The State Railway of Thailand (SRT) revealed that the Attorney General has approved the draft amendment for the "High-Speed Rail Connecting 3 Airports" contract. The draft awaits response from the private sector before being presented to the Eastern Economic Corridor Policy Committee (EECPC) on 5 June. Meanwhile, Transport Minister Phiphat continues to firmly oppose the build-then-pay payment condition.
Mr. Anan Phonnimdaeng, Deputy Governor and Acting Governor of the State Railway of Thailand (SRT). He disclosed progress on the high-speed rail project connecting the three airports (Don Mueang, Suvarnabhumi, and U-Tapao) that the Office of the Attorney General has recently reviewed and returned the new draft contract to the SRT. Previously, there were 18 points of concern which the SRT has fully addressed in its responses.
In particular, regarding the review of the Cabinet resolution, which is a key condition the government set for the private partner to consider. There have been joint discussions between the government and the private sector, namely Asia Era One Co., Ltd. (CP Group), to inform them of the conditions and principles for amending the Cabinet resolution, so the private sector is aware and can reconsider. Currently, the SRT is awaiting an official response from the private side to report these views to the EECPC meeting before submitting to the Cabinet following procedure.
Regarding the Attorney General’s concerns about the contract amendment on joint investment, there was a key issue about project guarantees. Previously, the Attorney General suggested combining both the contract guarantee and additional guarantees. The SRT clarified that these two guarantees have been separated from the start in accordance with the EECPC resolution to allow flexibility in project management. After this explanation, the Attorney General acknowledged and raised no objections.
"Currently, the review process of the new draft contract has received approval from the Attorney General without any objections. Next, the report will be compiled for the EECPC, which will consider it, while awaiting the private partner’s response after reviewing the details," he said.
A reporter from the Eastern Economic Corridor Policy Committee (EECPC) office reported that the Ministry of Transport disagrees with the contract amendment for the high-speed rail project linking the three airports, especially regarding changing the investment model to build-then-pay. This is a key condition because it directly affects the private sector’s ability to access funding. The amendment is a proposal the private sector wants to use to seek loan approval from financial institutions.
However, following joint discussions between the government and private sector on 8 May, the private sector understands the government’s policy and must return to negotiate with financial institutions to explore alternative ways to manage financial risk so lenders will approve loans. Once a clear conclusion is reached, they will return to discuss with the SRT again to find a new solution aligned with government policy for this project’s progress.
A reporter from the Ministry of Transport reported that Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, remains firm in not supporting amendments to the joint investment contract for the high-speed rail linking the three airports, especially the condition to change payment terms to build-then-pay. After the Attorney General’s response approving the draft amendment, it is believed that the SRT will bring this information for further discussion at the EECPC meeting on 5 June.
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