Opposition within the coalition government has delayed modifications to a contract for the long-awaited high-speed rail line connecting Suvarnabhumi, Don Mueang, and U-Tapao airports, according to a source familiar with the Eastern Economic Corridor (EEC) Policy Committee, which has tentatively agreed to the changes without providing further details.
The governing Pheu Thai Party is currently in discussions with its coalition partners. The revisions were intended to be approved during the weekly cabinet meeting on Tuesday.
Transport Minister Suriya Jungrungreangkit expressed confidence that the matter would be resolved soon, stating that the updated contract would be presented to the cabinet within a week or two.
Once the cabinet approves the revisions, the EEC Policy Committee will begin negotiations with the concessionaire. The outcomes of these negotiations will be submitted to the cabinet for approval before undergoing review by the Office of the Attorney-General, after which the new contract could be signed.
The original contract was established in 2019 between the State Railway of Thailand (SRT) and Asia Era One, a consortium led by the Charoen Pokphand (CP) Group. This included a concession agreement for the operation of the Airport Rail Link (ARL) as part of the joint investment initiative.
However, during the Covid-19 pandemic, a decrease in passenger numbers on the ARL led Asia Era One to request compensation. The cabinet approved contract revisions in 2021.
Minister Suriya has dismissed criticism from opposition parties suggesting that the contract changes favor the private sector partners.
This high-speed rail system, a key project under the EEC initiative, aims to connect the three major airports: Don Mueang, Suvarnabhumi, and U-Tapao.
During the cabinet meeting on Tuesday, Mr. Suriya warned that further delays in approving the revisions could hinder the line’s opening and adversely affect the related U-Tapao airport development project, potentially leading the development operator to take legal action against the ministry.
On October 11, the EEC Policy Committee reached a tentative agreement on the proposed changes to the project’s original contract in five key areas.
Efforts are also ongoing to resolve land issues concerning the U-Tapao Airport and the Eastern Aviation City project. Construction of the rail line is anticipated to take five years, with an expected opening in 2029—five years later than originally planned.
