SRT, CP Group discuss amending contract for delayed airport rail link
Both parties consider swapping BOI privileges with EEC ones so much-delayed rail project linking 3 airports can kick off
The State Railway of Thailand (SRT) is reportedly in discussions with a Charoen Pokphand (CP) Group-led consortium about amending contract requirements that would allow the much-delayed 276.5-billion rail project linking three airports to start.
The contract specifies that the contractor – CP Group subsidiary Asia Era One – must first receive a certificate of investment privileges from the Board of Investment (BOI) before it can start constructions. However, deadline for the certificate was today (May 22).
Since there is still no sign of a BOI certificate, an SRT source said that both parties are exploring the possibility of amending the contract by replacing the BOI privilege requirement with other similar privileges.
This will allow SRT to issue a notice to Asia Era One to proceed with the construction of the rail project linking Bangkok’s Don Muang and Suvarnabhumi airports with U-Tapao airport in Rayong.
The source indicated that BOI privileges could be replaced with those from the Eastern Economic Corridor Office (EECO), given that the project is related to the development of EEC areas that cover the three eastern provinces of Rayong, Chonburi and Chachoengsao.
EECO secretary-general Chula Sukmanop confirmed that switching from BOI privileges to EEC privileges is feasible within the contract framework, but requires mutual agreement from SRT, Asia Era Once and EECO.
The EECO will need to review the contract, as well as the construction and development plan to see how it can provide investment privileges, he added.
“If the contract amendment negotiations conclude successfully, construction could begin within this year,” Chula said.
The SRT source added that amending the contract with Asia Era One would also benefit the Thai-Chinese high-speed railway’s Bangkok-Nakhon Ratchasima section. Parts of this section, from Bang Sue to Don Mueang, overlap with the airport rail link project and are Asia Era One’s responsibility. The delay in the airport rail project has obstructed the construction of the 9-billion-baht link.
The Bangkok-Nakhon Ratchasima section is expected to start running from 2028.
