Coalition Opposition Stalls High-Speed Rail Project Contract Revision

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Photos Courtesy: Bangkok Post

A planned revision to Thailand’s high-speed rail contract connecting Suvarnabhumi, Don Mueang, and U-Tapao airports has been delayed due to opposition within the coalition government. According to a source from the Eastern Economic Corridor (EEC) Policy Committee, which initially agreed in principle to the revision, coalition discussions led by the governing Pheu Thai Party remain ongoing, and the revision was expected to be approved at the cabinet’s weekly meeting on Tuesday.

Transport Minister Suriya Jungrungreangkit expressed optimism that the revised contract would be submitted to the cabinet within the next two weeks, pending coalition agreements. Once approved, the EEC Policy Committee plans to negotiate with Asia Era One, the concession holder led by the Charoen Pokphand (CP) Group, on the contract updates. These negotiations will be submitted to the cabinet and reviewed by the Office of the Attorney-General before the new contract is signed.

The high-speed rail project, initially contracted in 2019, integrates the Airport Rail Link as part of a joint investment plan with the State Railway of Thailand (SRT). However, pandemic-related reductions in Airport Rail Link ridership led Asia Era One to request compensation, prompting cabinet approval for a contract revision in 2021. Minister Suriya dismissed recent criticism alleging that the revisions benefit private sector partners, emphasizing that the rail system is integral to the EEC’s infrastructure goals.

During Tuesday’s cabinet meeting, Suriya cautioned that further delays could affect both the rail project and a related U-Tapao airport expansion. Should this occur, Suriya noted, parties involved in the U-Tapao development may seek legal action against the ministry. The EEC Policy Committee has so far agreed to revise five areas of the contract and continues to address land issues associated with the U-Tapao Airport and Eastern Aviation City project. The high-speed rail, projected for completion in 2029, is anticipated to launch five years later than originally scheduled.

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