Funding Dispute Delays Thailand Airports Rail Project

And the Rama II project proceeds at a snails pace, along with the BKK-Korat speed train. Same applies to the lack of progress with Hua Hin airport.

The elite and those in power. Moving Thailand forever backwards.

That is very unfortunate.

It might be the right thing to do; Slow down a bit and pay attention to the debt levels.

6 minutes ago, spidermike007 said:

And the Rama II project proceeds at a snails pace, along with the BKK-Korat speed train. Same applies to the lack of progress with Hua Hin airport.

The elite and those in power. Moving Thailand forever backwards.

If you drive out of Bangkok city centre and north along Vibhavadi Rangsit Road toward DMK, on the left you'll see the remnants of the last airport connector project, complete with half finished concrete stations and concrete pylons with some track. The 3 billion dollar Hopewell project (European company) ran into disagreements, scandals and lawsuits with the partners and Thai government, and was scrapped in 1998. The new airport connector project has no main foreign contractors (they - the foreign companies - have learned their lessons about Thailand). The main financiers appear to be the Government and CP Group. China Railway is in it for less than 5%. Yet, still, there are disagreements among the Thai partners.

11 minutes ago, ronnie50 said:

The 3 billion dollar Hopewell project (European company) ran into disagreements, scandals and lawsuits with the partners and Thai government, and was scrapped in 1998

Good summary but you must include the financial crash of 97/98 and not that Hopewell was Gordon Wu and a Hong Kong owned company.

On 6/7/2026 at 4:22 AM, Georgealbert said:

Thailand’s 224.5-billion-baht high-speed railway linking Don Mueang, Suvarnabhumi and U-Tapao airports remains stalled as disagreements over financing and risk-sharing continue between the government and private concessionaire Asia Era One. Despite the Office of the Attorney General (OAG) clearing a draft contract amendment, key policy differences remain unresolved, delaying one of the flagship projects within the Eastern Economic Corridor (EEC).

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Approved in March 2018 under the administration of Gen Prayut Chan-o-cha, the 220-kilometre rail line is designed to connect three airports through nine stations across Bangkok, Samut Prakan, Chachoengsao, Chon Buri and Rayong. The project combines the existing Airport Rail Link with new high-speed rail infrastructure and is intended to improve transport links between airports, industrial estates and tourism destinations while supporting the expansion of U-Tapao Airport and the Eastern Aviation City.

The public-private partnership (PPP) is being developed by the State Railway of Thailand (SRT) and Asia Era One, a consortium led by CP Group. The consortium secured the concession in 2019 after requesting 117.2 billion baht in government investment support. Major shareholders include Charoen Pokphand Holding (87.15%), Bangkok Expressway and Metro Plc (5.14%), China Railway Construction Corporation (5.14%) and Italian-Thai Development (2.57%).

Progress has been hampered by land handovers, investment promotion approvals, design coordination issues, disputes over land use, integration with the Thai-Chinese high-speed rail project, adjustments to the U-Tapao Aviation City plan, the Covid-19 pandemic, rising costs and tighter financing conditions. As a result, the formal Notice to Proceed was never fully activated and full-scale civil construction has yet to begin.

Asia Era One argues that the pandemic fundamentally changed the assumptions underpinning the original agreement and has proposed revisions to improve the project’s financial viability. The consortium’s most significant proposal is a shift from the original payment structure to a “build-and-pay” model, under which government contributions would be paid progressively as construction milestones are completed. In return, the consortium would provide additional guarantees worth around 160 billion baht and commit to completing construction within five years of an amended agreement taking effect.

Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn has opposed the proposal, stating that financing risk should remain with the private sector under the original 2019 PPP framework. The government has also expressed concern that changing the payment structure could increase state financial exposure and encourage similar requests from other private operators facing economic difficulties.

The OAG reviewed the proposed amendments, raising 18 observations before approving the draft. It required the 160-billion-baht guarantees to be provided within 270 days of signing, with portions released progressively as milestones are achieved. While the review removed a significant legal hurdle, it did not resolve the dispute over payment terms.

