In what critics have described as a face-saving gesture, representatives from the governments of China and Thailand have led an inaugural groundbreaking ceremony in the Thai province of Ayutthaya for a joint railway project that will not begin until May next year at the earliest.

Thai Deputy Prime Minister Prajin Juntong and Chinese State Councilor Wang Yong the ceremony on Saturday at the Chiang Rak Noi station in Bang Pa-in district, Ayutthaya. The ceremony symbolizes the commitment of the Thai and Chinese governments to the $14.7 billion dollar project aimed at building the first standard-gauge railway in Thailand.

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The 845-kilometer railway will allow trains to run anywhere from 180 to 250 kilometers per hour, according to the China Railway Corporation (CRC), with two tracks divided into four sections along a route that stretches from Bangkok to Nong-Khai. The railway's operations control center will be established at the Chiang Rak Noi station. The two train tracks and all of their peripheral systems will be built with Chinese technology, standards and equipment.

The ceremony saw an exchange of congratulatory messages between Chinese Prime Minister Li Leqiang and Thai Prime Minister Prayuth Chan-ocha. China handed over some heavy equipment to the Thai government during the inaugural event.

According to local reports, work on the project was originally scheduled to begin in October. However, it was delayed due to differences between the two governments. This is the third time that the project has been postponed Some of these differences remain unsettled, including key details on shareholding, investment cost and the interest rates Thailand will have to pay on a loan from China. Beijing wants to charge an interest of 2.5 percent on Thailand's loan. Thailand wants a rate no higher than two percent, according to reports.

Still, the governments of both nations remain confident that the project will push through and that work on the railway will begin by May 2016. In his message, Li said the launch of the China-Thai cooperation in railway construction meets the needs of both China and Thailand. The Chinese Premier also expressed hope that the joint endeavor will lay the foundation for a "great artery" connecting China, Laos and Thailand.

TagsThailand, China-Thailand Railway, China-Thailand Joint Committee on Railway Cooperation, Bangkok, Li Leqiang, Laos, China Railway Construction Corp., Prayuth Chan-ocha, China technology