Some coalition partners reportedly object to revisions in contract with CP-led consortium
PUBLISHED : 30 Oct 2024 at 18:24
Opposition from within the coalition government has stalled revisions to a contract to build the long-delayed high-speed rail line inking Suvarnabhumi, Don Mueang and U-tapao airports, according to a source.
The source on the Eastern Economic Corridor (EEC) Policy Committee, which has agreed in principle on the revision, did not elaborate.
The governing Pheu Thai Party is now in talks with its coalition partners. The revision was supposed to have been approved at the weekly cabinet meeting on Tuesday.
Transport Minister Suriya Jungrungreangkit said he believed the issue would be resolved and that the revised contract would be submitted to the cabinet in a week or two.
After the cabinet approves the revision, the EEC Policy Committee will begin negotiations with the concession holder. The committee would submit the outcome of the negotiations to the cabinet for approval, followed by a review by the Office of the Attorney-General, after which the new contract could be signed.
The original contract was signed in 2019 between the State Railway of Thailand (SRT) and Asia Era One, a consortium led by the Charoen Pokphand (CP) Group. A concession agreement to operate the Airport Rail Link (ARL) was part of the joint investment plan.
During the Covid-19 pandemic, however, declining passenger numbers on the ARL prompted Asia Era One to request compensation. The cabinet approved the revision of the contract in 2021.
Mr Suriya has rejected opposition criticism that the contract revisions favour the private sector partners.
The high-speed rail system, a flagship project under the EEC, would link Don Mueang, Suvarnabhumi and U-Tapao, the country’s three main airports.
At Tuesday’s cabinet meeting, Mr Suriya said a further delay in approving the revision could disrupt the plan to open the line and also affect a related U-Tapao airport development project. As such, the party carrying out the airport development might sue the ministry.
On Oct 11, the EEC Policy Committee agreed in principle on the proposed revision of the project’s original contract in five areas.
Efforts are also continuing to resolve land issues in the U-Tapao Airport and Eastern Aviation City project. Construction of the rail line is expected to take five years to complete, with an opening in 2029, five years behind schedule.