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). Get today's headlines by email 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 Join the discussion? Already a member? Adapted by ASEAN Now Bangkokpost 7 June 2026
View full article
Create an account or sign in to comment