Three-Airport Rail Link Delayed, Work Set for April 2025
The EEC board allows the high-speed rail connecting three airports to use PPP investment and has sent the contract with Asia Era One for prosecutorial review. The new contract must be completed by April 2025.
Chula admits that the opportunity to develop areas along the railway route, including key stations in Chachoengsao, Pattaya, Sattahip, and U-Tapao Airport, has been lost for five years. Meanwhile, SRT will invest independently, subject to government policy.
A news report from Government House stated that the Eastern Economic Corridor Policy Committee (EEC Board) met on January 7, 2025. During the meeting, the board was informed about the progress of the contract amendment for the high-speed rail project connecting three airports.
The committee instructed the Eastern Economic Corridor Policy Committee (EEC Board) and the State Railway of Thailand (SRT) to continue discussions to ensure that the amendment of the joint investment contract remains aligned with the original principles of the public-private partnership (PPP).
The committee has also assigned the SRT and relevant agencies to proceed in accordance with Section 21 of the Eastern Economic Corridor Policy Committee's announcement regarding the criteria, methods, conditions, and processes for joint investment with the private sector or allowing private sector investment, as outlined in the 2017 regulations and subsequent amendments (EEC Track).
This aligns with additional discussions on the procedures and guidelines for submitting the matter to the Cabinet, in coordination with the Office of the Council of State and the Office of the Secretariat of the Cabinet.
Mr. Pichai Chunhavajira confirms construction will begin this April
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, and Chairman of the EEC Board, stated that the next step involves negotiations between the SRT and private contractors on the draft of the amended contract.
The draft will then be submitted to the Contract Management Committee and the Supervisory Committee before being sent to the Office of the Attorney General for review, with particular focus on the interpretation of force majeure.
After that, the SRT will submit the draft of the amended contract, reviewed by the Office of the Attorney General, to the EEC for consideration by the EEC Board and the Cabinet for approval.
Once approved, the SRT and the private contractors will sign the amended contract, allowing the SRT to issue a notice to proceed (NTP) for construction to begin immediately, which is expected to be within April 2025.
EEC Loses Opportunity to Develop the City
Mr. Chula Sukmanop, Secretary-General of the Eastern Economic Corridor Committee (EEC), stated that, according to the original timeline, the Cabinet was expected to review the new draft contract in November 2024. However, the process was delayed to December 2024, with a deadline to finalize everything by the end of the year.
Ultimately, the contract was not submitted to the Cabinet as planned, leading to further adjustments and setting the final decision for January 2025. Most recently, the EEC Board anticipated completion by April 2025, resulting in an additional three-month delay.
However, the project's delays since the contract was signed on October 24, 2019, have now lasted for 5 years. As the project continues to be extended, it further diminishes opportunities to develop the city, including key stations in Chachoengsao, Pattaya, Sattahip, and areas along the railway route, such as U-Tapao Airport and the Eastern Aviation City.
It also loses opportunities to attract investment into the EEC, as some projects still need to be clearly defined, particularly the industries that will form the project's supply chain.
Confirming That the 3-Airport Train Project Must Happen
Mr. Wirit Amrapal, Governor of the State Railway of Thailand (SRT), stated that the SRT, as a joint venture partner with Asia Era One Co., Ltd., the winner of the bid, has confirmed that this project is crucial and must proceed.
In addition to being an already-announced government policy, the project will also play a significant role in the development of various industries in the future, including the domestic supply chain.
In the event that the project cannot proceed, whether due to the failure to sign the amendment contract or the termination of the contract by either party, the EEC may propose that the SRT take on the responsibility of investing in the project instead of the private sector.
Given the SRT's potential, it is capable of moving forward with this project, particularly in terms of constructing the infrastructure that is part of the rail system. However, this decision ultimately depends on government policy.
Credit: https://www.prachachat.net/economy/news-1732259
