More delays ahead for Thailand’s three-airport rail line connecting Don Mueang, Suvarnabhumi and U-tapao airports
Contract being revised again, proposed extension to Rayong being reviewed
The three-airport high-speed rail project, already more than five years behind schedule, faces further delays as the State Railway of Thailand (SRT) prepares to review the contract that has already undergone multiple revisions.
As well, the state agency is reconsidering a proposal to extend the line — intended to connect Don Mueang, Suvarnabhumi and U-tapao airports — to Rayong province to further support tourism and business in the Eastern Economic Corridor (EEC).
Acting SRT governor Anan Phonimdaeng said on Friday that the agency will hold further talks with the Asia Era One consortium, led by the CP Group, to finalise revisions to the draft contract.
The latest draft, reviewed by the Office of the Attorney-General (OAG), has been largely agreed on, though key issues involving payment methods and civil works guarantees remain unresolved, said Mr Anan.
The contract for the 225-billion-baht project falls under the Eastern Economic Corridor Act, which allows revisions to be handled directly by responsible agencies without standard procurement or public–private partnership procedures.
For the public investment cost, Mr Anan said the payment structure must comply with the financial discipline law. The consortium’s proposal will be adjusted accordingly before being resubmitted to the OAG.
Sources say the government may shift from the original plan — 10 years of instalment payments totalling 150 billion baht — to a progress-based payment system.
Guarantees sought
Mr Anan noted that while the EEC policy committee supports a “pay-as-you-build” model for civil works worth around 120 billion baht, the OAG insists the private partner must still provide two guarantees: a 4.5-billion-baht initial guarantee and a 140-billion-baht shareholder guarantee, which would be confirmed once a Notice to Proceed with construction is issued.
These guarantees are of an equivalent value to the state’s full investment commitment, including interest.
Commenting on Transport Minister Phiphat Ratchakitprakarn’s opposition to the “pay-as-you-build” model, Mr Anan said the SRT must present its findings at a meeting with the EEC Office and Asia Era One, ahead of a separate session with OAG representatives. The latter, along with the transport minister, will have the final say, he said.
The original contract for the project was signed in 2019 between the SRT and the consortium. A concession to operate the Airport Rail Link (ARL) in Bangkok was part of the joint investment plan.
During the Covid-19 pandemic, however, declining passenger numbers on the ARL prompted Asia Era One to request compensation. The cabinet approved the revision of the contract in 2021.
Even after the pandemic, little progress was made, due in large part to delays in expropriating and transferring land needed to build the rail line. Construction is expected to take five years to complete.
Originally scheduled to open in 2024, the line is now expected to begin service in 2030 at the earliest.
Source: https://www.bangkokpost.com/business/investment/3137496/more-delays-ahead-for-threeairport-rail-line