The Bangkokpost reported that the project’s future now depends on whether the government and Asia Era One can reach a compromise. Any revised agreement would require cabinet approval. If negotiations fail, Asia Era One may need to secure alternative financing under the existing contract, while further delays could affect related EEC developments and potentially expose the state to compensation claims, according to the State Audit Office.

Picture courtesy of Bangkokpost

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Adapted by ASEAN Now Bangkokpost 7 June 2026

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8 years for planning??

Reminds me of EU

I have many thoughts on this. Here are just a few.

1. It took what, about 20 years from the initial plan, through multiple governments and multiple contract revisions for the BTS to finally open. This is starting to smell the same. Every successive government will make changes and each change will involve more tea money.

2. “The public-private partnership (PPP) is being developed by the State Railway of Thailand (SRT) and Asia Era One, a consortium led by CP Group. The consortium secured the concession in 2019 after requesting 117.2 billion baht in government investment support. Major shareholders include Charoen Pokphand Holding (87.15%), Bangkok Expressway and Metro Plc (5.14%), China Railway Construction Corporation (5.14%) and Italian-Thai Development (2.57%).”

   Well, that’s a winning cast of characters.

3. Having seen the quality of some public transportation projects that utilized Thai contractors, I don’t believe that this will end up being a high speed train. One example, the new M6 motorway. The roadbed is uneven. Every bridge is not level with the road. Driving on it you notice every single bump. It’s a piece of poop that’s already falling apart before it’s even officially open. Or, the Airport Rail Link. Modeled on the Hong Kong system it is “Same same but different”.

4. Integration with the Thai-Chinese high-speed rail project? That will probably involve ever more turf wars, more contract renegotiations, more delays. Change governments, change ministers, redraft.

Good luck Thailand. I hope at least one of those projects comes to fruition.

It’s the never ending story. If it happens in my lifetime , or at all, I’d be surprised. Great ideas they have, but they fail in n the execution.

Good. It needs to be stalled until a quality builder is found - not a Thailand builder nor a Chinese builder - and the government’s concern for safety is raised from unimportant to the utmost highest level/concern. So in other words never.

2 hours ago, Front Row said:

Or, the Airport Rail Link.

Precisely. When it opened it had a non-stop Airport Express (red) and a Commuter Line (blue). The Express could get you to and from the airport in 20 minutes. The Commuter Line also went to the airport as its last/first stop but would fill with people going to work. Not much room for suitcases. Then they canceled the Express entirely, but still advertise the line as the 'Airport Rail Link'. So anyone in China or other countries sees it advertised as a rail link (an airport train), without realizing they will be squished like sardines a few stops after boarding. It's false advertising - or at least a real stretch of the words Airport Rail Link. Then all these tourists arrive with their families and suitcases and commuters at Phyathai BTS and try to sqeeze into already packed skytrains.

If this grander airport connector ever gets built you can expect it will not be as good or fast as they imply.

As for general corruption and kickbacks, a former Thai colleague of mine had a friend who worked for a housing developer in Bangkok. That guy told my former colleague that on one multi-million baht project, by the time all the money was siphoned off by the various pooyai and hiso actors, he was left with just 10% of the original quote to do the job - impossible of course. So that's how these projects can and do quickly fall apart.

There are many issues that all seem to be around a few things.

1. people that live between DMK and Sook are ot interested inthis systemas it will cost them maybe force people to move.

2. CP seems, as always, to want their cake, and they want someone else to buy it for them.

3. Thai politics being what it is, each government wants to "make it better"; they want to prove they are better, that the last government screwed it up, and that they're the only saviours.

4. There is absolutely no planning for an incremental system.

5. The areas that were once unused now have subdivisions, so the people tht just bought the houses are ot interested in moving.

The simple solution is to go to the agreed plan of paying as they build, BUT start at the Suk Airport and go to Pattaya

That is the part of the plan that will make people the most money. Consider a Thai who wants to go to the beach in Pattaya: they can take the BTS to Ekamai, then take a bus, or take the BTS to Phyia Thai and take the train.

