur a building cost of $28 billion dollars.
According to Dr Panitan Wattanayagorn, security advisor to Deputy Prime Minister Prawit Wongsuwan, the reports from China might have been a result of a misunderstanding.