Thai Govt Holds Firm on Three-Airport Rail Deal

Thailand’s new government has reaffirmed it will not amend the concession agreement for the long-delayed high-speed rail project linking Don Mueang, Suvarnabhumi and U-tapao airports, signalling that the private developer may withdraw if it cannot proceed under existing terms. Transport Minister Phiphat Ratchakitprakarn said the state would adhere strictly to the original contract to protect fiscal discipline and national interests. The stance effectively gives the CP-led consortium a legal pathway to exit the project without penalty if conditions make continuation unviable.

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The 225-billion-baht project was awarded in 2019 to Asia Era One, led by Charoen Pokphand Group, but construction has yet to begin and the scheme is already six years behind schedule. A key dispute centres on the consortium’s request to revise the state subsidy payment structure, proposing phased payments based on construction progress rather than the agreed model. Under the original terms, the government would begin repayments over 10 years only after full completion within five years.

Mr Phiphat said Ministry of Finance regulations allow a contractor to cancel a state agreement without being deemed to have abandoned the project if external factors, such as oil price impacts, make it impossible to proceed, provided construction has not started. The consortium has not issued a formal response to the government’s position. Meanwhile, officials are exploring complementary large-scale developments in the Eastern Economic Corridor, including a proposed world-class theme park and sports complex, to improve the project’s commercial viability.

Acting State Railway of Thailand governor Anan Phonimdaeng warned that cancelling the contract would significantly delay the project further. He said a new bidding process could take two to three years, followed by around six years of construction, potentially adding eight to 10 years to the timeline. He also noted that reopening talks with the second-ranked bidder is not feasible, as bid guarantees and price validity periods have expired.

The original concession also included operation of the Airport Rail Link, which saw reduced passenger numbers during the Covid-19 pandemic, prompting Asia Era One to seek compensation. A contract revision was approved in 2021 under the government of Prime Minister Prayut Chan-o-cha, but progress has remained slow, partly due to delays in land expropriation and transfer.

The Bangkokpost reported that the State Railway of Thailand and the EEC policy committee are scheduled to meet the consortium this month to determine the project’s future. If the agreement is terminated, authorities will need to restart the procurement process from the beginning.

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Adapted by ASEAN Now Bangkokpost 1 May 2026