Where the government screwed up was not having a link from DMK to one of the stops on the Khu Kot to Phyia Thai line.

Airport rail?

What happened to the Singapore to Kunming high speed train line

That's what's important in the long run to boost the local economy

Already happened in Laos around the train stations

Wake up people

10 minutes ago, SiSePuede419 said:

Already happened in Laos around the train stations

Originally though, it was supposed to also be used for moving produce (of Lao fruit/vegetable farmers) to and from markets at the main destinations. There were supposed to be many stops in rural areas and either dedicated trains to move the goods or carriages on the passenger trains designed for that. Never happened as far as I'm aware. It was probably a lie from the get-go as its real purpose was part of China's political Belt and Road initiative.

5 minutes ago, ronnie50 said:

There were supposed to be many stops in rural areas

Nope.

Not on a high speed rail line. You'd have to slow down too many times.

You're thinking of a "milk run" train that leaves at 1am and stops at every little stop along the way.

Doubt that was the original plan.

Also, freight trains and high speed passenger trains are incompatible on the same tracks.

The math doesn't work.

I think whoever told you that is misinterpreting the original plan.

It's better than what Laos had before

90% of roads in Laos are dirt.

How are people in landlocked Laos (no sea port) supposed to compete for world trade with that setup?

China helped Laos.

Siam did not (look up the brutal treatment, tattoos and depopulation that happened during a rebellion there against Siamese rule of Laos)

Don't understand why you're complaining.

8 minutes ago, SiSePuede419 said:

Nope.

Doubt that was the original plan.

Also, freight trains and high speed passenger trains are incompatible on the same tracks.

The math doesn't work.

Don't understand why you're complaining.

Yes moving agriculture on that line was indeed part of the plan... some reports say it's happening but not at the pace originally planned

Vientiane Times

A bumper harvest for Lao farmers: freshness wins
The Laos-China Railway has acted as a powerful, tireless engine for agriculture, delivering a major victory against Laos’ long-standing logistics challenges.
The high-speed connection ensures that highly perishable goods, particularly tropical fruits like bananas, watermelons, and mangoes, arrive in vast Chinese cities like Kunming and Guangzhou while still burstingly fresh, dramatically increasing their market value and reducing waste.
https://www.vientianetimes.org.la/freefreenews/freecontent_233_Lao_China_y25.php

More:

China Daily

"When the China-Laos railway is launched on Dec 3, we will send all the goods to Kunming from Vientiane and transit to our special economic zone,"

https://global.chinadaily.com.cn/a/202112/02/WS61a8e75ea310cdd39bc7902b.html

Nation:

Daovone said Laos has huge potential for investment in agriculture, especially cattle farming for export to China.

But although the railway offers opportunities for Laos to grow its economy, the government needs to do more to improve the investment climate and streamline the processing of paperwork associated with investment approval.

https://www.nationthailand.com/world/asean/40022677

Xinhua: Thailand eyes more agricultural exports shipped to China via China-Laos Railway

https://english.news.cn/20220405/03ad7ae8347e41f995af439326d5f32b/c.html

On 6/7/2026 at 4:22 AM, Georgealbert said:

high-speed railway linking Don Mueang, Suvarnabhumi and U-Tapao airports remains stalled

So, like the HST project Bangkok to Korat and then the extension to Nong Khai and Vientianne, How many light years away??

Which is more of a joke? Thailand's high speed rail or California's?

No better evidence for the fact that politicians suck worldwide.

Good example of why Thailand is losing ground with other Asian countries, especially Vietnam. Every project proposed either eventually vanishes after a slow death by multiple committees and/or public opinion or, if approved, moves at a pace that, in a case like this, seems to be going in reverse, not forward.

I think if this project had great merit there would be much stronger support for it from the stakeholders and it would have moved along much faster. Instead, everyone involved seems to be having second thoughts and looking for ways to get out of it, or somehow come up with more riders for it.

21 hours ago, LALes said:

Which is more of a joke? Thailand's high speed rail or California's?

No better evidence for the fact that politicians suck worldwide.

HS2 in the UK, hands down.