State and CP-led partnership constructing high-speed lines to connect three airports closer to agreement
PUBLISHED: 7 Aug 2024 at 20: 53
Authorities anticipate that discussions over the Eastern Economic Corridor ( EEC ) high-speed rail system will be finished by the end of the month.
The high-speed road system, a premier job of the EEC, did website Don Mueang, Suvarnabhumi and U-tapao flights.
The State Railway of Thailand ( SRT ) and Asia Era One, a consortium led by the Charoen Pokphand Group, signed the original contract in 2019. The joint investment plan included a concession agreement to run the Airport Rail Link ( ARL ).
During the Covid-19 crisis, however, declining customer figures on the ARL prompted Asia Era One to demand payment. In 2021, the government approved the contract’s correction.
This week, EEC Secretary-General Chula Sukmanop announced some modifications to the agreement, especially those relating to the consortium’s financial security and a request for government funding to be made more quickly.
The contract will be sent to the EEC Policy Committee by mid-September, he said.
After assent, the information will be reviewed by the Office of the Attorney-General before being submitted to the government.
Before the end of the year, the EEC anticipates signing the agreement with the collaboration.
The consortium agreed to pay the concession cost in seven installments starting this year, according to an SRT source.
A problem has been put in place for the authorities to speed a settlement of 119 billion baht before the 18th payment after the release of a Notice to Proceed, as opposed to after construction is finished, due to the financial constraints brought on by the pandemic, the world economy, and high interest rates.
To reduce risks and keep structure going, the partnership has agreed to offer 100 billion baht of bank guarantees. When the project is finished, the cash will be slowly returned.
In contrast, the new agreement removes the requirement for funding advertising certificates. The partnership has access to the construction sites, and the SRT has the right to challenge the Notice of Proposed.
Within 270 days of the secret partner signing the modified contract, the secret partner will provide the economic guarantee.
The U-Tapao Airport and Eastern Aviation City job is also working to resolve land problems. Building may take five years to complete, with an expected starting in 2029, five years behind schedule.