Thailand to finalise revised EEC high-speed rail contract by next month

[webfact]

 

Government officials anticipate finalising the revised contract for the Eastern Economic Corridor (EEC) high-speed rail system by next month, paving the way for the project’s next phase.

 

The high-speed rail system, a cornerstone project for the EEC, aims to connect Don Mueang, Suvarnabhumi, and U-Tapao airports, improving connectivity and boosting regional economic development.

 

The State Railway of Thailand (SRT) and Asia Era One, a consortium led by the Charoen Pokphand Group, originally signed the contract in 2019, which included a concession agreement for operating the Airport Rail Link (ARL).

 

During the Covid-19 pandemic, Asia Era One sought compensation due to a significant decline in ARL passenger numbers. The Cabinet approved a contract revision in 2021 to address this issue.

 

EEC Secretary-General Chula Sukmanop mentioned this week that the contract adjustments will focus on the financial collateral required from the consortium and the government’s expedited payment for construction work. He expects the revised agreement will be submitted to the EEC Policy Committee by mid-September.

 

Once approved, the details will be reviewed by the Office of the Attorney-General before being sent to the Cabinet for final approval. The EEC aims to sign the contract with the consortium before the end of the year.

 

A source from the SRT revealed that the consortium has agreed to pay the 10.6-billion-baht concession fee in seven instalments starting this year. Financial constraints caused by the pandemic, the global economy, and high interest rates have necessitated a condition for the government to expedite a 119-billion-baht payment before the 18th instalment following the issuance of a Notice to Proceed, rather than after construction is completed.

 

To mitigate risks and ensure ongoing construction, the consortium has agreed to provide bank guarantees amounting to approximately 100 billion baht. These funds will be gradually returned upon project completion.

 

Additionally, the new contract eliminates the need for investment promotion certificates, allowing the SRT to issue the Notice to Proceed and enable the consortium to access construction sites more efficiently.

 

The private partner must provide the financial guarantee within 270 days of signing the amended contract.

 

Efforts are also underway to resolve land issues associated with the U-Tapao Airport and Eastern Aviation City project.

 

Construction is expected to take five years, with the project now anticipated to open in 2029, five years behind the original schedule.

 

Picture courtesy: MGR online

 

-- 2024-08-08

 

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[JoePai]

So this will be the revised, revised, revised version of the original contract from 5 years ago ?

 

 

[sandyf]

10 minutes ago, JoePai said:

So this will be the revised, revised, revised version of the original contract from 5 years ago ?

 

 

"Financial constraints caused by the pandemic, the global economy, and high interest rates have necessitated a condition for the government to expedite a 119-billion-baht payment before the 18th instalment following the issuance of a Notice to Proceed, rather than after construction is completed."

 

The UK abandoned part of their HSR project.

I would think that everyone has had to revise their plans in some way over the last 5 years.

Which planet have you been on?

[ChrisY1]

CPF maybe the likely choice.....?

[JoePai]

8 minutes ago, sandyf said:

"Financial constraints caused by the pandemic, the global economy, and high interest rates have necessitated a condition for the government to expedite a 119-billion-baht payment before the 18th instalment following the issuance of a Notice to Proceed, rather than after construction is completed."

 

The UK abandoned part of their HSR project.

I would think that everyone has had to revise their plans in some way over the last 5 years.

Which planet have you been on?

The contract was signed in 2019 which happened before those happenings - wake up !

[sandyf]

4 minutes ago, JoePai said:

The contract was signed in 2019 which happened before those happenings - wake up !

You need to do your homework, the contract was never complete as the CP subsidiary didn't get the agreement it wanted from the BOI.

The poject will never start without a revision of some sort.

The EEC is trying to get the SRT to agree to issue the Notice to Proceed without the BOI support. Nothing in stone yet.

 

[hotchilli]

2 hours ago, JoePai said:

So this will be the revised, revised, revised version of the original contract from 5 years ago ?

 

 

Negotiations are tricky things.

[spidermike007]

Thailand is in the Stone Age, when it comes to railway travel, with a 70-year-old system that  desperately needs to be modernized. Whatever it takes. I advocate even if they need to borrow the money from China it's no big deal, since China's is one trillion dollars out of pocket with the Belt and  Road initiative, and most countries are defaulting on it.

 

Thailand might as well default too, that way they get a free railroad. They desperately need high-speed rail for both passengers and cargo, in order to move into the modern age. They don't seem capable of building it on their own, they're moving far too slowly, and they might as well ask for assistance. The work that China has done on their own high-speed rail is absolutely astonishing. 

 

 

[Peterphuket]

6 hours ago, JoePai said:

So this will be the revised, revised, revised version of the original contract from 5 years ago ?

 

 

Wait for maybe one time more.

[Peterphuket]

53 minutes ago, spidermike007 said:

Thailand is in the Stone Age, when it comes to railway travel, with a 70-year-old system that  desperately needs to be modernized. Whatever it takes. I advocate even if they need to borrow the money from China it's no big deal, since China's is one trillion dollars out of pocket with the Belt and  Road initiative, and most countries are defaulting on it.

 

Thailand might as well default too, that way they get a free railroad. They desperately need high-speed rail for both passengers and cargo, in order to move into the modern age. They don't seem capable of building it on their own, they're moving far too slowly, and they might as well ask for assistance. The work that China has done on their own high-speed rail is absolutely astonishing. 

 

 

Better they ask Japan for help, many times better than China with its dirty government.

[Middle Aged Grouch]

Any chance for having it completed by the year 2150 ?

 

Any chance to have direct connections from Suvarnabhum airport,  to Hua Hin, Phuket, Pattaya etc ?

[newnative]

Glacial.