A digital rendition of the Government Complex on Chaeng Watthana Road.

The development of Zone C at the Chaeng Watthana Government Complex, worth 30 billion baht, is expected to be on the cabinet's agenda by September, says the head of Dhanarak Asset Development.

If approved, the project's construction would start by late this year at the earliest and be completed by 2022, said Sumeth Damrongchaitham, outgoing president of Dhanarak Asset Development.

Zone C, which spans 81 rai, will be developed into office buildings for government agencies over 670,000 square metres, of which 550,000 sq m will be usable space and the rest will be for utilities and facilities.

Dhanarak Asset Development, a state enterprise under the Treasury Department, last year signed a 20-year rental contract for a convention centre and hotel at the Chaeng Watthana Government Complex to Centara Hotels and Resorts. Part of the proceeds have been used to finance design expenses for Zone C.

Mr Sumeth said Dhanarak plans to borrow funding for the entire project, given that liquidity in financial markets remains high, and it has worked closely with the Public Debt Management Office on planning borrowing.

Dhanarak could initially take out short-term loans for construction, which would later be converted into long-term debt through securitisation or the annual state budget, he said.

Borrowing costs are not expected to be high, even if the Finance Ministry does not guarantee Dhanarak's borrowing due to its strong financial position with positive shareholder equity, accumulated profit and liquidity.

"Following cabinet approval, we will have an adviser to plan the borrowing," Mr Sumeth said. "We plan to borrow several tranches to reflect the real costs but we must set a framework for money management, so concerns over funding sources during construction will be dispelled."

He said it is necessary to develop Zone C, as Zone A and B office buildings are fully occupied.