Investment details on Thai-Chinese railway project will be ready by March 15, SRT
Play
THE TRANSPORT Ministry is expected to consider the conclusions on the Thai-Chinese medium-speed-railway project, including its new cost and investment model, by March 15, according to the State Railway of Thailand (SRT).
Meanwhile, Korn Chatikavanij, deputy leader of the Democrat Party, yesterday showed up at a seminar in Saraburi on the project and urged the government to be cautious over the source of funds to finance the railway scheme.
Speaking at the fifth market-testing seminar aimed at informing local people about the benefits of the railway scheme, SRT deputy governor Voravuth Mala said there were still differences between the Thai and Chinese governments on the project.
However, the two parties, which have been working closely for months, have enough details now to submit to their respective government ministers. He said their conclusions on the revised project value and investment model should come out early this month before being submitted to the Transport and Finance ministries.
“The investment model is still a joint venture in the form of a special purpose vehicle, but [the investment proportion] will depend on the government’s decision,” Voravuth said.
Therefore, the details on construction designs will be worked out later.
The Sino-Thai railway project will be 873 kilometres in length, running between Bangkok and Nong Khai via Kaeng Khoi in Saraburi province and Nakhon Ratchasima, and between Kaeng Khoi and Map Ta Phut in Rayong.
Worth the cost?
The 1.435-metre-gauge rail line will carry trains at speeds of up to 180km/h.
The project cost is now estimated at around Bt530 billion, higher than the Bt400 billion expected originally.
Korn asked at the seminar, which was attended by more than 300 people, whether the project was worth the cost.
He suggested the government could consider which was better, a BOT (build-operate-transfer) or SPV (special purpose vehicle) model.
Voravuth said after the seminar that a BOT model could be unlikely. Otherwise, Thailand might be offered a trade-off for ownership rights on land development or some other perk.
At the seminar, many expressed concerns over a lack of well-managed city planning if the rail line passed through Saraburi’s landmark area in conjunction with Phaholyothin Road, dividing the city into four parts. This could worsen traffic congestion.
They proposed that the government institute a 7km elevated portion to allow the railway to pass over Saraburi city and develop the land under the overpass for commercial use.
