Signs of progress in Thailand’s high-speed, inter-airport rail contract dispute
Cabinet will be asked to decide on contract changes
The Transport Ministry has called for a fair resolution on the high-speed, inter-airport rail contract dispute, warning that the changes proposed by concessionaire Asia Era One risk creating legal challenges.
Transport Minister Phiphat Ratchakitprakarn, in his capacity as chair of the Eastern Economic Corridor (EEC) Policy Committee, said after a multi-agency meeting on Saturday that the government is moving to solve legal and contractual issues delaying the 224-billion-baht high-speed rail project linking Don Mueang, Suvarnabhumi and U-Tapao airports.
The meeting gathered five key parties — the EEC Office (project owner), the Office of the Attorney-General, concessionaire Asia Era One Co Ltd, the Transport Ministry and the State Railway of Thailand — to review concerns about potential contract amendments sought by the company. Legal advisers from the OAG were invited to offer guidance on the matter.
Asia Era One insists on revising the contract to change the structure of state financial support to a “pay-as-you-build” system.
Mr Phiphat said the EEC is not opposed in principle to the idea and views the adjustment as a way to keep the long-delayed project moving. However, he said he personally disagrees with the proposed payment method.
The OAG did not confirm whether such amendments would be legally permissible but noted that under Clause 5 of the current contract, only natural disasters, pandemics or wars can be a valid reason to revise the agreement.
Given the legal ambiguity and potential consequences of the firm’s proposal, Mr Phiphat said he will forward the issue to the cabinet for a final decision.
The EEC Office has been instructed to finalise its response to the OAG’s observations and present recommendations to the EEC Policy Board by the end of this month, ahead of submission to the cabinet. A conclusion must be reached before parliament dissolves in late January.
Mr Phiphat said the EEC must clarify all legal concerns raised by the OAG and return to the cabinet as quickly as possible. The views of the Finance Ministry and the Budget Bureau must also be incorporated in the clarification, he said.
He then reiterated his opposition to altering the contract.
He added that the state risks lawsuits from losing bidders, who may argue that contract conditions were effectively altered after the project’s procurement process.
Source: https://www.bangkokpost.com/thailand/general/3138110/signs-of-progress-in-rail-dispute
