Bt200 bn fast train plan backed
A Bt200 billion high-speed train project has won backing from the Eastern Economic Corridor (EEC) Policy Committee, with agreement in principle for one of the big ticket infrastructure projects that are being fast-tracked in the flagship economic zone. International bidding for the project is due to start next month.
Kobsak Pootrakul, Minister to the Office of Prime Minister, said that with the EEC Policy Committee’s endorsement, the rail project - connecting the country’s three main international airports: Don Mueang, Suvarnabhumi and U-Tapao - will be forwarded to the Cabinet for approval. Private enterprises would be invited to participate in the international bidding in March, Kobsak said.
If the project is cleared by the Cabinet, bidders would be required to submit both technical and price proposals under a public-private partnership (PPP). The major contract signing could come in the third quarter of this year and agreements with private enterprises are also expected to be made this year.
Such a schedule would ensure that contracts for all five big EEC infrastructure projects – along with an upgrading of U-Tapao airport, the construction of an aviation maintenance, repair and overhaul centre, and the expansion of the Laem Chabang and Map Taphut ports – would will be signed with private enterprises before the country’s next general election is held.
Deputy Prime Minister Somkid Jatusripitak said the government would soon invite representatives from overseas enterprises to view progress on the ambitious EEC plans.
Kanit Sangsubhan, secretary-general to the EEC, said that the rail project would start with the first phase of investment on the section from Bangkok to U-Tapao airport. The line would cover 220 kilometres with a budget of about Bt200 billion. The next phase would involve a study on the route Rayong to Trat, to advance Thailand's border trade with Cambodia.
The Bangkok-U-Tapao airport section is expected to provide an internal rate of return (IRR) at about 17 per cent. The whole project's IRR is estimated at Bt700 billion. The IRR is forecast at Bt400 billion for the first 50 years of the project's operations. The remaining estimate of Bt300 billion is for after the 50-year PPP contract concludes.
“Somkid observed that the estimated IRR may be too low as we have never had a mega-project like this before,” Kanit said.
The high-speed train is planned to run at 250 kilometre per hour and will take about 45 minutes from Bangkok to U-Tapao airport, while opening up areas for development from Bangkok to Chachoengsao, Chon Buri and Rayong. Five train stations - in Chachoengsao, Chon Buri, Sriracha, Pattaya and U-Tapao airport - are planned.
The high-speed train project comprises three sections totalling 220 kilometres: a 21-kilometre Airport Rail Link extension from Don Mueang to Phayathai; a 29-kilometre Airport Rail Link from Phayathai to Suvarnabhumi International Airport; and a 170-kilometre line linking the Suvarnabhumi and U-Tapao airports.
Areas for the development have been defined at Makkasan station's 150-rai site for the main high-speed train station, with facilities such as car parking, for connection with the mass rapid transit (MRT) system, and a 100-rai plot at Sriracha station for car and a maintenance centre.
Both plots are planned for commercial development and developers are required to pay to lease the land from the State Railway of Thailand (SRT) at market prices, with revenue sharing for the government.
The company offering the highest return to the government would win and this allow the government to reap the highest benefit and spend the lowest budget.
In the same EEC Policy Committee Meeting, the Airport Rail Link project was also included in the high-speed train project.
Private bidders must propose a figure to acquire Airport Rail LInk's entire business, including its debts. Airport Rail Link suffered a loss of Bt280 million in 2017, with debts of about Bt33 billion from construction.
The bid winner is required to manage the Airport Rail Link project and shoulder some of the debts with the Ministry of Finance.
The terms of reference, being drafted by SRT, are close to being finalised and will be proposed to the Cabinet meeting in March.
The initial fares are planned at about Bt270 per ride from Makkasan to Pattaya and Bt330 from Makkasan to U-Tapao airport.
Industry Minister Uttama Savanayana said that the meeting also agreed to have the EEC Office study the plan to expand the EEC in the areas bordering the three EEC provinces, such as in Samut Prakan, Chanthaburi, Trat and Sa Kaeo. The study is likely to be completed within three months.
