State Railway of Thailand agrees to adjust the investment framework for the Red Line by 8.7 billion baht
The SRT board has agreed to adjust the investment framework for the Red Line by 8.7 billion baht, paying compensation to private companies for design adjustments and time extensions to accommodate the costs of work according to the court order and the costs of the construction extension in 3 main contracts.
May 19, 2568 (2025) Meeting of the State Railway of Thailand Board (SRT Board) On 15 May 2568 (2025), there was a resolution approving the adjustment of the investment framework and the procurement of additional funding sources for the suburban railway system project (Red Line) Bang Sue-Rangsit and Bang Sue-Taling Chan sections to pay for Contract 1 in accordance with the court order and the framework of Contract 2 and 3, which are increased costs, totaling approximately 8.7 billion baht (including interest and VAT), resulting in the total Red Line project budget increasing from 96,868.332 million baht (Cabinet resolution on 1 February 65) to 104,445 million baht, divided into
Contract 1 (Civil works for Bang Sue Central Station and Maintenance Center) There is a joint venture, SU, with Unique Engineering and Construction Public Company Limited (UNIQ) and Sino-Thai Engineering and Construction Public Company Limited (STEC) as the contractor. It is a fee paid according to the Administrative Court’s order in the case of changing the work (VO) in the amount of 4,205 million baht. In the case of including other expenses claimed under the contract, namely, Value Added Tax, Interest on Default Payment of Contract Guarantee, Expenses for Extension of Time, Compensation for Construction Costs for Redesign, totaling 7,407 million baht (including VAT and interest in the case of calculating the domestic loan rate).
It is the value of the work according to the contract dispute after the arbitrator has made a decision and the Administrative Court has made a judgment to enforce the decision of the arbitration panel, the construction cost of the Red Line train in the improvement and additional changes (Variation order – VO) Contract 1 on April 10, 68.
Contract 2 (Civil works for Bang Sue Railway Station and Maintenance Center) with Italian-Thai Development Public Company Limited (ITD) as the contractor, with a total cost of 212.125 million baht, requesting additional expenses from the construction period extension of Contract 1 and Contract 2 by requesting to extend the budget and find additional sources of funds that exceed the approved budget framework.
Contract 3 (Electric train system and mechanical works including the procurement of electric train carriages) has a joint venture MHSC (MITSUBISHI Heavy Industrial Ltd., Hitachi and Sumitomo Corporation) as the contractor, with a total cost of 847.746 million baht as additional expenses in the case of extending the construction period.
In addition, there are two parts of consulting fees: additional construction supervision consultant fees of 2 million baht (according to the arbitrator’s decision) and additional project management consultant fees of 129.125 million baht.
In the past, the Red Line Railway Project, Bang Chi-Rangsit and Bang Chi-Taling Chan sections, had their budget framework adjusted 8 times due to changes in the design, including changing from 3-way to 4-way, and adjusting the design of Bang Sue Central Station.
News source from SRT specify that It will be expedited to submit to the Ministry of Transport within this week because there will be a consideration process to submit to the Cabinet. In the case of a dispute in Contract 1, the Ministry of Transport has a legal working group to consider and expedite the submission to the Cabinet because there is a time frame to comply with the court order to enforce the judgment within 60 days.
Source: https://moneyandbanking.co.th/en/2025/173439/
