BANGKOK, THAILAND – Thailand’s state railway reported new momentum on the long-delayed high-speed rail link connecting three major airports as work continued on revising the core public-private partnership contract.
Board briefed after six-year standstill
Acting State Railway of Thailand (SRT) governor Anan Phonimdang said the railway’s board had formally acknowledged the latest progress on amending the public-private partnership contract for the 220-kilometre line. The high-speed connection between Don Mueang, Suvarnabhumi and U-Tapao, valued at 224.5 billion baht, was described as one of the key infrastructure projects for developing the Eastern Economic Corridor (EEC).
Talks with concessionaire and EEC bodies
According to Anan, the SRT held several rounds of discussions with the Eastern Economic Corridor Office (EECO) and Asia Era One, the project’s concessionaire led by the CP Group. All parties broadly agreed to shift the state payment structure to a “build-and-pay” model, under which government payments would be made during the construction phase instead of only after operations began.
Legal review and a 160-billion-baht sticking point
The Office of the Attorney General (OAG) reviewed the revised draft contract and, according to the SRT, issued 18 comments, most of which had already been incorporated. A central unresolved dispute concerned a demand that the private partner provide an additional 160 billion baht in construction guarantees for civil works and systems over the planned five-year building period.
Dispute over guarantee clause wording
Anan said the OAG proposed a clause under which this extra guarantee would be drawable in all circumstances, while the private partner insisted it should only be called if the contract was breached or the construction schedule was not met. The company argued that a stricter formulation could deter financial institutions from extending credit and would overlap with existing guarantees worth 4.5 billion baht.
Informal talks pave way for final legal check
Informal conversations with the OAG indicated growing understanding of the concessionaire’s concerns, Anan said, adding that the SRT would now submit its preferred wording of the guarantee clause for a final legal examination. After legal issues were settled, the amendments were to be forwarded in sequence to the EECO, the broader EEC committee and then the Cabinet, with government consideration expected around June or July before construction was likely to begin in August.
Public debate over future of mega-project
Public commentary around the project highlighted its scale and long delay, noting that 224 billion baht and six years of standstill were now pressing the authorities to move faster. Observers questioned whether the three-airport line would become the catalyst for an EEC boom or face renewed paralysis over contract disputes and financing, and whether Thailand was on the verge of a new rail era or merely advancing a political prestige scheme.