PUBLISHED: 22 Oct 2024 at 18: 50
Suriya Jungrungreangkit, the secretary of transportation, has defended the president’s changes to the agreement for the high-speed road project connecting three airports, saying they are necessary to advance the project and ensure justice for both the concessionaire and the government.
Adjustments are necessary according to both parties failing to honour the initial deal, Mr Suriya, even a deputy prime minister, said on Tuesday.
He claimed that the concessionaire was unable to start building as planned during the Covid-19 epidemic because the government did not give the concessionaire the land for construction in a timely manner.
The Eastern Economic Corridor ( EEC ) Policy Committee has approved the revisions, but the minister claims that they were n’t actually presented to the cabinet for approval on Tuesday.
The State Railway of Thailand ( SRT ) and Asia Era One, a division of Thai conglomerate Charoen Pokphand ( CP ) Group, signed the original contract in 2019. The shared investment plan included a agreement agreement to run the Airport Rail Link.
The high-speed road program, a flagship initiative of the EEC, aims to reference Don Mueang, Suvarnabhumi and U-Tapao flights.
Mr Suriya was responding to complaints made by the major opposition People’s Party during next week’s representation, which claimed that these commitment revisions favour the concessionaire, potentially compromising the president’s place.
According to him, the case is awaiting the release of the revised deal, which has already been reviewed by the trial to ensure justice for both parties.
Finance Minister Pichai Chunhavajira, who chairs the EEC commission, responded to the charges at a House meeting next month.
Since the drafting of the 2019 deal, he acknowledged that the government’s land expropriation process has taken longer than anticipated. This pause, coupled with the financial effects of Covid-19 and political issues affecting inflation and interest rates, hindered the concessionaire’s ability to secure financing for the site’s application.
According to Mr. Pichai, Mr. Pichai explained that this approach may reduce the total expense to around 120 billion baht, given recent interest rates, and that the concessionaire should pay the agreed 149-billion-baht expense in in instalments rather than a lump sum after construction.
The total 149 billion ringgit could rise substantially if paid afterward, he said.
A bank guarantee equivalent to the promised investment may be required to assure the contractor fulfills its duty, he added, and each installment will be paid only after the contracted company has finished its job.