Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport (MoT), stated that next week, MoT will invite the contractor for the High-Speed Rail Linking Three Airports project (Don Mueang–Suvarnabhumi–U-Tapao), namely Asia Era One Company Limited (a joint venture between Charoen Pokphand Holding Company Limited and its partners), for a meeting to seek a resolution as the project has not yet commenced and has been delayed for six years. The aim is to identify obstacles preventing the project’s commencement to collectively find solutions in line with the contract agreements.
MoT will proceed by examining all matters under its jurisdiction and swiftly acting on what can be addressed. Any issues beyond its authority, or those concerning other agencies, will be forwarded to the relevant agencies for further action. To assure the private concessionaire, the Ministry confirms there are no plans to terminate the contract with Asia Era One, contrary to recent rumors. All parties have been instructed to operate within the contractual framework, with every step following the recommendations of the Office of the Attorney General.
On October 1, during Mr. Phiphat’s first meeting to deliver policies to agencies under the MoT, he stated that he would promptly coordinate with the Policy Committee of the Eastern Economic Corridor (EEC) and invite Asia Era One for discussions on resolving the investment issues of the high-speed rail project. He also affirmed that amendment of the contract terms is unacceptable, as it could be risky and possibly illegal, opening up the possibility for legal action.
Specifically, regarding the payment method for the public-private partnership (PPP). Originally, the government was to pay after the private sector started rail operations, with evenly divided annual payments over 10 years totaling THB 149.65 billion. The revised approach would pay installments based on construction progress verified by the State Railway of Thailand (SRT), not exceeding THB 120 billion. However, there is a condition for Asia Era One to provide additional guarantees totaling THB 152.16 billion, ensuring construction and rail operations occur within five years, with property rights gradually transferring to SRT as payments are made.
Mr. Phiphat stated that this project has already been delayed for six years, and he confirmed that MoT will not accept a pay-as-you-go contract adjustment. This idea was previously proposed to the Cabinet but did not proceed due to several risk points. If the private sector agrees to return to the original contract conditions, the ministry has no issue, but it also needs to see if the state can deliver the land to the private partner as stipulated. The Deputy Minister cannot give a prompt reply whether this development would open a way to contract cancellation, but he affirmed that a clear solution should be found within four months.
Mr. Phiphat added that if the high-speed rail project linking the three airports cannot proceed, there are alternative rail systems to support transport. Currently, there is already a double-track railway from Bangkok to Laem Chabang, and if needed, it could be upgraded or extended to U-Tapao Airport.
News reports from SRT indicated that Mr. Veerit Amrapal, Governor of SRT, has already submitted his resignation, which will be considered by the SRT board at the end of October and is expected to take effect immediately. His resignation is thought to stem from issues with the high-speed rail project. If negotiations fail and the contract is cancelled, the resulting loss of opportunities might require compensation. As the signatory to the contract, the SRT Governor would share responsibility. Mr. Veerit has served as SRT Governor since September 19, 2024.
