SRT unveils timeline for 3-airport high-speed rail, seeks new Cabinet approval

Anan Phonimdang, Deputy Governor of the State Railway of Thailand and Acting Governor of the State Railway of Thailand (SRT), revealed after the SRT board meeting on Wednesday (February 18) that the board acknowledged the progress of the High-Speed Rail Linking Three Airports Project (Don Mueang, Suvarnabhumi, U-Tapao).

Currently, the SRT has submitted a report proposing an amendment to the project's principles to the Eastern Economic Corridor Office of Thailand (EECO).

This is in preparation to present it to the Cabinet for consideration to amend the joint investment principles, in accordance with the prior resolution made by the Eastern Economic Corridor Policy Committee (EECPC).

The key elements of the principle amendment include:

• The method of paying the Public Investment Cost (PIC): Previously, once the private sector commenced the high-speed rail operation, the state would pay in instalments totalling THB149.65 billion. This is adjusted to instalment payments based on work progress inspected and accepted by the SRT, with a limit not exceeding THB120 billion.
• The schedule for paying the joint investment rights fee for the Airport Rail Link (ARL) project: The private sector will divide the rights fee payment of THB10.67109 billion into 7 equal annual instalments, with the first instalment to be paid on the date of signing the amended contract.

"The matter of amending the principles is considered finalised on the SRT's part. We have discussed this with the private sector, concluded, and submitted it to the EECO. After this, the EECO will propose it to the Cabinet to amend the principles, which are the original principles already considered by the EECPC. This involves adjusting the method to a 'pay-as-you-build' approach and the instalment payments for the Airport Rail Link rights fee."

Anan also stated that while waiting for the consideration of the contract principle amendment, the SRT will discuss with the Office of the Attorney General to prepare the final draft contract before preparing to sign the amended contract with the private contracting party, Asia Era One Co., Ltd., which has the Charoen Pokphand Group (CP) as its major shareholder.

The SRT has assessed the preliminary operational framework and expects to propose the draft contract to the Cabinet for consideration this June, before signing the contract in July 2026 and issuing the Notice to Proceed (NTP) within 30 days, or in August 2026.

Taking 5 years for construction and another 6 months for system testing, it is estimated that the service can commence in 2032.

Regarding the preparation of the final draft contract, the Office of the Attorney General previously raised concerns about setting the project guarantee at THB4.5 billion and the civil works guarantee for the state's co-investment portion, where the EECPC required the private sector to place an additional guarantee of approximately THB160 billion in exchange for the 'pay-as-you-build' condition.

The Office of the Attorney General suggested combining both guarantees.

However, the private sector insisted on separating the guarantee amounts and discussed this with the SRT until a conclusion was reached to separate the said amounts, as they are guarantees for different scopes of work.

Furthermore, the civil works guarantee for the state's co-investment portion is an additional condition imposed, requiring the private sector to place an extra guarantee.

This guarantee can only be reclaimed when the project construction is completed as scheduled within 5 years, plus 6 months for system installation and testing.

Therefore, it is not related to the project guarantee, which can be utilised in general cases of potential contract breaches.

The SRT believes it can clarify all these reasons and discuss them with the Office of the Attorney General until a conclusion is reached to start preparing the final draft contract.

Consequently, the negotiation with Asia Era One Co., Ltd. has now concluded that on the contract signing date, the private sector must place a total guarantee for this project of over THB175 billion, divided into:

• Project guarantee: THB4.5 billion
• Guarantee for the state's co-investment cost: THB160 billion

Civil works: THB120 billion

System works: THB40 billion

• Joint investment rights fee payment for the Airport Rail Link (ARL) project: THB10.67109 billion