The long awaited tram project in Khon Kaen will begin construction in June.
Residents of the north eastern city will, however, have to wait two more years until the project is finished.
Daily News said that fares would not exceed 20 baht.
The project has its design roots in local organizations without the need for state help.
State help comes in the form of finance in joint ventures with foreign investors.
Artists’ impressions showed Khon Kaen referred to as a “Smart City”.