The State Railway of Thailand (SRT) has announced that the high-speed rail (HSR) project connecting Don Mueang, Suvarnabhumi, and U-Tapao airports will commence operations by the end of 2024. This follows a revised agreement between the state and the project developers.
The Eastern Economic Corridor (EEC) Policy Committee and the Cabinet will review the agreement to ensure state benefits. The Notice to Proceed (NTP) is expected to be issued by the end of the year.
Asia Era One, a consortium led by CP Group, secured the THB224.5 billion contract in 2018. However, the project faced delays due to various issues, including the pandemic.
The revised contract includes four main areas: joint venture right payment, government investment in the project, an additional bank guarantee, and investment promotion privileges. Asia Era One will pay the joint venture (JV) right in full plus interest, totalling THB11.7 billion, in seven instalments. The state’s investment will start 18 months after the NTP is issued. The company must submit an additional bank guarantee of 111.9 billion baht within 270 days of the contract revision. If the NTP is issued as planned, construction is expected to be completed by 2029.
