Thailand’s Three-airport rail contract under review again
Six years behind schedule, project likely be passed on to next government to carry out
The latest revision to the 225-billion-baht project proposes a “pay-as-you-build” fund disbursement model, but the Office of the Attorney-General has raised concerns that it could undermine fiscal discipline, Mr Phiphat said.
While the EEC committee supports the pay-as-you-build model for civil works worth 120 billion baht, the OAG insists the private partner must still provide two guarantees of equivalent value to the state’s full investment commitment.
The EEC committee will review all the recommendations on the table and consider amendments to the joint investment contract to ensure compliance.
Once the committee reaches a consensus, he said, the matter will go to the cabinet for a final decision.
The government aims to establish a clear operational framework before handing the project to the next administration, said Mr Phiphat.
The EEC committee has been tasked with compiling data and solutions to remove obstacles so that construction can proceed.
To boost investor confidence and accelerate development around the U-Tapao Aviation City, Mr Phiphat also plans to propose a public-private partnership for a large-scale sports complex covering more than 1,500 rai.
The original contract signed with Asia Era One included a concession to operate the Airport Rail Link (ARL) in Bangkok.
During the Covid-19 pandemic, however, declining passenger numbers on the ARL prompted Asia Era One to request compensation. The cabinet approved a revised contract in 2021.
Even after the pandemic, little progress was made, due in large part to delays in expropriating and transferring land for 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/thailand/general/3144385/threeairport-rail-contract-under-review-again
