Thailand’s High-Speed Rail Project Faces Fresh Delays After Political Shift
Thailand’s three-airport high-speed rail project has hit yet another delay following the House dissolution, which pushed the government into caretaker status and blocked further action on key contractual amendments.
The ambitious project, designed to link Don Mueang, Suvarnabhumi, and U-Tapao airports, has stalled as the current Cabinet cannot approve long-term projects. This disruption arises after the House of Representatives was dissolved on 12 December, placing the Cabinet in caretaker status and preventing approval of several transport projects, including contract changes needed for the high-speed rail.
The State Railway of Thailand’s (SRT) plan to amend the public-private partnership (PPP) contract for the project requires Cabinet approval, which is now on hold due to the political shift. Key proposed changes include restructuring payments related to the Airport Rail Link (ARL) and shifting to a “build-and-pay-as-you-go” model. These changes must align with legal standards, including comprehensive civil works guarantees as advised by the Attorney-General.
The SRT board has endorsed the amendments, but they await review by the Eastern Economic Corridor Office (EECO). The project’s advancement depends on forming a new government able to consider these long-term legal commitments. The initial contract, signed on 24 October 2019 with the SRT and Asia Era One Co., Ltd., where CP Group is a key player, now hangs in the balance.
Delays have plagued the project amid changing administrations and renegotiations, including compensation for pandemic-induced losses approved in October 2021 during former Prime Minister Prayut Chan-o-cha’s tenure. Despite successive administrations, the draft amendments remain unapproved, keeping the project stagnant for over six years, reported The Nation.
Key Takeaways:
- The three-airport high-speed rail project faces further delays due to caretaker government limitations.
- Proposed contract amendments involve key structural and financial changes awaiting Cabinet approval.
- Completion of the project now hinges on future government action to give the final go-ahead.
Adapted by ASEAN Now from The Nation 2025-12-15
Source: https://aseannow.com/topic/1381746-high-speed-rail-project-faces-fresh-delays-after-political-shift/
