State Railway of Thailand okays contract change for Don Mueang, Suvarnabhumi and U-Tapao airport link project
The board of the State Railway of Thailand (SRT) has approved a revised contract for the high-speed rail project linking three airports — Don Mueang, Suvarnabhumi and U-Tapao — which is scheduled for signing by June.
This amendment marks a critical step in the long-delayed project.
SRT deputy governor Anan Phonimdaeng said that after this, the revised contract will be reviewed by the project’s oversight committee, the Office of the Attorney General and the cabinet.
The final signing is expected in June, after which the SRT will issue a notice to proceed (NTP) for construction. The project is scheduled for completion within five years, with operations expected to begin by 2029.
To prevent further delays, the SRT has prioritised construction at U-Tapao airport’s overlapping sections with the Sino-Thai high-speed rail project. Construction was initially planned to begin in 2021.
One of the key contract amendments was the change of the payment method for the public investment cost (PIC). Instead of paying the private partner 149.65 billion baht in instalments for 10 years after operations begin, the government will make progress-based payments, capped at 120 billion baht.
The private partner, Asia Era One, must provide additional guarantees totalling 152.16 billion baht.
In addition, the company will pay the 10.67-billion-baht investment fee for the Airport Rail Link (ARL) project in seven equal annual instalments, with the first instalment paid on the contract amendment signing date.
Another amendment is the revenue sharing adjustment. If project loan interest rates decrease significantly and Asia Era One’s internal rate of return exceeds 5.52%, the SRT will have the right to claim additional revenue sharing.
The investment promotion certificate from the Board of Investment requirement will be waived.
Source: https://www.bangkokpost.com/thailand/general/2990257/srt-okays-contract-change-for-airport-link-project
