The cabinet on Tuesday approved construction of the 82-billion-baht Orange Line electric train route linking the Thailand Cultural Centre to Min Buri district in eastern Bangkok.
Bidding is expected to be completed in June.
Speaking after the cabinet meeting, Transport Minister Arkhom Termpittayapaisith said the cabinet has given the Mass Rapid Transit Authority of Thailand (MRTA) the go-ahead to build the proposed 21.2-kilometre Orange Line at a cost of 82.9 billion baht.
Of this amount, some 76.63 billion baht is set aside for construction costs while 2.78 billion baht is earmarked for consulting fees for the project and about 3.48 billion baht is reserved for contingency costs, Mr Arkhom said.
He said the cabinet has instructed the MRTA to call for bids to find contractors by June so construction can begin this year