Mutual benefits key to high-speed rail contract amendment
The Eastern Economic Corridor Policy Committee (EECP) has approved a series of principles to amend the contract for the high-speed rail project connecting Don Mueang, Suvarnabhumi, and U Tapao airports.
The decision, announced during a meeting chaired by Deputy Prime Minister Pichai Chunhavajira, aims to ensure that both the government and the private sector benefit from the project.
The key principles outlined by the EECP include:
- Public Investment Cost (PIC) adjustments: The government will distribute a portion of the PIC in instalments based on the project’s progress. The private sector must also provide additional collateral to guarantee the project’s completion within five years.
- Airport Rail Link (ARL) royalties: The private sector will pay royalties to the government in instalments.
- Additional revenue sharing: If the private sector's return on investment exceeds a certain threshold, the government may require additional revenue sharing.
- Notice to Proceed (NTP) exemption: The parties will prepare a memorandum of agreement to exempt certain NTP conditions, allowing the government to issue the NTP immediately.
- Force majeure and exemption clauses: The contract clauses related to force majeure and exemption will be updated to align with other public-private partnership projects.
The EECP will present these principles to the Cabinet for consideration and approval. Following this, the parties will negotiate the draft amendment contract and submit it to the relevant authorities for review before the Cabinet's final approval.
The high-speed rail project, signed in 2019 between the State Railway of Thailand (SRT) and Asiaera One Co., Ltd., has faced challenges due to the Covid-19 pandemic. The amendment to the contract aims to address these challenges and ensure the project's successful completion.
