Thailand will sign a memorandum of understanding (MOU) with the Chinese government in April this year to co-develop a $4.89bn high-speed rail project, according to Railway Technology.

Under the drafted MOU, the 620km high-speed railway project, linking Nong Kai in the north-east of Thailand with the capital Bangkok, will be run by a joint venture to be set up by the Thai and Chinese governments.

The Thai government will own a majority of the planned joint venture, which will have an initial registered capital of around THB1bn ($32.6m) to THB2bn ($65m).

Construction will commence next year and commercial operations are expected to start in 2016.