EEC seeks legal opinion on amending high-speed railway contract
Attempt to revive stalled project with CP Group company on connecting three airports
The Eastern Economic Corridor Policy Committee Office is seeking legal clarity from the Council of State to amend the high-speed rail contract with a CP Group subsidiary
The high-speed rail project connecting three airports (Don Mueang, Suvarnabhumi, U-Tapao), a key infrastructure in the Eastern Economic Corridor (EEC), was signed on October 24, 2019, between the State Railway of Thailand (SRT) and Asia Era One Co Ltd, a CP Group subsidiary.
In 2020, the Covid-19 pandemic led Asia Era One to request government relief due to reduced Airport Rail Link passengers, affecting projected ridership for the high-speed rail. On October 19, 2021, the Cabinet approved relief measures, initiating ongoing negotiations to amend the investment contract.
In October 2024, the EEC Policy Committee approved five contract amendments. The EEC Office is now preparing to present these to the Cabinet. Initially planned for 2024, the submission was delayed pending legal review by the Council of State.
SRT governor Weerit Amrapal said on Wednesday (December 25) that the Eastern Economic Corridor Office (EECO) plans to submit the proposed amendments to the joint investment contract for Cabinet consideration by January 2025, as negotiated with the private contractor.
“The tripartite working group, consisting of representatives from SRT, EECO, and the private sector, has reached a consensus on amending the contract and proceeding with the project. Discussions regarding terminating the contract and re-tendering have not occurred. However, if it becomes government policy, SRT is ready to execute the project independently,” Weerit said.
He added that if the Cabinet decides against amending the contract, leading to a re-tender with separate contracts—where the government handles civil works and the private sector manages operations, as with other railway projects—SRT would not object. However, the government would need to arrange funding for the civil works.
Chula Sukmanop, secretary-general of the EEC Policy Committee, clarified that the possibility of cancelling the contract and re-tendering is merely a contingency plan if the contract amendments cannot proceed.
The adjustment to the work plan has delayed the overall timeline by one month. Initially, it was expected that the proposal to amend the contract would be submitted to the Cabinet in December 2024, allowing the private sector to commence construction in the first quarter of 2025.
Chula also said that the cancellation of the contract with the CP Group would only occur if the private sector failed to sign the contract or initiate construction. In such a scenario, the government, through the SRT as the project owner, would have to proceed independently.
If the Cabinet approves the project, a budget of 120 billion baht for construction is already prepared. If the private sector does not proceed, this budget can be used by the government to undertake the construction. Further studies would then determine whether a Public-Private Partnership model would be used for operations and, if so, in what form.
