SRT unveils details of high-speed railways contract

By THE NATION

 

 

State Railway of Thailand (SRT)’s acting governor Worawut Mala revealed on Wednesday (Nov 6) the preliminary details of the high-speed railway project linking three international airports: Don Mueang Airport in Bangkok, Suvarnabhumi in Samut Prakan and U-tapao in Rayong.

 

“After the project bid winner CP consortium signed the contract with SRT on October 24, the Eastern Economic Corridor Policy Committee ordered that SRT must unveil contract details to the public in a simple form within 30 days to ensure the transparency of this public-private partnership,” he said.

 

According to Worawut, the contract dictates that the operation and maintenance of high-speed trains will be carried out by the CP consortium and its partners provided that CP maintains at least a 51-per-cent share in the partnership. The CP consortium is also entitled to undertake the development of areas around the railway for a period of 50 years starting from when the railway service becomes operational. The profits generated from train operation and land development will be shared among SRT, CP consortium and their partners.

 

As for the train fare, the contract states that the fare for the high-speed train from the first station to the terminal will not exceed Bt490. Any fare adjustment must be in accordance with the consumer price index announced by Ministry of Commerce and must be agreed upon by both parties.

 

Furthermore, the contract also allows SRT to raise the fare of the airport rail link after the CP consortium finishes the construction of extended section that will connect to the high-speed railway from maximum of Bt45 to Bt97 from the airport rail link’s first station to the terminal.

 

Worawut also added that in the contract addendum, the CP consortium is required to complete the design and construction of high-speed railway and airport rail link extended section within 5 years from the signing date. Should CP is unable to finish on time, they must pay a fine of Bt9 million per day to SRT for the high-speed railway, and Bt2.25 million per day for the airport rail link extended section.

 

“Furthermore, CP is not allowed to transfer the rights and responsibilities under this contract to any third person, either partly or wholly, unless written consent from SRT is obtained,” Worawut added.

 

Related Story: CP to gradually reduce its shareholding in airport railway project to raise further funds

 

-- © Copyright The Nation Thailand 2019-11-07

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Probably not worth the paper its written on...

Better hurry up, tomorrows Crash-mas day.

10 minutes ago, RotBenz8888 said:

Better hurry up, tomorrows Crash-mas day.

Ah. The project that started as Hopewell, became Hopeful and ended up as Hopeless.

If you paint the tops alternate black and white it seems it is the bar code for a Sorros bank account.

Okay I am confused.  If I take the BTS to DMK and get on the high speed train to go to pattaya I have to buy a new ticket.

 

This should be interesting this will mean that they now have 3 different systems which is going to confuse a lot of Thais.

 

It makes sense sort of but then again who is responsible for the maintenance of the terminal at DMK that was built by the BTS group and is going to be used by the SRT group.

 

They are going to have a lot of fun with this.  I would hope that they start with just the link between the airports DMK AND SWAMPY.  

Still don't get it.  It just looks like the junta wants to integrate their airport with Bangkok airports.  Unless it is set up to move freight around too, can't get too excited about it.

5 hours ago, webfact said:

The CP consortium is also entitled to undertake the development of areas around the railway for a period of 50 years starting from when the railway service becomes operational.

That may explain why the CP Group partnership was willing to undercut the next lowest bid by Bt1 billion to win contract award. 

As several China state-owned enterprises are part of the CP Group partnership, exclusive commercial development rights along the rail route gives China tremendous earning potential. 

Thats some sizable penalty clauses.

 

USD$400,000 per day or USD$12million per month.

 

Yikes, CP better know what they are doing - every day counts...

17 hours ago, webfact said:

The CP consortium is also entitled to undertake the development of areas around the railway for a period of 50 years starting from when the railway service becomes operational. The profits generated from train operation and land development will be shared among SRT, CP consortium and their partners.

Unreal this section-this is worth billions of dollars alone-never seen such a statement and theft of land tin further enrich the rich and corrupt-also sending Thai people’s land money to China 

19 hours ago, webfact said:

SRT must unveil contract details to the public in a simple form within 30 days to ensure the transparency of this public-private partnership,”

If history is anything to go by "transparency" is a dirty and meaningless word to the SRT. 

In 2017 PM Prayut used Article 44 to sack the Governor and the entire Board of the SRT for what was described as "lack of transparency" which is also a loose term to imply corruption.

The Minister said at the time "....we want the (new) board and the SRT governor to supervise projects more closely and ensure there are no irregularities,” 

Does anyone really believe the SRT has reformed itself?

I doubt it is in the nature of the beast to do so; old greed habits die hard.

 

On 11/7/2019 at 10:38 AM, webfact said:

Any fare adjustment must be in accordance with the consumer price index announced by Ministry of Commerce

That's a good protection for the Thai ridership.

But

On 11/7/2019 at 10:38 AM, webfact said:

must be agreed upon by both parties.

it's negotiable!

What isn't negotiable is a price increase by SRT that isn't necessarily linked to the CPI.

On 11/7/2019 at 10:38 AM, webfact said:

the contract also allows SRT to raise the fare of the airport rail link after the CP consortium finishes the construction of extended section that will connect to the high-speed railway from maximum of Bt45 to Bt97 from the airport rail link’s first station to the terminal.

To say the least this contract is a mess for the Thai taxpayer.