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BBS to sign Bt290bn contract for U-Tapao megaproject on Friday

Jun 19. 2020
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By The Nation

The government will on Friday (June 19) sign a contract worth Bt290 billion with U-Tapao International Aviation Company for the development of U-Tapao Airport and Eastern Aviation City.

The move comes after the Cabinet endorsed the results of bidding for the project, won on June 2 by BBS Joint Venture Group. BBS has established the U-Tapao International Aviation Company Co Ltd to carry out the development.

The airport development scheme is one of five mega-projects in the government’s flagship Eastern Economic Corridor infrastructure plan.

The EEC Office (EECO) will sign the joint investment agreement in a ceremony overseen by Prime Minister Prayut Chan-o-cha at Government House.

U-Tapao International Aviation Company Co Ltd has registered capital of Bt4.5 billion and is a joint venture between Bangkok Airways, which holds 45 per cent of the shares, BTS Group Holdings Limited (35 per cent) and Sino-Thai Engineering and Construction Plc (STEC) 20 per cent. Narita International Airport Corporation has been contracted to manage U-Tapao Airport.

After signing the contract, U-Tapao International Aviation Company Co Ltd must prepare a master plan of investment in the project within 60 days, then begin construction. U-Tapao International Aviation Company Co Ltd will invest in all four phases. The first phase for construction will take three years, with operations due to start in the fourth year.

Phase 1 will see construction of a third passenger terminal at U-Tapao airport with annual capacity of 15 million passengers, exceeding the 12 million specified in the contract’s terms of reference. It includes a Bt40-million rail connection system to be managed by Narita Airport Corp. Phase 2 will develop the APM electric train system to link the project as yearly passenger capacity grows to 30 million. Phase 3 will expand capacity to 45 million passengers, with a capacity of 60 million reached in phase 4.

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