New conditions are reached between the state and the engineers.
PUBLISHED: 25 May 2024 at 09: 26
After the position and project developers came to a consensus on a modified project, the high-speed rail project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports is scheduled to be operational after this year.
Anan Phonimdang, deputy governor of the State Railway of Thailand ( SRT), said the agreement has since been acknowledged by the SRT’s board.
The issue will be forwarded to the cabinet and the Eastern Economic Corridor ( EEC ) Policy Committee for review, he said, adding that the Notice to Proceed (NTP ) is anticipated to be released in the late summer of this year.
Asia Era One, a CP Group- led partnership, won the buying to create the rail system worth 224.5 billion baht in 2018, but the project, which is among the big infrastructure development projects in the EEC, hit a snag according to several factors, including the fallout from the pandemic.
The SRT and the EEC Office have negotiated with the company about altering certain provisions of the contract to ensure the project is finished.
” The answer is evident and based on principles. The business must provide further bank guarantees as proof that the project will be finished, according to Mr. Anan.
According to the SRT lieutenant governor, the deal revision involves four issues: payment of the therefore- called combined venture right, the government’s investment in the project, an extra bank guarantee, and investment promotion privileges.
Under the proposed update, Asia Era One Company will compensate the joint walk right in full plus interest, totalling 11.7 billion baht. The payment will be made in seven repayments.
Instead of starting the carriages right away after they are operational, the condition will commence funding the bridge project 18 weeks after the NTP is issued. Within 270 days of the deal revision, the company may be required to submit an extra 111.9 billion baht bank guarantee for this.
The state has committed to investing approximately 111.9 billion baht under the initial contract, which will allow the development of the road system through a public-private partnership approach. It will give 3.57 billion ringgit for land acquisition and will begin paying the remaining 108.33 baht in the fifth time or after carriages begin operating.
But, Asia Era One has requested payment from the government for the company’s ongoing design work.
The company may first receive an investment campaign document from the Board of Investment before the NTP can become issued. However, the assessment process ended on May 22, so the state has agreed to remove this condition, Mr Anan said.
If the NTP is issued as planned, structure is anticipated to be finished in 2029, according to Mr. Anan.